The HVACR industry has been waiting with bated breath for the Environmental Protection Agency (EPA) to release its final rule regarding the ongoing transition to low-GWP refrigerants in new refrigeration, heating, and cooling systems. The Agency intends to do this through subsection (i) of the AIM Act, entitled “Technology Transitions,” which provides EPA with the authority to restrict the use of regulated HFCs in sectors or subsectors where they are used.

On October 6, EPA released this final rule, along with a proposed rule to better manage and reuse existing HFCs. Under subsection (h), “Management of Regulated Substances,” of the AIM Act, EPA said this would be accomplished by reducing refrigerant leaks from equipment and supporting a growing American industry for HFC recycling and reclamation.

Technology Transitions

Most already know that under the AIM Act, EPA is reducing the production and usage of HFCs by 85% by 2036, with most of the phasedown occurring within the next six years. To achieve this goal, the final rule restricts the use of higher-GWP HFCs in new refrigeration, air conditioning, and heat pump (RACHP) products and equipment.

In most subsectors, EPA has set a maximum GWP limit on HFCs or HFC blends that can be used. In a few subsectors, EPA has listed the specific HFCs or HFC blends that are restricted. According to EPA, the rule operates by:

• prohibiting the manufacture and import of products that use higher-GWP HFCs;
• prohibiting the sale, distribution, and export of those products three years after the manufacture and import restriction; and
• prohibiting the installation of new RACHP systems that use higher-GWP HFCs.

Compliance dates and GWP limits vary based on the sector and subsector (see tables below). For stationary air conditioning and heat pumps, the final rule calls for a 700 GWP limit for most new comfort cooling equipment, including chillers, starting January 1, 2025. VRF systems would have until January 1, 2026 to comply with the restrictions. The rule also mandates a 150 or 300 GWP limit for most new commercial refrigeration systems used in supermarkets and convenience stores, with various compliances dates depending on the size of the equipment.

As far as the sell-through period is concerned, the final rule restricts the sale, distribution, import, and export of certain products containing higher-GWP HFCs three years after the manufacture and import restriction dates. For example, self-contained, stationary, residential and light commercial air conditioners and heat pumps, including packaged units, rooftops, PTACs, etc., must be manufactured and/or imported before January 1, 2025, but they may be sold for three years after that date. 

For now, there is no three-year sell-through period for complete new split system installations — when the indoor and outdoor units are installed at the same time — and these must be installed by January 1, 2025. The sales restriction does not apply to components (e.g., compressors, coils) that are used to repair legacy RACHP systems, which can be continued to be sold indefinitely.

It is important to note that this rule does not restrict the continued use of any existing products or RACHP systems, as EPA states that allowing existing systems to continue to operate to the end of their useful life is important to ensuring a smooth transition in the phasedown of HFCs. To that end, a product or system may be serviced and repaired throughout its useful life, which includes replacing components as needed. Components needed to repair existing RACHP equipment may continue to be manufactured, imported, sold, distributed, or exported.

Stephen Yurek, president and CEO of the Air-Conditioning, Heating & Refrigeration Institute (AHRI), praised the final rule, noting that “the technology transitions provisions of the AIM Act are critical to ensuring an orderly transition from higher-GWP refrigerants to lower-GWP refrigerants while creating American jobs and protecting the environment. AHRI has appreciated the opportunity to participate in this rulemaking and looks forward to continuing to work constructively with the EPA to assist American manufacturers in developing and deploying economical, efficient, and affordable new refrigerant technologies.”

Managing Existing HFCs

The goal of subsection (h) of the AIM Act is to manage emissions reduction and reclamation of HFCs and their substitutes in order to help minimize HFC leaks across the lifespan of existing equipment, such as air conditioners and refrigeration systems, while also maximizing the reuse of existing HFCs.

Specifically, under this proposed rule (see Tables 1-7), EPA is looking to require:

• The repair of leaks in refrigerant-containing appliances with a charge size of 15 pounds or more of a refrigerant that contains an HFC or substitute for an HFC with a GWP greater than 53;
• The use of automatic leak detection (ALD) systems for certain refrigeration equipment containing 1,500 pounds or more of a refrigerant containing an HFC or a substitute for an HFC with a GWP above 53 for both new and existing appliances;
• Use of reclaimed refrigerant to fill new equipment and servicing or repairing existing equipment in certain RACHP subsectors;
• That used single-use (“disposable”) cylinders that contain HFCs that have been used for the servicing, repair, or installation of certain refrigerant-containing equipment or fire suppression equipment be transported to an EPA-certified reclaimer or fire suppressant recycler, who would be required to remove the remaining HFCs, including the heel, prior to the disposal of these cylinders; and
• Labeling and tracking for disposable and refillable containers of HFCs that could be used for the servicing, repair, and/or installation of refrigerant-containing equipment or fire suppression equipment.

EPA will accept comments on this proposal for 60 days after publication in the Federal Register and will hold a virtual public hearing on or about 15 days after publication in the Federal Register. For more information on the rule and how to comment, as well as information on the virtual public hearing, visit the Protecting Our Climate by Reducing Use of HFCs website.