On January 24, Congressman Neal Dunn (Florida-02) introduced a resolution under the Congressional Review Act (CRA), directing Congress to nullify a recent Environmental Protection Agency (EPA) rule relating to the management of HFC refrigerants used in refrigeration systems across the country.
HFCs are essential for most refrigeration systems, and according to Dunn, EPA’s new HFC rule would “require grocery stores, restaurants, and any business operating a refrigeration system to replace their existing units with new systems that may be prohibitively expensive for small businesses.” EPA’s rule would, among other things, require repairing leaks on certain refrigeration units, as well as the installation and use of automatic leak detection (ALD) systems on large refrigeration systems.
“The EPA clearly did not consider the undue burden they would place on American businesses when they finalized their sweeping refrigeration regulation,” said Dunn. “American grocers and restaurants do not need government regulators in their kitchens and storerooms, driving up operating costs and forcing them to pass that cost on to the consumer. The Congressional Review Act is designed to address egregious over-regulation such as this, and I look forward to stopping bureaucratic red tape from further raising food prices for American families.”
The Congressional Review Act allows Congress 60 legislative days (not continuous days) to review and potentially overturn a federal regulation. EPA’s final rule -- Management of Certain HFCs and Substitutes under the AIM Act of 2020 – was published in the Federal Register on October 11, 2024.
"The new refrigeration regulations are just more examples of Washington bureaucrats overstepping their bounds," said Kevin McDaniel, an owner/operator of a Piggly Wiggly supermarket in Sneads, Florida. "Complying with these financially burdensome refrigeration regulations will only hurt independent supermarkets like mine and drive up prices for our customers."
The National Grocers Association (NGA), a trade association for independent supermarket retailers and wholesaler distributors, announced its strong support for Congressman Dunn’s resolution to overturn the EPA refrigerant management rule. In a press release, NGA noted that the rule imposes a series of costly and complex compliance requirements that threaten the viability of independent grocers, particularly smaller businesses with limited resources.
“The EPA’s new refrigeration regulations place an undue financial and operational burden on independent grocers who are already grappling with historic increases in labor, utility, and credit card swipe fee costs. In an industry that sees an average net margin of 1.4%, any additional expenses can be detrimental,” said Chris Jones, chief government relations officer for NGA. “This rulemaking could lead to higher grocery prices for consumers and, in extreme cases, force community grocers to shut their doors. Congressman Dunn’s resolution provides a critical opportunity to protect Main Street businesses and their customers from these onerous mandates.”