EPA issues final rule on HFCs

The U.S. Environmental Protection Agency (EPA) recently announced a final rule establishing a new program to better manage, recycle, and reuse HFCs under the AIM Act. This is the third component of the AIM Act, which requires EPA to reduce HFC production and use by 85% by 2036.

The first part of the Act involved the creation of a framework for the phased reduction and allocation of HFC allowances for import and production. The second part provided for the transition to alternatives and lower greenhouse gas products and equipment through sectoral restrictions under subsection (i) of the AIM Act, entitled “Technology Transitions”. The third part focuses on the “Management of Regulated Substances”, which falls under subsection (h) of the AIM Act.

This first subpart (h) final rule establishes the Emissions Reduction and Reclamation (ER&R) program for the management of certain HFCs and their substitutes, including certain provisions that apply to both new and existing equipment. The ER&R program includes requirements and compliance periods for repairing leaking equipment (see Table 1 below); installing and using automatic leak detection systems on large refrigeration systems (see Table 2 below); using reclaimed HFCs to service certain existing equipment (see Table 3 below); and removing HFCs from single-use cylinders prior to disposal (see Table 4 below). According to EPA, these provisions generally do not require consumers to stop using or maintaining their existing equipment.

The regulations also establish a standard that limits the amount of virgin or untreated HFCs that may be contained in reclaimed HFC refrigerants. In addition, under the Resource Conservation and Recovery Act (RCRA), EPA establishes alternative standards for flammable spent refrigerants that are recycled for reuse (see Table 5 below).

It is important to note that the final rule does not address technician training, although EPA is seeking input on approaches to establishing technician training and/or certification requirements. The rule also does not include provisions for tracking HFC containers that may be used in the maintenance, repair, and/or installation of refrigerant-containing equipment. In addition, the rule does not include final provisions requiring that initial installation of refrigerant-containing equipment in certain subsectors of the refrigeration and air conditioning/heat pump sector be done with reclaimed refrigerant when HFCs or a HFC-containing blend are used. EPA intends to further review these provisions and the comments submitted on the proposed requirements before deciding how to proceed.

EPA estimates that, in addition to the benefits from previous HFC actions, this rule will result in a further cumulative greenhouse gas emission reduction of approximately 120 million metric tons of carbon dioxide equivalent between 2026 and 2050, representing an additional net benefit of at least $6.9 billion.

“From AHRI’s perspective, this final rule, which is an important part of the ongoing transition from HFCs to next-generation refrigerants, is the first but important step in refrigerant management policy for the HFC transition,” said Stephen Yurek, AHRI President and CEO.