HVAC Industry Responds To EPA’s HFC Management Rule

On October 6, 2023, EPA released a proposed rule to manage the existing stock of HFC refrigerants and their substitutes. This rulemaking is the third component of the AIM Act, which mandates that EPA reduce the production and usage of HFCs by 85% by 2036.

The first component of the Act involved creating a framework for the phasedown and allocation of HFC allowances for imports and production. The second component mandated the transition to lower-GWP alternatives and products and equipment through sector-based restrictions under subsection (i) of the AIM Act, entitled “Technology Transitions.”

This proposed rulemaking focuses on the third objective, “Management of Regulated Substances,” which falls under subsection (h) of the AIM Act. Under this proposed rule, EPA outlines how it plans to bolster the supply of refrigerants in the U.S. by, among other things, supporting HFC recycling and reclamation in the U.S.; mandating leak repair provisions for certain appliances; creating a reclamation standard; and requiring the use of reclaimed HFCs for certain types of equipment in some refrigeration, air conditioning, and heat pump (RACHP) subsectors (see sidebar).

The Agency accepted feedback on the rule until December 18, 2023, and during that comment period, many in the HVACR industry expressed reservations regarding certain aspects of the proposed rule. Some of their concerns are outlined below.

Reclaim

In their comments to the proposed rule, many HVACR stakeholders expressed concern over EPA’s reclaim mandates. These include requiring the use of reclaimed HFCs by January 1, 2028 for servicing existing equipment, as well as initially charging systems in certain RACHP sectors. Some commenters believe this could wreak havoc on the industry.

“The HFC allowance system all but guarantees a shortage of HFC refrigerants from here on out,” wrote Carl Grolle, president of Golden Refrigerant. “Requiring any certain sector to have to use reclaimed refrigerant as an initial charge will disrupt the normal flow of refrigerant through the service sector and create unneeded tension between different entities. The additional turmoil will not promote better industry practices, will not help create cooperative partnerships, and instead will pit manufacturers, chemical producers, and distributors against each other for the limited supply of reclaimed refrigerant.”

In joint comments from AHRI and the Alliance for Responsible Atmospheric Policy, the groups noted that “AHRI and the Alliance do not believe current data on reclaimed refrigerants supports EPA requiring 100% of initial charge and 100% of servicing in certain sectors to be reclaimed refrigerant. To the contrary, AHRI and the Alliance believe such mandates are unrealistic, contradicted by available data, and unlikely to be practical, achievable, or enforceable due to inadequate supply of reclaimed gas.”

To that end, AHRI and the Alliance suggested that EPA develop an alternative to the proposed rule’s requirements for reclaimed refrigerant that would align more effectively with realistic assumptions, while optimizing reclamation during the HFC phasedown. Among other issues, this would include:

• Basing reclaim mandates on relevant data to ensure achievability and practicality;
• Phasing in on a gradual basis any reclaim mandates;
• Not requiring initial charge as part of a mandate to use reclaimed refrigerant; and
• Conducting annual reviews of any requirements for reclaimed refrigerant and adjust such requirements in light of market data and other practical considerations to ensure achievability and relevance to the HFC production and consumption phase down.

Chemours also opposes EPA’s proposed mandate for OEMs to buy reclaimed HFCs in order to sell pre-charged HVACR equipment and for technicians and others to buy reclaimed HFCs in order to “first fill” new equipment on-site. Instead, Esther Rosenberg, global regulatory advocacy at Chemours, suggests that EPA should develop a pilot program to gather real-world data on the various issues and costs associated with restricting manufacturers and service technicians from having the option to choose which regulated HFCs to use.

“Such a pilot program might allow EPA to validate its assumptions of reclaim supply versus actual marketplace requirements without risking widespread and adverse consequences, such as new equipment shortages or the premature obsolescence of existing equipment due to lack of reclaim supply,” said Rosenberg. “One option would…