The phasedown of HFC refrigerants in the U.S. commercial refrigeration and air conditioning industries is well underway, causing concern among many HVACR professionals about its impact on the industry. One of the reasons for this apprehension may be the difficulty in keeping up with the ever-evolving federal regulations, state building codes, and safety standards that support the emergence of alternative low-GWP refrigerants.

To alleviate some of those concerns, Copeland recently hosted a webinar that discussed the present regulatory landscape regarding the transition to alternative refrigerants, as well as potential future regulations pertaining to PFAS (“forever chemicals”).

Refrigerant Transition

The transition away from HFC refrigerants officially began in December 2020, with the passage of the AIM Act, which mandates an 85% reduction in the production and consumption of high-GWP HFCs by 2036. In order to reach that goal, the Environmental Protection Agency (EPA) has been tasked with three primary responsibilities:

1. Decreasing HFC production and consumption;
2. Promoting the adoption of next-generation technologies through industry-specific restrictions; and
3. Establishing standards for managing the existing stock of HFCs and their substitutes.

Under the first point, HFC production was initially reduced by 10% in January 2022. A much larger stepdown occurs in January 2024, when production of HFCs will be cut an additional 30%, for a total 40% reduction from the baseline. Another big reduction comes in 2029, when HFC production will be cut an additional 30%, or 70% from the baseline.

“Remember that the baseline was calculated on average between the years of 2011 and 2013, and since then, our HFC usage has increased,” said Jennifer Butsch, director of regulatory affairs at Copeland. “So this 40% reduction from baseline is actually greater than a 40% reduction of where we were, say, in 2021. … As we move forward, it's really important that the demand also decrease, or else we'll start to run into areas of potential shortage.”

EPA addressed the second point in December 2022, releasing a rule that was largely in line with the requests made by AHRI. This includes banning the use of high-GWP HFCs such as R-410A in new HVAC equipment, starting in January 2025 (see Table 1). Butsch said the one noticeable difference in the EPA rule was the transition date for most of the commercial refrigeration applications: EPA proposed to be January 1, 2025, or one year sooner than the manufacturers had requested.

TABLE 1: Proposed GWP limit restrictions on HFCs by sector and subsector. (Courtesy of EPA)

“The larger equipment has a proposed GWP limit of 150 on the commercial refrigeration side for the most part,” said Butsch. “If it's less than a 200-pound charge, it's 300 GWP, which is consistent with the requests from AHRI. Chillers and air conditioning equipment have a proposed GWP limit of 700. The request was 750 GWP, but for all intents and purposes, this doesn't have much impact.”

The final rule for the technology transition rule is expected later this year in October.

The third point has to do with reducing the demand for refrigerant in the existing installed base, which will require a much more robust recovery and reclamation market. According to EPA, the current market for reclamation is estimated to be below 2% of the total of the refrigerant produced, which is very low, said Butsch.

“The global refrigeration and air conditioning market accounts for 86% of new HFCs produced. Of that 86%, over 50% is actually used to top off leaks in existing equipment versus filling new equipment,” she said. “This demonstrates the need to address the service market. In addition to reclaim, there will likely be leak repair, refrigerant management, and best service practices in the installation of new equipment all specified [by EPA]. We expect to see a draft or a proposal later this summer.”

While the HVACR industry is anxiously awaiting these final rules from EPA, Butsch noted that the AIM Act lacks federal preemption, which means states have the freedom to regulate HFCs as they see fit. Most are hoping that states adopt EPA’s guidance; otherwise, there could be a patchwork of different refrigerant regulations around the country.

Possible PFAS Regulations

In addition to the regulations described above, there are new regulations being proposed, not just in the U.S., but also in Europe, said Rajan Rajendren, global vice president of environmental sustainability at Copeland. These potential regulations concern PFAS, and they do not specifically target refrigerants but are more broad in nature.

“These chemicals are used in many, many things that you use on a daily basis, such as Teflon,” said Rajendren. “It matters to [the HVACR industry] because the conversation is about whether PFAS should be restricted or banned, which is now beginning to affect our industry.”

But just how much these restrictions will affect the HVACR industry depends on the definition of PFAS. According to Rajendren, there are multiple definitions, with the European Union (EU) having one, while EPA and individual states such as Delaware and Maine having another.

According to the American Chemistry Council, PFAS (per- and polyfluoroalkyl substances) are a diverse group of chemicals characterized by the strong bond between fluorine and carbon. Because of this strong bond, PFAS provides products with strength, durability, stability, and resilience. PFAS have been used in many consumer products since the 1940s, including refrigerants used in air conditioning and refrigeration equipment. More recently, their ubiquitous presence in water, soil, and air samples has raised concerns about their potential impacts on human health and the environment.

“There are basically three broad areas in which these PFAS chemicals are present in the HVACR industry,” said Rajendren (see Table 2). “The first is polymeric compounds, such as Teflon and any other kind of plastic. That means you’ll find PFAS in bearings and compressors, as well as in all kinds of components and finished equipment, such as air conditioners and refrigeration equipment.”

TABLE 2: PFAS definition and impact on the HVACR industry. (Courtesy of Copeland)

PFAS Definitions In-Scope of HVACR

The second area where PFAS can be found is the refrigerant itself. Research is still underway in the U.S. about this topic, but according to the EU’s Registration, Evaluation, Authorization and Restriction of Chemicals (REACH), refrigerants not containing PFAS include CO₂, propane, R-32, R-152a, R-1132(E), and R-1132a.

The third category involves processing aids, which manufacturers use to make products such as Teflon. Some solvents could fall into this category as well, said Rajendren.

“This is not the last you're going to hear about PFAS from any of us,” he said. “But the industry is responding to a lot of this kind of activity, by providing information and helping regulators and policymakers and legislators with as much information as possible to let them know how all these chemicals are actually used in our products, and how they might actually impact not only the environment, but also human beings.”