By Jim Dudlicek / NGA Director, Communications and External Affairs
NGA, FMI and other association partners have been working together as the U.S. Environmental Protection Agency (EPA) issues regulations to implement certain provisions of the American Innovation and Manufacturing (AIM) Act.
In October 2023, the EPA released the Phasedown of Hydrofluorocarbons: Restrictions on the Use of Certain Hydrofluorocarbons Under the American Innovation and Manufacturing Act of 2020 (“Technology Transitions”) final rule and the Phasedown of Hydrofluorocarbons: Management of Certain Hydrofluorocarbons and Substitutes Under Subsection (h) of the American Innovation and Manufacturing Act of 2020 (“HFC Management”) proposed rule.
A recent webinar hosted by FMI and assisted by the law firm Hunton Andrews Kurth covered the Technology Transitions final rule, addressing how it differs from the proposed rule; and the HFC Management proposed rule, with a request for feedback to guide the association coalition comments, due to the EPA by Dec. 18.
Click here to view a recording of the webinar (enter the password HFCWEBINAR): https://fmiva-my.sharepoint.com/:v:/g/personal/emccarthy_fmi_org/EbWjUOXpuJlKhnh9rZGdcwsBtpxP2QiSIrYHDTrrAM5aTQ?e=BOkLYX&CT=1701381028355&OR=Outlook-Body&CID=F51DE1FF-BA2D-401B-AA37-B7F8ED50B6BA
Here are some key takeaways from the presentation:
No one may manufacture or import these products after the following effective dates: Jan. 1, 2025 –household refrigerators and freezers using an HFC or blend with a GWP ≥ 150; retail food refrigeration units with GWP ≥ 150; refrigerated transport with GWP ≥ 700; chillers for comfort cooling using a GWP ≥ 700; Jan. 1, 2026 – ice maker products above a harvest rate threshold using an HFC or blend with a GWP ≥ 150; chillers for industrial process refrigeration using GWP ≥ 150, ≥ 300 or ≥ 700 (depending on type).
These systems will be banned after the following effective dates: Jan. 1, 2025 – chillers for comfort cooling using an HFC or blend with GWP ≥ 700; refrigerated transport using HFCs or blends with a GWP ≥ 700; Jan. 1, 2028 – chillers for industrial process refrigeration using GWP ≥ 700; industrial process refrigeration systems, other than chillers, using GWP ≥ 700.
Installation of these systems is forbidden after Jan. 1, 2026: chillers for industrial process refrigeration using an HFC or blend with a GWP ≥ 700; cold storage warehouse systems using GWP ≥ 150 or ≥ 300 (depending on type); cascade refrigerant systems using GWP of ≥ 300; industrial process refrigeration systems using ≥ 150 or ≥ 300; supermarket systems using GWP ≥ 150 or ≥ 300; and cascade systems using GWP ≥ 300; and certain automatic commercial ice machines and food processing and dispensing equipment with a remote condenser.
Compliance date is extended one year for the installation of industrial process refrigeration systems if an approved building permit issued prior to Oct. 5, 2023, specifies the use of an HFC and/or blend.
The final rule does not apply to equipment in existence in the U.S. prior to Dec. 27, 2020, nor products using a regulated substance or blend with an application-specific allowance, nor systems existing after that date but before publication of EPA’s proposed rule.
HFC reporting and recordkeeping must be consistent with the Greenhouse Gas Reporting Program. EPA proposed a quarterly reporting period but finalized an annual reporting period with reports due 90 days thereafter. Records must be retained for three years minimum and made available to EPA upon request.
The EPA addressed about half of the coalition’s concerns in the final rule. However, the concerns EPA addressed were not among the most significant for the coalition. For example, compliance dates for retail refrigeration were not pushed back as far as requested but reporting and recordkeeping requirements are now aligned with GHGRP.
Grocers must implement compliance plans ASAP. The first effective date is Jan. 1, 2025. Robust enforcement of the final rule is possible as the National Extension Climate Initiative highlights mitigating climate change as a major EPA priority.
Repairs are required when the leak rate is over the applicable leak rate threshold, 10% for comfort-cooling appliances, 20% for commercial refrigeration equipment and 30% for industrial process refrigeration (IPR) equipment. Leaks must be identified and repaired within 30 days.
Automatic leak detection systems are required for IPR and commercial refrigeration appliances containing ≥ 1,500 lbs. of refrigerant or substitute with GWP > 53 (new or existing). For new appliances, beginning Jan. 1, 2025, the system must be installed within 30 days of appliance installation; for existing appliances, system must be installed within one year of the final rule publication date.
Records for leak repair must be maintained for three years, including full charge; date of installation; information on installation, service, repair or disposal; amount and type of refrigerant added or removed; leak rate and method used to determine it.
