EPA Moves to Relax Some HFC GWP Requirements

Earlier this month, the Trump administration announced plans to augment global warming potential (GWP) limits on hydrofluorocarbon (HFC) substances established in the Technology Transitions section of 2020’s American Innovation and Manufacturing Act. If passed, the regulation would increase the acceptable GWP levels of HFC refrigerants used in various HVAC-R equipment.

The proposed rule, “Phasedown of Hydrofluorocarbons: Reconsideration of Certain Regulatory Requirements Promulgated Under the Technology Transitions Provisions of the American Innovation and Manufacturing Act of 2020,” comes after several major players in the HVAC-R industry have transitioned to designing units for refrigerants complying with GWP limits set forth in previous mandates.

Among the notable markets impacted by the initial ruling were commercial HVAC manufacturers who, in response to application-dependent GWP limits ranging from 150 and 700, transitioned away from longtime industry standard R-410 (and its GWP of roughly 2000) to newer substances formulated for similar thermal performance but with lower environmental impact. Industry giants Carrier and Trane both turned to R-454B as their replacement, with many others following suit, driving a surge in demand that led to shortages of the refrigerant and price hikes from its manufacturers, dynamics which the administration says precipitated the new rule’s proposal.

“With this proposal, EPA is working to make American refrigerants affordable, safe, and reliable again,” said EPA Administrator Lee Zeldin in a press release.

Other unit manufacturers, such as Daikin, replaced 410A with R-32, which has a GWP of ~675. While both 454B and 32 offer similar performance profiles to their predecessor, transitioning product lines to operate with a different working fluid comes at a cost, which, for some, was significant.

The proposed rule change, which will likely have a smooth path to approval, could effectively roll back many of the requirements that prompted those sweeping redesigns, and in some cases, could lead to yearslong HFC phasedown efforts resembling something closer to a ramp-up. For example, beginning in 2026, units used in refrigerated warehouse applications would be permitted to use refrigerants with GWPs as high as 700, an increase from 150 or 300, depending on the specific application, with EPA also proposing “a later adjustment to the GWP thresholds starting January 1, 2032.”

While the new rule may prove to be a boon to some markets and unit types, representatives from others have said the new rule will have effectively no impact on their operations.

David Gitlin, for example, president and CEO for Carrier Corporation, said during a recent speech that the idea of switching back to R-410A “would create a whole bunch of costs in the system, because our manufacturing lines have switched over, and those costs would need to go somewhere.”  

For many, whiplash from constantly changing refrigerant regulation is nothing new. New refrigerant formulations, shifts in regulatory priorities, and technological advancements have all been realities of the industry for the better part of the past three decades. It remains to be seen whether this latest development is more of the same or just the latest opportunity for manufacturers and suppliers to showcase their flexibility.

A virtual public hearing is scheduled for Monday, October 20^th.  

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