Air Conditioning Industry Regulations

Although most associate the Montreal Protocol with phasing out ozone-depleting substances, it has also been evaluating the global warming potential of HFCs for over a decade. In 2016, 197 countries met in Kigali, Rwanda, and agreed on a global proposal to phase down HFCs. The Kigali Amendment required ratification from at least 20 countries to take effect. To date, 140+ countries have ratified it. As such, it took effect for participating countries on January 1, 2019. 

The American Innovation & Manufacturing Act (AIM Act) was signed into law in 2020, granting the federal government the authority to regulate HFC refrigerants in three primary ways via the Environmental Protection Agency (EPA).

• Phasing down HFC supplies by reducing their production and consumption over a 15-year period. These supply-side restrictions began on Jan. 1, 2022, requiring a 10% reduction in HFC production and consumption through 2023. Per this HFC phasedown schedule, an additional 30% reduction will take effect between 2024 and 2028 — with 70% and 80% reductions needed by 2029 and 2034, respectively. Not only are these phasedowns expected to drive up the price of HFC refrigerants as supplies decrease, but they also signal the end of a high-GWP HFC era in HVAC.
• Establishing sector-based approvals and HFC restrictions that facilitate transitions to next-generation refrigerant technologies. HFC use restrictions would help specific sectors to transition more quickly away from higher-GWP HFCs while providing additional flexibility for those who may need more time. A key aspect of this effort includes the EPA’s authority to support the demand for lower-GWP refrigerants by approving new alternatives per sector-based application guidelines.
• Regulating HFC management by establishing standards for the management of HFCs in servicing and repair processes, such as: lowering leak rate thresholds and requiring proper recovery of “used” HFCs for purification and resale (aka reclaim). This would allow for an efficient transition from HFCs in accordance with reductions in production and consumption schedules. Previously, the EPA had created Section 608 to govern these best practices, some of which were invalidated per a 2017 court ruling. Note: Even if the leak repair and maintenance requirements of Section 608 are currently not enforced for HFCs, an effective leak repair and maintenance program is still generally recognized as an industry best practice. Other beneficial provisions of Section 608 — including the certified technician program and the refrigerant recovery and reclamation rules — are still in effect.

Meeting the targeted emissions reductions in California will require the use of lower-GWP refrigerants. But many of these low-GWP, hyrdrofluoroolefin (HFO), HFC, and HFO/HFC blend refrigerants are classified as A2L, or mildly flammable. Product and application standards, UL 60335-2-40 4th edition and ASHRAE 15 have been updated for comfort cooling to define charge limits and mitigation required to limit the potential of a flammable event in case of a leak.

These standards will serve as the bases for codes that govern building, fire, and other local authorities having jurisdiction (AHJ), who will ultimately oversee the applications in which these refrigerants are used. It’s important to remember that building codes vary from state to state; thus, the adoption of flammable refrigerants will take place on local levels and may take years to accomplish. Below is a current snapshot of those states that have updated their building codes to allow for A2Ls in high-probability HVAC systems.