Navigating the EPA’s New HFC Regulations: What Commercial Refrigeration Owners Need to Know
The Environmental Protection Agency (EPA) is enacting new regulations to phase down potent greenhouse gas refrigerants called hydrofluorocarbons (HFCs). This phasedown aims to reduce HFC emissions that contribute to climate change. But what do these new rules mean for you as the owner of a commercial facility like a grocery store or cold storage warehouse that relies on refrigeration? Below I summarize the key impacts on commercial refrigeration owners and how businesses can navigate the changes.
The EPA’s comprehensive regulations on refrigerant leaks will cut domestic HFC production and consumption by 85% by the year 2036, aligning with the mandate under the Kigali Amendment to globally phase down HFCs. To meet reduction targets in the United States, the EPA restrictions will prohibit the usage of certain HFC refrigerants over the next several years based on each chemical’s calculated global warming potential (GWP).
For example, the new regulations will ban single-component HFC refrigerants with a GWP higher than 150 in new stand-alone medium-temperature commercial refrigeration units starting January 1, 2025. This means commonly used HFCs like R-404A and R-507A can no longer be used in new equipment designed for refrigerated cases, display cases, or walk-in coolers after that date.
The rules also require retrofitting existing commercial refrigeration systems using HFCs with alternatives that have a GWP below 150 by 2025 for stand-alone units and 2027 for large centralized systems. These provisions mean most commercial refrigeration owners will need to eventually transition to alternative lower-GWP refrigerants to remain compliant.
Some lower-GWP transitional options include newly developed hydrogenated (HFO) blends or the natural refrigerant propane (R-290). However, natural refrigerants like propane come with safety considerations and hydrogenated HFO blends may face future restrictions. Longer-term options like CO2 refrigeration are also gaining interest despite higher capital costs. Carefully weighing the performance, flammability, cost, and long-term viability of these alternatives will be essential in selecting the optimal replacement solution for your facilities.
The EPA's new HFC regulations present a prime opportunity for grocery stores, cold storage facilities, and other operators to modernize their refrigeration management. The rules aim to accelerate adoption of more energy-efficient, climate-friendly systems and refrigerants. In many cases, transitioning away from high-GWP HFCs enables installing advanced equipment that saves on energy and operating costs over its lifetime, beyond just ensuring regulatory compliance.
The rules also require robust refrigerant oversight, including quarterly manual inspections or continuous monitoring via automated leak detection systems. While this mandates added diligence, it also incentivizes maximizing operational efficiency. Getting ahead of regulations by upgrading equipment, containment practices, and monitoring is a win-win - benefiting the environment as well as your business, finances, and workforce.
Investing now in proactive compliance systems will help minimize business disruptions. Improved containment, more frequent inspections, and advanced automated monitoring software that provides 24/7 leak oversight are imperative. With proper preparations, commercial refrigeration operators can navigate the HFC phasedown successfully while enhancing operations, reducing risks, and potentially achieving a positive ROI.
Viewed strategically, the new rules can be an impetus for win-win upgrades that bring facilities up to date with more sustainable, efficient, and intelligently managed refrigeration. With the right planning and partnerships, compliance can modernize operations while demonstrating environmental leadership.
To avoid business disruptions, investing now in proactive refrigerant compliance management software will also be key. Regular inspections, early leak detection, improved containment, and refrigerant recovery practices will all help minimize unexpected issues. Advanced remote refrigeration monitoring software can provide an affordable solution for 24/7 leak oversight between manual checks. With the proper preparations, commercial refrigeration owners can navigate the HFC phasedown successfully while benefiting from improved operations and risk reduction.
To summarize the top 5 takeaways for commercial refrigeration owners:
EPA regulations are phasing out common high-GWP HFC refrigerants starting in 2025.
Most facilities will need to transition to lower-GWP replacement refrigerants, such as HFOs or propane.
The transition provides an opportunity to adopt more advanced energy-efficient systems.
Required leak inspections (quarterly in most cases) or the use of Automatic Leak Detection systems will be crucial to complying with the regulations.
With proper planning, businesses can comply with regulations while saving money and enhancing operations.
In summary, while the new EPA rules will require adjustments, they also provide incentives and opportunities for commercial refrigeration owners to modernize operations. With thoughtful preparation and refrigerant management, grocery stores, cold storage facilities, and other operators can successfully navigate the HFC phasedown.
Stay tuned for our next blog on how Automated Leak Detection can help you reach compliance with these new regulations, and check out Axiom Cloud's Early Leak Detection module for more details. Contact us to discuss this in more detail.
Joel Sharrer, JD/MBA
As Axiom Cloud’s in-house policy expert, Joel spearhead’s Axiom Cloud’s strategic responses to, and adoption of, new environmental regulations. Joel is passionate about developing software solutions for global climate challenges, and brings over a decade of environmental policy expertise - having worked on environmental issues for law firms, energy consultancies, and global technology providers.