Chain Store Age: Refrigerant Regulations: EPA’s AIM Act compliance and the January 2026 deadline
As the January 2026 deadline for the EPA’s AIM Act draws nearer, the grocery retail sector faces a significant shift in how it manages refrigerants.
Among other things, the new regulations make “whole system” automatic leak detection (ALD) systems an essential component of compliance (and explicitly requires ALD for appliances that use over 1,500 lbs. of HFC refrigerant).
For grocery chains and other cold storage operators that rely heavily on refrigeration, the impact is clear: Waiting until the last minute to meet these regulations could lead to operational challenges, rising costs and significant potential fines. On the flip side, acting well in advance not only ensures compliance but presents opportunities for long-term financial benefits and operational improvements.
Due to the AIM Act regulation announced in September 2024, the cost of non-compliance with refrigerant regulations has skyrocketed. The EPA’s focus on HFCs has elevated refrigerant management as one of its top enforcement priorities, with penalties reaching up to $57,000 per day for violations. Retailers that don’t comply could face steep fines, operational disruptions or even court-enforced mandates requiring costly and rigid compliance measures. But beyond avoiding penalties, early action on refrigerant leak management offers a path to improved efficiency and lower operational costs.
With ALD systems, there is a significant financial advantage to be gained by adopting the technology early. The rush to comply closer to the 2026 deadline will likely cause an uptick in demand for ALD installations, driving up costs and extending lead times. The cost of equipment and services may increase as the deadline approaches, and availability could become a major issue. Those who act sooner will not only avoid inflated pricing but can also benefit from locking in the best providers and securing installations on a timeline that suits their operational needs, rather than scrambling to meet a regulatory deadline.
Early compliance also reduces the long-term costs associated with refrigerant management. The AIM Act mandates quarterly leak inspections for systems that surpass a 20% leak rate. For many retailers, relying on manual inspections can cost up to $4,000 per store annually, and those inspections only catch leaks after significant refrigerant has been lost.
In contrast, indirect ALD systems monitor the entire refrigeration network continuously, identifying leaks early and preventing them from exceeding the 20% threshold that triggers quarterly inspections, repairs and additional paperwork. This proactive approach significantly reduces both the likelihood and the cost of non-compliance. Retailers that invest in indirect ALD now will also see substantial operational benefits. Refrigerant leaks are notorious for leading to costly emergency repairs, unexpected downtime, and even inventory loss due to cooling failures.
By installing ALD systems that monitor the entire refrigeration infrastructure, grocery retailers can detect leaks long before they become major issues, avoiding the ripple effects of system breakdowns, product spoilage and urgent repairs.
The financial case for indirect ALD becomes even more compelling when considering the sustainability impact. Refrigerants are among the most potent greenhouse gases, and reducing leaks can significantly lower a retailer’s Scope 1 and 2 emissions. For businesses focused on sustainability goals, cutting refrigerant leaks is one of the most effective strategies to achieve significant reductions in their carbon footprint.
Going Forward
The operational and financial benefits of indirect ALD extend far beyond avoiding fines or meeting a regulatory deadline. Retailers who install ALD systems will find that their investment pays off in reduced energy consumption, lower refrigerant replacement costs, and fewer emergency repairs.
Additionally, with the rising costs associated with refrigerants, minimizing leaks also protects businesses from the financial volatility of refrigerant prices, which have been steadily increasing due to tighter environmental regulations. Perhaps the greatest advantage for finance managers in acting now is the ability to control the pace and cost of the transition. Retailers who wait until the last minute will face not only higher costs but also potential delays in installation due to limited availability of systems and qualified technicians.
Acting early allows for careful planning, selection of the most cost-effective systems and smooth integration into existing operations—all while avoiding the last-minute scramble and potential disruptions that late adopters will almost certainly face. The EPA’s AIM Act regulations are a significant development in refrigerant management, but they also present an opportunity for forward-thinking grocery retailers to get ahead of their competitors.
By investing in indirect ALD systems now, retailers can avoid the financial and operational pitfalls of non-compliance while unlocking long-term benefits in efficiency, sustainability and cost savings.
This article was published in Chain Store Age on February 21, 2024. Read the original version here.