EPA’s New Rule on Refrigerant Management Set to Reduce Millions of Tons of Superpolluting Greenhouse Gases — EIA
The EPA flag over its building

EPA’s New Rule on Refrigerant Management Set to Reduce Millions of Tons of Superpolluting Greenhouse Gases

Washington, DC – Today, the U.S. Environmental Protection Agency (EPA) announced a final rule continuing the implementation of the American Innovation and Manufacturing (AIM) Act which phases down highly potent hydrofluorocarbons (HFCs) in alignment with the Kigali Amendment to the Montreal Protocol. The new rule establishes the Emissions Reduction and Reclamation (ER&R) program and sets requirements to reduce leaks and improve practices to curb emissions of refrigerants at end of life.

“Today’s climate action announcement ensures significant near-term emissions reductions by addressing super pollutant leaks from large cooling equipment, and sets the groundwork for future acceleration by incentivizing their reclaim and reuse,” said Avipsa Mahapatra, Climate Campaign Director, Environmental Investigation Agency (EIA US).

“It is exciting to begin the New York Climate Week with this package of impactful measures that could serve as a model for countries grappling to address these avoidable, and often ignored, potent emissions globally. This announcement comes at an opportune time as lifecycle refrigerant management is a prominent topic at this year’s Montreal Protocol meeting.”

According to the EPA, this final rule will result in 120 million metric tons of carbon dioxide equivalent (MTCO2e) of avoided emissions by 2050, equivalent to emissions from 23.7 million homes’ electricity usage for one year, and at least $6.9 billion in net incremental benefits from 2026-2050.

EIA US has advocated for bolstering lifecycle refrigerant management (LRM) due to the enormous emissions reductions associated with curbing leaks and improving practices at end of life for these substances. Our 90 Billion Ton Opportunity: Lifecycle Refrigerant Management found that improving LRM, such as in this rule, presents an opportunity to prevent up to 90 billion CO2e metric tons globally by the end of this century. 

The rule requires stronger monitoring and faster repair of refrigerant leaks. For many equipment types, more than half of all refrigerant used in the equipment over the course of its life is lost to leaks, significantly contributing to climate change. Supermarkets are primary sources with large equipment prone to leaks and EIA estimates the emissions from U.S. stores are equivalent to burning 65 billion pounds of coal each year.

“These new requirements will effectively minimize releases from equipment into the atmosphere and also deliver considerable cost savings,” said Beth Porter, Senior Climate Policy Analyst, EIA US. “Hundreds of businesses have voluntarily monitored and repaired leaks with great success, and these regulations are crucial to address the thousands of others that continue to emit potent greenhouse gases.”

Key actions in the rule:

  • Starting in 2026, refrigerant-containing equipment using HFCs with a full charge of 15 pounds or more will be subject to leak repair requirements, including leak rate thresholds, inspection provisions, timelines to fix leaks, and the extent of repair required. 
  • Automatic leak detection (ALD) systems will be required on large commercial and industrial systems of 1,500 pounds or more, to quickly alert system operators of refrigerant leaks. EPA estimates in 2026, leak repair and ALD requirements will save $19.5 million due to reducing the need to replace leaked refrigerant.
  • In 2030, the combined leak repair and ALD requirements are estimated to prevent approximately 5.6 million MTCO2e of HFC emissions, the equivalent of removing over one million cars from the road.
  • Requiring reclaimed refrigerant to be used in servicing equipment in fire suppression, supermarket systems, refrigerated transport, and automatic commercial ice makers as of 2029, to reduce new refrigerant demand which will reduce consumption by 12 million MTCO2e annually in 2030.  
  • Creates the first national reclamation standard that will cap virgin HFCs at 15% by weight in refrigerants marketed as “reclaimed,” aiming to reduce demand for newly produced HFCs.
  • New record-keeping requirements on repairs and use of reclaimed refrigerant will enable EPA to monitor compliance with the leak repair provisions, minimize refrigerant emissions, and provide cost savings of $195 million by 2050. 
  • Starting in 2028, the removal of all HFCs from certain disposable cylinders will be required prior to discarding them. Disposable cylinders are more likely to leak than other kinds of cylinders, and this requirement will maximize the amount of refrigerant available for reclamation.

The rule does not include proposed requirements on container tracking or updates for technician certification, with the exception of fire suppression technician training requirements. However, EPA notes the intention for a future notice and comment rulemaking to establish a training and/or certification program. Widely available tracking identifiers would greatly support reclaim efforts, as they enable technicians and reclaimers to easily separate gas and ensure its recovery. Additionally, updates to certification are crucial for training technicians to service systems with ultra-low global warming potential refrigerants. EIA continues to encourage action on these issues in the future.

The new regulation comes in advance of the annual Meeting of the Parties of the Montreal Protocol in October, where lifecycle refrigerant management is on the agenda.

CONTACTS FOR MEDIA

Avipsa Mahapatra, EIA US Climate Campaign Director, via [email protected] or +1 (347) 931 0129