Heating, Air-conditioning & Refrigeration Distributors International (HARDI) opposed announced changes to the Environmental Protection Agency’s Technology Transitions Rule for commercial refrigeration, including retail food refrigeration and cold storage.
HARDI said the changes would increase demand for refrigerants that are facing a statutory supply decrease under the American Innovation and Manufacturing (AIM) Act. The restrictions apply to refrigeration systems used by supermarkets, retail food establishments, and cold storage warehouses when new equipment is needed. The AIM Act does not require businesses to replace systems.
According to HARDI estimates, the added demand could cost the refrigeration industry nearly $8 billion in refrigerant costs alone, with economic ripple effects raising the total cost to $13 billion. HARDI said the impact would affect the broader HVACR market, including contractors, distributors, building owners, manufacturers, and consumers.
HARDI said extending the use of high-GWP refrigerants in major commercial refrigeration applications would increase demand for refrigerants whose supply is already being reduced by law, putting upward pressure on prices and increasing the likelihood of shortages across the HVACR market.
“This outcome is deeply disappointing, and it did not have to go this way,” said Talbot Gee, CEO of HARDI. “HARDI, along with manufacturers and other industry partners, submitted data-driven comments demonstrating the real-world supply and cost consequences of allowing extended high-GWP refrigerant use in commercial refrigeration. And yet the final rule appears to reflect the preferences of a narrow segment of the food retail sector that supported the changes over the well-being of the most-affected HVACR businesses and their customers. That is not how sound rulemaking should work.”
The announced changes also included a HARDI-supported repeal of the installation date deadline for residential and light commercial air conditioners and heat pumps. The final changes will take effect 60 days after publication.
