EPA Proposes Increased Requirements for Reclaim and Leak Repair

The Environmental Protection Agency (EPA) has released a proposed HFC management rule designed to reduce leaks and venting of HFCs. While the rule does contain some expected components, the EPA has also included some proposals that were unexpected. Additionally, the agency is seeking advance comment on technician training requirements and is not proposing any changes to the current 608 program in this rulemaking.

The proposed rule contains the following proposals:

• Extend leak repair requirements to appliances with more than 50 pounds of an HFC or substitute refrigerant with a GWP higher than 53

• One year after the rule is finalized, require appliances between 15 and 50 pounds of HFC or substitute refrigerant to comply with leak repair requirements

• Install automatic leak detection systems on commercial refrigeration or industrial process refrigeration appliances with a charge size of 1,500 pounds or more.

  • For new equipment the automatic leak detection system must be installed within 30 days

  • For existing equipment, automatic leak detection systems must be installed within one year of the final rule

• EPA is proposing to require reclaimed refrigerant be used for the initial charge of the following types of equipment starting on January 1, 2028

  • residential and light commercial AC and heat pumps

• cold storage warehouses

  • industrial process refrigeration

  • stand-alone retail food refrigeration

  • supermarket systems

  • refrigerated transport

  • automatic commercial ice makers

• EPA is also proposing that reclaimed refrigerant be used for servicing or repair of the following types of equipment starting on January 1, 2028

  • stand-alone retail food refrigeration

  • supermarket systems

  • refrigerated transport

  • automatic commercial ice makers

• EPA is proposing similar reclaim requirements for fire suppression equipment along with required training and reporting in that sector

• EPA is seeking feedback on a proposal to require all disposable refrigerant cylinders be sent to an EPA-certified reclaimer or fire suppressant recycler to remove the remaining heel charge starting on January 1, 2025.

  • EPA is seeking feedback on other possible methods for ensuring the heel charge in all disposable cylinders is recovered

• EPA is once again proposing to track the movement of all cylinders containing HFC refrigerants through the supply chain, including to the reclaimer for heel removal, with a stagger implementation starting on January 1, 2025, and a prohibition on the sale of cylinders without tracking on January 1, 2027.

  • This proposal was struck down by the District Court of Appeals in HARDI v. EPA, in which the court said, “The EPA has not identified a statute authorizing its QR-code and refillable-cylinder regulations.”

    • EPA is claiming that the court decision was limited to subsection (e)(2)(B) and, therefore, has the authority to re-propose it under subsection (h).

While the AIM Act does give EPA a lot of latitude under subsection (h) by allowing the agency to “promulgate regulations to control, where appropriate, any practice, process, or activity regarding the servicing, repair, disposal, or installation of equipment,” the EPA is choosing to expand beyond that authority by claiming jurisdiction over the “entire practice, process, or activity, including aspects of it that may occur before or after the servicing, repair, disposal, or installation of the equipment.” Allowing the EPA to claim this level of authority is a slippery slope that could allow the EPA to regulate activities at the OEM and distributor levels not granted by the AIM Act.

EPA is providing a 60-day comment period that begins when the proposed rule is published in the Federal Register. Please provide any feedback on the proposal to Alex Ayers.