Understanding the EPA's Refrigerant Phaseout Schedule for 2024

The phaseout of hydrofluorocarbons (HFCs) under the American Innovation and Manufacturing (AIM) Act continues to reshape the HVAC and refrigeration industry.

For those maintaining or working with HFC-based equipment, this phaseout can feel like navigating uncharted waters.

For years, HFCs have been the go-to refrigerants, prized for their efficiency and stability. But with their high global warming potential, regulatory actions are now pushing the industry toward greener alternatives.

Naturally, such a big shift raises concerns about various factors like costs, compliance, and long-term benefits. However, the EPA estimates that this phasedown will lead to lower refrigerant costs, improved energy efficiency, and a reduced environmental impact.

The Environmental Protection Agency (EPA) estimates positive net benefits of $16.4 billion annually by the final stage of the EPA refrigerant phaseout schedule.

Adapting to these changes isn’t just about compliance—it’s about staying ahead. While initial apprehension is understandable, this article will help you navigate the impact of the EPA's regulations and how they aim to increase energy efficiency, reduce leakage rates, and optimize operational costs.

EPA Refrigeration Regulations and Tech Solutions for Retail

The EPA is tightening regulations in a bid to reduce the use of HFCs that are harmful to the environment. Smart tech that provides real-time leak alerts will help you stay compliant with regulations in retail refrigeration

Facilio BlogManaswini Rao

What is the EPA refrigerant phaseout?

The EPA's HFC refrigerant phasedown tackles a critical environmental issue: the damaging impact of HFCs on global climate.

HFCs, common refrigerants in HVAC and refrigeration systems, were hailed as a safer alternative to ozone-depleting CFCs. However, HFCs are potent greenhouse gases, trapping more heat than CO2 in the atmosphere and contributing to global warming.

To address this growing concern, the EPA, empowered by the 2020 AIM Act, launched a comprehensive HFC phaseout program for U.S. production and consumption. This multi-layered plan reduces HFC allowances and substantially cuts HFC use over the next decade.

The HFC phasedown schedule, as envisaged by the EPA, is as follows:

• 2022–2023: 10% reduction from baseline levels.
• 2024–2028: 40% reduction.
• 2029–2033: 70% reduction.
• 2034–2035: 80% reduction.
• 2036 and beyond: 85% reduction.

The EPA's ambitious goal is to achieve an 85% reduction in HFC consumption by 2036 is expected to pave the way for a smooth transition to more environmentally friendly alternatives. This initiative aims to encourage the development, adoption, and widespread use of refrigerants with a significantly lower global warming potential.

Key refrigerants affected

The EPA’s HFC phaseout program impacts several refrigerants, including:

• R-404A: Commonly used in commercial refrigeration for low-temperature applications
• R-134a: Used primarily on commercial chillers and older vehicle ACs
• R-410A: Used widely in commercial and residential ACs and chillers
• R-407C: Employed as a replacement for R-22 in existing ACs and refrigeration systems
• R-123 and R-22: These HCFC refrigerants are used in commercial cooling applications like HVAC and refrigerators

Detailed timeline of the EPA refrigerant phaseout schedule

The EPA’s HFC phaseout program is already underway and establishes production and consumption baselines following the formulas outlined in the AIM Act. These baselines serve as a reference point for allowable production and consumption levels, which will gradually decrease each year according to a predefined schedule within the AIM Act.

A table summarizing the consumption and production limits for the HFC phaseout is provided below. Additionally, the EPA issues allowances for HFC production and import on an annual basis, typically by October 1 of the preceding year.

Key regulations that you should be aware of

• In new chiller production, HFC refrigerants like R-404A and R-410A are prohibited from 1st January 2024.

• The production of new equipment using R-22 ceased entirely in 2022, and the HCFC phaseout will be completed in 2030.

Future deadlines to keep an eye on

Here are some future deadlines to watch out for in the HFC phaseout programs, especially for allowance reduction:

• 2024-2028: A significant allowance reduction of 60% from the baseline. Expect tighter restrictions on HFC availability and inflated prices.
• From 2029 onwards, the allowance reduction will reach 85% by 2034-35 and 90% by 2036. This will necessitate a substantial change in the business approach and the refrigerant used.
• Mandatory automatic leak detection systems (ALDS) for new and existing systems with a full charge of 1500+ lbs. of an HFC refrigerant or a substitute with a GWP > 53

• Starting 1st January 2028, mandatory use of reclaimed refrigerant for servicing HFC systems
• Starting 1st January 2025, disposable cylinders must be sent to the reclaimer to remove the refrigerant heel.

Impact of the EPA refrigerant phaseout schedule on different industries

As mandated by the AIM Act, the EPA’s HFC phaseout program is being carried out in three ways:

1. Phasing down production and consumption: Gradually reducing the production and consumption of HFCs to 15% of baseline levels by 2036.
2. Maximizing reclamation and minimizing releases: Encouraging the reclamation of existing HFCs and minimizing their release from equipment to reduce environmental impact.
3. Facilitating the transition to next-generation technologies: Implementing sector-based restrictions to promote the adoption of environmentally friendly alternatives with lower global warming potentials (GWPs).

However, the HFC phasedown presents a major challenge: identifying suitable alternatives that match the performance and compatibility of existing systems.

Additionally, the cost of new refrigerants and system upgrades, and training technicians to handle low-global warming potential (GWP) systems pose hurdles to a smooth phaseout of HFCs.

Industries most impacted by the phasedown include

• Refrigeration and air conditioning (HVAC/R): This industry will experience a full-blown shift. Manufacturers must develop and procure equipment compatible with low GWPl alternatives, while service technicians will require training to handle new refrigerants safely.

• Retailers: Supermarkets and retail stores must maintain proper temperature in freezers and display cases. They will now have to find cost-effective and energy-efficient replacements for their existing HFC refrigerators.
• Cold storage warehouses: Cold storages require consistent cooling for perishable goods. Finding large-scale, low-GWP refrigeration systems will be a top priority for these facilities.
• Industrial process facilities: Food processing, pharmaceuticals, and chemical manufacturing rely heavily on HFC-based refrigeration for temperature control. They will now have to find efficient replacements to ensure smooth operation.
• Data centers: These facilities rely on efficient cooling systems to maintain optimal temperatures for servers and other critical equipment. The phasedown necessitates the adoption of alternative refrigerants and potential upgrades to existing cooling infrastructures to ensure compliance and maintain operational efficiency.
• Transportation: The transportation sector, including refrigerated transport and vehicle air conditioning, accounts for approximately 8% of HFC use in the United States. The phasedown will require the development and integration of low-global warming potential (GWP) refrigerants in vehicles and transport refrigeration units.

Opportunities for innovation and efficiency presented by HFC phaseout

The phasedown of hydrofluorocarbons (HFCs) is reshaping the HVAC/R industry, pushing for greener, more efficient cooling solutions. This shift isn’t just about meeting regulations—it’s opening doors for innovation, sustainability, and cost savings.

a) The rise of low-GWP refrigerants

As the industry moves away from high-GWP HFCs, research into eco-friendly alternatives is accelerating. Technologies like magnetic refrigeration, thermoelectric cooling, and adsorption refrigeration are emerging as game-changers, offering higher efficiency and a lower environmental footprint compared to traditional cooling methods.

b) A great chance to upskill your workforce

With new refrigerants comes the need for specialized training. Technicians must learn how to handle, install, and maintain these alternatives safely. To bridge the gap, industry-wide educational programs are equipping professionals with the latest knowledge and best practices, ensuring a smooth transition to next-gen cooling solutions.

c) It pays off in the long run

Switching to low-GWP refrigerants and energy-efficient systems may require an upfront investment, but the long-term benefits are undeniable. Businesses stand to gain from lower energy consumption, reduced greenhouse gas emissions, and significant cost savings—all while staying ahead in a rapidly evolving industry.

How businesses can prepare for the transition with Facilio

The EPA’s refrigerant phaseout schedule might seem daunting, but it represents a prime opportunity for multi-site retail stores and other operators to modernize their refrigeration management.

People also read: Achieving Superior Refrigeration Control and Lower Energy Costs

Apart from transitioning away from high-GWP refrigerants, the new regulations also require robust refrigerant oversight, including quarterly manual inspections or continuous refrigeration monitoring via automated leak detection systems. While this added diligence might seem like a burden, it’s actually an opportunity to optimize operations and reduce long-term costs.

Here’s how you can stay ahead of the regulations and smoothen your transition:

1. Upgrade your equipment

The transition starts with upgrading to more energy-efficient equipment. Not only does this help offset initial costs, but it also leads to substantial operational savings over time. Here's how to approach it:

• Develop a strategic upgrade plan based on your current systems’ age, efficiency ratings, and maintenance needs.
• Prioritize replacing outdated HFC-based equipment while taking into account the new regulations regarding refrigerant charge limits and leak detection requirements.

You can also consider retrofitting older systems with conversion kits that utilize low-GWP alternatives.

2. Stay up to date on HVAC/R Tech

The industry is rapidly evolving, especially when it comes to low-GWP refrigerant solutions. Stay ahead by attending trade shows, engaging with new product releases, and always keeping an eye out for innovative HVAC/R technologies.

3. Leverage IoT-based connected refrigeration CMMS software like Facilio

This may be the most crucial and effective step in preparing for the transition.

The AIM Act goes beyond simply preventing the use of environmentally damaging gases. It also takes a proactive approach by regulating leak detection and strict compliance management.

The penalties for non-compliance can be steep—up to $57,617 per system violation per day. That’s not including the increased scrutiny and paperwork!

And this is exactly where Facilio comes in. 

To manage refrigeration compliance, a CMMS platform like Facilio offers potent solutions to navigate the HFC phaseout.

Facilio offers an innovative, enterprise-grade refrigeration management solution that streamlines compliance and optimizes performance. This unified platform simplifies compliance, detection, and leak management. Here's what Facilio provides:

• Proactive compliance management and monitoring to handle leaks, repairs, retrofitting, and installations.
• Automated leak detection across different contractors and locations
• Easy audits with standardized refrigerant tracking
• Remote hardware monitoring for continuous oversight.
• Real-time alerts and analysis to identify and address potential leaks immediately.
• Cloud-based tools to remotely monitor your refrigeration systems and predict slow leaks, even without sensors.
• Smart analytics to eliminate false or unnecessary alerts
• Integration with industry standards like CARB, GreenChill, and ESG
• A low-code/no-code platform to automate key processes.

Mastering CARB Refrigerant Regulations: Essential Guide for Facility Managers

Staying ahead of CARB refrigerant regulations is crucial for facility managers overseeing extensive portfolios. In this detailed guide, explore the intricacies of California’s refrigerant regulations

Facilio BlogManaswini Rao

As the EPA’s HFC phaseout regulations come into full effect, adopting software-led refrigerant tracking systems like Facilio is more critical than ever.

Why?
Becuase, it’s no longer just about compliance—it’s about becoming operationally efficient, reducing risks, and positioning your business as a sustainability leader in the industry.

Future-proof your refrigeration systems against any regulatory changes with Facilio

Transitioning from HFCs may be challenging, but it could well be a blessing in disguise for companies with a will to innovate, improve profitability, and make a positive impact on the environment.

Switching to Facilio's refrigerant detection software now presents an opportunity for grocery and cold storage operators to reduce risks, improve profitability, minimize environmental impact, and demonstrate stewardship today instead of scrambling to meet new federal and state compliance requirements—without the headache.

Take King Kullen, one of America’s leading supermarket chains.

King Kullen deployed Facilio’s Connected Retail platform to transform its refrigeration compliance management—automating tracking, gaining real-time visibility, and ensuring seamless EPA compliance. With proactive alerts and data-driven insights, they stay ahead of risks while optimizing operations.

See how Facilio can help you future-proof your refrigeration systems and navigate the HFC phaseout with ease—just like King Kullen.

Get started now

Future-proof your refrigeration systems and seamlessly navigate the HFC phaseout with Facilio

BOOK MY DEMO NOW

Frequently asked questions

1. How can retail store managers handle the increased operational complexity of the EPA refrigerant phaseout across multiple sites?

By developing a detailed roadmap that specifies timelines, tasks, and responsibilities for all their sites using a centralized management software like Facilio. Also, include a training plan for maintenance staff and technicians and consider partnering with HVAC experts who can provide guidance on smooth transition and best practices.

2. What are the key challenges for retail store managers in ensuring compliance with the EPA's phaseout schedule in large or multi-site locations?

Coordinating the phaseout and ensuring compliance across multiple locations with different operational needs are some of the key challenges for retail store managers. Also, having different refrigeration systems is a complication that requires meticulous monitoring, clear communication, and consistent procedures.

3. How can retail managers effectively coordinate refrigerant phaseout procedures across multiple locations without disrupting daily operations?

By implementing changes in phases and scheduling changes during non-peak hours, retail managers can reduce disruptions in daily operations. Clear communication with staff and site managers and creating contingency plans is also important to streamline the phaseout process without disruption.

4. What are the potential cost implications of the EPA refrigerant phaseout for retail store managers overseeing large or multiple sites?

Investing in new equipment and refrigerants and training the staff for multi-site refrigeration optimization are potential initial costs that retail store managers need to manage. An initial maintenance cost due to new systems may also generate additional spending. However, the phaseout is aimed at generating savings in the long run and reducing energy consumption.

5. What strategies can retail store managers implement to manage refrigerant supplies and equipment upgrades efficiently across diverse store locations?

A centralized inventory system for managing refrigerant supplies and equipment should be one of the top priorities for store managers. This will help manage bulk purchases and reduce costs. The centralized system will also help with regular refrigeration monitoring and equipment condition. For example, Facilio offers remote hardware monitoring and leak detection across locations which will reduce a lot of manual workload.