The U.S. Environmental Protection Agency (EPA) has announced a final rule designed to enhance the management, recycling and reuse of climate-damaging refrigerants as part of its efforts to phase down the use of HFCs under the American Innovation and Manufacturing (AIM) Act.
Central to the rule is the creation of the Emissions Reduction and Reclamation (ER&R) program, which aims to reduce the release of HFCs and their substitutes throughout the lifecycle of refrigerant-containing equipment. For HVAC&R equipment, this includes a comprehensive set of requirements targeting automatic leak detection, leak repairs and the use of reclaimed HFCs for maintenance and servicing. These provisions vary depending on the type of appliance and the refrigerant charge size.
“This rule is the final foundational step in our strategy to address HFCs, building on programs to reduce HFC production and imports, and to guide technologies to safer alternatives,” said EPA Administrator Michael Regan. “Our HFC programs embody the Biden-Harris Administration’s strong belief that climate action opens up new opportunities for American technology and innovation.”
According to EPA estimates, the rule is expected to prevent the release of 120 million metric tons of CO2 equivalent (CO2e) from 2026 to 2050, generating at least $6.9 billion (€6.2 billion) in net incremental benefits in the process.
The “Allowance Allocation” and “Technology Transitions” rules, the two other HFC rules made by the EPA under the AIM Act, were finalized in 2023.
“This rule is the final foundational step in our strategy to address HFCs, building on programs to reduce HFC production and imports, and to guide technologies to safer alternatives.”
Michael Regan, EPA Administrator
Leak reduction measures
Effective January 1, 2026, the rule mandates that appliances containing 15lb (6.8kg) or more of HFCs or substitutes with a GWP of 53 or higher must comply with stringent leak repair requirements. These include establishing leak rate thresholds, repair timelines and proper recordkeeping practices.
The EPA has set annual leak rate thresholds for the following sectors:
- Industrial process refrigeration: 30%
- Commercial refrigeration: 20%
- Comfort cooling, refrigerated transport and other appliances not covered: 10%
Additionally, starting in 2026, all new commercial and industrial refrigeration installations with 1,500lb (680kg) or more of HFCs or substitutes with a GWP of 53 or higher must install automatic leak detection (ALD) systems. Existing refrigeration equipment will need to meet these requirements by 2027.
The EPA estimates that these leak repair and ALD provisions will save operators around $19.5 million (€17.5 million) in refrigerant recharging costs in 2026 alone.
Axiom Cloud, a California-based software provider, is among those ready to help end users remain in compliance, having secured $5 million (€4.5 million) earlier this year to advance its AI-powered leak detection technology.
“[This] 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 of the Environmental Investigation Agency (EIA US), in a statement.
Promoting reuse
The rule also introduces a new standard that limits the use of virgin HFCs in refrigerants classified as reclaimed to 15%. This requirement aims to support the growing industry of refrigerant recovery and reclamation while reducing emissions from new production.
Additionally, from 2029, reclaimed refrigerants must be used when servicing or repairing equipment in supermarkets, refrigerated transport and commercial ice makers that use HFCs.
To further bolster these efforts, in May the EPA awarded $15 million (€13.48 million) in grants under the Inflation Reduction Act (IRA) to support innovation in HFC reclamation and destruction technologies.
The ER&R program also includes provisions to remove HFCs from disposable cylinders before disposal, along with enhanced requirements for recordkeeping, reporting and labeling. Provisions for managing refrigerants in fire suppression equipment are also included, including a mandate that new fire suppression equipment use recycled HFCs where non-recycled HFCs are being used, starting in 2026.
Additionally, the rule introduces alternative standards under the Resource Conservation and Recovery Act (RCRA) for the safe recycling of ignitable spent refrigerants.
