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New Refrigerant Mandates and Their Impact on the Restoration Industry

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The HVAC and restoration industries are on the cusp of a significant transformation, driven by new government mandates aimed at phasing out refrigerants with high Global Warming Potential (GWP) 1. These mandates, spurred by growing concerns about climate change and environmental sustainability, will have far-reaching consequences for restoration professionals, impacting equipment choices, operational procedures, and documentation practices. This report delves into the details of these new mandates, their implications for the restoration industry, and the potential for adopting more environmentally friendly and technologically advanced equipment.

New Mandates and Regulations for Refrigerants

Starting January 1, 2025, the Environmental Protection Agency (EPA) is enforcing new regulations that restrict the use of certain refrigerants in HVAC systems and dehumidifiers due to their environmental impact 2. This means that some older refrigerants, often called high-global warming potential (GWP) refrigerants, will be phased out. The primary new refrigerants being adopted in 2025 are R-454B and R-32 2. These refrigerants are designed to be more environmentally friendly with lower Global Warming Potentials (GWPs) compared to older refrigerants like R-410A 2. R-454B is a popular choice for residential and light commercial HVAC systems, offering good energy efficiency and a lower environmental impact 2. R-32 is often used in smaller systems like mini-split air conditioners and has a lower GWP than R-410A but requires specific handling and installation procedures due to its flammability 2.

These changes are driven by the American Innovation and Manufacturing Act of 2020, which aims to phase down the use of existing classes of refrigerants and establish new requirements for those used in air conditioners and heat pumps 4. The new class of refrigerants has a lower global warming potential than current ones 4.

It is important to note that companies like LG Electronics are requesting variances to continue using R-410A in dehumidifiers until the EPA SNAP rules allow for R-32 refrigerant and LG Electronics can develop a dehumidifier with R32 refrigerant 5. This highlights the challenges manufacturers face in transitioning to the new refrigerants and the potential for temporary exceptions to ensure the continued availability of essential equipment.

Impact on the Restoration Industry

The new refrigerant mandates will significantly impact the restoration industry in several ways:

  • Increased Costs: New HVAC systems using the new refrigerants are expected to be more expensive due to added safety measures for handling their mildly flammable properties 6. This could lead to higher upfront costs for restoration companies investing in new equipment. In fact, new HVAC equipment prices could increase by up to 30% due to the mandate 7. This substantial increase underscores the need for careful planning and budgeting when considering new equipment purchases.
  • Training and Certification: Technicians will need to undergo training and obtain certifications to handle and service equipment using the new refrigerants safely. This will require an investment in training programs and potentially impact labor costs. Restoration companies should proactively seek out training opportunities for their technicians to ensure they are prepared for the transition and can safely handle the new refrigerants.
  • Maintenance and Repair: Maintaining older systems could become increasingly costly and impractical as supplies of older refrigerants dwindle 8. Retrofitting current systems to use low-GWP refrigerants may be an option, though it may not be feasible for all equipment due to compatibility issues 8. Restoration companies will need to carefully evaluate the costs and benefits of maintaining older systems versus investing in new equipment.
  • Recordkeeping: The new regulations impose updated maintenance and recordkeeping requirements to ensure proper refrigerant management 9. Technicians will need to recover any refrigerants released during system maintenance and verify that no new leaks have occurred after the repair is complete 9. Detailed logs of refrigerant use, storage, and disposal will be required to ensure proper tracking of refrigerant inventory and compliance with EPA rules 10. This increased emphasis on recordkeeping highlights the need for robust systems and procedures to track refrigerant use and ensure compliance.
  • Leak Repair Provisions: The new regulations also include strict leak repair provisions 9. Owners and operators of refrigeration equipment are required to promptly repair leaks in equipment when the leak rate exceeds a certain threshold, as established by the EPA 9. This emphasizes the importance of proactive leak detection and repair to minimize refrigerant loss and environmental impact.
  • Equipment Availability: The transition to new refrigerants and parts may cause disruptions to availability, leading to delays and shortages 7. This could impact the ability of restoration companies to respond quickly to emergencies and complete projects on time. Careful planning and inventory management will be crucial to mitigate potential supply chain disruptions.

Cost-Benefit Analysis: While the transition to new refrigerants will involve increased upfront costs, it is important to consider the long-term cost benefits. The new refrigerants are generally more energy-efficient, which can lead to reduced energy consumption and lower operating costs 2. Additionally, proactive maintenance and leak repair can help extend the lifespan of equipment, further reducing costs in the long run 12.

Servicing Existing Systems

It is important to clarify that existing HVAC systems are not subject to the new regulations and can continue to be used 4. These systems can still be serviced with existing refrigerants, although the supply of these refrigerants may dwindle over time as production decreases 4. Restoration companies can continue to use and maintain their existing equipment without immediate replacement, but they should be aware of the potential for future challenges in obtaining older refrigerants.

Refrigerant Reclamation Program

The EPA has also established a new Emission Reduction and Reclamation (ER&R) Program 13. This program aims to reduce HFC emissions and create a new reclamation program to promote the recovery, recycling, and reuse of refrigerants. This initiative further emphasizes the importance of responsible refrigerant management and provides a framework for minimizing waste and environmental impact.

In line with the ER&R Program, updated requirements for refrigerant detection systems came into effect on January 1, 2024 14. These requirements mandate the use of leak detection systems in household electrical heat pumps, air conditioners, and dehumidifiers exceeding a prescribed refrigerant charge limit 14. These systems must include sensors and control logic electronics that activate the evaporator fan to quickly disperse and dilute refrigerant in the event of a leak, preventing the formation of dangerous concentrations 14.

Changes in Gas Refrigerants

The phase-out of R-410A refrigerant in residential HVAC systems is already underway, but it will accelerate significantly starting January 1st, 2025 7. While new systems will primarily use the new refrigerants, existing systems can still be serviced and repaired. To reduce global warming, new R-410A systems will be unavailable, but existing ones can still be maintained. The transition to lower GWP refrigerants, like R-454B and R-32, will become standard 15. These refrigerants meet the new environmental requirements and offer lower toxicity ratings compared to older refrigerants 15.

It is important to note that the new A2L refrigerants, including R-454B and R-32, are mildly flammable and require specific handling procedures 4. This includes proper training, safety precautions, and adherence to updated regulations and standards. When evaluating new refrigerants, it is crucial to consider their toxicity and flammability properties 17. Extensive testing and assessment are necessary to ensure the safe handling and use of these refrigerants.

Switching to Environmentally Friendly and ESG-Compliant Equipment

With the changes in gas refrigerants, the restoration industry has an opportunity to embrace more environmentally friendly and ESG-compliant equipment. This includes:

  • Refrigerant Dehumidifiers: Legend Brands was ahead of the game when Washington State banned the sale of dehumidifiers using 410A refrigerant on January 1, 2024 18. By Summer 2023 Dri-Eaz dehumidifiers were already using R32, a proven low global warming potential (GWP) refrigerant, well ahead of state deadlines requiring the use of refrigerants below 750 GWP 18. These dehumidifiers operate by drawing room air through an evaporator coil cooled to around 0°C, where water vapor condenses and drips into a storage tank or forms frost 19. The drier air then passes through a warm condenser coil, where it is heated and exhausted from the dehumidifier 19.
  • Natural Refrigerants: Several environmentally friendly refrigerants can be used in place of CFCs and HFCs 20. These include hydro-fluoro olefins (HFOs), carbon dioxide (CO₂), hydrocarbons (HCs), and ammonia (NH3) 17. Natural refrigerants have drawn much interest as safe substitutes for conventional refrigerants 17. They stand out for their minimal potential for global warming, non-ozone-depleting qualities, and low or no environmental effect 17.

Environmental Benefits: The transition to environmentally friendly refrigerants offers significant environmental benefits beyond just lowering GWP. By reducing greenhouse gas emissions, these refrigerants contribute to mitigating climate change and improving air quality 11. This shift aligns with the growing global focus on sustainability and demonstrates a commitment to environmental responsibility.

Competitive Advantage: Adopting ESG-compliant equipment and practices can provide a competitive advantage for restoration companies. By showcasing their commitment to sustainability, restoration companies can attract environmentally conscious customers and enhance their brand reputation. This can be a key differentiator in a competitive market and contribute to long-term business success.

Equipment with Remote Monitoring and IoT Capabilities

The restoration industry can benefit significantly from adopting equipment with remote monitoring and IoT capabilities. This technology can help:

  • Preventative Maintenance: Remote monitoring can help identify potential issues before they become major problems, allowing for proactive maintenance and minimizing downtime 12. This can help restoration companies avoid costly repairs and ensure that equipment is always operating at peak efficiency. For example, Rheem's EcoNet® enabled appliances use smart sensors to constantly check for potential issues and alert users and service providers through the EcoNet Mobile App 22. These sensors can monitor various parameters, including filter status, evaporator coil condition, voltage, current usage, refrigerant line temperature, and refrigerant pressures, providing early warnings of potential problems 22.
  • Improved Efficiency: Remote monitoring can improve energy efficiency by allowing real-time tracking and optimization of HVAC monitoring systems 12. This can help reduce energy consumption and operating costs. Systems like Sensaphone's Sentinel collect data and push it to the cloud for alarming and reporting, allowing users to view the status of multiple locations and manage multiple devices from one login 23. This centralized monitoring and control can lead to significant energy savings and operational efficiency.
  • Enhanced Documentation: IoT-enabled equipment can automatically collect and store data, providing valuable documentation for restoration projects 24. This can help improve accuracy, reduce paperwork, and streamline reporting processes. Monnit's ALTA Duct Temperature Sensor, for instance, can be used for temporary testing or full-time system monitoring, providing detailed reports on temperature fluctuations within the HVAC system 25.

Smart Plug Integration for Dehumidifiers: Smart plugs can be used to control dehumidifiers and integrate them with home automation systems 26. This allows for remote control and automation of dehumidifier operation based on humidity levels or other factors. When using smart plugs, it is important to ensure that the dehumidifier can turn on automatically when power is provided to avoid the need for manual intervention 26.

Placement of Humidity Sensors: For accurate readings and control, humidity sensors should be placed away from the dehumidifier 26. This ensures that the sensor is measuring the overall humidity of the space rather than the localized humidity near the dehumidifier, which can be artificially lower.

DIY IoT Dehumidifier Control: DIY enthusiasts are creating IoT-based humidity control systems using platforms like Arduino and Raspberry Pi 27. These systems can monitor both outside temperature and inside humidity, determine the ideal inside humidity, and control a humidifier to reach the desired humidity level 27. This demonstrates the growing accessibility and potential of IoT technology for customized environmental control.

Timeline for Implementation

The EPA has set a phased approach for the transition to new refrigerants 28. This schedule is designed to ensure a smooth transition for the HVAC industry and minimize disruption for users 28. The table below summarizes the key milestones in this transition:





Year

GWP Limit

2025

2,200

2028

1,500

2030

750

Residential and light commercial air conditioners and heat pumps manufactured after January 1, 2025, must use the new refrigerants 4. Equipment manufactured before this date has a one-year grace period to be installed, with a deadline of January 1, 2026 4. For products that do not require field assembly, such as window air conditioning units, the final sale date is January 1, 2028 4.

Government Incentives and Support Programs

While specific incentives for refrigerants have not yet been funded by the legislature, research funding may be available through a variety of sources 29. This includes CARB's research program, the Electric Program Investment Charge (EPIC) program offered by the California Energy Commission (CEC), and a variety of federal programs such as those offered by the U.S. Department of Energy 29. Utilities also offer approximately one billion dollars in energy efficiency incentives each year in California 29. The energy sector is developing opportunities for refrigerant technology which are intended to fund not only energy efficiency gains, but also any reduction in greenhouse gas emissions due to refrigerant changes 29.

Furthermore, the Inflation Reduction Act provides rebates and tax credits for homeowners who upgrade to energy-efficient systems 3. These incentives can help offset the increased costs associated with new HVAC systems and encourage the adoption of more sustainable technologies.

Conclusion

The new refrigerant mandates present both challenges and opportunities for the restoration industry. While increased costs, training requirements, and potential supply chain disruptions are unavoidable, the transition to more environmentally friendly and technologically advanced equipment can lead to long-term benefits. These benefits include improved energy efficiency, reduced environmental impact, enhanced documentation capabilities, and a potential competitive advantage in the market.

To prepare for this transition, restoration companies should take the following steps:

  • Invest in training and certification for technicians to handle new refrigerants safely.
  • Research and evaluate new equipment options, considering factors such as efficiency, cost, and compatibility with existing systems.
  • Develop a plan for managing refrigerant use, storage, and disposal in compliance with the new regulations.
  • Explore available government incentives and support programs to offset costs and facilitate the transition.
  • Embrace remote monitoring and IoT technologies to improve efficiency, prevent maintenance issues, and enhance documentation.

By proactively adapting to the new regulations and embracing sustainable technologies, restoration professionals can not only comply with the mandates but also position themselves for continued success in a changing regulatory landscape. The long-term benefits of environmentally friendly and technologically advanced practices will contribute to a more sustainable future for the restoration industry and the planet.

Works cited

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