EPA Reconsiders Refrigerant Transition | Contracting Business

WASHINGTON — U.S. Environmental Protection Agency (EPA) Administrator Lee Zeldin announced the agency will undertake 31 historic actions in what he called, “the greatest and most consequential day of deregulation in U.S. history.”

According to the EPA, these historic actions will roll back trillions in regulatory costs and hidden “taxes” on U.S. families, making it more affordable for Americans to purchase cars, heat homes, and operate businesses.

One of these actions of particular note for the HVACR industry was the Refrigerant Transition Rule, which forces companies to use particular technologies for refrigerant systems that raise the cost of food at the grocery store.  

“From the campaign trail to day one and beyond, President Trump has delivered on his promise to unleash American energy and lower the cost of living for Americans. EPA’s regulations are a large part of this equation. In reconsidering technology rules related to refrigeration systems, we can prioritize protecting the environment with a commonsense approach,” Zeldin said in a press release.  

In addition to grocery stores, this rule has also harmed semiconductor manufacturing, which is key to making America the AI capital of the world — one of the five pillars in Administrator Zeldin’s “Powering the Great American Comeback” initiative, the release noted.

Both FMI — The Food Industry Association and the National Grocers Association separately praised the EPA’s deregulation announcement.

“Reducing unnecessary regulations, particularly those that impose significant financial and administrative burdens, is a crucial step toward leveling the playing field for independent grocers who are less equipped to deal with costly new compliance requirements,” said NGA Chief Government Relations Officer Chris Jones in a news release. “With the Trump Administration’s dedication to cutting through red tape, the EPA’s actions can now free up resources for independent grocers to focus on improving store operations, expanding local job opportunities, and keeping grocery prices affordable for American families.”

FMI President and CEO Leslie Sarasin issued the following statement: “FMI is pleased the EPA has agreed to reconsider the Technology Transitions Rule to allow EPA time to review the incredible burdens placed on the food industry and its unrealistically tight implementation timelines. We thank EPA Administrator Lee Zeldin and President Trump for recognizing the need to reduce the regulatory burden on businesses and the cost of living for consumers. A thorough evaluation of the rule in its current form is critical to preventing grocery stores across the country from paying billions in unnecessary refrigeration premiums that would have further driven up food prices. A balanced approach will provide retail stores with much-needed assurance given the implementation challenges due to lack of available technology, installers and other factors.”

The biggest thing to note is these deregulatory actions promoted by the EPA have not yet changed any regulations that affect the HVACR industry. 

According to Alex Ayers, vice president of government affairs for HARDI, this “reconsideration” of the Refrigerant Transition Rule is really just the next step in the regulatory process after HARDI joined AHRI and the Alliance for Responsible Atmospheric Policy in submitting a Petition for Reconsideration — a formal request to change a specific part of a previous regulatory action. The industry petition asked the EPA to limit future manufacturing of outdoor condensing units to prevent future market manipulation through imports of R-410A outdoor units far into the future.

“In June 2024, EPA granted the petition, meaning it would open a future regulatory action on this issue, and yesterday’s announcement is the next step in this process of closing this loophole,” Ayers said in a blog post.

Editor’s Note: We will continue to update this story as new information becomes available.