For those in the commercial refrigeration world, the changes coming down the line from the Environmental Protection Agency (EPA) are something you need to know. The latest changes will affect this niche for decades, and here at Fry, our team has kept up with them and is ready to work with you to future-proof your investments and future capital expenditures. In this blog, we are going to look at these changes and what they might mean for you, your fridges and freezers in the coming years.
What has changed?
The EPA has made a regulatory change that will affect refrigerant decisions for the next several years. In May, the agency revised its Technology Transitions Rule, updated the global warming potential (GWP) limits, and confirmed it is delaying the coming-into-force timelines until 2032. The new compliance requirements are as follows:
Retail Food and Supermarket Racks
For retail food and supermarket racks (new equipment)
As of January 1, 2027, there is a 1,400 GWP limit.
As of January 1, 2032, the limit is 150 to 300 GWP.
This specific change will delay the 150-300 GWP limit by five years and allow for HFCs such as R-448A/449A to be used in the interim. The change also allows supermarkets to increase cooling capacity by up to 15% without the addition counting as a new system installation.
Retail Food and Condensing Units
For retail food and condensing units, the EPA made a similar adjustment.
As of January 1, 2027, there is a 1,400 GWP limit.
As of January 1, 2032, the limit is 150 to 300 GWP.
These specific changes give some extra time for retailers to make the switch to more efficient condensing units and allow for the use of HFCs such as R-448A/449A in the meantime.
Cold Storage Warehouse Equipment
For those in the cold storage industry, the changes will also alleviate some pressure.
As of January 1, 2027, there is a limit of 700 GWP.
As of January 1, 2032, the limit will be 150 to 300 GWP.
This delay in coming into force will allow commercial cold storage units to still use HFCs such as R-513A during this delayed period.
What does this mean?
For commercial refrigeration and freezer companies, the change is a bit of a relief, as many have not yet begun transitioning to the new lower-GWP refrigeration equipment. This means that these retailers will still be able to use their legacy HFC-based equipment for the next five to six years.
However, this is a short-term cost saving, as the American Innovation and Manufacturing Act is reducing HFC supplies by 50% as of 2029. This means those who still need legacy HFC coolants will face higher prices as manufacturers scale down ahead of the 2029 changes and scarcity becomes a problem. The US is far behind the rest of the Western world with these changes, and we can look to other jurisdictions that have experienced the same wind-down of HFC refrigerants for what might happen here in Ohio and Michigan. In Europe, HFC refrigerant prices rose 1000% when the EU began scaling down manufacturing ahead of a move away from these highly toxic refrigerants, and a similar pricing trend could happen here.
Challenges you may face during the transition period
There are a few challenges that you should be prepared to face in terms of the next few years if you are still running one of the older HFC systems. First and foremost, you will need to prepare for higher annual service costs to run your legacy fridges and freezers. Refrigerant costs are rising, and you may also have concerns about sourcing R-448A/449A refrigerant in your specific location. As more companies make the switch, demand may start to lessen, and suppliers may also start to change what they carry. You will also need to develop best practices for leak detection and recovery, as HFC supplies will be at a premium and most legacy units leak around 20 percent annually.
How we can help
In terms of capital planning and what you should do, talking to your local commercial refrigeration experts is going to be your first step. We have worked with countless food service, retail, and cold refrigeration companies to help them transition ahead of this change, and our connections to great, affordable CO2, R-290, or A2L systems can help you make the switch before the price hikes we're likely to see. These new systems aren't just a way to help the environment; they are proven, viable, compression-driven systems that are self-contained and centralized, making cooling and freezing a breeze. Whether you are looking to upgrade your drink displays, end units, or commercial cooling in a warehouse or cold room, we have next-generation technology that makes the switch seamless and future-proofs your capital investments.
