CALIFORNIA REGULATORY NOTICE REGISTER 2020, VOLUME NUMBER 43-Z1407
report is entitled: Proposed Amendments to Enhanced 
Vapor Recovery Regulations for Gasoline Dispensing 
Facilities.
Copies of the I S O R and the full text of the proposed 
regulatory language, in underline and strikeout for -
mat to allow for comparison with the existing regula-tions, may be accessed on CARB’s website listed be -
low, or may be obtained from the Public Information Office, California Air Resources Board, 1001 I Street, Visitors and Environmental Services Center, First Floor, Sacramento, California, 95814, on October 20, 2020. Because of current travel, facility, and staffing restrictions, the California Air Resources Board’s of -
fices may have limited public access. Please contact Chris Hopkins, Regulations Coordinator, at chris. hop-
kins@arb.ca.gov  or (916) 445–9564 if you need physi -
cal copies of the documents.
Further, the agency representative to whom non -
substantive inquiries concerning the proposed ad -
ministrative action may be directed is Chris Hopkins, Regulations Coordinator, (916) 445–9564. The Board staff has compiled a record for this rulemaking ac -
tion, which includes all the information upon which the proposal is based. This material is available for in -
spection upon request to the contact persons.
HEARING PROCEDURES
The public hearing will be conducted in accordance 
with the California Administrative Procedure Act, Government Code, title 2, division 3, part 1, chapter 3.5 (commencing with section 11340).
Following the public hearing, the Board may take 
action to approve for adoption the regulatory language as originally proposed, or with non–substantial or grammatical modifications. The Board may also ap -
prove for adoption the proposed regulatory language 
with other modifications if the text as modified is suf -
ficiently related to the originally proposed text that the 
public was adequately placed on notice and that the regulatory language as modified could result from the proposed regulatory action. If this occurs, the full reg -
ulatory text, with the modifications clearly indicated, will be made available to the public, for written com -
ment, at least 15 days before final adoption.
The public may request a copy of the modified 
regulatory text from CARB’s Public Information Office, Air Resources Board, 1001 I Street, Visitors and Environmental Services Center, First Floor, Sacramento, California, 95814.
FINAL STATEMENT OF 
REASONS AVAILABILITY
Upon its completion, the Final Statement of Reasons 
(F S O R) will be available and copies may be requested from the agency contact persons in this notice, or may be accessed on CARB’s website listed below.
INTERNET ACCESS
This notice, the I S O R and all subsequent regulato -
ry documents, including the F S O R, when completed, are available on CARB’s website for this rulemaking at https://ww2.arb.ca.gov/rulemaking/2020/evr2020
TITLE 17.  C ALIFORNIA AIR 
RESOURCES BOARD
NOTICE OF PUBLIC HEARING TO 
CONSIDER PROPOSED AMENDMENTS TO 
THE PROHIBITIONS ON USE OF CERTAIN 
HYDROFLUOROCARBONS IN STATIONARY 
REFRIGERATION, CHILLERS, AEROSOLS–
PROPELLANTS, AND FOAM END–USES 
REGULATION
The California Air Resources Board (CARB or 
Board) will conduct a public hearing at the time noted below to consider approving for adoption the Proposed Amendments to the Prohibitions on Use of Certain 
Hydrofluorocarbons in Stationary Refrigeration, 
Chillers, Aerosols–Propellants and Foam End–Uses (Title 17, California Code of Regulations, section 95371 et seq.). The Proposed Amendments are part of the effort by CARB to reduce emissions of hydrofluo -
rocarbons (H F C), a class of highly potent greenhouse gases, as required by Senate Bill 1383.
1
DATE: December 10, 2020 TIME: 9:00 a.m.
Please see the Public Agenda which will be post -
ed ten days before the December 10, 2020, Board Meeting for any appropriate direction regarding a pos -
sible remote–only Board Meeting. If the meeting is to be held in person, it will be held at the California Air Resources Board, Byron Sher Auditorium, 1001 I Street, Sacramento, California 95814.
This item may be considered at a two–day meet -
ing of the Board, which will commence at 9:00 a.m., December 10, 2020, and may continue at 8:30 a.m., 
December 11, 2020. Please consult the agenda for 
the meeting, which will be available at least ten days before December 10, 2020, to determine the day on which this item will be considered.
1 S B 1383 (Lara, Stat. 2016, Ch. 395); Health & Saf. Code 
§ 39730.5.CALIFORNIA REGULATORY NOTICE REGISTER 2020, VOLUME NUMBER 43-Z1408WRITTEN COMMENT PERIOD AND 
SUBMITTAL OF COMMENTS
In accordance with the Administrative Procedure 
Act, interested members of the public may present 
comments orally or in writing at the hearing and may provide comments by postal mail or by electronic sub -
mittal before the hearing. The public comment period for this regulatory action will begin on October 23, 2020. Written comments not physically submitted at the hearing must be submitted on or after October 23, 2020, and received no later than December 7, 2020. 
Comments submitted outside that comment period 
are considered untimely. CARB may, but is not re -
quired to, respond to untimely comments, including 
those raising significant environmental issues. CARB requests that when possible, written and email state -
ments be filed at least ten days before the hearing to give CARB staff and Board members additional time to consider each comment. The Board also encourag -
es members of the public to bring to the attention of 
CARB staff in advance of the hearing any suggestions 
for modification of the proposed regulatory action. Comments submitted in advance of the hearing must be addressed to one of the following:
Postal mail: Clerks’ Office, California Air Resources Board 1001 I Street, Sacramento, California 95814 
Electronic submittal : https://www.arb.ca.gov/
lispub/comm/bclist.php
Please note that under the California Public Records 
Act (Gov. Code, § 6250 et seq.), your written and oral 
comments, attachments, and associated contact infor -
mation (e.g., your address, phone, email, etc.) become part of the public record and can be released to the public upon request.
Additionally, the Board requests but does not re -
quire that persons who submit written comments to the Board reference the title of the proposal in their comments to facilitate review.
AUTHORITY AND REFERENCE
This regulatory action is proposed under the au-
thority granted in California Health and Safety Code, sections 38510, 38598, 38560, 38562, 38566, 38580, 39600, 39601, 39730, 39730.5, 39734, and 41511. This action is proposed to implement and interpret, sections 38510, 38598, 38560, 38562, 38566, 38580, 39600, 39601, 39730, 39730.5, 39734, and 41511 of the Health 
and Safety Code.INFORMATIVE DIGEST OF PROPOSED 
ACTION AND POLICY STATEMENT 
OVERVIEW (GOV. CODE, § 11346.5, 
SUBD. (a)(3))
Sections Affected:
Proposed Amendments to California Code of 
Regulations, Title 17, Division 3, Chapter 1, Subchapter 
10 Climate Change, Article 4, sections 95371, 95372, 95373, 95374, 95375, 95376, and 95377.
Background and Effect of the Proposed Regulatory 
Action:
Hydrofluorocarbons (H F Cs) are among the most 
harmful greenhouse gases (G H G) emitted today. While they remain in the atmosphere for a much shorter time than carbon dioxide (C O
2), their rela -
tive climate forcing (how effectively they trap heat in the atmosphere) can be tens, hundreds or even thousands of times greater than C O
2. CARB iden -
tified the importance of H F C mitigation in the ear -
ly 2000s, and proposed several early action measures as part of a comprehensive, ongoing program to re -
duce G H G emissions in California. CARB adopted the Refrigerant Management Program
2 as one of the 
early action measures to address H F C refrigerant use.
Further recognizing the importance of reducing 
H F Cs, the Legislature enacted Senate Bill 1383 (S B 1383)
3 in 2016, requiring a 40 percent reduction of 
H F C emissions below 2013 levels by 2030. California took into account existing national H F C regulations and continued working to develop additional regu-latory efforts to reduce H F C emissions to meet this goal. Unfortunately, beginning in 2017 — the United 
States Environmental Protection Agency’s (U.S. 
E P A) key H F C prohibitions — Rules 20
4 and 21,5 un-
der the Significant New Alternatives Policy (SNAP) 
2 Management of High Global Warming Potential Refrigerants 
for Stationary Sources, Cal. Code Regs., tit. 17, § 95380 et seq. 
3 S B 1383 (Lara, Stat. 2016, Ch. 395); Health & Saf. Code 
§ 39730.5.  
4 40 C.F.R. Pt. 82, Subpt. G, App. U; 80 Fed. Reg. 42870–01 
(July 20, 2015); 81 Fed. Reg. 86778–01 (Dec. 1, 2016). 
5 4 0 C.F.R. Pt. 82, Subpt. G, App. V; 81 Fed. Reg. 86778–01 
(Dec. 1, 2016).CALIFORNIA REGULATORY NOTICE REGISTER 2020, VOLUME NUMBER 43-Z1409
Program,6 were partially vacated by the D.C. Circuit 
Court of Appeals.7 To prevent the harmful impacts of 
the litigation, in 2018, California incorporated both 
SNAP Rules 20 and 21 — first through adopting an H F C Regulation
8 and then the Legislature enacted 
the “California Cooling Act” or Senate Bill 1013 (S B 1013).
9 In 2019, CARB incorporated S B 1013’s stat -
utory provisions into its H F C Regulation to provide clarity to the regulated industry.
10 Despite these cur -
rent rules, CARB must undertake further actions to meet its statutory mandates for H F C reduction.
Summary of the Proposed Amendments:
CARB staff proposes amending the existing 
California H F C Regulation (hereinafter “Proposed 
Amendments”). A summary of the Proposed Amendments are as follows:
● N ew refrigeration systems containing more than 
50 pounds of refrigerant and used in newly con -
structed and fully remodeled facilities will be required to contain refrigerants with a global warming potential (G W P) less than 150, effective January 1, 2022. This includes the following end–uses: retail food refrigeration, industrial process 
refrigeration (I P R) (except chillers), cold storage, 
and ice rinks.
● C ompanies owning existing systems containing 
more than 50 pounds of refrigerant in retail food facilities will be required to meet a G W P–Based Company–wide standard —  either through a re -
duction in their company–wide weighted–aver -
age G W P to less than 1,400 G W P by 2030, or, in the alternative, reduce their Greenhouse Gas 
Emission Potential or G H Gp by 55 percent by 
2030. All non–retail food facilities installing new systems must meet the G W P limit of less than 1,500 or 2,200, depending on the end use.
● N ew air conditioning (AC) equipment used for 
both residential and non–residential purposes must use refrigerants with a G W P less than 750, effective January 1, 2023.
6 42 U.S.C. § 7671k; 40 C.F.R. Pt. 82, Subpt. G 
7 Mexichem Fluor, Inc. v. Environmental Protection Agency  
(D.C. Cir. 2017) 866 F. 3d 451 (Mexichem I) and Mexichem 
Fluor, Inc. v. Environmental Protection Agency  (D.C. Cir. 2019) 
Case No. 17–1024 (Mexichem II) (collectively the “ Mexichem 
decisions ”) 
8 Prohibitions on Use of Certain Hydrofluorocarbons in Station -
ary Refrigeration and Foam End–Uses, Cal. Code Regs., tit. 17, 
§§ 95371, et seq. 
9 S B 1013 (Lara, Stat. 2018, Ch. 375); Health & Saf. Code 
§ 39734. 
10 Prohibitions on Use of Certain Hydrofluorocarbons in Station -
ary Refrigeration, Chillers, Aerosols–Propellants, and Foam End Uses, Cal. Code Regs., tit. 17, §§ 95371, et seq.● A variance provision was added to address the 
issue of impossibility and force majeure events 
including the feasibility of the phase–in schedule.
● R ecordkeeping, reporting, registration, and la -
beling requirements were added as enforcement mechanisms. The existing disclosure statement was modified to reduce regulatory burden.
● N ew definitions were added and existing defini -
tions were modified to add clarity and align with U.S. E P A definitions.
● O ther grammatical and typographical errors 
were fixed and the numbering was reorganized for clarity and flow.
Summary of Potential Additional Compliance Pathway Under Consideration
While some A C manufacturers and stakeholders 
have conveyed support for the 2023 compliance date, several stakeholders have requested that CARB delay the effective date for the 750 G W P limit for new A C equipment from January 1, 2023 to January 1, 2025. The reasons put forth for this request include: (1) al -
lowing additional time for A C manufacturers to tran -
sition refrigerants, (2) the A1 alternative (R–466A) 
may require more time to be ready as a substitute re -
frigerant, and (3) the California Building Standards 
Code may not have the necessary updates to allow A2L refrigerants to be used in 2023. These stakehold -
ers have provided ideas for incorporating an addition -
al compliance pathway in addition to the 2023 compli -
ance pathway.
 A C manufacturers and other stakeholders have pro -
posed achieving needed emissions reductions through use of refrigerant reclaim in new equipment, servicing existing equipment, refrigerant destruction, as well as potential crediting system based on type of refriger -
ant used to account for charge and G W P reduction. For a complete description of their proposals, please 
see Appendix D to the Initial Statement of Reasons 
(I S O R), which is incorporated herein. Any revisions may be incorporate through a 15–day notice and will be an outgrowth of these proposals.
In response to these proposals, CARB staff is con -
sidering incorporating a compliance pathway as part 
of subsequent proposed 15–day changes. CARB staff  
intends to keep the 2023 date for those that can com -
ply with that date. An additional compliance pathway for ACs manufacturers and other regulated entities could include the allowance of a two–year delay or temporary exemption from the 750 G W P requirement for A C manufacturers if the manufacturer is able to offset the C O
2 equivalent amount of refrigerant equal 
to the initial refrigerant charge size through the pur -
chase and use of reclaimed refrigerant in equipment placed on the market in California during the delay. If reclaimed refrigerant is not used in equipment during CALIFORNIA REGULATORY NOTICE REGISTER 2020, VOLUME NUMBER 43-Z1410the delay then manufacturers would need to offset the 
initial charge plus the anticipated additional service 
gas for the lifetime of the exempted equipment within 
five years. In addition, manufacturers would need to 
show the following:
● Contractual agreements to purchase reclaimed 
refrigerants for use or distribution with reclaim -
ers or distributors.
● All activities related to the exemption or delay 
are subject to verification and reporting. CARB 
staff is considering this verification being done 
through a third–party audit, reporting on an an -
nual basis to CARB, or annual self–certification 
to CARB.
● Non–compliance is subject to strict liability pen -
alties equivalent to the California cost of carbon 
estimates per C O2e offset not met.
CARB is evaluating the feasibility of these addition -
al compliance pathways as well as a hybrid of them, 
from the standpoint of enforcement, implementation, 
and emissions benefits and may incorporate changes 
through a 15–day notice. CARB may consider needs 
for collecting research and development information 
for specialized systems. CARB may also consider oth -
er changes to the sections affected during the course of 
this rulemaking process. Any changes to the propos -
al would be presented to the Board for consideration 
during the Board Hearing scheduled for December 
10–11, 2020.
Objectives and Benefits of the Proposed 
Amendments:
There are three main objectives of the Proposed 
Amendments: (1) curb the emissions of H F Cs from 
the largest end–use sectors, namely A C and refriger -
ation end–uses; (2) provide additional clarity and con -
venience to the regulated industry; and (3) support 
growth in technologies that lower H F C emissions.
The primary benefits of the Proposed Amendments 
are emissions reductions that will help California meet 
its H F C reduction mandates. It is anticipated that the 
Proposed Amendments will reduce H F C emissions 
from the refrigeration and A C sectors by nearly 40 
and 50 percent below baseline by 2040, respectively. 
Cumulatively, from 2022 through 2040, the Proposed 
Amendments are expected to yield 72 million met -
ric tons of carbon dioxide equivalent (M M T C O2e) 
in G H G reductions. Using 20–year G W P values, 
the Proposed Amendments are expected to yield cu -
mulative G H G emissions reductions of nearly 140 
M M T C O2e by 2040. The total benefits in avoid -
ed harms range between $1.7 billion to $7.2 billion 
through 2040, depending on the discount rate. These 
numbers are underestimated because of the lack of of -
ficial social costs of H F Cs. Reducing climate change protects the environment as well as public health and 
safety.
While direct health benefits cannot be quantified 
using present methodologies, there is mounting evi -
dence that climate change can impact local air quali -
ty. For example, atmospheric warming can lead to an 
increase in the formation of ground–level ozone and 
photochemical smog. Thus, there are co–benefits of 
controlling global warming by removing G H G emis -
sions. The direct impacts of climate change are be -
coming clearer and have a disproportionate impact 
on the sensitive age groups as well as disadvantaged 
communities. Wildfires are becoming more frequent 
and severe and in addition to the death and injury from 
the fires, millions are exposed to harmful smoke. The 
number of extreme heat days is increasing. The high -
est ever number of extreme heat days was recorded in 
2019. Illnesses and deaths from extreme heat events 
will likely increase, causing heatstroke and other 
heat–related illnesses, particularly for vulnerable in -
dividuals such as the elderly and those who are more 
isolated.
Millions of residents across the state live in disad -
vantaged communities that experience a combination 
of increased vulnerability to adverse health effects 
from air pollution and increased exposure to pollu -
tion sources. These communities are also extremely 
vulnerable to the health effects of climate change. For 
these residents, actions to reduce G H G pollution is 
even more critical. Health, equity, and resiliency are 
integrally related. Those individuals and communities 
that are at a social and financial disadvantage are less 
able to deal with stresses caused by climate change 
such as food and water scarcity, high temperatures, 
and wildfires, and they are more likely to suffer phys -
ical and psychological harm.
In addition, some refrigerated facilities that will 
switch to using low–G W P alternative refrigerants are 
expected to experience savings related to increased 
energy efficiency, particularly for the cold storage 
and industrial process refrigeration (I P R) sectors. 
Additionally, supermarkets and grocery stores retro -
fitting to lower–G W P refrigerants are also expected 
to benefit from improved energy efficiency of systems 
undergoing the retrofits. These benefits are discussed 
in detail in the Initial Statement of Reasons (I S O R), 
Section VIII.
Comparable Federal Regulations:
Currently, there are no federal regulations that lim -
it the global warming impacts of refrigerants used in 
stationary air conditioning. Some prohibitions for the 
stationary refrigeration sector were present in U.S. 
E P A ’s SNAP Rules 20 (40 CFR Part 82, Subpart G, 
Appendix U) and 21 (40 CFR Part 82, Subpart G, 
Appendix V). However, these were partially vacated 
as discussed above. Currently there are proposed na -CALIFORNIA REGULATORY NOTICE REGISTER 2020, VOLUME NUMBER 43-Z1411
tional bills that would phasedown H F Cs nationwide. 
The proposals are S.2754 (American Innovation and 
Manufacturing Act of 2019); HR.5544 (American 
Innovation and Manufacturing Leadership Act of 
2020); and more recent proposals such as H.R.4447 
(Clean Economy Jobs and Innovation Act), amongst 
others. These proposals require a phasedown in con -
sumption and production of H F Cs. However, as of this 
time, these are just proposals.
Evaluation of Inconsistency or Incompatibility with 
Existing State Regulations (Gov. Code, § 11346.5, 
subd. (a)(3)(D)):
During the process of developing the proposed regu -
latory action, CARB conducted a search of any similar 
regulations on this topic and concluded the Proposed 
Amendments are neither inconsistent nor incompati -
ble with existing State regulations.
DISCLOSURES REGARDING THE  
PROPOSED REGULATION
Fiscal Impact/Local Mandate Determination 
Regarding the Proposed Action (Gov. Code, 
§ 11346.5, subds. (a)(5)&(6)):
The determinations of the Board’s Executive Officer 
concerning the costs or savings incurred by public 
agencies and private persons and businesses in reason -
able compliance with the proposed regulatory action 
are presented below.
Under Government Code sections 11346.5, sub -
division (a)(5) and 11346.5, subdivision (a)(6), the 
Executive Officer has determined that the proposed 
regulatory action would create costs or savings to any 
State agency, would not create costs or savings in fed -
eral funding to the State, would not create costs or 
mandate to any local agency or school district, or oth -
er nondiscretionary cost or savings to State or local 
agencies.
Cost to any Local Agency or School District Requiring 
Reimbursement Under Section 17500 et seq.:
None. Because the regulatory requirements ap -
ply equally to all reporting categories and unique re -
quirements are not imposed on local agencies, the 
Executive Officer has determined that the proposed 
regulatory action imposes no costs on local agencies 
that are required to be reimbursed by the State pursu -
ant to part 7 (commencing with section 17500), divi -
sion 4, title 2 of the Government Code, and does not 
impose a mandate on local agencies that is required to 
be reimbursed pursuant to Section 6 of Article XIII B 
of the California Constitution. The proposed regula -
tory action would not create costs to any school dis -
trict reimbursable by the state pursuant to Part 7 (com -
mencing with section 17500), division 4, title 2 of the 
Government Code.Cost or Savings for State Agencies:
Over the regulatory lifetime, the State government 
is estimated to incur incremental costs of about $23 
million resulting from A C and refrigeration systems 
used by State government facilities and $13 million 
for CARB staffing and resources. The State govern -
ment is also estimated to see a direct increase in sales 
tax revenue of $131 million and a decrease in revenue 
from the Energy Resource Fee of $1 million. On net, 
the total fiscal impact (revenues – costs) is estimated 
to be $12 million over the first three years and $94 mil -
lion through 2040.
Other Non–Discretionary Costs or Savings on Local 
Agencies:
Over the regulatory lifetime, Local Governments are 
estimated to incur incremental costs of about $64 mil -
lion resulting from A C and refrigeration systems used 
by local government facilities. Local Governments are 
also estimated to see a direct increase in sales tax rev -
enue of $154 million and a decrease in revenue from 
the Utility User Fee of $9.2 million. On net, the to -
tal fiscal impact (revenues – costs) is estimated to be 
$15 million over the first three years and $81 million 
through 2040.
Cost or Savings in Federal Funding to the State :
There are no costs or savings in federal funding to 
the state.
Housing Costs (Gov. Code, § 11346.5, subd. (a)(12)):
The Executive Officer has made the initial deter -
mination that the proposed regulatory action will not 
have a significant effect on housing costs. Individuals 
who purchase new A C systems will incur incremen -
tal costs beginning in 2023. The cost to own and op -
erate A C equipment is an important part of the cost 
of homeownership. CARB analyzed the impact of the 
Proposed Amendment on housing costs as a part of 
the direct costs to individuals, including homeown -
ers and landlords for single and multifamily housing 
units. The incremental cost for residential A Cs is esti -
mated to be $28.50 per year, which is $422 on average 
per A C for the lifetime cost. With increased market 
adoption, these costs are expected to decrease.
Significant Statewide Adverse Economic Impact 
Directly Affecting Business, Including Ability to 
Compete (Gov. Code, §§ 11346.3, subd. (a), 11346.5, 
subd. (a)(7), 11346.5, subd. (a)(8)):
The Executive Officer has made an initial determi -
nation that the proposed regulatory action would not 
have a significant statewide adverse economic impact 
directly affecting businesses, including the ability of 
California businesses to compete with businesses in 
other states, or on representative private persons. The 
Economic Impact Analysis analyzes the costs from 
the first compliance date out to one average equipment CALIFORNIA REGULATORY NOTICE REGISTER 2020, VOLUME NUMBER 43-Z1412lifetime for regulated refrigeration and A C equipment 
i.e., 2022 to 2040.
Results of The Economic Impact Analysis/
Assessment (Gov. Code, § 11346.5, subd. (a)(10)):
CARB staff determined that the Proposed 
Amendments is a major regulation as the analysis 
shows a greater than $50 million economic impact 
over a 12–month period after full implementation. 
The first equipment prohibitions under the Proposed 
Amendments will become effective January 1, 2022 
and will be fully implemented the following year for 
new equipment and in 2030 for the existing retail food 
facilities.
MAJOR REGULATION: STATEMENT OF 
THE RESULTS OF THE STANDARDIZED 
REGULATORY IMPACT ANALYSIS (S R I A) 
(GOV. CODE, § 11346.3, SUBD. (C))
In March 2020, CARB submitted a Standardized 
Regulatory Impact Analysis (S R I A) to the Department 
of Finance (D O F) for its review. CARB has updated 
the S R I A since the original submittal. The revisions 
are discussed below and in the I S O R, Section VIII.
The Creation or Elimination of Jobs within the 
State:
The overall jobs and output impacts of the Proposed 
Amendments are very small relative to the total 
California economy. The Proposed Amendments are 
estimated to result in a change in the growth of jobs, 
State gross domestic product (G D P), and output that 
is projected to not exceed 0.01 percent of the baseline.
The Creation of New Businesses or the Elimination 
of Existing Businesses within the State:
Impacts to directly affected industries are also very 
small relative to the baseline, with only one industry 
exceeding 0.07 percent. The industry with the largest 
absolute decrease in employment and output is retail 
trade; this is a large and varied sector consisting of 
many different types of businesses. The industry with 
the largest absolute increase in employment and out -
put is the construction sector; this could lead to an ex -
pansion or creation of businesses over time.
The Competitive Advantages or Disadvantages for 
Businesses Currently Doing Business within the 
State:
The A C equipment manufacturers that must com -
ply with requirements of the Proposed Amendments 
are based outside of California and therefore do not 
present any competitiveness impacts for this industry 
inside California. The incremental costs are anticipat -
ed to be incurred generally across business end–users 
and are not anticipated to result in any competitive ad -
vantages or disadvantages within industries.The incremental costs of compliance with the re -
frigeration requirements are assumed to be passed 
on to end–users in California, primarily in the sec -
tors of retail and wholesale trade. The incremental 
costs are anticipated to be incurred generally across 
business end–users and are not anticipated to result in 
any competitive advantages or disadvantages within 
industries.
The Increase or Decrease of Investment in the 
State:
Private domestic investment consists of purchases of 
residential and nonresidential structures and of equip -
ment and software by private businesses and nonprofit 
institutions. It is used as a proxy for impacts on invest -
ments in California because it provides an indicator of 
the future productive capacity of the economy.
The relative changes to growth in private invest -
ment for the Proposed Amendments show a decrease 
of private investment of about $90 million in 2030 and 
$66 million in 2040, or less than 0.01 percent of base -
line investment.
The Incentives for Innovation in Products, 
Materials, or Processes:
The Proposed Amendments sets performance stan -
dards for achieving the requirements across both A C 
and refrigeration sectors. These standards provide an 
incentive for manufacturers to find innovative meth -
ods to achieve them in a low–cost manner in order 
to mitigate compliance costs. CARB staff anticipates 
that these requirements will result in a growing market 
for new low–G W P refrigerants and technologies such 
as C O2 transcritical and cascade systems, microdis -
tributed hydrocarbon systems as well low–G W P hy -
drofluoroolefin (H  F O) systems. Manufacturers who 
invest and gain experience in these technologies will 
benefit as the market expands. Not only is the demand 
for air conditioning and refrigeration increasing, but 
the demand for climate friendly technologies is also 
increasing.
Other U.S. states have committed to taking action 
on lowering emissions of high–G W P H F Cs. In ad -
dition, both chemical manufacturers who produce re -
frigerants and manufacturers of refrigeration and A C 
equipment are global corporations. The manufacturers 
producing compliant refrigerants and equipment for 
California also participate in global markets, which 
include markets where existing policies are already 
driving adoption of next generation technologies, 
markets where new measures are driving near–term 
transformation, as well the worldwide transition that 
is occurring over a longer term because of the Kigali 
Agreement to phasedown H F Cs under the global 
Montreal Protocol. There is an incentive to commer -
cially deploy and gain experience with these technolo -
gies, which is bolstered by the Proposed Amendments.CALIFORNIA REGULATORY NOTICE REGISTER 2020, VOLUME NUMBER 43-Z1413
The Benefits of the Regulations, Including, but 
not Limited to, Benefits to the Health, Safety, and 
Welfare of California Residents, Worker Safety, 
and the State’s Environment and Quality of Life, 
Among any Other Benefits Identified by the Agency:
As discussed previously, annual G H G reductions 
are estimated to be up to 4 M M T C O2e in the year 
2030, with cumulative reductions of 72 M M T C O2e 
by the year 2040. Using the social cost of carbon es -
timates, these emission reductions are equivalent to 
avoiding damages caused by carbon pollution ranging 
between $1.7 billion to $7.2 billion through 2040, de -
pending on the discount rate.
Across some refrigerated facilities, prohibiting the 
use of high–G W P refrigerants is expected to result in 
increased energy efficiency, particularly for the cold 
storage and I P R sectors. Additionally, supermarkets 
and grocery stores retrofitting to lower–G W P refrig -
erants are also expected to benefit from improved en -
ergy efficiency of systems undergoing the retrofits. 
Similarly, many of the alternative refrigerants that may 
be used to comply with the Proposed Amendments 
pertaining to A C equipment have better energy ef -
ficiency or refrigerant performance characteristics. 
Manufacturers may elect to use more efficient refrig -
erants to comply with the Proposed Amendments. It is 
speculative to predict the market share of these refrig -
erants and refrigerant choice is only one factor for how 
manufacturer’s choose to meet minimum efficiency 
requirements set by the U.S. Department of Energy. 
Therefore, CARB does not quantify air quality bene -
fits from less electricity generated resulting from the 
Proposed Amendments.
Department of Finance Comments and Responses:
As indicated above, in March 2020, CARB submit -
ted a S R I A to D O F for its review. CARB has updat -
ed the Proposed Amendments and the S R I A since 
the original submittal, and updated the economic and 
emissions analysis to address D O F comments. D O F 
generally concurs with the methodology used to esti -
mate impacts of the Proposed Amendments but had 
two main comments for CARB:
D O F Comment 1:
The baseline should include a description and break -
down of affected populations by business types and by 
household income in order to augment the analysis of 
disparate impacts. The S R I A assumes that costs and 
benefits are the same for small businesses and typi -
cal businesses, however no justification is provided 
and it is unclear how many small businesses fall into 
each regulatory category and compliance timeline. 
Moreover, the S R I A does not discuss disparate im -
pacts on individuals. An analysis of compliance costs 
as a proportion of business revenue and household in -come would help support CARB’s assessment of no 
differential impacts on regulated entities.
Response to D O F Comment 1:
In the subsequent sections, CARB includes a de -
scription and breakdown of the affected populations 
by business type (for both the refrigeration and A C 
requirements) and also by household income (for A C). 
In addition, CARB includes additional information 
about the costs and benefits for small versus typical 
businesses as well as an analysis of disparate impacts 
on individuals. This analysis includes compliances 
costs as a proportion of business revenues and house -
hold income. For refrigeration, on average, the annu -
alized cost of compliance is less than 0.1 percent of 
the average business revenue. Additionally, the im -
pact on small businesses is lower than that on typical 
businesses. For A C, the incremental cost for a com -
pliant A C ranges from less than 0.01 percent to less 
than 0.002 percent of the annual revenue from a typi -
cal small business in California.
D O F Comment 2:
Second, the S R I A should include a discussion of 
how impacts will change under different growth and 
emissions scenarios. We recognize that economic data 
tends to lag, however, given current circumstances 
and uncertainties, future impact assessments for this 
regulation should incorporate the most up to date fore -
cast issued by Finance, to the extent possible, as well 
as sensitivity analysis to model how impacts may vary 
in case of deviations from the assumed baseline.
Response to D O F Comment 2:
The emissions and cost analysis in the I S O R has 
been updated to reflect the newly released 2020 popu -
lation forecast from D O F, that CARB uses to project 
refrigeration and A C growth. The average population 
growth rate from 0.7 percent from 2022 to 2040 to an 
average of 0.5 percent. This changes (reduces) the to -
tal cost of the regulation and the associated emissions 
benefits by less than approximately 5 percent. In addi -
tion, CARB staff considered the most recent recession 
in the late 2000s. During that time, A C sales report -
ed by Air–Conditioning, Heating, and Refrigeration 
Institute (A H R I) declined an average of 10 percent 
from 2005 to 2010 before returning to a pre–recession 
growth rate. CARB conducted a sensitivity analysis in 
which a 10 percent decline in A C sales occurs from 
the period of 2020 to 2025. This would reduce the cost 
and the emissions benefits of the regulation by over 50 
percent. This may represents a worst case scenario as 
in current conditions, home sales and construction has 
not been as affected as in the previous recession. In 
this worst–case scenario the cost would decrease from 
$3.8 billion to $1.6 billion. The annual emissions re -
ductions decrease from 2.3 M M T C O2e in 2030 to 1.2 
M M T C O2e and the cumulative reductions decrease CALIFORNIA REGULATORY NOTICE REGISTER 2020, VOLUME NUMBER 43-Z141450 M M T C O2e from to 24 M M T C O2e. However, the 
change in sales would also have a corresponding im -
pact on the baseline. Therefore, the relative emissions 
reductions compared to baseline would remain un -
changed as would the cost–effectiveness.
Business Report (Gov. Code, §§ 11346.5, subd. (a)
(11); 11346.3, subd. (d)):
In accordance with Government Code sections 
11346.5, subdivisions (a)(11) and 11346.3, subdivision 
(d), the Executive Officer finds the reporting require -
ments of the proposed regulatory action which apply 
to businesses are necessary for the health, safety, and 
welfare of the people of the State of California.
Cost Impacts on Representative Private Persons or 
Businesses (Gov. Code, § 11346.5, subd. (a)(9)):
In developing this regulatory proposal, CARB staff  
evaluated the potential economic impacts on repre -
sentative private persons or businesses. The cost to 
typical businesses for complying with the Proposed 
Amendments as they pertain to refrigeration and A C 
equipment are discussed briefly below. The cost im -
pact methodology and full details for estimating the 
cost impacts are given in Section VIII of the I S O R.
Refrigeration:
The Proposed Amendments for refrigeration affect 
retail food facilities such as supermarkets, grocery 
stores, warehouse clubs, supercenters and discount 
department stores followed distantly by industrial 
process refrigeration (I P R) facilities including win -
eries and breweries, and refrigerated warehouses and 
storage facilities. A typical retail food company is ex -
pected to incur an annualized cost of compliance of 
$635,000 per year. This includes the cost of opening 
new facilities and retrofitting existing ones. For I P R 
and cold storage facilities, the Proposed Amendments 
will require refrigerants with G W P values less than 
150 for new systems in newly constructed/fully re -
modeled facilities. Large systems containing more 
than 2,000 pounds typically serve very large ware -
houses and processing facilities. Total costs or sav -
ings will depend on how many systems are used by 
a facility.
Air Conditioning:
Seven large manufacturers supply over 95 percent of 
the central ACs and heat pumps market in the United 
States, including California. While there are no A C 
manufacturers building systems in California, CARB 
estimates the cost to a typical manufacturer to be ap -
proximately $20 million per year.
The Proposed Amendments is also expected to re -
sult in incremental costs to businesses who purchase 
a new commercial A C systems compliant with the 
Proposed Amendments. All businesses either install -
ing an A C in new construction or replacing an A C 
will experience higher costs beginning in 2023. On average, compliant A C equipment is expected to cost 
owners and operators of commercial systems an av -
erage of 5 to 7 percent above the baseline cost over 
the lifetime of the equipment. This corresponds to 
an average incremental cost for a typical commercial 
business of $1,000 per year. As stated under “Housing 
Costs,” individuals who purchase new A C systems 
will incur incremental costs beginning in 2023. The 
incremental cost for residential A Cs is estimated to 
be $28.50 per year. As under baseline conditions, the 
majority of cost to own and operate an A C is the en -
ergy use.
Effect on Small Business (Cal. Code Regs., tit. 1, 
§ 4, subds. (a) and (b)):
The Executive Officer has also determined under 
California Code of Regulations, title 1, section 4, that 
the proposed regulatory action would affect small 
businesses. The cost are identified below. The cost im -
pact methodology and full details for estimating the 
cost impacts are given in Section VIII of the I S O R.
Refrigeration:
For refrigeration end–users, compliance costs for 
small businesses are not expected to be different from 
those experienced by typical businesses on a per–sys -
tem basis. However, CARB took the following factors 
into account to help minimize the overall cost impacts 
to small businesses:
● The 50–pound system threshold for the Proposed 
Amendments for refrigeration systems automat -
ically exempts most small businesses like con -
venience and corner stores which generally use 
smaller refrigeration systems.
● Independent grocery store owners/operators are 
not expected to open new facilities at the same 
rate as the large supermarket chains. Thus, CARB 
staff assumes the costs for new facilities to com -
ply with the G W P limit of 150 will be borne by 
the large/typical businesses.
● For the purposes of this rule, companies with 
fewer than 20 retail food facilities in California 
are deemed as small businesses and have a more 
relaxed compliance period. While all businesses 
have to comply by 2030, the small businesses do 
not have an interim progress step giving them a 
full 8–year period to comply with the company–
wide targets starting in 2022.
● In the future, California and all of the United 
States may be affected by the global H F C phase -
down resulting from the Kigali Amendment to 
the Montreal Protocol. One reason to have all 
businesses, large and small reduce their use of 
high–G W P H F Cs is to prepare them for a future 
domestic H F C phasedown and/or a virgin refrig -
erant sales or service ban.CALIFORNIA REGULATORY NOTICE REGISTER 2020, VOLUME NUMBER 43-Z1415
Air Conditioning :
The costs per A C are not expected to be different for 
small businesses compared to the costs experienced 
by typical businesses. However, the average square 
foot per facility is smaller for small business than a 
typical business. This means lower impacts because 
less cooling power is needed and that translates to ei -
ther fewer A C units and/or smaller A Cs compared to a 
typical business. CARB staff estimates an incremental 
cost of $140 per year on average for small businesses 
that install a new A C after 2023. As with residential 
equipment, the cost to own and operate a commercial 
A C is dominated by the energy use.
Consideration of Alternatives (Gov. Code, § 11346.5, 
subd. (a)(13)):
Before taking final action on the proposed regula -
tory action, the Board must determine that no reason -
able alternative considered by the Board, or that has 
otherwise been identified and brought to the attention 
of the Board, would be more effective in carrying out 
the purpose for which the action is proposed, would 
be as effective and less burdensome to affected private 
persons than the proposed action, or would be more 
cost–effective to affected private persons and equally 
effective in implementing the statutory policy or other 
provisions of law.
CARB considered two alternatives to the Proposed 
Amendments. The first alternative would have been 
less stringent and the second alternative would have 
been more stringent. As explained in Section IX of the 
I S O R, no alternative proposal was found to be less 
burdensome and equally effective in achieving the 
purposes of the regulation in a manner than ensures 
full compliance with the authorizing law. The Board 
has not identified any reasonable alternatives that 
would lessen any adverse impact on small business.
ENVIRONMENTAL ANALYSIS
CARB has determined that the Proposed 
Amendments are categorically exempt from the re -
quirements of the California Environmental Quality 
Act (C E Q A) under Class 1, Class 2, and Class 8 ex -
emptions. (Cal. Code Regs., tit. 14, §§ 15301, 15302, 
15308). A brief explanation of the basis for reach -
ing this conclusion is included in Section VI of the 
I S O R. If the Proposed Amendments are finalized, a 
Notice of Exemption will be filed with the Office of 
the Secretary for the Natural Resources Agency for 
public inspection.
SPECIAL ACCOMMODATION REQUEST
Consistent with California Government Code sec -
tion 7296.2, special accommodation or language 
needs may be provided for any of the following:● An interpreter to be available at the hearing;
● Documents made available in an alternate format 
or another language; and
● A disability–related reasonable accommodation.
To request these special accommodations or lan -
guage needs, please contact the Clerks’ Office at (916) 
322–5594 or by facsimile at (916) 322–3928 as soon 
as possible, but no later than ten business days be -
fore the scheduled Board hearing. TTY/TDD/Speech 
to Speech users may dial 711 for the California Relay 
Service.
Consecuente con la sección 7296.2 del Código de 
Gobierno de California, una acomodación especial 
o necesidades lingüísticas pueden ser suministradas 
para cualquiera de los siguientes:
● Un intérprete que esté disponible en la audiencia;
● Documentos disponibles en un formato alterno u 
otro idioma; y
● Una acomodación razonable relacionados con 
una incapacidad.
Para solicitar estas comodidades especiales o nece -
sidades de otro idioma, por favor llame a la oficina 
del Consejo al (916) 322–5594 o envié un fax a (916) 
322–3928 lo más pronto posible, pero no menos de 10 
días de trabajo antes del día programado para la au -
diencia del Consejo. TTY/TDD/Personas que necesi -
ten este servicio pueden marcar el 711 para el Servicio 
de Retransmisión de Mensajes de California.
AGENCY CONTACT PERSONS
Inquiries concerning the substance of the proposed 
regulatory action may be directed to the agency repre -
sentative Pamela Gupta, Manager, at pamela.gupta@
arb.ca.gov , or (designated back–up contact) Kathryn 
Kynett, Air Pollution Specialist, at kathryn.kynett@
arb.ca.gov , both in the F–gas Reduction Strategy 
Section.
AVAILABILITY OF DOCUMENTS
CARB staff has prepared a Staff Report: Initial 
Statement of Reasons (I S O R) for the proposed reg -
ulatory action, which includes a summary of the 
economic and environmental impacts of the pro -
posal. The report is entitled: “Staff Report: Initial 
Statement of Reasons — Public Hearing to Consider 
Amendments to The Prohibitions on Use of Certain 
Hydrofluorocarbons in Stationary Refrigeration, 
Chillers, Aerosols–Propellants, and Foam End–Uses.”
Copies of the I S O R and the full text of the proposed 
regulatory language, in underline and strikeout format 
to allow for comparison with the existing regulations 
may be accessed on CARB’s website listed below, 
or may be obtained from the Public Information CALIFORNIA REGULATORY NOTICE REGISTER 2020, VOLUME NUMBER 43-Z1416Office, California Air Resources Board, 1001 I Street, 
Visitors and Environmental Services Center, First 
Floor, Sacramento, California, 95814, on October 20, 
2020. The Board staff has compiled a record for this 
rulemaking action, which includes all the information 
upon which the proposal is based. This material is 
available for inspection upon request to the contact 
persons. Because of current travel, facility, and 
staffing restrictions, the California Air Resources 
Board’s offices may have limited public access. Please 
contact Bradley Bechtold, Regulations Coordinator, 
at bradley.bechtold@arb.ca.gov  or (916) 322–6533 if 
you need physical copies of the documents and for 
all nonsubstantive inquiries concerning the proposed 
administrative action.
HEARING PROCEDURES
The public hearing will be conducted in accordance 
with the California Administrative Procedure Act, 
Government Code, title 2, division 3, part 1, chapter 
3.5 (commencing with section 11340).
Following the public hearing, the Board may take 
action to approve for adoption the regulatory language 
as originally proposed, or with non–substantial or 
grammatical modifications.
The Board may also approve for adoption the pro -
posed regulatory language with other modifications if 
the text as modified is sufficiently related to the orig -
inally proposed text that the public was adequately 
placed on notice and that the regulatory language as 
modified could result from the proposed regulatory 
action. If this occurs, the full regulatory text, with the 
modifications clearly indicated, will be made available 
to the public, for written comment, at least 15 days be -
fore final adoption.
Board may also direct the Executive Officer to: 
make any proposed modified regulatory language that 
is sufficiently related to the originally proposed text 
that the public was adequately placed on notice and 
that the regulatory language as modified could result 
from the proposed regulatory action, and any addition -
al supporting documents and information, available to 
the public for a period of at least 15 days; consider 
written comments submitted during this period; and 
make any further modifications as may be appropriate 
in light of the comments received available for further 
public comment. The Executive Officer may present 
the regulation to the Board for further consideration if 
warranted, and if not, the Executive Officer shall take 
final action to adopt the regulation after addressing all 
appropriate conforming modifications.FINAL STATEMENT OF  
REASONS AVAILABILITY
Upon its completion, the Final Statement of Reasons 
(F S O R) will be available and copies may be requested 
from the agency contact persons in this notice, or may 
be accessed on CARB’s website listed below.
INTERNET ACCESS
This notice, the I S O R and all subsequent regulato -
ry documents, including the F S O R, when completed, 
are available on CARB’s website for this rulemaking 
at https://ww2.arb.ca.gov//rulemaking/2020/hfc2020 .
 
GENERAL PUBLIC INTEREST
CALIFORNIA DEPARTMENT OF FISH 
AND WILDLIFE
HABITAT RESTORATION AND 
ENHANCEMENT ACT  
CONSISTENCY DETERMINATION  
NO. 1653–2020–067–001–R1
Project:  M–1 Road Fish Passage Improvement Project
Location:  Mendocino County
Applicant:  Elise Ferrarese, Trout Unlimited
Background
Project Location:  The M–1 Road Fish Passage 
Improvement Project (Project) is located on the M–1 
Road at a crossing over No Name Gulch, locally 
known as Chapman Creek, approximately 5.1 miles 
upstream of Big River State Beach. Coordinates for 
the Project are 39.29675° N, 123.71789° W, at property 
owned by California State Parks and affects No Name 
Gulch, tributary to Big River. No Name Gulch sup -
ports populations of Coho Salmon, Chinook Salmon, 
steelhead trout, and other aquatic species.
Project Description:  Trout Unlimited (Applicant) 
proposes to enhance habitat within No Name Gulch 
to provide a net conservation benefit for Coho Salmon 
and steelhead trout. The Project follows the stream 
simulation approach and involves replacement of the 
current culvert with an embedded channel–spanning 
60–foot long by 96–inch diameter corrugated steel 
culvert. The successful completion of the Project will 
provide access to 1,100 linear feet (0.21 miles) of sal -
monid spawning and rearing habitat in the lower Big 
River basin, which has been identified as high–priori -
ty, core recovery habitat for Central California Coastal 
Coho Salmon, North Coast D P S steelhead trout,