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CLIMATE DAILY NEWS

Setting Precedent, NRDC, Industry Reach Agreement On 

HFC Phaseouts

February 01, 2016 

Correction Appended

Environmentalists and industry groups are jointly asking EPA to extend and synchronize any proposed deadline to 

phase out several hydrofluorocarbons (HFCs) -- high global warming potential (GWP) refrigerants -- in commercial 

chillers, opening the door for similar talks over chemicals used in other appliances that advocates had petitioned the 

agency to ban.

In a Feb. 1 letter obtained by InsideEPA/climate, the Natural Resources Defense Council (NRDC) and the AirConditioning, Heating and Refrigeration Institute (AHRI) propose a negotiated phaseout schedule for three high-GWP 

HFC refrigerants used in chiller equipment that is as much as four years longer than what NRDC had petitioned the 

agency to adopt in an upcoming rulemaking.

The agreement comes after weeks of talks between NRDC and manufacturers of the chillers -- one of the sectors EPA 

has said it will target in an upcoming rulemaking under the Significant New Alternatives Policy (SNAP) program, a 

measure that will form part of the administration's commitments to reduce greenhouse gas emissions under an 

upcoming amendment being negotiated to the Montreal Protocol later this year.

“NRDC and AHRI find the consensus-driven, comprehensive nature of this recommendation to be a strong statement 

of support for EPA's forthcoming SNAP proposal, and we hope EPA proposes changes of status accordingly,” reads 

the letter, signed by AHRI President Stephen Yurek and NRDC's climate program director David Doniger.

They add: “We look forward to working with EPA on future SNAP rulemakings to ensure a responsible transition to 

climate-friendly air conditioning and refrigeration systems.”

The groups' agreement on the chemical phaseout echoes similar efforts under the Energy Department's (DOE) related 

program setting efficiency standards for scores of appliances. There, officials have convened negotiations between 

environmentalists and industry groups that have so far yielded several agreements to tighten standards for several 

refrigeration and cooling appliances, many of which rely on the chemicals regulated by EPA.

The DOE agreements, such as the recent deal setting standards for residential air-conditioners and heat pumps, is 

bolstering industry calls for similar negotiations to develop other efficiency standards.

In the deal over HFCs for chillers, units that remove heat from a liquid in commercial cooling systems, the agreed-upon 

phaseout schedule would delist effective Jan. 1, 2025, three refrigerants -- R-134a, R-410A and R-407C -- “from the list 

of acceptable alternatives in all new air-cooled and water-cooled chillers using centrifugal, screw, scroll, and all other 

compressor types.”

The phaseout date is several years later than dates NRDC had originally proposed in an Oct. 6, 2015, petition to EPA 

asking the agency to set deadlines for replacing HFCs in several types of chillers, as well as a variety of other 

applications -- including medium- and heavy-duty trucks, refrigerators, portable air conditioners, home air conditioners, 

commercial rooftop units, cold storage warehouses and foams.

NRDC Petition

In its petition, NRDC had called for the removal of HFC-134a from the list of acceptable substitutes for chillers by Jan. 

1, 2019, and for the removal of R-410A by Jan. 1, 2023. Thus, the consensus phaseout schedule, by which all three 

substances would be phased out by 2025, allows adequate time -- eight years -- for manufacturers “to finish designing 

and bringing to market chillers using alternative refrigerants,” according to the letter.

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The extended timeline takes into account such industry concerns as allowing for enough time for manufacturers to 

redesign products, as well as covering factories to allow for the use of some alternative refrigerants that are mildly 

flammable -- specific concerns that “wouldn't be apparent to folks that don't build chillers,” says one industry source 

familiar with the agreement.

The industry source praised the agreement, calling it a “doable plan” and noting that both industry and 

environmentalists are hoping EPA will adopt the approach in its upcoming SNAP proposal. The agreement “gives the 

industry certainty while providing some of the necessary time for the transition [industry] would need to take to 

incorporate some of these refrigerants that have mild flammability,” the source told InsideEPA/climate.

The letter also notes that the softened timeline will allow individual manufacturers to set their own schedules for 

introducing new equipment in advance of 2025. “Aligning the changes of status for all equipment types will encourage 

all alternatives to be evaluated and allow the flexibility to design equipment with the lowest carbon footprint,” it reads.

 The industry source says the groups moved quickly to negotiate due to a “feeling that we don't have much time left 

before EPA issues the proposed rule.”

The upcoming rulemaking, which EPA announced late last year will build upon the first SNAP rule removing several 

high-GWP HFC refrigerants from a list of approved substances.

EPA has been taking input from industry stakeholders on the new SNAP rulemaking process, though many industry 

representatives remain concerned about the pace of administration actions and the approach by which it targets 

sectors.

Industry will be watching to see “how much input EPA takes on this next SNAP rule” to see if the agency is “listening or 

if we'll have a battle on our hands,” William McQuade, executive director of energy and sustainability policy at Johnson 

Controls, told InsideEPA/climate last month.

As a result, if EPA were to propose its newest SNAP rule including the deal reached between NRDC and AHRI, it could 

ease tensions among the agency and industry officials.

In addition, though the recent agreement only focuses on chillers, the successful negotiations are also likely to set a 

precedent for possible consensus on HFC phaseout schedules for other sectors -- particularly as industry faces the 

uncertainty of whether EPA will proceed to set strict phaseout schedules under the SNAP program or codify 

international schedules agreed to under the Montreal Protocol.

Countries are negotiating this year to craft an amendment governing a global phase-down of HFCs under the Montreal 

Protocol, with the goal of finalizing language by the end of this year. EPA, however, has not yet committed to halting 

SNAP rulemakings should an international amendment be reached -- a key request from industry stakeholders.

Still, the industry source hailed the new HFC deal as establishing a “platform for cooperation,” adding that it “could 

serve as a good model for future SNAP delisting rules."

The source says such negotiations would be of particular importance as EPA begins to look at sectors like residential 

air conditioning, where the use of mildly flammable alternatives will not be an option. “Hopefully we can enhance 

stakeholder input to EPA in the future,” the source says. -- Abby Smith (asmith@iwpnews.com)

Editor's Note: An earlier version of this article incorrectly identified a sector where this agreement may be relevant.

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