COLUMBUS, Ohio — Heating, Air-conditioning & Refrigeration Distributors International (HARDI), Plumbing-Heating-Cooling Contractors Association (PHCC), and Air Conditioning Contractors of America (ACCA) announced they have filed a legal challenge to portions of the Environmental Protection Agency's Technology Transitions Reconsideration Rule.

The organizations contend that amendments affecting commercial refrigeration applications conflict with the American Innovation and Manufacturing (AIM) Act by increasing demand for hydrofluorocarbon (HFC) refrigerants while federal law continues to reduce their supply.

According to the petitioners, the rule extends compliance deadlines for certain supermarket, retail food, and cold storage refrigeration applications, allowing continued manufacture of new systems that use higher-global-warming-potential refrigerants.

The trade groups argue that increasing demand for these refrigerants during the ongoing phasedown could disrupt the refrigerant market and create additional costs across the HVACR supply chain.

"For the EPA to completely abandon the timelines for transitioning to next-generation products proposed by industry in 2021 misses the mark," said Talbot Gee, CEO of HARDI. He added that the organization believes the final rule conflicts with requirements established under the AIM Act.

PHCC expressed concerns about the effect of the rule on contractors and customers navigating refrigerant transitions.

"Allowing legacy refrigerants to be used longer in new commercial refrigeration systems creates confusion for the contractors who install and service this equipment and hurts consumers," said Cindy Sheridan, CEO of PHCC. Sheridan noted that EPA's analysis projects a 12% to 24% increase in U.S. refrigerant prices by 2029 as a result of the delays.

The organizations also argued that extending the use of legacy hydrofluorocarbons in commercial refrigeration could reduce refrigerant availability for other sectors, including residential air conditioning.

"While ACCA appreciates EPA eliminating the install deadline for R-410A split-system equipment, the rule's delayed refrigeration transition will significantly increase the demand for the limited supply of HFC refrigerants and will drive up costs for contractors and their customers," said Martin Hoover, interim president and CEO of ACCA.

The groups emphasized that they support EPA's decision to remove installation prohibitions for existing split-system residential and light commercial air conditioners and heat pumps, a policy they have previously advocated for to prevent stranded inventory and supply chain disruptions.

According to the petitioners, the challenge focuses on EPA's decision to delay commercial refrigeration transition requirements. They argue that the original Technology Transitions Rule applied only to new equipment and did not require replacement of existing refrigeration systems, allowing current systems to continue operating and being serviced.

For HVACR contractors and distributors, the case could have significant implications for refrigerant availability, compliance planning, equipment transitions, and future operating costs as the industry continues implementing the AIM Act refrigerant phasedown.