In Dec. 2024, the New York State Department of Environmental Conservation (DEC) published a final rule to significantly tighten state regulations on hydrofluorocarbon (HFC) refrigerants utilized in HVACR equipment and heat pump water heaters. This measure was approved despite action by Congress that represented a compromise between environmental lobbyists and HVACR manufacturers to phase out HFC refrigerants at an agreed upon schedule.

Apart from phasing out the use of allowable refrigerants for HVACR equipment more aggressively, another notable departure from federal law that is found in the DEC rule, is that the state intends to restrict refrigerants that are used in heat pump water heaters, a novel policy in the United States on any level of government. Not only this, but the regulation is also highly aggressive, requiring manufacturers to utilize more costly refrigerants as early as Jan. 1, 2027.

The policy risks compelling manufacturers of heat pump water heaters, a product which is still struggling to gain a foothold in the market in New York and elsewhere, to redesign their products and manufacturing processes. All these additional costs have the potential to be passed on to the consumer, exacerbating a high upfront cost challenge already facing heat pump water heater products.

In an effort to reverse this bold regulation, members of the New York State Legislature introduced measures in the form of A9596 and S9066 to ensure that the state does not jump ahead of the compromise policy at the federal level. Both bills are currently awaiting further consideration before the Committee on Environmental Conservation in their respective chambers.

In addition to these legislative efforts, two equipment manufacturer trade associations, the Air Conditioning Heating and Refrigeration Institute (AHRI) and the Heating, Air Conditioning, Refrigeration Distributors International (HARDI) resisted the state’s regulation in court. In the lawsuit, the associations argued that DEC’s rule was in violation of the state’s Climate Leadership and Community Protection Act and that the Department also failed to follow administrative procedures when implementing the rule. The Supreme Court in Albany County disagreed, but the associations have filed a notice of appeal to that decision.

BWC Government and Regulatory Affairs staff are continuing to work with our industry partners to ensure the state’s regulation of HFC refrigerants is fair and reasonable. As this work continues, we will keep you informed of any developments, as well as what you need to know for your business. In the meantime, if you have any questions about this issue, or any other issues pertaining to government and regulatory affairs in our industry, please do not hesitate to reach out to us directly at BWCGovReg@bradfordwhite.com.