2025 HVAC Refrigerant Regulations: What This Means For Data

The Environmental Protection Agency (EPA) recently proposed regulations aimed at banning the use of many hydrofluorocarbons (HFCs) in new air conditioners and commercial refrigeration equipment. These regulations require manufacturers to transition to low-global warming potential (GWP) refrigerants in their product by January 1, 2026 if the equipment was manufactured or imported by January 1, 2025. In this article, we review what this means for engineering and product data and the teams managing this data.

🚧 The most significant implication of these new regulations is that HVAC manufacturers will need to:

• Invest in research and development to create new products that meet the new regulatory standards
• Gain deeper visibility into their engineered parts and sellable product mix to determine which parts and sellable SKUs will be impacted
• Develop a game plan on how to remediate those parts and sellable SKUs that are not in compliance

⏰ The regulatory deadline adds pressure on manufacturers and suppliers to move quickly towards compliance. The change could create a massive regulatory and technological shift for commercial and residential HVAC and refrigeration products. This means: 

• Manufacturers may have to redesign their existing products to accommodate the new refrigerants or develop entirely new systems
• Consumers may need to replace their current HVAC systems earlier than expected, which can lead to additional costs

Editor's Note: On June 19, 2024, the EPA proposed to allow one additional year to the provision of the Technology Transitions, until January 1, 2027, “solely, for the installation of new Variable Refrigerant Flow (VRF) systems using HFCs with a global warming potential of 700 or more, and where the components were manufactured in the U.S. or imported into the U.S. prior to January 1, 2026.” (EPA, 2024)

🚚 The new regulations may also have an impact on the HVAC industry's supply chain. Refrigerant manufacturers will need to ramp up production of low-GWP refrigerants, which may result in supply chain disruptions or higher costs for these substances. HVAC installers will also need to be trained on how to install and maintain the new systems, adding another layer of complexity and cost.

From a data management perspective, HVAC manufacturers will need to:

💡Quickly identify alternative refrigerants with lower GWP

💡 Gain visibility into existing data classification and attributes to pinpoint areas where engineering and design changes will be needed for existing HVAC products and systems (the ability to efficiently centralize and analyze data at scale will be paramount)

💡Manage engineering and product data to ensure compliance with the new regulations, including product specifications, testing, validating new designs, and communicating these changes to customers and stakeholders

💡Invest in new technologies and equipment to handle new refrigerants, impacting data management and business transformation strategies

Ultimately, the new regulations on refrigerants can have far-reaching implications for the HVAC industry, from increased costs for consumers, manufacturers to supply chain disruptions and workforce training requirements.

🗝️ Capturing and maintaining critical metadata on parts and items will be critical to HVAC companies in managing these compliance requirements. Leveraging an industry-focused classification model that is intended for HVAC parts and products will help to jumpstart your data governance initiatives and prepare your team for this and other material compliance initiatives.

Are your teams and data prepared to meet the upcoming deadlines? Contact us for more information on how to get started. 📝