In January 2024, the New York State Department of Environmental Conservation (NYSDEC) proposed an amendment to Hydrofluorocarbon (HFC) Standards and Reporting under Part 494 of the Codes, Rules and Regulations of the State of New York (6 CRR-NY). This proposed amendment would expand the current limitations on the use of HFC refrigerants, setting strict usage and emission limits as well as reporting requirements for owners of systems containing HFCs. These changes aim to realign New York’s statewide refrigerant regulations with current and proposed federal requirements from the Code of Federal Regulations, 40 CFR Part 84 – Phasedown of Hydrofluorocarbons, and statewide sustainability goals enacted in the 2019 Climate Leadership and Community Protection Act (CLCPA).
In the Regulatory Impact Statement (RIS) for the proposed Part 494 amendment, NYSDEC stated that more than 5% of statewide GHG emissions are attributable to HFCs. The RIS also estimates that without the proposed amendment to Part 494, HFC emissions could account for more than 9% of the GHG emissions goal for 2030 set by the CLCPA and nearly 42% percent of the 2050 goal.
HFC Phase-out
The proposed amendment to Part 494 broadens the scope of the rule, retaining previously stated HFC prohibition dates and adding broader prohibitions for various equipment and HFC categories already restricted federally by 40 CFR 84.54. The proposed bans would affect air conditioning equipment such as chillers, residential HVAC, and industrial process refrigeration, and are proposed to become more stringent over the next decade. As early as January 1, 2025, many additional HFCs would be prohibited from use in regulated equipment. By 2034, all regulated equipment would be banned from using regulated substances with twenty-year global warming potential [GWP] (GWP20) greater than 10. This 2034 ban goes above and beyond the existing 40 CFR 84 requirements. Specific prohibition dates vary by type of equipment and substance; for specific guidance review proposed Subparts 494-1.4(e) and 494-1.4(f).
Notably, NYSDEC has selected to continue the use of GWP20 which has been employed in all state requirements since passing of the CLCPA. According to the Proposal’s RIS, the use of GWP20 is necessary to align with CLCPA requirements to assess GHG emissions over the twenty-five-year time frame between now and 2050, the compliance date for the final statewide GHG emissions targets. The use of GWP20 values results in potentially more strict regulations within the state than the federal EPA standards, which utilize one hundred-year GWP (GWP100) as many compounds have a higher GWP20 than GWP100.
As part of NYSDEC’s proposed requirements, the burden of compliance will expand from suppliers and users of regulated substances to include manufacturers, owners, and designers of systems which include such substances. Additionally, NYSDEC has provisioned exemptions and express instructions for the application of variances from the proposed requirements. Three categories of variance have been proposed: “Impossibility”, “Force Majeure Event”, and “Economic Hardship.” Each category includes various criteria including the anticipation and minimization of potential noncompliance and adverse effects from the greenhouse gas emissions from such noncompliance. The proposed amendment also maintains the current exemptions in Subpart 494.5(a) [Proposed Subpart 494-1.5(a)]. Exemptions are also proposed for any regulated substance used in “very low temperature applications” and “systems retrofitted to use a lower GWP20 substitute, until January 1, 2029.”
New Refrigerant Management and Replacement Program
In addition to amending the current language of Part 494, NYSDEC has also proposed a new Subpart 494-2 for the management of regulated refrigerants. The new “Refrigerant Management and Replacement Program” applies to all owners and operators of “stationary refrigeration or air conditioning equipment with a refrigerant charge capacity” of 50 pounds or greater of regulated substances. These proposed requirements mirror the existing federal requirements for ozone depleting substances in 40 CFR 82 and the proposed federal requirements for HFCs in 40 CFR 84.
As part of this new program, NYSDEC would require subject facilities to perform leak inspections with frequency and methodology varying based on system capacity. Inspection protocols would range from annual inspections for equipment with charge of 50 pounds to requiring automatic leak detection systems for refrigeration equipment with charge greater than 1,500 pounds, starting June 1, 2025. The voluntary use of automatic leak detection systems would also comply with requirements for lower charge thresholds. Leak inspections would be required within 24 hours of any leak detected by an automatic leak detection system and when adding regulated substances in amounts greater than or equal to 5 pounds or 1% of the equipment’s charge capacity. For seasonal equipment that meets the applicability requirements, NYSDEC has proposed requiring leak inspections within 30 days of each startup and every following three months until the equipment is shut down. This inspection requirement does not apply during a period of shutdown that lasts beyond 60 days.
NYSDEC has outlined proposed leak repair requirements, including a 14-day repair requirement, which would require repairs be done only by certified technicians within 14-days of initial detection. Criteria for a 45-day allowance have been proposed which would allow delayed repair in the event of unavailability of necessary parts or certified technicians or required manufacturing process shutdown. A 120-day allowance may be granted for industrial process refrigeration leaks, provided that the repair of the leak would require the stopped manufacturing of a desired product. The proposed Subpart 494-2.6 would require subject facilities to submit an annual report to NYSDEC containing general information for any subject equipment (i.e. equipment model, manufacturer, and maximum capacity), as well as dates of any inspection, service, or repair executed on that equipment.
The full proposed text of Part 494 is available for review on the NYSDEC’s website. The proposed amendment to Part 494 is part of the sweeping regulatory changes resulting from the passing of the CLCPA. Trinity has previously written on the proposal of DEP-23-1 and the pre-proposal outline of the New York Cap-and-Invest (NYCI) program. Trinity’s Albany office continues to track new development from the CLCPA to better assist clients in navigating applicability and impacts of these regulations on their facilities.
If you would like to discuss the proposed amendment to Part 494 or other regulations relating to the CLCPA and their impact on your facility, please email Kenneth Fay in Trinity’s Albany office or call 518.751.6708.
