As updates to the American Innovation and Manufacturing (AIM) Act take effect, businesses that manage refrigerants must stay on top of new measures to ensure compliance and minimize environmental impact.

In Fall 2024, the U.S. Environmental Protection Agency (EPA) announced its final rule to address the damaging impact of harmful hydrofluorocarbons (HFCs) used in refrigeration and air conditioning equipment on our atmosphere.

HFCs are widely recognized as being extremely damaging and need to be more closely controlled to avoid a global warming increase of 0.5^oC by the end of the century.

The Act requires a measured reduction of these gases over the coming years – eventually resulting in an 85% phasedown by 2036. It means that refrigerant businesses must start making changes now if they are to stay on top of the changes and avoid potentially costly fines and penalties.

The EPA’s announcement last September said that the “final rule will support a growing American industry for HFC recycling and reclamation, building on the Administration’s successful implementation of a 10% HFC reduction step on production and imports in 2022 and 2023 and ongoing implementation of the 40% reduction step that started this year.”

Importantly, the final rule stipulates that users of these gases should be using less of them; preventing leaks; and looking to more innovative, less damaging products as alternatives. It also requires they look to recycle and reuse product, which would need to be carefully – and accurately –managed and reported.

Highlights 

The October 2024 — Final Rule offers guidance regarding the management of HFCs and their substitutes under the Act, including the introduction of the Emissions Reduction and Reclamation (ER&R) Program. The final ER&R program includes:

• A requirement to repair leaking equipment.
• The installation and use of automatic leak detection systems for certain refrigeration systems.
• The use of reclaimed HFCs to service and repair some new and existing equipment.
• Fire suppression technician training and the minimization of HFC releases from fire suppression equipment.
• The removal and recovery of HFCs from disposable cylinders before they are discarded.
• More stringent recordkeeping, reporting and labeling.

It’s specifically these last two points where a refrigerant tracking solution will be invaluable, suggests Elizabeth Wallace, VP of Product at TrackAbout.

“There is a reduction qualification of 85% by 2036,” says Wallace, “but effective January 1, 2026, the compliance requirements are tracking, reporting, leak detection, stricter EPA oversight, and enhanced monitoring and record keeping – and that all dovetails into exactly what TrackAbout is offering.” 

Through lot number or batch tracking, the simple scan of one of our unique barcodes attached to an asset provides instant access to detailed data including serial numbers, product information, location and movement, handling details, and more.

Information Gathering

Under the AIM Act, the refrigerant industry is required to collect a huge amount of data to demonstrate compliance with these regulations. Tracking product from cradle to grave will ensure all traces of these HFCs are properly reclaimed, as well as helping to prevent counterfeit products being imported into the US, says Wallace.

“The final rule wants to put stricter tracking and reporting in place by 2026,” says Wallace. “The industry is being encouraged to go towards more natural refrigerants or Hydrofluoroolefin (HFO) refrigerants that really have a low global warming impact. It’s going to become more and more important to transition to those. There will also be significant cracking down on the documentation needed to help reduce illegal imports of HFCs.”

“With the latest update and the final rule of the AIM Act, there is continued focus on reducing HFC emissions and the recovery of these products,” says Wallace. “Importantly, TrackAbout can make sure that users can easily log these HFCs and the amount of product that they're pulling back into the systems to reuse.”

So, when a cylinder is delivered and emptied, the trace amounts of product that remain inside can be monitored, and the data collated and stored using software.

“When the assets are returned, there will typically be residuals in the cylinder itself. We'll be able to record those, so users can calculate exactly what can be reclaimed,” she adds.

This will provide the assurance, traceability, transparency, and accountability required to comply with the regulations, she says.

Make Sure You're Ready

So, what can businesses in the refrigerant industry do to prepare and adapt for the changes?

“Because of the requirements to make sure you have legal sourcing, it’s important to understand where your products are going, so some sort of tracking solution is going to absolutely be required,” says Wallace.

“The new factor in all of this is the chain of custody,” she continues. “Before, it was not required to understand exactly what was happening with refrigerant products and have full traceability all the way down to the end user – but this is exactly what TrackAbout will soon be offering as a new part of our software solution.”

This powerful new feature is in development, she says, with more details about its release expected in the coming months. Keep checking back on our website for the latest news about this update and to stay informed about the AIM Act regulations and how TrackAbout can help you stay compliant.

By understanding these updates, businesses can avoid costly penalties, optimize operations, and contribute to global sustainability goals. More details about the planned phasedown of HFCs is available via the EPA website.

TrackAbout helps businesses monitor and manage valuable assets, streamline operations, optimize workflows, and ensure compliance with the latest AIM Act requirements. Learn more by requesting a free demo with our team of experts.