NYS plan would require replacing refrigeration, air conditioning using HFCs
A New York State proposal would require large-scale food chains and other companies to drastically reduce hydrofluorocarbons, or HFCs, used mainly in refrigerants and air conditioning. Credit: Getty Images/Joe Raedle
ALBANY — The state will soon decide if and when convenience stores, supermarkets, high-tech bio-storage companies, hospitals and other private and public sector enterprises will have to spend hundreds of thousands of dollars to replace refrigeration and air conditioning systems that use a "super-pollutant."
The proposal would require large-scale food chains and other companies to drastically reduce hydrofluorocarbons, or HFCs, which are mainly used in refrigerants and air conditioning. HFC emissions are a major contributor to greenhouse gases, state and federal regulators said.
Business groups are lobbying hard against the proposal, a decision on which is expected within weeks. The proposed regulation would require "widespread replacement of equipment and systems across all of New York" and force some operators to close, according to a letter to Gov. Kathy Hochul from the state Business Council, the Long Island Association business group and other organizations.
The state proposal would require use of HFCs to be virtually eliminated under a phased-in plan over several years beginning Jan. 1, according to the state Department of Environmental Conservation.
The proposal wouldn’t require companies to immediately replace systems. But it would encourage and eventually require businesses to reduce HFCs as new systems replace current equipment. The new systems would need to comply with federal climate change regulations and the state’s 2019 Climate Leadership and Community Protection Act.
The state estimates the eventual change to safer compounds also will help businesses save $288 million to $540 million in power costs while eliminating a major contributor to climate change, said DEC spokesman John J. Salka III.
HFCs "are potent greenhouse gases" considered thousands of times more powerful than carbon dioxide and often leak in refrigeration and air condition systems, according to the U.S. Environmental Protection Agency. The EPA has a similar plan to reduce HFCs and encourage use of safer options when the life of current systems end, although its phase-in period begins years after the state’s proposed timeline.
The United States is one of 130 countries that have agreed to greatly reduce use of HFCs by 2036.
The state proposal is a "manageable transition" that will align New York with federal and international climate change agreements, said Katie McNamara, deputy executive director at Environmental Advocates of New York. "HFCs are incredibly potent greenhouse gasses — far more dangerous to our climate than carbon dioxide — and currently account for 6% of the state's total emissions. Reducing them is not just a matter of environmental responsibility; it’s a critical step in safeguarding public health and combating the climate crisis."
Salka said the proposal would "have no direct costs to consumers, and will not require consumers or businesses to replace existing products and equipment prior to the end of useful life."
Business groups, however, argue that companies don’t have enough time to prepare for what would be hundreds of thousands of dollars. The proposal will hit not just large companies, but small convenience stores already operating on a narrow profit margin, said Tariq Khan of Hewlett, owner of a BP gas station and convenience store in West Hempstead.
"This will be huge," Kahn said. He said the mom-and-pop stores like his will eventually face replacing several coolers in their stores at a cost of about $20,000 each. Chain stores will likely pass the cost on to the franchise operator, said Kahn, who has been active in retail trade associations.
The business groups also contend that the state’s phrase "useful life" of equipment means a breakdown of even a newer unit would have to be replaced rather than fixed.
The state regulation wouldn’t directly force replacement of a current system that breaks down, but repairs would have to be done with alternatives rated as a low global warming potential, or GWP, according to the DEC. HFCs have a high global warming potential rating.
"If equipment breaks, repairs are not prohibited if the repair involves a compliant substance," said Salka. "Replacing that equipment with modern, low-GWP refrigerant and energy efficient equipment would ultimately help businesses, especially large commercial stores, spend less money on energy costs compared to less energy efficient options."
The groups that wrote to Hochul include the business council, LIA, the Long Island African American Chamber of Commerce, the state Economic Development Council and the New York Association of Convenience Stores.
"The state’s proposed limits are stricter and take effect more quickly than the federal government’s rules that were adopted in 2020," the groups said. "Consequently, the state’s plan may add another onerous financial burden for countless businesses and homeowners throughout Long Island, negatively impacting a cross-section of industries we rely on such as grocery stores, hospitals, restaurants, educational institutions, and more."
The EPA last year ordered a reduction of HFCs by 40% under what the agency calls a 15-year "forward-looking" plan that "restricts new products and systems from being placed on the market or entering operation."
But environmental advocates fear the federal measure will be diluted or eliminated under President-elect Donald Trump, who has opposed climate change measures as a burden on business.
The state proposal includes provisions for variances for the regulations, including for "economic hardship" under certain circumstances.
However, the variances would be available only for a limited number of businesses and provide temporary relief, said Ken Pokalsky, vice president of the Business Council. Applying for a variance would take time, during which companies could be out of compliance and subject to enforcement action by the DEC.
"The ramifications of this proposal could be financially devastating for businesses that will need to retrofit their operations, purchase and install new equipment, and grapple with increased long-term energy costs," the business groups told Hochul. "Policymakers must devise solutions to lower the cost of doing business in New York instead of pursuing initiatives that could significantly increase costs that help further drive small businesses out of the region."
ALBANY — The state will soon decide if and when convenience stores, supermarkets, high-tech bio-storage companies, hospitals and other private and public sector enterprises will have to spend hundreds of thousands of dollars to replace refrigeration and air conditioning systems that use a "super-pollutant."
The proposal would require large-scale food chains and other companies to drastically reduce hydrofluorocarbons, or HFCs, which are mainly used in refrigerants and air conditioning. HFC emissions are a major contributor to greenhouse gases, state and federal regulators said.
Business groups are lobbying hard against the proposal, a decision on which is expected within weeks. The proposed regulation would require "widespread replacement of equipment and systems across all of New York" and force some operators to close, according to a letter to Gov. Kathy Hochul from the state Business Council, the Long Island Association business group and other organizations.
The state proposal would require use of HFCs to be virtually eliminated under a phased-in plan over several years beginning Jan. 1, according to the state Department of Environmental Conservation.
WHAT NEWSDAY FOUND
- New York State will soon decide if and when some businesses will have to spend hundreds of thousands of dollars to replace refrigeration and air conditioning systems that use a "super-pollutant."
- The proposal would require large-scale food chains and other companies to drastically reduce hydrofluorocarbons, or HFCs. HFC emissions are a major contributor to greenhouse gases, state and federal regulators said.
- Business groups are lobbying hard against the plan, saying it would require "widespread replacement of equipment and systems across all of New York" and force some operators to close.
The proposal wouldn’t require companies to immediately replace systems. But it would encourage and eventually require businesses to reduce HFCs as new systems replace current equipment. The new systems would need to comply with federal climate change regulations and the state’s 2019 Climate Leadership and Community Protection Act.
The state estimates the eventual change to safer compounds also will help businesses save $288 million to $540 million in power costs while eliminating a major contributor to climate change, said DEC spokesman John J. Salka III.
HFCs "are potent greenhouse gases" considered thousands of times more powerful than carbon dioxide and often leak in refrigeration and air condition systems, according to the U.S. Environmental Protection Agency. The EPA has a similar plan to reduce HFCs and encourage use of safer options when the life of current systems end, although its phase-in period begins years after the state’s proposed timeline.
The United States is one of 130 countries that have agreed to greatly reduce use of HFCs by 2036.
The state proposal is a "manageable transition" that will align New York with federal and international climate change agreements, said Katie McNamara, deputy executive director at Environmental Advocates of New York. "HFCs are incredibly potent greenhouse gasses — far more dangerous to our climate than carbon dioxide — and currently account for 6% of the state's total emissions. Reducing them is not just a matter of environmental responsibility; it’s a critical step in safeguarding public health and combating the climate crisis."
Salka said the proposal would "have no direct costs to consumers, and will not require consumers or businesses to replace existing products and equipment prior to the end of useful life."
Business groups, however, argue that companies don’t have enough time to prepare for what would be hundreds of thousands of dollars. The proposal will hit not just large companies, but small convenience stores already operating on a narrow profit margin, said Tariq Khan of Hewlett, owner of a BP gas station and convenience store in West Hempstead.
"This will be huge," Kahn said. He said the mom-and-pop stores like his will eventually face replacing several coolers in their stores at a cost of about $20,000 each. Chain stores will likely pass the cost on to the franchise operator, said Kahn, who has been active in retail trade associations.
The business groups also contend that the state’s phrase "useful life" of equipment means a breakdown of even a newer unit would have to be replaced rather than fixed.
The state regulation wouldn’t directly force replacement of a current system that breaks down, but repairs would have to be done with alternatives rated as a low global warming potential, or GWP, according to the DEC. HFCs have a high global warming potential rating.
"If equipment breaks, repairs are not prohibited if the repair involves a compliant substance," said Salka. "Replacing that equipment with modern, low-GWP refrigerant and energy efficient equipment would ultimately help businesses, especially large commercial stores, spend less money on energy costs compared to less energy efficient options."
The groups that wrote to Hochul include the business council, LIA, the Long Island African American Chamber of Commerce, the state Economic Development Council and the New York Association of Convenience Stores.
"The state’s proposed limits are stricter and take effect more quickly than the federal government’s rules that were adopted in 2020," the groups said. "Consequently, the state’s plan may add another onerous financial burden for countless businesses and homeowners throughout Long Island, negatively impacting a cross-section of industries we rely on such as grocery stores, hospitals, restaurants, educational institutions, and more."
The EPA last year ordered a reduction of HFCs by 40% under what the agency calls a 15-year "forward-looking" plan that "restricts new products and systems from being placed on the market or entering operation."
But environmental advocates fear the federal measure will be diluted or eliminated under President-elect Donald Trump, who has opposed climate change measures as a burden on business.
The state proposal includes provisions for variances for the regulations, including for "economic hardship" under certain circumstances.
However, the variances would be available only for a limited number of businesses and provide temporary relief, said Ken Pokalsky, vice president of the Business Council. Applying for a variance would take time, during which companies could be out of compliance and subject to enforcement action by the DEC.
"The ramifications of this proposal could be financially devastating for businesses that will need to retrofit their operations, purchase and install new equipment, and grapple with increased long-term energy costs," the business groups told Hochul. "Policymakers must devise solutions to lower the cost of doing business in New York instead of pursuing initiatives that could significantly increase costs that help further drive small businesses out of the region."
Michael Gormley has worked for Newsday since 2013, covering state government, politics and issues. He has covered Albany since 2001.
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