On July 13, 2023, the Washington State Department of Ecology (Ecology) published proposed amendments to Chapter 173-443 WAC, Hydrofluorocarbons (HFCs). Key provisions of the Proposed Rule include: 

1. Establishing maximum global warming potential (GWP) thresholds for HFCs used in new stationary refrigeration and air conditioning equipment, small cans of refrigerant, and certain nonessential consumer aerosol products;
2. Establishing a refrigerant management program with registration, leak inspection, leak repair, recordkeeping and reporting requirements for owners or operators of large stationary refrigeration and air conditioning systems; and
3. Establishing required service practices for technicians who service stationary refrigeration and air conditioning systems. 

Ecology requests comment on the Proposed Rule by August 31, 2023.¹

Background and Statutory Basis for Ecology’s Proposed Rule

The Proposed Rule will implement the requirements in Chapter 70A.60 RCW, Hydrofluorocarbons – Emissions Reduction, to reduce greenhouse gas emissions from fluorinated gases in the refrigeration and air conditioning sectors. The law directs Ecology to adopt rules to establish a refrigerant management program to reduce greenhouse gas emissions from large stationary refrigeration and commercial air conditioning systems operating in Washington and to adopt a maximum global warming potential (GWP) threshold for the refrigerants used in new refrigeration equipment in ice rinks. The law also authorizes Ecology to adopt maximum GWP thresholds for the refrigerants used in new stationary refrigeration and air conditioning equipment and to add new reporting, labeling, and recordkeeping requirements for equipment manufacturers.

The Proposed Rule would make the following changes to Chapter 173-443 WAC, the HFCs rule:

Details of Proposed Changes for Manufacturers:

• Adding centrifugal chillers used for heating or heating and cooling to existing prohibitions on the use of certain refrigerants.
• Setting maximum GWP thresholds for certain refrigerants used in new refrigeration equipment with a refrigerant charge capacity of more than 50 lbs.
• Setting maximum GWP thresholds for certain refrigerants used in new air conditioning equipment.
• Setting maximum GWP thresholds for certain refrigerants in small containers of refrigerant and nonessential consumer products.
• Amending and adding labeling requirements.
• Adding recordkeeping requirements.
• Establishing a variance process and criteria.

Details of Proposed Changes for Facilities with Refrigeration or Air Conditioning Systems:

• Establishing refrigerant management program (RMP) registration requirements.
• Setting implementation fees and annual fees. 
• Requiring leak inspection and monitoring.
• Setting leak rate thresholds and establishing notification requirements.
• Establishing requirements for leak repair, timing, and verification.
• Establishing requirements for retrofit and retirement plans.
• Establishing an exemption process and criteria. 
• Establishing reporting requirements.
• Establishing recordkeeping requirements.

Details of Proposed Changes for Refrigerant Wholesalers, Distributors, and Reclaimers:

• Establishing registration requirements.
• Establishing reporting requirements.
• Establishing recordkeeping requirements.

The Proposed Rule will lead to significantly increased compliance costs associated with activities such as leak detection and monitoring, registration, and reporting. Exemptions under the Proposed Rule are limited. Businesses with refrigeration equipment with a refrigerant charge capacity of less than 50 lbs. are not required to comply with the Proposed Rule’s requirements. 

Manufacturers and facilities affected by the Proposed Rule should consider submitting comments by the August 31, 2023, deadline. Please contact the authors for more information about Ecology’s Proposed Rule, or assistance with the public comment process.

With an office in Seattle, Beveridge & Diamond’s Climate Change practice group helps clients navigate complex and interrelated legal and reputational issues including required or voluntary disclosures, interactions with sustainability rating agencies, supply chain and product stewardship, interactions with suppliers and customers, responsible sourcing, human rights, climate change law and policy, GHG emissions credit trading, environmental justice, facility issues, and more.

¹ On August 7, 2023, Ecology published a guidebook on the proposed rule, which is intended to aid readers in their review of the proposed rule.