Changes to US Refrigerant Rules and their Impact on Canada

For some time, HRAI members have been looking forward to a decision from Environment and Climate Change Canada on the possible re-opening or updating of the Ozone-Depleting Substances and Halocarbon Alternatives Regulation (ODSHAR), the regulation that governs the use and importation of refrigerants and refrigeration-using products in Canada. Many changes were made to United States rules for refrigerants in 2023, leaving concerns about Canada’s regulations potentially being out of sync with our largest import and export market.

Several new and important changes to the US rules on refrigerants were announced on May 21, 2026, by the US Environmental Protection Agency (EPA), in what is called the Final Technology Transitions Reconsideration Rule. The changes, which are to be effective July 27, 2026, include:

  • The January 1, 2026 installation deadline for residential and light commercial AC/HP systems using refrigerants above 700 GWP has been removed where all specified system components were manufactured in, or imported into, the United States before January 1, 2025. 

  • For new retail food supermarket systems, EPA is temporarily setting a 1,400 GWP limit starting January 1, 2027, with a 150/300 GWP limits returning on January 1, 2032.

  • For new retail food remote condensing units, EPA is temporarily allowing refrigerants up to 1,400 GWP from the rule’s effective date, 60 days after Federal Register publication, until January 1, 2032, after which a 150/300 GWP limit will apply.

  • For new cold storage warehouse systems, EPA is temporarily setting a 700 GWP limit from the rule’s effective date until January 1, 2032, after which the 150/300 GWP limits apply. 

  • For supermarket systems, EPA will allow up to a 15% increase in cooling capacity without treating the work as installation of a new system.

EPA says the changes are meant to lower costs and provide more flexibility under the AIM Act HFC transition.

Some HVACR industry stakeholders have raised concerns that the delays could increase demand for legacy refrigerants while supply is reduced, potentially raising refrigerant/service costs.

Stephen Yurek, President and CEO of AHRI, a US association for HVACR manufacturers, said the rule could have a negative impact on the industry and consumers, “maintaining and even increasing demand in the market for existing refrigerants while supply continues to fall,” adding that “refrigerant prices are likely to rise, resulting in higher service costs, and higher costs for consumers.” (link to AHRI post: click here)

Other stakeholders raised concerns that the US administration was not heeding advice from a wide range of industry participants. Talbot Gee, CEO of HARDI, a US association representing HVACR wholesalers, said “the final rule appears to reflect the preferences of a narrow segment of the food retail sector that supported the changes over the well-being of the most-affected HVACR businesses and their customers.” (link to press release: click here)An EPA fact sheet for the changes is available on the EPA website: https://www.epa.gov/climate-hfcs-reduction/regulatory-actions-technology-transitions 

For Canada’s HVACR industry, HRAI will be monitoring developments, with an eye to concerns about market uncertainty and increased pressure on legacy refrigerant supply.

On the topic of a possible update to Canada’s regulations, this US announcement underscores the importance of ensuring Canada has clear, harmonized, practical rules that protect inventory, support code readiness, and avoid unnecessary cost increases for contractors, wholesalers, manufacturers, and consumers.

For more information, please contact HRAI’s Director of Regulatory Affairs, Perry Chao at pchao@hrai.ca.

Back to Newsletters