Hydrofluorocarbons and Refrigerant Regulations.  Hydrofluorocarbons (HFCs) are a category of gases used primarily as refrigerants in a variety of commercial and industrial applications.  HFCs are among the greenhouse gases (GHGs) identified by the United States Environmental Protection Agency (EPA) and the Department of Ecology (Ecology) because of their capacity to trap heat in the earth's atmosphere.  The global warming potential (GWP) of HFCs and other GHGs is measured as a function of how much of the gas is concentrated in the atmosphere, how long the gas stays in the atmosphere, and how strongly the particular gas affects global atmospheric temperatures.  Under state law, the GWPs of GHGs are measured in terms of their equivalence to the emission of an identical volume of carbon dioxide over a 100-year timeframe.  Some HFCs can be hundreds-to-thousands of times more potent than carbon dioxide.

In recent years, the Legislature has established several new regulatory requirements to restrict emissions of HFCs and other refrigerants, including:

• requiring that repair or disposal services of refrigeration equipment use refrigerant extraction equipment to recover unused refrigerants;
• prohibiting the willful release of refrigerants from air conditioning, heating, and refrigeration systems, and consumer appliances;
• establishing a maximum GWP for refrigerants in numerous categories of uses, including foam blowing agents like polyurethane or spray foam, refrigeration equipment, and air conditioning equipment; and
• establishing a refrigerant management program to reduce refrigerant emissions from larger stationary refrigeration systems and larger commercial air conditioning systems.

Ecology has adopted rules to implement many of these requirements, including establishing required service practices for individuals performing the installation, maintenance, service, repair, or disposal of a refrigeration or air conditioning system with a charge of at least 50 pounds and that uses a refrigerant with a GWP of at least 150.

In December 2021, Ecology submitted a report to the Legislature regarding end-of-life refrigerant management, which included recommendations that an end-of-life refrigerant management program be based on several specified principles, including that a program address refrigerant-containing equipment and appliances, and contain provisions for all types of refrigerants, not just HFCs.  Ecology determined that more extensive stakeholder feedback was needed to develop recommendations for an optimally-designed end-of-life refrigerant management program.

Federal Law.  In December 2020, Congress enacted the American Innovation and Manufacturing Act (AIM Act), establishing federal restrictions on HFCs.  The AIM Act, and EPA rules to implement it, establish a phase-down of production and consumption of HFCs in the United States to 15 percent of baseline levels by 2036, with reductions to 60 percent of baseline levels taking effect in 2024, reductions to 30 percent of baseline levels taking effect in 2029, and reductions to 20 percent of baseline levels taking effect in 2034.  In addition to the overall phase-down of HFCs, EPA is authorized to adopt regulations to facilitate sector-based transitions to lower-GWP technologies, including through restrictions on the use of certain HFCs, and to adopt regulations to maximize reclamation and minimize releases of HFCs.

Under the federal Clean Air Act, EPA adopted regulations to maximize the recapture and recycling of refrigerants during the maintenance, service, repair, and disposal of appliances and motor vehicle air conditioning systems.  The regulations also require the certification of technicians that service, repair, or dispose of equipment that could release refrigerants, who must pass a test to become certified.

Prohibitions Regarding Certain Hydrofluorocarbons.  It is prohibited to sell, distribute, or otherwise enter into commerce in the state newly-produced bulk HFCs or newly-produced bulk HFC blends that have a:

• GWP exceeding 1500, beginning January 1, 2030; and
• GWP exceeding 750, beginning January 1, 2033.

Ecology may adopt rules lowering the GWPs or adjusting the dates if it finds that an adequate supply of reclaimed refrigerant would be available in the state to accommodate the changes.  "Newly-produced refrigerant" means a refrigerant that has not been previously used, recovered, or reclaimed.   "Reclaim" means the reprocessing of regulated substances to certain specifications in federal law and where the substance does not contain more than 15 percent newly-produced material by weight.

The prohibitions do not apply to:

• reclaimed HFCs;
• certain application-specific uses permitted in the AIM Act;
• HFCs and HFC blends used in aircraft maintenance or on-board aircraft by the Federal Aviation Administration, Department of Defense, or equivalent authorities; or
• shipments of certain HFCs through the state, where the substance does not enter commerce in the state.

Ecology may provide a temporary exemption for a newly-produced HFC or newly-produced HFC blend where it determines compliance is technically or economically infeasible.  An exemption may not exceed three years in most cases and is conditioned on the recipient completing a compliance plan. 

Refrigerant Transition Task Force.  Ecology must establish a refrigerant transition task force (task force) by July 1, 2026, to study opportunities and barriers associated with transitioning to climate-friendly refrigerants and enhancing refrigerant recovery, recycling, reclamation, and destruction.  The task force must include the following specified representatives:

• one representative from Ecology, who chairs the task force;
• one representative from the private sector with expertise in installing, servicing, repairing, and decommissioning refrigeration and air conditioning equipment;
• one representative from the private sector with expertise in refrigerant recovery and reclamation;
• one representative from the private sector with expertise in manufacturing refrigeration and air conditioning equipment and the distribution and sale of such equipment;
• one Washington representative from the private sector that installs or services either air conditioning or refrigeration equipment, or both;
• three representatives from environmental nonprofit organizations familiar with the climate risks of HFCs;
• one representative from Washington agricultural businesses that own or operate either air conditioning or refrigeration equipment;
• one representative from a labor union representing workers who install and service refrigeration and heating, ventilation, and air conditioning equipment;
• one representative from the state Building Code Council with expertise in fire safety;
• one representative from tribal or indigenous organizations guiding decisions for purchase and operation of equipment using HFCs; and
• one representative from Washington businesses that own or operate refrigeration equipment containing more than 50 pounds of ultra-low GWP refrigerants.

All task force representatives must disclose to Ecology all material financial interests related to the task force's work, including funding sources for their work.  Ecology may invite the input of other relevant experts to work with the task force, including representatives of environmental justice organizations, certain grocers, state agency staff, and others.

The task force must submit a report by December 1, 2027, assessing the opportunities, barriers, and recommendations for transitioning to refrigerants with low GWPs and ultra-low GWPs, accounting for distinctions among different types of equipment and appliances for HFC-using sectors and subsectors and the timelines needed for each to complete a transition.  Ecology must provide administrative and operating support to the task force.  A majority of the task force constitutes a quorum.  A quorum and an affirmative vote by a majority of those present is needed to include a point or provision in the report.

Department of Ecology Rules.  Ecology is granted rulemaking authority, including authority to lower the GWP limits or modify the timelines in the HFC prohibitions above if it finds that an adequate supply of reclaimed refrigerant would be available in the state to accommodate the lower limits.  Ecology must consider and incorporate factors that minimize or potentially eliminate disincentives and maximize or potentially incentivize the recovery of refrigerant and its reclamation or destruction including, but not limited to, prohibiting fees or destroying covered refrigerants.  Ecology may, by rule, update newly-added terms to existing statutes regarding refrigerants.

After the task force finalizes its report, but no earlier than 2028, Ecology must adopt rules, informed by the report and work of the task force, to require low GWP or ultra-low GWP alternatives to HFCs in a sector unless it is not practicable for entities in the sector to comply with the requirement. 

Miscellaneous Provisions.  Violations of the HFC prohibitions are subject to state Clean Air Act penalties.  The term bulk is added to refrigerant statutes, which references a federal definition of the same term.  "Bulk" means a regulated refrigerant stored in a container and not included in a manufactured product.  "Low GWP" means a GWP of less than 150 carbon dioxide equivalents.  "Ultra-low GWP" means a GWP of less than ten carbon dioxide equivalents. 

The legislation contains intent language and a state severability clause.

PRO:  This bill protects both the climate and Washington's economic security.  Refrigerants are essential for our health and economy, but they are also potent GHGs, which is why countries around the world are phasing them down.  It is important to pass this bill this year.  Most of these refrigerants are made in China, which is also phasing them down.  The bill has been negotiated with a large group of industry stakeholders over many months.  The bill does not require anyone to replace a system, but when the time comes, we want to make sure we have the best options available in Washington.  It also gathers experts to guide our transition to climate-friendly refrigerants. 

As a majority of new refrigerant is imported from international sources, recovering existing gas from equipment will help boost supply and reduce refrigerant prices.  We suggest including one representative with expertise and who is actively engaged in refrigerant recovery and reclamation.  This bill provides an incentive to recover and reclaim refrigerant.  This bill helps grow the market for recycled refrigerants.  This bill is not about creating refrigerant shortages, it is about making sure we do not have shortages.  The bill has been trimmed down since you first heard the companion.  Many agricultural refrigeration systems use ammonia and not refrigerant, which is much cheaper and climate-friendly.

CON:  We operate large refrigeration systems and it seems like this bill is going to create an artificial shortage of refrigerants.  We estimate it is around $450,000 to retrofit a refrigeration storage system.

OTHER:  We really appreciate the work on making sure the task force is correct and their work will be done before all of this starts to go into effect.  Since these systems can last many years, we need to make sure to work on recovering and reclaiming existing refrigerants.  We need clear language to ensure contractors do not get a bill for destroying recovered refrigerant.  We want to make sure R-22 is still available in Washington.