August is the time of year when one Phoenix area residents really appreciate refrigeration. Every time we walk into a building from the furnace outside, when grabbing a cold drink from the fridge or ice from the freezer, at the Ice Den, on the COSTCO run (in the fruit, veggie, egg, & dairy sections), and when grabbing a cold drink from a vending machine, I think we can agree refrigeration is key to sanity in our daily lives at this time of the year!
We were fascinated to learn there are some changes coming to refrigeration, and we thought you might be interested and grateful to learn some details. After all, we all need a new home refrigerator from time to time, cooling systems in my neighborhood are between 20-25 years old (getting up there!), and everyone loves the Ice Den, so what’s the plan?
Let’s begin with a bit of background. The phasedown of HFC Refrigerants in the United States has been in process since December 2020. What are HFCs, you may ask? HFC refers to the chemical composition of the refrigerant. Hydrofluorocarbon (HFC) indicates that the refrigerant is comprised of Hydrogen, Fluorine, and Carbon. Under the bipartisan AIM Act in May of 2021, the Environmental Protection Agency has been assigned to reduce HFCs by replacing the use of HFCs with Low Global Warming Potential (low-GWP) alternatives. According to the EPA, “a number of lower-GWP alternative refrigerants are available and currently in use or under development for use in residential and commercial AC systems—including hydrocarbons, carbon dioxide, ammonia, water, as well as HFC and HFO2 blends.”
Why don’t we like HFCs? Well, HFCs are a greenhouse gas, which means they contribute to global warming. With this in mind, the EPA mandated a reduction of HFCs at the beginning of 2022, and there will be an additional reduction of 30% in 2024 and a final reduction in 2029 of another 30%. These reductions will result in a total of a 70% reduction of HFCs from baseline 2021 levels. The idea is to reduce further global warming by emitting substantially fewer HFCs.
Ok, if you’re bored to tears with all this science and data talk, here’s the part where you can save money! Under the Inflation Reduction Act, “new federal income tax credits are available through 2032 providing up to $3,200 annually to lower the cost of energy efficient home upgrade.” Remember, Kate Conway is a REALTOR, so please consult your CPA before you go out and purchase a new air conditioning system. Please find a link in the Geek Out section below for more information.
To geek out on the details:
EPA Guide on How and Why transition to Low-GPA Alternatives is Happening
Updates on Refrigeration Regulations from ACHR News
Information on Energy Star Tax Credits
