As part of the ongoing implementation of New York State’s Climate Act, the Department of Environmental Conservation (DEC) has adopted an amended Part 494 regulation on hydrofluorocarbons (HFCs), the greenhouse gases often used in refrigeration and cooling equipment. To comply with the regulation, commercial property owners with at least one large or medium-size piece of equipment that utilizes refrigerant must register the equipment on a state platform and begin reporting on leakage in 2026.
Beginning in March 2026, owners must report annual refrigerant leakage rates for registered large equipment (1500 pounds of refrigerant or more, typically chillers of at least 300 tons of capacity or more). The registration deadline for large equipment was June 2025, but the DEC has shown leniency on registration. Owners/Operators are required to maintain records from January 2025 onwards and report on annual leakage rates by March 31 annually. Records can be either leak detection system logs or monthly leak inspection reports for large equipment.
By June 2026, owners will be required to register any medium-size equipment (from 200 pounds of refrigerant up to 1499 pounds, which could include units as small as 20 tons of capacity) and must report annual leakage rates by March 2027. Owners/Operators are required to maintain records from January 2025 onwards and report on annual leakage rates by March 31 annually. Records can be either leak detection system logs or quarterly leak inspection reports.
Goldman Copeland has, therefore, created a refrigerant management service to address the State’s requirements. Through this service, Goldman Copeland will conduct an initial survey of a commercial property owner’s refrigeration and cooling equipment, determine what equipment meets the state’s definition of large or medium-size, register the equipment as required on the state platform, and provide the mandated periodic monitoring and reporting. The initial survey typically takes 2-3 hours per site.
Owners who fail to comply with the regulation will be liable for a civil penalty of not more than $2500 for each such violation and an additional penalty of not more than $500 for each day that the violation continues. Owners who fail to comply will also forego the potential savings.
While the genesis of the new Goldman Copeland service is the state regulation, there is a benefit to the owner, including cost savings, in monitoring and addressing leakage. Such leakage occurs in all equipment that uses refrigerant, whether it be from wear and tear, weakened joints and connections, or corrosion of cooling coils.
The extent of the leakage reveals the potential cost savings and carbon emissions. It’s worth noting in this regard that refrigerant leakage does not currently count toward the carbon emissions assessed under New York City’s Local Law 97.
Leakage rates can be between 1.5% and 10% per annum depending on the equipment type and the refrigerant charge. Cost savings can be achieved by upgrading components, replacing equipment, or upgrading the refrigerant to one with a lower GWP.
If you would like to speak with an expert on this topic at Goldman Copeland, please contact Sarah Ingber at [email protected].
