We hear you and your frustrations regarding the shortage of refrigerants needed for installing the latest equipment required by the AIM Act. When President Trump signed the AIM Act in 2020, the idea was for industry to collaborate with the Environmental Protection Agency (EPA) to develop rules that would facilitate a smooth transition to the next generation of American-made refrigerants. What you’re witnessing in the field right now is far from the changeover we envisioned. However, the challenges you face today cannot be resolved by reversing these regulations.
Manufacturers have already invested hundreds of millions of dollars retooling factories to produce equipment designed to use next-generation refrigerants, following the EPA’s deadline of January 1, 2025, to stop production of components necessary to install complete R-410A systems. However, to go back would require months, if not years, of planning, retooling, and sourcing R-410A components for the manufacture of new systems. The only shortcut would be to import foreign products that contradict President Trump’s efforts to boost American manufacturing — and at a much higher cost than in previous years.
The shortage of R-454B is an issue our industry is taking seriously, and we are working with our channel partners to address it as swiftly as possible. American manufacturers are racing to increase access to R-454B in the market. What began as a cylinder shortage has evolved into a much larger supply chain issue that can be resolved expeditiously through cooperation and patience, rather than through hasty policy changes. In addition to the cylinder issue, the refrigerant shortage was exacerbated by demand that was far greater and arose much more quickly than most predicted, along with poor communication and forecasting within the HVACR channel. The fault for this lies within the industry, not in the AIM Act or its implementation.
We are not saying the regulations finalized by the EPA are perfect — far from it. We know adjustments can be made to protect American innovation and manufacturing. We want to prevent the same policy failures, such as installation dates and loopholes that allow for continuous “chop and drop” replacements from persisting in the future. We need to focus on addressing the issues while preserving the law that aligns with the goals of our industry and the administration: Protecting American industry and consumers.
We recognize that HVACR contractors have been communicating their frustration within the halls of Congress. We have echoed your frustration, but our message is that policy changes won’t fix the current refrigerant shortage. When AHRI, HARDI, and PHCC visit Congressional offices this month, we will share a list of initiatives the industry is undertaking to address the supply chain issue and to prevent these issues from recurring. We will explain how reasonable improvements to current regulations can support the future of this transition and make this transition a success long after the supply chain issues have been resolved. At the same time, we must allow the supply chain to catch up with demand as it seeks to develop more domestic capacity to meet demand.
The bottom line is this: The supply chain issue is today. Hasty policy changes, with many foreseen and unforeseen consequences, imperil all of our tomorrows. They threaten what has, until right now, been a very methodical and successful transition.
We have survived similar supply chain issues in the past, and we will successfully navigate this one this year, paving the way for a much smoother transition in the years ahead. We encourage everyone in the supply chain to continue collaborating with your trade associations and industry partners. We are always available to hear your feedback on how we can work alongside the EPA and the Trump Administration. Above all, we want you to succeed as we ensure our industry’s continued success in the global marketplace.