The following viewpoint is written by Tristan Schwartzman, director and director of energy services a Goldman Copeland, and Stephen Murphy, an energy engineer at Goldman Copeland
New York State has implemented a new regulation to quantify and ultimately reduce leaks of hydrofluorocarbons, the greenhouse gases often used in cooling and refrigeration equipment. It is part of the implementation of the state’s Climate Act and directly affects commercial property owners, who should understand its implications and requirements for them.
In the early 1990s, restrictions were placed on the use of R11 refrigerants and later R22 refrigerants, but the question remains: what refrigerants are now being used and in what quantities, and how much is being released into the atmosphere through leaks?
That is why the New York State Department of Environmental Conservation (DEC) has adopted an amended Part 494 regulation on hydrofluorocarbons. To comply with this regulation, owners of commercial properties with large (>1500 pounds of refrigerant) or medium-sized (>200 pounds of refrigerant) equipment that use refrigerant must register the equipment on a state platform and begin reporting leaks in 2026 for large equipment and 2027 for medium equipment.
What constitutes a leak? In general, any coolant added to the system is equivalent to what was leaked. The total leakage should therefore simply be the amount of refrigerant purchased.
The new regulation applies to the owner of any building that has a main cooling plant or a large packaged air conditioning unit or a variable refrigerant flow (VRF) system. Owners or their managers should check the nameplate on chillers or AC units to determine how many pounds of refrigerant are in the equipment.
For owners of larger buildings, this should be relatively simple and within the competence of their staff. But a wide range of smaller buildings could also trigger the requirements: from multi-family buildings with cooling plants to religious institutions to larger commercial spaces. Some larger commercial tenants could also trigger the requirements with their own independent operating team.
For more complicated systems, including VRF, owners may wish to seek expert advice. This is also true for all sizes of buildings or portfolios of buildings, where the degree of compliance is more difficult or more technical competence is needed.
Starting in March 2026, owners must report annual refrigerant leak rates for registered “large” equipment: 1,500 pounds of refrigerant or more, typically chillers of 500 tons capacity or more. Such large equipment would include, for example, steam turbine chillers or a main cooling plant for a high-rise building.
By June 2026, owners will be required to register any “mid-size” equipment, from 200 pounds of refrigerant to 1499 pounds, which could include units as small as 40-50 tons capacity. They must report annual leakage rates by March 2027. Such equipment would include modular chillers or packaged air conditioning units covering a floor.
By June 2028, “small” equipment (50 pounds to 199 pounds) will have to be registered.
Registration is done via an online form on the NYS DEC platform and is relatively simple. It requires identifying, for each piece of equipment, information about the unit and its components, including the model number, serial number and a photo of the license plate.
Complying with the requirements requires some understanding of chillers, packaged units and VRF systems, and how many evaporators, condensers, compressors and expansion valves there are. The process can be challenging for those trying to complete it independently.
To comply with the leak report, owners will need the previous year’s maintenance or service invoices and invoices for purchased refrigerant for the relevant units, itemized by unit. It is also important to know what refrigerant is stored there, as keeping this in mind will reduce reported leaks.
Owners who violate the regulation will be liable for a civil penalty of not more than $2,500 for each violation. For each day the violation continues, an additional penalty of not more than $500 will apply. The cost of non-compliance therefore rises rapidly.
The Part 494 mandate will give the State insight into the extent of refrigerant use and leakage. This will encourage a switch to newer equipment with refrigerants that have a lower global warming potential.
Tristan Schwartzman, director and director of energy services a Goldman Copelanda Consulting engineering firm based in New York City. Stephen Murphy, an energy engineer at Goldman Copeland.
