Decarbonizing Healthcare: Why Refrigerant Management is the Next Big Step

Actively managing the refrigerants used in your facilities can play an important role in decarbonization. As the healthcare industry works to help lower its carbon footprint, your healthcare operations likely have a sustainability goal that facilities are expected to meet.

Considering that if healthcare worldwide were its own country, it would be one of the top five largest carbon emitters on the planet, cutting down on emissions is vital to the health of our planet.

Along with Energy Efficiency, Renewable Energy, and Electrification, Refrigerant Management is one of the four key levers that facilities can use to help achieve their decarbonization goals. This makes a refrigerant management strategy vital to any healthcare decarbonization plan. New government regulations introduce detailed information and require prompt action for healthcare facilities to remain cutting-edge, strategic, and compliant.

A High-Level Introduction to Refrigerants

Let’s get technical for a minute.

Hydrofluorocarbons (HFCs), a primary chemical used in refrigerants, have 1,000-9,000x greater capacity to warm the atmosphere than carbon dioxide (CO2).

The Kigali Amendment to the Montreal Protocol and the American Innovation and Manufacturing (AIM) Act of 2020 prompted the United States Environmental Protection Agency (EPA) to issue a rule implementing legislation that changes refrigerant requirements. This legislation requires an 85% nationwide refrigerant “phase down” of HFC refrigerants in all HVAC systems by 2036.

Refrigerant “Phase Down” and Refrigerant Management

Here’s what you need to know.

Beginning January 1, 2025, manufacturers are phasing out the production of HVAC equipment with a GWP above 700. While existing equipment doesn’t need to be replaced, over time, these refrigerants will be replaced with next-generation, or A2L, refrigerants. In addition to HFC refrigerant phase-down, the EPA published a notice to mandate improved refrigerant management, which includes safety guidelines for service, handling, leak detection, disposal, and recordkeeping due to A2L refrigerants having a lower flammability classification.

This regulation change will impact both existing and new construction for healthcare facilities. As Engineers assess current state refrigerant usage and create plans to adhere to EPA regulations, there are many things to consider.

Impact to Healthcare Facilities: Why It Matters

Although it’s a lot to digest, there’s also much at stake. Healthcare facilities must address these changes in their asset planning and management. Healthcare facility compliance requires it, and long-term financial benefits may be realized by taking action.

Meet Sustainability Goals

Refrigerant usage is one of the most effective ways for healthcare companies to help positively impact decarbonization goals. The EPA estimates that the shift to next-generation refrigerants will result in emissions reductions of up to 876 million metric tons of carbon dioxide from 2025 through 2050. Future-thinking healthcare facilities can stay ahead of the curve by putting refrigerant management at the top of their sustainability priorities.

Mitigate Risk of Non-Compliance

With this change in regulation, the EPA can request more information about companies’ refrigerant management and impose fines and penalties for non-compliance. You can reduce the risk of fines and penalties by evaluating your HVAC, cataloging existing refrigerants, and documenting any recent leaks.

Long-Term Financial Benefit

Aside from sustainability goals, there are long-term financial benefits to implementing refrigerant changes. Regular maintenance and timely repairs help prevent refrigerant leaks that can cause systems to work harder and consume more energy. Well-maintained systems with proper refrigerant levels experience less wear and tear, which can help extend the lifespan of the equipment and help reduce the frequency and cost of replacements.

Preventing leaks and recovering refrigerants during maintenance can help reduce the need to purchase new refrigerants, which can be expensive.

How to Get Started

Engineers should take inventory of current assets and determine the next steps. Some assets with a lot of life remaining may be a good fit for an engineered conversion. Older equipment may require a replacement, resulting in more sustainable, reliable, and efficient assets.

Engage Leadership

Getting leadership involved early is essential to your program’s success. Use these changes as a way to address antiquated infrastructure and gain buy-in. Engage with leaders to assess current assets and review refrigerant management processes. Consider these changes a springboard to help further leadership conversations around both compliance and being at the forefront of sustainability decisions that support decarbonization.

Talk to the Experts

At Trane, decarbonization and sustainability are top of mind for our customers and our community. We have dedicated teams with decades of experience who understand these changes, and we can help healthcare facilities develop a strategic plan for updating their refrigerants. 

These changes are nuanced and there isn’t one right path forward. Benefit from working with the experts at Trane where over 15 years and $500 million has been invested to determine the best low-GWP refrigerants for our equipment and systems. We can help with the following:

  1. Refrigerant Conversion: While there is no perfect refrigerant, there are key considerations to selecting a refrigerant. We objectively select the best refrigerant for the application and use an unbiased, balanced, and performance-based selection process.

  2. Refrigerant Management as a Service: Trane Services understands what’s needed to help with new refrigerant management rules. We can assist in mitigating the risk of fines, help with leakage prevention, and provide recordkeeping services. Trane will maintain all documentation so your team can easily share records with the EPA should you receive a request for information.

  3. Determine Financing Options: Numerous financing options and incentives exist for companies that replace equipment. Trane can assist with finding financing opportunities that make the most sense for your situation. There are low-interest loans for clean energy projects and other government initiatives and programs to help pay for equipment. We’ll work with you to identify what’s available and determine the best solution.

What does this all mean?

Refrigerant management is moving to the forefront of importance for healthcare facilities.  While regulation changes are highly nuanced and not easy to digest, they cannot be ignored. It will take a concerted effort to understand, assess, and create a plan of action. But you don’t have to go it alone. 

We can work together to create a plan to offer continued compliance with these changes today.

Trane does not provide tax, legal, or accounting advice. This material is for informational purposes only and it should not be relied on for tax, legal, or accounting advice. Tax law is subject to continual change. All decisions are your responsibility, and you should consult your own tax, legal, and accounting advisors. Trane disclaims any responsibility for actions taken on the material presented.