HARDI Supports EPA Decision to Drop QR Code for Refrigerant Cylinders

Heating, Air-Conditioning, and Refrigeration Distributors International (HARDI) supports the U.S. Environmental Protection Agency (EPA) for deciding not to move forward with its proposed requirement to implement QR code tracking for refrigerant cylinders in the final rule regulating the management of hydrofluorocarbons (HFC).

The decision is a victory for the HVACR industry and represents a milestone in HARDI’s ongoing efforts to support practical and fair regulations for wholesale distributors, the association said.

The QR code tracking requirement, initially proposed by the EPA in 2021 as part of its regulatory framework for phasing down the production and import of HFC refrigerants, posed significant logistical and financial challenges to distributors within the HVACR industry. HARDI has long advocated for alternative solutions that maintain environmental protections while avoiding the imposition of undue burdens on businesses.

International effort to phase out HFCs

The case stems from an international agreement to phase out the use of HFCs because the substances are so damaging to the environment. The EPA adopted various rules to implement the phasedown, including the QR code requirement, according to case background written by the environmental-law firm Beveridge and Diamond.

The EPA argued that the QR codes placed on cylinders for tracking were necessary to reduce HFC smuggling from abroad because customs enforcement agents could track each shipment. Shipments of disposable cylinders can circumvent the allocation program because HFCs can be hidden in small containers and imported.

The U.S. Court of Appeals for the D.C. Circuit ruled last year that EPA has the authority to regulate HFCs, but the legislation did not go so far as to give the EPA power to implement the tracking requirement.

Opponents of the container policy argued it was expensive and ineffective because smugglers are already using refillable containers to evade enforcement in other countries.

DOJ files first smuggling charges

The U.S. Department of Justice said it filed the first prosecution of smuggling HFCs in March. A San Diego man was charged with smuggling greenhouse gases after buying them in Mexico.

The indictment alleges the man smuggled them into the U.S. in his vehicle, concealed under a tarp and tools. The man then posted the refrigerants for sale on OfferUp, Facebook Marketplace and other sites.