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As part of the ongoing implementation of New York State’s Climate Act, the NYS Department of Environmental Conservation has adopted an amended Part 494 regulation on hydrofluorocarbons, 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.
Tristan Schwartzman, Goldman Copeland
To understand the implications of this mandate, Facility Executive spoke with Tristan Schwartzman, Principal and the Director of Energy Services at Goldman Copeland, the New York City-based consulting engineering firm.
Facility Executive: What is expected of commercial property owners to comply with this regulation? What information needed for reports on refrigerant leaks?
Tristan Schwartzman: Beginning in March 2026, owners must report annual refrigerant leakage rates for registered “large” equipment: 1,500 pounds of refrigerant or more, typically chillers of about 500 tons of capacity or more. By June 2026, owners will be required to register any “medium-size” equipment—from 200 pounds of refrigerant up to 1,499 pounds, which could include units as small as 40-50 tons of capacity—and must report annual leakage rates by March 2027. Medium-size equipment would include modular chillers or packaged air conditioning units that cover one floor. By June 2028, “small” equipment, from 50 pounds to 199 pounds, must be registered.
Generally speaking, any refrigerant added to the system is the equivalent of what has leaked. What’s needed, therefore, are any maintenance or service invoices for the previous year and any invoices for refrigerant bought for the relevant units. It’s best to keep a list of refrigerant purchases and a log of refrigerant added to systems—and to note which refrigerants were purchased, itemized by unit. It’s also important to know what refrigerant is in storage, as including refrigerant in storage will reduce the leakage rate.
FE: Why did the NYS Department of Environmental Conservation decide to amend Part 494 regulation on hydrofluorocarbons (HFCs)? How does this support New York State’s Climate Act?
TS: The State amended Part 494 in order to quantify and reduce the leakage of refrigerants that include HFCs. In the early 1990s, restrictions were placed on the use of R11 refrigerants, and later on R22 refrigerants. The questions that the State now wants to answer are: What refrigerants are being used? How much is being used? And how much is released into the atmosphere through leakage? Understanding this will enable the State to shape policy to control its effects.
FE: What are some challenges property owners may face when it comes to complying with this regulation?
TS: There are two primary challenges: first, understanding what equipment is covered; second, having the technical knowledge to fulfill the mandate’s requirements. While the definition of large, medium, and small equipment is clearly stated in terms of pounds of refrigerant, how that correlates to tons of capacity is less clear. Goldman Copeland’s own analysis shows that 1-3 pounds per refrigerant ton is a good estimate. For Variable Refrigerant Flow (VRF) systems, the comparable is 4+ pounds per refrigerant ton. In addition, knowing where that equipment is located can be challenging. A wide range of smaller buildings could still trigger the requirements, including multi-family buildings with chiller plants, religious institutions, and larger retail spaces. Some larger commercial tenants may also trigger the requirements with their own independently operated equipment.
While the online registration form is relatively straight-forward, fulfilling it requires some understanding of chillers, packaged units, and VRF systems—and how many evaporators, condensers, compressors, and expansion valves there are. The technical details will be challenging for smaller owners and those trying to complete the documentation independently. At Goldman Copeland, we have, therefore, created a service to address the requirements of the new Part 494 mandate. Service contractors can provide similar services, including repairing the equipment and refilling the refrigerant.
FE: Is there a difference when it comes to reporting leaks from large equipment vs. medium-sized equipment, after it’s required to register medium-sized equipment?
TS: The leakage rates will depend heavily on the age of the equipment and maintenance history. The biggest difference on reporting leaks between large and medium-sized equipment may well be the challenge of capturing the data. Because there is so much more medium-sized equipment in operation, capturing the leakage rates for all of it will be daunting. That challenge is complicated further by the broader range of building types in which the medium-sized equipment is located.
FE: What else is important for facility executives and managers to know about this regulation?
TS: 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. The cost of non-compliance, therefore, adds up quickly. Building owners should determine what requirements apply to their equipment and develop a plan for meeting those requirements annually. Whether they do so by using in-house staff or outside services, the cost of compliance will be dramatically less than the cost of non-compliance.