Heating, Air-conditioning & Refrigeration Distributors International (HARDI) applauds 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). This decision marks a significant victory for the HVACR industry and represents a critical milestone in HARDI’s ongoing efforts to support practical and fair regulations for wholesale distributors.

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.

After extensive dialogue between HARDI and the EPA, coupled with legal proceedings that challenged the necessity and feasibility of the QR code requirement, a favorable outcome was reached. In 2023, a federal court ruled in favor of HARDI’s lawsuit against the EPA, citing the agency’s lack of statutory authority to implement QR code tracking on refrigerant cylinders. This victory was pivotal for the industry, highlighting the importance of balanced, business-friendly policies. Following the court’s decision, the EPA re-proposed the tracking requirement under a different section of the American Innovation and Manufacturing Act (AIM Act); with today’s release of the final rule, the EPA has formally chosen to drop the QR code proposal.

“HARDI is proud to have played a leading role in this outcome, ensuring that the voices of HVACR distributors were heard at the highest levels of policymaking,” said HARDI CEO Talbot Gee. “This victory, particularly the removal of the QR code tracking requirement, is a testament to our proactive efforts to find workable solutions for our members regarding implementation of the AIM Act. However, there is still an urgent need to update technician certification requirements to account for changes in the industry, which was not included in this regulation. We remain committed to working with federal regulators to craft practical, effective policies that safeguard the environment without damaging our members' operations.”

The decision also underscores HARDI’s commitment to proactive advocacy on behalf of its members, further establishing its role as a key player in shaping regulations that affect the HVACR wholesale industry. This victory will allow distributors to continue focusing on providing vital products and services to their customers without the added complexity and costs associated with the proposed QR code tracking system.