HVAC Requirements and Regulations: What You Need to Know for 2023 and Beyond

Environmental HVAC requirements

• Current HCFC regulations

In a concerted effort to protect the environment, the U.S. worked to phase out hydrochlorofluorocarbons (HCFCs), a certain class of ozone-depleting substances, beginning in the mid-1990s. One of the most well-known HCFCs is the refrigerant HCFC-22 or R-22, frequently used in air conditioning units manufactured before 2010, and more commonly known by the brand name Freon.

As a party to the 1987 Montreal Protocol, an international treaty to protect the ozone layer, the U.S. follows a HCFC phaseout schedule established through the federal Clean Air Act. The most recent phaseout took place in 2020 and eliminated production or importation of HCFC-22. The next, and final, phase in 2030 eliminates production and importation of all HCFCs.

This phaseout means HVAC companies servicing older air conditioning systems or heat pumps using HCFC-22 must use recycled, reclaimed, or previously produced HCFC-22. The EPA isn't requiring homeowners to convert (or retrofit) an HCFC-22 system to another refrigerant, unless they choose to do so. When it's time for customers to upgrade their HVAC system, use ServiceTitan HVAC Software to explain good-better-best options so customers can make fully informed decisions.

• New HFC regulations

The HVAC industry must now prepare for more regulatory changes as the government seeks to phase down other widely used refrigerants. 

At the end of 2020, Congress passed the American Innovation and Manufacturing (AIM) Act, which directed the Environmental Protection Agency to phase down production and consumption of listed hydrofluorocarbons (HFCs), maximizing reclamation and minimizing releases from equipment, and facilitating the transition to new technologies.

Popular HFC refrigerants include R-32, R-125, and R-143a. The refrigerant R-410a is an HFC blend of R-32 and R-125 (used in place of HCFC-22 in newer residential and commercial air conditioning units), but it has a high global-warming potential (GWP).

HFCs, while classified as weak ozone-depleting substances, are strong greenhouse gases that contribute to global warming, according to a NASA study. The AIM Act establishes a timeline to reduce HFC production and consumption by 85% within the next 15 years. The EPA plans to finalize its proposed rule later this year. Just like in the phase-down of HCFC-22, the EPA is not prohibiting the use of any specific HFC or HFC blend or requiring equipment changes, according to the agency.

The Biden administration also is seeking to ratify the Kigali Amendment to the Montreal Protocol, a global agreement to phase down the production and consumption of HFCs.

• State regulations

As climate issues take center stage, several states aim to reduce HFC emissions. California was the first in the nation to pass regulations in December 2020, and the state wants to reduce HFC emissions 40 percent below 2013 levels by 2030. The regulations affect commercial and industrial stationary refrigeration units, and commercial and residential air conditioning units.

Other states taking action include: Colorado, Connecticut, Delaware, Hawaii, Maine, Maryland, Massachusetts, New Jersey, New York, Oregon, Pennsylvania, Rhode Island, Vermont, Virginia, and Washington, according to the Natural Resources Defense Council. As a result of varied regulations, HVAC companies must stay current at state and federal levels.

• Canadian regulations

In 2017, Canada ratified the Kigali Amendment to reduce greenhouse gas emissions. Canada's phase-down began in 2019 with a 10% reduction in consumption of HFCs, and future reductions are slated for 2024, 2029, and 2034, all to achieve an 85% reduction in HFC consumption by 2036, according to its regulations.

Canadian regulations apply to companies manufacturing, importing, exporting, using, and selling HFCs alone or in a blend, as well as companies manufacturing, importing, and exporting products containing or designed to contain HFCs, according to the Canadian government.

HVAC efficiency standards

The HVAC industry remains at the forefront when it comes to making changes to meet energy-efficiency standards. Beginning in 2023, new residential central air conditioning and air-source heat pump systems must meet new minimum energy-efficiency standards, according to the U.S. Energy Information Administration (EIA).

The new HVAC standards will require a seasonal energy- efficiency ratio (SEER) of no less than 14 SEER for residential systems in the northern part of the country and 15 SEER in the southern portion, according to the EIA. For air-source heat pumps, which use a heating seasonal performance factor (HSPF) rating, the EIA raised the minimum to 8.8 HSPF.

The passage of the 2021 International Energy Conservation Code (IECC), which states can adopt, changes efficiency standards in HVAC building codes for new construction to increase building performance and reduce emissions. The energy code includes testing and equipment efficacy requirements for HVAC systems in residential and commercial buildings.

HVAC tech certification

When it comes to HVAC technician certification, technicians who maintain, service, repair, or dispose of equipment that could release refrigerants into the atmosphere must be certified under Section 608 of the Clean Air Act.

The EPA developed four types of certifications for technicians, who must pass an EPA-approved test administered by an EPA-approved certifying organization to earn certification. This certification does not expire.

Licensing requirements for HVAC technicians vary by state. For many, technicians may complete an accredited program or an HVAC apprenticeship. Many associations and organizations assist with certification and training, including North American Technician Excellence (NATE), the Air Conditioning Contractors of America (ACCA), and the American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE).

Workforce shortages

The EGIA Foundation (Electric and Gas Industries Association), an organization that promotes HVAC careers, estimates 115,000 HVAC-R workers will be needed by 2022—but training and education programs graduate only a small fraction of that number each year. 

Because of this HVAC technician shortage, companies must retain employees and recruit the best talent. One strategy? Create a positive company culture to keep and attract employees.

“The culture is everything," says Joe Kronenwetter, Service Manager at Rescue Air Heating and Cooling in Texas, in a recent ServiceTitan Growth Series webinar, an eight-week masterclass series for the trades. “It’s not based on what they can give the company—it’s what we can give to them.” 

Value your employees by offering training and providing opportunities to learn new skills on the job, so you can promote your employees from within.

Smart HVAC

As the Internet of Things (IoT) transitions from trendy to the norm, your HVAC company must be on the leading edge of smart HVAC technology. 

From smart thermostats to smart ductless mini splits, today's modern homeowner wants the best indoor air quality from products that deliver energy efficiency and energy savings. Offer the highest quality products and ensure techs communicate the value to customers.

A fully updated ServiceTitan Pricebook, complete with photos and product descriptions, enables technicians to help customers make the right choices, see upgrade options, and increase ticket sales. With HVAC proposal software, techs can create branded estimates on the spot and close the deal in the field.

Cloud-based HVAC software

Now more than ever, innovation and adaptability are key to success. With many businesses operating remotely or with a reduced workforce, cloud-based HVAC software like ServiceTitan allows you to seamlessly operate from anywhere.

Use dispatch software to send the best technician to a particular service call, optimizing your team's schedule to prepare for complex installation or repair jobs. Let customers know when a tech will arrive at their home, so they can maximize their schedules. Automate your HVAC operations to increase efficiency, and optimize company growth.