A Chilling Effect on Business in New York?

The state of New York recently finalized revisions to its existing Hydrofluorocarbon Standards and Reporting regulations found at 6 NYCRR Part 494 (the Part 494 Revisions). These revisions establish requirements for fluorinated gases, a category of gases comprised of hydrofluorocarbons (HFCs), chlorofluorocarbons (CFCs), and hydrochlorofluorocarbons (HCFCs), among others. These requirements have broad applicability and cover activities including the use, manufacture, and sale of fluorinated gases contained in products or stored in containers in the state of New York. The Part 494 Revisions act as a state backstop for any potential regulatory rollback of federal HFC phase-down and product transition regulations issued under the American Innovation and Manufacturing Act of 2020 and impose broader restrictions than existing federal regulations.

Background

The New York Department of Environmental Conservation (DEC) issued the Part 494 Revisions under the New York Climate Leadership and Community Protection Act (the Act), which sets a goal of reducing greenhouse gas emissions in New York by 85% below 1990 levels by 2050. The primary purpose of the Part 494 Revisions is to adopt additional prohibitions on fluorinated gases, including a full phasedown of regulated substances to the lowest Global Warming Potential (GWP) level, to achieve greenhouse gas emission reductions. This action was recommended in New York’s Climate Action Council Climate Change Scoping Plan as a way of achieving the goals established in the Act.

Overview of Prohibition on Fluorinated Gases

The Part 494 Revisions have broad applicability. They set sector-based prohibition dates on new and retrofitted equipment, products, and substances with fluorinated gases. The specific sectors identified are Aerosols, Foam, Air Conditioning, and Refrigeration. They also establish time periods during which newly manufactured products may be sold after the prohibition date. The prohibition dates are determined by the regulated substance’s GWP, as defined by the Intergovernmental Panel on Climate Change. Prohibition dates for “bulk regulated substances,” or fluorinated gasses contained in cylinders or ISO tanks, are tied to GWP limits established by California’s fluorinated gas regulations, which are incorporated by reference into the Part 494 Revisions.

Although the Part 494 Revisions do not include any explicit sector-based exemptions, DEC, in its “Assessment of Public Comments” on the Part 494 Revisions, explained that the restrictions of Part 494 do not extend to certain activities such as research and development and industries such as semiconductor manufacturing.¹

Additional Requirements

The Part 494 Revisions also include labeling, reporting, and recordkeeping requirements. Fluorinated gas manufacturers must provide written disclosures regarding the regulated substances to buyers and the public as a label or other form of documentation. Owners and operators of certain equipment that contain regulated substances must now register with DEC. Owners and operators of the largest equipment must report annually on their equipment, leak management, and purchases of regulated substances. The Part 494 Revisions also establish a Refrigerant Management Program that focuses on the management of existing fluorinated gas emission sources, specifically large, commercial equipment. The program establishes requirements for owners or operators of certain refrigeration and air-conditioning equipment with requirements differing depending on the equipment’s refrigerant charge capacity.

The Part 494 Revisions introduce an additional layer of complexity to the landscape for fluorinated gas regulation. Compliance with this evolving landscape of state and federal regulations will be a critical priority for chemical companies and those businesses in New York that rely heavily on air conditioning and refrigeration, such as those in the perishable food business. The Environmental Practice Group at Arnold & Porter is closely monitoring developments in fluorinated gas regulations and clients should contact any of the authors of this post for further insights and guidance.

© Arnold & Porter Kaye Scholer LLP 2025 All Rights Reserved. This Blog post is intended to be a general summary of the law and does not constitute legal advice. You should consult with counsel to determine applicable legal requirements in a specific fact situation.