New EPA regulations on air conditioning refrigerant means higher prices

New regulation means price hike of up to 20% on air conditioners

Freon is being replaced thanks to an EPA regulation change meant to help the environment.

FOX 2 - Coming off a major heat wave, the summer months are already putting our air conditioners to the test. And if you find yourself in need of a new one, you might be in for a rude awakening when it comes to new rules, regulations and pricing.

The backstory:

Inside the Young Supply Warehouse in Warren, the stock sitting on pallets inside are a hot commodity. They hold the new federally mandated formula for refrigerant that is to be installed on every new air conditioner going forward.

"This is probably the biggest stash of the new refrigerant anywhere in the State of Michigan right now," said Terry Tarantine, VP of sales at Young Supply. "We’ve had refrigerant changes before, we’ve had efficiency changes before, we’ve never had anything like this."

The Environmental Protection Agency determined the old refrigerant commonly known as Freon was contributing to global warming.

"It’s 2,088 times worse than CO2," he said.

So the EPA mandated that all new units use a new cooling chemical, Compound R-454B.

"The new refrigerant has some qualifications that are outside the realm of normal, it has a flammability factor," Tarantine said.

Installation of something new means additional training.

"We have to have sensors, we have to have wires, if there is a leak - we have to turn the machine off," he said.

All of which adds to the cost - an estimated 18 to 20 percent more than the old units. And that’s before you factor in demand.

"The new refrigerant is significantly more expensive than the old," he said. "There is also a shortage of the new refrigerant."

Additionally, the EPA has mandated that no manufacturer is allowed to install a Freon-based unit past December 31, 2025.

FOX 2: "We have a new administration that prides itself on being business-friendly. Is there a chance the deadline gets pushed back again?"

"The deadline on residential equipment could get pushed back but at this point it doesn’t matter," said Tarantine. "Everybody is going to be out of the old refrigerant equipment very shortly if they are not already."

While the new refrigerant formula is new to the industry in America, it has been tested and used in Europe and Asia for years and is determined to be safe, effective and cost-saving in the long run.