The New York State Department of Environmental Conservation has issued a series of regulations – both proposed and final – to implement the 2019 New York Climate Leadership and Community Protection Act, which sets ambitious goals to work towards economy-wide carbon neutrality for New York. This article examines two such regulations: revisions to the existing hydrofluorocarbon standards and reporting, and mandatory greenhouse gas reporting.
New York Climate Leadership and Community Protection Act
The New York Climate Leadership and Community Protection Act requires a reduction in greenhouse gas emissions1 statewide by 40% by 2030 and 85% by 2050 from 1990 levels.2 It created the Climate Action Council, a group that was tasked with developing a scoping plan to set forth recommendations for how the state would be able to achieve these statewide greenhouse gas emission limits.3 In December 2022, the council released its final scoping plan, an extensive document that recognized the need for “multipronged policy action, including new regulations and a major scale-up of public investments, to break through thorny market barriers and to manage significant risks to achieving the necessary equity and emissions reduction outcomes.”4 Two of the regulations the DEC issued in furtherance of the scoping plan are revisions to its existing hydrofluorocarbon standards and mandatory greenhouse gas reporting.
Part 494 Revisions: Hydrofluorocarbon Standards and Reporting
New York finalized revisions to its existing Hydrofluorocarbon Standards and Reporting Regulations found at 6 N.Y.C.R.R. Part 494 that took effect in January of this year. These revisions aim to reduce the environmental impact of refrigerants, substances that are used for cooling, heating and refrigeration with global warming potentials5 that can be hundreds to thousands of times more potent than carbon dioxide. The revisions focus on fluorinated gases, a category of gases comprised of hydrofluorocarbons, chlorofluorocarbons, and hydrochlorofluorocarbons, among others. It covers a number of activities including the use, manufacture, and sale of fluorinated gases with the purpose of a full phasedown of regulated substances to the lowest global warming potential level to achieve greenhouse gas emission reductions.
The Part 494 Revisions also act as a regulatory backstop to potential changes to federal regulation of hydrofluorocarbons, which are set forth in 40 C.F.R. Part 84. HFCs are alternatives to ozone-depleting substances such as HCFCs and chlorofluorocarbons, which are controlled under the Montreal Protocol for Substances that Deplete the Ozone Layer, a global agreement finalized in 1987 to protect the ozone layer by phasing out the production and consumption of ozone-depleting substances. In the United States, Title VI of the Clean Air Act implements the Montreal Protocol.6 As a result of the phaseout of ozone-depleting substances, HFCs became the commercial refrigerant of choice. By 2016, the Kigali Amendment to the Montreal Protocol was added to phase down the production and consumption of HFCs. In 2020, Congress enacted the American Innovation and Manufacturing Act,7 which directs the United States Environmental Protection Agency to phase down the production and consumption of specifically listed HFCs, manage these HFCs and their substitutes, and facilitate the transition to next-generation technologies through sector-based restrictions.8 The federal HFCs regulations are contained in 40 C.F.R. Part 84.
Saliently, the Part 494 Revisions include a number of restrictions more stringent than or not included in the federal HFC regulations with oftentimes more accelerated timelines for compliance. For example, the Part 494 Revisions include restrictions that are applicable to all fluorinated gases beyond the federally regulated HFCs. As another example, the federal HFC regulation seeks to phase down the production and consumption of bulk regulated HFCs over a longer period compared to the Part 494 revisions.
Overview of Prohibitions on Fluorinated Gases in Part 494
The Part 494 Revisions have broad applicability, covering the sale, import, manufacture, and activity that “otherwise enters [fluorinated gases] into commerce” in New York.9 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 global warming potential, as defined by the Intergovernmental Panel on Climate Change.10 It also prohibits the purchase and use of bulk regulated substances, or fluorinated gases in containers, in regulated sectors including the air conditioning and refrigeration sectors based on global warming potential. Part 494 sets prohibition dates based on the global warming potential of the regulated substance corresponding to the prohibition dates in the corresponding California state regulation.11 That section set a prohibition date of Jan. 1, 2025 for bulk regulated substances with a global warming potential exceeding 2,200, with an upcoming prohibition date of Jan. 1, 2030 for bulk regulated substances with a potential exceeding 1,500
Although the Part 494 Revisions do not include any explicit sector-based exemptions, the 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.12 However, the restrictions would apply to any activities that fall outside of research and development such as the purchase of bulk regulated substances for use in comfort cooling of laboratories in a research and development facility.
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 the largest equipment must report annually on their equipment, leak management, and purchases of regulated substances. Owners and operators of certain equipment that contain regulated substances must now register with the DEC. Additionally, any facility that “supplies, manufactures, produces, or distributes bulk regulated substances” that is “intended for sale or use in New York State” must comply with a separate registration requirement.13
The Part 494 Revisions also establishes 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. For example, refrigeration and air-conditioning equipment in a listed subsector14 with a refrigerant charge capacity of 1,500 pounds or greater must include an automatic leak detection system15 if the equipment is operated year-round. An owner/operator of such equipment must also register with the DEC and apply a compliant label on the equipment itself or in a location in the facility that holds the equipment.
Litigation
In April 2025, the Heating, Air-conditioning & Refrigeration Distributors International and the Air-Conditioning, Heating, and Refrigeration Institute industry associates filed a lawsuit against the DEC challenging the Part 494 Revisions.16 The groups alleged that the Part 494 Revisions should be overturned on the grounds that the DEC did not adhere to the law as the authorizing statute, did not adequately consider and discuss the costs in the regulatory impact statement that accompanied the rule, failed to minimize the economic impact of compliance on small businesses, and failed to explain why the regulation exceeded the federal minimum standards as set forth in the federal HFC regulation, among other grounds.17 The industry group petitioners seek to have the Revised Part 494 regulations vacated and set aside.
Part 253: Mandatory Greenhouse Gas Reporting
The DEC recently proposed a rule to require mandatory greenhouse gas reporting beginning in 2027 (Part 253). Part 253 would require emissions reporting in “carbon dioxide equivalent”18 using the 20-year global warming potential and the incorporation of upstream out-of-state greenhouse gas emissions from electricity and fossil fuel uses. It would impose reporting requirements for a number of entities that engage in activity in New York state, including electric power entities of all sizes, fuel suppliers, and certain facilities that emit 10,000 or more metric tons of carbon dioxide equivalent per year. It adds new obligations, including emissions verification by a third-party auditor and submission of an emissions monitoring plan for emission sources categorized as “large emission sources.” Part 253 is intended to inform other actions regarding greenhouse gas emission reduction, including serving as a framework for a future cap-and-trade program.
Reporting Requirement
Part 253 proposes reporting requirements for emission sources considered to be a “reporting entity,” which includes all suppliers of natural gas, petroleum products, and liquified natural gas, as well as all electric power entities. The reporting threshold and data that each reporting entity must report to the DEC differs based on the type of reporting entity. For example, natural gas suppliers must report greenhouse gas emissions that result from the use of natural gas sold, transferred, or delivered to end users in New York state. In contrast, owners and operators of waste to energy facilities must report emissions in New York state from stationary combustion and fugitive emissions, as well as upstream out-of-state emissions from fossil fuel use required for generation of energy imported into the state. Notably, Part 253 also regulates out-of-state activity. For example, natural gas suppliers must also report upstream out-of-state emissions from fossil fuel use in producing gas supplied to New York.
The DEC has stated it will accept greenhouse emissions data reported under the EPA's greenhouse gas reporting program at 40 CFR Part 98 for those facilities required to report under Part 98, but that all facilities that report under Part 98 that qualify as a “reporting entity” must also report under Part 253.19
Large Emission Sources
Part 253 mandates additional requirements for “Large Emission Sources,” or emission sources that exceed a certain level of carbon dioxide equivalent per year. “Large Emission Sources” include:
- Facilities in New York State that meet or exceed 25,000 metric tons of carbon dioxide equivalent per emission year.
- Waste transporters that have 25,000 MT carbon dioxide equivalent per year of emissions for out-of-state landfill and combustion facilities for all waste exported out of New York state.
- Depending on the amount of fuel supplied to New York, suppliers of natural gas, petroleum products, liquified or compressed natural gas, and coal.
The additional standards include working with third-party services accredited by the DEC to submit verification of greenhouse gas emissions data.
Key Takeaways and Next Steps
These recent regulations issued under the New York Climate Leadership and Community Protection Act introduce an additional layer of complexity to the landscape of climate regulations. In these and anticipated future regulations, companies will face not only increased reporting and recordkeeping requirements but also enhanced risks for potential enforcement actions as a result of noncompliance. Adding uncertainty are recent and anticipated lawsuits challenging the validity of any final regulations. Any judicial invalidation of all or portions of final regulations could delay or forestall their implementation, halt enforcement, and lead to reevaluation of the rulemaking process. While the suits proceed, regulated entities must stay apprised of the current compliance requirements and applicable regulations.
New York will continue to issue regulations under the new law to address climate change in furtherance of the state's goal of aggressively transitioning to a carbon-neutral economy. These regulations may have a likelihood of being more stringent than analogous federal law, which creates complexities in crafting compliance programs and modifying business operations. Compliance with this evolving regulatory landscape will be a critical priority for regulated entities in New York.
Footnotes
1. S. 6599, 2019-2020 Sen., Reg. Sess. § 1 (N.Y. 2019). Greenhouse gas is defined in the act as “carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons, sulfur hexafluoride, and any other substance emitted into the air that may be reasonably anticipated to cause or contribute to anthropogenic climate change.” § 75-0101(7).
2. Greenhouse Gas Emissions Reduction. New York State Energy Research and Development Authority, https://www.nyserda.ny.gov/Impact-Greenhouse-Gas-Emissions-Reduction.
3. ECL § 75-0103(11).
4. New York State Climate Action Council Scoping Plan, New York State Climate Action Council, *182 (Dec. 2022), available at https://climate.ny.gov/-/media/Project/Climate/Files/NYS-Climate-Action-Council-Final-Scoping-Plan-2022.pdf[hereinafter “Scoping Plan”].
5. Global warming potential is a measure of how much a given greenhouse gas warms the Earth compared to carbon dioxide (CO2) over a certain time period. GWP20 is the measure over that warming over a 20-year period while GWP100 is the same measure over a 100-year period.
6. 42 U.S.C. §§ 7671c(b)-(c), 7671d(a).
7. 42 U.S.C. §§ 7675 et. seq.
8. Background on HFCs and the AIM Act, EPA (Mar. 25, 2025), https://www.epa.gov/climate-hfcs-reduction/background-hfcs-and-aim-act
9. § 494-1.2(a)
10. The IPCC is an intergovernmental body jointly established in 1988 by the World Meteorological Organization and the United Nations Environment Program. Among other tasks, it prepares scientific and technical assessments including Assessment Reports, Methodology Reports, Special Reports and Technical Papers. See https://www.ipcc.ch/about/history/.
11. See § 494-1.4(f) (setting prohibition dates for bulk regulated substances with reference to corresponding California state regulation); see also Cal. Safety and Code. 39735(b)(2) (setting prohibition date of Jan. 1, 2025 for bulk hydrofluorocarbons with GWP exceeding 2,200). The scoping plan directed state agencies to “coordinate with other states on HFC reduction policies to ensure an effective phase-down of HFCs.” Scoping Plan at 12.
12. DEC Assessment of Public Comments at 10 (stating that no research and development exemption required because “research and development are not sectors or subsectors subject to the requirements of this rule or regulated in Section 494-1.4.”).
13. § 494-1.7(a). Any chemicals manufactured, purchased or received for a sector excluded from Part 494 such as research and development do not qualify as a “regulated substance” and so are not “bulk regulated substances” subject to Part 494. However, any semi-commercial or commercial activity without a research and development purpose – such as blending and manufacturing of fluorinated gases for commercial distribution and sale to ordinary customers – would fall under this separate registration requirement.
14. This requirement applies to refrigeration and air-conditioning equipment that contains “regulated substances” which refers to “any chemical intended for use in the sectors listed in section 494-1.4 of this Part that has a GWP20 greater than 10.” § 494-1.3(76). A “regulated substance” is not limited to HFCs and encompasses any other chemical meeting the GWP20 threshold of greater than 10. This includes ODS (CFCs and HCFCs) as well as HFOs meeting the GWP20 threshold. § 494-1.3(76).
15. The term “automatic leak detection” is defined as a “calibrated device using continuous monitoring for detecting leakage of regulated substances that alerts an operator upon detection.” § 494-1.3(7).
16. Francis Dietz, HARDI and AHRI File Lawsuit Against New York State Department of Environmental Conservation Over Amended Part 494 Regulations, AHRI (Apr. 9, 2025), https://www.ahrinet.org/news-events/news/hardi-and-ahri-file-lawsuit-against-new-york-state-department-environmental-conservation-over
17. In re the Application of Heating Air-Conditioning Refrigeration Distrib. Int'l and the Air-Conditioning, Heating, and Refrigeration Inst. against New York State Dep't of Env't Conservation, Index No. 903624-25 (Sup. Ct. Albany Cnty, April 9, 2025).
18. Carbon dioxide equivalent, or CO2e, compares the emissions of various greenhouse gases based on how long they stay in the atmosphere and how much heat they can trap. See Statistics Explained, Eurostat, https://ec.europa.eu/eurostat/statistics-explained/index.php?title=Glossary:Carbon_dioxide_equivalent
19. Mandatory Greenhouse Gas Reporting Program Fact Sheet, New York State Department of Environmental Conservation, https://dec.ny.gov/sites/default/files/2025-03/ghgreportingfactsheet.pdf
Orignally published by New York State Bar Association.
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