Updated federal rule removes installation deadlines and reduces cost pressures.

The Big Picture 

On May 21, 2026, the Environmental Protection Agency (EPA) issued its final rule on refrigerants, Phasedown of Hydrofluorocarbons: Reconsideration of Certain Regulatory Requirements Promulgated Under the Technology Transitions Provisions of the American Innovation and Manufacturing Act of 2020, which slows the federally mandated transition away from certain HVAC systems due to the negative environmental impact of hydrofluorocarbons. 

The changes update the 2023 Technology Transitions Rule under the American Innovation and Manufacturing (AIM) Act and reflect a broader effort to roll back rigid requirements that increased costs and limited operational flexibility. The White House also released a fact sheet, outlining how the revisions are expected to lower regulatory burdens, expand equipment options and reduce costs. The fact sheet proposes changes to the 2024 Emissions Reduction and Reclamation Rule, targeting broad leak repair requirements for certain large-scale systems. 

Together, these actions represent a significant victory for the industry’s advocacy. For years, the National Apartment Association (NAA), alongside its partner, the National Multifamily Housing Council, urged the EPA to extend the refrigerant transition period for residential air conditioning and heat pump products and recognize the implementation challenges faced by rental housing providers.  

Background 

Under the original 2023 Technology Transitions rule, the EPA set firm deadlines on the manufacture and installation of HVAC and refrigeration equipment using higher global warming potential (GWP) refrigerants. For residential and light commercial systems, the rule prohibited the installation of certain equipment after January 1, 2026, even if that equipment had already been manufactured or purchased. The revised rule removes that cutoff, allowing equipment manufactured or imported before January 1, 2025, to be installed until inventory is expended. This change allows housing providers to complete projects without redesigning systems or replacing usable equipment. This final rule will go into effect on July 27, 2026.  

Deeper Dive 

These changes reduce financial risk for providers by easing pressure on HVAC costs, a major expense in both development and operations. Under the prior rule, compliant equipment purchased in advance could have become unusable, even if it remained fully functional and was compliant at the time of purchase. The revision restores flexibility and better aligns installation timelines with real-world project needs. Separately, the Trump Administration has proposed narrowing leak repair requirements under the 2024 rule. Combined, the Administration estimates that these changes could save businesses and consumers more than $2.4 billion, helping relieve cost pressures that impact housing affordability. 

NAA’s Perspective 

While the announced flexibilities in federal compliance are welcome news, the long-term transition to lower-GWP refrigerants and newer HVAC technologies remains underway. Housing providers should continue gradually planning for this transition and contact their supplier partners for additional guidance and planning information.   

NAA appreciates the EPA and Trump Administration’s efforts to remove inflexible deadlines and expand compliance flexibility. This action reflects longstanding advocacy from NAA and NMHC, including prior comments urging the EPA to provide greater flexibility in refrigerant transition timelines. NAA will continue working with policymakers to ensure environmental goals are balanced with housing affordability and the operational realities facing rental housing providers.