1. (a) Reclaimed Refrigerant Use Requirements for Manufacturers of AC Equipment Subject to Effective Date of January 1, 2025, in Table 3 of section 95374(c). Equipment manufacturers shall determine the number of pounds of certified reclaimed R-410A refrigerant use required as follows:

   1. (1) Use the following equation to determine baseline average pounds per year:

      Baseline Average Pounds of Refrigerant in 2018 and 2019 = [(pounds in AC equipment entered into California in 2018 + pounds in AC equipment entered into California in 2019) -f 2].

   2. (2) Applying the calculated baseline average pounds, determine the number of pounds of certified reclaimed R-410A refrigerant use required annually, using the following equations:

      Annual Reclaim Use Requirement for 2023 = [(10% x baseline average pounds calculated in (a)(1)) x 1.04 (a one-time growth factor of 4%)].

      Annual Reclaim Use Requirement for 2024 = [(10% x baseline average pounds calculated in (a)(1)) x 1.04 (a one-time growth factor of 4%)].

   3. (3) For AC manufacturers with no shipments into California in 2018 and 2019, the baseline years shall be 2023 and 2024. Projected shipments into California shall be used to calculate the certified reclaimed refrigerant requirements for the initial baseline report and first annual report, while actual shipments into California will be used for the final annual report. The following equation shall be used to determine the number of pounds of certified reclaimed R-410A refrigerant use required annually:

      Annual Reclaim Use Requirement for 2023 and 2024 = (10% x pounds in AC equipment entered into California per year).

   4. (4) The requirement shall be met by AC manufacturers by any or all of the following:

      1. (A) Certified reclaimed R-410A refrigerant purchased and used in new equipment.
      2. (B) Certified reclaimed R-410A refrigerant purchased and used in the servicing of existing equipment.
      3. (C) Optional Early Action Credit: Refrigerant with a GWP less than 750 used in new Other Air-conditioning equipment entered into commerce in California prior to January 1, 2025.
   5. (5) The requirement to purchase and use certified reclaimed R-410A refrigerant shall be met before July 1, 2025.

2. (b) Reclaimed Refrigerant Use Requirements for Manufacturers of VRF Equipment Subject to Effective Date of January 1, 2026, in Table 3 of section 95374(c). VRF manufacturers shall determine the number of pounds of certified reclaimed R-410A refrigerant use required as follows:

   1. (1) Use the following equation to determine baseline average pounds per year:

      Baseline Average Pounds of Refrigerant in 2018 and 2019 = [(pounds in VRF equipment entered into California in 2018 + pounds in VRF equipment entered into California in 2019) / 2].

   2. (2) Applying the calculated baseline average pounds per year, determine the number of pounds of certified reclaimed R-410A refrigerant use required annually, using the following equations:

      Annual Reclaim Use Requirement for 2023 = [(15% x baseline average pounds calculated in (b)(1)) x 1.10 (a one-time growth factor of 10%)].

      Annual Reclaim Use Requirement for 2024 = [(15% x baseline average pounds calculated in (b)(1)) x 1.10 (a one-time growth factor of 10%)].

      Annual Reclaim Use Requirement for 2025 = [(25% x baseline average pounds calculated in (b)(1)) x 1.10 (a one-time growth factor of 10%)].

   3. (3) For VRF manufacturers with no shipments into California in 2018 and 2019, the baseline years shall be 2023, 2024, and 2025. Projected shipments into California shall be used to calculate the certified reclaimed refrigerant requirements for the initial baseline report and first annual report, while actual shipments into California will be used for the subsequent annual reports. The following equation shall be used to determine the number of pounds of certified reclaimed R-410A refrigerant required annually:

      Annual Reclaim Use Requirement for 2023 and 2024 = (15% x pounds in VRF equipment entered into California per year).

      Annual Reclaim Use Requirement for 2025 = (25% x pounds in VRF equipment entered into California in 2025).

   4. (4) The requirement shall be met by VRF manufacturers by any or all of the following:

      1. (A) Certified reclaimed R-410A refrigerant purchased and used in new equipment.
      2. (B) Certified reclaimed R-410A refrigerant purchased and used in the servicing of existing equipment.
      3. (C) Optional Early Action Credit: Refrigerant with a GWP less than 750 used in new VRF equipment entered into commerce in California prior to January 1, 2026.
   5. (5) The requirement to purchase and use certified reclaimed R-410A refrigerant shall be met before July 1, 2026.

3. (c) Reporting Requirements for AC and VRF Manufacturers.

   1. (1) Initial Baseline Report. An Initial Baseline Report with self-certification shall be submitted by July 1, 2023 and include:

      1. (A) For AC Manufacturers:

         1. 1. With AC shipments into California in 2018 and 2019: The type and quantity (pounds) of refrigerant used with a GWP of 750 or greater for equipment manufactured in 2018 and 2019 for use in California; and the quantity (pounds) of certified reclaimed R-410A refrigerant required, as calculated using the equations in sections 95376(a)(1) and 95376(a)(2).
         2. 2. With no AC shipments equipment into California in 2018 and 2019: The projected type and quantity (pounds) of refrigerant used with a GWP of 750 or greater for equipment manufactured in 2023 and 2024 for use in California; and the quantity (pounds) of certified reclaimed R-410A refrigerant required, as calculated using the equation in section 95376(a)(3).

      2. (B) For VRF Manufacturers:

         1. 1. With VRF shipments into California in 2018 and 2019: The type and quantity (pounds) of refrigerant used with a GWP of 750 or greater for equipment manufactured in 2018 and 2019 for use in California; and the quantity (pounds) of certified reclaimed R-410A refrigerant required, as calculated using the equations in sections 95376(b)(1) and 95376(b)(2).
         2. 2. With no VRF shipments into California in 2018 and 2019: The projected type and quantity (pounds) of refrigerant used with a GWP of 750 or greater for equipment manufactured in 2023, 2024, and 2025 for use in California; and the quantity (pounds) of certified reclaimed R-410A refrigerant required, as calculated using the equations in section 95376(b)(3).

   2. (2) Annual and Final Reports. AC and VRF manufacturers shall submit annual reports with self-certification as follows:

      1. (A) For AC manufacturers, an annual report is due July 1, 2024, and a final annual report is due July 1, 2025.
      2. (B) For VRF manufacturers, annual reports are due July 1, 2024, and July 1, 2025. A final annual report is due July 1, 2026.

      3. (C) For AC and VRF manufacturers, annual and final reports must include the following:

         1. 1. Quantity (pounds) of certified reclaimed R-410A refrigerant used in factory for new equipment manufactured;
         2. 2. Quantity (pounds) of certified reclaimed R-410A refrigerant used or sold for use in field for charging new equipment or servicing existing equipment;
         3. 3. Optional Early Action Credit: Type and quantity (pounds) of refrigerant with a GWP less than 750 used in new AC equipment and/or new VRF equipment entered into commerce in California;
         4. 4. Optional Early Action Credit: Number and types of equipment entered into commerce in California containing refrigerant with a GWP less than 750 prior to January 1, 2025, for ACs, and prior to January 1, 2026, for VRFs;
         5. 5. Names and addresses of U.S. EPA-certified reclaimers and the quantity (pounds) of certified reclaimed R-410A refrigerant purchased and used from each entity; and
         6. 6. An attestation, certifying under penalty of perjury, signed and dated by a responsible official with authority, that under the R4 Program, the certified reclaimed refrigerant is not being purchased, used, or counted to comply with any other government requirement(s), private or voluntary program(s), or any other credit(s) or incentive(s).
   3. (3) All required reports must be submitted electronically to CARB at [email protected].

4. (d) Recordkeeping Requirements For AC and VRF Manufacturers. As of January 1, 2022, any person who manufactures equipment subject to the R4 Program requirements for sale or entry into commerce in the State of California must maintain for five years and make available, upon request by the Executive Officer, a copy of the following records:

   1. (1) All reportable information required by section 95376(c);
   2. (2) Estimated number and types of equipment distributed containing certified reclaimed R-410A refrigerant;
   3. (3) Names and addresses of distributors or servicing companies to which equipment manufacturers first sold reclaimed refrigerant; and
   4. (4) Additional substantiating documentation, such as receipts, purchase orders, contracts, and agreements.

Note: Authority cited: Sections 38560, 38562, 39600, 39601, 39734 and 41511, Health and Safety Code. Reference: Sections 38510, 38560, 38562, 38566, 38580, 39600, 39601, 39730, 39730.5, 39734 and 41511, Health and Safety Code.

History

1. New section filed 12-27-2018; operative 12-27-2018 pursuant to Government Code section 11343.4(b)(3) (Register 2018, No. 52).

2. Change without regulatory effect renumbering former section 95376 to section 95377 and adopting new section 95376 filed 1-3-2020 pursuant to section 100, title 1, California Code of Regulations (Register 2020, No. 1).

3. Renumbering and amendment of former section 95376 as section 95375, subsections (b)-(b)(2)(C) and new section 95376 filed 12-29-2021; operative 1-1-2022 pursuant to Government Code section 11343.4(b)(3) (Register 2021, No. 53). (Filing deadline specified in Government Code section 11349.3(a) extended 60 calendar days pursuant to Executive Order N-40-20.)