California pilot to boost contractor payments for recovered refrigerant

The California Air Resources Board (CARB) is launching a pilot program to boost refrigerant recovery and reclamation — by paying HVAC contractors more for recovered refrigerant.

Why it matters: Although state and federal laws prohibit technicians from venting refrigerants while servicing equipment, “compliance is low,” the state notes.

• “It’s the best known non-secret in the industry that venting still occurs,” Kate Houghton, a senior vice president at refrigerant reclaimer Hudson Technologies, tells Homepros, adding that according to 2020 EPA data, reclaimed refrigerant accounted for less than two percent of total U.S. refrigerant sales.
• Up to $5 million in funding is available for the program, and contractors could receive “up to double normal payments,” Houghton says, which could jumpstart the market for reclaimed refrigerant and help reduce emissions.  

How it works: California’s ‘Equitable Building Decarbonization’ program provides and installs heat pumps and other energy-efficient equipment for low-income households at minimal or no cost. 

• As replacements are made, “CARB anticipates that this program alone could remove over 10,000 refrigerant-containing HVAC units,” program materials say. 
• Participating contractors will engage with the pilot program — called the ‘REFRESH’ program — to ensure that refrigerants also get recovered. 

Between the lines: Two EPA-certified refrigerant reclaimers — New Jersey-based Hudson Technologies and Ohio-based A-Gas — have been selected to train participating contractors about refrigerant recovery and how to receive buyback payments, which can be kept by the company or directed to individual technicians.

• CARB is “contributing payments on top of the payments that Hudson already makes,” Houghton explained. “Hudson will buy every refrigerant from those participating contractors… [but] the bonus payments are limited to R-22 and R-410A.” 

Go deeper: “Because we work with different contractors across the country, we understand their unique challenges, namely access to recovery cylinders and a way to monetize their time and assets when they recover used refrigerants,” Betsy Harbison, Director of Marketing at A-Gas, told Homepros in a statement.

What they’re saying: Aanchal Kohli, CARB’s Manager of HFC Policy, told Homepros that the REFRESH program was developed to help comply with a California bill which prohibits the sale of several refrigerants, including R-410A in most air conditioners and heat pumps, beginning in 2030. 

• “The market is going to be scrambling, and we want to make sure that there’s a healthy reclamation market so that that reclaimed refrigerant is actually available on the market,” Kohli said.

The big picture: The REFRESH program, and a similar pilot launched this fall in Washington, D.C., are the first of their kind. “Our goal is to expand the program to more utilities across the state,” Kohli added.

• In a news release, Houghton expressed optimism “as more state and local governments adopt legislation mandating the use of reclaimed refrigerant.”

What’s next: The pilot program will launch in early 2026.