Alert – NY HFC Regulation Final Rule_1-13-2025 Alert – DOE Final Test Procedure for Consumer AC-HP_1-6-25 Alert - CEE Finalizes Spec for 2025_10-15-24 Alert - AIM Refrigerant Management Final Rule Alert - AIM Sector transitions_12-9-22 Alert - CA Restaurant Association V Berkeley_07-1-22 Alert - California BAAQMD Update_3-16-23 Alert - California Regulatory Update_10-10-22 Alert - California Regulatory Update_10-11-22 Alert - DOE Consumer Furnace Rule Publication and Challenge_12-27-23 Alert - DOE Consumer Furnace Rule_10-2-23 Alert - DOE CUAC CUHP_4-27-23 Alert - DOE Final Rule for Large Commercial AC-HP_6-11-24 Alert - EPA Sector GWP Limits Final Rule Update_12-1-23 Alert - EPA Sector GWP Limits Final Rule_10-11-23 Alert - EPA Sector GWP Rule AC-HP Systems Sell Through_1-5-24 Alert - EPA SNAP 26 Final Rule_5-30-24 Alert - Legislative State Update_5-26-23 Alert - Manchin Schumer Deal_8-1-22 Alert - NRCan Amendment 17_12-21-22 Alert - SEC Reporting Rule_03-08-24 Alert - WV v EPA Breaking News Update_7-1-22

As the new DOE Requirements Take Effect Jan. 1, 2023, Rheem will be ready with the all-new Endeavor^™ Line of Furnaces, Air Conditioners, Heat Pumps and Air Handlers. So even as regulations get tougher, your job gets easier.

Endeavor Features & Benefits

Easy Fit: We raised efficiency without drastically increasing equipment size
Easy Installation: Bluetooth connectivity for easier, more accurate commissioning
Easy Service: Better accessibility and Bluetooth diagnostics
Easy Registration: Register warranties and claim rewards via mobile app
Quieter Operation: Brushless motors and acoustics-conscious design
More Choices: Industry-leading Heat Pump selection plus all-electric solutions
Smart Home Compatibility: EcoNet^® technology available in more products

Keep checking back to see how the all-new Endeavor Line is ready to meet and exceed the demands of tomorrow.
Select models available now for Distributor order.

Recap: 2023 Minimum Efficiency Standards

As of 2023, newly manufactured residential and commercial equipment sold in the U.S. must meet minimum efficiency standards set by the DOE. For single-phase residential and light commercial central air conditioning systems, the M1 efficiency requirements vary by region.

Appendix M1: A System of Measurement The new test method is commonly referred to as Appendix M1 and replaced Appendix M in the Code of Federal Regulations. For decades, we used the classic metrics of SEER, EER and HSPF. Now, you’ll hear these metrics referred to as SEER2, EER2 and HSPF2.

What About Commercial? Commercial single-phase air conditioners and heat pumps <65k BTU/HR (typically those in the 3-, 4- and 5-ton range) follow the residential standards. Commercial systems ≥65k BTU/HR also have new minimum efficiency levels with compliance based on date of manufacture. Note that while the metrics of IEER and COP did not change, IEER and COP minimum efficiency levels increased from the DOE 2018 standard. EER requirements remain unchanged. See the table “DOE 2023 6 to 30 tons” for more details. The M1 requirements will apply to small 3-phase systems 5 tons and below starting January 1, 2025.

Navigating Regional Standards The 2023 requirements apply nationally—unless superseded by a regional standard. The regional standards apply in the Southeast and the Southwest, and there is a key difference between the national and regional standards when it comes to enforcement. While both had a compliance deadline of January 1, 2023, the national deadline is based on the equipment date of manufacture, while compliance to the regional standards is based on the date of installation. Heat pumps do not have regional efficiency criteria, so the national criteria apply in all states.

Compliance for Existing Inventory AFTER JANUARY 1, 2023: Outdoor AC units manufactured prior to January 1, 2023, rated using Appendix M, can be installed in the Southeast and Southwest Regions, if the lowest FTC label rating (coil-only) is at or above the new minimum efficiency requirements on a conversion basis. Ratings based on Appendix M will need to be cross-referenced with the corresponding Appendix M1 values.

Understanding Compliance by Region: North, Southeast & Southwest

North

Southeast

Southwest

For the states in the North region, compliance is based on date of manufacture. Therefore, if a product, as part of an AHRI-rated matched system, was compliant on the day it was produced, it can continue to be sold and installed anywhere in the North region.

North Region Existing Inventory: Units manufactured prior to 1/1/2023 can continue to be installed, provided the equipment was compliant at the time it was produced.

For split air conditioner systems in the Southeast states, a regional standard (as highlighted in red on the table) supersedes the national requirements. Therefore, compliance for that product type is based on date of installation. Compliance for all other product types is based on date of manufacture.

Southeast Region Existing Inventory The least efficient coil-only rating listed on the EnergyGuide Label, of any AC split system installed on or after 1/1/2023, must meet 2023 Efficiency Requirements on a cross-reference basis for SEER.

Heat pumps and packaged AC systems manufactured prior to 1/1/2023 can continue to be installed, provided the equipment was compliant at the time it was produced.

For split and packaged AC and packaged gas/electric (GE) in the Southwest states, a regional standard (as highlighted in blue on the table) supersedes the national requirements. Therefore, compliance for those product types is based on date of installation. Compliance for the other product types is based on date of manufacture.

Southwest Region Existing Inventory: The least efficient coil-only rating listed on the EnergyGuide Label, of any split and packaged AC system or packaged GE system installed on or after 1/1/2023, must meet 2023 Efficiency Requirements on a cross-reference basis for SEER and EER.

Heat pumps manufactured prior to 1/1/2023 can continue to be installed, provided the equipment was compliant at the time it was produced.

HOW THE U.S. GOVERNMENT WILL ENSURE COMPLIANCE FAQs Download a PDF of this guide

2025: Technology Transition Rule on GWP Limits

In October 2023, the U.S. EPA finalized the Technology Transitions Restrictions on the Use of Certain Hydrofluorocarbons (HFCs) under Subsection (i) of the AIM Act, establishing GWP limits for the applications that use HFCs. The Technology Transitions Rule contains a 700 GWP limit for air conditioners and heat pumps by 2025, prohibiting the use of R-410A, which has a GWP of 2,088. This rule has had quite the journey, going back to 2020 when the AIM legislation was enacted. Responding to recent concern by industry, EPA signed an interim final rule in December 2023, regarding the installation compliance date for residential heat pump and air conditioning systems. The amendment allows for installation of higher-GWP HFC equipment manufactured or imported before January 1, 2025, to be installed until January 1, 2026.

Designing for Sustainability with Low GWP For 2025, the Environmental Protection Agency (EPA) has set a global warming potential (GWP) limit of 700 for refrigerant used in heating and cooling systems. This new requirement will result in a 78%³ lower GWP than previous-generation refrigerants—with only minimal changes to system installation. For us, this is another step toward our continued sustainability goal of reducing greenhouse gas emissions, while still delivering an exceptional level of energy efficient, dependable comfort. ¹Air Conditioning, Heating & Refrigeration Institute. ²Heating, Air Conditioning and Refrigeration Distributors International. ³When comparing the GWP of R-454B to R-410A refrigerant.

Compliance Based on Equipment Type It is essential to get familiar with the regulation specifics. EPA delineates the equipment categories of Products, Systems and Components, and the rules are different for each. Packaged equipment are considered “Products” and have a three-year sell-through of existing inventory. “Systems” are considered a grouping of components, such as a split ducted AC/HP or mini-split, and that compliance is based on system installation, but equipment made before 2025 can now be installed through 1/1/26. “Components” are the major elements such as an indoor coil, outdoor condensing unit or air handler, and can be manufactured for R-410A indefinitely as long as they are only used for the service of already-installed equipment and labeled as such.

California and Washington HFC Rules Overlap With EPA There is no federal preemption of state authority in the American Innovation and Manufacturing (AIM) Act. Both California and Washington have finalized state HFC rules, and other states are also considering doing the same. It’s important to note any differences between local and federal rules for your state, as the more stringent requirement prevails.

¹Compliance is due by Jan. 1, 2026, if UL 60335-2-40 Edition 4 is adopted by the WA State Building Code Council by Dec. 31, 2023; otherwise 24 months following the adoption of the updated code. ²R-410A condensing units manufactured prior to 1/1/2025 can continue to be offered for service repair only. NOTE: In CA, R-410A condensing units manufactured prior to 1/1/25 can continue to be sold for service after the compliance date.

Basics of A2Ls

The most common low-GWP alternatives to R-410A are classified by ASHRAE as mildly flammable, or A2L. Due to their mildly flammable characteristics, A2L refrigerants require updates to standards and building codes to allow for their safe installation.

Building Code & Legislation Updates In order to install appliances containing flammables in buildings, codes must be modified to allow it. Updated standards and model codes need to be adopted by the states on an individual basis, and there’s been a tremendous amount of progress on this as we prepare for 2025. To view where state and local building codes have been updated, or where legislation has passed to allow equipment using A2L, visit AHRI’s A2L Refrigerant Building Code Map.

On The Horizon

Furnace Efficiency Rule On December 18, 2023, the DOE published the final rule for energy conservation standards of consumer furnaces, making official the new minimum annual fuel utilization efficiency (AFUE) of 95% in the Federal Register. Compliance with the amended standards will be required on December 18, 2028. NOTE: The gas industry has launched a lawsuit against DOE, challenging the final rule. The result of the legal challenge will likely take some time to resolve, but stakeholders should continue to prepare for the 2028 compliance date as stated in the rule.

Commercial HVAC Efficiency Changes DOE is preparing regulations that will bring new metrics and a 28–35% expected increase in minimum efficiency for large commercial air conditioners and heat pumps. The traditional efficiency rating metrics of IEER and COP will be replaced by IVEC and IVHE, reflecting changes in the DOE test procedure that incorporate additional sources of energy consumption. The anticipated rules will be required for all new large commercial equipment by January 1, 2029.

ENERGYGUIDE LABELING
101 & 2023 CHANGES

ENERGYGUIDE 101

The FTC (Federal Trade Commission) first issued an Energy Labeling Rule in 1979. The Rule requires manufacturers of major home appliances to attach yellow EnergyGuide Labels to products and post label information to supporting brochures and websites.

Consumers should use EnergyGuide Labels to comparison shop for the best in energy-efficient solutions.

2023 EnergyGuide Label Examples

Split System Air Conditioner,
Cooling Only, Northern States

Split System Heat Pump,
Cooling & Heating, All States

EnergyGuide Labels are required to list:

Estimated annual energy cost
Product’s energy consumption / energy efficiency rating as determined by the Department of Energy (DOE) test procedures

A range that shows the highest and lowest energy costs or efficiency ratings

WHAT IS CHANGING? Effective January 1, 2023, new DOE efficiency descriptors (SEER2, HSPF2) and updated standard energy efficiency ranges (shown in chart) are required on packaged and split air conditioner and heat pump EnergyGuide labels. The new EnergyGuide label, which began appearing on 2023-compliant products during 2022, shows the SEER2 and HSPF2 efficiency rating specific to your air conditioner and heat pump. The rating, which for a given model can vary depending on the coil installed with the unit, represents the least efficient combination up to the highest efficiency when matched with a furnace or air handler.

ENERGY STAR

ENERGY STAR^® is the government-backed symbol for energy efficiency and provides simple, credible and unbiased information that consumers and businesses rely on to make well-informed decisions that help them save money and protect the environment. The ENERGY STAR logo appears on all qualified products that meet specific standards for energy efficiency. The U.S. EPA ensures that each product that earns the label is independently certified. 2023 Changes For 2023, as the test procedures are changing, so too are the qualifications for a product to be ENERGY STAR certified. In fact, an air conditioner or heat pump that earned the ENERGY STAR symbol before may no longer qualify. For example, the minimum efficiency for an ENERGY STAR-certified air conditioner in 2021 was 15 SEER. In 2023, that number will be XX.X SEER2, which is closer to 16 SEER in the old rating system.

NATE-certification & the Importance of Properly Trained Contractors

When it comes to training and certifications, everyone connected to the HVAC industry benefits —contractors, technicians and even homeowners. North American Technician Excellence (NATE) is the nation’s largest nonprofit certification organization for heating, ventilation, air conditioning and refrigeration (HVACR) technicians. Headquartered in Arlington, VA, NATE was developed by and has been supported by the industry for over 20 years.

What Are the Benefits? NATE-certified contractors and technicians receive a high ROI. They’re considered valuable to employers and preferred among customers. So NATE-certified contractors and technicians are sought out. As such, their salaries are higher than their non-certified counterparts. Homeowners using NATE-certified contractors and technicians receive:

• Higher satisfaction – Thanks to fast service and fewer callbacks and warranty returns
• Increased confidence
• Lower utility bills – Because their systems are operating more efficiently
• Peace of mind – From knowing that their systems are in good hands

What Is the NATE Program & Who Is It For? Developed by a committee of industry experts, the NATE program is a series of exams that result in either certificates or full certifications and is designed for contractors and technicians of all experience levels. The entry-level tests, Ready-to-Work and HVAC Support are intended for those with less than 12 months of experience. Those who pass the tests earn a certificate, that identifies them as someone knowledgeable and trained in the field. More rigorous exams are required to receive a full NATE certification. Who is Eligible for Full NATE Certification & What Does It Entail? NATE certification is recommended for contractors and technicians with two or more years of experience. There are two certification testing pathways available: the Certified HVAC Professional (CHP-5) pathway, a series of five exams, or the Core and Specialty exam pathway, a series of two exams. For more information on either of these pathways, visit the NATE website. Are There Training Courses Available to Help with Exam Preparation? NATE has partnered with lnterPlay Learning to launch NATE Training Academy, which allows contractors and technicians to train for NATE certification exams online when convenient for them. The online training includes 3D and VR simulations that mimic in-field experience. Contractors and technicians can start prepping for NATE's Certified HVAC Professional exam today. Additionally, this fall, training will be available for NATE's Low-GWP refrigeration certification.

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Recap: 2023 Minimum Efficiency Standards

2025: Technology Transition Rule on GWP Limits

Basics of A2Ls

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ENERGYGUIDE LABELING101 & 2023 CHANGES

ENERGY STAR

NATE-certification & the Importance of Properly Trained Contractors

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ENERGYGUIDE LABELING
101 & 2023 CHANGES