CREJ: The Impact of Upcoming Refrigeration Regulations

Understanding the Impact of Upcoming Refrigeration Regulations

Mark Garigliano, Director of Estimating and Preconstruction in our Colorado region, recently contributed an insightful article to the Colorado Real Estate Journal discussing the imminent changes in refrigeration regulations and their potential impact on the construction industry specifically for renovations to existing multifamily and commercial real estate assets.

The article sheds light on the challenges and opportunities that developers, owners, general contractors, and engineers will face as the new regulations come into effect at both national and local levels.

What’s happening? 

The impending refrigeration regulations will replace R410a refrigerant with R454b or R32 to address emissions concerns. This transition will have a significant impact on building codes, requiring adjustments in equipment and manufacturing processes. It’s important to understand the changes and their potential impacts on lead times, costs, implementation, and equipment.

Mark highlighted the anticipated increase in unit costs due to new regulations and uncertainty regarding installation requirements. He also notes these regulations’ impact extends to both new and current equipment, requiring ongoing maintenance and service expansions.

What can you do to prepare? 

Ultimately, Mark emphasizes the need to adopt a design-assist strategy, engage with general contractors early in the design process, and establish relationships with contractors capable of cost-effective HVAC upgrades.

Despite the challenges posed by new regulations, there are also opportunities for growth and innovation, and developers can thrive by understanding the changes and implementing effective mitigation strategies.

While the impending refrigeration regulations bring about significant changes, they also present opportunities for growth and innovation. By thoroughly understanding the changes, preparing for potential impacts on costs and equipment, and implementing effective mitigation strategies, developers can proactively adapt to the new landscape and continue to thrive in the industry.

_{Mark Garigliano
Director of Estimating and Preconstruction}