DOE finalizes stricter commercial RTU efficiency rules
On August 1, DOE finalized a rule raising minimum efficiency thresholds for commercial rooftop units (RTUs) by 8-15% depending on capacity band and fuel type. The rule also requires, for the first time at this scale, that manufacturers certify part-load performance using a DOE-specified test procedure that captures variable-speed and staged operation. Certified IEER (or equivalent index) must appear on product literature and compliance filings. Compliance is staggered: single-speed RTUs face enforcement beginning January 1, 2028; variable-speed and VRF-class rooftop systems must comply by January 1, 2029 ([ContentWave](https://contentwave.net/article/doe-finalizes-tougher-efficiency-and-partload-rules-for-commercial-rtus)).
Nineteen attorneys general sue over EPA refrigerant rollback
A coalition of 19 attorneys general and one city filed a lawsuit challenging EPA's Technology Transitions Reconsideration Rule, which weakens HFC phase-down deadlines. Under the prior rule, new remote condensing units (used by supermarkets and convenience stores) were limited to refrigerants with 150-300 GWP starting January 1, 2026. EPA's rollback allows up to 1,400 GWP — nearly 10 times higher — until January 1, 2032. The lawsuit argues EPA's rule is "contrary to law" and that EPA "fails to justify its change in position" from the original AIM Act implementation ([WGMD](https://www.wgmd.com/ag-jennings-files-lawsuit-challenging-trump-administration-rule-that-weakens-regulation-of-greenhouse-gas/)). Separately, ACCA, HARDI, and PHCC have filed their own legal challenge to portions of the same rule, citing concerns about refrigerant supply and market stability ([ACCA](https://hvac-blog.acca.org/)).
EPA's own HFCs page confirms the agency has signed both a final rule reconsidering certain Technology Transitions requirements and a proposed rule exempting transport refrigeration units from HFC leak repair requirements ([EPA](https://www.epa.gov/hfcs)).
DOE extends Process Rule comment period to August 21
DOE extended the comment deadline on its proposed Process Rule overhaul to August 21, splitting the difference between the original deadline and the September 8 date industry groups had requested. The Process Rule resets DOE's methodology for setting efficiency standards across categories including HVAC equipment, water heaters, and industrial motors. The compressed timeline means affected firms need to prioritize submission-ready data now rather than waiting for a longer window ([DOE](https://www.energy.gov/cmei/articles/doe-extends-comment-period-proposed-process-rule-updates)).
EU cuts Q4 2026 F-gas quotas 35% for high-GWP refrigerants
The European Commission issued Regulation (EU) 2026/1482 on July 30, revising Annex II of the F-Gas Regulation. The amendment cuts Q4 2026 import quotas for R134a, R404A, and R410A by 35% compared to the same period in 2025, effective August 1, 2026. The rule directly affects compliance routes and certification strategies for manufacturers exporting equipment containing these refrigerants into the EU market ([Sector Vantage](https://www.sectorvantage.com/news/Cooling__HVAC/Refrigerants/EU-Cuts-Q4-2026-Quotas-for-High-GWP-Refrigerants.html)). This runs parallel to the broader EU phase-down schedule: as of January 1, 2026, the EU bans servicing AC and heat pumps with virgin refrigerants having GWP ≥ 2,500, tightening to GWP ≥ 750 by 2032 ([HVAC365](https://hvac365.com/blog/eu-accelerates-phase-down-of-high-gwp-hvac-refrigerants/)).
AIM Act tightening R-410A supply in the US
2026 marks one of the steeper quota reductions in the AIM Act HFC phasedown schedule. Distributors across multiple regions report tighter inventories of virgin R-410A cylinders, more frequent allocation practices, and lengthened lead times for bulk deliveries. Reclaimed refrigerant is becoming a more prominent part of the supply mix, with service providers investing in certified recovery and reclaim processes. For new installs, many are specifying low-GWP refrigerants (R-32, R-454B, and other A2L blends). The shift raises code and permitting challenges — broader use of A2L refrigerants requires attention to local fire, mechanical, and building codes ([ContentWave](https://contentwave.net/article/aim-act-phasedown-tightens-r410a-supply-hvac-sector-adapts-in-2026)).
The International Code Council (ICC) reports the A2L transition is "moving forward smoothly," with keys to success including selecting listed and labeled equipment, understanding federal and local restrictions, following manufacturer instructions, and proper labeling of equipment and piping systems. The 2024 International Mechanical Code (IMC) requires A2L refrigerant lines to include "WARNING — Risk of Fire. Flammable Refrigerant" markings ([ICC](https://www.iccsafe.org/building-safety-journal/bsj-technical/insights-on-the-hvac-industry-transition-to-a2l-refrigerants/)).
Carrier and Watsco Q2: post-A2L demand stabilizing
Two of the largest HVAC companies reported Q2 2026 earnings this week, and both signal the A2L transition disruption is fading:
- Carrierreported Americas residential sales up 9% year-over-year in Q2, a sharp reversal from Q1's 12% decline. CEO Dave Gitlin raised the full-year industry shipment projection to 7-7.5 million units, up from an initial ~6.5 million. Carrier now expects full-year Americas residential sales up high single digits from 2025 ([Homepros](https://homepros.news/carrier-tops-residential-sales-expectations-raises-full-year-outlook/)).
- Watsco, the largest HVAC distributor in North America, reported domestic residential equipment sales up 5% in Q2 (2% volume growth, 2% average selling price increase). The company said the A2L transition is "largely complete" after adding more than 10,000 new SKUs. A2L transition-related impacts were approximately 130 basis points on gross margin. Watsco said it is now "focused on growth with existing customers" in "a simpler operating environment" ([Yahoo Finance](https://finance.yahoo.com/markets/stocks/articles/watsco-second-quarter-results-reflect-113000993.html)).
Contractor price pressure continues into August
HVAC contractors are heading into August with continued pricing pressure. ACHR News reported July manufacturer price increases ranging from item-specific adjustments to hikes as high as 10%. August distributor bulletins point to another wave of increases across ductless, light commercial, PTAC, IAQ, valves, controls, coils, motors, and parts. The advice from industry trade press: review distributor bulletins now, update price books, and shorten quote-validity windows ([The Hardwire](https://www.thehardwirenews.com/hvac-price-increases-august-2026-contractor-margin-pressure/)).
NEC GFCI exemption for outdoor HVAC expires September 1
The 2026 edition of the NFPA National Electrical Code (NEC) sunsets Exception No. 2 in Section 210.8(F), meaning outdoor-listed HVAC equipment will require Ground-Fault Circuit-Interruption (GFCI) protection starting September 1. ACCA and allied organizations fought to extend the exception to 2026 to allow HVAC equipment and GFCI OEMs to develop and certify technical solutions that reduce or eliminate nuisance tripping. Contractors should verify that existing GFCI breakers are compatible with HVAC motor loads before the deadline ([ACCA](https://hvac-blog.acca.org/)).
What this means for homeowners.The big picture this week: refrigerant supply is tightening on both sides of the Atlantic, equipment efficiency rules are getting stricter, the A2L transition is largely complete for new equipment, and prices are still rising. If you have an older R-410A system, service refrigerant will get progressively more expensive as virgin supply tightens and reclamation becomes the primary source. If you're buying new equipment in 2026, expect prices 15-25% higher than pre-A2L due to redesigned components, tariffs on metals, and manufacturer price increases.
| Story | Category | Impact |
|---|---|---|
| DOE commercial RTU efficiency rule | Regulation | 8-15% efficiency increase, part-load testing mandatory, compliance 2028-2029 |
| 19 AGs sue EPA over refrigerant rollback | Legal | Challenges weakened HFC deadlines; outcome could restore stricter phase-down |
| DOE Process Rule comment extended to Aug 21 | Regulation | Determines methodology for all future HVAC efficiency standards |
| EU F-gas quotas cut 35% for Q4 2026 | Refrigerant | R410A, R404A, R134a supply tightened in EU market |
| AIM Act tightening R-410A supply | Refrigerant | US distributors report allocations, longer lead times, reclamation growing |
| Carrier Q2: residential +9% YoY | Market | Post-A2L demand stabilizing; 7-7.5M units projected for 2026 |
| Watsco Q2: equipment sales +5% | Market | A2L transition "largely complete," 10,000+ new SKUs added |
| NEC GFCI exemption expires Sept 1 | Code | Outdoor HVAC equipment requires GFCI protection; nuisance tripping risk |
Not an endorsement.This roundup summarizes industry news and regulatory developments from multiple sources. Naming manufacturers, trade associations, or regulatory actions does not constitute endorsement of any brand, position, or product. HVAC Zone Inc is brand-neutral. This article is informational only.
Questions about how any of this week's developments affect your specific situation? Request a consultation — we'll help you navigate refrigerant transitions, code changes, and equipment decisions for your property.