The National Supermarket Association (NSA) has issued a formal position paper calling on New York State to expand financial and technical support for independent grocers transitioning away from hydrofluorocarbon (HFC) refrigerants. The call comes as landmark state regulations take effect and publicly funded pilot projects demonstrate the viability of CO2 and propane-based systems. The move places the cold-chain sector at the center of one of the most stringent refrigerant regulatory frameworks in the United States.
Regulatory Background
New York State's Department of Environmental Conservation (NYSDEC) finalized its amended 6 NYCRR Part 494 regulations on December 23, 2024, establishing phased GWP thresholds that ultimately require natural refrigerants across most commercial refrigeration applications. Under the amended rules, supermarket systems and remote condensing units with a refrigerant charge capacity of 50 lbs or greater are restricted to refrigerants with a 20-year GWP (GWP20) of 580 or less as of January 1, 2026. Beginning January 1, 2034, only refrigerants with a GWP20 of 10 or less will be permitted - effectively mandating natural refrigerants.1IIAR 2026: Zero Zone Launches New Transcritical CO2 Condensing Unit
New York uses a 20-year GWP metric rather than the conventional 100-year value, making its limits more stringent than U.S. EPA standards in many refrigeration categories. The EPA applies GWP limits of 150 for many refrigeration uses and 700 for air-conditioning and heat pumps, making New York's framework notably more ambitious.
In April 2025, industry groups AHRI and HARDI filed suit seeking declaratory judgment and voidance of the amended Part 494 regulations. Justice Richard J. McNally, Jr. dismissed the request for declaratory judgment and denied regulatory voidance.
Grant Funding and Pilot Projects
State-backed demonstration projects have already validated the transition pathway. The NYSDEC and the North American Sustainable Refrigeration Council (NASRC) announced the completion of projects at two Key Food stores in the Bronx, replacing older HFC refrigeration equipment with natural alternatives through $350,000 in state grants. Each store received approximately $175,000 for the purchase of ultra-low-GWP R-290 self-contained refrigeration systems.
Earlier work laid the groundwork. Projects at an ALDI US supermarket in Buffalo and a Walgreens in Islandia, New York, were supported by the New York State Environmental Protection Fund. NASRC coordinated free technician training events at both sites to build local workforce expertise in natural refrigerant equipment and systems.
For the 2026 budget cycle, New York State has proposed $750,000 in grants administered by NASRC and the Vermont Energy Investment Corporation (VEIC) to support further natural refrigerant deployments. NASRC would receive $500,000 and VEIC $250,000, both directed at helping supermarkets install natural refrigerant-based systems. The DEC is developing a broader grant program based on the successful demonstration projects, with upcoming funding targeting food stores and food banks - prioritizing disadvantaged communities - for natural refrigerant system installations.
Barriers Identified by Trade Groups
The NSA, a New York-based trade association representing approximately 1,200 independent supermarkets in the New York metropolitan area and other East Coast cities, seeks support for its members transitioning from HFC refrigeration to systems using natural refrigerants such as CO2 (R-744) and propane (R-290).2New York Proposes $750,000 for Natural Refrigerant Projects
The NSA position paper identifies four gaps impeding independent supermarkets' ability to comply with the regulations:
- Cost - initial purchase and installation of a natural refrigerant system runs approximately 25-40% higher than conventional HFC systems
- Training
- Financing
- Incentives
The paper recommends a green discount program for first-time CO2 equipment buyers, a CO2 workforce development initiative, a green refrigeration financing program, and expanded incentives for stores in disadvantaged communities.
Technician workforce capacity remains an active concern. Over the past year, Ozone Refrigeration has conducted hands-on CO2 and natural refrigerant training for service technicians and store operators in the New York metropolitan market.3Transcritical CO2 Systems Market Size & Share 2026-2032 According to Krissy Lerner, Co-Owner and Corporate Manager at Ozone, "the program covers system fundamentals, safety protocols and operational differences between transcritical CO₂ and HFC-based systems."
Outlook
The Supermarket Refrigerant Program (SRP) applies to any business entity owning or operating 20 or more retail food facilities in New York - or more than 100 such facilities in the United States - that contain supermarket systems with a refrigerant charge capacity of 200 pounds or greater. The program offers compliance flexibility through a Transition Plan, which must be submitted to the DEC by January 1, 2027. By January 1, 2035, qualifying chains must transition refrigeration equipment with more than 50 pounds of refrigerant to alternative systems using refrigerants with a GWP20 of 10 or less, or control leakage to a comparable emissions quantity.
NSA supermarket owners are scheduled to participate in an end-users panel at the ATMOsphere America 2026 conference in Tarrytown, New York, on June 2-3, where they will discuss their experience with transcritical CO2 systems and the challenges small operators face in adoption.4Our Organization — National Supermarket Association The conference will also feature NYSDEC regulators addressing the state's HFC regulations, offering service providers and equipment suppliers an early signal of how compliance pathways will be enforced through the 2026-2028 window.
