HVAC Industry Update - Trane

1 HVAC Industry Update Industry Consensus on HFC Refrigerants Global HFC Phase-Down Effective January 1, 2019. The Industry continues to work through global and national A look at the global phase-down schedule established by the Kigali Amendment associations to engage with non-governmental organizations to the Montreal Protocol, which became offi cial on November 17, 2017 when it (NGOs) and governments to ensure that the Kigali received its 20th ratification. Europe is shown separately as they are leading the Amendment to the Montreal Protocol is used to transition global phase down with actions already taken. away from high-GWP refrigerants in a way that is technically Non-Article 5 Countries: feasible, safe, and allows for servicing of existing equipment More information available at: European Union (EU).

2 To ensure a useful life from equipment investments. Other Non-Article 5 Nations Article 5 Countries: refrigerant Regulatory Evolution Group 1. Group 2. The global scrutiny on the GWP of all current generation refrigerants continues to increase, pushing the Industry 93 Established Baseline Quantity to next-generation options, including the introduction of 90% 90 90 90. new transitional refrigerants to help off set the increasing 80% 80. global demand for HVAC with the requirements to reduce 70 70. % of baseline 70%. greenhouse gas emissions. 63. 60% 60. 50% 50. Past 45. R-12, R-11, R-113, R-22, & more 40%. Low-ODP or no ODP 31. 30% 30. 24. 21 20 20. Transitional 20%. 15 15. R-134a, R-410A, R-407C, R-123, R-404A, & more . 10%. Reduced GWP & ODP. 2016 2018 2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040 2042 2044 2046 2048.

3 Lower GWP Solutions Group 1: Article 5 parties not part of Group 2. R-513A, R-32, R-452B, R-454B, R-466A, & more Group 2: Bahrain, India, the Islamic Republic of Iran, Iraq, Kuwait, Oman, Pakistan, Qatar, Saudi Arabia and the United Arab Emirates Lowest GWP & ODP. Ultra-Low GWP Solutions R-1234yf, R-1234ze, R-1233zd, R-1336mzz, R-514A, & more . National and regional regulations restrict the use of high GWP HFCs. 2025. Industry petition Regulatory Timeline for national stationary AC transition for GWP> 750 GWP. Key Terms De ned: Petition 2024. Industry petition 2025. for national ODP ozone depletion potential degree to which a substance can degrade the ozone layer;. chiller transition California for GWP> 750 HFC phase down in all measurements relative to a similar mass of CFC-11, which is indexed at stationary AC for GWP > 750.

4 Petition GWP global warming potential degree to which a greenhouse gas (GHG) traps heat in the Current Regulations 2024 2026 atmosphere; all measurements relative to a similar mass of carbon dioxide (CO 2 ), which is California 2025 Industry petition indexed at The buildup of GHGs can cause climate change. HFC phase down for EU HFC phase down for national VRF. new ice rink chillers transition in mini-splits for for GWP > 150. GWP > 750 for GWP > 750 CFCs chloro uorocarbons ( R-11, R-12) phased out by the Montreal Protocol in 1996. Current Regulations HFCs Current Regulations Petition because of their very high ODPs. Signi cant impact on both ozone depletion and global 2024. 2013 2017 2018 2020 10 States: 2025 2026 warming due to the chlorine and uorine atoms and very long atmospheric lives. EU began attempted Japan HFC phase Japan HFC phase.

5 (CA, CT, DE, MA, Canada California HFC transition down for room air down for commercial MD, NJ, NY, VA, HFC phase down HFC phase down in HFC phase down but rules were conditioning for air conditioning for VT, and WA). in chillers for HCFCs hydrochloro uorocarbons ( R-22, R-123) also contain chlorine, but contribute HFC phase VRF for GWP > 750. not implemented GWP > 750 GWP > 750 down in chillers GWP > 750 less to ozone depletion and climate change due to shorter atmospheric lives. Still in use Current Regulations Former Regulations Current Regulations Current Regulations Current Regulations Current Regulations Current Regulations globally, but have phase-out dates scheduled under the Montreal Protocol. HFCs hydro uorocarbons ( R-134a, R-404A, R-407C, R-410A) do not contain chlorine, 1996 2000 2010 2020 2030 2040 but they do have high GWPs given their uorine content.

6 Now being phased down globally Use of virgin Use of virgin under the Kigali Amendment to the Montreal Protocol. Use of virgin R-11 and R-12 Use of virgin R-22 Use of virgin HCFCs in new R-22 in new * The Montreal Protocol allows in new in service ended R-123 in service equipment ends*. equipment equipment ended ended ends individual countries to establish their HFOs & HCFOs hydro uoro-ole ns ( R-1234yf, R-1234ze) and hydrochloro uoro-ole ns Article 5 Countries own timelines for individual refrigerants. Non- Article 5 Countries Non-Article 5 Countries Non-Article 5 Countries ( R-1233zd) next-generation refrigerants that are non-ozone-depleting with ultra-low Use of virgin GWPs and very short atmospheric lives (measured in days vs. years or decades). CFCs & HCFCs R-123 in new equipment ended Non-Article 5 Countries HFO blends ( R-452B, R-454B, R-466A, R-513A, R-514A) blends including an HFO.

7 They feature lower GWPs and, as they receive ASHRAE classification and SNAP approval, are refrigerant Management Requirements becoming available for use in speci c applications. Section 608 of the Clean Air Act defines proper management of refrigerants Zeotropes (400 series blends) have components that boil and condense at different used in HVAC equipment, including maximum limits for fugitive emissions and proper temperatures ( have some degree of temperature glide). Lower glide is typically preferred for handling requirements during service and repair of the equipment. It continues to HVAC applications. evolve, generally with increasing stringency. The EPA revised its refrigerant Azeotropes (500 series blends) behave like a single component refrigerant during phase management rule in 2016 to add HFCs, increase leak detection, repair and record change, with virtually no temperature glide.

8 Keeping requirements. The rule was partially rolled back in 2020 following litigation, but the EPA is expected to restore the provisions based on a recent petition from Montreal Protocol international treaty signed in 1987, originally designed to protect the states and cities. ozone layer by phasing out the production and consumption of ozone depleting substances. The Kigali Agreement was officially ratified in 2017 as an amendment to the Montreal More information available at revised-section-608- Protocol, and phases down the global production and consumption of HFCs beginning January refrigerant -management-regulations 1, 2019. Individual countries must ratify the amendment for it to apply domestically. American Innovation & Manufacturing Act of 2018 SNAP the Significant New Alternatives Policy of the Environmental Protection Agency (EPA) evaluates refrigerants and classi es them as acceptable or unacceptable replacements The AIM Act is a bipartisan bill enacted December 17, 2020.

9 It directs the EPA to based on their overall risk to human health and the environment. address the environmental impact of hydrofluorocarbons (HFCs) by phasing down production and consumption, maximizing reclamation and minimizing releases from De minimis - lacking significance or importance; too trivial or minor to merit consideration. equipment, and facilitating the transition to next-generation technologies through sector-based restrictions. Future Availability The EPA allows for continued use of recycled, recovered and stockpiled supplies of all refrigerants indefinitely, regardless of phase out date. Considerations When Selecting Refrigerants Flammability Additional Information About Select Refrigerants With the transition to lower-GWP refrigerant refrigerant Safety Burning R-32, R-452B, options, ammability has emerged as a new Velocity Leading options to replace R-410A for unitary and residential applications.

10 Each of Groups R-454B, these solutions offers different tradeoffs in GWP, efficiency, and flammability, and are variable for consideration, especially in (cm/s). R-466A, under consideration by the Industry as a next generation solution to replace R-410A. higher operating pressures. Class 3. Higher Flammability A3 B3 Non- ammable replacement for R-134a, which has no impact on capacity, zero ODP and In 2010, a new ammability category was R-513A 55% lower GWP. While the theoretical efficiency drop is ~ 2%, if used as a drop-in, the BV>10 actual impact on chiller efficiency has been about 4-6%, depending on application. created within ASHRAE 34. Subclass 2L Class 2. captures refrigerants with a Burning Velocity Lower Flammability A2 B2 Non-flammable replacement for R-123 that offers the highest performance of all next- generation options available today with near-zero ODP and a GWP of 2.