State-level decarbonization efforts ramp up

New York continues its climate policies in the face of federal deregulation.

I recently returned from the Air-Conditioning, Heating and Refrigeration Institute’s (AHRI) State Summit in Albany, NY, where I moderated a panel discussion on New York’s decarbonization policy and participated in various other sessions. This year’s summit was especially timely, considering the complex regulatory landscape and industry-led litigation that served as a backdrop.

After hearing fresh insights and diverse perspectives on our most challenging issues — such as the refrigerant and energy transitions and building decarbonization — participants left with a deeper understanding and a renewed focus on working together to achieve meaningful change.

New York is an example of how progressive states are dealing with the uncertainty, deregulation, and, in some cases, removal of federal funds that had previously backed their efforts. Although the shift in presidential administrations has impacted them, they are moving forward in earnest with state-led decarbonization initiatives.

The AHRI Summit, which featured keynote speakers and panelists representing legislative offices, regulatory agencies and environmental organizations, provided opportunities to address the refrigerant and building decarbonization dynamics and discuss potential solutions. Though this was a state-specific summit for New York, it reflected the challenges many states face as they pursue their climate goals and navigate an uncertain regulatory landscape.

Some common themes emerged as key influencers in New York shared thoughts on building decarbonization and refrigerant policies. I was encouraged by the thoughtful ideas being discussed. Michael Reed, acting head of large buildings for the New York State Energy Research and Development Authority (NYSERDA), called for a more measured, balanced approach to decarbonization.

He advocated a shift from the narrow focus on climate change to more pragmatic considerations of consumer affordability and incremental progress. Reflecting on the past five years of market challenges/disruptions — COVID, supply chain issues, workforce shortages, inflation, and now deregulation and trade/tariff challenges — Reed recommended a more moderate approach that moved decarbonization forward without placing too much financial burden on consumers.

For example, when faced with a central AC end-of-life replacement, building owners and homeowners could consider installing a more affordable standard heat pump, rather than opting for a premium, cold-climate-ready option. This strategy would still rely on existing gas furnaces and boilers in a dual-fuel configuration for cold weather, while still making significant steps toward decarbonization and emissions reduction.

Simply put, this strategy would make buying and installing heat pumps easier for consumers. It would lower the burden on first costs and the potential energy cost penalty of immediately switching to an all-electric heating/cooling system. Remember that in New York, electricity rates are significantly higher than the national average: 26.2 cents per kWh compared to 16.41 cents per kWh.

At Copeland, our Helix Innovation Center has conducted significant research on decarbonization via dual-fuel heat pumps. Like many states, New York is working to add renewable resources to its grid; however, it is unlikely to meet its goal of 70% cleaner by 2030. Thus, even if all-electric heat pumps were installed statewide, emissions would likely be higher than if dual-fuel-based systems were used. In many cases, dual fuel offers the best balance of economics, comfort and decarbonization.

From a product development standpoint, Copeland is also focused on meeting the decarbonization goals of various industry stakeholders with next-generation heat pump technologies. Our broad breadth of compression, controls, thermostats and system technologies is helping to electrify commercial and residential gas-fired furnaces, boilers and hydronic heating systems.

Copeland’s compression technologies cover the spectrum of consumer and OEM needs, from standard heat pumps and dual-fuel designs to all-electric cold climate heat pumps that offer premium comfort and efficiency — all while leveraging lower-GWP A2L refrigerants.

It’s also worth noting that repairs to existing HVAC equipment are still a valid option for consumers seeking to extend the lifespan of their units.

We also support the refrigerant transition in the commercial refrigeration sector, offering a wide range of CO₂, R-290, and A2L solutions for centralized, distributed, and self-contained system types.

Conclusion: Focus on progress, not the finish line

The AHRI Summit in Albany reminded us of how New York and other U.S. Climate Alliance states are maintaining their aggressive climate goals. Reducing direct and indirect emissions from homes, buildings and supermarkets is a key target within their climate scope. 

One strategy that seemed to be gathering consensus was to entertain more moderate approaches to the technology transition. than adopting an all-or-nothing (i.e., “maximum technology”), one-size-fits-all approach to electrification and sustainability, perhaps industry advocates can agree to progress along multiple paths toward the same long-term goals.

Regarding regulatory approaches, Copeland still believes that consistency is the key. While progressive states like New York will continue to chart their course to decarbonization, the HVACR industry and consumers benefit more from the predictability of a standardized, federal approach. A unified framework reduces compliance complexity, streamlines product development, and ensures that emissions goals can be met without creating fragmented markets or unnecessary costs for manufacturers, contractors, and end users alike.