The California Air Resources Board (CARB) has launched a pilot programme with Hudson Technologies that will pay HVAC contractors cash for recovered HFCs and HCFCs sent for reclamation. As ACHR News reported, the real motivator for refrigerant recovery has always been straightforward — cash — and CARB is now testing whether direct financial incentives can meaningfully increase recovery rates above what EPA Section 608 compliance mandates alone produce.

The pilot follows the REFRESH programme in Washington D.C. and represents a broader policy shift: governments are recognising that mandating refrigerant recovery without incentivising it produces suboptimal outcomes, while paying contractors for the refrigerant they already are required to recover is a relatively low-cost mechanism to improve environmental outcomes. If the California pilot proves the model, expect refrigerant recovery programmes to proliferate across states — and for contractor refrigerant recovery to evolve from a compliance cost into a meaningful revenue stream.

Why the Incentive Model Is Needed

EPA Section 608 requires that refrigerants be recovered from HVAC and refrigeration systems before service, repair, or disposal. This requirement has been in place for decades. In practice, enforcement has been inconsistent, the cost of proper recovery and delivery to certified reclaimers has fallen on contractors, and the recovered refrigerant has had minimal monetary value for most of the compliance era.

The result is a market where refrigerant recovery compliance rates are lower than regulatory intent, and where a significant volume of refrigerant that could be reclaimed and returned to market is instead vented or improperly disposed of. This matters because:

• Environmental impact: HFCs are potent greenhouse gases with global warming potentials 700 to 2,000 times that of CO2. Every pound vented rather than recovered represents a material climate impact.

• Supply chain impact: Reclaimed refrigerant is the primary supply mechanism as the AIM Act phasedown reduces virgin production. Every pound not recovered is a pound not available for the maintenance of the enormous installed base of systems that still require HFC refrigerants.

• Price impact: When reclaimed supply is constrained relative to demand, prices rise. Higher refrigerant prices increase the cost of maintaining aging systems — contributing to the consumer deferral dynamic that is already reshaping the replacement market.

The California Air Resources Board's pilot programme paying HVAC contractors for recovered HFCs sent to Hudson Technologies for reclamation follows Washington D.C.'s REFRESH programme — establishing a bicoastal policy model for contractor refrigerant recovery incentives that may be adopted by additional states if the pilots demonstrate meaningful improvement in recovery rates.

The Hudson Technologies Partnership

Hudson Technologies (Nasdaq: HDSN) is the natural partner for state refrigerant recovery pilot programmes. As the largest certified refrigerant reclaimer in the United States, Hudson has the processing capacity, certification infrastructure, and market relationships to operate at the scale that a state programme requires.

Hudson's earlier licensing agreement with Solstice Advanced Materials for R-448A and R-449A reclamation (announced April 2026) demonstrates that the company is proactively building the compliance and commercial infrastructure for the refrigerants that will matter most as the AIM Act phasedown progresses. The California CARB partnership is a further step in Hudson's positioning as the preferred partner for governmental refrigerant recovery programmes.

For HVAC contractors in California, participation in the programme requires working through Hudson's contractor network — registration, certified recovery equipment, and proper documentation of recovered volumes. The specific buyback rates and programme terms are available through CARB's website for California contractors.

What Contractors in Other States Should Watch

The California and DC programmes together establish a policy model that is replicable in any state with an active air quality management programme. The states most likely to launch similar programmes in the near term:

• Massachusetts: The state has been among the most aggressive in HVAC-adjacent environmental policy, including building electrification requirements. A refrigerant recovery incentive programme fits the existing policy trajectory.

• New York: New York City's local laws on building emissions create parallel incentive structures. A state refrigerant recovery programme would complement existing environmental policy.

• Washington State: Active in climate policy and home to significant commercial refrigeration and HVAC activity from Boeing and technology sector facilities.

ACCA's government affairs team confirmed awareness of the California pilot as a potential model and is monitoring its outcomes. Contractors in any state should sign up for ACCA member communications to receive alerts when similar programmes launch in their jurisdictions.

Frequently Asked Questions

Will California pay HVAC contractors for refrigerant recovery?

Yes. The California Air Resources Board launched a pilot programme with Hudson Technologies that pays HVAC contractors cash incentives for recovered HFCs and HCFCs sent for reclamation. California contractors can participate through Hudson's contractor network — registration details and programme terms are available through CARB's website.

How does the California refrigerant recovery pilot work?

The CARB-Hudson pilot pays HVAC contractors for refrigerant recovered from systems being serviced or decommissioned and delivered to Hudson Technologies' certified reclamation facilities. The incentive structure creates a financial positive for recovery that goes beyond the baseline EPA Section 608 compliance requirement.

Will other states launch HVAC refrigerant recovery incentive programmes?

If the California and DC REFRESH pilots demonstrate meaningful improvement in recovery rates, additional states — particularly Massachusetts, New York, and Washington — are likely candidates for similar programmes based on their existing environmental policy trajectories. ACCA is monitoring the pilots as potential models for broader adoption.