Trakref
The Cost of Non-Compliance: Understanding AIM Act Fines and Risks
What is the AIM Act, and why does it matter for facility managers?
The American Innovation and Manufacturing (AIM) Act is a pivotal regulation aimed at reducing the environmental impact of hydrofluorocarbons (HFCs), potent greenhouse gases commonly used in refrigeration and air conditioning systems. Enforced by the U.S. Environmental Protection Agency (EPA), the AIM Act expands refrigerant management rules and introduces stricter requirements for leak detection, repair, and reporting.
For facility managers, this means heightened responsibility for refrigerant tracking, ensuring compliance with leak detection mandates, and preparing for new operational and reporting requirements by January 1, 2026. Violations can lead to substantial financial penalties and operational disruptions, making compliance a top priority.
How do you know if you’re affected?
Any facility operating refrigeration or air conditioning equipment containing 15 pounds or more of refrigerants with a Global Warming Potential (GWP) greater than 53 falls under AIM Act regulations. This broadens the scope of previous refrigerant regulations, affecting commercial buildings, retail spaces, food service facilities, warehouses, and more.
To determine your exposure:
- Conduct an asset inventory of all refrigerant-containing systems.
- Identify refrigerant types and charge sizes.
- Ensure leak detection systems are in place for large systems (1,500+ pounds of refrigerant).
Need help? Use the AIM Act Flow Chart to check if your facility is affected.
How much can AIM Act violations cost your business?
Non-compliance with the AIM Act can cost businesses tens of thousands of dollars per day in fines. The EPA has the authority to levy penalties up to $60,000 per day per violation, depending on the severity and frequency of infractions.
For reference:
- A New York grocer was fined $400,000 for refrigerant violations.
- A Colorado salvage company paid $195,000 for improper refrigerant disposal.
- Violations under the Clean Air Act can result in fines up to $117,000 per day.
The financial burden of non-compliance can quickly escalate, making proactive refrigerant management essential.
Operational disruptions and reputational damage
Failing to comply with the AIM Act doesn’t just mean hefty fines—it can also lead to major operational setbacks and reputational harm. Businesses that neglect refrigerant management could face challenges that extend beyond compliance penalties, affecting their bottom line and long-term viability.
- Regulatory shutdowns: Non-compliant refrigeration systems may be ordered out of service until violations are rectified. This can cause production delays, supply chain issues, and operational bottlenecks, leading to revenue loss and customer dissatisfaction.
- Loss of business contracts: Vendors and clients increasingly demand sustainability and compliance certifications. Companies that fail to meet regulatory standards risk losing valuable contracts, particularly with corporate clients that have strict environmental policies.
- Higher insurance premiums: Risk exposure increases for facilities failing to meet environmental standards. Insurers view non-compliance as a liability, which can result in higher premiums or difficulty obtaining coverage altogether.
- Increased maintenance costs: Unaddressed refrigerant leaks and system inefficiencies can drive up maintenance and repair expenses. Emergency repairs are often more expensive than proactive compliance measures.
- Negative brand perception: Consumers favor companies committed to sustainability—public EPA violations can damage trust and revenue. In today’s environmentally conscious market, businesses that fail to align with sustainability goals may face customer attrition and negative press.
- Legal and regulatory scrutiny: A history of violations can lead to increased oversight from regulatory agencies, subjecting businesses to more frequent inspections, audits, and potential litigation. This adds an ongoing administrative burden and potential legal expenses.
Ignoring AIM Act compliance doesn’t just put your facility at risk—it can disrupt operations, increase costs, and harm your brand’s reputation. Proactively managing refrigerants and staying ahead of regulatory changes is essential for long-term success.
How can you leverage technology to mitigate risks and avoid fines?
The complexity of AIM Act compliance makes manual tracking impractical. Instead, facility managers should embrace technology-driven refrigerant management solutions like Fexa Trakref to streamline compliance efforts.
Key Benefits of Fexa Trakref:
- Automated refrigerant tracking: Ensure real-time compliance with EPA and state regulations.
- Leak detection integration: Connects with automatic leak detection systems for faster issue resolution.
- Audit-ready reporting: Generate necessary compliance documents on demand.
- Multi-site management: Consolidate refrigerant data across multiple locations.
- Proactive compliance alerts: Stay ahead of regulatory deadlines with automated reminders.
Stay compliant and protect your business
The AIM Act is a high-stakes regulatory shift that facility managers cannot afford to ignore. By leveraging Fexa Trakref, businesses can minimize compliance risks, avoid fines, and maintain seamless operations.
Take action now. Request a demo of Fexa Trakref today: https://info.fexa.io/lp/tr-request-a-demo.