WASHINGTON (AP) — The Trump administration is set to loosen a federal rule that requires grocery stores and air-conditioning companies to reduce greenhouse gases used in cooling equipment, in what officials say is a push to lower grocery costs.

The head of the Environmental Protection Agency, Lee Zeldin, said the Biden-era rule imposes costly restrictions that limit the type of refrigerants U.S. businesses and families can use.

The new rule will “allow businesses to choose the refrigeration systems that work best for them, saving them billions of dollars. This will be felt directly by American families in lower grocery prices,” Zeldin said in a statement released before a White House event Thursday where President Donald Trump is scheduled to announce the changes. Executives from Kroger, Piggly Wiggly and other grocery chains are expected to join him.

With voter concerns over the cost of living spiking before pivotal elections in November, the Republican administration is trying to address affordability issues. It is not clear how much or how quickly the loosening of the refrigerant rule might ease grocery prices.

Inflation in the United States increased to 3.8% annually in April, amid price spikes caused by the Iran war and President Donald Trump's sweeping tariffs. Inflation is now outpacing wage gains as the war has kept oil and gasoline prices high.

The administration's action on refrigerants represents a reversal after Trump signed a law in his first term that aimed to reduce harmful, planet-warming pollutants emitted by refrigerators and air conditioners. That bipartisan measure brought environmentalists and major business groups into rare alignment on the contentious issue of climate change and won praise across the political spectrum.

The 2020 law reflected a broad bipartisan consensus on the need to quickly phase out domestic use of hydrofluorocarbons, or HFCs, that are thousands of times more potent than carbon dioxide and are considered a major driver of global warming.

The EPA action highlights the second Trump administration’s drive to roll back regulations perceived as climate friendly. The plan is among a series of sweeping environmental changes that Zeldin has said will put a “dagger through the heart of climate change religion.”

Environmentalists have criticized the administration's plans, saying a proposed rule announced last year would exacerbate climate pollution while disrupting a yearslong industry transition to new coolants as an alternative to HFCs.

The 2020 law signed by Trump, known as the American Innovation and Manufacturing Act, phased out HFCs as part of an international agreement on ozone pollution. The law accelerated an industry shift to alternative refrigerants that use less harmful chemicals and are widely available.

The U.S. Chamber of Commerce and the American Chemistry Council, the top lobbying group for the chemical industry, were among numerous business groups that supported the law and an international deal on pollutants, known as the Kigali Amendment, as victories for jobs and the environment. U.S. companies such as Chemours and Honeywell developed and produce the alternative refrigerants sold in the United States and around the world.

The 2023 rule now being relaxed imposed steep restrictions on HFCs starting in 2026. Zeldin said the rule from the Democratic Biden administration did not give companies enough time to comply and that the rapid switch to other refrigerants caused shortages and price increases last year. Some in the industry dispute this.

The Food Industry Association, which represents grocery stores and suppliers, applauded the Trump EPA proposal last year, saying the earlier rule “imposed significant and unrealistic compliance timelines.”

The Air-Conditioning, Heating and Refrigeration Institute, which represents more than 330 HVAC manufacturers and commercial refrigeration companies, said the change in approach would "inject uncertainty across the market” and could even raise prices.

“This rule works against basic supply and demand,” said Stephen Yurek, the group's president and CEO. “By extending the compliance deadline" for phasing out HFCs, the administration “is maintaining and even increasing demand in the market for existing refrigerants while supply continues to fall."

Manufacturers have already retooled product lines and certified models based on the existing timeline, Yurek said. Nearly 90% of residential and light commercial air conditioning systems use substitute refrigerants, rather than HFCs, he said.

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