According to the 2008 study, the EPA is limiting the amount to HCFC R-22 to 20% LESS than industry demand. This means that R-22 will likely increase in cost substantially and available stocks will be bought up by the bigger organizations. It also means that reclaimed, recycled, and used R-22 could become more valuable than virgin in that it could be used "universally" in pre and post 2010 equipment.
Market Demand for R-22 HCFC Refrigerant Gas Will be 20% Higher than Available Supply
The HCFC refrigerant gas called R-22 is the most pervasive refrigerant in everyday use around the world. Since the 1940's R-22 has been the refrigerant gas that we use in central air-conditioning (AC) systems at home and work. It is efficient, non-toxic and easy to use. It's difficult to grasp how important R-22 is to our society.
R-22 based air-conditioning was the catalyst of southern United States growth. In the absence of R-22 and many of the other popular refrigerants, the economy would not have supported such a diversity of products across the U.S.
R-22 is an HCFC class refrigerant containing chlorine giving it the potential to damage the ozone and therefore has been targeted since the 1990's for eventual phase out by the Montreal Protocol, an international treaty.
Most air-conditioning manufacturers introduced non-ozone depleting products that utilize non ozone depleting R-410A. Although the adoption by contractors and consumers has been slow for R-410A, the upside is that R-410A is more efficient and is chlorine free.
Phase Out of R-22 Refrigerant Gas
In 2007 and 2008, the U.S. Environmental Protection Agency (EPA) published an industry model of the expected HCFC market size and the related demand for R-22. The current and new demand for R-22 refrigerant gas will ever increase as new leaks and service events need to top off the gas. This will increase the shortage of available R-22 in the marketplace.
Based on the market demand model crafted by the EPA and published in the Federal Register, two proposed rules for meeting the 2010 phase-down called for by the Montreal Protocol of R-22 and other HCFC refrigerants emerged.
The first rule regards the 2010 allocation of production and import rights of R-22. There is a SIGNIFICANT phase down of HCFCs R-22 and other damaging refrigerant gasses in the immediate future.
The second proposal is on the ban on production, import, and sale of R-22 in new equipment post January 1st, 2010.
As of writing this article, organizations and the EPA are in a comment period where changes can be proposed and or adopted in the emerging rules. In any way you wish to look at it, these rules regarding the phase out of R-22 refrigerant gas will become effective January 1st, 2010.
Key Points of the Proposed R-22 Phase Out Legislation
By law written into the EPA legislation, HCFCs are scheduled to be phased down in 2010 by 75% of the baseline cap (set in the 1990's).
On January 1st, 2010, it will be illegal to import, produce, or sell R-22 for use in new equipment or pre-charged in new equipment of any kind. This is a very significant piece of legislation that may not be on the radar of 90% of the organizations running AC/HVAC systems.
There is an allowance (loophole) that allows equipment manufactured after 2009 to be charged with reclaimed refrigerant. This too will be further evaluated to ensure existing and future legislation continues to benefit the environment.
After a significant number of comments from equipment manufacturers, owners of AC/HVAC systems, industry groups, and distributors, the EPA clarified the pre-charged rule to allow for R-22 equipment, such as window air conditioning units, manufactured before January 1st, 2010 to be sold after January 1st, 2010. This gives some breathing room for smaller businesses and home owners but it is well known that regulations regarding refrigerant gases will continue to be ratcheted down.
What the Phase Out of R-22 Means to Your Organization
Under the phase out rules for R-22 production and import, all allocations across the refrigerant industry will go from about 312 million pounds to about 110 million pounds, a 64.8% reduction across all shapes and sizes of organizations. This is the first time that R-22 has been reduced in anyway and in such a pervasive manner.
In 2003, R-22 was allocated to 100% of the allowable cap and the step down was covered by the phase out of foam blowing agents. The world and the United States in particular is about to embark on an era where R-22 refrigerant gas will be restricted and capped. This will have a far greater impact on day-to-day operations across the entire economy.
What Your Organization Should Do to Protect Against the R-22 Phase Out Risk
Keep accurate maintenance records and understand your R-22 usage and reporting requirements, and ongoing needs. This means tracking your refrigerant gases down to the individual pound across your entire organization. It can't be stressed enough how important it is to track R-22. It is also important to manage and inventory all refrigerant gases due to regulations written to address their effects on the environment.
Dirty refrigerant gas needs to be cleaned and re-certified by an EPA approved reclaimer so that it can be recycled or re-sold to a third party. It can however be re-used in your own equipment without re-certification. It is best to start as soon as possible to truly understand and manage your refrigerants as they will and are turning into vital assets that should not be vented or just given away during service events.
The EPA requires leaks to be fixed within 30 days and can impose fines of up to $32,500 per day/ per unit for excessive leaks. Ignorance of these regulations is not an excuse. They were written and passed many years ago. To make a point, the EPA continues to impose hefty fines to organizations who do not comply. Make sure to purchase new R-22 from reputable sources; penalties of up to $300K per 30 pound cylinder of refrigerant gas can be assets for improper or illegal imported gas.
Refrigerant Compliance Includes Calculating Carbon Emissions
Calculating carbon emissions is a complex process. The different types of emissions need to be identified and collected company wide. In addition, tracking methods need to show the daily use of refrigerant gas. The end result will show the global warming potential for each facility with a refrigeration and air-conditioning (RAC) system or heating, ventilation and air conditioning (HVAC) system.
The Economy is Down But Developing a Work at Home Solar Energy Business is Looking Up
The following explains how to get a small business started in a down economy. We will also define what a home based or work from home business is, what entrepreneurial skills are needed to start one, how good opportunities should not require upfront investments, and add a short commentary on the prospects of solar energy as a small business offering in 2009 - 2010.
How to Understand Government Laws for Refrigerant Gases (R-22 HCFCs)
The following article defines refrigerant gases (i.e. the different refrigerant types and the categories of HCFCs, CFCs, PFCs), where they come from, why they are used, and how existing United States and European regulations require detailed monitoring and reporting of refrigerant usage, purchase and destruction, and service tracking.
