The Trials and Tribulations of the HCFC Phaseout

The HVACR industry has known that hydrochlorofluorocarbons (HCFCs) were going to be phased out of the U.S. market since the signing of the Montreal Protocol in 1987. Passage of the Title VI Clean Air Act Amendments in 1990 established the specific phaseout schedule of HCFC-22, but the regulatory details of the substance's phaseout were certain only through 2009.

The U.S. Environmental Protection Agency (EPA) released in late 2008 two proposed rules for establishing the regulatory framework for the next stages in the phaseout of HCFCs. Specifically focused on R-22 and R-142b, the proposed rules created significant confusion and concern within our industry. HARDI's HCFC Rulemaking Task Force, formed in June 2008, has worked feverishly with the EPA and our industry partners to protect the interests of HVACR distributors and the industry's greater good. It is important for the industry to understand what we have accomplished up to this point and where we see the direction of refrigerant use in the United States. Below is a timeline of these rulemakings. We have also provided a sidebar with recommendations that every HVACR distributor should consider immediately.

March 2008 — HARDI begins discussions with EPA on timeline, scope and intent of the next HCFC phaseout regulations.

May 2008 — HARDI Refrigeration Council hosts presentation by EPA staff on initial framework of HCFC phaseout regulations. EPA indicates uncertainty regarding the definition of “manufactured prior to Jan. 1, 2010,” as it pertains to split air-conditioning and refrigeration systems — whether it is when a product comes off the assembly line or when all of the components of a complex system are connected. EPA also reports that a proposed rule is in the works to address OEM concerns about a regulatory loophole that would allow the continued importation of precharged HVACR equipment after Jan. 1, 2010, despite a ban on the domestic manufacture of such products that would take effect at that time.

June 12, 2008 — The EPA releases a revised estimate of the servicing needs for HCFC-22, which undergoes immediate review.

June 16, 2008 — The EPA holds a public meeting to outline and highlight the proposed rules that would be released later in the year. In response to the revised servicing estimate, HARDI establishes the HCFC Rulemaking Task Force comprised of distributor member volunteers to assist staff with the preparation of written comments and coordination with the EPA and industry partners throughout the rule-making process.

July 2008 — The newly formed HARDI HCFC Task Force develops and sends a letter to the EPA outlining several discrepancies and inconsistencies found in the revised servicing estimate for R-22 systems. This letter also urges the EPA to use the pending proposed rules as an opportunity to eliminate market confusion by simply following the equipment production ban process used during efficiency standards transitions, rather than trying to implement unenforceable refrigerant use bans that attempted to draw a distinction between virgin and reclaimed refrigerants.

Sept. 2008 — EPA approaches HARDI about assisting with the development of a refrigerant recovery location tool.

Oct. 2008 — EPA asks to attend HARDI Fall Conference's Refrigeration Council meeting to discuss ideas for new drivers of refrigerant recovery and reclamation. During a presentation on the California Air Resources Board's proposed regulations on management of high global warming potential refrigerants, EPA's Jeff Cohen includes outline of proposed rulemaking on ban on sale and distribution of products precharged with virgin R-22.

Dec. 22, 2008 — The EPA releases “pre” copies of two proposed rule- makings. The first would ban the sale or distribution of appliances and components precharged with virgin R-22 or R-142b after Jan. 1, 2010. This also includes imported products and products destined for export. The second proposed rule would establish the allocation allowances for HCFCs from 2010 to 2014. The two rules immediately cause major confusion and serious concerns for HARDI because the preamble language doesn't match the proposed amendments to the federal regulations. The preamble of the precharged rule indicates that precharged products in inventory at the end of 2009 cannot be sold or distributed after Jan. 1, 2010. The allocation rule defined “manufactured” with the completion of the refrigerant loop which, for split systems, meant the point of installation.