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Continuing the HCFC Phasedown: Two Proposed Rules to Protect the Ozone Layer
On December 23, 2008, EPA published two proposed rules that, working together, will restrict the availability and use of HCFCs (including R-22) starting in 2010. One proposal would allocate allowances to continue the Montreal Protocol phasedown of production and import of HCFCs. The other proposal would ban the sale or distribution (including import) of pre-charged air-conditioning and refrigeration products and components containing HCFC-22 or HCFC-142b.
2010 Allocation Rule
The first rule proposes to set HCFC production and import limits for the
period 2010-2014 in order to meet the 2010
phasedown caps under the Montreal Protocol. This rule would allocate HCFC
allowances totaling 2,920 ozone-depleting potential (ODP)-weighted metric
tons for consumption and 2,646 ODP tons for production. Aggregate levels of
HCFC production and import must be reduced significantly from current amounts
to allow the U.S. to meet its obligations under the Montreal Protocol.
The proposed rule would reduce the allocations for HCFC-22 and -142b,
which are already part of the allowance system. The current regulations allow
production and import of those HCFCs after January 1, 2010, only to service
equipment manufactured before January 1, 2010; this restriction would remain
in place under the proposed rule. EPA is also proposing to issue consumption
and production allowances for HCFC-123, HCFC-124, HCFC-225ca, and HCFC-225cb,
which are not yet part of the allowance system. In addition, the proposed
allocation rule would amend the regulatory provisions concerning allowances
for HCFC production for developing countries’ basic domestic needs.
EPA has proposed to continue to issue allowances to specific companies, and continue to provide flexibility by allowing EPA-approved trades of annual and permanent allowances between HCFCs and between companies. As before, allowances would not be needed for material that is produced or imported for transformation or destruction. Nor would allowances be necessary to import used HCFCs – although EPA approval of an import petition on a per-shipment basis would still be required.
Pre-Charged Appliances Rule
The second proposal complements the proposed 2010 Allocation rule. The
proposed Pre-Charged Appliances rule would ban the sale or distribution of
pre-charged air-conditioning and refrigeration products and components
containing HCFC-22, HCFC-142b, or blends containing one or both of these
substances, beginning January 1, 2010. As proposed, the ban would apply to
appliances and components manufactured on or after January 1, 2010, but not
to appliances or components manufactured before that date. While the 2010
Allocation Rule, along with existing requirements at 40 CFR 82.16(c), would
have the effect of prohibiting U.S. manufacturers from charging
newly-manufactured appliances with newly-produced or imported HCFC-22 or
-142b beginning January 1, 2010, the Pre-Charged Appliances rule would affect
the sale and distribution of products that are charged with HCFC-22 or -142b
before entering the United States.
Regulatory coverage of pre-charged appliances is warranted. Over 9.7
million pre-charged air-conditioning and refrigeration appliances (such as
window air conditioners, upright freezers, and refrigerators) were imported
into the United States in 2006. Considered together with pre-charged
appliances that were manufactured domestically, they represent a concern for
ozone layer recovery.
The proposed Pre-Charged Appliances rule would apply the same restrictions to pre-charged components for appliances, such as line-sets and pre-charged condensing units. When sold charged with refrigerants, these components present the same concerns as the pre-charged appliances.
How Would the Proposed Rules Work Together?
The two proposed rules contains some important terms that affect their applicability.
- “Appliance” means any device which contains and uses a refrigerant and which is used for household or commercial purposes, including any air conditioner, refrigerator, chiller, or freezer. Components such as condensing units, line sets, and expansion valves would not be considered “appliances.”
- “Appliances manufactured prior to January 1, 2010” means that before that date, the refrigerant loop is completed and the appliance can function, holds the complete and proper charge, and is ready for use for its intended purposes.
- “Interstate commerce” means the product’s entire distribution chain up to and including the point of sale to the ultimate consumer. It includes the sale or distribution of imported products within the United States, as well as the sale or distribution of products intended for export.
Starting January 1, 2010, the two proposed rules would have the following effects on the sale, distribution, and installation of air-conditioning and refrigeration products charged with HCFC-22, HCFC-142b, or blends containing one or both of these substances:
- Sale and distribution would be allowed for self-contained, factory-charged appliances such as pre-charged window units, packaged terminal air conditioners (PTACs), and some commercial refrigeration units, if manufactured before January 1, 2010.
- Sale and distribution would also be allowed for pre-charged appliance components that are manufactured before January 1, 2010 and used for the purpose of servicing existing (pre-2010) appliances. This means that components such as condensing units, line sets, and expansion valves that are charged with refrigerant and completely manufactured before January 1, 2010, but not yet installed in an appliance, could be sold and distributed for this purpose.
- Generally, sale and distribution would not be allowed for pre-charged
appliances and pre-charged components charged with HCFC-22, -142b, or a
blend containing either of these HCFCs and manufactured on or after
January 1, 2010.
- There is an exemption for pre-charged appliances and pre-charged components that are charged with used and reclaimed refrigerant. (Reclamation means the reprocessing of used refrigerant back to virgin specifications based upon ARI Standard 700, “Specifications for Fluorocarbon and Other Refrigerants”).
- Servicing of existing appliances is distinct from manufacture, and is discussed below.
- Split systems and other field-installed air-conditioning or refrigeration appliances could not be initially field-charged with virgin HCFC-22 or HCFC-142b or blends containing either of these substances.
- Servicing of existing (pre-2010) appliances containing HCFC-22
or HCFC-142b would be allowed. As the 2010 allocation proposal notes at
73 FR 78699, servicing includes the replacement of components.
- A pre-charged component manufactured before January 1, 2010, could be used to service an existing appliance. For example, the regulatory text for the proposed pre-charged appliances rule lists condensing units as a type of component. Thus the proposed rules would not prohibit the sale or installation of stockpiled pre-charged condensing units that were manufactured before January 1, 2010, and used to replace a condensing unit in an existing residential split system.
- Components manufactured on or after January 1, 2010, for the servicing of existing appliances could be sold and installed as long as they do not contain a charge of virgin HCFC-22 or HCFC-142b or a blend of these substances.
EPA is accepting comments until March 9, 2009, on the 2010 Allocation proposed rule and until February 6, 2009, on the Pre-charged Appliances proposed rule. More information, including copies of the proposed rules, is available on the main HCFC phaseout page.