HARDI Western Distributor Update

California Refrigerant Reporting Deadline Looms
HARDI Western Regional
Thermostat Recycling Mandates Persist

California Refrigerant Reporting Deadline Looms

UPDATE: The California Air Resources Board has extended the deadline to April 1.

For distributors with branches and locations within the state of California, tomorrow (March 1) marks the deadline for reporting 2011 refrigerant sales and transfers to the California Air Resources Board. Distributors are required to register each branch within the state, but reporting should be done on a company-wide basis. If you are having difficulty reporting, the Air Resources Board has made a training video which is accessible from the ARB website.

Reporting requirements also apply to reclaimers and facilities with systems carrying a refrigerant charge of 2,000 lbs or more.

HARDI Western Regional
Space still remains available for the HARDI Western Regional Meeting in Phoenix, AZ (March 11-13). Please, contact Stephanie Lingofelter to register for the event and to learn of limited remaining sponsorship opportunities. Among the topics being discussed:

• The Future of Incentives for HVACR Products and Systems.
• A Dozen Things You Can Do in HR that Will Save You a Million Dollars.
• HARDI Benchmarking: Regional & National Trends.
• R-22 Reductions? Dry-Ship Issues? Regional Standards? Navigate 2012's bumpy road of policy proposals and get a head start on Election 2012.

Thermostat Recycling Mandates Persist
All distributors with physical locations in California must act as a collection point for waste mercury thermostats and it has come to HARDI's attention the California Department of Toxic Substance Control is conducting pre-enforcement visits to HVACR wholesalers.

Failure to act as a collection point may lead to civil penalties of $25,000 per day, per violation. To avoid penalties, your branches must actively collect waste mercury thermostats. This includes having a recycling container, posting signage promoting the availability of the program at the location and ensuring staff is aware of the program is asked.

For recycling containers or promotional materials, please contact the Thermostat Recycling Corporation.

California Distributor Update

DTSC to Continue Inspections

The California Department of Toxic Substances Control (DTSC) has completed an initial survey of HVACR Distributors to monitor compliance with state policy mandating the recycling of mercury thermostats and found that some distributors are falling short of full compliance to state law. Distributors in California are required by law to serve as a collection point for mercury thermostats and DTSC is planning on increased enforcement in 2012.

HARDI has a formal partnership with the Thermostat Recycling Corporation (TRC), who can provide your business with all of the resources necessary to make sure you are in compliance with California state law.

If you would like to know if your business was inspected by the DTSC, please contact Jon Melchi.

New CARB Requirements

The New Year brings new requirements from the California Air Resources Board. Below are the new reporting requirements for Refrigerant Distributors and Reclaimers.

Beginning Jan. 1, 2012

Refrigerant Distributors must:

• Report previous year’s refrigerant sales or transfers by March 1
• Cover all California facilities that bought or received refrigerant from the wholesaler or distributor
• Include the following:
• The total weight, in pounds, of each type of refrigerant sold or transferred in the previous year, including:
• Transactions for eventual resale or delivery
• Shipments to certified reclaimers

Refrigerant Reclaimers must:

o Report previous year’s refrigerant sales or transfers by March 1

o Cover all California facilities that delivered refrigerant to the reclaimer

o Include total weight, in pounds, of each type of refrigerant that was:

§ Reclaimed or destroyed in California

§ Shipped out of state for reclamation or destruction

Perhaps the Least-Known, but Most Important Election Result

California's statewide ballot initiative Proposition 23 to delay and curb implementation of the 2006-passed AB 32, California carbon emission cap-and-trade mandate failed last night by nearly a 2-1 margin. Early polling had many believing the prop had a chance to pass driving over $30 mil in environmentalist funds for ads and an opposition campaign into the state. Prop 23's failure greenlights the continued advancement of the California Air Resources Board's implementation of the state's cap-and-trade system and early action measures such as the recently completed Refrigerant Management Regulations, and the pursuit of California-specific commercial refrigeration standards.

It remains to be seen how this will play out, but California- with its ailing economy- may become the country's petri dish to definitively determine the economic impact of economy-wide caps on carbon emissions.

Is There a Climate Change Policy Backlash?

This Politico piece outlines a potential rift within the environmental community of what to do next now that any serious climate change legislation appears to be a non-started for the foreseeable future. The story ends with this quote, “At this point, there’s going to be a rebellion,” said Sen. Dick Lugar (R-Ind.). “EPA is likely to see its powers substantially curtailed.”

GM First to Announce HFO-1234yf Plans

Thanks to member CD Jones for forwarding: GM vehicles will use low-GWP alternative refrigerant, HFO-1234yf in most US vehicles starting in 2013. Here's the full release.

AHRI Publishes New Guidelines for Refrigerant Cylinder Handling

Per AHRI's website:
"The Chemical and Refrigerant Reclaimers Section has approved for publication AHRI Guideline Q-2010, Content Recovery & Proper Recycling of Refrigerant Cylinders. This document, which is available for free download at http://www.ahrinet.org/Content/FindaGuideline_240.aspx?Listing_PK=1186, is a guideline for content recovery and recycling of cylinders at the end of their useful service life. This document is not intended to be an exhaustive listing of all good practices or requirements. The guideline applies to all U.S Department of Transportation (DOT) non-refillable and refillable fluorocarbon refrigerant cylinders, as defined in Section 3 of AHRI Guideline Q-2010, having water capacity greater than two pounds used to transport refrigerants sold in the United States. Details: AHRI Manager, Public Affairs Courtney Nogas."

Opposition to Climate Change Legislation is Apparently All Semantics

“Cap and trade has certainly been demonized,” said Sen. Ben Cardin (D-Md.). “I think that’s unfortunate. ... So we’ll just call it something different.”

This Politico piece describes the belief by many climate change legislation proponents that today's strong opposition to the concept of economy-wide emission controls is based largely on misunderstanding and mischaracterizations of the Lieberman-Warner, Waxman-Markey, Kerry-Lieberman -like "cap-and-trade" proposals.

Ballot Initiative to Suspend CA's Global Warming Law Added

A measure that would suspend AB 32, California’s landmark 2006 climate law, has qualified for the November ballot. The “California Jobs Initiative” secured more than 800,000 signatures, nearly twice as many needed to bring the measure before voters. If passed, it would halt enforcement of AB 32 until unemployment in the state, now over 12%, drops to 5.5% for at least a year. Under AB 32, California is setting limits on greenhouse gas emissions from automobiles, oil refineries and other industries, and will probably require that a third of the state’s electricity come from renewable sources by 2020. Supporters say it has spurred a large market for solar, wind and other clean energy sources. But backers of the ballot measure, whose six-month, $3 million campaign was largely funded by Texas oil giants Valero Energy Inc. and Tesoro Corp., who both operate refineries in California, describe the climate law as an “energy tax” that slows job growth and burdens consumers.

HARDI Supports CARB Findings on Refrigerant Cylinders

Too expensive for not enough emission savings. That's what a study commissioned by the California Air Resources Board (CARB) to study the emission reduction potential by banning the use of non-refillable 30lb refrigerant cylinders concluded. HARDI agreed in principle, but argued that the cost estimates of such regulation were actually understated and argued that evidence is mounting that the existing market can deliver emission savings through enhanced refrigerant management awareness.

Yet Another Unintended Consequence of Climate Policy

California's Assembly passed a bill that would prohibit the states' public utilities from purchasing energy from out-of-state producers that don't meet California's strict new emission caps.

Last I heard, energy was expensive enough in California so I'm curious to see how the struggling state plans to turn around its economy if there is the outlook is for ever-rising energy costs.

SEC "Guides" Firms to Disclose Climate Change Impacts

I have to admit that I had to read this SEC press release a couple of times to believe that it was for real. While not being a regultory mandate (yet, perhaps) this SEC "interpretive guidance" recommends that the following climate change considerations may trigger a disclosure requirement for publicly-traded firms in their filings:

• Impact of Regulation and Legislation
• Impact of International Accords
• Indirect Consequences of Regulation or Business Trends
• Physical Impacts of Climate Change

I think I'll need to chew on this more before posting deeper analysis of this announcement, though I do find it somewhat stunning.

States Raise Major Concerns Over Potential EPA Carbon Regulations

While many in our industry debate how EPA's recent endangerment finding of CO2 as a pollutant and therefore subject to EPA regulation may affect HFC refrigerants, several states submitted comments to the EPA expressing serious concerns over the implications such regulations could have on their state's economies and respective efforts to reduce greenhouse gas emissions. This WSJ piece outlines exactly how big a bite the EPA may be trying to chew off by trying to regulate carbon emissions, and reiterates the extremely steep hill federal carbon emission legislation faces this year.

CARB Adopts Refrigerant Management Regulations

The California Air Resources Board approved the proposed refrigerant management regulations during the first day of its public hearings today. A draft of the proposed regulations, which HARDI had been working on with the agency for over a year, can be found here, and reflects a number of significant changes made in the interests of wholesale distributors of high-GWP refrigerants. Here is the presentation made to the Board by ARB staff regarding these proposed regulations. HARDI will update with finalized materials once available.