11-06-2017 Council Packet - Laserfiche WebLink

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id _ .. _,,,, David W Carlson 651-255-3536 Direct 1001 Labore Industrial Court, Suite B 651-230-7705 Cell Vadnais Heights, MN 55110 dcarlson@nac-hvac.com R22 Refrigerant Facts: Excerpts taken from "The News" publication: November 2014 Contractors who have found virgin hydrochlorofluorocarbon (HCFC) -22 readily available at their local supply houses had best prepare for a drastic drop-off in such supplies very soon. The U.S. Environmental Protection Agency (EPA) announced its final phasedown schedule regarding production and importation of HCFC -22 on Oct. 16. The order calls for an immediate drop from 51 million pounds allowed in 2014 to 22 million pounds beginning Jan. 1, 2015. Subsequently, 18 million pounds of new and imported R-22 will be allowed in 2016, 13 million pounds in 2017, 9 million pounds in 2018, and 4 million pounds in 2019. No new or imported R-22 will be allowed in the U.S. on or after Jan. 1, 2020. Immediate Impact The impact on virgin R-22 supplies will be almost immediate. "The agency settled on a much more aggressive schedule — a 57 percent reduction from the 2014 allocation," said Gordon McKinney, vice president, ICOR Intl. Inc. "We encourage all of our associates to prepare for a dramatic increase in R-22 pricing and a major spike in alternative refrigerant sales and reclaim activity." Steve Melia, CEO, ComStar Intl. Inc., predicted immediate and future shortages and price increases. "These are normal results and will be expected by the industry at large. [But] as this moves forward, the market will dictate what fills the vacuum and the direction the industry takes. Once the word gets out to all levels of our industry, we should hear a sigh of relief. The five-year allocation plan will give the industry the ability to make financial decisions that will help the overall industry and economy." Maureen Beatty, vice president of operations, National Refrigerants Inc., said some suppliers may limit the quantity of R-22 they are offering, but that does not mean R-22 is unavailable. "Contractors should make sure they are buying from a reputable supplier who will assure the legitimacy and quality of the R- 22 they sell," she said. Honeywell Intl. Inc. addressed immediate implications in an announcement: "One model suggests this ruling will result in existing channel inventory to be drawn down at an accelerated rate as end users attempt to build stock in anticipation of limited supply, while others hold inventory. The combined effect could be limited supply near-term. Contractors should prepare accordingly." Honeywell's statement also referenced an existing base of hydrofluorocarbon (HFC) refrigerants that can be retrofitted into existing R-22 systems, a process that has been successful for a number of years, adding, "these are proven alternatives to R-22 for every application. Contractors should take steps to educate themselves and their customers on the alternatives." Mechanical 4 Electrical 4 Fabrication 4 Building Technology s 24 Hour Service