Paradigm Shifts in refrigerant management

1. Paradigm Shifts in refrigerant management

2. Key Questions to ask system owners • Do you have an existing environmental responsibility program? • Are your used refrigerants included in your environmental responsibility program? • Do you know where your mechanical contractor purchases the refrigerants to put into your system AND do you know what happens to those refrigerants when they are taken out of your systems? • Did you know that it is possible to track your refrigerants’ carbon footprint? • Did you know that your refrigerant needs can be managed in a way that will lower your costs and make you more environmentally responsible?

3. Two Significant regulatory paradigm shifts • Regulatory Paradigm Shift • Production Paradigm Shift

4. The Regulatory Paradigm Shift November 15, 1995: The Clean Air Act (Section 608)

5. 15 Years Later

8. Who’s Going to Pay?

9. Enter California

10. Aggressive Compliance & Reporting • System registration • Leak rate monitoring • Annual reporting • Management accountability • Refrigerant tracking • Lower leak maximum rates • Recycled refrigerants • Only EPA-certified technicians

11. Federal Program 2012?

12. Nationwide Initiatives

13. Western Climate Initiative

15. The production paradigm shift

16. HCFC Production & Importation To be cut by 90% • Montreal Protocol

17. Mandated production & consumption reduction

18. Unintended Consequences • R-401a • R-402a • R-404a • R-409a

19. What does this mean? • Scrap: • Incur new capital expense & purchase units that use R-410 • Sell-off existing units • Currently…robust aftermarket for used R-22 units

20. What does this mean? • Scrap: • Incur new capital expense & purchase units that use R-410 • Sell-off existing units • Currently…robust aftermarket for used R-22 units • Keep: • Availability of R-22 for service and maintenance will be dramatically curtailed • Significant price increases • Stockpile R-22 for future needs

21. System Owner Decision Making Process… • Average PTAC (Packaged Terminal Air Conditioner) uses 1.25 lbs. of refrigerant (between 7,000 & 18,000 BTUs) • Average leak rate = 20% • Annual need to maintain refrigerant levels = 1.5 lbs./unit • Emergency back-up: 10% • Total refrigerant needs = 1.65 lbs./unit • For every 1,000 units = 1,650 lbs./year • Average installed price of R-22 = $50/lb. - $75/lb.

22. Cost to Play - Today • @ $50/lb. = $82,500/year/1,000 units • @ $75/lb. = $123,750/year/1,000 units

23. @ 25% Projected annual price increase:

24. Any Options? • Budget now for shortages & increased cost of maintenance • Start a reclaim program now and bank existing refrigerants • Create a new bank and begin purchasing R-22 for future needs • Lower cost by buying direct • Guaranteed availability

25. So… • Quantifiable data • Manage cost • Lower risk on Carbon accountability • No cost increased and enhanced environmental stewardship • Managed cost and available refrigerant • Procurement • Clean & Return

26. www.refrigerantauthority.com www.polarresponsiblerecovery.com www.goearthmark.com