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## CLIMATE DAILY NEWS 

# Setting Precedent, NRDC, Industry Reach Agreement O n HFC Phaseouts February 01, 2016 Correction Appended Environmentalists and industry groups are jointly a sking EPA to extend and synchronize any proposed de adline to phase out several hydrofluorocarbons (HFCs) -- high global warming potential (GWP) refrigerants -- in commercial chillers, opening the door for similar talks over c hemicals used in other appliances that advocates ha d petitioned the agency to ban. In a Feb. 1 letter

obtained by InsideEPA/climate , the Natural Resources Defense Council (NRDC) and the AirConditioning, Heating and Refrigeration Institute ( AHRI) propose a negotiated phaseout schedule for th ree high-GWP HFC refrigerants used in chiller equipment that is as much as four years longer than what NRDC had pet itioned the agency to adopt in an upcoming rulemaking. The agreement comes after weeks of talks between NR DC and manufacturers of the chillers -- one of the sectors EPA has said it will targetin an upcoming rulemaking under the Significant Ne w Alternatives Policy (SNAP) program, a measure that will form part of the administration's commitments to reduce greenhouse gas emissions und er an upcoming amendment being negotiated to the Montreal Protocol later this year. “NRDC and AHRI find the consensus-driven, comprehen sive nature of this recommendation to be a strong s tatement of support for EPA's forthcoming SNAP proposal, and we hope EPA proposes changes of status accordingly ,” reads the letter, signed by AHRI President Stephen Yurek and NRDC's climate program director David Doniger. They add: “We look forward to working with EPA on future SNAP rulemakings to ensure a responsible tran sition to climate-friendly air conditioning and refrigeration systems.” The groups' agreement on the chemical phaseout echo es similar efforts under the Energy Department's (D OE) related program setting efficiency standards for scores of appliances. There, officials have convened negotiat ions between environmentalists and industry groups that have so far yielded several agreements to tighten standards for several refrigeration and cooling appliances, many of which rely on the chemicals regulated by EPA. The DOE agreements, such as the recent deal setting standards for residential air-conditioners and heat pumps, is bolstering industry calls for similar negotiations to develop other efficiency standards. In the deal over HFCs for chillers, units that remo ve heat from a liquid in commercial cooling systems , the agreed-upon phaseout schedule would delist effective Jan. 1, 20 25, three refrigerants -- R-134a, R-410A and R-407C-- “from the list of acceptable alternatives in all new air-cooled an d water-cooled chillers using centrifugal, screw, s croll, and all other compressor types.” The phaseout date is several years later than datesNRDC had originally proposed in an Oct. 6, 2015, petition to EPA asking the agency to set deadlines for replacing HF Cs in several types of chillers, as well as a varie ty of other applications -- including medium- and heavy-duty tr ucks, refrigerators, portable air conditioners, hom e air conditioners, commercial rooftop units, cold storage warehouses a nd foams. NRDC Petition In its petition, NRDC had called for the removal of HFC-134a from the list of acceptable substitutes for chillers by Jan. 1, 2019, and for the removal of R-410A by Jan. 1, 2 023. Thus, the consensus phaseout schedule, by whic h all three substances would be phased out by 2025, allows adeq uate time -- eight years -- for manufacturers “to finish designing and bringing to market chillers using alternative refrigerants,” according to the letter. 

## Page 1 of 2 Setting Precedent, NRDC, Industry Reach Agreement On HFC Phaseouts | InsideEPA cli

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2/ 5/2016 http://insideepaclimate.com/climate

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redesign products, as well as covering factories to allow for the use of some alternative refrigerantsthat are mildly flammable -- specific concerns that “wouldn't be ap parent to folks that don't build chillers,” says on e industry source familiar with the agreement. The industry source praised the agreement, calling it a “doable plan” and noting that both industry an d environmentalists are hoping EPA will adopt the app roach in its upcoming SNAP proposal. The agreement “gives the industry certainty while providing some of the nece ssary time for the transition [industry] would need to take to incorporate some of these refrigerants that have mi ld flammability,” the source told InsideEPA/climate

. The letter also notes that the softened timeline wi ll allow individual manufacturers to set their own schedules for introducing new equipment in advance of 2025. “Alig ning the changes of status for all equipment types will encourage all alternatives to be evaluated and allow the flex ibility to design equipment with the lowest carbon footprint,” it reads. The industry source says the groups moved quickly to negotiate due to a “feeling that we don't have m uch time left before EPA issues the proposed rule.” The upcoming rulemaking, which EPA announced late last year will build upon the first SNAP rule removing several high-GWP HFC refrigerants from a list of approved s ubstances. EPA has been taking input from industry stakeholders on the new SNAP rulemaking process, though many i ndustry representatives remain concerned about the pace of administration actions and the approach by which ittargets sectors. Industry will be watching to see “how much input EP A takes on this next SNAP rule” to see if the agency is “listening or if we'll have a battle on our hands,” William McQua de, executive director of energy and sustainabilitypolicy at Johnson Controls, told InsideEPA/climatelast month. As a result, if EPA were to propose its newest SNAP rule including the deal reached between NRDC and A HRI, it could ease tensions among the agency and industry officia ls. In addition, though the recent agreement only focus es on chillers, the successful negotiations are als o likely to set a precedent for possible consensus on HFC phaseout sc hedules for other sectors -- particularly as indust ry faces the uncertainty of whether EPA will proceed to set stri ct phaseout schedules under the SNAP program or cod ify international schedules agreed to under the Montrea l Protocol. Countries are negotiating this year to craft an ame ndment governing a global phase-down of HFCs under the Montreal Protocol, with the goal of finalizing language by t he end of this year. EPA, however, has not yet comm itted to halting SNAP rulemakings should an international amendment be reached -- a key request from industry stakehold ers. Still, the industry source hailed the new HFC deal as establishing a “platform for cooperation,” addin g that it “could serve as a good model for future SNAP delisting rul es." The source says such negotiations would be of parti cular importance as EPA begins to look at sectors l ike residential air conditioning, where the use of mildly flammable alternatives will not be an option. “Hopefully we can enhance stakeholder input to EPA in the future,” the source says. -- Abby Smith( asmith@iwpnews.com ) Editor's Note:An earlier version of this article incorrectly ide ntified a sector where this agreement may be releva nt. Related News | Climate Regulation | 179551 

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