Refrigerant Conversion Planning and Execution

On January 4, 2012, the U.S. Environmental Protection Agency (EPA) published a proposed ruling to adjust and further reduce HCFC allowances (i.e. the right to produce and/or import virgin R-22) over the period 2012-2014.

The reductions being proposed are significant, ranging from 11-47% per year over the period 2012-2014. The EPA has been working since the 1990’s to phase-out the amount of R-22 (and other high Global Warming Potential HCFCs), being produced, imported and used in the United States.  This latest proposed ruling is intended to “speed-up” the phase-out of these HCFCs.

While the final EPA rule will not likely be out until Q2 or Q3 of this year, suppliers have reacted to this proposed rule by increasing prices for R-22 significantly.

Based on this proposed EPA rule, the significant price increases and the forthcoming supply constraints of R-22, we recommend the following immediate courses of action:

• Protect your current assets, now! - Make sure to protect the R-22 currently in your systems and save significant dollars by:
  • Checking & validating your current leak-detection systems. You may need to increase the frequency of your leak checking; and,
  • If you do not have a leak detection system, it would be prudent to evaluate and consider installing one. Source is ready to assist with sound solutions to save and protect your refrigerant assets!
     
• Develop and implement a conversion plan - Create a systematic plan for converting your existing R-22 (or other HCFCs) systems to HFC refrigerants.  Source has effective conversion programs to help you through this process, which include some of the following steps:
  • Develop a detailed conversion plan, prioritizing stores that are the best candidates for refrigerant changes.
  • Assist in choosing the correct refrigerant to fit your corporate objectives.
  • Execute conversions to match your service refrigerant needs, as well as providing a buffer for minimizing supply risk going forward.
  • Define a plan to track and handle reclaimed refrigerant.
  • Minimize system and store disruption.

The significant price increases on R-22 have put a major financial burden on all of us, and if the proposed rule becomes official as expected, supply shortages of R-22 in 2013 are likely. We highly recommend being proactive in protecting your current R-22 assets and planning for your conversions now!

Please contact Source today at 888-473-3715 or R22@sourcerefrigeration.com  with any questions and to let us know your R-22 situation and how we can work with you to minimize your R-22 costs and develop conversion plans for the imminent supply challenges.   We look forward to working with you to develop solutions for your specific needs.