1. New Realities In MAC Refrigerant Choice Stephen O. Andersen Kristen N. Taddonio US EPA Climate Protection Partnerships Division Alberto Ayala California Air Resources Board

2. The New Reality Obama Priorities –Economy, Security & Earth-in-Peril (Climate) Science Warnings –Tipping Points, Unimaginable Consequences Regulation Revival –Fast Changing, High Stakes, Full Tool Box –California Waiver Reconsidered –Federal Fuel Efficiency Standards Updated –EPA Climate Endangerment Finding

3. 9 December 2009 Consensus Agreed cooperation aimed at accelerating the commercial introduction of improved air conditioning systems in US and global markets using refrigerant R-1234yf which can significantly reduce the carbon-equivalent emissions of greenhouse gases while increasing vehicle fuel efficiency (German manufacturers prefer R-744, CARB is neutral)

4. Crystal Ball Automobiles abandon R134a –R1234yf except for German vehicles –Opportunities expand in California for R744 & R1234yf R134a priced high by trading, deposits & taxes Refrigerants sold only to qualified technicians working with best available technology International phase-down of high-GWP HFCs Executive orders & CAFE for superior LCCP Economic recovery skyrockets energy price Engineering genius needed at every stage

5. HFC-134a MAC Future EC F-Gas Directive timetable considered slow Rapid phaseout certain in leadership markets If USEPA grants California waiver, as widely expected, California and a dozen plus US states implement quickly, While California strengthens the original proposal, Automobile associations petition for EPA consolidation HFC Phase-down proposed under Montreal Protocol Copenhagen Protocol to be agreed in December 2009 Cap & trade premium prices for HFC-134a –$35/kg premium @ $25/metric tonne carbon price HFC market-pressure from ENGOs, Coca Cola, McDonalds, Unilever General Electric, et. al

6. HFC-134a Regulations EC Phaseout 2011-2017 California 1493 (Pavley law) endorsed by a dozen plus states New Car Climate Impact Labels –California, Connecticut, Florida, Massachusetts, Oregon… HFC-134a leak rate posted on Minnesota website, soon on California site –www.pca.state.mn.us/climatechange/mobileair.html#leakdata –Lowest @ 7gms/yr; Highest @ 30+ gms/year –Invites emission caps or refrigerant gas tax California acts on HFC-134a small cans with new deposit and recycling program –Starting at $10/can in California; Strategy is exportable to other states California and other state regulations in the works Action driven by public demands for climate protection, company demands for consistent rules, and legislative demands for revenue

7. Pride of Regulatory Authorship EC F-Gas Directive heard around the world –Stimulating breakthroughs in R744 performance –Inspiring CARB and other regional authorities –Rewarding HFC-1234yf for chemical excellence California Air Resource Board (CARB) –Integrating MAC refrigerant and fuel use incentives –Fighting for the right of states to be more stringent US EPA –Inside initiative on R744 & R152a SNAP –Green MAC LCCP © perfection w/GM, JAMA, NGOs

8. Pride of Engineering Excellence SAE leadership on testing & standards German & Japanese leadership on R744 US & Italian leadership on secondary loops Japanese leadership on electric drive French & US leadership on system leakage US leadership on HFC-1234yf & HFC-152a Global MAC Climate Protection Partnership, Green MAC LCCP ©, MAC energy efficiency, and so much more!

9. Pride of Chemical Excellence EC & German advocates of CO 2 DuPont & Honeywell for pioneering HFC-1234yf Arkema for chemical supply & service INEOS for Progress with AC-4

10. R-1234yf Way Forward USA Automakers accelerate commercialization to help satisfy green federal loan conditions Associations jump start regulatory approval and help put in place complementary regulations OEMs, standards organizations, government partnerships, NGOs, and suppliers continue cooperation on optimizing systems & service Teams take forward proven technology to developing countries under carbon trading finance or corporate leadership campaigns

11. Way Forward in California/Other States California environmental performance strategy and incentives convince automakers to accelerate HFC-134a phaseout in MACs to help satisfy green federal loan conditions R-744, R-152a, R-1234yf, and –AC4 systems qualify under CARB as an environmentally superior choices Advocates jump start regulatory approval and help put in place complementary regulations & work with in Louisiana, North Dakota, Oklahoma to remove final statutory barriers. OEMs, standards organizations, government partnerships, NGOs, and suppliers continue cooperation on optimizing systems & service Teams take forward the best proven technology to developing countries under carbon trading finance or corporate leadership campaigns

12. R-1234yf Way Forward Under SAE Publish detailed findings for public review Identify technology for near-zero refrigerant emissions and high energy efficiency systems –Superior LCCP, reliable systems, safely serviced Put in place standards that can be referenced in SNAP and/or state approval of R-1234yf Cooperate to resolve any problems identified

13. R744 Way Forward under SAE and other organizations Publish detailed findings for public review Identify technology for near-zero refrigerant emissions and high energy efficiency systems –Superior LCCP, reliable systems, safely serviced Put in place standards that can be referenced in SNAP and/or state approval of R-744 Cooperate to resolve any problems identified

14. CO 2 2 2 Transportation Mine LCCP Global Environmental Acceptability Metric CO 2 2 Refrigerant MANUFACTURING Transportation Indirect Emissions End-use of chemicals Direct Emissions CO2 HFC Atmospheric degradation products + Recycling HCOF COF 2 HF CO 2 Breakdown CO2 TFA To be Included in the analysis HFC Refrigerant USE Refrigerant End-of-Life Raw Materials HFC

15. Easy or Hard, Take Your Pick EASY –Industry leadership ahead of regulation –Global HFC-1234yf transition –SAE testing and standards HARD –Patchwork of treaty, national & local regulations –Each market with a favored refrigerant –Trade barriers & inconsistent standards ciaos

16. Meetings 11-12 FebruaryVDASaalfelden Austria 04-05 MarchJSAETokyo Japan 14-16 JulySAEScottsdale AZ 29 SeptemberVTMSPhoenix AZ

17. Contacts California Air Resources Board –Dr. Albert Ayala, +1 916-327-2952 Aayala@arb.ca.gov Mobile AC Climate Protection Partnership –Dr Stephen O. Andersen,+ 1 202 343 9069 Andersen.Stephen@epa.gov –Kristen N. Taddonio, +1 202 343 9234 Taddonio.Kristen@epa.gov EPA SNAP –Drusilla Hufford, +1 202 343 9101 Hufford.Drusilla@epa.gov –Karen Thundiyil, +1 202 343 9464 Thundiyil.Karen@epa.gov

18. Backup Slides

19. State Barriers: Three Years Ago 1.Arizona Arizona Revised Statutes § 41-2169 2.ArkansasArkansas Statute 28.05.011 3.District of ColumbiaR33 Change 51 738.1 738.4 4.ConnecticutConnecticut Statues 246-14-106 5.FloridaFlorida Statutes 325.222 & 325.223 6.IdahoIdaho Code 49-959 7.IndianaIndiana Code 9-19-2-1 8.Iowa Administrative Code 66151.102(101) 9.KansasKansas Statutes Annotated 8-1747 10.LouisianaLouisiana Revised Statutes 32:375 & 40:1846(f) 11.MarylandMaryland Statutes 22-410 12.Montana Montana Code Annotated § 61-9-426 13.North DakotaNorth Dakota Century Code 39-21-45 14.OklahomaOklahoma Statutes 47-12-410 15.TexasTexas Statutes, Transportation Code 547.610 16.UtahUtah Code 41-6a-1640 17.VirginiaVirginia Code 46.2-1088 18.WashingtonRevised Code of Washington 46.37.470 19.Wisconsin Wisconsin Administrative Code ATCP 139.04(11)

20. State Barriers, Today 1.LouisianaLouisiana Statute 40:1846(f) 2.North DakotaNorth Dakota Code 39-21-45 3.Oklahoma47 Oklahoma Statute 12-410

21. ConnecticutConnecticut Statute § 14-106New Law. Allows refrigerants listed by SNAP. ArizonaRevised Statutes § 41 2169Arizona law allows any refrigerant approved by U.S. EPA and permits non- hydrocarbon flammable refrigerants like HFC-152a and R-1234yf. IowaAdministrative Code 661 51.102(101) Barrier only exists for hydrocarbons. IndianaIndiana Code 9-19-2-1 IN HB 1253 introduced January 2009. The legislation prohibits the use of toxic/flammable refrigerants unless the refrigerant is included in the list published by the US EPA as a safe alternative motor vehicle air conditioning substitute for chlorofluorocarbon-12 under 42 U.S.C. 7671k( c ). IdahoIdaho Statute 49-959Recently decided to use SAE J639 KansasKansas Statute 8-1747Department of Transportation to recommend new law MontanaCode Annotated § 61-9-426Alternatives automatically approved if listed by U.S. EPA SNAP. MarylandMaryland Statute § 22-410Senate Bill 69 introduced January 2009, allows refrigerants listed by EPA SNAP. Unanimous approval as of January 16. WisconsinAdministrative Code 139.04(11)Barrier only exists for hydrocarbons. ArkansasArkansas Statue 28.05.011Law can no longer be found. TexasTransportation Code 547.610Department of Transportation to recommend new law DCR33 Change 51 738.1Law can no longer be found. VirginiaVirginia Code 46.2-1088New Law! Allows refrigerants listed by SNAP. Effective July 1, 2008. Utah41-6a-1640.R714-210-3. Federal Standards Adopted and Incorporated by Reference. The Department of Public Safety hereby adopts the motor vehicle air conditioning equipment standards set forth in 40 CFR 82.30 through 82.42, and Pt. 82, Subpt. B, App. A and App. B (2006 edition) … WashingtonRevised Code 46.37.470Contacts confirm a bill will be introduced; possibly 2009, definitely by 2010. FloridaFlorida Statutes 325.222 & 325.223 Does not apply to HFC-152a or HFC 1234yf.