EPA & the Supermarket Industry: Partners in Environmental Protection

1. EPA & the Supermarket Industry: Partners in Environmental Protection GreenChill Advanced Refrigeration Partnership

2. Agenda • EPA and the supermarket industry • Upcoming regulatory initiatives • Upcoming voluntary initiatives • Long-term perspectives • Consumers and the environment

3. Upcoming Regulatory Initiatives Montreal Protocol • Treaty to reduce production of ozone depleting substances such as CFCs & HCFCs • HCFC Phaseout Milestone 2010 • Goals are to restore ozone layer, prevent harmful effects of ultraviolet radiation overexposure • Outstanding environmental and health benefits • 6.3 million U.S. skin cancer deaths prevented by 2165

4. Upcoming Regulatory Initiatives HCFC Phaseout Schedule

5. January 1, 2010 Ban on production and import of HCFC-22 except for on-going servicing needs in equipment manufactured before January 1, 2010. January 1, 2015 Ban on sale and use of all HCFCs except (1) for use in chemical reactions where the HCFCs are completely used up in the process, (2) reclaimed and recycled HCFCs, or (3) for on-going servicing needs in refrigeration equipment manufactured before January 1, 2010. January 1, 2020 Ban on remaining production and import of HCFC-22. January 1, 2030 Ban on remaining production and import of all other HCFCs. Upcoming Regulatory Initiatives Milestones for HCFC Phaseout

6. Upcoming Regulatory Initiatives HCFC-22 Supply & Demand 100,000 Anticipated R-22 Supply from Recovered R-22 90,000 Virgin R-22 Needed to Satisfy Service Demand 80,000 Total R-22 Service Demand 70,000 90% of U.S. HCFC Consumption Cap 60,000 U.S. HCFC Consumption Cap HCFC-22 (MT) 50,000 40,000 30,000 20,000 10,000 0 2015 2020 2010 Source: EPA's Vintaging Model (VM IO file_2007_11-12-07)

7. Upcoming Regulatory InitiativesHCFC-22 Supply & Demand

8. Upcoming Regulatory Initiatives Servicing Existing Equipment • In 2015, HCFC-22 needs will exceed the 2015 cap by more than 10,000 metric tons • Recovery and reuse needed to meet demand • What can you do? • Improve service practices (recover, recycle, reclaim) • Fix leaks • Replace equipment where economical

9. Upcoming Regulatory Initiatives During the Transition Period • Businesses have three options: • Convert existing system to alternative refrigerant • Buy a new system that uses an alternative refrigerant • Continue to operate existing system • Establish a plan to replace/repair leaking equipment • Recover and reuse refrigerant from equipment that is retired • Begin to transition to alternative refrigerants • Many businesses have started to switch • Consider amount of time needed to convert

10. Upcoming Regulatory InitiativesLeak Repair Rule • Moving through the process • End 2008 / beginning 2009 • Leak rates 

11. Voluntary InitiativesEPA Partnership Programs • More than 80 environmental partnership programs • Voluntary participation • No membership fee • Non-regulatory • Gives you a friendly face at the EPA

12. Voluntary InitiativesPartners for the Environment • www.epa.gov/partners • Achievement Through Partnership: A Progress Report Through 2000 • Boosting Your Bottom Line • Guide to EPA Climate Partnership Programs

13. Why are Voluntary Partnerships Important? • Focus is on cooperation and mutual advantage of business and environment • If it works, no need for regulation • More flexibility • Lower cost for business & lower cost for government • Good way to address problems that are difficult to regulate and/or difficult to enforce

14. Supermarket Refrigeration • HCFC-22 is primary refrigerant • Harms the ozone layer (ODP of .055) • Contributes to climate change (GWP of 1500) • Phase-out in 2010 of HCFC-22 production for new equipment; Limited production allowed until 2020 to service existing refrigeration equipment • DX systems are the dominant technology • Lg. refrigerant charges (ave. spmkt. = 4000 lbs.) • High leak rates (ave. 20-25% = about 1000 lbs. of refrigerant emitted PER SUPERMARKET per year)

15. GreenChill Advanced Refrigeration Partnership • An EPA cooperative alliance with the supermarket industry • Promotes the adoption of advanced refrigeration technologies, strategies, and practices • Reduce charges & emissions of ozone-depleting substances (potent greenhouse gases) • Help protect the ozone layer and protect against global warming

16. GreenChill Supermarket Partners

17. GreenChill Priorities Shift from DX systems to advanced refrigeration systems Shift from HCFC-22 to substitute refrigerants Promote reduced refrigerant charges Promote equipment leak tightness At production At installation Preventative maintenance

18. Why advanced refrigeration technology? • Montreal Protocol’s goal is ozone layer recovery – reduces ozone-depleting substances (CFCs & HCFCs) • Substitute refrigerants (HFCs) are ozone-safe, but they are greenhouse gases • Leaking 1000 pounds of greenhouse gas instead of 1000 pounds of ozone-depleting gas is substituting one environmental disaster for another

19. Benefits of Joining GreenChill • Benchmarking to evaluate progress • Recognition for actions beyond regulatory requirements • Build brand equity • Tools to attain corporate environmental stewardship and sustainability goals • Prepare for HCFC phaseout and other deadlines • Access to latest information on state-of-the-art refrigeration technologies, alternative refrigerants, and best practices • Networking & information sharing among partners

20. GreenChill Projects 2008 • GreenChill Supermarket Certification Program - gold & silver level • Best Practice Guidelines • Retrofits • Advanced Refrigeration Technology • Installation Leak Tightness • Reporting/partner goals/benchmarking • Supermarket emissions data • Equipment manufacturer leak tightness • HCFC-22 reclamation • Service Tech/Contractor Certification • Research • Energy efficiency theoretical study • Pilot projects

21. Retrofits = most widespread strategy to prepare for HCFC-22 phaseout in existing stores Opportunity to tighten up the system! GreenChill’s Retrofit Best Practice Guidelines

22. Best Practices GuidelinesAdvanced Refrigeration Technology Describes and explains alternatives to conventional DX systems Factors to consider when selecting an advanced refrigeration option Best practices to reduce refrigerant charge Best practices for leak tightness at production and installation Service and maintenance best practices for leak tightness Case studies

23. Long-Term Environmental Perspective • New administration • More environmental focus? • Expansion of GreenChill Partnership • Reduce refrigerant charges • Reduce leaks • Greenhouse gas regulation? • Implementation of new leak regulation • Other? Depends to a certain extent on you

24. Consumers & the Environment • Short-term • Price consciousness • But…consumers need to feel good about shopping at your stores (moral “permission”) • Long-term • Need to build brand equity • Position yourself for the future - differentiation vs. competitors • If your environmental activities aren’t publicized, consumers assume you aren’t doing anything • Waste costs money - what’s good for the environment is good for your bottom line

25. Contact Information - GreenChill Keilly Witman Stratospheric Protection Division, US EPA Tel: (202) 343-9742 witman.keilly@epa.gov

26. Contact Info – Phaseout and Regulatory • Phaseout: Cindy Newberg, newberg.cindy@epa.gov, 202-343-9729 • For Sec. 608: Julius Banks, banks.julius@epa.gov, 202-343-9870 • Additional Info: http://www.epa.gov/ozone/title6/phaseout/classtwo.html http://www.epa.gov/ozone/title6/allowance.html