First Name | Tom |
---|---|
Last Name | Brown |
Email Address | tbrown@capseal.com |
Affiliation | Cap & Seal Co.; ARPI; AAIA |
Subject | Scoping Plan - Fee on 134a Refrigerant |
Comment | Comments to the California Air Resources Board From Cap & Seal Co., Inc. Regarding the Revised Climate Change Draft Scoping Plan December 1, 2008 Cap & Seal Co., Inc. is the manufacturer of threaded tops and gaskets for refrigerant cans as well as rupture discs for refrigerant cylinders. We submit the following comments on the Revised Draft AB 32 Scoping Plan. While we understand that the Scoping Plan is only a road map for climate change policy in California, and that the place to take up the specifics of the recommendations is within the respective rulemakings that will follow within each sector, we have grave concerns over the fact that CARB is also proposing to establish an upstream mitigation fee on the use of high GWP gases, a fee that will ultimately be passed on to consumers through higher product prices IN ADDITION TO a very complex and involved recycling program for small cans of refrigerant. The extra cost of the two programs could put refrigerant out of reach for the very people we are trying to provide alternatives for, the working and jobless middle class and poor of your state. In the revised Scoping Plan, CARB identified four Discrete Early Action measures to reduce greenhouse gas emissions from the refrigerants used in car air conditioners, semiconductor manufacturing, air quality tracer studies, and consumer products. CARB has also identified additional potential reduction opportunities based on specifications for future commercial and industrial refrigeration, changing the refrigerants used in auto air conditioning systems, and ensuring that existing car air conditioning systems as well as stationary refrigeration equipment do not leak. We support a balanced, cost-effective plan to reduce greenhouse gas emissions. Cap & Seal, working through ARPI is already playing a meaningful role in helping the state meet its policy goals for reducing green house gas emissions in California through participation in the early action rulemaking on Reduction of Refrigerant Emissions from Non-Professional Servicing. For two years we have worked with staff collaboratively and in good faith to develop a draft regulation that will yield real emissions reductions, is workable, and yet does not disadvantage low income Californians or communities of color. Importantly, the draft regulation should achieve an objective cost effectiveness measure. But it hasn’t been easy and it won’t be without additional cost to the consumer. Nevertheless, even with the reductions from the specific high GWP measures described above, the Scoping Plan would layer on top of the regulation an upstream fee for all refrigerant sold. ARPI discussed with CARB staff the possibility of a fee IN LIEU OF the regulation, but were told that emissions reductions were the objective. Now, on the eve of adoption of the regulation the prospect of a fee is raised IN ADDITION TO our mitigation proposals. The Plan notes that an upstream fee would ensure that the climate impact of these substances is reflected in the total cost of the product. Since the fee WILL FOLLOW the mitigation regulations, the “total cost” of our products will have already increased exponentially. And to add insult to injury, the Plan states that this mitigation fee would “complement” the downstream high GWP regulations currently being developed. We suspect that the result of a substantial fee in addition to the extra cost of the recycling and packaging improvements will be destruction of markets and economic hardship for both ARPI companies and Californians. We also anticipate the creation of increased smuggling activity in refrigerant, both in small cans and cylinders, from Mexico and neighboring states because of this proposed fee. During the conversion to R134a from R12, a national “floor tax” was put on R12 to encourage conversion to 134a. This was mostly effective but caused a situation where honest manufacturers were being pushed out of markets by smugglers. R12 became the second most trafficked item across the borders, second only to illegal drugs. There were instances of full ISO containers being smuggled as well as intentionally mismarked 30 lb cylinders and falsified certifications. It would be advisable to speak with US Customs yourselves about their opinion this idea to create a market for illegal 134a before you ask them for their help in this matter. You will certainly need all the enforcement help you can get. Adding a large fee to the increased cost of a newly promulgated regulation that involves a product container redesign, a reclamation program and an extensive education regime is not complementary. It is punitive. It could render the product line uneconomic and constitute a de facto product ban, thus ensuring an adverse impact on minorities and those on fixed incomes. This was exactly the result ARPI members were seeking to avoid through the development of an alternative regulation on the servicing of vehicle air conditioners by non-professionals. We wonder why the Plan would suggest that revenues from this fee could be used to mitigate greenhouse gas emissions either from other high GWP compounds or other greenhouse gases instead of to offset the costs associated with compliance with the regulatory regime noted above. We rather think that a good bit of the money collected will be needed for enforcement activities to keep illegal refrigerant out of California. ARPI companies will continue to work with CARB staff on the rulemaking. Rest assured that we also stand ready to work with the Board to implement a regulatory scheme aimed at reducing greenhouse gas emissions while not devastating our industry. We want to be part of the solution, but not if the price is our businesses. Respectfully Submitted, Thomas J. Brown President Cap & Seal Co., Inc. |
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Date and Time Comment Was Submitted | 2008-12-02 08:48:00 |
If you have any questions or comments please contact Clerk of the Board at (916) 322-5594.