1. California Grocers Association
California Air Resources Board Refrigeration, Climate Change and the Changing Regulatory Framework
California Grocers Association
Webinar
Glenn Gallagher, Staff Air Pollution Specialist
Jason Meggs, Air Pollution Specialist
Thank you for having me here today.
ARB has worked closely with AHRI over the years to help meet California’s ambitious GHG reduction goals, including the adoption and implementation of the Refrigerant Management Program and the development and adoption of the Scoping Plans and the Short-lived Climate Pollutant Reduction Strategy.
We look forward to continuing our collaboration with AHRI and other stakeholders as we develop greenhouse gas reduction measures that affect air-conditioning, heating, and refrigeration.
June 21, 2017

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3. By hosting this Webinar, California Grocers Association (CGA) and the CGA Educational Foundation (CGAEF) are providing an opportunity for their members and attendees to learn general information that may be of interest to your company. The Webinar is designed to provide practical and useful information on the subject matter covered. However, CGA is not engaged in rendering legal, accounting or other professional advice or services.
CGA/CGAEF does not review or approve the content of the webinar presented by guest speakers and others, and makes no representations or warranties about the accuracy or legality of any legal or other recommendations provided during the webinar. If legal advice or other expert assistance is required, the services of a competent professional should be sought.
CGAEF Disclaimer
By hosting this Webinar, California Grocers Association (CGA) and the CGA Educational Foundation (CGAEF) are providing an opportunity for their members and attendees to learn general information that may be of interest to your company. The Webinar is designed to provide practical and useful information on the subject matter covered. However, CGA is not engaged in rendering legal, accounting or other professional advice or services.
CGA/CGAEF does not review or approve the content of the webinar presented by guest speakers and others, and makes no representations or warranties about the accuracy or legality of any legal or other recommendations provided during the webinar. If legal advice or other expert assistance is required, the services of a competent professional should be sought.

4. California Grocers Association
California Air Resources Board Refrigeration, Climate Change and the Changing Regulatory Framework
California Grocers Association
Webinar
Glenn Gallagher, Staff Air Pollution Specialist
Jason Meggs, Air Pollution Specialist
Thank you for having me here today.
ARB has worked closely with AHRI over the years to help meet California’s ambitious GHG reduction goals, including the adoption and implementation of the Refrigerant Management Program and the development and adoption of the Scoping Plans and the Short-lived Climate Pollutant Reduction Strategy.
We look forward to continuing our collaboration with AHRI and other stakeholders as we develop greenhouse gas reduction measures that affect air-conditioning, heating, and refrigeration.
June 21, 2017

5. CA GHG Emission Reduction Goals
Internal Document - Discussion Purposes Only
CA GHG Emission Reduction Goals
BAU
Emissions to be reduced by 2020
AB 32 Requirement
Total GHG
(MMTCO2E)
SB 32 Requirement
Executive Order
Assembly Bill 32 requires California to reduce GHG emissions to 1990 levels by year 2020, which we are on target to meet.
Senate Bill 32 requires a 40 percent reduction in GHG emissions below 1990 levels by 2030.
Additionally the Governor’s Executive Order requires an 80 percent reduction in GHG emissions below 1990 levels by 2050.
Refrigeration, Climate Change & the Changing Regulatory Framework – CGA – June 21, 2017 5

7. Short-Lived Climate Pollutants (SLCPs) - Why?
SLCPs have very high GWPs and an atmospheric lifetime of a few weeks to a few decades
Result in significant short-term GHG reduction benefits
Include: methane, black carbon (soot), and hydrofluorocarbons (HFCs)
CA Senate Bill 1383 requires ARB to adopt and implement SLCP Reductions Strategy
Requires 40% HFC reductions from 2013 levels by 2030
Board approved SLCP Strategy on March 23, 2017 4

8. Major Sources of HFCs in California
The pie chart shows the major sources of HFC emissions in California, dominated by refrigerants with 86 percent of HFC emissions.
HFCs are also used in aerosol propellants, insulating foam, solvents, and fire suppressants.

9. HFCs are potent Greenhouse Gases
HFCs are currently 4% of all GHGs; but are the fastest growing source of GHGs
1 lb. R-410A = global warming potential (GWP) of = 2088 lbs. CO2 = 2,300 vehicle miles
1 lb. R-404A or R-507A = GWP > 3900 =
> 3900 lbs. CO = 4,200 vehicle miles
However, HFCs are potent greenhouse gases and are the fastest growing source of GHGs.
Because many HFCs have global warming potentials thousands of times greater than CO2, just one pound of refrigerant R-410A released is equivalent to the emissions from a vehicle driving 2,300 miles. One pound of R-404A is equivalent to 4,200 vehicle miles.

10. GWPs of Common Gases
Refrigerant
GWP (100-Year)
This slide shows the GWPs of Kyoto and Non-Kyoto gases.
The top 6 first includes three Kyoto high-GWP GHG followed by three non-Kyoto high-GWP GHG.
HFCs, CFCs, and HCFCs bolded in blue are commonly used as refrigerants and the gases most applicable to the Refrigerant Management Program.
Some of the Kyoto and Non-Kyoto gases have very high-GWPs, several thousand times that of CO2, this is why they deserve our attention for mitigation.
Ammonia listed on the bottom is neither a Kyoto gas nor a high-GWP GHG. Ammonia based refrigeration systems are not impacted by this measure.
Global Warming Potential (GWP) is the total contribution to global warming resulting from the emission of that gas relative to carbon dioxide, by weight, over any given time period (usually 100 years).

11. Issue: HFC emissions are growing
As ozone-depleting substances are phased out, HFCs increase
The reason HFC emissions are growing rapidly is because they are replacing ozone-depleting substances such as Freon-type refrigerants. Emissions of the ozone-depleting substances shown in the dark blue dashed line are declining, while HFCs emissions shown in the turquoise line continue to increase.

12. How will California achieve the required HFC Emissions Reductions by 2030?
Current ARB Measures
Current U.S. EPA Measures
Global Phasedown in Supply of HFCs
Additional HFC Reduction Measures
How will California achieve the required HFC Emissions Reductions by 2030?

13. Current ARB F-gas Reduction Efforts
Regulations adopted under AB 32:
Refrigerant Management Program (RMP, effective 2011)
Advanced Clean Cars (now national)
MVAC DIYer Small Can Recycling
Consumer product aerosol propellants
Semiconductor manufacturing F-gas reductions
SF6 reductions in magnesium casting
Cap-and-Trade offset protocol for the capture and destruction of ozone depleting substances
In order to meet the AB 32 target for 2020, we adopted several regulations in 2009 and 2010 to reduce emissions of HFCs and other fluorinated gases, or F-gases.
The regulations listed on the slide reduce refrigerants from stationary and mobile sources, those used as aerosol propellants, and for semiconductor manufacturing and magnesium casting. Almost all of these regulations have been adopted as national requirements by the U.S. EPA.
A cap-and-trade offset protocol incentivizes the capture and destruction of ozone depleting substances such as CFC-11 and CFC-12.

14. Refrigerant Management Program (RMP) Rule Applicability
Facility owners/operators of non-residential facilities with a stationary refrigeration system that uses more than 50-lbs of a high-GWP refrigerant (excludes comfort cooling)
Over 6,000 facilities registered
Grocery, Cold Storage, Process Cooling, etc.
Any person who installs, services, or repairs a refrigeration or A/C system using a high-GWP gas
(Required Service Practices)
Any distributor, wholesaler, reclaimer, who sells or reclaims high-GWP refrigerant

15. In effect for all Facilities since 2011
RMP Overview
- Periodic leak inspections or ALD
- Repairs within 14 days
- On-site recordkeeping for 5 years
- Required service practices
- Large and Medium facilities (≥200 lbs.)
report and pay fee
- Distributors, Wholesalers, Reclaimers report
- Small facilities update registration
information
In effect for all Facilities since 2011
Due Annually By March 1

16. Here is a snapshot of our website that contains much of the information we will be covering during the webinar. We have information about low-GWP refrigerants, updates to the federal 608 and SNAP rulemakings, and other information about our Refrigerant Management Program regulation including an overview of how to do a leak inspection.
There are some great online resources here that can help facility owners with refrigeration management.

17. Current U.S. EPA Measures to Reduce HFC Emissions
Clean Air Act Section 608 requires proper refrigerant management - now extended to HFCs
Significant New Alternatives Policy (SNAP) Program regulates acceptable and unacceptable refrigerants and HFCs
For example, very-high GWP refrigerants were no longer allowed in new supermarket refrigeration equipment beginning January 2017
The U.S. EPA is reducing HFC emissions by requiring proper refrigerant management under Clean Air Act Section 608.
The EPA also regulates acceptable and unacceptable refrigerants and HFCs under the Significant New Alternatives Policy (SNAP) Program.
HFC emissions reductions occur when high-GWP refrigerants are not allowed in new equipment, as is the case for new supermarket refrigeration equipment beginning this year.

18. The Global Phasedown in Production & Consumption (Supply) of HFCs (“Kigali Amendment”) - Schedule for the U.S.
In October 2016, the Montreal Protocol was amended to include a global phasedown of HFC production and consumption, or supply. The global phasedown is commonly called the “Kigali Amendment”, because it was ratified in Kigali, Rwanda.
The phasedown schedule for developed countries including the U.S. is shown here.
In 2019, the supply will be 10 percent less than the baseline of average usage from 2011 to 2013.
In 2024, the supply decreases to 40 percent less; and then to 70 percent less in 2029.
The phasedown stops at 2036 and future years where the new baseline supply is 85 percent less.
80% less in 2034

19. Additional HFC reductions needed could be achieved by HFC measures proposed in the SLCP Strategy
These additional HFC reductions needed could be achieved by HFC measures proposed in the SLCP Strategy approved this March.

20. Proposed HFC Reduction Measures in CA
Incentive program ($$) for new low-GWP refrigeration Status: Currently, only electric utility energy efficiency rebates are available.
HFC Phasedown in California Status: Will defer to the global phasedown adopted Oct in Kigali, Rwanda.
Four HFC reduction measures were approved in the SLCP Strategy.
The first measure is an incentive program to provide funding to cover the additional cost of low-GWP refrigeration in new or remodeled grocery stores, primarily in disadvantaged communities. Funding was not available from cap and trade funds this fiscal year. The only incentive funds for low-GWP are from electric utilities for energy efficiency rebates.
The second measure is a California phase-down in the supply of HFCs, but we will defer to the global phasedown schedule.
Flag of Rwanda

21. Proposed HFC Reduction Measures in CA
Prohibition on refrigerants > 150 GWP in new refrigeration equipment; and > 750 GWP in new stationary air-conditioning equipment Status: Refrigeration measure to proceed first Low and lower-GWP options for existing HFC air- conditioning systems not yet available. Most AC refrigerants < 750 GWP are slightly flammable, currently not allowed by codes and standards Some low-GWP AC solutions are increasingly available for some end uses (e.g., low-charge ammonia or HFO chillers cooling water for office AC).
The third measure is a prohibition on refrigerants with a GWP greater than 150 in new refrigeration equipment; and a prohibition on refrigerants with a GWP greater than 750 in new air conditioning equipment.
The refrigeration measure is expected to proceed first. The beginning date of the measure will be determined after thorough public outreach during rule-making and feedback from stakeholders.
Lower-GWP air-conditioning is not yet commercially available and will not be required at this time. Most AC refrigerants with a GWP less than 750 are slightly flammable, and are not allowed by the codes and standards as currently written.

22. Proposed HFC Reduction Measures in CA
Sales restriction on refrigerants > 2500 GWP; followed by sales restriction > 1500 GWP approximately four years later Exemption for recycled or reclaimed refrigerants Status: ARB is assessing the potential impact on the purchase of refrigerant from out-of-state that would prolong high-GWP emissions, and looking into an equipment servicing ban as an alternative
The fourth measure is a sales restriction on refrigerants with very-high GWPs. An exemption would be provided for recycled or reclaimed refrigerants.
ARB is assessing the potential impact on the purchase of refrigerant from out-of-state that would prolong high-GWP emissions, and looking into an equipment servicing ban as an alternative.

23. If California prohibits high-GWP refrigerants, which refrigerants can be used?

24. Hydrocarbons: Propane, Isobutane (GWP < 4)
Low-GWP Refrigerants < 150 GWP for Refrigeration
Hydrocarbons: Propane, Isobutane (GWP < 4)
Carbon Dioxide (GWP = 1)
Ammonia (GWP = 0)
Hydrofluoro-olefins (HFOs) are HFCs that have unsaturated bonds and break down quickly in the atmosphere resulting in no ozone-depleting and little global warming.
Low-GWP refrigerants include the natural refrigerants of carbon dioxide (as refrigerant), ammonia, and hydrocarbons such as propane and isobutane.
The newest class of fluorinated refrigerants are the hydrofluoro- olefins, or HFOs, which have a low GWP of one. HFOs are essentially HFCs that have unsaturated bonds and break down quickly if they escape into the atmosphere, resulting in no ozone-depleting and little global warming.
HFOs (GWP = 1)

25. California Low-GWP Refrigeration:
Ammonia/CO2 hybrid system
Albertsons in Carpinteria
Whole Foods in Dublin
Low-charge ammonia options (U.S. Cold Storage)
Reach-in units (hydrocarbon)
Cost parity, up to 70% higher energy efficiency
Standard at numerous grocery retailers
Transcritical CO2
Aldi stores (approximately 30 statewide)
Whole Foods in Berkeley, San Francisco, Santa Clara
Trader Joe’s (5 stores)
Hybrid Systems (HFC/HFO-CO2)
Reduced primary charge – 33 in California as of 2015 (standard at Target)

26. Example Low-GWP Groceries (2016):
Company
City
Technology
Year
Number
Albertsons
Carpinteria
NH3/CO2 hybrid
2012 1
Whole Foods Market
Dublin
2015
Berkeley, SJO, LA
CO2 transcritical
2014, 2016 3
Trader Joe's
So Cal
2016 4
Santa Clara
Propane/CO2 hybrid
ALDI 29
TOTAL 39

27. Growth in full CO2 Groceries (to 2016)

28. CO2 Energy Efficiency vs. R-404A
Source: Ejector technology – The next generation in transcritical CO2 - James K. Knudsen (Danfoss), ATMOsphere America 2017, June 6, 2017, San Diego, CA

29. Ammonia/CO2 Energy Efficiency vs. HFC
CTA, Inc. found 16.5% energy savings of NH3/CO2 over HFC/CO2 comparison system at same store in Georgia.
Heatcraft/Kysor-Warren (manufacturer) estimates this would save approximately $70K/year in energy cost over traditional HFC-only solution (33% energy efficiency improvement).
Source: Piggly Wiggly's Experiences Using an Ammonia/Carbon Dioxide System. - December 6, 2017, GreenChill Webinar (U.S. EPA program)

30. Barriers to Adopting Low-GWP Refrigeration and Lower-GWP Air-conditioning
Codes and standards lagging behind
Energy efficiency latest improvements not always known
Concerns over Initial Cost vs. Total Lifetime Cost
The barriers to adopting low-GWP refrigeration and lower-GWP air-conditioning include the codes and standards mentioned, concerns over the higher initial cost for some low-GWP equipment despite lower total lifetime cost, and the energy efficiency benefits not yet recognized by users.

31. Incentives

32. Potential Incentive Options :
Utility Rebates
Approximately $1B USD/year but limited to EE (cents/kWh)
Valuation of Carbon (expand energy rebates)
New Program at Sacramento Municipal Utility District (SMUD), and
Statewide efforts at CPUC: SC-CO2, SB 350 (Market Transformation)
Energy R&D Programs
Emerging Technologies Programs ($20M/year)
Electric Program Investment Charge (EPIC) Program
Cap-and-Trade Auction Proceeds
Large potential source of funds, highly cost-effective
Did not survive political process in 2016

33. Potential Incentive Options (cont.):
Enforcement Settlements and Mitigations
Supplemental Environmental Projects (SEP) program @ARB
Reduced Regulatory Burden
Refrigerant leaks cost, as does compliance
Recent enforcement cases up to $150,000 or more
Offsets
Currently limited to certain types of ODS
Awards and Recognition
GreenChill, Governor’s GEELA award, ATMO and more.

34. SMUD Pilot Natural Refrigerant Incentives Program:
Launched March 30, 2017
Up to $150,000 for avoided greenhouse gas emissions
Up to $150,000 for energy efficiency rebates
Total cannot exceed $250,000
Links to existing programs
Custom Incentive and Savings by Design Program framework
Joint application process
Disadvantaged Community GHG bonus
10% bonus for projects located in Disadvantaged Communities
Increased to 25% bonus if small business project
Max GHG bonus remains $150K ($25/MtCO2e)
Applications open!

35. For more info on this SMUD program:
R. Ryan Hammond, P.E.
Senior Energy Advisor, Commercial Services
Sacramento Municipal Utility District
6301 S Street, Mail Stop A102, Sacramento, CA 95817
P.O. Box 15830, Sacramento, CA 
w | f | c |

36. Additional Resources
North American Sustainable Refrigeration Council (NASRC)
Source Refrigeration – installation and maintenance of low-GWP
Whole Foods, Target, other end users collaborating
Publishing guides and resources
shecco
ATMOsphere America conference – presentations online
Websites, guides, Accelerate America magazine

37. Summary
Achieving the California 2030 HFC Reduction Goals will be challenging
Global HFC Phase-down will result in significant reductions, but not enough for CA to meet 2030 goals
Low-GWP cost-effective solutions exist today for refrigeration, and some for AC, with additional AC options expected within 4-5 years (after codes and standards are updated)
In summary,
Achieving the California 2030 HFC Reduction Goals will be challenging.
The Global HFC Phase-down will result in significant reductions, but not enough for CA to meet 2030 goals
Low-GWP cost-effective solutions exist today for refrigeration, and are expected in 4-5 years for AC (after codes and standards are updated)
ARB looks forward to working with AHRI and all stakeholders to develop cost-effective and practical measures to reduce HFC emissions from refrigeration and air-conditioning equipment.
Thank you.

38. Next Steps
ARB currently assessing impact of global phasedown on future CA HFC emissions, under scientific review, available to public Fall 2017
Continue to work on codes and standards updates to allow more low-GWP options
Continue to develop incentive programs
Official Notice of HFC rulemaking – Fall 2017
Workshops and public input 2017 – 2018
In summary,
Achieving the California 2030 HFC Reduction Goals will be challenging.
The Global HFC Phase-down will result in significant reductions, but not enough for CA to meet 2030 goals
Low-GWP cost-effective solutions exist today for refrigeration, and are expected in 4-5 years for AC (after codes and standards are updated)
ARB looks forward to working with AHRI and all stakeholders to develop cost-effective and practical measures to reduce HFC emissions from refrigeration and air-conditioning equipment.
Thank you.

39. ARB Contact Information
SLCP Measures: Glenn Gallagher, Pamela Gupta (Supervisor), Web: Incentives: Jason Meggs, Web: Refrigerant Management Program: Erin Szelagowski, , Ken Bowers, , Web: notices listserv:
Methane 25 to 28 over a 100‑year timespan, and from 72 to 84 over a 20-year timespan.