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Contractors not
Ready for Reclaim
by Peter
Powell
May 11, 2009
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One aspect
of the reclamation process is the transfer
of refrigerant from smaller to larger
cylinders. |
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Talk to reclaimers, wholesalers and, in fact, the
Environmental Protection Agency (EPA) and they will
tell you contractors need to do a better job of
bringing in HCFC-22 for reclamation to avoid a
shortfall of the refrigerant by as early as 2010.
Talk to many contractors and they will tell you the
incentives to submit their refrigerant for reclaim
just aren’t there yet — and they just prefer to
recover and recycle onsite what they have and keep
reusing it for as long as they can.
Two less clear issues are whether that refrigerant
is truly being recovered or if it is actually being
vented; and whether refrigerant of questionable
purity is being submitted for reclaim or if
contractors are just assuming it is pure enough to
continue using without reclaim verification.
These were some of the findings based on comments
solicited by
The NEWS over the past month in response
to an announcement earlier in the year that the
industry could experience a 20 percent shortfall of
virgin R-22 as early as 2010.
That tightening of the spigot is because “based on
an assessment of credible current scientific
information, a more stringent schedule may be
necessary to protect human health,” said the EPA in
its proposed rule (Protection of Stratospheric
Ozone: Adjustments to the Allowance System for
Controlling HCFC Production, Import, and Export)
published Dec. 23 with the potential of becoming a
final rule this summer.
It is the EPA contention “that a more stringent
schedule is practicable, taking into account
technological achievability, safety, and other
relevant factors.”
One of those factors is reclaim. “EPA is proposing
to allocate HCFC-22 and HCFC-142b allowances based
on the projected servicing needs for those
compounds, taking into account the amount of those
needs that can be met through recycling and
reclamation,” according to wording in the proposed
rule.
IF YOU BUILD IT,
WILL THEY COME?
It is the expectation by the EPA that any potential
shortfall of virgin R-22 can be offset by better
reclamation efforts within the HVACR industry that
has steered so much attention to the availability of
the reclaim option — even if contractors are not yet
willing to wholly embrace it.
“Today, there are numerous reclamation sites and
reclaim services available to refrigerant users.
However, the total amount of refrigerant being
returned for reclaim is dismal,” said Marc Richburg
of ICOR International/Refri-Claim.
“So where is the problem? From a total disregard of
leak rate and venting regulations to accidental
releases, there are no doubt a number of additional
factors contributing to poor recovery rates,” said
Richburg. “So can it be improved? The answer is yes.
It can be improved and it must be improved if we are
to close the R-22 supply gap.”
At least the link between reclaimers and wholesalers
is showing improvement, said Jodi Crawford of Airgas.
“We do see an uptick in wholesale suppliers offering
reclaim services to contractors. Refrigerant return
programs are becoming increasingly competitive with
reclaimers offering higher prices on refrigerants
(primarily R-22), lowering or eliminating fees, and
widening the specification for gas purity.”
She did admit, “We find that wholesale supply houses
find administering a reclamation program tedious.
Tracking cylinder deposits and swap-outs, returned
gas credits, and other business process functions
are a challenge — particularly for stores that are
not experienced in managing a gas return program.
“However, we believe offering gas return to a wide
array of contractors in a program that accepts
smaller volumes is the best way to increase the
total volume of reclaimed refrigerant. Taking this
one step further, we believe that a financial
incentive will help grow the number of contractors
that make the extra effort to collect and return
refrigerant for reclamation.”
Like many reclaimers, Chuck Harkins of Hudson
Technologies has seen an uptick in business. “There
is activity and quite a bit more awareness than in
past years. Many companies in the industry,
including manufacturers and wholesalers, feel it
necessary to actively offer and promote refrigerant
reclamation, much more so than in the past.
“With 2010 at our doorstep, the sense of awareness
has been heightened regarding the need for a
refrigerant reclamation program offering.”
Getting the word out is also a work in progress,
said Jimmy Trout of Allcool. “We promote our
services through wholesale distributors, direct
mailing, Website, and cold calling. However, most
business is generated from word-of-mouth and the EPA
Website where there is a list of EPA-certified
refrigerant reclaimers.
“Contractors who choose not to recover refrigerant
usually do not understand how simple the reclaim
sector makes it for them. Instead they look at
recovery as a hassle and not worth the effort,
regardless of the money wasted or environmental
impact. Some residential contractors who choose not
to recover are simply not educated on recovery
techniques and options available for the used
product. Others just don’t care. Nevertheless, it is
a stumbling block reclaimers have to deal with on a
regular basis.”
Said James Sweetman of Consolidated Refrigerant
Solutions, “Credits for R-22 are essential; equally,
if reclaimers can simplify the process and eliminate
the fees … that is another very important aspect to
the contractor. The credits, buybacks, and banking
are just extras.
“Contractors are not in the business of selling
dirty gas. If they can better focus on their
business with less headaches … that’s what matters
and that’s where we deliver.”
THE WHOLESALERS SIDE
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In many
instances, contractors are preferring to
keep refrigerant at their shops and continue
to reuse it rather than submit it for
reclamation. |
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From the wholesalers’ perspective, reclaim is a
market with growth potential. Frank Meier of Meier
Supply said, “Activity in the used
refrigerant/reclaim sector has been at 8 to 10
percent growth in the last couple of years. However,
we expect this to increase in double digits this
year.”
He said it would come in two directions. One is
increased promotion. To his fellow wholesalers, he
said, “Have a plan in place and be relentless in
communicating this with customers.” The second
factor, he said, relates to cost. “As the cost of
new R-22 continues to rise, used R-22 will become
more valuable. This will promote more R-22 going
through reclaim.”
Those comments are echoed by Talbot Gee of the
Heating, Air-Conditioning, Refrigerating
Distributors International that has launched a
Website (www.yourpartnersinprofit.org) providing a
directory of refrigerant recovery locations.
“The amount of refrigerant being recovered by
wholesalers is not increasing considerably, but
HARDI’s wholesale members’ capacity for collecting
recovered refrigerant is predominant in virtually
every market and steadily growing,” Gee said.
“The combination of the cost of technicians’ time
and the lack of enforcement creates a significant
barrier to increased reclamation. The next issue is
the lack of public awareness or demand for proper
reclamation. End customers are not demanding proper
refrigerant recovery or even know that it is the law
which disadvantages good contractors who need to
charge recovery fees to cover their costs to do the
job the right way.”
At the same time, he said, “Wholesalers make the
process about as easy as possible for contractors
already by facilitating cylinder swaps and managing
cylinder cleaning and compliance. Many distributors
also provide much of the record keeping for their
customers in case they are ever audited.”
COST AND CONVENIENCE
Despite all the talk from reclaimers and
wholesalers, when you talk to contractors, the
current stumbling blocks still are cost and
convenience.
Said John Richardson of Richardson’s Heating and Air
Conditioning of Chapin, S.C., “We are a medium size
residential and a small commercial HVAC contractor.
Last year I got very serious about recovering and
recycling R-22. I got little or no help from
distributors in terms of establishing a cost
effective way of dealing with R-22, so I did my
homework. Most local distributors have no program
available to contractors. One that does charges $80
for you to drop off a 50-pound tank of recovered
refrigerant and they will swap you another certified
50-pound tank. As far as the other distributors we
buy from, that was it. In the past, some had
programs but none of them worked effectively so they
went away.”
Said Jim Bartelt, who contacted
The NEWS by e-mail, “I’m a small
contractor. Currently, I’m just holding recovered
R-22 because I’ve not yet found a wholesaler in my
area that has a reclaim program that would pay me
anything for the refrigerant or has a banking
program. I’ve called one reclaimer, and they have a
500-pound minimum to pick up. So, I’ll just continue
to hold until I can find a better alternative.”
Contractor Larry Bourdeau of Comfort by Premier in
Apex, N.C., said cost is the big issue. “Why are
prices so high? I am on my own. Refrigerant costs me
$220 a jug. To return R-22 to my supply house is
another $1.50 per pound.”
One contractor who is using the reclaim option with
some success is Steve Russell of Shoemaker Air
Conditioning in Tulsa, Okla. “We are currently using
a reclaim company. They provide a drum with capacity
of 750 pounds of refrigerant. When it gets full, we
send it back to them; they pay for the refrigerant,
and send us another tank.”
But that doesn’t answer all questions, said Russell.
“Another issue we all deal with is what to do with
the small amounts of unreturnable refrigerants that
we have. For example, I have several canisters of
mixed or non-R-22 refrigerants here. I cannot return
them to any of the local supply houses because the
quantity is too small or they are mixed.”
Chuck Munson of Independent Air of Eustis, Fla.,
said, “As a good contractor, I reclaim all of the
old R-22. I have done so since I opened the doors in
1994.
“How is it working out? It isn’t. I started out
turning in 50-pound jugs at no cost to me. Quite a
few years ago the cost went to over $250, not
counting a deposit charge for a 125-pound cylinder.
Only one wholesaler in the area will even pick up my
full cylinders now. About three plus months back I
e-mailed one company about a pick up. Gave them my
location and contact info. Still haven’t heard back
from them.
“How is the system working? It is broken. Heaven
help us in the next several years as we need R-22.”
All the varying comments and perspectives indicate
that reclaimers, wholesalers, and contractors are
not yet all on the same page regarding the problem
and possible solutions. So there is still much to do
to deal with possible refrigerant supply issues in
2010 and beyond.
Sidebar: To Vent or
Not
The industry’s dirty little secret is still being
talked about in whispered tones. Venting is still
going on and until a better handle is gotten on that
issue, refrigerant shortfalls could still be a
problem, regardless of recovery, recycling, and
reclaim efforts.
“Assuming the government would provide adequate
funding for enforcement activities, conducting
random compliance audits of refrigerant users and
equipment owners — similar to the audits the EPA
conducted during the early ’90s to ensure recovery
system compliance — would surely stimulate the
reclaim market,” said ICOR/Refri-Claim’s March
Richburg.
Steve Russell of Shoemaker Air Conditioning in
Tulsa, Okla. added, “What amazed me is that my
technicians have all said they never returned used
refrigerants before they started work for our
company. It makes me wonder just how much or how
little refrigerant is actually being reclaimed.
Until we determine a method of economically handling
this, many companies will continue to have leakers (venters).”
But don’t expect whistle blowers within the industry
to help the EPA in such enforcement, according to
contractor Larry Bourdeau of Comfort by Premier,
Apex, N.C. It’s too dangerous for them, he said.
“The government has spent all kinds of time and
money to recognize a problem and a solution. They
are so busy patting themselves on the back for the
wonderful job they have done, that they do not see
that nothing has changed. The problem and cause is
still there. And it would be so easy to see who is
not following the rules, if they would just look.
(But) waiting for a whistle blower? We all know what
happens to them. Financial and career ruin as they
become the bad guy.”
Publication date: 05/11/2009
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