Refrigerant and Energy Regulations Update

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Refrigerant and Energy Regulations Update Focus on Refrigeration Applications Dr. Rajan Rajendran Emerson Climate Technologies

HFC Phase-Down Amendment to Montreal Protocol Closer to Reality North America Proposal India Proposal On 11/5/15, the 27 th Meeting of the Parties to the Montreal Protocol in Dubai, UAE, concluded with all countries agreeing to work on a 2016 amendment to phase-down HFCs*. http://yosemite.epa.gov/opa/admpress.nsf/0/c489a7d31ef941ee8525 7EF50049921D

European F-Gas Regulation: Phase-Down HFC and Application Bans Europe is not waiting for the global agreement. Changes have begun. http://ec.europa.eu/clima/policies/f-gas/legislation/index_en.htm

EPA s Final Rule, July 20, 2015 Changed Listing Status of Certain HFCs* Phase-out Refrigerant Supermarket New Supermarket Retrofit Remote Cond. Unit New Remote Cond. Unit Retrofit MT <2,200 BTU/hr. and not contain flooded evap. New Stand-alone MT 2,200 BTU/hr. with or without flooded evap. New LT New LT and MT Retrofit R-404A/507A Jan. 1, 2017 July 20, 2016 Jan. 1, 2018 July 20, 2016 Jan. 1, 2019 Jan. 1, 2020 Jan. 1, 2020 July 20, 2016 R-410A OK - OK - Jan. 1, 2019 Jan. 1, 2020 Jan. 1, 2020 - R-407A/C/F OK OK OK OK Jan. 1, 2019 Jan. 1, 2020 Jan. 1, 2020 OK HFC-134a OK OK OK OK Jan. 1, 2019 Jan. 1, 2020 OK OK Likely Alternatives (Emerson Perspective) R-448A/449A OK OK OK OK Neither SNAP-approved, nor banned Neither SNAP-approved, nor banned OK OK for LT only R-450A/513A OK OK OK OK OK OK OK OK R-290 - - - - OK OK OK - R-744 OK - OK - OK OK OK - R-717 OK (in primary loop of secondary CO 2 sys.) - OK (in primary loop of secondary CO 2 sys.) - - - - - *Refer to Tables 4, 5 and 6 of Final Rule for complete details Abbreviated see EPA final rule for complete listing; Reference: Federal Register / Vol. 80, No. 138 / Monday, July 20, 2015 / Rules and Regulations, 42870-42959

EPA and DOE: Compliance Will Not Be Easy EPA Refrig. DOE Energy 2016 2017 2018 2019 2020 Supermarket (Rack) 1/1/17 <2,500 GWP Walk-In (Remote CDU) Cooler Freezer 1/1/18 <2,500 GWP Awaiting Final Court Sign-Off 1/1/20 20 40% 20 30% Reach-In (Stand-Alone) 30 50% Cooler Freezer <2,200 BTU >2,200 BTU 3/27/17 1/1/19 <600 GWP <600 GWP <1,500 GWP Ice Machine 1/1/18 5 15% 1/1/20

SNAP: Additional Change of Status for Refrigerants Is Coming

EPA Proposal to Amend Clean Air Act Section 608 Ref. Mgmnt. Regs (11/9/15) Lowers repair leak rate threshold for 50+ lbs. refrigerant charge systems From 35% to 20% for industrial process refrigeration (IPR) and comm. ref. equipment From 15% to 10% for comfort cooling equipment Requires regular leak inspections or continuous monitoring devices for ref/ac systems: Annual inspections for systems normally containing 50+ lbs. of refrigerant Quarterly inspections for commercial refrigeration and IPR systems normally containing 500+ lbs. of refrigerant Prohibits operation of systems with 50+ lbs. of refrigerant that have leaked 75% or more of full charge for two consecutive years Requires techs to keep a record of refrigerant recovered during system disposal from systems with a charge size from 5 50 pounds Extends the requirements of the refrigerant management program to cover substitute refrigerants, such as HFCs http://www.epa.gov/section608/proposal-amend-section-608- refrigerant-management-regulations

Other Refrigerant-Related Activities Are Underway Canada proposed notice of intent to control the manufacture, import and use of certain HFCs in consumer aerosols, foam blowing, commercial refrigeration and MVAC California has proposed HFC use regulations as well Safety standards and building codes are under revision U.S.: UL 1995, ASHRAE 15 International: ISO 5149, IEC 60335, EN378 AHRI A2L Flammability Research Study in Progress AHRI s Second Alternative Refrigerants Evaluation Program has concluded with focus on high ambient operation for AC

2015 Was Warmest Year Since 1880, per USA Today Article, 1/20/16 COP21 Meeting in Paris, 12/12/2015 Nations agreed to limit global temperature increase to 2 C Countries to update pollution reduction pledges by 2020 This means reducing emissions by 40 70% by 2050 compared to 2010! Can we continue to invent, innovate and develop new products while maintaining existing systems with a business as usual approach?

The Helix Innovation Center at the University of Dayton, Ohio

The Helix: A Different Way of Thinking and a New Way to Collaborate

Commercial Kitchen at The Helix 1,500 sq. ft., fully functional, high-density kitchen Designed for modern American cuisine Capacity to serve 150 meals Independent temperature and humidity control Remote condensing equipment can be located in environment chamber Environment chamber temperature control from -25 F to 125 F; humidity control from 20 90%

Supermarket/C-Store at The Helix 2,500 sq. ft. supermarket and C-store module Independent humidity and temperature control Remote condensing equipment can be located in environment chamber Environment chamber temperature control from -25 F to 125 F; humidity control from 20 90% Currently configured for CO 2 transcritical refrigeration system Refrigeration rack can be used for HVAC, hot water, snow melt features

Thank You! More to Come, So Watch This Space! DISCLAIMER This presentation is intended to highlight changing developments in the law and industry topics. The law is frequently evolving and information and publications in this presentation may not reflect the latest changes in the law or legal interpretations. The statements and information provided in this presentation should not be construed as legal advice or legal opinion regarding any specific facts or circumstances, but is intended for general informational purposes only. You should consult an attorney about your situation and specific facts and you should not act on any of the information in this presentation as the information may not be applicable to your situation. Although all statements and information contained herein are believed to be accurate and reliable, they are presented without warranty of any kind. Information provided herein does not relieve the user from the responsibility of carrying out its own tests and experiments. Statements or suggestions concerning the use of materials and processes are made without representation or warranty that any such use is free of patent infringement and are not recommendations to infringe on any patents. 2016 Emerson Climate Technologies, Inc. All rights reserved. This presentation may not be copied or redistributed without the express written consent of Emerson Climate Technologies, Inc.