ACHRNEWS

Fee Applied to R-11

September 5, 2011
MISSISSAUGA, Ontario — Warren Heeley, president of Refrigerant Management Canada (RMC), announced the implementation of a new disposal fee for CFC-11 refrigerant entering the extended producer responsibility (EPR) program. As of Aug. 1, 2011, RMC — a not-for-profit corporation established by the Heating, Refrigeration and Air Conditioning Institute of Canada (HRAI) and the Canadian refrigeration and air conditioning industry — began charging an $8.00/kilogram disposal fee for CFC-11 refrigerants. The program has provided the industry with the means to comply with stewardship regulations in all provinces and at the federal level since 2001.

The program is funded by an environmental levy paid on sales of new and reclaimed HCFCs and HCFC blends. The phase down of HCFCs over the last six years has drastically reduced the revenue stream for the program, while volumes of surplus refrigerants entering the program continue to increase.

According to Heeley, “The RMC board of directors thoroughly explored every avenue before making the decision to apply a disposal user fee to CFC-11 refrigerant and determined it was necessary to ensure the continued operation of the program. RMC will continue to subsidize approximately 50 percent of the cost of collecting and destroying the CFC-11 refrigerant, but can no longer absorb the entire expense, as it has done for the past 10 years.”

Recently, RMC has been very concerned with provincial regulations phasing out the use of CFC chillers. Because of these regulations, the program is receiving record volumes of CFC-11. In 2009-10 the program collected over 347,000 kilograms and destroyed over 299,000 kilograms of refrigerant. In 2010-11, it collected over 370,000 kilograms and destroyed over 399,000 kilograms. This amounts to an average increase in volume of 9 percent per year over the last two years and the additional volume has placed considerable strain on the program.

According to RMC, contractors should take this disposal fee into account when developing projects involving the recovery of CFC-11 refrigerant. Contractors must also deal directly with RMC to arrange for acceptance of recovered CFC-11 refrigerant into the program.

Publication date: 09/05/2011