Source Financial, Inc. Changes Name to Alltemp, Inc. and Completes Merger with CSES Group, Inc

Accesswire - April 27, 2017

Alltemp's Proprietary Refrigerant Technology is Positioned as the World's Leading Environmentally Sustainable and Efficient Universal Solution

SANTA MONICA, CA / ACCESSWIRE / April 27, 2017 / Alltemp, Inc. (LTMP) (the "Company"), today announced the closing of its merger with CSES Group, Inc. and becomes the leading developer of proprietary environmentally friendly refrigerant technologies.

Pursuant to the Definitive Merger Agreement on January 24, 2017, the Company agreed to issue to the shareholders of CSES Group, Inc. 127,045,969 shares of the Company's Common Stock and issue to the holders of (a) warrants to purchase CSES Common Stock, warrants to purchase an aggregate of 18,409,680 shares of the Company's Common Stock, (b) options to purchase CSES Common Stock, options to purchase an aggregate of 31,961, 200 shares of the Company's Common Stock, and (c) a convertible note of CSES, a promissory note of the Company in the principal amount of $100,000 convertible into approximately 535,681 shares of the Company's Common Stock.

Upon the closing of the Merger, pursuant to the Merger Agreement, Edward C. DeFeudis has resigned as a director and officer of the Company, Robert Davis was appointed Chairman of the Board of Directors, William Lopshire was appointed to the Board of Directors and Chief Executive Officer and Kjell Nesen was appointed to the Board of Directors and Chief Operating Officer.

The Company has successfully completed two years of early adopter testing of its alltemp® refrigerant at several Fortune 100 companies' facilities for its Montreal and Kyoto Protocol compliant refrigerant. Additionally, the test results revealed that alltemp® yielded significant average savings in energy consumption while maintaining capacity. As the world rapidly phases out HCFCs and R-22 refrigerant, the demand for compliant refrigerants like alltemp® are dramatically accelerating in this $20 Billion global annual market.

Alltemp has raised more than $4.5 million dollars to: 1) increase manufacturing capacity of alltemp® refrigerant to 5 million pounds per month at its 12,000 sqft manufacturing facility in Oregon; 2) expand its product line; and 3) hire a worldwide sales force to market its line of products.

"As the leaders in the green refrigerant movement, we believe leveraging the US public markets will allow us to more effectively promote the company's revolutionary products and increase our probability of success. Additionally, based on the great success demonstrated in the early adopter programs, the market opportunity is significant, in terms of economic scale and environmental scope. .

We look forward to promoting the test results of alltemp®, the preeminent green universal refrigerant. To further this effort, we plan to deploy a top class marketing program to realize rapid market penetration and long-term growth," said William Lopshire, Alltemp Inc, CEO.

For alltemp® sales inquiries, please contact Hans Vollers, of Alltemp Inc., at (855) 687-4867.

About Alltemp, Inc. 

Alltemp, Inc. developed a proprietary refrigerant technology, after years of research and development, called alltemp®, a proven replacement for many worldwide refrigerants that have detrimentally affected the global environment. alltemp®,'s refrigerants are environmentally friendly, sustainable, and cost-efficient energy solutions for the residential and commercial marketplace. alltemp® refrigerants have broad applications, ranging from Heating Ventilation and Air Conditioning ("HVAC"), to refrigeration and foam insulation, to industrial solvents. alltemp® is the ideal solution for replacement of R-407c, R-134a, R-404a, and HCFC-22, better known as R-22 and the world's most commonly used refrigerant, but which is rapidly being phased out in all developed countries due to environmental concerns over its strong effect on the depletion of the Earth's ozone layer. For further information, please go to www.alltempsolutions.net.

Forward-Looking Statements 

This press release contains "forward-looking statements" within the meaning of The Private Securities Litigation Reform Act of 1995 (the "Act"), as well as Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. In particular, when used in the proceeding discussion, the words "plan," "confident that," "believe," "expect," or "intend to," and similar conditional expressions are intended to identify forward-looking statements within the meaning of the Act and are subject to the safe harbor created by the Act. Such statements about the Company's future expectations, including future revenues and earnings, and all other forward-looking statements are subject to certain risks and uncertainties that are subject to change at any time, and the Company's actual results could differ materially from those expressed in any of the forward-looking statements. Such risks and uncertainties include, but are not limited to, market conditions, the availability of components for and delays in the start of production, general acceptance of the Company's products and technologies, competitive factors, the ability to successfully complete additional financing, and other risks.

Source Financial Enters Into Definitive Agreement and Plan of Merger

SANTA MONICA, CA / ACCESSWIRE / January 31, 2017 / Source Financial, Inc. (OTCQX: SRCF) (the “Company) and CSES Group, Inc. (“CSES”) executed an Agreement and Plan of Merger whereby CSES will become a wholly owned subsidiary of the Company upon the completion of the merger.

CSES successfully completed two years of early adopter testing of its alltemp® refrigerant at several Fortune 100 companies’ facilities for its Montreal and Kyoto Protocol compliant refrigerant (see: https://www.alltempsolutions.net/results/).  Additionally, the test results revealed that alltemp® yielded a significant average savings in energy consumption while maintaining capacity. As the world rapidly phases out HCFCs and R-22 refrigerant, the demand for compliant refrigerants like alltemp® are dramatically accelerating in this $20 Billion annual market. 

Since the signing of the Binding MOU in September of last year, and coming off the successful early adopter testing, CSES raised more than $4.5 million dollars to: 1) increase manufacturing capacity of alltemp® to $100 million per month at its 6,000 sqft state-of-the-art plant in Oregon, 2) expand its product line, and 3) hire a worldwide sales force to market its line of products.

“The transition from the private to public markets will help CSES gain significant exposure, propel the company into a leadership position in the environmental services industry, and provide broader access to capital and global partnerships as needed for expansion plans. Our plan is to rapidly accelerate the Company's growth to bring long-term value to shareholders,” said Bill Lopshire, CSES CEO.

For further information about the Agreement and Plan of Merger, please read the Company’s current report on Form 8K filed January 25, 2017.

For alltemp® sales inquiries please contact Hans Vollers of CSES Group, Inc. at (855) 687-4867.

About CSES Group, Inc.

CSES Group has developed a proprietary refrigerant technology after years of research and development called alltemp®. alltemp® is a proven replacement for many worldwide refrigerants that have detrimentally affected the global environment. CSES Group’s alltemp® refrigerants are environmentally friendly, sustainable and cost-efficient energy solutions for the residential and commercial marketplace. alltemp® refrigerants have broad applications ranging from Heating Ventilation and Air Conditioning (“HVAC”) to refrigeration, and foam insulation to industrial solvents. alltemp® is the ideal solution for replacement of HCFC-22, better known as R-22, which is the world’s most commonly used refrigerant, R-410a, R-134a and R-404a. R-22 is rapidly being phased out in all developed countries due to environmental concerns over its strong effect on the depletion of the Earth’s ozone layer. For further information, please go to www.alltempsolutions.net.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of The Private Securities Litigation Reform Act of 1995 (the "Act"), as well as Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. In particular, when used in the proceeding discussion, the words "plan", "confident that", "believe", "expect", or "intend to" and similar conditional expressions are intended to identify forward-looking statements within the meaning of the Act and are subject to the safe harbor created by the Act. Such statements about the Company's future expectations, including future revenues and earnings, and all other forward-looking statements are subject to certain risks and uncertainties that are subject to change at any time, and the Company's actual results could differ materially from those expressed in any of the forward-looking statements. Such risks and uncertainties include, but are not limited to, market conditions, the availability of components for, and delays in the start of production, general acceptance of the company's products and technologies, competitive factors, the ability to successfully complete additional financing and other risks.

R-22 Phaseout Slashes Supply to 18M Pounds

Refrigerant Phaseout, SNAP changes, and more will affect HVACR industry in 2016

Of the dozens of regulations that have been issued the last few years, the U.S. Environmental Protection Agency’s (EPA’s) rule governing the production and importation of hydrochlorofluorocarbon (HCFC)-22 has had perhaps the most immediate impact on HVACR contractors. Additionally, the EPA’s Significant New Alternatives Policy (SNAP) Program, Section 608 of the Clean Air Act, and President Barack Obama’s Climate Action Plan have all shaped the ever-changing refrigerant landscape. And, with no signs of this regulatory action slowing, 2016 is set to be another year full of significant changes in the refrigerant market.

R-22 PHASEOUT CONTINUES
In October 2014, the EPA announced its final phasedown schedule regarding the production and importation of HCFC-22. The order called for an immediate drop from 51 million pounds allowed in 2014 to 22 million pounds in 2015, 18 million pounds in 2016, 13 million pounds in 2017, 9 million pounds in 2018, and 4 million pounds in 2019. No new or imported R-22 of the dozens of regulations that have been issued the last few years, the U.S. Environmental Protection Agency’s (EPA’s) rule governing the production and importation of hydrochlorofluorocarbon (HCFC)-22 has had perhaps the most immediate impact on HVACR contractors. Additionally, the EPA’s Significant New Alternatives Policy (SNAP) Program, Section 608 of the Clean Air Act, and President Barack Obama’s Climate Action Plan have all shaped the ever-changing refrigerant landscape. And, with no signs of this regulatory action slowing, 2016 is set to be another year full of significant changes in the refrigerant market.

 

R-22 PHASEOUT CONTINUES

In October 2014, the EPA announced its final phasedown schedule regarding the production and importation of HCFC-22. The order called for an immediate drop from 51 million pounds allowed in 2014 to 22 million pounds in 2015, 18 million pounds in 2016, 13 million pounds in 2017, 9 million pounds in 2018, and 4 million pounds in 2019. No new or imported R-22 will be allowed in the U.S. on or after Jan. 1, 2020.

Stefanie Kopchick, North America marketing manager for refrigerants, The Chemours Co., said the annual allowances have decreased faster than the market demand for R-22, which has depleted inventory across the supply chain.

“Chemours is not excluded from this reality,” she said. “As a result, in 2016, we’re starting to feel the snugness in supply; our wholesale partners have been cut back significantly as the inventory Chemours built in advance of the final phasedown period continues to be depleted.”

With meteorologists predicting normal to warmer-than-normal temperatures this summer, industry leaders only expect demand for the refrigerant to increase. Further adding to the increasing demand is a drop in reclamation and an increase in interest values affecting financing decisions, said Gordon McKinney, vice president and COO of Icor Intl.

“The amount of R-22 being recovered and reclaimed is not expected to contribute much more than 8 million pounds this year,” he said. “Interest rates are on the rise, and that will make repairing a better option than replaceing for many air conditioning and refrigeration equipment owners. With service demands for R-22 in the U.S. still estimated to be in the tens of millions of pounds per year, many R-22 users will need to transition to an ozone-safe alternative, like ICOR’s NU-22B®, to service legacy R-22 systems.”

McKinney mentioned the price of R-22 increased in the fourth quarter of 2015 by an average of 15 percent, is expected to increase through the year, and could reach record levels by the end of 2016. For HVACR contractors and distributors, this could spell trouble.

“When it comes to R-22 allocation, how much each distributor and user has access to will depend on where they are in the food chain,” McKinney explained. “As a distributor or user, the smaller you are, the less important you will be to the allocation holders.”

Richard Winick, director of global sales, Honeywell Fluorine Products, also expects demand for R-22 to increase again this year as supplies continue to decrease.

“Our estimates for R-22 aftermarket consumption by end users are somewhere in the 50-60 million pound range for 2016, so when you compare that level of demand with the 18 million pounds of new R-22 that can be produced or imported in 2016, you can see a supply-demand imbalance happening,” Winick said. “While we expect to see more big R-22 users transition away from HCFCs in 2016, the industry will likely need to draw down its R-22 inventory in 2016 for supply and demand to remain balanced.”

In contrast to McKinney, Winick said the volume of reclaimed R-22 seems to be increasing, though he points out that, “While the reclaimers report to us more activity than a few years ago, they alone can’t make up a potential gap in supply of approximately 30-40 million pounds of R-22.”

NO MORE DRY-CHARGE UNITS

One development that may help alleviate the demand for R-22 moving forward is the end of production of the dry-shipped R-22 unit, said Jon Melchi, vice president of government affairs and business development for Heating, Air-conditioning, and Refrigeration Distributors International (HARDI).

“By the end of February, manufacturers aren’t going to be able to produce dry R-22 condensing units — after that, they’re gone,” he said. “It’s probably not going to impact the South as much, since it doesn’t allow for 13-SEER units anyway, but it shows the industry is going to move away from dry-charge R-22 condensing units in 2016 because of the end of the sell-through, and because of the reduction in production from the manufacturers in the first quarter of 2016. It’ll be interesting to see how manufacturers will handle their products.”

Still, Melchi said he anticipates things will get tighter, and prices will continue to increase as the clock winds down to the complete phaseout of R-22 in 2020. As a result, Melchi said, the supply chain will need to be aware of where their refrigerant is coming from.

“As the reduction of the R-22 supply continues, there becomes an increased likelihood for illegally imported or counterfeit refrigerant,” he said. “Most distributors are on an allocation limit and have adapted accordingly.”

Jay Kestenbaum, senior vice president of sales and purchasing, Airgas Inc., also warned against counterfeit refrigerants. “When products are in short supply, such as in the past with chlorofluorocarbons [CFCs] like R-12, there is an increase of smuggled product and tainted, contaminated, or false substitutes proliferating the industry,” he said. “Purchasers should know whom they are buying from — not only their reputation but also the history of the product — to prevent exposure from these illegal imports or below-spec substitutes.”

EPA SECTION 608 AND SNAP CHANGES

Additional changes to Section 608 and the SNAP program will affect the refrigerant landscape in 2016, said Charlie McCrudden, senior vice president of government relations for ACCA. “We’ve got the rule out on Section 608 and changes to that program, and we’ll probably see more changes to the SNAP list and maybe more delisting of refrigerants and additions of new refrigerants,” he said.

“The EPA is evaluating changes to the SNAP program, and the current administration has made it clear it wants to seriously consider changes to approved refrigerants that are listed under the SNAP and DOE energy-efficiency standards by the end of the year,” said David Calabrese, vice president of government affairs, Daikin U.S. Corp. “These federal agencies are working fervently to get these rulemakings completed this year because they don’t know the direction that a new administration will take, and the Daikin team has been working with our industry association and environmental groups to provide input to these regulatory efforts so that they are favorable for all stakeholders.”

NEW REFRIGERANTS

As R-22 inventory drops off and prices continue to rise, manufacturers are working to bring new refrigerants to market and ensure the supply chain is aware of such products and how to use them.

“Honeywell has been working with contractors and end users since the final rule was released by running hundreds of training sessions around the U.S. and making comprehensive retrofit information available on our website,” Winick said. “We expect the demand for Genetron 422D, Performax LT, and Solstice N40 to grow in 2016 as end users accelerate their move away from HCFCs and also some HFCs as a result of the July 2015 EPA HFC delisting rule. While we will have R-22 available for customers, our focus and investments are now on next-generation products.”

Icor also offers a broad range of educational tools and services to help prepare refrigerant users for the transition away from R-22, McKinney said. “From online training videos and slide programs, customized webinars, and a toll-free Tech-2-Tech™ support hotline, Icor can accommodate the support requirements for companies of any size or level of service expertise.”

Chemours’ Opteon™ portfolio of low-GWP (global warming potential) refrigerants helps meet the growing demand for alternatives, Kopchick said. “Opteon XP40 (R-449A), the Chemours flagship nonflammable [A1] replacement for R-404A, is approved by major equipment manufacturers, and has already seen widespread global adoption in its first year of commercialization. XP40 provides a 67 percent reduction in GWP over R-404A while improving system energy efficiency and offering an excellent direct replacement option for supermarkets still running on R-22 and looking for a more sustainable retrofit solution.”

KEEPING UP WITH THE CHANGES

For distributors and contractors, the most important way to cope with the R-22 phaseout is to stay informed.

“If they haven’t already done so, contractors should begin to view any R-22 they work with as an asset,” Kopchick said. “Capturing R-22 and returning it for reclaim or recovery and re-use is critical to ensuring sufficient reclaim in the market to counterbalance the continued allowance reductions. Contractors should also be sure they are familiar with the retrofit products available for R-22 systems. Chemours frequently works with its wholesale partners to host training, webinars, and other sessions to provide the most up-to-date information to the industry.”

Larger contractors will have greater access to R-22 than smaller companies, and those with fewer assets will need to mitigate more of their R-22 use this year with an ozone-safe alternative, McKinney said. “There are a number of alternatives available today, and they need to start educating themselves on how to use them and how to determine which one best suits their particular service needs,” he said. “No matter where you are in the R-22 food chain, if you service R-22 equipment, at some point in the future, you will need to depend on an alternative refrigerant. You only need to look to the CFC phaseout to know that demand will eventually overcome supply and there will be millions of legacy R-22 systems that will require service for many years to come.”

Well-informed contractors are in a better position to help their customers, too, Winick said. “Honeywell provides apps, literature, videos, and webinars and continually provides new resources for wholesalers and contractors to use. We encourage wholesalers and contractors to take advantage of the educational tools Honeywell makes available and to contact us to schedule training.”

LOOKING FORWARD

From manufacturers to distributors to HVACR contractors, nobody will be unaffected by the R-22 phaseout and the other numerous refrigerant changes and innovations that occur in 2016.

“We’ve already heard from wholesalers that they anticipate having trouble getting ample R-22 supply for the 2016 season and expect its price will reflect the supply-demand balance, or imbalance, in the market,” Kopchick said. “This then translates to contractors, as they may experience spot shortages in supply and higher prices in 2016 and beyond.

“Contractors will likely also see the delta in pricing between R-22 and the retrofit alternatives continue to increase, which will drive more frequent selection and use of retrofit products,” Kopchick continued. “As the phaseout of R-22 progresses, it behooves contractors to strategically partner with their suppliers so that they have someone whom they know and trust to keep them informed of the market conditions and realities throughout the year.”

Winick said HVACR contractors will only see R-22 prices continue to increase leading up to the end of production and importation in 2020. “Unlike in the past, when almost everything was solved using R-22, contractors today should consider R-22 as just one of several tools in their toolboxes,” he said. “We are educating contractors about their refrigerant options and asking them to educate their customers, as well.

Refrigerant distributor National Refrigerants Inc. is doing what it can to ensure its customers have enough R-22 to support their continued servicing needs, including conducting seminars for contractors and equipment owners.

“Contractors will need to rely on their wholesale suppliers to keep them informed of the available supply, since some refrigerant manufacturers may limit the quantity of R-22 available to each wholesaler,” said Maureen Beatty, vice president of operations for National Refrigerants. “Contractors should be aware of the importance of buying R-22 from a reputable supplier so they can be certain they are purchasing legally manufactured R-22 that meets AHRI [Air-Conditioning, Heating, and Refrigeration Institute] Standard 700. They should also find additional sources of refrigerant information so they can obtain a complete and unbiased view of the refrigerant industry. Additional sources should include industry association and government websites and, of course, The NEWS.”

Kestenbaum also stressed the importance of preparedness in ensuring contractors have enough refrigerant on hand. “Contractors should plan together with their loyal suppliers and equipment manufacturers and obtain as much information as possible as to what refrigerants are good replacements for the existing product in current systems,” he suggested. “Contractors and all purchasers should be aware of the possibility that the market will again be impacted by illegal or below-spec product as shortages reduce the availability of ample supplies in our industry.”

Tom Beaulieu, president of Bay Area Services Inc. in Green Bay, Wisconsin, said the company made the switch to 100 percent R-410a right away and has largely escaped the volatility of R-22 prices, which he says have been steadily increasing in Wisconsin.

“The state of the R-22 refrigerant [market] helps us convince customers to replace rather than repair,” he said. “Most residential systems that use R-22 that have issues involving the refrigerant system are at a point where they should be replaced, anyway. It does help our replacement sales business.”

Beaulieu has also received a great deal of guidance from his distributor, Gustave A. Larson Co.“We take advantage of any training that pertains to our business,” he said. “They [Gustave A. Larson Co.] have a very good training department and cover this issue very well.”

Mike Agugliaro, co-owner of Gold Medal Services in East Brunswick, New Jersey, also said his company has mostly avoided having to deal with R-22 supply issues because management chose to switch to R-410a units before the phaseout even began. Gold Medal also ensures its employees are properly trained on the variety of refrigerants available to the customer through in-house training and field training, in addition to utilizing vendors and manufacturers for training.

“We’ve found that it actually boosted our sales in the HVAC department the moment consumers were aware of the changes coming,” Agugliaro said. He hopes the phaseout will continue to “prompt homeowners to replace their units with a new R-410a system, since the newer units are more efficient and will cost less to repair in the future.”

Ultimately, staying ahead of the phaseout will be the best option for the industry in 2016 and beyond.

“In the end, a thoughtful R-22 retrofit strategy is in the best interest of all,” Winick said. “It will provide a rational movement away from R-22 and will get everyone in the HVACR business moving in the same direction.”

Publication date: 2/8/2016

https://www.raprec.com/r-22-phaseout-slashes-supply-18m-pounds/

 

Protection of Stratospheric Ozone: Adjustments to the Allowance System for Controlling HCFC Production, Import and Export, 2015-2019

Phaseout of Ozone-Depleting Substances

In the United States, ozone-depleting substances (ODS) are regulated as class I or class II controlled substances. Class I substances have a higher ozone depletion potential and have been completely phased out in the U.S.; with a few exceptions, this means no one can produce or import class I substances. Class II substances are all hydrochlorofluorocarbons (HCFCs), which are transitional substitutes for many class I substances. New production and import of most HCFCs will be phased out by 2020. The most common HCFC in use today is HCFC-22 or R-22, a refrigerant still used in existing air conditioners and refrigeration equipment. 

https://www.epa.gov/ods-phaseout

HP-Graph-AllocationRule.jpg

Under The Clean Air Act, EPA Regulates The Import of Ozone-Depleting Substances (ODS)

Importing Ozone-Depleting Substances

Under Title VI of the Clean Air Act, EPA regulates the import of ozone-depleting substances (ODS) into the United States. Requirements differ for virgin and used ODS, as well as for Class I and Class II ODS.

ODS Importer Recordkeeping and Reporting

Importers of ODS into the United States must comply with recordkeeping and reporting requirements:

 

Importing Virgin Class I ODS

The United States has phased out the production and import of virgin Class I controlled substances, including blends that contain Class I substances. This means that no person may import a virgin Class I ODS into the United States unless it falls under one of the exemptions listed below.

Importing Used Class I ODS

EPA allows the import of used Class I ODS to ease the transition to ODS alternatives. EPA has a petition process to help verify that the ODS were actually used. Petition requirements are available in 40 CFR 82.13(g)(2). EPA must receive the petition 40 working days before the shipment is to leave the foreign port of export.

There is no EPA petition form. The petition may be in any format, but must include the following information about the used Class I ODS:

  1. From what type of equipment was it removed?
  2. Who removed it?
  3. When was it removed?
  4. How much was removed?
  5. What chemical was used to replace the Class I ODS, or was new equipment installed, or was the equipment no longer needed?
  6. If new equipment was installed, what type of equipment is it?

Importing Virgin Class II ODS

Consumption allowances are needed to import virgin Class II ODS. Only those persons that hold unexpended consumption allowances are permitted to import the following HCFCs:

  • HCFC-142b
  • HCFC-123
  • HCFC-124
  • HCFC-22

HCFC-141b, HCFC-225ca, and HCFC-225cb have all been phased out. One consumption allowance (i.e., "right to import") permits the import of one kilogram of substance. For example, to import 10 kilograms of HCFC-22, you must hold 10 unexpended HCFC-22 consumption allowances. Consumption allowances are required and expended to import ODS blends that contain HCFC-22, HCFC-142b, or HCFC-124 (such as R-502).

HCFCs can only be imported for allowed uses.

Trading Consumption Allowances

Consumption allowances may be traded. If you do not hold consumption allowances, and you wish to import permitted HCFCs, you must acquire them from a person who does, following EPA regulations at 40 CFR 82.23. Transfers require advance notification to EPA.

EPA provides a listing of persons that hold consumption allowances for Class II substances as of October 2014 to facilitate these transfers, but cannot provide advice or assistance in the brokering of transfers.

Fines for Illegal Importation

Each kilogram of virgin HCFC that is imported or attempted to be imported without an unexpended consumption allowance may be considered a separate violation of the Clean Air Act and subject to a fine of a maximum of $37,500 per kilogram. In addition, criminal penalties may also be applied. If you have questions about whether a company can import HCFCs, please contact us.

Exemptions

Certain imports of virgin HCFCs are exempt from the requirement to hold consumption allowances. These include imports for transformation and heels or transhipments.   

Importing Used Class II ODS

Why EPA Allows the Import of Used Class II ODS

EPA allows the import of used Class II ODS to ease the transition to ODS alternatives. With the continued use of used ODS, the need for new production to meet ongoing need for ODS during the transition period is avoided. To ensure that imported ODS were used and not newly manufactured, EPA has a petition process to help verify that the ODS were actually used.

Petition Requirements for Importing Used Class II ODS

Petition requirements and Agency procedures for reviewing and approving petitions to import used Class II ODS are available in 40 CFR 82.24(c)(3) and (4). Petitions must be received by EPA 40 working days before the shipment is to leave the foreign port of export.

There is no EPA petition form. The petition may be in any format, but must include this information about the used Class II ODS:

  1. From what type of equipment was it removed?
  2. Who removed it?
  3. When was it removed?
  4. How much was removed?
  5. What chemical was used to replace the Class II ODS, or was new equipment installed, or was the equipment no longer needed?
  6. If new equipment was installed, what type of equipment is it?

Source: https://www.epa.gov/ods-phaseout/importing-ozone-depleting-substances

The Montreal Protocol on Substances that Deplete the Ozone Layer

From Wikipedia, the free encyclopedia

The Montreal Protocol on Substances that Deplete the Ozone Layer (a protocol to the Vienna Convention for the Protection of the Ozone Layer) is an international treaty designed to protect the ozone layer by phasing out the production of numerous substances that are responsible for ozone depletion. It was agreed on 26 August 1987, and entered into force on 26 August 1989, followed by a first meeting in Helsinki, May 1989. Since then, it has undergone eight revisions, in 1990 (London), 1991 (Nairobi), 1992 (Copenhagen), 1993 (Bangkok), 1995 (Vienna), 1997 (Montreal), 1998 (Australia), 1999 (Beijing) and 2016 (Kigali, adopted, but not in force).[1][2] As a result of the international agreement, the ozone hole in Antarctica is slowly recovering.[3] Climate projections indicate that the ozone layer will return to 1980 levels between 2050 and 2070.[4][5] Due to its widespread adoption and implementation it has been hailed as an example of exceptional international co-operation, with Kofi Annan quoted as saying that "perhaps the single most successful international agreement to date has been the Montreal Protocol".[6] In comparison, effective burden sharing and solution proposals mitigating regional conflicts of interest have been among the success factors for the ozone depletion challenge, where global regulation based on the Kyoto Protocol has failed to do so.[7] In this case of the ozone depletion challenge, there was global regulation already being installed before a scientific consensus was established. Also, overall public opinion was convinced of possible imminent risks.[8][9]

The two ozone treaties have been ratified by 197 parties, which includes 196 states and the European Union,[10] making them the first universally ratified treaties in United Nations history.[11]

These truly universal treaties have also been remarkable in the expedience of the policy making process at the global scale, where bare 14 years lapsed between a basic scientific research discovery (1973) and the international agreement signed (1985 & 1987).

 

The Kyoto Protocol

From Wikipedia, the free encyclopedia

The Kyoto Protocol is an international treaty which extends the 1992 United Nations Framework Convention on Climate Change (UNFCCC) that commits State Parties to reduce greenhouse gas emissions, based on the premise that (a) global warming exists and (b) human-made CO2 emissions have caused it. The Kyoto Protocol was adopted in KyotoJapan, on 11 December 1997 and entered into force on 16 February 2005. There are currently 192 parties (Canada withdrew effective December 2012)[4] to the Protocol.

The Kyoto Protocol implemented the objective of the UNFCCC to fight global warming by reducing greenhouse gas concentrations in the atmosphere to "a level that would prevent dangerous anthropogenic interference with the climate system". The Protocol is based on the principle of common but differentiated responsibilities: it puts the obligation to reduce current emissions on developed countries on the basis that they are historically responsible for the current levels of greenhouse gases in the atmosphere.

The Protocol’s first commitment period started in 2008 and ended in 2012. A second commitment period was agreed on in 2012, known as the Doha Amendment to the protocol, in which 37 countries have binding targets: Australia, the European Union (and its 28 member states), BelarusIcelandKazakhstanLiechtensteinNorwaySwitzerland, and Ukraine. Belarus, Kazakhstan and Ukraine have stated that they may withdraw from the Protocol or not put into legal force the Amendment with second round targets.[8]Japan, New Zealand and Russia have participated in Kyoto's first-round but have not taken on new targets in the second commitment period. Other developed countries without second-round targets are Canada (which withdrew from the Kyoto Protocol in 2012) and the United States (which has not ratified the Protocol). As of July 2016, 66[9] states have accepted the Doha Amendment, while entry into force requires the acceptances of 144 states. Of the 37 countries with binding commitments, 7 have ratified.

Negotiations were held in the framework of the yearly UNFCCC Climate Change Conferences on measures to be taken after the second commitment period ends in 2020. This resulted in the 2015 adoption of the Paris Agreement, which is a separate instrument under the UNFCCC rather than an amendment of the Kyoto protocol