Green Chill Advanced Refrigeration Partnership EPA the

Green. Chill Advanced Refrigeration Partnership EPA & the Supermarket Industry: Partners in Environmental Protection

Agenda EPA and the supermarket industry Upcoming regulatory initiatives Upcoming voluntary initiatives Long-term perspectives Consumers and the environment

Upcoming Regulatory Initiatives Montreal Protocol Treaty to reduce production of ozone depleting substances such as CFCs & HCFCs HCFC Phaseout Milestone 2010 Goals are to restore ozone layer, prevent harmful effects of ultraviolet radiation overexposure Outstanding benefits 6. 3 environmental and health million U. S. skin cancer deaths prevented by 2165

Upcoming Regulatory Initiatives HCFC Phaseout Schedule

Upcoming Regulatory Initiatives Milestones for HCFC Phaseout January 1, 2010 Ban on production and import of HCFC-22 except for on-going servicing needs in equipment manufactured before January 1, 2010. January 1, 2015 Ban on sale and use of all HCFCs except (1) for January 1, 2020 Ban on remaining production and import of HCFC 22. January 1, 2030 Ban on remaining production and import of all other HCFCs. use in chemical reactions where the HCFCs are completely used up in the process, (2) reclaimed and recycled HCFCs, or (3) for on-going servicing needs in refrigeration equipment manufactured before January 1, 2010.

Upcoming Regulatory Initiatives HCFC-22 Supply & Demand 100, 000 Anticipated R-22 Supply from Recovered R-22 80, 000 Virgin R-22 Needed to Satisfy Service Demand 70, 000 HCFC-22 (MT) 90, 000 Total R-22 Service Demand 60, 000 90% of U. S. HCFC Consumption Cap 50, 000 40, 000 30, 000 20, 000 10, 000 0 2015 2020 Source: EPA's Vintaging Model (VM IO file_2007_11 -12 -07)

Upcoming Regulatory Initiatives HCFC-22 Supply & Demand

Upcoming Regulatory Initiatives Servicing Existing Equipment In 2015, HCFC-22 needs will exceed the 2015 cap by more than 10, 000 metric tons Recovery and reuse needed to meet demand What can you do? Improve service practices (recover, recycle, reclaim) Fix leaks Replace equipment where economical

Upcoming Regulatory Initiatives During the Transition Period Businesses have three options: Convert existing system to alternative refrigerant Buy a new system that uses an alternative refrigerant Continue to operate existing system Establish a plan to replace/repair leaking equipment Recover and reuse refrigerant from equipment that is retired Begin to transition to alternative refrigerants Many businesses have started to switch Consider amount of time needed to convert

Upcoming Regulatory Initiatives Leak Repair Rule Moving through the process End 2008 / beginning 2009 Leak rates

Voluntary Initiatives EPA Partnership Programs More than 80 environmental partnership programs Voluntary participation No membership fee Non-regulatory Gives you a friendly face at the EPA

Voluntary Initiatives Partners for the Environment www. epa. gov/partners Achievement Through Partnership: A Progress Report Through 2000 Boosting Line Guide Your Bottom to EPA Climate Partnership Programs

Why are Voluntary Partnerships Important? Focus is on cooperation and mutual advantage of business and environment If it works, no need for regulation More flexibility Lower cost for business & lower cost for government Good way to address problems that are difficult to regulate and/or difficult to enforce

Supermarket Refrigeration HCFC-22 is primary refrigerant Harms the ozone layer (ODP of. 055) Contributes to climate change (GWP of 1500) Phase-out in 2010 of HCFC-22 production for new equipment; Limited production allowed until 2020 to service existing refrigeration equipment DX systems are the dominant technology Lg. refrigerant charges (ave. spmkt. = 4000 lbs. ) High leak rates (ave. 20 -25% = about 1000 lbs. of refrigerant emitted PER SUPERMARKET per year)

Green. Chill Advanced Refrigeration Partnership An EPA cooperative alliance with the supermarket industry Promotes the adoption of advanced refrigeration technologies, strategies, and practices Reduce charges & emissions of ozonedepleting substances (potent greenhouse gases) Help protect the ozone layer and protect against global warming

Green. Chill Supermarket Partners Supermarket # of stores Sales ($bil) Area Food Lion 1300 28. 15 DE, GA, MD, PA, TN, WV, FL, KY, NC, SC, VA Giant Eagle 222 7. 1 PA, OH, WV, MD Hannaford 165 Not available ME, NY, MA, NH, VT Harris Teeter 174 3. 64 NC, SC, VA, GA, TN, FL, MD, DE, DC Price Chopper 116 Not available NY, CT, MA, NH, PA, VT Publix 938 23 FL, GA, SC, AL, TN 44 CA, DC, DE, IA, ID, IL, IN, KY, MA, MD, ME, MN, MO, MT, ND, NC, NH, NJ, NV, OH, OR, PA, UT, VA, VT, WA, WI, WV, WY AL, AR, AZ, CA, CO, CT, DC, FL, GA, IL, KS, KY, LA, MD, MI, MN, NC, NE, NJ, NM, NY, NV, OH, OK, PA, RI, SC, TN, TX, UT, VA, WI Supervalu 2552 Whole Foods 200 6. 6 Weis Markets 157 2. 32 PA, MD, NJ, NY and WV TOTALS 5824 ~115+ In 46 of 50 states + DC!

Green. Chill Priorities Shift from DX systems to advanced refrigeration systems Shift from HCFC-22 to substitute refrigerants Promote reduced refrigerant charges Promote equipment leak tightness At production At installation Preventative maintenance

Why advanced refrigeration technology? Montreal Protocol’s goal is ozone layer recovery – reduces ozone-depleting substances (CFCs & HCFCs) Substitute refrigerants (HFCs) are ozonesafe, but they are greenhouse gases Leaking 1000 pounds of greenhouse gas instead of 1000 pounds of ozone-depleting gas is substituting one environmental disaster for another

Benefits of Joining Green. Chill Benchmarking to evaluate progress Recognition for actions beyond regulatory requirements Build brand equity Tools to attain corporate environmental stewardship and sustainability goals Prepare for HCFC phaseout and other deadlines Access to latest information on state-of-the-art refrigeration technologies, alternative refrigerants, and best practices Networking & information sharing among partners

Green. Chill Projects 2008 Green. Chill Supermarket Certification Program - gold & silver level Best Practice Guidelines Retrofits Advanced Refrigeration Technology Installation Leak Tightness Reporting/partner goals/benchmarking Supermarket emissions data Equipment manufacturer leak tightness HCFC-22 reclamation Service Tech/Contractor Certification Research Energy efficiency theoretical study Pilot projects

Green. Chill’s Retrofit Best Practice Guidelines Retrofits = most widespread strategy to prepare for HCFC-22 phaseout in existing stores Opportunity to tighten up the system!

Best Practices Guidelines Advanced Refrigeration Technology Describes and explains alternatives to conventional DX systems Factors to consider when selecting an advanced refrigeration option Best practices to reduce refrigerant charge Best practices for leak tightness at production and installation Service and maintenance best practices for leak tightness Case studies

Long-Term Environmental Perspective New administration More environmental focus? Expansion of Green. Chill Partnership Reduce refrigerant charges Reduce leaks Greenhouse gas regulation? Implementation of new leak regulation Other? Depends to a certain extent on you

Consumers & the Environment Short-term Price consciousness But…consumers need to feel good about shopping at your stores (moral “permission”) Long-term Need to build brand equity Position yourself for the future - differentiation vs. competitors If your environmental activities aren’t publicized, consumers assume you aren’t doing anything Waste costs money - what’s good for the environment is good for your bottom line

Contact Information - Green. Chill Keilly Witman Stratospheric Protection Division, US EPA Tel: (202) 343 -9742 witman. keilly@epa. gov

Contact Info – Phaseout and Regulatory Phaseout: Cindy Newberg, newberg. cindy@epa. gov, 202 -343 -9729 For Sec. 608: Julius Banks, banks. julius@epa. gov, 202 -343 -9870 Additional Info: http: //www. epa. gov/ozone/title 6/phaseout/class two. html http: //www. epa. gov/ozone/title 6/allowance. html