Comment Log Display

November 26, 2008

Members of the California Air Resources Board: 

The employees of EF Products, L.P., a U.S. manufacturer of
products for consumer Do-It-Yourself maintenance and repair of
automobile air-conditioning systems respectfully submit the
following comments relating to the Revised Draft AB 32 Scoping
Plan.

EF Products is one of the leading members of ARPI (the Automotive
Refrigeration Products Institute) and a driving force in the mobile
refrigeration industry.  Since 1992, we have responsibly supported
reduced use and replacement of ozone depleting refrigerants such as
R-12.  ARPI members designed the unique can and fittings for R-134a
and other SNAP approved, non-CFC refrigerants and are currently
working to support the industry’s coming transition from R-134a and
to a new, low-GWP refrigerant. 

In the revised Scoping Plan, CARB identifies four Discrete Early
Action measures to reduce greenhouse gas emissions of the
refrigerants used in car air conditioners, semiconductor
manufacturing, air quality tracer studies and consumer products. 
Also identified were reduction opportunities associated with
commercial and industrial refrigeration, changes to the refrigerant
used in auto air conditioning systems and ensuring that existing
car air conditioning systems and stationary refrigeration equipment
do not leak.

For the past two years, our company and trade associations have
been working cooperatively with ARB’s Research Division to craft
proactive, effective and affordable solutions to mitigate climate
change impacts associated with our products used by consumers to
service mobile vehicle air conditioning (MVAC) systems.  This work
is very close to yielding a workable AB32 regulation that will
provide real emissions reductions and, at the same time, not
disadvantaging low income Californians.     

We are proud to have set a cooperative example for other industry
groups to follow and look forward to further supporting Alberto
Ayala, Richard Corey and Tao Huai’s Research Division team at our
upcoming January 22, 2009 Early Action Board hearing.
But our work has not been easy and will not have been achieved
without significant cost.  Our alternative measures plan includes:

•	Development and commercialization of an industry-first
self-sealing valve to mitigate accidental and installation
emissions of refrigerant from small containers. 
•	A first of its kind, self-administered small-can
return/recovery/recycling program with economic incentives for
consumers to return used containers for processing.
•	A California-specific consumer education campaign, including
print and website.

We ask you to consider the costs and efforts expended by our
company and industry in being amongst the first AB32 “cooperators”.
 Consider the potential punitive effects the Scoping Plan’s
proposed “upstream fees” could layer on top of the already
significant costs borne by the first industry to voluntarily
participate in a self-regulating exercise.  

In early 2008, EF Products and ARPI had discussed with CARB staff
the possibility of a fee in lieu of the regulation.  We were told
that emissions reductions were the primary objective of AB32
measures. Now, on the eve of adoption of the regulation, the
prospect of a fee is raised, noting that an upstream fee would
ensure that the climate impact of these substances is reflected in
the total cost of the product.  Since the fee will follow the
regulation, the “total cost” of the products will have already
increased substantially.

We disagree with the fee on top of our newly-promulgated
cooperative regulation and have grave concerns that such a fee
penalizes us for our proactive approach.  

Additionally, we must recognize that incremental regulatory costs
and fees are ultimately passed to consumers through higher prices. 
This may render our products uneconomic, constituting a de facto
product ban, creating an adverse impact on minorities and those on
fixed incomes.  This is contrary to the original objectives we and
CARB staff defined in developing alternative regulations for
servicing of MVACs by non-professionals.  

In conclusion, you should know that we continue to support a
balanced, cost-effective plan to reduce greenhouse gas emissions. 
EF Products and ARPI are already playing a meaningful role in
helping the state meet its policy goals for reducing green house
gas emissions in California through participation in the early
action rulemaking on Reduction of Refrigerant Emissions from
Non-Professional Servicing and will continue its work with CARB
staff on the rulemaking.  We continue ready, with the Board, to
implement a regulatory scheme aimed at reducing greenhouse gas
emissions while not devastating our industry.  We want to be part
of the solution, but not if the price is our businesses.  

Thank you in advance for your attention, consideration and
support.  We welcome further discussing this issue with you and
invite you to contact me for further information about this issue.

Sincerely,

Michael J. Klein
President and CEO
EF Products / An IDQ Company
8200 Springwood Drive / Suite 255
Irving, Texas  75063
mklein@efproducts.com
Phone: (972) 444-0422 ext.112
FAX #: (972) 831-8891