Application for approval to import HFO- 1234yf for release

Transcription

1 EPA STAFF REPORT Application for approval to import HFO- 1234yf for release APP

2 2 Overview Substance Application code Application type Applicant Purpose of the application HFO-1234yf APP To import or manufacture for release any hazardous substance under Section 28 of the Hazardous Substances and New Organisms Act 1996 ( the Act ) Honeywell International Inc. To import HFO-1234yf, a gas for use in refrigeration and air conditioning Date application received 5 July 2016 Submission period 18 July August 2016 Submissions Information requests and time waivers Eleven submissions were received The timeframe for submissions was waived under section 59 of the Act to allow a submission after submissions had closed. Further information was requested under section 58 of the Act, and consequently the timeframe for consideration of this application was waived under section 59 of the Act.

3 3 Table of Contents Overview Executive summary Background Process, consultation and notification Hazardous properties Submissions Risk, cost, and benefit assessment The effects of the substance being unavailable Controls Overall evaluation and recommendation Appendix A: Controls recommended for HFO-1234yf Appendix B: Hazard classifications Appendix C: Physico-chemical properties Appendix D: Mammalian toxicology Appendix E: Ecotoxicology Appendix F: Confidential information Appendix G: Standard terms and abbreviations... 82

4 4 1. Executive summary 1.1. Honeywell International Inc. applied to import the substance 2,3,3,3-tetrafluoropropene, also known as HFO-1234yf or R1234yf. This substance is a flammable gas and is intended for use as a heat transfer agent in refrigeration systems and in air conditioning. This includes use in blends with other refrigerants HFO-1234yf has a low global warming potential (GWP) compared to many existing refrigerants, and it is not ozone depleting We recommend that the hazard classification that is applicable to HFO-1234yf based on product data, the composition of the substance, and the properties of its components, is 2.1.1A. Hazard Endpoint Flammable Gas EPA staff classification 2.1.1A 1.4. The application was publicly notified and eleven submissions were received. Submissions 1.5. There was strong support among submitters for the approval of HFO-1234yf Six of the submitters requested to speak at a hearing A significant issue raised by submitters is whether the current training system requirements will ensure that users of HFO-1234yf and other flammable refrigerants are adequately trained in the safe handling of these substances. Submitters expressed concern that without appropriate training, people could attempt to retrofit existing air-conditioning systems that are not designed for flammable gases with HFO-1234yf. Several submitters considered that Approved Filler Certificates should be required, and that these certificates should be specific to flammable gases Several submitters noted the ASHRAE 1 Standard 34 classification used in the refrigerant industry for HFO-1234yf of A2L mildly flammable refrigerant. Submitters noted that more flammable refrigerants were likely to be used in future due to the low GWP refrigerants largely being flammable. They expressed concern that the highly flammable but cheaper substances isobutane, propane and LPG could be used in favour of the less flammable HFO-1234yf if they were considered by users of refrigerants to have the same degree of flammability. One submitter noted that inappropriate use of butane or other hydrocarbons has already been observed in Australia in automotive refrigeration A wide range of other concerns were also expressed, which are discussed in detail in this report WorkSafe provided information to the EPA regarding the submissions. They noted that existing requirements under the Health and Safety at Work Act 2015 and associated regulations impose a duty 1 The American Society of Heating, Refrigerating and Air-Conditioning Engineers. Standard 34 relates to the Designation and Safety Classification of Refrigerants

5 5 on persons conducting a business or undertaking (PCBUs). PCBUs have a duty towards every person carrying out work of any kind, using plant (equipment) of any kind, or dealing with a substance of any kind that is capable of causing a risk in a workplace. They considered that this duty ensures that anyone working with flammable gases is required to be trained in the safe use of refrigerant gases that are flammable. There are also requirements for plant to be designed and manufactured so as not to cause risks to the health and safety of persons WorkSafe noted that the Electricity (Safety) Regulations 2010 do not allow a flammable gas to be refilled into a system that is not designed for the substance We acknowledge the release of two recent Australian/New Zealand Standards regarding refrigerants, AS/NZS 817:2016 and AS/NZS :2016 that incorporate differences in the requirements between A2L refrigerants such as HFO-1234yf and more highly flammable refrigerants. We have taken this and information provided by WorkSafe New Zealand into account in our risk assessment. Risk assessment We did not undertake a quantitative assessment of the risks to human health and the environment because HFO-1234yf does not have human health or ecotoxicological hazard classifications and is not expected to cause significant effects as a result of any toxicological or ecotoxicological hazards However, there are some potential risks associated with the physical properties of the substance, including its flammability, the potential for cryogenic burns due to rapid evaporation of the liquefied gas, and the potential for asphyxiation in enclosed spaces where there is poor ventilation We propose to apply the default controls for a 2.1.1A flammable gas. We propose additional label information requirements to communicate the potential for cryogenic and asphyxiation effects on people handling HFO-1234yf We consider that the potential risks to human health and aquatic and terrestrial environments are negligible with the proposed controls in place We consider that the potential risks to Māori culture or traditional relationships with the environment are negligible We note that the approval of HFO-1234yf could assist New Zealand in complying with its obligations under the Montreal Protocol, New Zealand s international climate change obligations, and related agreements, as a result of its low global warming potential and zero ozone depleting potential We note that HFO-1234yf is expected by the applicant to have improved energy efficiency compared with existing refrigerants it is intended to replace Overall, we consider that there are significant benefits associated with the approval of HFO-1234yf, including financial benefits to the refrigerant industry, a reduction in harm to the environment compared with existing refrigerants, and benefits with respect to New Zealand s international obligations.

6 We consider that the risks of this substance are negligible, and that the significant benefits of the substance outweigh any risks or costs. Accordingly we recommend that the application be approved with controls. 2. Background ,3,3,3-tetrachloropropene, which is referred to as HFO-1234yf throughout this report, is a flammable gas to be used as a heat transfer fluid for refrigeration and air conditioning systems, including those in passenger cars. It will also be a component of gas mixtures for use in refrigeration and air conditioning systems The applicant intends that the substance will be imported into New Zealand in 4.5 kg and 11.3 kg net fill steel cylinders, and the cylinders will be transported within New Zealand by road and sea HFO-1234yf is intended to be disposed of by recycling or controlled destruction. Global warming potential and ozone depletion potential 2.4. Global warming potential (GWP) is a relative measure of how much heat a greenhouse gas causes to be trapped in the atmosphere. It is usually expressed by comparison of the warming potential with the same mass of carbon dioxide, where the GWP of carbon dioxide is exactly 1. GWP values differ based on the timeframe for comparison. GWP values given in this report are 100-year time horizon values. Where possible, these values are taken from the International Panel on Climate Change (IPCC) Fourth Assessment Report: Climate Change , and these values are the values most frequently used in international literature to compare GWP Ozone depletion potential (ODP) is a relative measure of how much degradation a substance can cause to the ozone layer. It is usually expressed by comparison with the ODP of trichlorofluoromethane (R-11), which is fixed at exactly 1. ODP values given in this report, with the exception of the value for HFO-1234yf, are taken from New Zealand s Ozone Layer Protection Regulations , Schedule 5, Annexes A-E HFO-1234yf has a GWP of 4 according to information provided by the applicant. It does not contain bromine or chlorine atoms that are involved in the catalytic destruction of ozone in the stratosphere, and therefore is effectively not ozone depleting (ODP = 0), based on information provided by the applicant. 2 The table of direct GWP values and related information is on pages of the report, available at: 3

7 7 Other refrigerants mentioned in this report 2.7. Several other refrigerants and classes of refrigerants are mentioned in this report. These are described briefly in this section, and names used in the rest of the report are given in bold Liquid carbon dioxide, or R-744, is able to be used as a refrigerant. It is non-toxic, non-ozone depleting, non-flammable, and has a GWP of 1. While it is a highly efficient refrigerant, it needs to be used at high pressures that require specially designed components to prevent equipment failure from rapid gas expansion. HCFCs 2.9. Hydrochlorofluorocarbons, or HCFCs are a family of refrigerants containing hydrogen, chlorine, fluorine and carbon atoms. These substances are ozone depleting and their use has been phased out under the Montreal Protocol. These substances also have significant global warming potential, with GWP values ranging from HFCs Hydrofluorocarbons, or HFCs are a family of refrigerants containing hydrogen, fluorine, and carbon atoms. Substances in this class of refrigerants have insignificant ozone depleting potential, but have high global warming potential. These substances are subject to the Climate Change Response Act Difluoromethane is an HFC known as R-32 or HFC-32. R-32 is not ozone depleting and has a GWP of 675. R-32 is flammable, and is classified as 2.1.1A in New Zealand Chlorodifluoromethane is an HFC known as R-22. R-22 has an ozone-depleting potential of 0.05 and a GWP of Pentafluoroethane is an HFC known as R-125. It is not ozone depleting and has a GWP of ,1,1,2-tetrafluoroethane is an HFC known as R-134a, HFC-134a or norflurane. R-134a is not ozone depleting and has a GWP of It is non-flammable. HFO-1234yf, and blends containing HFO- 1234yf, are intended by the applicant to be a replacement for R-134a and blends containing R-134a ,1,1-trifluoroethane is an HFC known as R-143a. It is not ozone depleting and has a GWP of HFOs Hydrofluoroolefins, or HFOs are a new family of refrigerants. Substances in this class of refrigerants have insignificant ozone depleting potential, and have lower global warming potential than HFCs. This application for HFO-1234yf is the first application under the HSNO Act 1996 for a hydrofluoroolefin substance. These substances are not subject to the Climate Change Response Act HFO-1234ze, or trans-1,3,3,3-tetrafluoroprop-1-ene is another HFO. It has a GWP < 1 and has a (Z) and an (E) isomer, the latter of which is used in some blends with HFO-1234yf.

8 8 Blends A wide variety of blended refrigerants is available. The following blends are referred to in this document R404A is a blend containing R-143a (52%), R-125 (44%), and R-134a (4%). It has a GWP of R448A, also known as Solstice N40 is a blend containing the HFOs HFO-1234yf (20%) and HFO- 1234ze (E-isomer) (7%) as well as R-32 (26%), R-125 (26%), and R-134a (21%). It has a GWP of International obligations The United Nations Framework Convention on Climate Change (UNFCCC) is an international treaty involving commitments to reduce greenhouse gas emissions. New Zealand has taken an emissions reduction commitment for the period under the UNFCCC. New Zealand implemented the Emissions Trading Scheme through the Climate Change Response Act 2002 in recognition of its commitments. HFCs are included in the UNFCCC and in the New Zealand Emissions Trading Scheme The Montreal Protocol on Substances that Deplete the Ozone Layer is an international treaty regarding the phasing out of production of substances that are responsible for ozone depletion. New Zealand has implemented its obligations under the Montreal Protocol through the Ozone Layer Protection Act 1996 (OLPA) and its associated regulations The Montreal Protocol and OLPA cover, among other substances, HCFCs In October 2016 the Kigali Amendment to the Montreal Protocol was adopted. The Kigali Amendment is an agreement to also phase out the use of HFCs. 3. Process, consultation and notification 3.1. The application was formally received on 5 July The Ministry for the Environment, WorkSafe New Zealand ( WorkSafe ), and the Agricultural Compounds and Veterinary Medicines (ACVM) group of the Ministry for Primary Industries were advised of the application and notified of the submission period. No comments were received The application was publicly notified and was open for submissions from 18 July to 29 August The application was publicly notified because it was considered it would be of significant public interest and because the EPA sought information from the refrigerant industry and other affected parties regarding the management of the risks related to the flammability of HFO-1234yf Eleven submissions were received from: Sythree Pty Ltd

9 9 Climate Controls Companies Association and the Institute of Refrigeration Heating and Air Conditioning Engineers ( CCCA and IRHACE joint submission) Refrigerant License Trust Board ( RLTB ) Refrigerant Recovery New Zealand Limited ( RRNZ ) Chemiplas Te Rūnanga o Ngāti Whātua CoolCar Air-Conditioning Centres ( CoolCar ) Tru-Test Ltd Motor Industry Association (Inc) ( MIA ) VASA Automotive Air Conditioning, Electrical and Cooling Technicians of Australasia ( VASA ) Motor Trade Association Inc ( MTA ) 3.6. CCCA/IRHACE did not state support or opposition to the application. The remaining ten submitters supported the application The timeframe for the close of submissions was waived under section 59 of the Act to allow the submission of the Motor Trade Association to be accepted after submissions had closed Six submitters requested to speak at a hearing CCCA/IRHACE, RLTB, RRNZ, CoolCar, Tru-Test Ltd, and VASA During the evaluation of the application, the EPA determined that further information was required in order to complete the evaluation and risk assessment. Further information was requested from WorkSafe and the New Zealand Fire Service under section 58 of the Act and the timeframe for holding a hearing for this application was waived under section 59 of the Act. Information was received from WorkSafe on 20 October In preparing this report, the following documents and information were taken into account: the application form confidential material submitted by the applicant with the application form, including: toxicological and ecotoxicological studies on HFO-1234yf physical properties and physical hazard information for HFO-1234yf the submissions information received from WorkSafe other available information

10 10 4. Hazardous properties 4.1. We determined the hazard profile of HFO-1234yf (Table 1) as described in Appendix B Physico-chemical, mammalian toxicology and ecotoxicology studies were provided for HFO-1234yf. Information from these studies and mixture rules were used to classify the substance. Based on these studies we determined that no human health or ecotoxicological classifications are appropriate for HFO-1234yf HFO-1234yf is classified as a 2.1.1A flammable gas: high hazard because its range of flammability in mixture with air ( %) satisfies one of the two criteria that result in classification as 2.1.1A specifically the criterion that the gas is ignitable in a mixture of 13% or less by volume with air. Table 1 Hazard classifications of HFO-1234yf Hazard Endpoint Applicant classification EPA Staff classification Flammable Gas 2.1.1A 2.1.1A 5. Submissions 5.1. There was strong overall support for the application amongst the submissions, with no submitters opposing the application. The submissions were particularly consistent in their support for the move to refrigerants that are not ozone-depleting and that have much lower global warming potential than currently used refrigerants such as HFCs We have used the information gained from submissions, where relevant, to inform our risk assessment. Key issues raised in submissions are highlighted below. Approved Filler Certificates and training requirements Submissions 5.3. Several submitters noted the need for a robust training system for users of flammable refrigerants. These submitters recommended that there be a requirement for appropriate trade qualifications for handling flammable refrigerants, and a requirement for an Approved Filler Certificate. Chemiplas noted that training was important so that HFO-1234yf is only used in systems designed for flammable refrigerants These submitters considered that there is a need to widen the current minimum requirement to obtain an Approved Filler Certificate (required for transferring a gas into a compressed gas cylinder) so that it is also required for transferring gas into and out of a refrigeration system or unit. This was considered important with flammable refrigerants due to the potential for overcharging these systems to cause a catastrophic failure and result in human injury. Submitters also expressed concern should attempts be made to retrofit existing air-conditioning systems to use HFO-1234yf Some submitters also considered that Approved Filler Certificates that are specific to refrigerant gases should be required, rather than the certificate being obtained from courses that focus on other gases.

11 Submitters also recommended that there be more stringent requirements around moderation and review of Approved Filler Certificates These submitters considered that a restriction should be placed on the sale of refrigerants to ensure that sale of refrigerants is only to persons with an Approved Filler Certificate and appropriate training to use the substances. Similarly, the submitters recommended that the current voluntary wholesaler restriction of refrigerant sale to persons with an Approved Filler Certificate be made into an enforceable requirement among all wholesalers and anyone who imports or sells refrigerants RLTB considered that it should be mandatory for people working with mildly flammable and highly flammable refrigerants under the ASHRAE Standard 34 on the Designation and Safety Classification of Refrigerants to have an Approved Filler Certificate RLTB noted that a unit standard for Flammable Refrigerant Safety Awareness has been developed and considered that this or a similar training course should be made a requirement. EPA response We note the concerns of several submitters regarding training requirements and the potential for untrained users to handle the substance or refill equipment inappropriately WorkSafe noted that an Approved Filler Certificate is required by the regulations when discharging from a refrigeration system into a compressed gas cylinder. WorkSafe did not agree with submitters that an Approved Filler Certificate is required for transferring gas to a refrigeration system. They noted that Regulation 9 of the Health and Safety at Work (General Risk and Workplace Management) Regulations 2016 requires PCBUs to ensure all persons are provided the information training, instruction or supervision they need to protect them from health and safety risks arising from the PCBUs work. They noted that PCBUs have a duty towards every person who carries out work of any kind, uses plant of any kind, or deals with a substance of any kind that is capable of causing a risk in a workplace. WorkSafe considered that this duty ensures that anybody working with flammable refrigerant gases is required to be trained in the safe use of flammable refrigerant gases WorkSafe noted the potential for retrofitting of existing air-conditioning systems to use HFO-1234yf, and the potential for over-filling to cause a catastrophic failure. WorkSafe noted that regulation 20 of the Electricity (Safety) Regulations 2010 does not allow a flammable gas to be filled into a system that is not designed for the substance WorkSafe also noted that regulations of the Health and Safety At Work Act 2015 place duties on upstream PCBUs to design, manufacture and supply plant that is without risks to the health and safety of persons We therefore consider that existing regulation addresses these concerns. Benefits of HFO-1234yf Sythree Pty Ltd considered that there are significant environmental benefits.

12 Sythree Pty Ltd considered that use of HFO-1234yf and blends containing it in refrigeration will provide cost savings for end users as a result of increased energy efficiency We note the benefits described by submitters, including cost savings for end users from increased energy efficiency, and environmental benefits from using a refrigerant with low GWP and no ODP. We have taken these benefits into account in our risk assessment of HFO-1234yf. Changes to the Compressed Gases Regulations 4 Submissions Several submitters recommended changes be made to the Compressed Gases Regulations. This includes the above recommendations related to Approved Filler Certificates CCCA and IRHACE requested a change in the Compressed Gases Regulations to allow greater enforcement by the EPA or WorkSafe of the requirements for access to and safe use of refrigerants CCCA and IRHACE consider that a system should be introduced similar to the EU F Gas classification of types of work requiring specific types of training. RLTB supported CCCA and IRHACE s proposal. EPA response The EPA notes that WorkSafe responded to this issue. In its response it referred to Regulation 9 of the Health and Safety at Work (General Risk and Workplace Management) Regulations 2016 that provided requirements as described above in They noted that they have many means by which they can secure the health and safety of workers and workplaces, including education, engagement, and enforcement. They noted that when using the enforcement lever, their Enforcement Decision- Making Model assists inspectors when they are considering what enforcement, if any, is suitable for the situation. WorkSafe noted that breach of Regulation 9 above is an enforceable offence. Classification of refrigerants under the HSNO Act and AS/NZS Standards Submissions Multiple submitters noted that any regulatory changes for refrigerants will need to align with the joint classification system set out in the revised version of AS/NZS :1998 Refrigerating Systems and its replacements AS/NZS 817:2016 Refrigerants Designation and Safety Classification and AS/NZS :2016 Refrigerating Systems and Heat Pumps Safety and Environmental Requirements Several submitters noted that in the refrigerant industry HFO-1234yf is an A2L mildly flammable refrigerant and that this is a new classification for certain flammable refrigerants under ASHRAE Standard 34. This classification distinguishes HFO-1234yf and other A2L or B2L mildly flammable refrigerants from more highly flammable refrigerants (classes A2, A3, B2 and B3). These submitters considered that because of this classification there will need to be amendments to the charge limit 4 Hazardous Substances (Compressed Gases) Regulations 2004

13 13 information for the storage and transportation of flammable refrigerants. Further discussion is included below under Flammability Several submitters noted that while HFO-1234yf is classified as highly flammable under the New Zealand HSNO system (which is based on the range of flammability in air), HFO-1234yf is a mildly flammable gas according to the classification system of the ASHRAE Standard 34. EPA response HFO-1234yf is classified as a 2.1.1A flammable gas high hazard under the Hazardous Substances (Classification) Regulations This classification triggers a number of default controls to be applied to HFO-1234yf to manage the risk from flammability. These controls apply standard requirements to flammable gases regardless of the degree of flammability of the 2.1.1A gas, and we consider it appropriate to retain these requirements The EPA notes that the classification system adopted by Standards Australia / Standards New Zealand is not within the scope of this application process. Flammability of the substance Submissions RRNZ noted that the applicant stated in their application that most of the better performing blends containing HFO-1234yf are non-flammable. RRNZ expressed concern with this statement as they noted that many blends containing this refrigerant are flammable. RRNZ also noted that the blends containing HFO-1234yf that have GWP under 500 and are most likely to be used as long term refrigerants are all flammable RRNZ also considered the application to be misleading in stating that the risks in using HFO-1234yf do not vary markedly from the HFC and HCFC refrigerants it will replace, because other than R-32, the HFC and HCFC refrigerants in common use in New Zealand are non-flammable. RRNZ noted that in the past, the refrigeration industry has not been trained to handle flammable hazards due to the use of non-flammable refrigerants CoolCar Air-Conditioning Centres and VASA noted that due to the high price of HFO-1234yf and the rising price of R134a, consumers would seek cheaper alternatives. They expressed concern that given HFO-1234yf and cheaper isobutane/propane or LPG would each have a 2.1.1A highly flammable gas classification consumers may be misled into believing that these gases present the same level of flammability risk when HFO-1234yf presents a much lower flammability risk than isobutane, pentane or LPG. They reported that Australia has seen this issue with hydrocarbon gases being inappropriately used as automotive refrigerants In response to the above concern, several submitters recommended that changes in the marketplace from approval of HFO-1234yf should not have the unintended consequence of encouraging greater

14 14 use of highly flammable hydrocarbon gases as refrigerants in systems that are not designed for their use, and noted that this was the case in the Tamahere cool store fire The Motor Industry Association noted that some of their members do not support the use of HFO- 1234yf due to concerns regarding flammability. This is because of in-house testing showing that a serious head-on collision in which the refrigerant line is severed can result in ignition of HFO-1234yf in a hot engine compartment, whereas currently used R-134a does not ignite In contrast to some of the other submitters, the Motor Trade Association noted that it was their understanding that the potential for fire as the result of motor vehicle accidents was unrealistic, and considered that they were satisfied that use of HFO-1234yf as a motor vehicle refrigerant did not pose a danger to the industry or the public. EPA response WorkSafe proposed that in addition to the default controls for a 2.1.1A substance, variations to certain controls be applied to ensure that the controls on HFO-1234yf are in line with those applied to LPG, propane, butane and isobutene in refrigeration systems We have taken relevant information on this matter into account in our risk assessment and our proposed controls for HFO-1234yf. We consider that the risks related to the flammability of HFO- 1234yf are managed by the proposed controls. Disposal and recovery, and levies Submissions RRNZ noted that they had confirmed with the facility that destroys their recovered refrigerants that the controlled incineration method of disposal used for other refrigerant gases is suitable for destruction of HFOs such as HFO-1234yf They also noted that the cost of destruction of refrigerant gases is currently funded only by the collection of a voluntary levy on the importation of bulk HFC refrigerants and through the NZ Units (under the Emissions Trading Scheme) received from the export of HFC refrigerants exported for destruction. Funding is not received from the equipment and vehicles arriving with HFCs in them, and yet RRNZ noted that they still need to fund destruction of those refrigerants. For HFOs, RRNZ considered that there needed to be an effective method to fund the destruction of HFOs, or less funding would be available for HFC destruction. They noted that NZ Units collected for export or disposal of HFOs would not be likely to cover the costs of their destruction While RRNZ noted that HFOs are not currently subject to requirements under the Climate Change Response Act and that HFO-1234yf has a comparatively low Global Warming Potential (100 year GWP = 4), they considered it important that industry ensures that all synthetic refrigerants are not released to the atmosphere when no longer required As a result they considered that HFOs should be required to be collected and destroyed.

15 CoolCar Air-Conditioning Centres and VASA noted that CFCs and HFCs were considered safe when initially approved and later found to cause unacceptable ozone depletion (CFCs) and contribute to global warming. For this reason they recommend that recovery of HFO-1234yf be mandatory, with recycling and re-use where possible, lest there be unforeseen consequences from the release of the substance There is currently a voluntary training and destruction levy for refrigerants. RLTB recommended that all sellers of refrigerant should be required to collect this levy The Motor Trade Association recommended investigation of an import levy to support the destruction of end-of-life refrigerants. EPA response We note the concerns raised by industry. However, the issue of industry levies is out of scope of the EPA application process and has no bearing on our risk assesment We note that there is the potential for there to be costs incurred by organisations undertaking disposal and recovery activities on refrigerant gases in order for those organisations to have suitable equipment for handling HFO-1234yf. We have taken these costs into account in our assessment We consider that the proposed controls for HFO-1234yf adequately manage risks to people and the environment from the disposal of this substance. Emissions Trading Scheme Submissions CoolCar Air-Conditioning Centres expressed a number of concerns relating to the Emissions Trading Scheme and enforcement of requirements under the Ozone Layer Protection Act 1996 and the Climate Change Response Act Submitters noted that costs have increased recently due to the rise in the price of emissions units. This has increased the cost of importing HFCs. Submitters noted that this may create a perverse incentive to use improper substitutes for HFCs. EPA response We note the concerns raised by industry, and that HFO-1234yf (along with all HFOs) is not currently included within the ETS. However, enforcement of the Scheme, and differing costs of gases included or not, are outside the scope of this risk assessment. Existing market for the product Submissions Sythree Pty Ltd noted that there is a market for this refrigerant and blends containing the refrigerant.

16 Several submitters noted that vehicle refrigeration systems containing HFO-1234yf are already entering New Zealand. It was also noted that several vehicle manufacturers have adopted HFO- 1234yf as their refrigerant of choice, to replace R134a. The submitters stated that they have encountered vehicles in New Zealand using HFO-1234yf for which replacement refrigerant has not been available. This means those vehicles are unable to undergo service to the air-conditioning system at this time. They also noted that HFO-1234yf systems [in automobiles] cannot be retrofitted to use any other refrigerant The Motor Industry Association noted that the European Union has mandated 5 that refrigerant systems in all new approved motor vehicle models from 1 January 2013 must not be filled with a refrigerant with a Global Warming Potential higher than 150, and at present HFO-1234yf is the only permitted refrigerant that satisfies these requirements. They therefore expect the number of vehicles containing HFO-1234yf imported to New Zealand to increase. EPA response We note these submissions acknowledging that HFO-1234yf will already be entering New Zealand in vehicle air-conditioning systems. We have taken into account the expected market for the substance in our benefits assessment. Regulatory Process We note Tru-Test Ltd s comments regarding regulatory process and their recommendation for a new group standard for HFO refrigerants We note that there are existing group standards for compressed gas mixtures that blends containing HFO-1234yf will be able to use should HFO-1234yf be approved. 6. Risk, cost, and benefit assessment 6.1. HFO-1234yf is intended to be manufactured in the United States of America and imported fully labelled and packaged in 4.5 kg and 11.3 steel pressure cylinders with refrigerant valves. The applicant intends that the cylinders only be made available for industrial and commercial users HFO-1234yf will be used to make blends with other refrigerant gases. These blends will be transported in 800 kg steel pressure cylinders. These mixtures are not covered by this application and are instead expected to be assigned to one of the Compressed Gas Mixtures Group Standards HFO-1234yf will also be used (unblended) in motor vehicle air conditioning systems. 5 In Directive 2006/40/EC, entering into effect in the EU in 2011:

17 17 Effects from fire 6.4. HFO-1234yf is a flammable gas and therefore presents potential risks from fire, including harm to human health, property damage, wider communities and surrounding environments We recommend that the default controls for 2.1.1A flammable gases be applied to HFO-1234yf. WorkSafe New Zealand also recommended that variations to some of the default controls be applied to align requirements with those for certain existing flammable gases. We consider that these controls and requirements under other legislation will manage the risks associated with the flammability of HFO-1234yf such that the resulting level of risk is negligible. Human health effects 6.6. HFO-1234yf is intended for use in closed refrigeration and air-conditioning systems, and as such, human exposure is expected to be very limited. Some exposure may occur in the event of leakage, other types of equipment failures, or human error. Some installed systems will be vulnerable to physical impact, in particular air conditioning systems in motor vehicles A qualitative assessment of the risks to human health was undertaken. We have also considered information from other sources, including the NICNAS (National Industrial Chemicals Notification and Assessment Scheme, Australia) risk assessment of the health significance of potential exposure to the substance from a private motor vehicle We note that HFO-1234yf has no human health classifications and do not anticipate that there are likely to be any significant adverse effects related to its human toxicological properties from intended uses However, gases stored as liquids under pressure have the potential to cause some adverse effects related to their physical properties. We note that there is the potential for skin or eye contact with the liquid, and that such contact could cause cryogenic burns as a result of rapid evaporation of the liquefied gas. We consider that this risk can be managed by ensuring that people handling the substance are aware of this risk and have recommended a labelling control. With this control in place, we consider that the risk is negligible HFO-1234yf is also more dense than air, and therefore has the potential to accumulate in enclosed spaces if there is insufficient air movement or ventilation. This presents potential risks of fire and asphyxiation. We consider that the risk of fire is managed by the controls applied to flammable gases. We have recommended a labelling control to inform users of the potential for asphyxia in areas where there is insufficient air movement or ventilation, and with this control in place we consider that the risk is negligible.

18 18 Environmental effects Ecotoxicology We did not undertake quantitative exposure modelling for environmental endpoints for HFO-1234yf, because the use pattern of the substance and the gaseous form of the substance limits the potential for a significant environmental exposure We have therefore qualitatively assessed the potential risks to aquatic and terrestrial ecosystems. We note that liquefied gas released during an accidental spill will evaporate. We consider that it is highly unlikely that there would be a significant environmental exposure other than atmospheric exposure. Additionally HFO-1234yf is non-toxic to the aquatic environment and we consider it highly unlikely that there would be a sufficiently large inhalation exposure to terrestrial vertebrates to cause adverse effects. We therefore do not anticipate that there are likely to be any significant adverse effects related to its ecotoxicological properties. Environmental fate HFO-1234yf is unlikely to enter the waterways or contaminate soils for a prolonged period of time due to the volatility and physical state of the substance The atmospheric lifetime of HFO-1234yf is relatively short compared with HFC and HCFC refrigerants, and we note that the substance has a much smaller contribution to global warming effects than the refrigerants it is intended to replace. We have taken this into account in our benefits assessment We also note that HFO-1234yf is considered not ozone depleting. Relationship of Māori to the Environment Kupu arataki (context) The potential effects of HFO-1234yf on the relationship of Māori to the environment have been assessed in accordance with sections 5(b), 6(d) and 8 of the Act. Under these sections all persons exercising functions, powers and duties under this Act shall: recognise and provide for the maintenance and enhancement of people and communities to provide for their cultural well-being, and; take into account the relationship of Māori and their culture and traditions with their ancestral lands, water, taonga and the principles of the Treaty of Waitangi (Te Tiriti o Waitangi) We note that HFO-1234yf is a flammable gas, and that there is the potential for cultural risk from this hazardous property. Cultural risk includes any negative impacts to treasured flora and fauna species, the environment, and the general health and well-being of individuals and the community In general, the introduction and use of hazardous substances has the potential to inhibit the ability of Māori to fulfil their role as kaitiaki.

19 19 Mahinga kai (food resources) HFO-1234yf is not expected to pose any significant risk to mahinga kai as mahinga kai species are not expected to be adversely impacted in the event of a fire arising from the hazard properties of this substance. We note that the expected environmental concentrations are below levels that would cause harm to mahinga kai species. Te Marae o Maru me Te Marae o Tāne (freshwater and terrestrial ecosystems) HFO-1234yf is not expected to pose any significant risk or impacts in relation to Te Marae o Maru (freshwater ecosystems) or Te Marae o Tāne (terrestrial ecosystems), including culturally significant species associated with mahinga kai, rongoā (medicine), pūere (textiles), taputapu (tools and equipment), mahi toi (arts and craft) and whakarākei (ornamentation) No significant risk is anticipated in relation to: Ngā wai koiora me ngā rauropi wai (aquatic habitats and aquatic organisms) Te Aitanga Pepeke (insects and arthropods) Ngā one me Te Aitanga a Punga (soils and soil dwelling organisms) Ngā manu (birds) Ngā ngāngara (reptiles) Ngā otaota (plants) Ngā rīroi (rodents) Ngā mōkaikai me ngā kararehe (pets and quadrupeds). Taha hauora (human health) As HFO-1234yf is a flammable gas, HFO-1234yf poses a risk to taha hauora, in particular the dimensions of taha wairua (spiritual health and well-being obtained through the maintainance of a balance with nature and the protection of mauri) and taha tinana (physical health and wellbeing) Fire caused by HFO-1234yf would have the potential to inhibit taha whānaunga the responsibility to belong, care for and share in the collective, includings relationships and social cohesion. Adverse impacts on the ability of people to protect co-workers and others could impact on collective welfare, well-being, and safety amongst those using HFO-1234yf and in wider communities We note that HFO-1234yf will generally be used on private premises or other areas where access to systems or facilities using HFO-1234yf is controlled, or in closed refrigeration systems. We note that persons responsible for these places will be obliged to advise others of the hazards associated with use of HFO-1234yf. We note that there will be controls on the use of HFO-1234yf to mitigate these risks to taha hauora from the flammability of HFO-1234yf.

20 We therefore consider that the risks to taha hauora will be mitigated by users, operators, installers and service people following the controls on this substance. Ētahi atu mea (other matters) The use of HFO-1234yf as a heat transfer fluid is expected to bring economic benefits for people who own or work with refrigeration and air conditioning facilities some of whom will be Māori. Kupu whakatepe (conclusion) Based on the information provided, including the use pattern and the controls proposed to be assigned to HFO-1234yf, the potential risks to Māori culture or traditional relationships with the environment are expected to be negligible If HFO-1234yf is used in the intended manner it is considered that it is not likely to breach the principles of the Treaty of Waitangi, including the principle of active protection. New Zealand s international obligations HFO-1234yf is not itself currently subject to any international obligations that affect this approval. However, there are a number of international obligations that apply to other refrigerants, specifically obligations related to the Kyoto Protocol and the Montreal Protocol. These protocols are described in section 2 of this document and involve worldwide commitments to eliminate or reduce the use of ozone-depleting substances and substances with global warming properties HFO-1234yf is an alternative refrigerant that has no ozone-depleting potential and a comparatively low global warming potential. HFO-1234yf and blends containing HFO-1234yf will likely be used in place of substances subject to the protocols. Approval of this application for HFO-1234yf would assist New Zealand in meeting its obligations under these protocols by providing an alternative to HCFCs and HFCs for the refrigerant industry. Approval of HFO-1234yf is expected to improve New Zealand s ability to meet its Montreal Protocol obligations and its emissions reduction commitment under the UNFCCC. Assessment of costs We note that approval of HFO-1234yf could potentially lead to costs for organisations undertaking recovery and disposal activities on refrigerants, should handling and recovery of HFO-1234yf be more expensive due to the requirement for new or upgraded equipment. We consider that these potential costs are likely to be not significant in terms of their overall impact.

21 21 Assessment of benefits Applicant The applicant notes that HFO-1234yf is non-ozone depleting, and has a much lower global warming potential than the substances it is intended to replace. They note that the blends containing HFO- 1234yf will also have a lower GWP than the gases or blends of gases they are intended to replace They also note that blends containing HFO-1234yf are showing performance improvements in energy efficiency in refrigerant applications, referring to the blend R448A compared with the existing blend R404A and with R They also noted that HFO-1234yf degrades readily in the environment, with an 11 day lifetime in the atmosphere. Submissions We note the benefits described by submitters, including cost savings for end users from increased energy efficiency, and environmental benefits from using a refrigerant with low GWP and no ODP. EPA assessment We consider that HFO-1234yf provides a non-ozone depleting, low global warming potential refrigerant gas alternative to existing refrigerants that are subject to international regulation. Accordingly we consider that availability of HFO-1234yf would provide significant benefits to the refrigeration industry, to the environment and to New Zealand s ability to meet its international obligations. 7. The effects of the substance being unavailable 7.1. We consider that if HFO-1234yf was not approved, the significant benefits described above to the refrigeration industry, the environment, and to New Zealand s international obligations, would not be realised. We also note that the potential costs to the organisations undertaking recovery of refrigerants would not be incurred. 8. Controls 8.1. A set of default controls are specified by regulations under the Act, based on the hazard classifications determined for HFO-1234yf. The default controls form the basis of the controls proposed to be applied to HFO-1234yf as set out in Appendix A. Based on the risk assessment, we recommend that the following additions, variations and deletions are applicable to HFO-1234yf. The setting of exposure limits 8.2. We note that HFO-1234yf does not trigger the controls that prescribe for Tolerable Exposure Limits (TELs), Acceptable Daily Exposure (ADE), and Potential Daily Exposure (PDE) values to be set. Nevertheless, we considered whether these values should be set for HFO-1234yf. We concluded that

22 22 due to the low toxicity of the substance with no identified target organ effect following acute or chronic exposures, these values should not be set for HFO-1234yf Environmental Exposure Limits (EELs) can be set to limit hazardous substances from entering the environment in quantities sufficient to present a risk to it. No EEL values are proposed for HFO-1234yf as the substance does not trigger any ecotoxic hazard classifcations. Variation and deletion of controls 8.4. Approved handler requirements for flammable substances apply to this substance as a result of its flammable gas classification. We consider it appropriate to apply approved handler requirements through the lifecycle of this substance, but to apply a variation to the default control so that approved handler requirements do not need to be met during transportation of HFO-1234yf. This is because the Dangerous Goods Regulations provide sufficient measures to mitigate the potential risks of HFO- 1234yf during transport of the substance WorkSafe New Zealand proposed variations to some of the controls that are the same variations as are currently applied to LPG, butane, propane, and isobutane. They consider that these variations will ensure consistency in regulation of flammable gases, and we recommend these variations be applied. Additional controls 8.6. HFO-1234yf presents a potential risk to people handling the substance if there is a significant release of the substance, due to cryogenic effects from rapid evaporation of the liquefied gas. The default controls for HFO-1234yf do not include identification requirements that would require this potential risk be identified to users of the substance. We therefore recommend that an additional control be applied to HFO-1234yf to require that information about the potential risk from cryogenic effects be included on the label for the substance, along with information about the appropriate personal protective equipment (PPE) to be worn to protect from cryogenic effects HFO-1234yf is heavier than air and therefore a leak of the substance presents the potential for pooling of the substance in areas where there is poor ventilation and air flow. This leads to the potential for asphyxiation where there is reduced oxygen available for breathing. We therefore recommend that an additional control be applied to HFO-1234yf to require that information about this risk appear on the label for the substance, to communicate this information to users of the substance. Risks of the substance given the recommended controls 8.8. We consider that with the proposed controls in place, the level of risk to human health and the environment will be negligible. Review of controls for cost-effectiveness 8.9. We consider that the proposed controls are the most cost-effective means of managing the identified potential risks and costs associated with this substance.