HB 1112 — Reducing greenhouse gas emissions from hydrofluorocarbons.

H-1883.3SECONDH-0282.2HOUSE SUBSTITUTE HOUSE BILL 1112State of Washington66th Legislature2019 Regular SessionByHouseSessionByRepresentatives Appropriations (originally sponsored by Representatives Fitzgibbon, Kloba, Peterson, Tharinger, Jinkins, Macri, Goodman, Bergquist, Doglio, Robinson, Pollet, Stanford, and Frame)READFramePrefiled FIRST01/10/19.Read TIMEfirst 02/22/19.ANtime 01/14/19.Referred to Committee on Environment & Energy.AN ACT Relating to reducing greenhouse gas emissions from hydrofluorocarbons;

(1) The legislature finds that hydrofluorocarbons are air pollutants that pose significant threats to our environment and that safer alternatives for the most damaging hydrofluorocarbons are readily available and cost-effective.(2) Hydrofluorocarbons came into widespread commercial use as an United States environmental protection agency-approvedagency replacementsapproved replacement for ozone-depleting substances that were being phased out under an international agreement.

However, under a 2017 federal appeals court ruling, while the environmental protection agency had been given the power to originally designate hydrofluorocarbons as a suitable replacementsreplacement for the ozone-depleting substances, the environmental protection agency did not have clear authority to require the replacement of hydrofluorocarbons once the replacement of the original ozone-depleting substances had already occurred.(3) Because the impacts of climate change will not wait until congress acts to clarify the scope of the environmental protection agency's authority, it falls to the states to provide leadership on addressingphasing out hydrofluorocarbons.

Although hydrofluorocarbons currently represent a small proportion of the state'sstate greenhouse gas emissions, emissions of hydrofluorocarbons have been rapidly increasing in the United States and worldwide, and they are thousands of times more potent than carbon dioxide.

SubstitutingPhasing orout reducing the use of hydrofluorocarbons with the highest global warming potential will provide a significant boost to the state's efforts to reduce its greenhouse gas emissions to the limits established in RCW 70.235.020.(4) Therefore, it is the intent of the legislature to transitionphase toout the use of less damaging hydrofluorocarbons or suitable substitutes in various applications in Washington, in a manner similar to the regulations that were adopted by the environmental protection agency, and that have been subsequently adopted or will be adopted in several other states around the country.Sec.

Part 82, as those read on January 3, 2017.(11) "Hydrofluorocarbons" means a class of greenhouse gases that are saturated organic compounds containing hydrogen, fluorine, and carbon.(12) "Manufacturer" includes any person, firm, association, partnership, corporation, governmental entity, organization, or joint venture that produces any product that contains or uses hydrofluorocarbons or is an importer or domestic distributor of such a product.(13) "Residential consumer refrigeration products" has the same meaning as defined in section 430.2 of Subpart A of 10 C.F.R.

Part 430 (2017).(14)(2017).(13) "Retrofit""Substitute" hasmeans thea samechemical, meaningproduct assubstitute, definedor inalternative sectionmanufacturing 152process, ofwhether Subpartexisting For ofnew, 40that C.F.R.is used to perform a function previously performed by a class I substance or class II substance and any substitute subsequently adopted to perform that function, including, but not limited to, hydrofluorocarbons.NEW SECTION.  Sec.

Part 82, as that section existed as of January 3, 2017.(15) "Substitute" means a chemical, product substitute, or alternative manufacturing process, whether existing or new, that is used to perform a function previously performed by a class I substance or class II substance and any substitute subsequently adopted to perform that function, including, but not limited to, hydrofluorocarbons.

"Substitute" does not include 2-BTP or any compound as applied to its use in aerospace fire extinguishing systems.

NEW SECTION.  Sec.

A new section is added to chapter 70.235 RCW to read as follows:(1) A person may not offeruse, anysell, productinstall, or equipmentoffer for sale, lease, or rent, or install or otherwise cause any equipment or product to enter into commerce in Washington if that equipment or product consists of, uses, or will use a substitute, as set forth in appendixAppendix U and V,Appendix V of Subpart G of 40 C.F.R.

Part 82, and the portion of Appendix B of Subpart G of 40 C.F.R Part 82 pertaining to motor vehicle air conditioning, as those read on January 3, 2017, for the applications or end uses restricted by appendixthe Ufederal orregulation, Vconsistent ofwith the federaldeadlines regulation,established asin thosesubsection read(2) onof Januarythis 3,section.(2) 2017,The consistentrestrictions withunder subsection (1) of this section for the deadlinesfollowing establishedproducts and equipment identified in subsectionAppendix (2)B, Appendix U, and Appendix V of thisSubpart section.G of 40 C.F.R.

ExceptPart where82, existingas equipmentthose isread retrofit,on nothingJanuary in3, this2017, subsectiontake requireseffect abeginning:(a) personJanuary that1, acquired2020, afor:(i) restrictedPropellants;(ii) productRigid orpolyurethane equipmentapplications priorand tospray thefoam, effectiveflexible datepolyurethane, ofintegral theskin restrictionspolyurethane, inpolystyrene subsectionapplications, (2)polyolefin, ofphenolic thisinsulation sectionboard, toand ceasebunstock;(iii) useSupermarket ofsystems, thatremote productcondensing orunits, equipment.stand-alone units, and vending machines;(b) January 1, 2021, for refrigerated food processing and dispensing equipment;(c) January 1, 2022, for residential consumer refrigeration products other than built-in residential consumer refrigeration products;(d) January 1, 2023, for cold storage warehouses;(e) January 1, 2023, for built-in residential consumer refrigeration products;(f) January 1, 2024, for centrifugal chillers and positive displacement chillers;(g) Model year 2021 for light duty vehicles;

Productsand(h) orOn equipmenteither manufacturedJanuary prior1, to2020, or the applicable effective date of the restrictions specifiedidentified in subsectionAppendix (2)B, ofAppendix thisU, section may be sold, imported, exported, distributed, installed, and usedAppendix afterV the specified effective date.(2) The restrictions under subsection (1) of this section for the following products and equipment identified in appendix U and V, Subpart G of 40 C.F.R.

Part 82, as those read on January 3, 2017, takewhichever effectcomes beginning:(a)later, Januaryfor 1,all 2020,other for:(i)applications Propellants;(ii)and Rigidend polyurethaneuses applicationsfor andsubstitutes spraynot foam,covered flexibleby polyurethane,the integralcategories skinlisted polyurethane,in flexible(a) polyurethanethrough foam,(g) polystyreneof extrudedthis sheet,subsection.(3) polyolefin,The phenolicdepartment insulationmay board,by andrule:(a) bunstock;(iii)Modify Supermarketthe systems,effective remotedate condensingof units,a stand-aloneprohibition units,established andin vendingsubsection machines;(b)(2) Januaryof 1,this 2021,section, for:(i)if Refrigeratedthe fooddepartment processingdetermines andthat dispensingthe equipment;(ii)rule Compactreduces residentialthe consumeroverall refrigerationrisk products;(iii)to Polystyrenehuman extrudedhealth boardstockor andthe billet,environment and rigidreflects polyurethanethe low-pressureearliest twodate componentthat spraya foam;(c)substitute Januaryis 1,currently 2022,or forpotentially residentialavailable;(b) consumerProhibit refrigerationthe productsuse otherof thana compactsubstitute andif built-inthe residentialdepartment consumerdetermines refrigerationthat products;(d)the Januaryprohibition 1,reduces 2023,the foroverall coldrisk storageto warehouses;(e)human Januaryhealth 1,or 2023,the forenvironment built-inand residentialthat consumera refrigerationlower products;(f)risk Januarysubstitute 1,is 2024,currently foror centrifugalpotentially chillersavailable;(c)(i) andCreate positivea displacementlist chillers;of approved substitutes, use conditions, or use limits, if any;

and(g)and(ii) OnAdd eitheror Januaryremove 1,substitutes, 2020,use conditions, or theuse effectivelimits dateto or from the list of approved substitutes if the restrictionsdepartment identifieddetermines inthose appendixsubstitutes Ureduce andthe V,overall Subpartrisk Gto ofhuman 40health C.F.R.and the environment.

Part(4) 82,A asperson thosethat readoffers onequipment Januaryor 3,a 2017,product whichever comes later, for allsale other applications and end uses for substituteswhich not covered by the categoriesuse listed in (a) through (f) of this subsection.(3) The department may by rule:(a) Modify the effective date of a prohibitionsubstitute establishedis inrestricted under subsection (2) of this section if the department determines that the rule reduces the overall risk to human health or the(3) environment and reflects the earliest date that a substitute is currently or potentially available;(b) Prohibit the use of athis substitutesection ifmust theretain departmentrecords determinesrelating that the prohibition reduces the overall risk to human health or the environmentperson's andcompliance thatwith athis lowerchapter. risk substitute is currently or potentially available;(c)(i) Adopt a list of approved substitutes, use conditions, or use limits, if any;

and(ii)The Adddepartment ormay removerequire substitutes,a useperson conditions,that manufacturers or useoffers limitsequipment or a product for sale that is subject to orthe fromrestrictions on the listuse of approved substitutes ifunder this section to fulfill the departmentfollowing, determineswith thoserespect to the use of substitutes reduceassociated with the overallequipment riskor toproduct:(a) humanDisclose healththe anduse of substitutes on the environment;label of the equipment or product;

and(d)and(b) DesignateSubmit acceptableinformation usesabout of hydrofluorocarbons for medical uses that are exempt from the requirementsuse of subsection (2) of this section.(4)(a) Within twelve months of another state's enactment or adoption of restrictions on substitutes applicable to newthe lightdepartment, dutyupon vehicles,request.(5) theThe department mustmay adopt restrictionsrules applicable to theadminister, sale,implement, lease,and rental,enforce orthis othersection. introduction into commerce by a manufacturer of new light duty vehicles consistent with the restrictions identified in appendix B, Subpart G of 40 C.F.R.

PartThe 82,department asshould itseek, readwhere feasible and appropriate, to adopt rules, including rules under subsection (4) of this section, that are consistent with the regulatory standards, exemptions, reporting obligations, and other compliance requirements of other states that have adopted restrictions on Januarythe 3,use 2017.of hydrofluorocarbons and other substitutes.(6) The authority granted by this section to the department for restricting the use of substitutes is supplementary to the department's authority to control air pollution pursuant to chapter 70.94 RCW.

TheNothing department may not adopt restrictions that take effect prior to the effective date of restrictions adopted or enacted in atthis leastsection onelimits other state.(b) If the Unitedauthority States environmental protection agency approves a previously prohibited hydrofluorocarbon blend with a global warming potential of seven hundred fifty or less for foam blowing of polystyrene extruded boardstock and billet and rigid polyurethane low-pressure two-component spray foam pursuant to the significantdepartment new alternatives policy program under sectionchapter 7671(k)70.94 ofRCW.Sec. the federal clean air act (42 U.S.C.

Sec.

7401 et seq.), the department must expeditiously adopt a rule to conform the requirements established under this section with that federal action.(5) A manufacturer must disclose the substitutes used in its products or equipment.

That disclosure must take the form of:(a) A label on the equipment or product.

The label must meet requirements designated by the department by rule.

To the extent feasible, the department must recognize existing labeling that provides sufficient disclosure of the use of substitutes in the product or equipment.(i) The department must consider labels required by state building codes and other safety standards in its rule making;

and(ii) The department may not require labeling of aircraft and aircraft components subject to certification requirements of the federal aviation administration.(b) Submitting information about the use of substitutes to the department, upon request.(i) Beginning December 31, 2019, all manufacturers must notify the department of the status of each product class utilizing hydrofluorocarbons or other substitutes restricted under subsection (1) of this section that the manufacturer sells, offers for sale, leases, installs, or rents in Washington state.

This status notification must identify the substitutes used by products or equipment in each product or equipment class in a manner determined by rule by the department.(ii) Within one hundred twenty days after the date of a restriction put in place under this section, any manufacturer affected by the restriction must provide an updated status notification.

This notification must indicate whether the manufacturer has ceased the use of hydrofluorocarbons or substitutes restricted under this section within each product class and, if not, what hydrofluorocarbons or other restricted substitutes remain in use.(iii) After the effective date of a restriction put in place under this section, any manufacturer must provide an updated status notification when the manufacturer introduces a new or modified product or piece of equipment that uses hydrofluorocarbons or changes the type of hydrofluorocarbons utilized within a product class affected by a restriction.

Such a notification must occur within one hundred twenty days of the introduction into commerce in Washington of the product or equipment triggering this notification requirement.(6) The department may adopt rules to administer, implement, and enforce this section.

If the department elects to adopt rules, the department must seek, where feasible and appropriate, to adopt rules, including rules under subsection (4) of this section, that are the same or consistent with the regulatory standards, exemptions, reporting obligations, disclosure requirements, and other compliance requirements of other states or the federal government that have adopted restrictions on the use of hydrofluorocarbons and other substitutes.

Prior to the adoption or update of a rule under this section, the department must identify the sources of information it relied upon, including peer-reviewed science.(7) For the purposes of implementing the restrictions specified in appendix U of Subpart G of 40 C.F.R.

Part 82, as it read on January 3, 2017, consistent with this section, the department must interpret the term "aircraft maintenance" to mean activities to support the production, fabrication, manufacture, rework, inspection, maintenance, overhaul, or repair of commercial, civil, or military aircraft, aircraft parts, aerospace vehicles, or aerospace components.(8) The authority granted by this section to the department for restricting the use of substitutes is supplementary to the department's authority to control air pollution pursuant to chapter 70.94 RCW.

Nothing in this section limits the authority of the department under chapter 70.94 RCW.(9) Except where existing equipment is retrofit, the restrictions of this section do not apply to or limit any use of commercial refrigeration equipment that was installed or in use prior to the effective date of the restrictions established in this section.Sec.

A new section is added to chapter 19.27 RCW to read as follows:The building code council shall adopt rules that permit the use of allowed substitutes approvedconsistent underwith section 3 of this act and that do not require the use of substitutes that are restricted under section 3 of this act.

The department of ecology, in consultation with the department of commerce and the utilities and transportation commission, must complete a reportstudy addressing how to increase the use of refrigerants with a low global warming potential in mobile sources, utility equipment, and consumer appliances, and how to reduce other uses of hydrofluorocarbons in Washington.

A new section is added to chapter 39.26 RCW to read as follows:(1) The department shall establish purchasing and procurement policies that provide a preference for products that:(a) Are not restricted under section 3 of this act;(b) Do not contain hydrofluorocarbonshydrofluorocarbons;(c) or contain hydrofluorocarbons with a comparatively low global warming potential;(c) Are not designed to function only in conjunction with hydrofluorocarbonshydrofluorocarbons; characterized by a comparatively high global warming potential;

and(d) Were not manufactured using hydrofluorocarbonshydrofluorocarbons.(2) or were manufactured using hydrofluorocarbons with a low global warming potential.(2) No agency may knowingly purchase products thatidentified are not accorded a preference in the purchasing and procurement policies established by the department pursuant to subsection (1) of this section,section unless there is no cost-effective and technologically feasible optionalternative. that is accorded a preference.(3) Nothing in this section requires the department or any other state agency to breach an existing contract or dispose of stock that has been ordered or is in the possession of the department or other state agency as of the effective date of this section.(4) By December 1, 2020, and each December 1st of even numbered years thereafter, the department must submit a status report to the appropriate committees of the house of representatives and senate regarding the implementation and compliance of the department and state agencies with this section.NEW SECTION.  Sec.

When all available products contain hydrofluorocarbons, are designed to function in conjunction with hydrofluorocarbons, or were manufactured using hydrofluorocarbons, a preference must be given to alternative products that use or are likely to be associated with the release of the lowest amount of or comparatively lower amounts of hydrofluorocarbons.(3) Nothing in this section requires the department or any other state agency to breach an existing contract or dispose of stock that has been ordered or is in the possession of the department or other state agency as of the effective date of this section.(4) By December 1, 2020, and each December 1st of even numbered years thereafter, the department must submit a status report to the appropriate committees of the house of representatives and senate regarding the implementation and compliance of the department and state agencies with this section.NEW SECTION.  Sec.