Bill Text: HI SB2760 | 2020 | Regular Session | Introduced
Bill Title: Relating To Hydrofluorocarbon Refrigerants.
Spectrum: Partisan Bill (Democrat 6-0)
Status: (Introduced - Dead) 2020-01-27 - Referred to EET/GVO, CPH. [SB2760 Detail]
Download: Hawaii-2020-SB2760-Introduced.html
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THE SENATE |
S.B. NO. |
2760 |
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THIRTIETH LEGISLATURE, 2020 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to hydrofluorocarbon refrigerants.
BE IT
ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that hydrofluorocarbons, or HFCs, are air pollutants that are at least one hundred times and up to several thousand times more potent as greenhouse gases than carbon dioxide. Due to their global warming potential, hydrofluorocarbons pose a significant threat when released to our environment.
The legislature finds that hydrofluorocarbons are entirely human-made and do not occur naturally. Hydrofluorocarbons are mainly used in refrigeration and air conditioning equipment and as propellants in industrial aerosols, having replaced the use of chlorofluorocarbons in those roles after chlorofluorocarbons were found to damage the ozone layer in the upper atmosphere. Hydrofluorocarbons are also used for foam blowing, solvent cleaning, and in fire extinguishers. The main sources of hydrofluorocarbons in the atmosphere are from the manufacture of, leakage from, and disposal of refrigeration and air conditioning equipment and aerosols.
Although the United States Environmental Protection Agency adopted rules in 2016 to ban the use of certain hydrofluorocarbons, a federal appeals court vacated those rules in 2017, finding that the Environmental Protection Agency did not have the clear authority to impose the ban. Due to the absence of federal regulation in this area, the legislature finds that states must now provide leadership to address the use of hydrofluorocarbons. Climate change will not wait for Congress to amend federal law to clarify the scope of the Environmental Protection Agency's authority. The legislature also finds that prompt state action will help American businesses retain their positions as global leaders in air conditioning and refrigerant technologies.
Hawaii's 2015 greenhouse gas emissions report, which was prepared by the university of Hawaii's economic research organization for the department of health and released in 2019, estimated that hydrofluorocarbon emissions rose more than fifty per cent between 2007 and 2015 and totaled approximately eight hundred twenty thousand metric tons of carbon dioxide equivalents, accounting for ninety-nine per cent of the State's industrial process and product use emissions. Despite this, cost-effective alternatives to the most damaging hydrofluorocarbons are readily available. Therefore, hydrofluorocarbons will be comparatively easy to reduce and eliminate without widespread implications for the way that power is produced, heavy industries operate, or people transport themselves. Substituting or 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.
Accordingly, the purpose of this Act is to encourage the transition to the use of less damaging hydrofluorocarbons or suitable substitutes in various applications in Hawaii. The legislature notes that the framework established by this Act is similar to regulations that were previously adopted by the Environmental Protection Agency and that have been subsequently adopted in other states.
SECTION 2. Chapter 342B, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:
"Part . Regulation
of hydrofluorocarbons
§342B-A Definitions. As used in this part, unless the context otherwise requires:
"Class I substance" and "class II substance" means those substances listed in 42 United States Code section 7671a, as it read on November 15, 1990, or those listed in Appendix A or B of Subpart A of 40 Code of Federal Regulations part 82, as those read on January 3, 2017.
"Consumer refrigeration product" shall have the same meaning as in 10 Code of Federal Regulations section 430.2, as that section read on January 3, 2017.
"Greenhouse gas" includes carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons, sulfur hexafluoride, and any other gas designated by the department by rule.
"Hydrofluorocarbons" means a class of greenhouse gases that are saturated organic compounds containing hydrogen, fluorine, and carbon.
"Manufacturer" means a person that produces, imports, or distributes a product that contains or uses hydrofluorocarbons.
"Retrofit" shall have the same meaning as in 40 Code of Federal Regulations section 82.152 section 152, as that section read on January 3, 2017.
"Substitute" means a chemical, product substitute, or alternate 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; provided that the term shall not include 2‑BTP or any compound as applied to its use in aerospace fire extinguishing systems.
§342B-B
Regulation of hydrofluorocarbons. (a) No person shall offer any product or equipment
for sale, lease, rent, install, or otherwise cause the product or equipment to enter
commerce in the State if that equipment or product consists of, uses, or will use
a substitute, consistent with the deadlines established in subsection (b).
(b) The
restrictions under subsection (a) for the following products and equipment identified
in Appendixes U and V, Subpart G of 40 Code of Federal Regulations Part 82, as those
read on January 3, 2017, shall take effect beginning:
(1) January 1, 2021, for:
(A) Propellants;
(B) Rigid polyurethane applications and spray foam, flexible polyurethane, integral skin polyurethane, flexible polyurethane foam, polystyrene extended sheet, polyolefin, phenolic insulation board, and bunstock; and
(C) Supermarket systems, remote condensing units, standalone units, and vending machines;
(2) January 1, 2022, for:
(A) Refrigerated food processing and dispensing equipment;
(B) Compact consumer refrigeration products; and
(C) Polystyrene extruded boardstock and billet, and rigid polyurethane low-pressure two component spray foam;
(3) January 1, 2023, for consumer refrigeration products other than compact and built-in consumer refrigeration products;
(4) July 1, 2023, for cold storage warehouses;
(5) July 1, 2024, for built-in consumer refrigeration products;
(6) July 1, 2024, for centrifugal chillers and positive displacement chillers; and
(7) On either July 1, 2022, or the effective date of the restrictions identified in appendixes U and V, Subpart G of 40 Code of Federal Regulations Part 82, as those read on January 3, 2017, whichever is later, for all other applications and end uses for substitutes not covered by the categories listed in paragraphs (1) through (6) of this subsection.
(c) Except
where existing equipment is retrofit, nothing in this section shall be deemed to
require a person who acquired a restricted product or equipment prior to the effective
date of the restrictions in subsection (b) to cease use of that product or equipment.
A product or equipment manufactured prior
to the applicable effective date of the restrictions specified in subsection (b)
may be sold, imported, exported, distributed, installed, and used after the specified
effective date.
(d) The
department may adopt rules pursuant to chapter 91 to:
(1) Modify the effective date of a prohibition established in subsection (b) if the department determines that the rule reduces the overall risk to human health or the environment and reflects the earliest date that a substitute is currently or potentially available;
(2) Prohibit the use of a substitute if the department determines that the prohibition reduces the overall risk to human health or the environment and that a lower risk substitute is currently or potentially available;
(3) Adopt a list of approved substitutes, use conditions, or use limits, if any;
(4) Add or remove substitutes, use conditions, or use limits to or from the list of approved substitutes if the department determines those substitutes reduce the overall risk to human health and the environment; and
(5) Designate acceptable uses of hydrofluorocarbons for medical uses that are exempt from the requirements of subsection (b).
(e) Within
twelve months of another state's enactment or adoption of restrictions on substitutes
applicable to new light duty vehicles, the department may adopt restrictions applicable
to the sale, lease, rental, or other introduction into commerce by a manufacturer
of new light duty vehicles consistent with the restrictions identified in Appendix
B, Subpart G of 40 Code of Federal Regulations Part 82, as it read on January 3,
2017. The department shall not adopt restrictions
that take effect prior to the effective date of the restrictions adopted or enacted
in at least one other state.
(f) If
the United 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 significant new alternatives
policy program under 42 United States Code section 7671k, the department shall adopt
rules to conform its rules to that federal action as soon as practicable.
§342B-C
Disclosure of the use of substitutes. A manufacturer
shall disclose the substitutes used in its products or equipment in the form of:
(1) A label on the product or equipment that meets the requirements established by the department by rule; provided that:
(A) To the extent practicable, the department shall recognize existing labeling that provides sufficient disclosure of the use of substitutes in the product or equipment;
(B) The department shall consider labels required by state building codes and other safety standards when adopting rules pursuant to this paragraph; and
(C) The department shall not require the labeling of aircraft and aircraft components subject to certification requirements of the Federal Aviation Administration; and
(2) Submitting information about the use of substitutes to the department, upon request; provided that the submission meets the following deadlines:
(A) By December 31, 2021, all manufacturers shall notify the department of the status of each product class utilizing hydrofluorocarbons or other substitutes restricted under section 342B-A that the manufacturer sells, offers for sale, leases, installs, or rents in the State. This status notification shall identify the substitutes used by the products or equipment in each product or equipment class in a manner determined by rule;
(B) Within one hundred twenty days of the date a restriction is put in place pursuant to this section, any manufacturer affected by the restriction shall provide an updated status notification, which shall 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; and
(C) After the effective date of a restriction put in place pursuant to this section, a manufacturer shall 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; provided that the notification shall occur within one hundred twenty days of the date the product or equipment triggering the notification requirement in this subparagraph is introduced into commerce in the State.
§342B-D Rules. The department may adopt rules pursuant
to chapter 91 to implement this section; provided that:
(1) The department shall seek, where feasible, to adopt rules, including rules under section 342B-B(e), that are 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; and
(2) Prior to the adoption or update of a rule under this section, the department shall identify the sources of information it relied on, including peer-reviewed science.
§342B-E Aircraft maintenance; definition. 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 shall 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.
§342B-F Authority to regulate supplementary. The
authority granted by this part to the department to restrict the use of
substitutes shall be supplementary to the department's authority to control air
pollution pursuant to this chapter. Nothing in this part shall be construed to limit
any authority granted to the department under any other law.
§342B-G Use of commercial refrigeration equipment after
effective date of restrictions. Except where existing equipment is retrofit,
the restrictions of this part shall not apply to or limit any use of commercial
refrigeration equipment that was installed or placed in use prior to the
effective date of the restrictions established in this part.
§342B-H
Penalties. (a) The department may fine any person not more than
$25,000 per day for each violation of any provision of this part or any rule adopted
under this part. The director may also impose
an administrative penalty of not more than $25,000 per day for each violation of
any provision of this part or any rule adopted under this part. Each day of each violation shall constitute a separate
offense for the purpose of calculating the fine or penalty.
(b) Any
person who fails to comply with an order issued pursuant to this part shall be fined
not more than $25,000 for each day of continued noncompliance.
(c) A
fine or administrative penalty incurred but not paid shall accrue interest, beginning
on the ninety-first day following the date the penalty became due, at the highest
rate allowed under chapter 478. If a fine
or administrative penalty is appealed, interest shall not begin to accrue until
the thirty-first day following the date of the final resolution of the appeal.
(d) The maximum penalty amount established by subsection
(a) may be increased annually to adjust for inflation, as calculated by the consumer
price index or other acceptable adjustment mechanism as determined by the rule.
(e) All
fines collected under this section shall be deposited in the environmental response
revolving fund established by section 128D-2.
(f) A public
or private entity that receives or is the potential recipient of a grant from the
department may have the grant rescinded or withheld by the department for failure
to comply with the provisions of this part.
(g) In
addition to other penalties provided by this part or by a rule adopted pursuant
to this part, any person who knowingly underreports emissions or other information
used to set fees, or persons who are required to pay emission or permit fees who
are more than ninety days late with regard to the payment, may be subject to a penalty
equal to three times the amount of the original fee owed.
(h) The
department shall adopt rules to excuse excess emissions from enforcement action
if the emissions are unavoidable. The rules
shall specify the criteria and procedures for the department and local air authorities
to determine whether a period of excess emissions is excusable in accordance with
the state implementation plan."
SECTION 3. Chapter 103D, Hawaii Revised Statutes, is amended by adding a new section to part X to be appropriately designated and to read as follows:
"§103D- Preference for products that do not contain
hydrofluorocarbons. (a) The
policy board shall adopt rules that provide a preference for products that:
(1) Are not
restricted under section 342B-B;
(2) Do not contain
hydrofluorocarbons or contain hydrofluorocarbons with a comparatively low
global warming potential;
(3) Are not
designed to function only in conjunction with hydrofluorocarbons characterized
by a comparatively high global warming potential; and
(4) Were not
manufactured using hydrofluorocarbons or were manufactured using hydrofluorocarbons
with a low global warming potential.
(b) A government
body shall not knowingly purchase a product that is not accorded a preference in
the purchasing and procurement rules established by the policy board pursuant
to subsection (a) unless there is no cost-effective and technologically
feasible option that is accorded a preference.
(c) Nothing
in this section shall require an agency to breach an existing contract or dispose
of stock that has been ordered or is in the possession of the agency as of the effective
date of this section.
(d) As
used in this section, "hydrofluorocarbon" shall have the same meaning
as in section 342B-A."
SECTION 4. Chapter 107, Hawaii Revised Statutes, is amended by adding a new section to part II to be appropriately designated and to read as follows:
"§107- State
building codes; hydrofluorocarbons; updates. (a) When adopting, amending, or updating the codes
and standards identified in section 107-25, the council shall establish codes and
standards that permit the use of substitutes and do not require the use of substitutes
that are restricted by section 342B-B.
(b) As
used in this section, "substitute" shall have the same meaning as in section
342B-A."
SECTION 5. (a) The department of health, in conjunction with the state energy office, shall conduct a study that:
(2) Addresses how to reduce other uses of hydrofluorocarbons in the State; and
(3) Provides recommendations for funding, structuring, and prioritizing a state program that incentivizes or provides grants to support the elimination of legacy uses of all hydrofluorocarbons, including hydrofluorocarbons that are not regulated by section 2 of this Act.
(b) The department of health shall submit a report of its findings and recommendations, including any proposed legislation, to the legislature no later than December 1, 2022.
SECTION 6. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.
SECTION 7. If any provision of this Act, or the application thereof to any person or circumstance, is held invalid, the invalidity does not affect other provisions or applications of the Act that can be given effect without the invalid provision or application, and to this end the provisions of this Act are severable.
SECTION 8. In codifying the new sections added by
section 2 of this Act, the revisor of statutes shall substitute appropriate section
numbers for the letters used in designating the new sections in this Act.
SECTION 9. New statutory material is underscored.
SECTION 10. This Act shall take effect on July 1, 2020.
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INTRODUCED BY: |
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Report Title:
Hydrofluorocarbons; Greenhouse Gas Emissions; Phase Out; Procurement; Procurement Policy Board; DOH; State Energy Office; Study
Description:
Preserves preexisting federal regulations on the use of hydrofluorocarbons in state law by phasing out those compounds in favor of alternatives with lower global warming potential. Establishes a preference in state procurement for products that do not contain hydrofluorocarbons. Directs the Department of Health and the State Energy Office to study how to increase the use of refrigerants with low global warming potential, reduce the use of hydrofluorocarbons, and recommend how to fund, structure, and prioritize a state program that supports the elimination of legacy uses of hydrofluorocarbons.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
