SR-510-007
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Council Meeting: February 13, 1990
Santa Monica, California
FEB 2 0 1990
TO:
Mayor and City Council
FROM:
City Staff
SUBJECT:
Recommendation to Direct the City Attorney to Prepare
an Ordinance Which Requires the Phasing Out or
Recycling of Ozone-Depleting Compounds
INTRODUCTION
This report recommends that City Council direct the City Attorney
to prepare an ordinance to either prohibit the manufacture,
distribution, sale and use of ozone-depleting compounds or require
the use of an approved recycling system. This report outlines the
various impacts of such an ordinance on the general community.
:S.A.CKGROUND
International scientific studies show a worsening of global ozone
depletion. It has now been proven conclusively that
chlorofluorocarbons (CFCs) are the primary cause of this ozone
depletion. The ozone layer shields the earth from excessive
ultraviolet radiation. Such radiation can cause skin cancer, eye
cataracts, and depression of the immune system in humans, as well
as damage to food crops and disruption to the ecosystem. The
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United States currently produces 720 million pounds of CFCs per
year. California contributes nearly 130 million pounds, or
approximately 5 percent of total global emissions.
CFCs are widely used in applications that include commercial and
home refrigeration, blowing of foam for furniture and other uses,
cleaning of electronic circuit boards, manufacture of building
insulation, sterilization of hospital instruments, and other
applications. In the United States, the use of CFCs in aerosol
sprays was banned in the late 1970s when damage to stratospheric
ozone first became apparent. Also, the chemical industry has
achieved about a 95 percent phase out of CFCs from polystyrene
(styrofoam) products.
The chemical stability which makes CFCs so useful in the
manufacture of many products also enables them to drift unaltered
to the upper atmosphere. As they rise through the stratosphere's
protective ozone shield, a process which can take many years, the
CFC molecules begin to break down. Each individual CFC molecule
is capable of destroying up to 100,000 ozone molecules. In fact,
CFCs are so long-lived that molecules released into the atmosphere
today will continue to pose a threat to the earth's protective
ozone shield for well over the next 100 years. An immediate and
complete worldwide cessation of ozone production would therefore
do nothing to stop the continuing destruction of the ozone shield
by CFCs already released into the atmosphere.
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CFCs are also a significant contributor to the greenhouse effect
which causes global warming. The ozone layer helps to regulate
the earth's temperature by absorbing waves of infrared energy
leaving the earth which assists in the reflection of the sun's
ultraviolet rays. A 5 percent ozone loss is equivalent to a 10 to
15 percent increase in ultraviolet light reaching the earth's
surface. In July, 1989, a draft study released by N.A.S.A.
researchers estimated that one-quarter of the man-made emissions
contributing to the greenhouse effect are CFCs and related gases.
The study claims that if CFC production had not slowed in the mid-
1970s, emissions of CFCs would now count for more than one-half of
man-made emissions contributing to the greenhouse effect. The
study concluded that the greenhouse effect may be slowed by
reducing CFC releases into the atmosphere under the provisions of
the Montreal Protocol, but it is impossible to specify precisely
to what extent because the substitutes for CFCs may also
contribute to the greenhouse effect.
The Montreal Protocol, a 31 nation agreement which regulates
worldwide production of ozone-destroying chlorofluorocarbons
{CFCs} and halons, took effect on January 1, 1989. Through staged
reductions ending in 1999, participating developed nations,
including the United States, have pledged to reduce their CFC and
halon production by 50 percent from 1986 levels. Significant
exemptions were granted, however, to developing nations and the
Soviet Union in order for the agreement to be reached. An
analysis by the U.S. Office of Technology Assessment has
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determined that with the exemptions included in the adopted
Montreal Protocol, only a 15-35 percent cut in worldwide CFC use
will be achieved by 1999.
In November, 1989, the U.S. Congress passed a law imposing a
special tax on producers, users, and importers of all ozone-
depleting chemicals currently controlled by the Montreal Protocol.
The amount of tax varies according to how destructive the chemical
is to ozone, but certain categories of industry/manufacturing were
exempted from the provisions. The tax is expected to raise $4.5
billion during the next 5 years. In addition to the tax, the
Senate Environment and Public Works Committee passed an amendment
to the Clean Air Act which will phase out CFCs, halon, and carbon
tetrachloride by the year 2000 and require mandatory recycling at
auto service stations. The amendment comes before Congress in
February during deliberations in the House and Senate on the Clean
Air Act. At this time, the proposed amendment before Congress is
not ensured of passage during this session, and the proposed
restrictions may b~ weakened prior to final action.
DISCUSSION
Although the Montreal Protocol attempts to protect the earth's
atmosphere through international agreement and cooperation, the
very long phase-out period and the exemptions granted to both
developed and less developed nations severely diminishes the
Protocol's effectiveness. As a municipality, Santa Monica is able
to adopt direct restrictions on local CFC users and provide a
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meaningful level of enforcement. Although the impact of the
City1s ordinance would not be of great significance relative to
the total amount of CFCs being released into the atmosphere, such
an action would playa positive role in forging a solution to the
problem since Santa Monica can serve as a catalyst for other
municipalities which are considering similar legislation. Local
action in California also frequently prompts action in the State
legislature, and the federal government is often strongly
influenced by the environmental leadership provided by California.
California's Hazardous Materials Inventory Law is one example of
State legislation which was later used as a model for federal
legislation.
Many cities throughout the United States have either implemented
or are considering restrictions on CFC use. The cities of Irvine,
California, and Newark, New Jersey have already passed ordinances
restricting almost all CFC uses. The City of Palo Alto,
California has passed an ordinance requiring automobile air
conditioning repair shops to capture and recycle CFC compounds
beginning July, 1990. Proposed restrictions in numerous other
cities, including the City of Los Angeles, are currently in
various stages of development or review.
The Southern California Air Quality Management District has also
initiated a series of public hearings to gather input from other
public agencies on the establishment of a regional CFC policy to
be enforced by the SCAQMD. The first component of this policy, a
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requirement for mobile air conditioning recycling, could be in
effect sometime in 1991, at the earliest. The remaining
components of the proposed policy dealing with other CFC uses
would not be effective until 1997. The City of Santa Monica,
therefore, is presented with the opportunity to assume a
leadership role along with the City of Irvine in taking strong
action in defense of the earth's protective ozone layer.
CFC Problem in Santa Monica
Staff has compiled a list of 44 Santa Monica businesses which have
officially reported their use of CFCs or halons. This data has
been submitted to the Toxic Chemical Coordinator through the toxic
disclosure requirements contained in Santa Monica's Hazardous
Materials Emergency Release Response and Inventory Ordinance. The
total volume of CFC materials used by Santa Monica businesses in
1988 was 11,423 gallons. Of the 44 listed businesses, 60 percent
are in the automobile repair and maintenance category. These
businesses used 5,373 gallons of freon for recharging mobile air
conditioners in 1988. Probably one-half of this amount was vented
into the atmosphere during the course of the year from servicing.
Most of the remaining 40 percent of businesses using CFCs are
manufacturing or production facilities using CFCs for solvents.
Vehicle Air Conditioning
The release of CFCs by automobile repair and maintenance
businesses which perform work on auto air conditioning units can
be largely eliminated through the use of recycling and recovery
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systems, also known as "vampires." It is therefore proposed that
all automotive repair and maintenance establishments which service
vehicle air conditioners be required to either install these
systems by January 1, 1991 or cease their use of CFCs.
These recycling systems currently range in price from $2,000 to
$7,000. Cost analyses performed by the City of Irvine showed the
cost of purchasing a "vampire" system could be recouped by a
business within two years if the price of freon remained at $1 per
pound. Implementation of the federal surtax in 1990, however,
will tax CFCs at a base rate of $1.37 per pound and increase over
time. Recycling of CFCs, therefore, has now become the most cost-
effective method of doing business. It is proposed that the sale
of ozone-depleting compounds used as coolants in automobile air
conditioning systems be prohibited unless the purchaser can
provide proof of possession of a recycling system.
Retail sale of freon in aerosol cannisters for replenishment of
vehicle air conditioners and refrigerators is also proposed to be
prohibited to effectively discourage freon discharges by residents
who repair their own vehicles and appliances. The January 1, 1991
implementation date allows sufficient time for retailers to sell
their existing inventory of these products.
Refrigerators and Stationary Air Conditioners
Recycling systems for refrigerators and air conditioners are
currently in development, but several problems must be solved
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before these recycling systems are readily available to
refrigeration and air conditioning maintenance contractors. It is
anticipated that such recycling systems will be available for
purchase prior to the proposed effective date for this provision
of the ordinance. Problems which remain to be solved relate to
the required higher purity standards of recycled freon used in
refrigerators and the development of off-site recycling and
testing facilities. This proposed ordinance would require
recycling of CFCs from refrigerators, refrigeration systems, and
stationary air conditioning systems by January 1, 1992. Sale of
ozone-depleting compounds used as coolants in refrigeration and/or
air conditioning systems would also be prohibited by January 1,
1991 unless the purchaser can provide proof of possession of a
recycling system.
CFC Manufacturing Uses
By January 1, 1992, it is proposed that no other establishments be
allowed to manufacture, sell, or distribute products which use or
contain ozone-depleting compounds. Those Santa Monica businesses
which currently use these compounds are typically relying on them
as solvents in the production of other products. Alternatives to
the use of CFC solvents are either currently available or will be
available for Santa Monica businesses by January 1, 1992. Given
the new federal surtax on CFCs and the changing political climate
of CFC restrictions, it is anticipated that CFC alternatives will
be more cost-effective than the CFC compounds currently used. CFCs
are also frequently present in building insulation products,
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certain types of foam packaging, and other foam products. All of
these uses would be prohibited by the stated effective date.
Those businesses which are absolutely unable to obtain non-CFC
substitutes for essential parts of their production process would
be eligible to submit an exemption application for review by the
City's Environmental Programs Administrator.
Ha10n Fire Extinguishing Syst~m~
Halon-based fire extinguishing systems are primarily used to
protect electrical and electronic equipment since halon is clean
and leaves no residue. Currently, there is no non-halon-based
fire extinguishing substance available for these types of
applications. City Hall has halon-containing fire extinguishing
systems in the telephone switching room and computer room.
Presently, halon recycling equipment for these systems is not
available. It is anticipated, however, that halon recycling
systems will be available by January 1, 1992. Under the proposed
ordinance, any establishment that repairs, services, or performs
maintenance on any halon-based fire extinguishing system or unit
will be required to recapture and recycle all halon by January 1,
1992.
When a halon system is installed in Santa Monica, the Fire
Department must test the system for effectiveness and ensure the
proper training of on-site personnel. Presently, this testing
process involves the release of halon into the space(s) to be
protected. It is anticipated that new technology for halon system
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testing which does not require the release of halon will be
available within the next year. It is therefore proposed that the
ordinance prohibit the release of halon during the testing of
halon-based fire extinguishing systems as soon as it is determined
by the City of Santa Monica Fire Department that an alternative
testing technology is available.
Other CFC Issues
Certain disposal practices which contribute to the ozone depletion
problem such as the disposal of refrigerators and air conditioning
units or systems, and the disposal of building insulation and
certain types of foam products are not restricted in the proposed
ordinance. This is due to the fact that City enforcement against
these disposal practices is either not possible or would be
ineffective. Staff will continue to monitor technological
developments pertaining to disposal issues and will recommend
additional Council action at such time as it becomes feasible to
do so.
Portable halon fire extinguishers are also not affected by this
proposed ordinance as the Federal Aviation Administration
currently requires such extinguishers be carried on every
commercial aviation flight. The proposed ordinance would also
include exemptions for CFC research into alternative technologies,
and the use of CFCs by hospitals, health care facilities, and
medical drug manufacturers.
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Potential Business Impacts from the Proposed Ordinance
Copies of this staff report have been distributed to the Chamber
of Commerce and the largest single CFC user in the City, Gillette
Corporation. One of the concerns which has been raised by the
business community is the potential impact of this proposed
ordinance on small mobile or stationary air conditioning
maintenance/repair businesses. The proposed recycling
requirements for these businesses would involve an initial
investment in recycling equipment of $2,000-$7,000. This could
represent a substantial initial financial burden for a small
business. However, CFC recycling is becoming increasingly cost-
effective even for smaller businesses. The estimated payback
period for this recycling equipment will become even more
compressed as the federal tax on CFCs increases and when pending
state and federal legislation is enacted.
SUMMARY
Although recycling can significantly reduce CFC emissions, a
complete phaseout of ozone-depleting compounds is the only
permanent means to slow the destruction of the protective ozone
layer. Scientists are actively searching for environmentally-safe
substitutes for ozone-depleting compounds as well as safe disposal
methods and more effective recycling systems. Santa Monica's
proposed ordinance would require the implementation of the
strongest and most effective CFC mitigation measures. As new CFC
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substitutes, safe disposal methods, or improved recycling systems
become available in the future, staff will recommend any revisions
to the proposed ordinance which may be necessary.
In summary, the ordinance proposed in this report will include the
following restrictions on ozone-depleting compounds to be
effective January 1, 1991 or January 1, 1992:
1. Require businesses servicing mobile air conditioners to use
CFC recycling and recovery units on January 1, 1991;
2. Prohibit the sale of freon in aerosol cannisters on January 1,
1991;
3. Require the use of CFC recycling equipment by refrigeration
and air conditioning maintenance contractors and repair businesses
by January 1, 1992;
4. Prohibit the use, manufacture, sale, or distribution of
products which use or contain ozone-depleting compounds by January
1, 1992;
5. Prohibit Santa Monica businesses that sell or service halon-
containing fire extinguishing systems from using testing methods
on newly-installed systems which release halon once effective
recycling systems are available;
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6. Lobby state and federal elected officials to support enactment
of legislation prohibiting or effectively controlling CFC use in
all applications.
FISCAL IMPACT
There is no fiscal/budget impact anticipated for FY 1989-90.
Potential costs associated with enforcement of the ordinance in
FY1990-91 are not anticipated to be significant but will be
evaluated and considered as a part of budget preparation for the
1990-91 fiscal year. The costs impacts from the proposed
restrictions which would be effective in 1992 will be evaluated as
a part of budget preparation for fiscal year 1991-92.
RECOMMENDATIONS
It is respectfully recommended that the City Council direct the
City Attorney to prepare an ordinance to require the phasing out
or recycling of ozone-depleting compounds as described in this
report.
Prepared by: Stan Scholl, Director of General Services
Craig Perkins, Administrative Services Manager
Susan Munves, Administrative Analyst
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