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R-22 Refrigerant

As a business owner it is important to know that there is a law gradually phasing out the production and import of R-22 Refrigerant by 2020. The EPA sets the amount of allowable R-22 each year with a gradual decrease from the previous. As of January 1, 2012 the EPA had not made a final decision in the amount of R-22 that can be manufactured, deeming its production technically illegal. This has driven up the price of R-22 significantly. Some areas have seen an increase of 200%. If the EPA expects a long delay in making their allocation decisions they will probably release a “no enforcement” letter that will allow producers to operate based on the original allocations until the final rule is released, which will create a small reduction in pricing. Once the EPA makes their final decision we expect a further drop in the price of R-22. However, we do not expect the prices to lower to the rate they were previously. Because of the phase-out of R-22 prices will continue to rise over the next 8 years. The EPA is using this phase-out to encourage companies to invest in newer, energy efficient equipment. If you have any questions about your equipment or R-22 Refrigerant please give us a call.