Building Owners
Save Money,
Save the Earth
Replace Your CFC
Air Conditioning Chiller




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The Montreal Protocol and Industry Leadership

By the 1980s, scientists had concluded that chlorofluorocarbons (CFCs) were
destroying the fragile ozone layer, and the United Nations Environment Programme
had begun diplomatic negotiations. Deciding that international action was needed
to protect the ozone layer, which shields the earth from the harmful effects of over-
exposure to ultraviolet radiation, negotiators from governments around the world
crafted a treaty in 1987  called The Montreal
Protocol on Substances that Deplete the
Ozone Layer. The Montreal Protocol provid-
ed the first global controls on CFCs and
halon fire fighting chemicals. In the decade
that followed, the Montreal Protocol was
made more stringent by amendments and
adjustments as mounting scientific evidence
and space observations  proved that stratos-
pheric ozone depletion  and the Antarctic
ozone hole in particular, were caused by
emissions of manufactured chemicals. It was
also discovered that ozone depletion was
occurring over Europe and North America.
Since 1987, more than 180 countries have
ratified the Montreal Protocol.
Fortunately, industry leadership and innova-
tion, combined with prudent environmental
regulations, facilitated the development of
new refrigerants that perform as well or bet-
ter in new equipment than the ozone-deplet-
ing chemicals they replaced. Industrialized
countries have used a combination of volun-
tary, regulatory, and economic measures to
encourage the development and use of new
technology, to encourage retrofitting to more
environmentally acceptable refrigerants, and
to encourage improved containment  and
recovery practices for all refrigerants.
Hydrochlorofluorocarbon (HCFC) and hydro-
fluorocarbon (HFC) chillers are used for new
construction and for retrofit or replacement
of equipment with CFC-11  and CFC-12
refrigerants. Now is the time to evaluate and
schedule a chiller replacement.
Responsible Use
Governments, industries, con-
sumers, and environmental organ-
izations worldwide are endorsing
the concept of "Responsible Use"
of refrigerants. The Responsible
Use principles for building air
conditioning are:

   * Select the refrigerant and air
     conditioning chiller for each
     building application that pro-
     vides the highest health and
     safety, environmental, techni-
     cal, economic, and other
     unique societal benefits.

   * Minimize emissions to the
     lowest practical level  during
     manufacture of the refriger-
     ant and equipment, and dur-
     ing use and disposal of the
     equipment, using cost-effec-
     tive technology.
   * Design and operate chiller
     plants to maximize Life-
     Cycle Climate Performance
     (LCCP), minimizing the com-
     bined emissions of refrigerant
     from the air conditioning
     chiller and greenhouse gases
     from the production of power
     for the chiller.

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Imagine the satisfaction of earning a high financial return on your
investment while increasing building comfort and air quality and
protecting the environment...
The
Building Air
Conditioning
Climate
Protection
Partnership—
The Key to
Total Building
Performance
       Air conditioning cools air
       in homes, vehicles, and
       workplaces—keeping
occupants comfortable and
more productive, also helping
communities in hot and humid
climates to grow and prosper.

Innovative building technolo-
gies are now available. Modern
lighting uses less than half the
energy of older lighting. New
window designs let in light but
not heat and glare, and building
control systems integrate com-
fort, safety, and security. New
building air conditioning sys-
tems cut  cooling costs by half
or more and eliminate chloro-
fluorocarbon (CFG) chemicals,
which destroy the ozone layer.
Yet the potential of these effi-
cient technologies is not always
realized in older buildings or
even in some new construction!

To help achieve that energy
efficiency, a new industry-gov-
ernment partnership is promot-
ing the replacement of CFG
building air conditioning
chillers. In the United States,
the partnership is part of the
ENERGY STAR® systems
approach. In other countries,
industry and government
authorities are spearheading
programs promoting building
energy efficiency.

The partnership is also promot-
ing integrated chiller retrofits.
This approach incorporates
other investment into the
chiller replacement such as
retrofitting lighting systems,
window and insulation
upgrades, and replacing old
office machines. This reduces
the cooling load thereby allow-
ing the use of smaller, highly
efficient air conditioning sys-
tems without the use of CFCs.
Integration of components and
controls using systems analysis,
good equipment startup, and
continuous monitoring of ener-
gy efficiency will help ensure
that your building makes a
quantum leap in performance
and value.
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Keep Cool,
Save Money
  Chiller Efficiencies
      R-11.R-12 R-22.R-123,
           andR-134a
      (CFCs) (Alternatives)
 Source: Industry data
A       comfortable work place
       can affect work habits
       and productivity in
positive ways.

Most large commercial, institu-
tional, and industrial buildings
are cooled by machines called
"chillers." The chiller is typical-
ly named after the type of com-
pressor used—centrifugal,
screw, scroll, and reciprocating.
Building chiller systems are
designed to cool and control
humidity to create a comfort-
able and more productive envi-
ronment for tenants.

A new energy-efficient chiller
can easily pay for itself in elec-
tricity savings, improved relia-
bility, and lower maintenance
costs in as little as five years. In
addition, building energy con-
sumption can be significantly
reduced at the time of chiller
replacement through cooling
system improvements (e.g., use
of variable speed drives on fans
and pumps, improved cooling
towers, evaporative coolers, and
improved controls) and cooling
load reductions (e.g., lighting
system retrofits, better insula-
tion, and new windows).
Reducing cooling load  and
improving cooling system effi-
ciency will enable downsizing
of the new chiller, thereby cut-
ting capital cost and increasing
overall operating efficiency.
Comprehensive projects along
these lines are known as "inte-
grated chiller retrofits."
Financing for integrated chiller
retrofits is available from a
number of sources, including
regional or national energy
authorities, electric utilities,
equipment suppliers, and com-
mercial lenders (see pages 8-9).
Building owners around the
world have saved millions of
dollars in electricity bills by
upgrading air conditioning
chiller installations and through
concurrent investments to
reduce building cooling load.
Today's chillers use about one-
third or less electricity com-
pared to those produced just
two decades ago. Building own-
ers can typically pay back the
investment cost of replacing an
old CFG chiller in five years or
less in virtually all locations
that cool for more  than three
months a year. In fact, replace-
ment chillers integrated with
building retrofits can pay for
themselves in as little as two or
three years, with a typical
return on investment of 20% to
35%. Generally, the added cost
of the highest efficiency chillers
is paid back through energy sav-
ings  alone. Today's state-of-the-
art building automation systems
further reduce operating and
maintenance costs by monitor-
ing and controlling everyday
building operations and by noti-
fying managers of small prob-
lems before they become costly
problems.
Save Money, Save the Earth

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Keep Cool,
Save the Earth
N;
       •ew chiller installations
       save money, improve
       occupant comfort, and
protect the global environment.
New energy-efficient chillers
are better for the environment
because they use far less elec-
tricity from the power plants
that supply buildings with
energy, reducing emissions that
contribute to air pollution and
global warming. New energy
efficient chillers  are better for
the stratospheric ozone layer
because they do not use potent
ozone-depleting CFG refriger-
ants—made obsolete by global
treaties  and thus becoming
increasingly scarce and expen-
sive. Because CFG refrigerants
can not be legally produced or
imported for sale in developed
countries, building owners
with obsolete equipment com-
pete for dwindling supplies of
reclaimed CFCs—paying high
prices and risking refrigerant
shortage.

Most centrifugal  chillers manu-
factured before 1995 used CFC-
11, CFC-12, or HCFC-22 refrig-
erants.  Emissions of CFCs and
HCFCs damage stratospheric
ozone.  Countries that have rati-
fied the Montreal Protocol will
halt production of CFCs and
other ozone-depleting sub-
stances. In 1996, developed
countries stopped producing
and importing  CFC refrigerants.
HCFCs are less damaging to the
ozone layer and are considered
important "transitional refriger-
ants" to allow an accelerated
CFC phaseout under the
Montreal Protocol. The
Protocol authorizes HCFC pro-
duction for use in developed
countries in new chillers until
2020 and for service until 2030
and HCFC production for use
in developing countries in
either new equipment or serv-
icing until 2040. After produc-
tion phaseout, HCFCs can be
supplied from reclaimed and
recovered sources.
Older refrigerants, including
hydrocarbons and ammonia,
are making a comeback in some
applications where safety can
be assured. For example,
hydrocarbons are  increasingly
used in small refrigeration and
air conditioning appliances,
and ammonia is gaining market
share in new industrial refriger-
ation applications, such as ice-
making, cold  storage, and dis-
trict cooling.

The most commonly used new
refrigerants for large building
air conditioning applications—
HFC-134a and HCFC-123—are
allowed, approved, or endorsed
for use by Environment
Australia; Environment Canada;
the Japan Ministry of Economy,
Trade and Industry; the Japan
Ministry of the Environment;
the U.S. Environmental
Protection Agency; and most
other environment ministries
worldwide. HFC-134a can
                                                        Save Money, Save the Earth

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                     achieve high energy efficiency
                     and is ozone-safe, but refriger-
                     ant emissions are relatively
                     potent greenhouse gases. HCFC-
                     123 can achieve high energy
                     efficiency and is not a potent
                     greenhouse gas, but does have
                     an ozone-depleting potential,
                     albeit low. Energy efficiency is
                     the main environmental consid-
                     eration in the selection of a
                     chiller as long as the equipment
                     is carefully maintained and
                     refrigerant emissions are kept
                     near zero.

                     Building owners can make a
                     significant contribution to envi-
                     ronmental protection by replac-
                     ing old chillers. Properly moni-
                     tored and maintained, high-effi-
                     ciency HCFC-123 and HFC-
                     134a chillers minimize the
effect of air conditioning sys-
tems on climate change and do
not significantly affect the
ozone layer. By using less elec-
tricity, energy-efficient equip-
ment helps protect the environ-
ment by reducing nitrous
oxides, sulfur dioxide, particu-
late matter, carbon dioxide, and
mercury emissions from power
plants supplying electricity to
the buildings.

Electric utilities sometimes use
their least efficient power
plants for the peak periods of
electricity demand, which is
when chiller loads are usually
highest. Therefore, reduced
electricity use has an even larg-
er benefit for local air quality
and climate protection.
Save Money, Save the Earth

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Which Chiller
Should I
Purchase?
     Several refrigerants are envi-
     ronmentally acceptable.
     However, if you want the
highest environmental perform-
ance, follow the "Responsible Use"
criteria, focusing on the Life-Cycle
Climate Performance (LCCP), not
the refrigerant. LCCP takes into
account the emissions  during the
manufacturing of the refrigerant,
the transportation to the site, during
charging of the chiller,  lifetime leak-
age, and finally during recovery
and disposal. And, very important-
ly, this calculation must include
emissions from the generation  of
electricity to power the chillers and
account for any additional energy
that may be necessary to assure safe
operation. Insist that financial cal-
culations consider both partial and
full-load operation, that the per-
formance of equipment based on
alternate refrigerants is compared,
and that available energy efficiency
options are considered, including
variable speed motor drives, heat
recovery, and free-cooling. Select
the investment with the best LCCP
with emissions minimized.

Small-Scale Screw Chillers
New screw chiller technologies
with high full- and part-load energy
efficiency are replacing existing CFC
centrifugal chillers primarily in the
smaller tonnage ranges. These
chillers are  ideal for buildings with
highly variable daily cooling loads.
These screw chillers use a wide
range of refrigerants including
HCFC-22, HFC-134a, and the HFC
blends R-407C and R-4WA.
Medium- and Large-Scale
Ammonia Chillers
Building owners will want to con-
sider ammonia chillers using screw
compressors where they can safely
achieve higher energy efficiency.
Emissions of ammonia refrigerants
are ozone- and climate-safe, but
because ammonia is toxic and
moderately flammable, safety pre-
cautions are necessary. Ammonia
is particularly attractive if higher
efficiencies can be achieved for
new installations involving ice-
making, commercial refrigeration,
cold storage warehouses, and in
district cooling applications.

Large-Scale HCFC-123 and HFC-
134a Centrifugal Chillers
For centrifugal chillers, choose
either HCFC or HFC chillers with
the highest cost-effective  energy
efficiency, and focus on maintain-
ing the equipment's peak perform-
ance and minimal refrigerant
emissions. Any refrigerant is
environmentally safe as long as
it is never emitted, and all refriger-
ants require careful handling
to  avoid worker  exposure. By
retrofitting or replacing chillers,
emissions can be substantially
reduced or eliminated. The goal
of near-zero refrigerant emissions
is possible with new equipment,
modern refrigerant monitoring
technology, and  a proper mainte-
nance program. Computerized
controls and building automation
systems can cost-effectively sus-
tain and document the perform-
ance of the chiller plant.
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Will Ammonia,
HCFC, and HFC
Refrigerants
Be Available
For the Life
of the Air
Conditioning
Equipment?
      The use of ammonia as a
      refrigerant is not restrict-
      ed by international
treaties, although it may be sub-
ject to national or local codes
for building safety. Ammonia is
among the oldest industrial
chemicals, and with continuous
improvements in chiller design
and maintenance, there is
little likelihood of additional
environmental controls.

HCFCs are controlled by the
Montreal Protocol. Developed
countries are allowed to pro-
duce HCFCs for new equipment
until 2020 and for service until
2030. Some developed coun-
tries plan to stop HCFC-22 pro-
duction for new air condition-
ing equipment by 2010 and pro-
duction for service by 2020.
Adequate quantities of HCFC
refrigerants can be supplied for
the economic life of equipment
Refrigerant Ozone Depletion Potential (ODP)
REFRIGERANT
CFC-11
CFC-12
HCFC-22
HCFC-123
HFC-134a
Montreal
Protocol ODP
1.0 (index)
1.0
0.055
0.02
0.0
R-407C (HFC blend) 0.0
R-410A (HFC blend) 0.0
WMO Model 100-Year
ODP GWP
0.82
0.90
0.034
0.012
<0.000015
<0.0004
<0. 00003
4600
10,600
1700
120
1300
1700
2000
Source: Montreal Protocol Science Assessment of Ozone Depletion: 1998, 2002
Intergovernmental Panel on Climate Change Third Assessment Report and the
Handbook for the International Treaties for the Protection of the Ozone Layer,
2000 edition. Note that the Montreal Protocol ODPs were officially established
in 1992 and may be reviewed and revised periodically. The 2002 Scientific
Assessment presents the WMO (1999) Model results as above (the ODPs for
MFCs are upper limits).
by recycling and stockpiling.
HCFC-22 is a high-pressure gas
with a Montreal Protocol ozone
depletion potential (ODP) of
0.055 and a global warming
potential (GWP) of 1700. HCFC-
123 is a low-pressure gas with a
Montreal Protocol ODP of 0.02
and a GWP of 120.

HFC emissions have lower GWPs
and less impact on climate
change than the CFCs they
replace but are included in the
basket of greenhouse gases.
Some countries, including the
United States,  will use voluntary
measures to encourage energy
efficiency and to minimize HFC
emissions. Other countries plan
to more directly restrict HFC use
and emissions. HFC blends,
including R-407C and R-410A,
are often selected to optimize the
energy performance of specific
air conditioning systems and par-
ticular sizes. HFC blends have
zero ODP and  a GWP that
depends on the exact composi-
tion.

The most uncertain choice is to
continue the use of energy-
intensive equipment using CFC
refrigerants. One year of refriger-
ant and power plant emissions
from old CFC  equipment with
high leak rates results in greater
direct harm to the ozone layer
and climate than 30 years' oper-
ation of new equipment using
HFC-134a or HCFC-123. The
most energy-efficient new
chillers will reduce electric gen-
Save Money, Save the Earth


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Market
Incentives
for Chiller
Replacement
eration and associated green-
house gas emissions by up to
50% or more compared to the
CFG chillers they replace.
Leaking CFG equipment fre-
quently operates undercharged,
requiring additional energy to
achieve the same cooling. Now
is the time to retrofit or replace.

   "\ elying on obsolete  CFC
 r^ chillers might end up
-1. ^.costing building owners
and tenants more than they
bargained for. Replacing  an old
chiller can be an owner's best
investment. Here's why:
   * Building owners and man-
     agers who use  obsolete
     CFC equipment will have
     to compete  for dwindling
     supplies of  reclaimed
     refrigerants  and parts—
     paying high prices and
     risking refrigerant shortage.
Rate of Return vs. Risk
for New Chillers and Building Energy Upgrades
Average Annual Return
_L M CO f,
o o o o o
5? 5? 5? 5? 5?

Chiller Repla
Building Ene


U.S. T-Bills
O
cement and
rgy Upgrade

Long-Term
Corporate
B-nj-lc
0


UIIIIIIUII
Stocks
O

Small
Company
Stocks
O


0% 10% 20% 30% 40%
Risk Index (Year-to-Year Volatility)

* Savings from electricity
  costs alone pay back the
  investment at high rates
  of return—even with low
  energy prices.
* A new, efficient chiller
  installation—with better
  building controls, high-effi-
  ciency auxiliary equipment,
  efficient lights, and other
  building and office equip-
  ment upgrades—protects
  owners from electricity
  price fluctuations and short-
  ages. Lower cooling costs
  increase the resale and
  rental value of the building.

* Companies that use newer
  and more efficient tech-
  nologies demonstrate
  environmental leadership
  in their communities,
  enhance company reputa-
  tion, and have even earned
  accolades from public and
  private authorities.
                                                              Price of CFC-12
                                                      fe
                                                      D)
                                                      _O
                                                      Q)
                                                      a.
                                                      0)
                                                      o
                                                          $100
                                      $80
                                      $40
                                                           $20
                                                                             $94
                                                                        $55
                                                                    $18
                                                               $2
                                                              1990  1993  1998  2000
                                                          Save Money, Save the Earth

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Tools and
Information
     Equipment suppliers, gov-
     ernments, utilities, and
     others are cooperating
with building owners and ten-
ants to help save money while
protecting the environment.
Available resources include:
   * EPA ENERGY STAR®
    Buildings.
    www. energystar. go v
    ENERGY STAR® leads you to
    a results-oriented energy
    management approach
    that produces twice the
    savings for your bottom
    line and the environment
    than the typical strategy.
    EPA offers tools that rate
    whole building energy
    performance. Technical
    guidance focuses on prop-
    er equipment sizing,
    design, and mechanical
    system integration that
    match your building's load
    requirements. ENERGY
    STAR® offers public recog-
    nition for buildings that
    achieve the best results.
* UNEP DTIE's OzonAction
  Programme.
  www.uneptie.org and
  www.earthprint.com
  In partnership with the Air-
  Conditioning and Refrig-
  eration Institute (ARI),
  OzonAction conducted
  training sessions on refrig-
  erant management in the
  chiller sector in three major
  cities in developing coun-
  tries—Bangkok, Bahrain,
  and Jakarta—and offers
  jointly developed manuals
  to assist building owners.
* BOMA—The Building
  Owners and Managers
  Association International
  www.boma.org
  Representing more than
  8.5 billion square feet of
  office space in North
  America alone, BOMA
  offers research, perform-
  ance data, publications,
  and services.
         .'                 •
Save Money, Save the Earth

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O B'
* ARI—Air-Conditioning
  and Refrigeration
  Institute
  www.ari.org
  Software from equipment
  suppliers and others helps
  designers maximize ener-
  gy and cost savings. Ask
  your chiller supplier to
  recommend cost-cutting
  upgrades.
* Chiller Suppliers
  Contact suppliers through
  ARI or at individual web-
  sites:

  • API Ketena -
    www.apiketena.com
  • Carrier -
    www. carrier, com
  • Daikin -
    www.daikin.com
  • Dunham-Bush -
    www. dunham-
    bush.com
  • Edwards Engineering -
    www.edwards-eng.com
  • Lennox  (Europe) -
    www. lennoxeurop e. com
  • McQuay -
    www.mcquay.com
  • Mitsubishi Heavy
    Industries -
    www.mhi.co.jp
  • RAE Corporation -
    www.rae-corp.com
  • Trane -  www.trane.com
  • York-www.york.com
                                        * ASHRAE—American
                                          Society of Heating,
                                          Refrigerating and Air-
                                          Conditioning Engineers
                                          www.ashrae.org
                                          With over 50,000 members
                                          worldwide, ASHRAE
                                          advances air conditioning
                                          and related sciences
                                          through research, standards
                                          writing, continuing educa-
                                          tion, and publications.
More Opportunities to
Save Money
When replacing a CFC
chiller, building owners and
tenants can take additional
steps to save money and
help protect the environ-
ment. Design engineers can
identify more ways to save
energy by conducting an
overall energy performance
review. The entire air condi-
tioning system can be
improved by using more
efficient fans, pumps, cool-
ing towers, and system con-
trols, and by reducing cool-
ing loads with more effi-
cient lighting and better
insulation. With integrated
new systems, owners can
downsize equipment, cut-
ting both capital and operat-
ing costs  and increasing the
return on their investment.
                                          Save Money, Save the Earth

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Supporting
Organizations
 EPA-430-F-02-026

 December 2002

 Global Programs Division
 (6205J) and Climate
 Protection Partnerships
 Division (6202J)

 www.epa.gov/ozone/

 www.energystar.gov/
* United Nations and World Bank
  • United Nations Development Programme
  • United Nations Environment Programme
  • The World Bank
* National Governments and Regional Authorities
  • Australian Greenhouse Office
  • Environment Canada
  • Industry Canada
  • Japan Ministry of Economy, Trade and Industry
  • Japan Ministry of the Environment
  • Singapore Ministry of the Environment
  • Thailand, Department of Industrial Works, Ministry of Industry
  • U.S. Environmental Protection Agency
  • Vietnam National Office for Climate Change and Ozone Protection
*Air Conditioning Equipment Manufacturers
  • Carrier
  • Daikin
  • Lennox (Europe]
  • McQuay
  • Mitsubishi Heavy Industries
  • Toshiba-Carrier
  • Trane
  • Turbocor
  • York
* Energy and Supply Companies
  • Cryo-Line Supplies
  • Exelon Services
  • McKenney's Mechanical Contractors and Engineers
  • Pacific Gas and Electric Company
* Industry and Environmental Non-Governmental Organizations
  • Air-Conditioning and Refrigeration Institute
  • Alliance for Responsible Atmospheric Policy
  • Alliance to Save Energy
  • Americans for an Energy Efficient Economy
  • Australian Fluorocarbon Council
  • China Building Research Institute
  • Ecole des Mines de Paris Center for Energy Studies
  • Friends of the Earth
  • Heating/Piping/Air Conditioning Engineering Magazine
  • Heating, Refrigeration and Air Conditioning Institute of Canada
  • Industrial Technology Research Institute
  • International Climate Change Partnership
  • Japan Industrial Conference  for Ozone Layer Protection
  • Japan Refrigeration and Air Conditioning Industry Association
  • Natural Resources Defense Council

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