SENATE BUDGET AND APPROPRIATIONS COMMITTEE
ASSEMBLY, No. 5583
with committee amendments
STATE OF NEW JERSEY
DATED: JANUARY 9, 2020
The Senate Budget and Appropriations Committee reports favorably Assembly Bill No. 5583 (1R), with committee amendments.
As amended and reported, this bill would prohibit a person from offering any product or equipment for sale, lease, or rent, or installing or otherwise causing to enter into commerce in the State certain restricted equipment or products that consist of, use, or will use as a substitute, hydrofluorocarbons (HFCs), or other similar substances, in accordance with timeframes established in the bill. The bill, as amended, would establish the following effective dates for the restrictions:
· July 1, 2020, for: propellants; rigid polyurethane applications and spray foam, flexible polyurethane, integral skin polyurethane, flexible polyurethane foam, polystyrene extruded sheet, polyolefin, and phenolic insulation board and bunstock; and supermarket systems, remote condensing units, and stand-alone units;
· January 1, 2021, for: refrigerated food processing and dispensing equipment; compact residential consumer refrigeration products; and polystyrene extruded boardstock and billet, and rigid polyurethane low-pressure two component spray foam;
· January 1, 2022, for: residential consumer refrigeration products other than compact and built-in residential consumer refrigeration products; and vending machines;
· January 1, 2023, for: cold storage warehouses; and built-in residential consumer refrigeration products; and
· January 1, 2024, for centrifugal chillers and positive displacement chillers.
In addition, for all other applications and end uses for substitutes not covered by the categories listed above, the effective date of the restrictions would be either July 1, 2020, or the effective date of the restrictions identified in Appendix U and Appendix V of Subpart G of 40 C.F.R. Part 82, as those appendices read on January 3, 2017, whichever is later.
The bill would require every manufacturer to disclose the HFCs and substitutes used in its products or equipment in a form and manner as determined by the Department of Environmental Protection (DEP) pursuant to rules and regulations, which may take the form of a model rule established by the United States Climate Alliance. Until such time as the DEP adopts disclosure rules, a manufacturer would be required to use labeling that provides sufficient disclosure of the use of substitutes in the product or equipment.
Except where existing equipment is retrofitted, a person would be permitted to continue using a product or equipment that was manufactured prior to the effective date of a restriction. A product or equipment manufactured prior to the applicable effective date of the restriction specified in the bill could be sold, imported, exported, distributed, installed, and used after the effective date. Additionally, the bill provides that nothing in the act shall be construed to impose liability on news media that accepts or publishes advertising for any equipment or product that is otherwise prohibited under the bill.
Under the bill, no later than one year after enactment by another state of restrictions on substitutes for new light duty vehicles, the DEP would be authorized to 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 of Subpart G of 40 C.F.R. Part 82, as that appendix read on January 3, 2017. If the United States Environmental Protection Agency (EPA) approves a previously prohibited HFC blend with a global warming potential of 750 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 established pursuant to the federal “Clean Air Act,” the DEP would be authorized to propose a rule to conform the restrictions established under the bill to the federal action.
In addition, the bill would require the DEP, no later than December 1, 2020, to prepare and submit to the Governor and the Legislature a report providing recommendations on how to increase the use of substitutes for HFCs that reduce overall risk to human health and the environment in mobile sources, utility equipment, and consumer appliances, and how to reduce other uses of HFCs in the State, including recommendations, if deemed appropriate, concerning how to structure, fund, and prioritize a State incentive program to reduce uses of HFCs in the State.
Finally, the bill would
require the Commissioner of Community Affairs to adopt a list of approved uses
for substitutes as part of the State Uniform Construction Code. Items on the
list would be required to be either: (1) approved by the EPA pursuant to the
federal "Significant New Alternatives Policy" program and approved by
the DEP; or (2) approved by the DEP pursuant to this bill.
The committee amendments to the bill add a new section requiring the Commissioner of Community Affairs to adopt a list of approved uses for substitutes as part of the State Uniform Construction Code.
The Office of Legislative Services (OLS) estimates that the bill will result in marginal State expenditure increase arising from new administrative responsibilities for the Department of Environmental Protection (DEP) related to preparing and submitting a report to the Governor and the Legislature. However, the OLS notes that in lieu of submitting a separate report, the DEP may include the required information in the “Global Warming Response Act” report.
The OLS estimates that the bill will increase annual State revenue collections by an indeterminate amount from the assessment of civil administrative penalties.