STATE OF THE INDUSTRY REPORT 4TH EDITION
JANUARY
2021
STATE OF THE INDUSTRY 4TH EDITION - JANUARY 2021
CONTRIBUTORS Special thanks to all those who contributed to the State of the Industry Report. Stephanie Smith, PE – Risk Management Professionals Beth Fox – EVAPCO Natasha Arnold – Industrial Refrigeration Service, Inc. Melissa Cassell – General Refrigeration Company Kristen De La Pena – GCAP, LLC (Garden City Ammonia Program) Clark Jackson – Gray Construction Eileen McKeown – IIAR Eric Ramon – Cool Refrigeration Systems & Solutions Dave Schaefer – Bassett Mechanical Chair of the IIAR Board of Directors Werner Paulus – Refrigeration Design & Service Inc.
Agencies Greg Bazley, US EPA, Region 9
STATE OF THE INDUSTRY 4TH EDITION - JANUARY 2021
Table of Contents 4 | Abstract 4 | Preface 6 | Introduction 7 | Industry Composition 8 | Natural Refrigerants for a Sustainable Future 8 | Inspections 14 | Regulatory and Standards Update 15 | Low-Charge Ammonia Systems 16 | Challenges for End Users 18 | Energy Savings with Ammonia Refrigeration Systems 19 | IIAR and Its International Reach 20 | IIAR Educational Resources 21 | The IIAR Suite of Standards 23 | Government Relations Board Update 25 | Where is the Industry Headed? 26 | 2021 Survey Responses 27 | Participate in IIAR Committees 29 | Our Vision and Mission
List of Figures 7 | Figure 1: IIIAR Membership By Category 9 | Figure 2: National Top Overall Chemicals by Region – Provided by USEPA 12 | Figure 3: National Top Toxic Chemicals by Region – Provided by USEPA 13 | Figure 4: National Accident History by Chemical – Provided by USEPA PAGE 3
STATE OF THE INDUSTRY 4TH EDITION - JANUARY 2021
Abstract The 4th Edition of the State of the Industry Report has evolved to include more information from the 2019 and 2020 IIAR Survey questions. In addition, IIAR’s influence on the industry continues to grow as its international relations and guidance provided for other countries’ efforts to establish their own standards continues. Additional information on low-charge ammonia systems is included. The recently formed Energy Sustainability Committee is focused on establishing energy efficient metrics and developing programs to support a number of issues facing end users. As 2021 kicks off a new year, and a new United States presidency, IIAR’s efforts in the government relations sector is even more important. Of note, the United States has recently signed into legislation the American Innovation and Manufacturing (AIM) Act which mandates the draw down of HFCs similar to EU standards. The United States has also ratified the Paris Agreement with the intent to create nationally determined contributions to reduce total US greenhouse gas emissions. All of which directly and greatly impact the refrigeration industry. IIAR has expanded on the challenges for end users in the industry, the state of government relations with IIAR, and the educational resources of IIAR. Continuing in tradition is a preface from the Chair of the 2020-2021 IIAR Board of Directors Dave Schaefer.
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STATE OF THE INDUSTRY 4TH EDITION - JANUARY 2021
Preface This very valuable 4th Edition of the IIAR State of the Industry report is the result of many hours of research and hard work by our Marketing Committee and Staff. Despite the challenges posed by the world-wide pandemic the IIAR’s work continued to meet its stated vision and mission throughout this time as highlighted in this document. Our industry and IIAR meets the criteria of being called “essential’. The data in the report also highlights the ongoing need to continue our focus on safety particularly in the areas of Mechanical Integrity, Process Safety Information, Process Hazard Analysis, and Operating Procedures. This report is an important resource for decision makers considering their facilities and operations regarding safety and compliance issues. In the past year it seems that nothing has been normal. The pandemic has changed how all of us address regulatory compliance and safety requirements. Please consider looking at the IIAR.org COVID-19 webpage for more information on how best to address these two very important industry concerns. I also encourage you take advantage of the Academy of Natural Refrigerants on-line self-paced courses. As our world changes and moves toward the natural refrigerants IIAR is leading the charge with new standards that address best practices for CO2 and Hydrocarbon refrigerants. In fact, you can think of the “A” in IIAR as standing for “All-Natural”! IIAR has been and will continue to work collaboratively with the IRC, RETA, GCCA, ASTI, Eurammon, and other like-minded similar-mission organizations to expand on the safe use of All-Natural Refrigerants. Thank you for your interest in this important work and let this express my gratitude to the IIAR Marketing Committee and Staff for their good work. I would also like to thank all our many volunteers, contributors to the Ammonia Research Foundation, committee chairs, and the IIAR Board of Directors for all their efforts in expanding and making our industry safe as it can be. Best Wishes, Dave Schaefer, P.E. 2020-2021 IIAR Chairman
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STATE OF THE INDUSTRY 4TH EDITION - JANUARY 2021
Introduction Reflecting back on 2020 is going to be emotional for everyone. Within days of the IIAR 2020 Natural Refrigeration Conference & Heavy Equipment Expo, meant to take place March 15 to 19, 2020 in Orlando, Florida, the world stopped. The World Health Organization (WHO) announced the COVID-19 worldwide pandemic on March 11, 2020. News of a novel virus dominated all other headlines as everyone sat, watched and wondered what was next. Companies closed their offices, employees were told to work from home, families were separated by travel bans, and teachers and children were expected to leap into online distance learning without training and, in some cases, without proper IT support. BUT the industrial refrigeration industry (food manufacturing, server farms, and cold storage and distribution) never missed a beat. This industry continued to produce food, stock grocery shelves, manufacture medicines, and maintain working server farms in the spotlight of a crisis. This industry is one of many that kept the country going. As we look forward to 2021, IIAR is stronger than ever. A strong membership and strong community hold this organization and its members together. While our personal and business relationships have been less in-person, it has not diminished our ability to interact. We have adapted and evolved with our circumstances, and as an online presence becomes the norm, business culture will continue to change and evolve and so will the IIAR. Natural refrigerants continue to be the most sought-after refrigerants in the industry globally and have low or no Ozone Depletion Potentials (ODPs) and Global Warming Potentials (GWPs), which makes them environmentally compatible by most standards. The IIAR Green Paper (updated publication in 2019 and discussed below) presents a comparison of refrigerants and the benefits of using natural refrigerants.
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Industry Composition The industrial refrigeration industry is diverse. IIAR has over 2,900 members from over 50 countries around the world. Alliance organizations in Asia Pacific, Europe, Latin America, North America, and Australia make the international outreach very successful. Members of IIAR include design engineers, end users, contractors, students, scientists, and trainers. The chart below shows the distribution of members within IIAR, not included are employees of IIAR and honorary life members. It illustrates that end users, contractors, and manufacturers make up the vast majority of the organization membership. For clarification, “End User 1” refers to members whose inventory is more than 10,000 pounds and “End User 2” refers to members whose inventory is below 10,000 pounds. FIGURE 1: IIAR MEMBERSHIP BY CATEGORY
Academic Affiliate Affiliate International Contractor End User 1 End User 2 Engineer Manufacturer Manufacturer Rep Other Retired Student Wholesaler
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Natural Refrigerants for a Sustainable Future In January 2019, IIAR Green Paper “Natural Refrigerants for a Sustainable Future” was published, spear-headed by the IIAR Marketing Committee and updated to reflect the current nature of the industrial refrigeration industry and emerging refrigerants. The paper gives a brief overview of the industry and discusses the benefits of ammonia, carbon dioxide, and other natural refrigerants over synthesized refrigerants. This paper will continue to be a resource for IIAR members and updated periodically for the benefit of the members.
Inspections The Occupational Safety and Health Administration (OSHA) and United States Environmental Protection Agency (USEPA) are responsible for the inspections of regulated facilities within their PSM and RMP Programs, respectively. In addition, General Duty Clause (GDC), RAGAGEP, Respiratory Protection, and Lockout / Tagout programs are also subject to inspections by one or both agencies. Figure 2 summarizes the top chemical quantities nationwide and by region in the United States. Anhydrous ammonia is the third most-used chemical on the list (flammable mixtures and propane are first and second, respectively). Figure 3 summarizes the top toxic chemical quantities nationwide and by region. Anhydrous ammonia is the first listed.
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FIGURE 2: NATIONAL TOP OVERALL CHEMICALS BY REGION – PROVIDED BY USEPA National Top Overall Chemical by Region (Unit Tons) Chemical Name
Region 1
Region 2
Region 3
Region 4
Region 5
Region 6
Region 7
Region 8
Region 9
Region 10
Total
151
145,277
612,542
289,974
1,652,949
14,157,150
2,306,726
471,099
398,969
184,294
20,219,132
158,444
141,393
125,208
374,286
844,793
2,246,679
1,633,974
260,050
299,223
42,652
6,126,702
Ammonia (anhydrous)
3,972
3,514
40,504
366,774
1,248,697
854,618
1,485,347
294,684
68,523
148,332
4,514,964
Butane
2,168
250,500
61,686
98,451
545,370
1,799,330
765,721
260,665
436,202
58,854
4,276,948
Ethane
0
0
469
285
67,658
1,708,485
65
313
0
6
1,777,281
518
869
6,925
6,612
22,936
676,997
278,100
3,417
24,730
7,742
1,028,851
0
25
91
3,176
10,294
851,351
10,032
0
0
188
0
30,083
2,306
10,048
824,095
3,071
487
0
0
870,277
1,433
33,344
20,448
103,578
31,429
206,793
14,925
3,957
29,633
10,112
455,651
0
0
598
2,782
1,729
395,225
0
0
0
0
400,333
Flammable Mixture Propane
Isobutane (Propane, 2-methyl) Ethyle (Ethene) Propylene (1-Propene) Chlorine 2 - Methypropene (1- Propene, 2-methyl)
874,969
Data displayed is accurate as of 12:01 AM (EST) Friday, December 18, 2020.
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STATE OF THE INDUSTRY 4TH EDITION - JANUARY 2021
Figure 4 illustrates the national accident history by a chemical. While the number of incidents seems incredibly high for ammonia, ammonia is also, by far, the leader in toxic chemical usage. While the reasons behind reportable incidents are not studied, it is reasonable to assume that increased awareness of safety concerns, increased inspections by regulatory agencies, and technological advances to design inherently safer systems all have contributions to the number of reportable incidents. From the 2019 IIAR State of the Industry (SOI) Survey for this report, respondents identified that fines associated with reporting incidents had influenced and prompted policy changes at their facilities to over-report incidents and the quantities released when an incident occurred. It was noted that, due to the severity of potential fines, facilities which were cited for this infraction likely enacted policies to report any release of ammonia from the system regardless of the amount within 15 minutes to the USEPA National Response Center (NRC), which is the designated federal point of contact for reporting discharges into the environment. The consensus was that 100 pounds was not easily calculated and could lead to inaccurate or late reports. Fines reported for failing to report an ammonia release over 100 pounds within the first 15 minutes ranged from $20,000.00 USD to $75,000.00 USD, according to respondents. Another factor, found in the 2020 IIAR SOI Survey responses, was that facilities that described reportable incidents in the “other” or “unknown” category identified that they did not have enough time in the required reportable time to classify the reason. Therefore, respondents noted that the “other” or “unknown” category was used with the intention to re-identify the cause later. One of the issues identified by respondents is that, even if the information is updated by the facility to the NRC, the updated information does not always get documented in the NRC database.
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FIGURE 3: NATIONAL TOP TOXIC CHEMICALS BY REGION – PROVIDED BY USEPA National Top Toxic Chemical by Region (Unit Tons) Chemical Name
Region 1
Region 2
Region 3
Region 4
Region 5
Region 6
Region 7
Region 8
Region 9
Region 10
Total
Ammonia (anhydrous)
3,972
3,514
40,504
366,774
1,248,697
854,618
1,485,347
294,684
68,523
148,332
4,514,964
Chlorine
1,433
33,344
20,448
103,578
31,429
206,793
14,925
3,957
29,633
10,112
455,651
1,390
6,968
330
24,490
6,864
209,956
550
0
1,366
140
252,054
Acrylontrille [2-Propenenitrile]
173
260
2,003
18,766
19,563
138,740
658
0
61
0
180,223
Propylene Oxide [Oxirane, Methyl-]
115
0
3,316
8,860
6,110
148,494
934
0
766
31
168,626
0
663
9,111
8,385
3,566
82,582
2,039
13
604
0
106,963
Ammonia (Conc 20% or Greater)
2,039
679
8,442
6,160
21,715
7,524
2,409
1,159
18,407
38,125
106,659
Formaldehyde (Solution)
1,053
1,481
2,980
12,376
8,711
50,491
1,394
742
171
3,887
83,284
Toluene Diisocynate (Unspecified Isomer) [Benzene, 1,3-diisocynatomethyl-]
144
1,285
5,679
10,731
6,475
55,637
619
94
503
570
81,736
Oleum (Fuming Sulfuric Acid) [Sulfuric Acid, Mixture with Sulfur Trionide]
75
589
19,682
6,232
5,393
46,689
159
16
24
0
78,860
Vinyl Acetate Menomer [Acetic Acid Ethenyl Ester]
Ethylene Oxide [Oxirane]
Data displayed is accurate as of 12:01 AM (EST) Friday, December 18, 2020.
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FIGURE 4: NATIONAL ACCIDENT HISTORY BY CHEMICAL – PROVIDED BY USEPA National Accident History by Chemical
Ammonia Butane Chlorine Chlorine Dioxide [Chlorine Oxide (ClO2)] Flamable Mixture Hydrogen Flouride/Hydrofluric Acid (con 50% ofgreater) Hydrogen Sulfide Pentane Propane Sulfur Dioxide (anhydrous)
Data Displayed is accurate as of 12:00 AM (EST) Friday, December 18, 2020
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Regulatory and Standards Update The USEPA’s Risk Management Plan (RMP) Reconsideration Final Rule Fact Sheet has been in effect for more than a year. Planning over the next few years is key for companies and facilities needing to request resources and/or funds in a larger corporate structure. Annual requirements for emergency response coordination were due March 14, 2018, and facilities should already be complying. Annual notification drills in coordination with emergency responders and field exercises must be done and compliance is required by December 19, 2024. Tabletop exercises are due by December 21, 2026. The scope and frequencies of these notifications and exercises are written in the regulations. Recognized and generally accepted good engineering practices (RAGAGEP) continues to be a discussion topic. IIAR established the ANSI/IIAR Standard 9 Minimum System Safety Requirements for Existing Closed-Circuit Ammonia Refrigeration Systems to address minimum safety standards for ammonia refrigeration. Discussion continues with what else may be necessary to meet RAGAGEP standards. Is the minimum standard enough? Do facilities need to do more to embrace a Safety Culture that is effective? The “California Cooling Act (CCA)” (SB 1013) was passed by California legislature on August 30, 2018, and required that businesses begin the transition from listed hydrofluorocarbons (HFCs) starting January 1, 2019. The bill authorized financial incentives for low-Global Warming Potential (GWP) refrigeration systems, likely in an effort to phase out ozone-depleting synthetic refrigerants. The bill preserved the original EPA deadlines to eliminate HFCs. Given that the bill was legislated in California, it may indicate that the EPA was regulating HFC refrigerants without legislative authority, which may have been the reason for the California Air Resources Board (CARB) taking on the task at a state level instead.
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Facilities should be aware of the impacts of SB 1013 if they are located in California or supply their refrigerant from California. The US Climate Alliance is aiming to set policies and goals to advance the goals of reducing greenhouse gas emissions in the United States. While the global pandemic slowed down the regulatory community with a reduction in face-toface inspections and a moratorium on compliance issues particularly through OSHA in 2020, the USEPA continues to enforce compliance with the Clean Air Act’s General Duty Clause at facilities that below-threshold quantities of highly hazardous chemicals. According to the USEPA, a large number of refrigeration facilities using ammonia are not covered by the USEPA’s RMP rule, meaning that they are operating at less than 10,000 lbs of ammonia at each facility. The Chemical Safety Board (CSB) released its Final Rule on accidental chemical release reporting on February 5, 2019. The rule creates a new reporting requirement for facilities that experience a chemical release and makes it unlawful for any person to fail to report any accidental chemical release resulting in a fatality, serious injury or substantial property damage. The key takeaway from this Final Rule is that facilities are now responsible for notifying the CSB of reportable incidents, in addition to EPA and OSHA.
Low-Charge Ammonia Systems The focus of new technologies emerging in industrial and commercial refrigeration are mainly based on the concept of reducing refrigerant charge. Whether the motivation is reducing regulatory burden or increasing system efficiency and safety, low-charge systems continue to grow in popularity. In 2019, IIAR finalized its Low Charge Ammonia Refrigeration Management (ARM-LC) Summary Guide and Guidelines for end users required to meet minimum safety and regulatory compliance for systems with 500 pounds or less of ammonia. ARM-LC provides guidance on how to meet regulatory requirements and appropriately address elements needed to maintain a safe system. The intention is that this guidance will assist facilities in meeting OSHA and EPA General Duty Clause requirements and makes this compliance very easy.
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Low-Charge Ammonia Systems More end-users are implementing no-charge, low-charge, or reduced charge systems. CO2 transcritical and CO2 cascade topped the survey results along with reduced charge ammonia with glycol as a secondary fluid and packaged systems. These new technologies are changing our industry. In 2020 IIAR held its inaugural meeting of the Energy & Sustainability Committee. This committee will focus on establishing energy efficiency metrics and developing programs to support end user energy conservation initiatives, environmental issues, and regulatory incentives to improve the use of energy in system selection, design, and application. Projects that are of interest to the committee include a comparison of different natural refrigeration systems according to their energy efficiency and cost-effectiveness. The intent would be to compare a variety of systems including two-stage ammonia systems, Subcritical, Transcritical, and low charge packages.
Challenges for End Users The continued challenge for end users is the public perception of widely-used refrigerants. What most of the public does not fully comprehend are the pros and cons of all refrigerants. While some may be non-toxic, they have no odor and present higher asphyxiation hazards. Others are more flammable. Some of this reportedly is exacerbated by regulators, fulfilling their job duties, but also amplifies a negative public perception by concentrating on highly-hazardous chemicals used as refrigerants when they may be more efficient and marketable than other refrigerants. Ammonia is a good example of one of these types of refrigerants.
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The other monumental challenge is the cost of regulatory compliance. As regulations become more complex and expand to new chemicals, the burden becomes ever-increasing. Managing documentation and maintaining records can be time consuming but manageable with support from non-regulating agencies providing guidance and standards. Especially since documentation must not only be completed, but also be accurate. Any change to the system and/or management/personnel may require a documentation review and update. The ideal end-goal is to be able to effectively manage the costs and burden by balancing the refrigerant used, the regulatory requirements, and the cost of running the business. The 2020 IIAR SOI Survey provided great insight into what other challenges end-users face in their operations. Overall, respondents are concerned that the regulatory community is putting too much burden on facilities that is not constructive. Suggestions included regulatory agencies taking a more constructive and helpful approach to facilities that are struggling with compliance, requiring that non-compliance fines be applied to improvement projects rather than just funding the regulatory agency and more alignment between state and federal agencies. There were also a few suggestions that regulatory agencies spend additional time training the inspectors for consistency on regulation interpretation/enforcement and specifically on ammonia facility operations, so they have more specific education on these types of systems. IIAR has supported the Government Support Portal for many years. The portal allows access to IIAR’s most current Standards and the Basic Ammonia Refrigeration and Safety Series to Regulatory agents/officers. IIAR sponsors a regulatory training program through the Industrial Refrigeration Consortium (IRC) and also works with the Global Cold Chain Alliance (GCCA) and World Food Logistics Organization (WFLO) to support an OSHA Alliance training program for regulators. There is also a coalition between IIAR, the American Safety Training Institute (ASTI), the Refrigerating Engineers and Technicians Association (RETA), and GCCA to support a formal Safety Day training program which caters to first responders and the regulatory community. In addition, IIAR staff members are in contact with numerous government agencies to ensure they are aware of IIAR’s presence in the industry and the objectives of the organization.
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Challenges for End Users Nation-wide licensing requirements for trained operators and maintenance personnel were also a common response in the 2020 IIAR SOI Survey. While there are no regulatory requirements for licensing, there are licensing programs and certification programs available to establish a corporate hiring or promotion policy. By far, the biggest challenge identified by end-users revolved around staffing and qualified operator availability. Several respondents to the 2020 IIAR SOI Survey indicated that they had incidents involving ammonia (potentially greater than 100lbs, but not confirmed) and failed to report those incidents within 15 minutes, per NRC requirements. The main reasons provided were that calculations could not be performed in the initial 15 minutes of the incident and the first responders to the incident could not call the NRC due to job duties surrounding the immediate needs of the incident. The IIAR Marketing Committee is currently completing work on a refrigeration end-user portal. This portal will give end users access to regulatory information, an avenue for sharing ideas and solutions to common issues, and general information about changes within the industry.
Energy Savings with Ammonia Refrigeration Systems Results from the 2020 IIAR SOI Survey indicated a number of different ways manufacturers, designers, and end users are increasing their energy efficiency. Most facilities rely on equipment efficiency vs. operational efficiency. These methods included installing low charge systems, installing individual units (condensers, compressors, etc.) that are more efficient, utilizing different heat transfer technologies, and converting controls to modulate operation rather than operate in an “on/off” mode.
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In addition, effective operational changes included cleaning/maintaining equipment at different intervals, using operational changes to raise the suction in a system, controlling the capacity of compressors or utilizing equipment in a different manner with different operational limits, and overall monitoring performance of the system better.
IIAR and Its International Reach Although it has been a difficult year to meet with an international audience, the IIAR has made efforts to engage virtually with its many international chapters in India, China, and Central and South America as well as work on new projects with international alliance partners. Over the last 20 years, IIAR has created strong alliances with many international associations and has been able to extend its reach worldwide through these partnerships. IIAR signed brand new memorandum of understandings (MOU) with AIRAH and AEFYT this year. IIAR now has active international alliances with the Asociación Colombiana de Acondicionamiento del Aire y de la Refrigeración (ACAIRE) - Colombia, Asociación de Empresas de Frío y Sus Tecnologías (AEFYT) – Spain, Australian Institute of Refrigeration, Air Conditioning and Heating (AIRAH) - Australia, Cámara Chilena de Refrigeración y Climatización - Chile, Chinese Association of Refrigeration (CAR) - China, Colegio de Ingenieros Electricistas, Mecánicos e Industriales de Costa Rica (CIEMI) – Costa Rica, and eurammon - Germany. IIAR also maintains strong alliances through MOUs with many US based associations including the American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE), the GCCA, and RETA. As the IIAR has built up its international alliance and chapter programs there has been growing interest in the adoption and use of IIAR Standards and education materials within corresponding countries. IIAR Standards have been incorporated into regulatory documentation in Colombia, Costa Rica, and Chile to date.
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IIAR and Its International Reach Work continues in India, China, and, most recently, Singapore to incorporate IIAR standards into local regulations. IIAR 2 has been translated into Mandarin and Spanish and IIAR is in the process of translating all standards, publications, and education programs into Spanish. In lieu of in-person international meetings and events, IIAR was able to provide several online training programs to refrigeration industry professionals in Mexico, Peru, Argentina, and Colombia through partnerships with IIAR Chapters in South and Central America. IIAR continues to work with our chapters and alliance partners to establish events and education offerings throughout the world. If you are interested in attending or participating in any of IIAR’s international events, go to www.iiar.org/events/international.
IIAR Educational Resources IIAR has expanded its educational content and offerings to include online and on-demand education resources through the IIAR Learning Management System (LMS). In a physically distanced world, this online resource has been critical in helping IIAR achieve its mission of education and training via a virtual medium. IIAR Certificate Courses are currently available through the IIAR LMS. These programs support critical training for the refrigeration industry and provide ongoing education credits and qualifications. Courses include IIAR 2 (English and Spanish), IIAR 6, IIAR 4/5/8, ARM, PSM RMP, PHAs, and IIAR 9. IIAR is planning to expand its offerings on courses in 2021 to include Mechanical Integrity and Piping Handbook programs. IIAR also has Basic Ammonia Refrigeration, Ammonia Refrigeration Safety, and Oil Draining training series available as part of the online education system.
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IIAR Standards are in constant development and review. IIAR has released re-affirmations of IIAR 8 and IIAR 4 in 2020. The IIAR is currently developing a standard for hydrocarbons and will have a new CO2 Standard approved soon. Discussions and meetings have been ongoing in order to establish the scope and content of both standards. The fourth review of “BSR/IIAR CO2-202x, Safety Standard for Closed-Circuit Carbon Dioxide Refrigeration Systems” closed on February 12, 2021. IIAR has recently produced a new Guideline for Developing an Energy Control Plan for Manual Hand Valves in Ammonia Refrigeration Systems, and by the time of publication, the IIAR will have introduced a new Guideline for Installing Insulation on Ammonia Refrigeration Systems which is based on research conducted through Ammonia Refrigeration Foundation (ARF) funding. The IIAR is also working on content for a guideline outlining the proper use of personal protective equipment (PPE) when maintaining and operating an ammonia refrigeration system. Please go to www.iiar.org/education for more information.
The IIAR Suite of Standards IIAR 1 – American National Standard for Definitions and Terminology Used in IIAR Standards. Provides a unified set of definitions for use in the IIAR Standards IIAR 2 – American National Standard for Safe Design of Closed-Circuit Ammonia Refrigeration Systems. IIAR 2 is the definitive design safety standards for the ammonia refrigeration industry. IIAR 3 – American National Standard for Ammonia Refrigeration Valves. IIAR 3 specifies criteria for materials, design parameters, marking and testing of valves and strainers used in closedcircuit ammonia refrigeration systems. IIAR 4 – American National Standard for Installation of Closed-Circuit Ammonia Refrigeration Systems. IIAR 4 was written to serve as a standard for the installation of closed-circuit ammonia refrigeration systems and overpressure protection relief piping systems. IIAR 5 – American National Standard for Start-up of Closed-Circuit Ammonia Refrigeration Systems. IIAR 5 provides basic minimum requirements for the safe start-up of closed-circuit refrigeration systems and additions and modifications made to such systems.
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The IIAR Suite of Standards IIAR 6 – Inspection, Testing, and Maintenance for Safe Closed-Circuit Ammonia Refrigeration Systems. IIAR 6 provides the minimum requirements for inspection, testing, and maintenance (ITM) tasks and record keeping applicable to closed-circuit ammonia refrigeration systems. IIAR 7 – American National Standard for Developing Operating Procedures for Closed-Circuit Ammonia Mechanical Refrigerating Systems. IIAR 7 defines the minimum requirements for developing operating procedures for closed-circuit ammonia refrigeration systems and is intended for those who develop, define, and/or review operating procedures for ammonia refrigeration systems. IIAR 8 – American National Standard for Decommissioning of Closed-Circuit Ammonia Refrigeration Systems. IIAR 8 specifies the minimum criteria for removing the ammonia charge in conjunction with the decommissioning of closed-circuit ammonia refrigeration systems. IIAR 9 – Minimum System Safety Requirements for Existing ClosedCircuit Ammonia Refrigeration Systems. IIAR 9 provides a method for existing stationary closed-circuit refrigeration systems using ammonia as the refrigerant to evaluate and document new and revise codes, standards, and practices to determine what provision should be implemented in the existing system. IIAR Standards contain both normative and informative information, establishing both the minimum requirements for industry compliance and advisory information where applicable. IIAR Standards are ANSI approved as they are subject to a rigorous public review process to ensure that they represent an industry consensus. IIAR standards set the industry standard and are a must-have technical resource to ensure a safe and efficient industrial refrigeration operating environment. Be part of the discussion. Go to www.iiar.org/Standardsreview
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Government Relations Board Update As part of an ongoing effort to advance the mission of the IIAR and increase engagement with United States government agencies who may have regulatory purview over the refrigeration industry, key IIAR staff and committee members meet with interested government agencies, on some level, on an annual basis. From enforcement to legislation, the IIAR continues to monitor government agency programs that may affect the refrigeration industry. A lot has changed in the regulatory environment in the past year. As mentioned previously, the United States has sworn a new President into office. A change in administration necessarily brings about change in policy and legislation. In the past few months, the US has seen the AIM act become law and the Paris Agreement has been ratified. Through the AIM act, the USEPA has been given the authority to phase-down the use of HFCs similar to the phase-down schedule as implemented in the Kigali Amendment to the Montreal Protocol. The US has not ratified the Kigali Amendment yet, however, a special task force has been convened to review the potential to do so. The phase-down of HFCs will most certainly have a massive effect on the type of refrigerant employed in new and retrofitted refrigeration facilities. The ratification of the Paris Agreement also bolsters the action of the AIM bill by committing the US to create Nationally Determined Contributions (NDCs) in order to curb greenhouse gas emissions. Targets have yet to be set, however, under the new administration, they are anticipated to be bold and match European goals. HFCs will be a major component of NDCs. IIAR has had ongoing discussions and active engagement with the USEPA, OSHA, Department of Homeland Security (DHS), and CSB to name a few. Active work within our staff and committees includes the review of ammonia immediately dangerous to life and health (IDLH) levels along with emergency management guidance regarding use of APR with the National Institute for Occupational Safety and Health (NIOSH) and OSHA as well as a review of ammonia release quantity limits with USEPA. IIAR continues to work on standards which help promote the safe and sustainable use of natural refrigerants within refrigerated facilities.
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Government Relations Board Update IIAR continues its alliance with GCCA and OSHA designed to provide training to government agency personal. These trainings and education sessions help inspectors better understand the unique aspects of industrial refrigeration facilities and the IIAR standards specifically developed to support them. IIAR is also supporting the IRC with a similar effort. The goal is to increase awareness within the regulatory community of the unique safety and operation of natural refrigeration systems. Through IIAR’s affiliation with the US Cybersecurity & Infrastructure Agency (CISA) and the Chemical Sector Coordinating Council (CSCC), IIAR was able to facilitate a shipment of facemasks to our members through the Federal Emergency Management Agency (FEMA). Early on in the pandemic, FEMA reached out to essential industry stakeholders to provide programs in support of necessary functions in the food processing and food retail industry. It is hard to believe at the date of this publication that facemasks were hard to come by in the early days of the COVID-19 Pandemic. IIAR continues to monitor government programs that impact the use of all refrigerants. IIAR also continues to make government agencies aware of the benefits of ammonia and other natural refrigerants for their viability and potential for future use. For more information on government programs please go to www.iiar.org/
governmentandcode.
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Where is the Industry Headed? There are many challenges that face the industrial refrigeration industry in the future. Emerging regulations surrounding refrigerants, including changes to the USEPA and OSHA programs and California’s Refrigerant Management Program (CalRMP), may initiate further complications in reporting and the usage of alternative refrigerants. The CalRMP requires leak inspections and reporting from facilities with refrigeration systems containing more than 50 lbs of high-GWP refrigerant. The program also requires facilities to promptly repair leaks and keep service records on site. The intent of the program is to reduce emissions of high-GWP refrigerants from previously unmonitored and unregulated systems. With the phase-down of HFCs and the push for reduced amounts of high-GWP refrigerants, endusers are in a situation where they must decide which regulations they will choose to be governed by, rather than if they can remove their facility from an under a regulatory agency by restricting their inventory or using alternative refrigerants. More encouraging, however, are the advances within the industry utilizing newer technologies and lower refrigerant charges. For example, many facilities have opted to design CO2 and hydrocarbon refrigeration systems, both are low-GWP refrigerant and very efficient. Even with additional regulations that may surround the use of CO2, this refrigerant is increasingly studied for its sustainability in the industry. The largest consideration in utilizing any refrigeration system over another is the facility’s needs for loading, operations, and expansion. The future of IIAR holds some promising potential as it works to establish a worldwide standard for industrial facilities building. Internationally, more countries are following the US and Europe’s lead for safety standards surrounding natural refrigerants and are partnering with US and European resources to do so.
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2021 Survey Responses When IIAR launched the inaugural State of the Industry Report at the 2018 IIAR Natural Refrigeration Conference & Expo in Colorado Springs, CO, we asked that our members participate in a survey created to serve as a year over year benchmark for our industry. We appreciate the response we received from our 2020 survey. We have seen participation in the survey jump precipitously. We would appreciate your feedback. Question 1: Did your facility upgrade or have any system / design expenditures in 2020? If so, what projects were completed? Please describe. Question 2: Does your facility have any planned upgrades or system / design expenditures for 2021 / 2022? If so, what? Question 3: What was the biggest challenge you or your business faced in 2020? Please describe. Question 4: What new technologies, other than “traditional” ammonia closed-circuit refrigeration systems, are end-users implementing in their facilities. (i.e. cascade systems, low-charge systems, CO2 Transcritical etc.) Question 5: Are there any safety challenges at your facility that you feel could be fixed or improved and what are those items? What do you think the best solution is? Question 6: What is the biggest challenge faced for end-users in the industrial and commercial refrigeration industry? Question 7: As an equipment manufacturer, facility designer or end user, please describe ways in which you were able to increase energy efficiency in equipment and/or facility operation. For both industrial and commercial applications. Question 8: Are you interested in more information from other IIAR Committees? If so, please specify. Question 9: What information would you like o see in future reports? To participate in the survey, go to www.iiar.org/iiar/ stateoftheindustry. Email publications@iiar.org for more information. PAGE 26
STATE OF THE INDUSTRY 4TH EDITION - JANUARY 2021
Participate in IIAR Committees CO2 COMMITTEE – Chair: Luke Facemyer, Stellar – The IIAR CO2 Committee maintains a close working relationship with our National and International members to; update information, review code requirements, update material, provide methods of application, research, safety and new component development. COMPLIANCE GUIDELINES COMMITTEE – Chair: Jeanna Emmons, PSM RMP Solutions – Manages and updates the IIAR regulatory publications. The committee maintains the PSM/ RMP Manual, ARM Manual, Ammonia Data Book and new regulatory publications. EDUCATION COMMITTEE – Chair: Mark C. Stencel, Bassett Mechanical, Inc. – The Education Committee works to expand knowledge about natural refrigeration industry by aiding in creating and distributing publications including, codes, videos, workshops seminars and more. GOVERNMENT RELATIONS COMMITTEE – Chair: Jeffrey P. Carter, General Mills, Inc. – Dedicated to government relations, the Government Relations Committee was formed to work directly with the Institute’s government affairs representative. As IIAR continues to work on behalf of the industry with government officials both in the U.S. and in other countries, the committee addresses issues important to IIAR members and continues the organization’s tradition of advocacy on behalf of the industry. INTERNATIONAL COMMITTEE – Chair: Adolfo Blasquez, Sr., A. Blasquez Refrigeración Industrial – The International Committee expands IIAR activities around the world, recruits new members, translates IIAR publications and increase global distribution of IIAR publications through appropriate refrigeration organizations worldwide. MARKETING COMMITTEE – Chair: Beth Fox, EVAPCO, Inc. – Promotes the use of ammonia refrigeration, reinforces IIAR’s image within the ammonia refrigeration and related industries through advertisements and advertorials in industry publications; ensures that industry information is disseminated to members, industry and the general public; works with the headquarters staff on maintaining the marketing plan; develops and administers effective programs to ensure continued growth of IIAR. PIPING COMMITTEE – Chair: Gordon B. Struder, EVAPCO Inc. – Develops and publishes consensus specifications for pipe fittings and pipe materials used in the construction of ammonia refrigeration piping systems. Reviews other areas of interest that concern piping systems such as cleanliness, welding procedures, insulation and pipe sizing and recommends appropriate response to review issues which may include issuing publications.
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Participate in IIAR Committees RESEARCH COMMITTEE – Chair: Wayne F. Wehber, Vilter Manufacturing LLC – Identifies and develops work statements that when implemented will benefit the ammonia refrigeration industry and assists the IIAR staff in the development of these work statements into completed research projects. SAFETY COMMITTEE – Chair: Joseph M. Fazzari, Colmac Coil Manufacturing, Inc. – The Safety Committee develops and implements projects intended to inform as well as educate the ammonia refrigeration industry and related parties on the proper and safe use of ammonia as a refrigerant and the proper and safe operation and maintenance of ammonia refrigeration systems. STANDARDS COMMITTEE – Chair: Robert J. Czarnecki – Updates and interprets the IIAR standard(s), review and interface with other standard writing organizations that include ammonia and ammonia refrigeration systems within their standards, develops ideas for and writes new standards (and other publications of interest to the industry) to be sponsored by IIAR and work with the American National Standard Institute (ANSI) and IIAR staff in moving standards through the ANSI approval/review process. ENERGY & SUSTAINABILITY COMMITTEE – Chair: Stefan Jensen, Scantec Refrigeration Technologies – The Energy & Sustainability Committee is newly formed in 2020. This committee will focus on energy efficiency and sustainability topics that have attracted significant interest across the world. Rising costs of utilities including both energy and water, new energy and water efficiency standards, international agreements pertaining to reduction of emissions and the phase-down of certain synthetic refrigerants are all topics that the committee intends to address. For more information go to www.iiar.
org/committees.
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IIAR is the world’s leading advocate for the safe, reliable and efficient use of ammonia and other natural refrigerants. IIAR members share their collective knowledge and experience to produce consensus documents that address various aspects of the natural and industrial refrigeration industry. IIAR has broad industry representation including manufacturers, design engineers, contractors, end users, academics, scientists, and trainers. IIAR sets the standard for providing advocacy, education and the most up-to-date technical information to the ammonia and natural refrigeration community. We help professionals develop their skills and further their careers by promoting the common interests of members.
Our Vision and Mission Our vision is to create a better world through the safe and sustainable use of natural refrigerants Our mission is to provide advocacy, education, and standards for the benefit of the global community in the safe and sustainable design, installation and operation of ammonia and other natural refrigerant systems.
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