Canadian RMC Levy on HCFCs to Increase $1 Jun 1, 2010

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Refrigerant Management Canada (RMC) increased the environmental levy on HCFCs by $1.00 effective June 1, 2010. The levy rate will increase from $1.50 to $2.50 per kilogram on HCFCs or HCFC blends sold in Canada.

The adjustment comes in response to the 30% reduction in allowable HCFC import volumes that came into effect on January 1, 2010 and is necessary for the sustainability of the RMC program. The 30% reduction in import volumes translates into a 30% reduction in RMC revenue.

RMC is an industry-led extended producer responsibility (ERP) program dedicated to ensuring that refrigerants are disposed of in an environmentally responsible manner. The program is funded by a voluntary environmental levy remitted by the industry on sales of new and reclaimed HCFCs and HCFC blends. No government funding is provided for the program. The levy has been maintained at $1.50 per kilogram since January 1, 2006. However, the 30% volume reduction of HCFCs will not allow the program to remain financially viable without an increase in the levy.

In 2007, after seven years of operation, RMC had collected and destroyed over one million kilograms of surplus ozone depleting refrigerants. In 2010, RMC will reach two million kilograms collected and destroyed. This next benchmark in refrigerant destroyed by the program will have been accomplished in under three years and calls attention to the significant volume increases the program is handling as revenues decline.

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