Tratado de Montreal R-22QA

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    Questions About Tranes R-22 SystemsJuly 2006

    R-22 Regulatory Landscape

    1. What are the phase-out dates for R-22?

    Regulation Equipment Type Developed DevelopingNew 2020 2016: production cap based

    upon 2015Montreal Protocol

    Existing 2030 2040New 2010 N/AU.S. Clean AirExisting 2020 N/ANew 2000-2004 N/AEurope: EU Regulation

    2037/2000/EC Existing 2015 N/A

    2. Why is Trane offering R-22 when according to Alternative Refrigerant Evaluation Program(AREP), R-22 is less efficient that R-410A, R-407C and R-134a?When used in a Trane system, R-22 is more efficient that R-410A and R-134a. Its important tounderstand how AREP tested these refrigerants. AREP was a consortium of industry suppliers

    established in the early 1990s to jointly evaluate R-22 alternatives. Its primary focus was to providecomparative data for selecting HFC alternatives such as R-410A and R-134a, and implementing safe,reliable, efficient and cost effective R-22 alternatives. Because residential products represent thegreatest segment of the market, most of AREPs testing was done on a three-ton split system. AREPsgoal was to provide as much of a drop-in comparison as possible. However, AREP made designchanges because R-410A operating pressure is significantly higher than R-22 and R-134a. Their testsshowed:

    R-410A was 5-6 percent more efficient that R-22.R-22 was 3-6 percent more efficient that R-134a.Costs were not taken into account.

    AREP did not do true comparative testing. In fact, individual suppliers were asked to make the necessary

    system design changes to individually test each refrigerant. Tranes testing showed that our systemsdesigned for use with R-22 deliver a 4-5 percent efficiency advantage and a 4-6 percent cost advantagewhen compared with systems designed for use with R-410A.

    Larger size scroll compressor systems (large unitary and chillers) designed with R-134a deliver a 3-4percent system efficiency advantage and a 2-3 percent cost advantage at the estimated 2010 ASHRAE90.1 efficiency levels. And, this advantage continues for unitary systems and increases on chilled watersystems for high efficiency options and as efficiency levels continue to increase in the future.

    Tranes R-22 Systems & Transition Plans

    3. With phase out dates approaching quickly, why is Trane still offering R-22 systems?We have product plans in place to transition our entire line prior to 2010. Phase out dates were set to

    give the HVAC industry adequate time to build systems that are right for the environment and right forbusiness. Weve been phasing in R-22 replacement systems since the mid-1990s and have alreadydelivered more than 250,000 alternate units using R-410A, R-407C, and R-134a.

    Its also important to note that there are several regulatory challenges between now and 2010, with R-22being the most significant transition ever experienced by the HVAC industry. R-22 is used in nearly 85percent of all HVAC systems available today.

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    New NAECA standards for residential and small light commercial products that increase minimumefficiency levels to 13 SEER starting in 2005. This is a 30 percent increase in efficiency standardsstarting in 2006.New ASHRAE 90.1 standards increase minimum efficiency levels (level specifics still in thedetermination phase) starting 2010.

    Tranes product plans address the three regulatory requirements taking place between 2006-2010, and

    bundle together individual requirements from each to offer our customers energy-efficient solutions withthe right refrigerant choice. That way we can apply our energy-efficiency learnings from NAECA andASHRAE 90.1 to all of our products, including finding alternative solutions for our systems with R-22.

    4. Is Trane trying to accelerate the R-22 transition like many of our competitors?No. We will complete the transition across our portfolio prior to 2010. Phase-out dates set by theMontreal Protocol and other country-specific regulations were designed to give the HVAC industryadequate time for a smooth, cost-effective transition.

    The R-22 transition is significant for the HVAC industry. Its important that we introduce systems withalternative refrigerants that offer the greatest benefits for our customers. Its essential that we bring non-refrigerant benefits to customers including indoor air quality, sound, cost, size, serviceability and userinterfaces. These are important because they directly impact the profitability of our customers

    businesses and the comfort of their occupants.

    5. When will Trane begin selling R-22 replacement systems?Trane has already delivered more than 250,000 R-22 alternative units since the 1990s and will introduceR-22 replacements across the remainder of our portfolio before 2010.

    1997, introduced leading water-cooled screw chiller with R-134a.1999, introduced R-22 alternatives in our residential systems (R-410A).2001, introduced fresh air package unit with R-134a.2002, introduced large unitary systems and scroll chiller, both using R-407C.2004, introduced self-contained package units using R-407C and R-410A.

    Plus, we have plans in place to introduce and expand some important product lines between now and

    2010. At the same time, well retain existing, industry-leading R-22 products that meet customersminimum efficiency needs at a competitive price point.

    6. How long will Trane continue to offer R-22 systems?Based upon the current refrigerant alternatives and available technology, Trane will continue to use R-22until its phase out dates. When used in a Trane system, R-22 is efficient, reliable, available and cost-effective. A few examples include:

    Tranes XL19i residential split system is the most efficient residential system in the world.Tranes XL1600 is the most efficient light commercial package system in the world.

    7. Can R-22 systems earn LEED credit?Yes. In fact, Tranes Intellipak rooftop units (50 tons) and controls package helped Herman Millers newgreen building in Michigan earn LEED credit for energy efficiency. In addition to LEED, Tranes R-22systems helped Hines (a developer in Houston, Texas) and Centex (a home builder and servicescompany), earn the U.S. EPA-Department of Energy Energy Star Label for Buildings Award.

    The most recent LEED credit interpretation to Energy and Atmospheric Credit #4 in New Construction,Version 2.2, allows for earning of this one point based on a weighted impact for all the refrigerants on aproject. This weighting takes into account amount of refrigerant (lbs/ton) on the project and the assumedleak rates and global warming and ozone depletion potentials for each refrigerant type. Given the defaultassumptions, a project using 100% R-22 refrigerant will not earn this single point. But, a project with amix of R-22 and other refrigerant types (including R-123) can earn this single point. In addition, earning

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    of the single point for Credit #4 is not a prerequisit for LEED certification, since this represents 1 of 69total points.

    The most significant help Trane can offer customers who want their buildings to earn LEED certificationis the knowledge resident in our 75+ LEED accredited sales people as well as our ability to pull togetherTrane systems and non-Trane components as part of an integrated comfort system. No other singlesupplier can match the combination of our superior knowledge and broad product portfolio.

    Refrigerant Choices Alternatives to R-22

    8. Whats the best replacement for R-22?Theres more than one suitable R-22 replacement.

    R-410A: For residential, light commercial and package terminal products where customers requiresmall cabinetry or face high application space constraints in the building, because the refrigerantuses a smaller compressor and refrigerant lines.R-134a: For larger unitary systems and screw and scroll compressors because its thermodynamicefficiency performance is better than R-410A and cabinetry and other space constraints are relativelyminimal. Plus, the low refrigerant cost makes our large unitary, and screw and scroll compressorscost effective for our customers to service.

    R-407C works in existing equipment and is a good alternative, particularly in the European Unionwhere we were required to transition quickly by dropping in refrigerant without making manychanges to the equipment. Because R-407C attributes are similar to R-22, few changes need to bemade to compressors and systems, and capacity and efficiency differences are minimal.

    9. Why is Trane being different than the industry with R-134a as a replacement choice?Weve done extensive testing to determine the right R-22 alternatives. We are consistent with theindustrys R-410A choice for residential, light commercial and package terminal units, and in our R-134achoice for screw compressor products.

    We learned that there was an unexpected efficiency advantage from R-134a for larger size scrollcompressor products in unitary (large rooftops, split systems) and chilled water applications. In addition,the physical size of these products are not as driven by compressor and refrigerant line sizing asresidential, light commercial and packaged terminal products. By selecting R-134a for these products,were able to:

    Lead the industry with higher efficiency products introduced before the phase out dates set by theMontreal Protocol and other country regulations.Expand our offering of high efficiency options as part of our 20+ ton global chiller programEnsure longer-term cost competitiveness as regulated efficiency levels increase over time.Offer a system with lower service costs because the price of R-134a costs at least 30 percent lessthan R-410A.

    Because Trane makes and integrates our compressors, heat exchangers and controls across our broadportfolio, were able to consider the entire system and deliver top performance and value for each of ourproduct lines. Here are some specifics:

    R-134A R-410ATechnology Advantage: larger size scroll

    compressor products in unitary(large rooftops, split systems)and chilled water applications.

    Advantage: residential, lightcommercial and packageterminal products

    Fluid cycle efficiency Advantage: 7% @ 80/67 & 95 4% @ 80/67 & 82

    Compressor adiabatic efficiency SameAssuming no size constraint

    SameAssuming no size constraint

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    Service costs $5.50/poundCurrent high price because ofproduction shortage whenfacility unexpectedly wentoffline. Have recently started tore-produce.

    $7.75/pound

    High ambient operation No real limitations Some limitationscan be

    worked around

    Heat pump design andoperation

    No difference No difference

    Refrigerant Cost and Availability

    10. How does R-22 cost compared to other refrigerants?R-22 is nearly 75 percent less expensive to service than the alternatives because of the refrigerant cost.In February 2005, refrigerant costs per pound are estimated at the following:

    R-22 R-134a R-410A R-407C$2.10/pound $5.50/pound

    ($3.80 in mid-2004)Current high price because ofproduction shortage whenfacility unexpectedly wentoffline. Have recently started tore-produce.

    $7.75/pound $8.10/pound

    11. How much do you expect refrigerant price to increase in the future?

    R-22 R-134a R-410A R-407C

    will remain stable overnext few years and then willincrease slightly over thenext decade or more.

    Based upon R-11 and R-12, we dont anticipatesignificant price increaseafter 2010. Plus, R-22 isfeedstock for Teflon, whichcan be producedindefinitely.

    and will remain stablefor future. Anticipate pricingto be considerably lowerthan R-410A and R-407C.

    We expectthat price willremain relativelystable for

    foreseeablefuture.

    We expect thatprice will remainrelatively stable forforeseeable future.

    12. How will Trane guarantee the cost of R-22 will remain affordable and available after phase out?While we cant absolutely guarantee R-22 pricing, availability logic and history strongly suggest that R-22price will remain lower than HFC prices.

    History tells us. R-11, our industry benchmark, was available and affordable when it was phasedout because of reclaim and reuse efforts in the HVAC industry.

    Plenty of R-22 systems on the market today:85 percent of all equipment on the market todayuses R-22. This suggests that there will be plenty of R-22 available for reclaim and reuse.R-22 production will continue indefinitely. 50 percent of the worlds R-22 production is used tomake Teflon. R-22 as an ingredient in Teflon isnt included in the Montreal Protocol because itsconsumed during the process isnt released into the environment. R-22 production processes willremain in place by current refrigerant producers.