June 26, 2001(Updated since June 19, 2001)

JAMA Comments on Japan's New Legislation Concerning the Recovery and Appropriate Disposal of Chlorofluorocarbons (CFCs)

The Japan Automobile Manufacturers Association, Inc. (JAMA) believes that Japan's recently passed Law to Ensure Implementation of the Recovery and Destruction of Chlorofluorocarbons (CFCs) in Designated Products represents a highly effective means of not only preventing the release into the atmosphere of CFCs used as car air-conditioner coolants (see Footnote 1), but also recovering CFCs from end-of-life vehicles. These objectives are a matter of serious concern to the automobile industry today.

JAMA is determined that all automaker obligations in the recovery of CFCs as stipulated in the new legislation will be fulfilled, and it will furthermore make every possible effort to ensure the smooth and efficient implementation of the system that the legislation calls for. Moreover, prior to the enforcement of the new law, the industry will work to improve its current strategies in dealing with CFC recovery and disposal.

JAMA and its member manufacturers hereby respectfully request the support and cooperation of the government and all related industries in the promotion of the following activities.

Activities Prior to the Enforcement of the New Law

(1) Efforts will be made to expand the number of companies registered by the automobile industry under the present CFC recovery and disposal program (currently totaling 3,359 companies operating in 6,245 locations).
  Participation in this program by companies now taking part in the "Project to Promote the Introduction of CFC Recovery Systems" launched at the beginning of this year (see explanation below), as well as by operators yet to register in the program, is now being solicited.
(2) Efforts will also be made, in rationalizing the distribution of tasks and the cost-sharing burden among operators in the CFC recovery scheme, to achieve a broader-based understanding with industry partners, while promoting more extensive and efficient CFC recovery.
(3) Information campaigns will be carried out to raise public awareness of the importance of CFC recovery and disposal through a wide range of public relations activities aimed at vehicle users and all parties involved in CFC recovery.

Activities Facilitating Enforcement of the New Law

(1) Adhering to a clear framework for task-distribution and cost-sharing in response to compliance with the new law.
(2) Disclosing information on operators currently registered in the CFC recovery and disposal program, in order to facilitate official registration once the new law is enforced.
(3) Expanding and improving delivery networks for the disposal of recovered CFCs, to ensure the efficiency of the overall system.
(4) Ensuring the availability of a sufficient number of facilities for the appropriate disposal (i.e., destruction through decomposition) of CFCs.

Background Information:
A Review of JAMA's Activities In Support of CFC Recovery and Disposal

(1) The Japan Automobile Manufacturers Association (JAMA), in cooperation with the Japan Auto Parts Industries Association (JAPIA) and other industry partners, has been active since 1998 in establishing and operating a program providing the infrastructure necessary for the appropriate disposal of designated chlorofluorocarbons (CFC12) recovered from end-of-life vehicles. In May 2001 the scope of this program was expanded to include the recovery and appropriate disposal of CFC12's substitute, HFC134a.
(2) JAMA also participates in the "Project to Promote the Introduction of CFC Recovery Systems," introduced in early 2001 by the Ministry of Economy, Trade and Industry in an effort to increase the number of CFC recovery operators. JAMA's participation has included financial assistance both to defray the cost of purchasing the necessary recovery equipment and to support related briefing sessions which have been conducted nationwide. Results to date include the installation of 1,921 collectors (see Footnote 2) in vehicle dismantling operations throughout Japan.
(3) At the end of last year, JAMA and a number of related industry organizations (see Footnote 3) jointly established the Japan Automobile Recycling Promotion Center, whose aim is to promote total end-of-life vehicle recycling. In conjunction with this move, a system was adopted for the centralized management of CFC recovery and disposal operations.

Footnotes

1: CFC12 and HFC134a.
2: High-performance equipment for the recovery of both CFCs and HFCs.
3: The Japan Auto Parts Industries Association, Japan Automobile Dealers Association, Japan Mini-Vehicles Association, Japan Automobile Importers Association, Japan Used-Car Dealers Association, Japan Automobile Service Promotion Association, Japan Iron and Steel Recycling Institute, and the Japan Automobile Research Institute, Inc.

(Reference Material)

Summary Of The Law To Eesure Implementation Of
The Recovery And Destruction Of Chlorofluorocarbons
In Disignated Products

(Submitted by Environment Committee Chairman, Lower House Legislation No. 46)

This legislation is based on consideration of increased action taken towards protecting the ozone layer and preventing global climatic change, two issues now shared by all of mankind. In seeking to curb emissions into the atmosphere of chlorofluorocarbons, substances which break down the ozone layer and have a serious impact on climate change, this legislation establishes the guidelines, and the obligations of relevant market operators as well as other provisions for promoting the effective recovery and appropriate disposal of chlorofluorocarbons from industrial-use refrigeration and air-conditioning equipment, as well as from car air conditioners. It also establishes measures for and other means of ensuring implementation of the recovery and destruction of the chlorofluorocarbons used in industrial-use refrigeration and air-conditioning equipment and car air conditioners. The principal content of this legislation is outlined as follows.

1. Purpose
In the interest of curbing emissions into the atmosphere of chlorofluorocarbons, substances which act to break down the ozone layer and have a serious impact on climate change, this legislation establishes measures for the recovery and appropriate disposal of chlorofluorocarbons used in designated products, with the purpose of contributing to the health and welfare of the entire human race.

2. Definitions
For the purpose of this legislation, "chlorofluorocarbons" refers to three types of chlorofluorocarbons, namely, CFCs, HCFs and HFCs. "Category 1 Designated Products" refers to industrial-use refrigeration and air-conditioning equipment, and "Category 2 Designated Products" refers to car air conditioners.

3. Guidelines and Obligations of the Responsible Parties
Guidelines are determined for matters related to the collection and recovery and disposal of chlorofluorocarbons from designated products, while obligations are established for relevant market operators, manufacturers, the public, the national government and local public entities.

4. Recovery of Chlorofluorocarbons from Category 1 Designated Products
Upon disposal of industrial-use refrigeration and air-conditioning equipment, market operators who recover coolant-use chlorofluorocarbons (hereinafter referred to as "Category 1 Chlorofluorocarbon Collectors") shall obtain registration by the Governors of their respective prefectures. Category 1 Chlorofluorocarbon Collectors shall have the obligation to observe the standards for chlorofluorocarbon removal, recovery and transport, while the prefectural Governors shall have the authority to issue any guidance, advice, recommendations or directives deemed necessary.

5. Recovery of Chlorofluorocarbons from Category 2 Designated Products
1) Market operators who remove car air-conditioners from end-of-life vehicles (hereinafter referred to as "Category 2 Designated Product Removers") shall obtain registration by the Governors of their respective prefectures. Category 2 Designated Product Removers shall attach automobile chlorofluorocarbon handling certificates to and deliver air conditioners removed from automobiles to operators capable of recovering the coolant chlorofluorocarbons from car air conditioners (hereinafter referred to as "Category 2 Chlorofluorocarbon Collectors").

2) Category 2 Chlorofluorocarbon Collectors shall obtain registration by the Governors of their respective prefectures.

3) Category 2 Designated Product Removers shall be assessed with removal obligations for the Category 2 Designated Products, and Category 2 Chlorofluorocarbon Collectors shall have the obligation to observe the standards for chlorofluorocarbon removal, recovery and transport. The prefectural Governors shall have the authority to issue any guidance, advice, recommendations or directives deemed necessary.

6. Disposal of Chlorofluorocarbons
Market operators engaged in the disposal of coolant chlorofluorocarbons from designated products (hereinafter referred to as "Chlorofluorocarbon Disposers") shall obtain licensing from the competent Minister. These Chlorofluorocarbon Disposers shall be assessed with chlorofluorocarbon removal obligations, and have the obligation to destroy chlorofluorocarbons in accordance with the standards for chlorofluorocarbon recovery and disposal. The competent Minister shall have the authority to issue any guidance, advice, recommendations or directives deemed necessary.

7. Cost Burden Breakdown
1) With regard to industrial-use refrigeration and air-conditioning equipment, users disposing of such equipment shall make payment to Category 1 Chlorofluorocarbon Collectors at proper rates for the cost of chlorofluorocarbon recovery.

2) With regard to car air-conditioners in end-of-life vehicles, Category 2 Chlorofluorocarbon Collectors shall attach automobile chlorofluorocarbon handling certificates to the removed chlorofluorocarbons, for delivery to the relevant automobile manufacturers/importers. The said Collectors may also invoice for the costs of the recovery and transport, while the automakers/importers shall receive those chlorofluorocarbons and remit payment to the Category 2 Chlorofluorocarbon Collectors for those costs.

3) The rates to be paid by the automakers/importers shall be determined and disclosed by the automakers/importers in accordance with standards stipulated by the competent Minister. When concluding that rates disclosed in this manner deviate conspicuously from the stated standards, the competent Minister may recommend that automakers/importers implement changes in their rates. Furthermore, the automakers/importers may request payment from automobile users for the costs of chlorofluorocarbon recovery, etc.

8. Miscellaneous Regulations
Stipulations shall be made to prevent the indiscriminate discharge of chlorofluorocarbons, as well as to establish requirements with respect to the labeling of designated products with necessary information/specifications concerning chlorofluorocarbon recovery and disposal.

9. Penalty Provisions
Penalties shall be assessed for illicit registration, violation of directives from the prefectural Governors or competent Minister, the indiscriminate discharge of chlorofluorocarbons and other infractions.

10. Supplementary Provisions
1) This legislation shall be enforced from April 1, 2002. With regard to the obligations for recovery of chlorofluorocarbons from car air-conditioners, and notwithstanding stipulations regarding the payment of costs and other matters, enforcement shall be from the date determined by government ordinance during the period extending through October 31, 2002.

2) Stipulation shall be made regarding the methods to be used by automakers and other market operators in collecting costs from automobile users, ensuring compliance with the Automobile Recycling Law, investigative research into chlorofluorocarbons used for insulation materials and other purposes as opposed to those used for coolants, and other matters to be considered.