Insights from HFC Stakeholder Survey December 2022
Causeway Solutions conducted an online survey of HFC stakeholders impacted by U.S. EPA decisions on HFC allocations. Key takeaways show stakeholders' views on HFC prices, inclusion of historical data in allocation methodologies, preference for suppliers, and stockpiling of HFCs for a smooth transition to new refrigerants. Respondents emphasize the importance of price in purchasing decisions and support stockpiling to ensure supply.
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HFC Stakeholder Survey December 2022
Methodology Causeway Solutions conducted an online survey of hydrofluorocarbon (HFC) stakeholders who would be impacted by U.S. EPA decisions regarding HFC allocations on behalf of a counsel to a group of importers focusing on the aftermarket. Overall, 287 responses from wholesalers, contractors, and HVAC maintenance companies were collected between November 29th and December 14th, 2022. Responses were collected utilizing the Qualtrics survey platform, and respondents were screened as being the best person to answer questions about their company s HFC use. Based on our expertise conducting representative surveys, we believe that the distribution and number of respondents correspond to an accurate sampling of stakeholders. Overall N= 287 Invitations sent 15,935 Response rate 1.8% MoE 5.7%
KEY TAKEAWAYS An overwhelming majority of respondents (98%) agree that the prices of HFCs are important for purchasing decisions. This indicates that keeping the market competitive is crucial for stakeholders. An overwhelming majority of respondents (83%) agree that the EPA should include 2020 and 2021 as part of any allocation methodology. Complementary to the point just above, a large majority of respondents (78%) agree that if the EPA excluded 2020 and 2021 in allocation calculations it would be disruptive to their business. An overwhelming majority of respondents (91%) would prefer to purchase HFCs from their current suppliers. This summarizes the previous points, showing the need for including recent history in any future allocation methodology, as suppliers in the past may no longer be in existence, or may not have the capability of serving more customers in an effective way. Respondents preferred using a time period of 2019-2021 for HFC allocations (43%) or a time period of 2011-2021 (41%).
Overwhelming Majority Note HFC Price Importance Price is very important when I make a decision about who to purchase HFC refrigerants from. 100% 90% 82% (n=236) 80% 70% 60% 50% 40% 30% 16% (n=46) 20% 10% 1% (n=2) 1% (n=2) 0% (n=1) 0% Strongly agree Somewhat agree Somewhat disagree Strongly disagree Unsure Source: Data from n=287 poll conducted by Causeway Solutions from November 29 December 14, 2022.
Overwhelming Majority Agree With Stockpiling Stockpiling HFCs is an important part of ensuring a smooth transition to next generation refrigerants and in helping to reduce costs to consumers by insuring enough supply of commonly needed HFC's such as R-410A. 100% 90% 80% 70% 56% (n=161) 60% 50% 40% 28% (n=80) 30% 20% 8% 4% 4% (n=22) 10% (n=12) (n=12) 0% Strongly agree Somewhat agree Somewhat disagree Strongly disagree Unsure Source: Data from n=287 poll conducted by Causeway Solutions from November 29 December 14, 2022.
Majority Agree With Having Dynamic Distributors The list of refrigerant distributors I purchase from is dynamic and has changed over the past few years. 100% 90% 80% 70% 60% 50% 38% (n=108) 40% 32% (n=93) 30% 15% (n=44) 20% 10% (n=30) 4% 10% (n=12) 0% Strongly agree Somewhat agree Somewhat disagree Strongly disagree Unsure Source: Data from n=287 poll conducted by Causeway Solutions from November 29 December 14, 2022.
Majority Agree Including 2020 & 2021 is Important Including HFC refrigerant imports and production from the years 2020 and 2021 is important in creating a more accurate market-share allocation program for 2024 and beyond. 100% 90% 80% 70% 59% (n=169) 60% 50% 40% 24% (n=69) 30% 20% 7% 6% 4% (n=19) 10% (n=18) (n=12) 0% Strongly agree Somewhat agree Somewhat disagree Strongly disagree Unsure Source: Data from n=287 poll conducted by Causeway Solutions from November 29 December 14, 2022.
Overwhelming Majority Agree EPA Should Include 2020 & 2021 The EPA should include recent 2020-2021 HFC activity as part of any methodology for allocating HFC allowances. 100% 90% 80% 70% 61% (n=174) 60% 50% 40% 30% 22% (n=63) 20% 7% 6% 5% (n=19) 10% (n=17) (n=14) 0% Strongly agree Somewhat agree Somewhat disagree Strongly disagree Unsure Source: Data from n=287 poll conducted by Causeway Solutions from November 29 December 14, 2022.
Majority Agree Excluding 2020 & 2021 Distorts Market Share Excluding 2020 and 2021 import and production statistics forces companies who gained market share in those years to give it back to companies who lost market share in those years. 100% 90% 80% 70% 60% 50% 41% (n=119) 40% 25% (n=72) 30% 18% (n=51) 20% 9% 7% (n=25) (n=20) 10% 0% Strongly agree Somewhat agree Somewhat disagree Strongly disagree Unsure Source: Data from n=287 poll conducted by Causeway Solutions from November 29 December 14, 2022.
Majority Think Excluding 2020 and 2021 is Disruptive If the EPA ignores changes in the market shares of HFC refrigerant suppliers that occurred in 2020-2021, it will be disruptive to my business, and I may have to revert back to purchasing from suppliers that are not as competitive as my current supplier. 100% 90% 80% 70% 60% 46% (n=131) 50% 40% 32% (n=92) 30% 20% 10% (n=29) 8% 4% (n=23) 10% (n=12) 0% Strongly agree Somewhat agree Somewhat disagree Strongly disagree Unsure Source: Data from n=287 poll conducted by Causeway Solutions from November 29 December 14, 2022.
Majority Agree With Analogous Smartphone Scenario If there was a government mandated allocation of smartphones, I believe that companies who manufacture phones such as the iPhone and Android should receive the market share based on the most recent market share data possible and shouldn't be punished for growing their market shares against companies such as Blackberry who had the majority of the market in the past. 100% 90% 80% 70% 60% 49% (n=140) 50% 40% 26% (n=76) 30% 20% 9% 8% 7% (n=27) (n=23) (n=21) 10% 0% Strongly agree Somewhat agree Somewhat disagree Strongly disagree Unsure Source: Data from n=287 poll conducted by Causeway Solutions from November 29 December 14, 2022.
Majority Agree That 2020 and 2021 Exclusion Punishes Companies Excluding 2020-2021 market share data in any future HFC allocation program will punish companies that invested in and grew their business in those years. 100% 90% 80% 70% 60% 50% (n=144) 50% 40% 28% (n=80) 30% 20% 9% 7% 6% (n=26) (n=20) 10% (n=17) 0% Strongly agree Somewhat agree Somewhat disagree Strongly disagree Unsure Source: Data from n=287 poll conducted by Causeway Solutions from November 29 December 14, 2022.
Overwhelming Majority Prefer Current HFC Suppliers I would prefer to purchase HFC refrigerants from the companies I have been purchasing from over the last few years (2019-2022). 100% 90% 80% 69% (n=199) 70% 60% 50% 40% 30% 22% (n=62) 20% 3% 3% 10% 2% (n=6) (n=10) (n=10) 0% Strongly agree Somewhat agree Somewhat disagree Strongly disagree Unsure Source: Data from n=287 poll conducted by Causeway Solutions from November 29 December 14, 2022.
Overwhelming Majority Want EPA to Use 11-21 or 19-21 Which years of HFC refrigerant production and imports do you believe would best reflect the current market share of refrigerant distributors in the United States? 2019 to 2021, 2011 to 2021, or 2011 to 2013? 100% 90% 80% 70% 60% 43% (n=122) 50% 41% (n=118) 40% 30% 13% (n=37) 20% 3% 10% (n=10) 0% 2011 to 2013 2011 to 2021 2019 to 2021 Unsure Source: Data from n=287 poll conducted by Causeway Solutions from November 29 December 14, 2022.
