California Code of Regulations
Title 17 - Public Health
Division 3 - Air Resources
Chapter 1 - Air Resources Board
Subchapter 10 - Climate Change
Article 4 - Regulations to Achieve Greenhouse Gas Emission Reductions
Subarticle 4 - Small Containers of Automotive Refrigerant
Section 95366 - Container Deposit and Return Program Requirements

Universal Citation: 17 CA Code of Regs 95366

Current through Register 2024 Notice Reg. No. 38, September 20, 2024

(a) Except for small containers of automotive refrigerant exempted under section 95364 of this subarticle, on or after January 1, 2010, and subject to the provisions of section 95367, a retailer of a small container of automotive refrigerant that is subject to the requirements of this subarticle must:

(1) Collect a deposit from the consumer or charge the consumer's account for each small container of automotive refrigerant at the time of sale.

(2) The amount of deposit on each small container is set at $10.

(3) Return the deposit to the consumer, or credit the consumer's account when the consumer returns a used small container of automotive refrigerant to the retailer, provided that the consumer returns the used container of refrigerant to the retailer where purchased within 90 days of purchase, submits proof of purchase (e.g., cash register receipt), and provided that the container has not been breached. A retailer may return the deposit at his discretion if more than 90 days have elapsed, the consumer does not have a receipt, if the consumer returns the container to a location other than the place of purchase, or if the container has been breached.

(4) All deposits collected under section 95366(a)(1) that are not returned or refunded to consumers under section 95366(a)(3) must be transferred to the manufacturer or its designee. Transfers must be made annually by April 1 and include all such deposits collected from January through December of the preceding calendar year.

(5) If the amount of deposits that a retailer returns or refunds to consumers under section 95366(a)(3) exceeds the amount of deposits collected by that retailer under section 95366(a)(1) during the time period beginning with April 13, 2017 and ending December 31, 2017, that retailer may elect to defer the transfer of the deposits collected under 95366(a)(1) during the specified time period until the immediately following reporting period. A retailer electing to utilize this option must include such deferred deposits in the deposits required to be transferred to manufacturers or their designees under section 95366(a)(4) in the subsequent reporting period and must additionally indicate that it has elected to utilize this option in the reports it is required to maintain pursuant to section 95369(b).

(6) Accumulate and store any used small container of automotive refrigerant for transfer to the manufacturer or its designee, and segregate breached returned small containers from non-breached returned small containers. The manufacturer will, along with each participating retailer/distributor, identify or provide collection bins, totes, or boxes that work in a complementary fashion within each retailer/distributors' current established distribution best practice for like merchandise, facilitating their ability to segregate breached small containers. Likewise, it will be the manufacturer's responsibility to identify each retailer/distributor's most complementary manner of transport and return of returned small containers of automotive refrigerant to the recovery/recycle facilities.

(b) Except for small containers of automotive refrigerant exempted under section 95364 of this subarticle, on or after January 1, 2010, and subject to the provisions of section 95367, a manufacturer or its designated return agency must:

(1) Collect a deposit on each small container of automotive refrigerant at the time of sale to a distributor or retailer.

(2) Accept from a retailer or distributor used small containers of refrigerant certified under section 95362.

(3) Maintain a log of returned used containers by SKU, retailer, and return date.

(4) Refund to the retailer or distributor the full amount of the deposits collected under section 95366(b)(1) for all used small containers of automotive refrigerant certified under section 95362 that were returned. A manufacturer or designated return agency must count and record the number of small containers of automotive refrigerant that have been breached.

(5) Ensure that all deposits that are not returned or refunded by manufacturers to retailers and distributors under section 95366(b)(4) and all deposits collected by retailers that are transferred to manufacturers under section 95366(a)(4) will accrue to an account managed by the manufacturer or its designee to be used solely as described in section 95366(b)(6) for the purpose of enhancing the consumer education program or other programs, projects, and measures reducing greenhouse gas emissions as approved by the CARB. The manufacturer or its designee must report and account for how these account funds are spent in accordance with section 95367(a)(5) of this subarticle.

(6) Separately account for any funds attributable to unclaimed deposits, expend those funds only on enhanced educational programs or other programs, projects, and measures reducing greenhouse gas emissions approved by the Executive Officer. The enhanced educational programs are designed to inform consumers of measures to reduce GHG emissions associated with do-it-yourself recharging of MVAC systems. The manufacturers or their designees are to provide to CARB an accounting of the collection and expenditures of these funds as described in section 95367(a)(5). Examples of enhanced education programs include, but are not limited to: improved Internet website support, development of additional educational materials, training and outreach to the consumer via retailers, development and usage of videos and other means of demonstrations at retail sites. Examples of programs, projects, and measures reducing greenhouse gas emissions include, but are not limited to: improved recycling or disposal of old refrigerants, and research, evaluation, and promotion of low GWP refrigerants. A manufacturer or its designee must provide a description of any proposed enhanced educational programs in its application for certification of small containers of automotive refrigerant, and must obtain the Executive Officer's approval before it can expend funds attributable to unclaimed deposits on that enhanced educational program. For other programs or projects, a manufacturer or its designee must provide a description and obtain the Executive Officer's approval before it can expend funds attributable to unclaimed deposits.

(7) A manufacturer may designate an entity to collect consumer deposits pursuant to section 95366(a)(4), to spend these funds on enhanced education programs or other programs, projects, and measures reducing greenhouse gas emissions as approved by the CARB pursuant to sections 95366(b)(5) and 95366(b)(6), and fulfill reporting requirements pursuant to sections 95367(a)(5) and 95367(a)(6). This designation is subject to advance review and approval by CARB's Executive Officer.

(8) No later than January 1, 2030, all unclaimed deposits held by a manufacturer, or their designee under section 95366(b)(5), must be exhausted.

(c) A manufacturer may designate an additional facility to receive and store returned used small containers of automotive refrigerant and to pay consumer refunds specified in section 95366(a) and (b) at the time a container is returned. Such a facility may be either a retail store or an entity that is not affiliated with a retail store.

(d) A manufacturer or its designee must coordinate the collection of used small containers of automotive refrigerant from retailers and any designated return agencies. To reduce the burden on the retailer, the manufacturer shall, along with each participating retailer/distributor, identify or provide collection bins, totes or boxes that work in a complementary fashion within each retailer/distributors' current established distribution best practice for like merchandise. Likewise, it shall be the manufacturer's responsibility to identify each retailer/distributor's most complementary manner of transporting returned small containers of automotive refrigerant to the recovery/recycle facilities.

(e) A manufacturer or its designee must recover any refrigerant remaining in the returned small containers at a facility registered with the CARB as described in "Certification Procedures for Small Containers of Automotive Refrigerant" adopted on July 20, 2009, and last amended on January 17, 2017, which is incorporated by reference herein. The facility must employ good engineering practices to avoid loss of refrigerant to the atmosphere. The refrigerant must be recovered, recycled, reclaimed, or removed to a licensed waste disposal facility.

Note: Authority cited: Sections 38501, 38505, 38510, 38560, 38560.5, 38562.2, 38566, 38580, 39600 and 39601, Health and Safety Code. Reference: Sections 38501, 38505, 38510, 38550, 38551, 38560, 38560.5, 38562.2, 38566, 39003, 39500, 39600 and 39601, Health and Safety Code.

Note: Authority cited: Sections 38501, 38510, 38560, 38560.5, 38580, 39600 and 39601, Health and Safety Code. Reference: Sections 38501, 38505, 38510, 38550, 38551, 38560, 38560.5, 39003, 39500, 39600 and 39601, Health and Safety Code.

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