Hudson Technologies, Inc. (NASDAQ: HDSN), announced that the Environmental Protection Agency (EPA) has issued a proposed rule that would reduce the allowances for U.S. consumption and production of Hydrochlorofluorocarbon-22 (HCFC-22). Specifically, the EPA is proposing to decrease annual HCFC-22 consumption allocations relative to the EPA’s December 2009 final rule (the “2009 Final Rule”) by a range of between 11 and 47 percent for calendar years 2012, 2013 and 2014. The EPA has indicated that a new final rule, which is expected to be issued later this year following a 30-day comment period and the EPA’s review and analysis of any comments received, will specify the exact reduction percentage relative to the 2009 Final Rule. The EPA is proposing to allocate fewer HCFC-22 allowances “in order to promote recovery and reclamation and encourage the transition to non-ODS (Ozone Depleting Substances) alternatives.” The EPA recently undertook an analysis of updated market conditions and received comments from refrigeration and reclamation industry participants, including Hudson, to gauge current market demand and reclaimer capabilities, as well as the existence and size of any surplus of HCFC-22. A large portion of the commenters requested that the EPA decrease consumption allowances for 2012-2014. In its discussion of the proposed rule, the EPA noted that “commenters stated the price of HCFC-22 is low, indicating that virgin supplies are not constrained to the extent that the Agency had anticipated.” The EPA also noted: “Since EPA is continuing to allow the use of existing HCFC-22 appliances manufactured prior to January 1, 2010, reused, recycled, and reclaimed HCFC-22 will become more valuable as the phaseout progresses. The demand for HCFC-22 to service existing equipment will provide an economic incentive to increase the quantities of recovered HCFC-22 available for reuse, recycling, and reclamation. Therefore, the Agency believes ... a lower virgin supply will further incentivize recovery and reclamation.”
The proposed rule has been published in the Federal Register, Volume 77, No. 2, page 237, and can be viewed through the following link: http://www.gpo.gov/fdsys/pkg/FR-2012-01-04/pdf/2011-33456.pdfAbout Hudson Technologies Hudson Technologies, Inc. is a leading provider of innovative solutions to recurring problems within the refrigeration industry. Hudson's proprietary RefrigerantSide ® Services increase operating efficiency and energy savings, and remove moisture, oils and other contaminants frequently found in the refrigeration circuits of large comfort cooling and process refrigeration systems. Performed at a customer's site as an integral part of an effective scheduled maintenance program or in response to emergencies, RefrigerantSide ® Services offer significant savings to customers due to their ability to be completed rapidly and at higher purity levels, and can be utilized while the customer's system continues to operate. In addition, the Company sells refrigerants and provides traditional reclamation services to the commercial and industrial air conditioning and refrigeration markets. For further information on Hudson, please visit the Company's web site at www.hudsontech.com. Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 Statements contained herein which are not historical facts constitute forward-looking statements. Such forward-looking statements involve a number of known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, but are not limited to, changes in the markets for refrigerants (including unfavorable market conditions adversely affecting the demand for, and the price of, refrigerants), the Company's ability to source refrigerants, regulatory and economic factors, seasonality, competition, litigation, the nature of supplier or customer arrangements which become available to the Company in the future, adverse weather conditions, possible technological obsolescence of existing products and services, possible reduction in the carrying value of long-lived assets, estimates of the useful life of its assets, potential environmental liability, customer concentration, the ability to obtain financing, risks associated with the Company’s joint venture which include the ability of the parties to perform their obligations under the joint venture agreement, any delays or interruptions in bringing products and services to market, the timely availability of any requisite permits and authorizations from governmental entities and third parties as well as factors relating to doing business outside the United States, including changes in the laws, regulations, policies, and political, financial and economic conditions, including inflation, interest and currency exchange rates, of countries in which the joint venture may seek to conduct business, and other risks detailed in the Company's periodic reports filed with the Securities and Exchange Commission. The words "believe", "expect", "anticipate", "may", "plan", "should" and similar expressions identify forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date the statement was made.