Point Source: Helping Small Businesses: Project Tests Refigerant Oil Recycling

Helping Small Businesses Find Practical Ways to Meet Air Emission Standards
Vol. 1, No. 3

Table of Contents

Project Tests Refrigerant Oil Recycling

by Jim Olson, Waste Management Specialist

Refrigeration and HVAC (heating, ventilation, and air conditioning) system lubricating oils entrain refrigerants. In systems that use halogenated hydrocarbon refrigerants (CFC and HCFC), oils are in contact with chlorine and fluorine compounds (total halogens). Initial screening has found total halogen levels as high as 50,000 parts per million (ppm) in representative samples of used refrigerant oil. At these elevated levels, conventional used oil recycling options are not available.

Federal regulations (40 CFR 266, Subpart E) classify used oil into two categories, specification and off-specification, based on the criteria in table 1:

Table 1. Oil Constituents

Constituent/propertyAllowable Level
Arsenic5 ppm maximum
Cadmium2 ppm maximum
Chromium10 ppm maximum
Lead100 ppm maximum
Flash Point100º F minimum
Total Halogen4,000 ppm maximum*
*Used oil containing more than 1,000 ppm total halogens is presumed to be a hazardous waste unless the generator can prove the oil was not mixed with a hazardous waste (i.e., halogens are present as ingredients or from using oil rather than intentionally mixing used oil with a hazardous waste.)

Used oil that exceeds any of the allowable levels is termed off-specification oil and, because of increased regulatory restriction, is undesirable for used oil recycling companies and burners. While on-specification used oil can be recycled at no or very low cost, off-specification used oil must be disposed of by a hazardous waste management company at a significantly greater expense.

Furthermore, as a hazardous waste, off-specification used oil must be stored and inventoried in compliance with established EPA regulations. If more than 220 pounds (approximately 25 gallons) is generated during one month, it may only be stored for 180 days prior to off-site disposal.

The Refrigerant Oil Recycling Demonstration Project was initiated to develop a simple, cost effective method to reduce the total halogen concentration in used refrigerant oil to levels less than 4,000 ppm (ideally 1,000 ppm).

Based on EPA parameters, treated oil that meets these action levels should be acceptable for recycling through conventional, low cost, and available used oil recycling companies and drop-off locations. If successful, this method will allow the HVAC technicians to transport used refrigerant oil from the repair site to the shop for treatment.

The following criteria were considered when developing the halogen reduction methodology described in this study:

In order to accomplish all three goals, the project team selected a variation of vacuum distillation. Used refrigerant is contained in a 2.5 gallon, thick-walled gasoline can. A refrigerant fitting was brazed into the can lid and sealed with a rubber gasket to create an air tight container. The container is connected to refrigerant/recycling equipment with a conventional gage set. The oil is heated by placing the container on a common electric hot plate. With the exception of the container and hot plate, all of the above system components are standard equipment already available to the HVAC technician.

Test runs were set up using representative samples of used refrigerant oil subjected to the following conditions (models):

An oil sample was analyzed for total halogen concentration at the conclusion of each run and compared with a control sample to/ establish effectiveness of each test mode.

Figure 1 shows the analytical results for R-12 and R-22 used refrigerant oil and one composite sample of used vacuum pump oil.

Figure 1 [(see source document)]

Jim Olson and Rick Klein prepare a refrigerant oil sample for treatment. [(see source document)]

Control samples from all three oil types exceeded the total halogen action level concentration of 1,000 ppm. Halogen concentration reduction in the vacuum-only mode showed little success.

Heat-only modes of operation accomplished 75 percent to 90 percent halogen reduction efficiency. In all three cases, concentrations below the project action level of 1,000 ppm were obtained. (The minimum level of detectability for total halogen analysis ranges from 500 to 1,000 ppm. As a result, halogen levels below the detectable range were reported as "less than" values.)

While the heat-only mode proved adequate in terms of halogen reduction goals, this method does not allow recovery of released halogen compounds.

Halogen recovery was accomplished by using refrigerant recovery/recycling equipment to pull a partial vacuum on the heated used oil container. The recovered gases were then condensed and collected in a refrigerant tank. While the vacuum/heat mode accomplishes better overall environmental control by eliminating halogen release to the environment, it provided no better halogen reduction effectiveness than the heat- only mode.

Initial study results indicate that halogen reduction effectiveness is dependent primarily on temperature. Temperatures of 60º to 100ºC for time periods of up to four hours, reduced initial used oil halogen levels to less than 1,000 ppm in all test samples. The effect of partial vacuum on halogen reduction was not significant, but is recommended as a means to capture the released halogen gases.

Additional tests are planned to verify the above results and to test the process effectiveness on other refrigerant oils such as R-11, R-113 and R-502.

Upon testing completion, the project team will prepare a guide to refrigerant oil recycling. The guide will explain, in clear terms, how technicians can recover refrigerant from oils, and successfully recycle the oil.

This project is being conducted through the Small Business Pollution Prevention Center at the University of Northern Iowa. The SBPPC is also conducting applied research in other areas. For a complete list of applied research activities, please call the Iowa Waste Reduction Center at 800/422-3109.

Return to the Table of Contents

SBDC's Provide Financial Counseling and Other Assistance

by Lyle Bowlin, SBDC Director, University of Northern Iowa

Small Business Development Centers (SBDC) have been helping small businesses in Iowa successfully manage their firms since 1982. During this time, more than 46,000 Iowans have turned to the Iowa SBDC for counseling help in a variety of areas. SBDC service areas include business expansion, business planning, market planning, accounting and records, technology transfer, business start-up, international trade, and sources of capital.

Identifying sources of capital is an area that many small business people need help in as they start or expand their businesses. Financing is never easy and often misunderstood. The Small Business Administration (SBA) is a major source of funding for small businesses. It does not make direct loans to businesses but rather guarantees part of the loan through a lending institution.

After a business owner prepares current business and personal financial statements, lists collateral to be offered as security for the loan requested, and states the amount of the loan requested, the owner should take the material to the bank. The business should ask for a direct loan. If turned down, it should then ask the bank to make the loan under the SBA's Loan Guarantee Plan.

The SBA can guarantee up to 90 percent of a business loan under $155,000, and 85 percent for loans in excess of $155,000 up to a maximum guarantee of $750,000. On loans of less than 7 years, banks can charge up to 2 1/4 percent above the New York Prime Rate (loans 7 years or longer, the maximum is 2 3/4 percent above prime). These loans may be set up on a fixed or variable rate basis and can be used for most business purposes.

SBA loans may not be used to pay off owners of the business or purchase a business from a relative (including in-laws).

Businesses primarily operating to rent or lease out space for residential or business purposes, publishing companies, and media enterprises are not eligible for SBA guaranteed loans. When considering a loan, the SBA looks at a firm's ability to repay, personal injection of cash, management experience and past business financial data.

The SBA also offers a variety of special loan program. Local Development Company Loans are available to local citizens' groups whose aims are to improve the economy in their areas. Loan proceeds may be used for plant acquisition, construction, conversion or expansion.

A Seasonal Line of Credit Loan is a short-term program to finance seasonal up-swings in inventory and receivable needs. An Export Revolving Line of Credit is a short-term program to finance labor and materials needed for manufacturing or purchasing goods or services prior to being shipped.

There are several other sources of financial assistance available for small businesses. The Self Employment Loan Program (SELP) provides low interest loans of up to $10,000 at 5 percent interest to low income Iowans for start up or expansion of small business ventures.

Return to the Table of Contents

Washington SBAP Surveys Small Business' Need for Assistance

by Bernard Brady, Washington State Department of Ecology

After establishing a technical Business Assistance Unit, the state of Washington's Air Quality Program conducted a statewide survey to assess the type of assistance that would be most effective. Washington state law requires this assistance to focus on small business but not available to the entire regulated community.

The Survey

Business Assistance Unit staff members telephone-surveyed 750 businesses located in towns with populations of about 10,000. Some types of respondents include surface coaters, woodworking operations, printers, boat builders, photographic processors and automotive repair shops. Most (98 percent) employed fewer than 100 people, while 90 percent employed fewer than 20 people.

Rather than asking the traditional "What do you need?" question, respondents were quizzed about air regulatory requirements.

The rationale being that businesses need to know the rules to know the type of assistance they need. Staff experience indicated that small businesses may be unaware of all regulatory requirements.

The Results

The survey results indicated the majority of the businesses surveyed have a poor understanding of air requirements. This implies a significant need for educating the business community on general air laws and how to comply with specific regulations on an individual business basis.

The businesses were asked to choose a provider of technical assistance. Their choices were:

Survey respondents selected trade suppliers by 40 percent. Almost as many chose state and local regulatory agencies. About 10 percent preferred trade associations.

The survey also asked the respondents to select their most important expectations of technical assistance. Expertise, accuracy, and competence ranked highest. Privacy did not appear to be a major concern. In terms of delivering assistance, respondents indicated written communication and on-site consultation were most effective. Workshops and video presentations were not highly preferred.

Reaction

From the results, staff members developed strategies for providing effective technical assistance.

The survey report covers results in more detail. If you would like a copy, contact Bernard Bray at 206/407-6803 for further details.

The Targeted Small Business Financial Assistance Program (TSB) is designed to assist in the creation and expansion of minority and women owned businesses. The program provides direct loans and matching grants to certified Targeted Small Businesses.

The Linked Investment Program (LINK) is offered by the State Treasurer's Office and open to any certified Targeted Small Business. This program enables the targeted small business to shop for low interest loans from Iowa banks, credit unions, and savings and loans.

The Iowa Product Development Corporation (IPDC) provides infusion of financial aid for invention and innovation where such aid is not reasonably available from conventional sources. Applicants must represent a venture that will maintain an Iowa presence, meaning the product must be manufactured in Iowa.

The Community Economic Betterment Account (CEBA) is designed to increase direct and indirect employment opportunities for Iowans. The program structure provides financial assistance to businesses that require assistance to businesses that require assistance in order to create new job opportunities or retain existing jobs that are in jeopardy. CEBA funds are only a small portion of a financial package.

These are a few of the many programs that are available to help financial Iowa businesses. SBA services are available nationally and other states have similar financial aid programs.

SBDCs and SBA offices are located nation-wide and are knowledgeable of all federal and state financing programs available to small businesses.

This material is based upon work supported by the U.S. Small Business Administration under award number SB-8D-92-007-02. Any opinions, findings and conclusions or recommendations expressed in this publication are those of the authors and do not necessarily reflect the views of the U.S. Small Businesses Administration.

Iowa Waste Reduction Center
75 Biology Research Complex
University of Northern Iowa
Cedar Falls, IA 50614-0185

Return to the Table of Contents


Last Updated: January 29, 1996