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EPA Finalizes Significant New Use Rule for Motor Vehicle Refrigerant

In a letter to the U.S. EPA earlier this year, the Automotive Service Association (ASA) expressed concern with the substitution of HFO-1234yf because it poses some risk to those persons handling the product, particularly non-professionals or do-it-yourself (DIY) consumers.
By Shop Owner Staff
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The U.S. Environmental Protection Agency (EPA) has issued a significant new use rule (SNUR) under the Toxic Substances Control Act (TSCA) for the chemical substance 1-Propene, 2,3,3,3-tetrafluoro, also known as HFO-1234yf.

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The action requires persons who intend to manufacture, import or process the chemical substance for a use that is designated as a significant new use by this final rule to notify the EPA at least 90 days before commencing that activity. The EPA believes this action is necessary because the chemical substance may be hazardous to human health. The required notification would provide the EPA with the opportunity to evaluate the intended use and, if necessary, to prohibit or limit that activity before it occurs.
            
In a letter to the U.S. EPA earlier this year, the Automotive Service Association (ASA) expressed concern with the substitution of HFO-1234yf because it poses some risk to those persons handling the product, particularly non-professionals or do-it-yourself (DIY) consumers. ASA asked that the the EPA include both a certification process and an equipment requirement for any purchasers of HFO-1234fy due to the flammability of the proposed substitute.
            
The EPA significant new use rule states that the substance is to be used only as a refrigerant in new motor vehicles and that any other use must first be approved by the EPA. The agency is also considering a proposed rule that falls under the Significant New Alternatives Policy (SNAP) that would allow for the use of 1234yf as a substitute for R-12 in new motor vehicles.
            
Currently, the Clean Air Act requires the EPA to review alternatives for ozone-depleting substances and to approve of substitutes that do not present a risk more significant than other alternatives that are available. Under that authority, the SNAP program proposes to expand the list of acceptable substitutes for ozone-depleting substances (ODS). The proposed substitute is a non-ozone-depleting gas and consequently does not contribute to ozone depletion.
            
To view the full text of the final rule, visit ASA’s legislative website.

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When Your Shop Is Worth Much More Than You Thought

Although every sale of a shop in which I am involved has its own unique set of circumstances, which makes my job both very interesting and very challenging, Cowden Automotive stands out as particularly memorable because I was able to demonstrate to the long-time owner, Paul Cowden, that his business was worth about three times what he had initially thought.

By Art Blumenthal
Leveraging more than 30 years of experience as both an aftermarket business owner and aftermarket technology executive, Art Blumenthal LLC provides business intermediary and advisory services to both buyers and sellers of industry businesses of all sizes. Art is a member of IBBA (International Business Brokers Association, Inc.). For more information, or to initiate a no-obligation confidential consultation, visit www.art-blumenthal.com.
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Case Study: Owner of San Francisco-based Import Service Shop Delighted to Discover Just How Valuable His Business is to Qualified Buyers
I sometimes share case studies of the clients I have been able to assist in my role as an aftermarket business broker and provider of intermediary and advisory services. I do that when I think the story will provide a reader in similar circumstances with new insights or helpful information.
In the case of Cowden Automotive, Inc., I acted in a consulting capacity assisting the owner and his broker in valuing the business, creating a marketing plan, finding a qualified buyer, and arranging financing for the sale.
Although every sale of a shop in which I am involved has its own unique set of circumstances, which makes my job both very interesting and very challenging, Cowden Automotive stands out as particularly memorable because I was able to demonstrate to the long-time owner, Paul Cowden, that his business was worth about three times what he had initially thought.
Needless to say, delivering that kind of good news to a shop owner is a rewarding experience. Discovering that the sale of his business would result in his retirement nest-egg being substantially larger than he had ever thought was a fitting tribute to someone who had spent his entire working career as a busy automotive service shop owner.

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