Hudson Technologies, Inc. (NASDAQ: HDSN), reports that the United States Environmental Protection Agency (EPA) has revised and extended the “No Action Assurance” issued in January 2012 to importers and producers of Hydrochlorofluorocarbon-22 (HCFC-22). With this revision, and until the issuance of a final rule, the EPA has reduced the amount of HCFC-22 that can be manufactured and/or imported in 2013 to 39 million pounds. This action provides for a greater reduction than as set forth in the EPA’s proposed rule which provides for minimum allowances of 45 million pounds for 2013. EPA increased the reduction for 2013 to accommodate for potential recoupment allowances claimed to have been lost by certain allowance holders under the EPA’s 2009 Rule. We believe that the final rule, which should cover the periods, 2012, 2013 and 2014, will provide at least 6 million more pounds of allowances for 2013.
Kevin Zugibe, Chairman and Chief Executive Officer commented, “We are very pleased that the EPA’s No Action Assurance has reduced allowances essentially in line with our expectations. Initially, the 39 million pounds is below the minimum level of 45 million pounds set forth in the EPA's proposed rule covering 2013. We believe it is likely that the final rule, which we expect to see sometime in 2013, will provide for the production or importation of at least 45 million pounds of R-22 for 2013, as compared to 55 million pounds for 2012. We are pleased that the EPA continues to make progress toward the complete phase out of HCFC-22. With EPA’s issuance of this revised No Action Assurance, we believe we will continue to see growth in the reclamation market, with recovered refrigerants filling the supply gap that is created with the limitation of virgin R-22 production.”
A copy of the EPA’s No Action Assurance can be found at: http://www.epa.gov/ozone/title6/phaseout/2013_HCFC_NAA.pdf.
About 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.
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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, the Company’s ability to successfully integrate any assets it acquires from third parties into its operations, 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.