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DEPARTMENT OF ENVIRONMENT, MALAYSIA OZONE PROTECTION SECTION TENTH ANNUAL FINANCIAL AGENT WORKSHOP WASHINGTON, D.C. JUNE 27-28, 2006

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DEPARTMENT OF ENVIRONMENT, MALAYSIA

OZONE PROTECTION SECTION

TENTH ANNUAL FINANCIAL AGENT

WORKSHOP

WASHINGTON, D.C.

JUNE 27-28, 2006

DEPARTMENT OF ENVIRONMENT, MALAYSIA

OZONE PROTECTION SECTION

MALAYSIA

National Strategies AndEfforts In CFCs Phase-Out

(MAC Service Sector)

DEPARTMENT OF ENVIRONMENT, MALAYSIA

OZONE PROTECTION SECTION

Department Of Environment(DOE)

National SteeringCommittee on

the Ozone Layer Protection

IndustrialWorking Groups

The OzoneProtection

Section

Technical Committee

on ODS

PMU : Project Management Unit

a) Strengthening of Institutional Frameworks

DEPARTMENT OF ENVIRONMENT, MALAYSIA

OZONE PROTECTION SECTION

b) Government’s Legislations and Regulatory Controls in relations to MAC Sector

The Customs Duty (Amendment) No 35 Order, 1989.

Administrative Order By MIDA Dec 1992.

Application Permit (AP) system by MITI on quotas for ODS importations.

Environmental Quality (Prohibition on the use of CFCs and other gases as propellants and blowing agents) Order 1993.

Environmental Quality (Refrigerant Management) Regulations 1999 and Environmental Quality (Refrigerant Management) (Amendment) Regulations 2004.

DEPARTMENT OF ENVIRONMENT, MALAYSIA

OZONE PROTECTION SECTION

Environmental Quality (Refrigerant Management) Regulations 1999 and Environmental Quality (Refrigerant Management)

(Amendment) Regulations 2004It came into force on 1st January 2000 and 1st December 2004.

Amendment is being made so as to make it specifically for the MAC service sector.

It prohibits the use of Annex A, Group 1 (CFC-12 included), ODS as refrigerant in any new refrigeration and cooling systems.

Any person who wishes to handle CFC-12 refrigerant must undergo AN APPROVED TRAINING in refrigerant recovery and recycling and must also possess AN APPROVED RECOVERY AND RECYCLING EQUIPMENT.

No Venting of CFC refrigerant into the atmosphere.

No moving of ODS in and out of Malaysia without the approval of related authorities.

DEPARTMENT OF ENVIRONMENT, MALAYSIA

OZONE PROTECTION SECTION

Why control of the CFC-12 consumption at MAC Service Sector is important?

MAC Manufacturing Sector:

No More Production of CFC system from the plant.

Service Sector:

Consumption is still very high. Main Reasons:1.Venting of CFC122. Reverse Retrofit

Ref (mfg)2%

MAC (Mfg)

0%

Ref (Service)

10%

MAC (Service)

88%

Ref (mfg) Ref (Service)MAC (Service) MAC (Mfg)

DEPARTMENT OF ENVIRONMENT, MALAYSIA

OZONE PROTECTION SECTION

National Activities Under the CFC Phase OutProgram for MAC Service Sector

MAC Service Sector: CFC 12 Phase-out Program

DOE/WORLD BANK

GROUP COORNINATOR<GC>

Appointment

Train-The-TrainersProgram

WorkshopTechnicians

Certifications

Financial Subsidy

for RR Machines &MAC Service Tools

Operation of theVoucher Scheme

30 ATCS 3000 w/shops

DEPARTMENT OF ENVIRONMENT, MALAYSIA

OZONE PROTECTION SECTION

Phase I : Train the Trainer (ATCs)

• Main Purpose:– To select 30 competent

MAC service workshops as Authorized Training Centers (ATCS) or Trainers to other workshops.

• These selected ATCS would in turn train 3000 workshops.

DEPARTMENT OF ENVIRONMENT, MALAYSIA

OZONE PROTECTION SECTION

ATC Workshop Accreditation

• 30 ATCS had been selected & accredited by the DOE.

• These ATCS are the recognized Workshops by DOE to conduct trainings for other workshops.

• The trainings would be part of the continuous workshops certification program in the country by the Government.

DEPARTMENT OF ENVIRONMENT, MALAYSIA

OZONE PROTECTION SECTION

Phase II : Certification of the Service Technicians By the ATCs

• Main objectives:– To increase the technical

capacity of MAC technicians.

– To establish good workshop practices.

– To create public awareness on ozone issues.

• MAC service workshops would be required to send their service technicians for 2-day training sessions with the ATC in their respective regions.

• Upon passing the trainings, the Technicians would be awarded certificate by DOE.

DEPARTMENT OF ENVIRONMENT, MALAYSIA

OZONE PROTECTION SECTION

TRAINING GUIDELINES :a) Based on regional basis

Training by ATC shall confine to their respective regions to avoid complication and also for ease of ATC performance monitoring.

By regions, it would provide some flexibility to the workshop technicians.

There are 6 training regions :Northern Region : (Perlis / Kedah / Penang / Perak : 6 ATC)

Central Region : (Selangor / Kuala Lumpur : 10 ATC)

Southern Region : (Negeri Sembilan / Melaka / Johor : 6 ATC)

East Coast Region : (Pahang / Terengganu / Kelantan : 4 ATC)

Sarawak : 2 ATC

Sabah / Labuan : 2 ATC

DEPARTMENT OF ENVIRONMENT, MALAYSIA

OZONE PROTECTION SECTION

b) Registration of workshop technicians with the ATC :

No restriction in terms of the no of technicians from ONE workshop who wish to be registered with the ATC so long as they met the following registration requirements :

The applicant has a minimum of ONE Year working experience as technician or mechanic in the field of MAC service sector.

The applicant must be 18 years old and above.

The applicant is attached to a legal business entity where its principal activity is in the service and maintenance of MAC.

DEPARTMENT OF ENVIRONMENT, MALAYSIA

OZONE PROTECTION SECTION

MAC Service Technician Registration Format

Form 1

under

1) NAM E O F APPLICANT :

I/C NO :

AG E:

2) NAM E O F CO M PANY :

ADDRESS:

TEL:FAX:

CO M PANY REG ISTRATIO N NO :

3) W O RKING EXPERIENCE:

4) DECLARAT IO N: I, declare that the abov e inform ations are true to the best of m y knowledge

(S ignature of Applicant) (Date )

5) VERIF ICAT IO N O F W O RKSHO P O W NER:

(S ignature of O wner) Co Chop & Date

6) REG IST RAT IO N W IT H:

Nam e of Authorized Training Centre (ATC):ATC Ref No:S ign & Chop by ATC:

PO SIT IO N NO O F YEARSNAM E O F CO M PANY

T RAIN ING PRO G RAM M E REG IST RAT IO N FO RM

FO R SERVICE T ECHNIC IAN

M ALAYSIA NAT IO NAL CFC PHASE-O UT PLAN FO R M AC SERVICE SECT O R

PHO TO G RAPH

DEPARTMENT OF ENVIRONMENT, MALAYSIA

OZONE PROTECTION SECTION

~ MALAYSIA ~

OPERATIONAL PROCEDURES :

RECOVERY AND RECYCLING MACHINES.

MAC TOOLS.

FINANCIAL SUBSIDY AND IMPLEMENTATION OF VOUCHERS SCHEME FOR :

DEPARTMENT OF ENVIRONMENT, MALAYSIA

OZONE PROTECTION SECTION

FINANCIAL SUBSIDY :

For The MAC Service Workshops which have at least one qualified technician trained under the ATC program could be considered for financial subsidy in their purchase of the followings :

R & R.

MAC Service Tools.

From the Qualified Suppliers.

The amount of subsidy and Quantity would depend on the budget allocated.

DEPARTMENT OF ENVIRONMENT, MALAYSIA

OZONE PROTECTION SECTION

OPERATION OF VOUCHER SCHEME :

The operation of financial subsidy is through a voucher scheme.

What is a Voucher ?A grant to be provided to the beneficiary (as a rebate) for acquisition of equipment.

Beneficiaries select its own supplier from the list of qualified suppliers.

It is based on open market concept.

DEPARTMENT OF ENVIRONMENT, MALAYSIA

OZONE PROTECTION SECTION

ELIGIBILITY CRITERIA FOR

FINANCIAL SUBSIDY/VOUCHER

FOR R&R/MAC TOOLS

DEPARTMENT OF ENVIRONMENT, MALAYSIA

OZONE PROTECTION SECTION

STEP 1 : MAC WORKSHOPS CERTIFICATION

REGISTRATION OF MAC SERVICE TECHNICIANS TO THE RESPECTIVE ATC.

ATTEND 2-DAY TRAININGS, TEST AND HANDS-ON ASSESSMENT CONDUCTED BY THE ATC.

PASSED THE NECESSARY THEORY AND EVALUATION TESTS.

DEPARTMENT OF ENVIRONMENT TO ISSUE THE CERTIFICATE OF TRAINING TO THE SUCCESSFUL CANDIDATE.

THE WORKSHOP WITH THE CERTIFIED SERVICE TECHNICIAN WOULD NOW BE ELIGIBLE TO APPLY FOR FINANCIAL SUBSIDY.

DEPARTMENT OF ENVIRONMENT, MALAYSIA

OZONE PROTECTION SECTION

STEP 2 : SUBMISSION OF VOUCHER APPLICATION (FORM 2)

THE NAME OF WORKSHOP / OWNER.

PRINCIPAL BUSINESS ACTIVITY (PRIORITY SHALL BE GIVEN TO MAC SERVICE AND REPAIRS WORKSHOPS).

THE TYPE OF MAC SYSTEM FREQUENTLY SERVED BY THE APPLICANT (R-12 OR R-134A).

THE TYPE OF TOOLS AND EQUIPMENT CURRENTLY POSSESSED (IS IT SUITABLE OR SUFFICIENT TO CATER FOR ITS OPERATIONS?).

NUMBER OF TECHNICIANS EMPLOYED : TO DETERMINE THE SIZE AND CAPACITY OF THE APPLICANT.

(SAMPLE FORM IS ATTACHED)

THE FORM INCLUDE THE FOLLOWING INFORMATION REQUIRED :

DEPARTMENT OF ENVIRONMENT, MALAYSIA

OZONE PROTECTION SECTION

Workshop Voucher Application Format

Form 2

Nam e of W orkshop:

Address:

Note: Please tick or fill up the information as and where appropriate

1 W hat is your Principal Business ?

Serv icing of Accessories OthersAuto Air Cond (Audio, Tyres etc) Please specify:

2 W hat is the estim ated percentage of your total annual sales turnover ?

Auto Air Conditioning Serv ice & repairs: %

3 How m any vehicles com es to your shop for auto air cond serv icing per week, on the average ?

v ehicles

4 W hat is the ratio of these vehicles intalled with R12 air cond system & R134a System ?

R 12 System R 134a System Others:Ex: Hydrocarbon etc

% % %

5 Do you posess the following equipm ent & tools:

Yes/No Units R12/R134a1 R & R

2 Vacuum Pum p

3 Gauge Manifolds

4 Leak Detector

5 Charging Cylinders

Signed & Chop by W orkshop Owner

Date:

Pre-Registration Survey

DEPARTMENT OF ENVIRONMENT, MALAYSIA

OZONE PROTECTION SECTION

STEP 3 : SELECTION OF VOUCHERS ENTITLEMENT

THIS IS NEEDED IN EVENT THE APPLICATIONS EXCEED THE NUMBER OF VOUCHERS TO BE ALLOCATED.

OTHERWISE, IT SHOULD BE BASED ON “FIRST-COME-FIRST-SERVED BASIS”.

THE SELECTION PROCESS IS CARRIED OUT BY DEPARTMENT OF ENVIRONMENT.

DEPARTMENT OF ENVIRONMENT, MALAYSIA

OZONE PROTECTION SECTION

STEP 4 : THE ELIGIBILITY CRITERIA GUIDELINES

THE WORKSHOP MUST BE A LEGAL BUSINESS ENTITY.

THE PRINCIPAL ACTIVITY MUST BE MAC SERVICE AND REPAIRS.

OPERATION OF BUSINESS IS CONDUCTED IN THE PROPER BUILDING / PREMISE.

MAC SERVICE WORKSHOP MUST HAVE AT LEAST ONE CERTIFIED TECHNICIAN AT ANY ONE TIME CAPABLE OF HANDLING THE R&R EQUIPMENT AND MAC TOOLS.

THE SCALE OF ITS CURRENT OPERATION : DOES IT JUSTIFY FOR ADDITIONAL SET OF EQUIPMENT ?

THE NATURE OF ITS BUSINESS OPERATION : IS IT A FRANCHISE OR NORMAL WORKSHOP ? THE FORMER HANDLES MOST OF THE TIME R-134A SYSTEM, WHILE THE LATER ALL MIXES OF R-12, R-134A. ETC.

THE WILLINGNESS OF THE WORKSHOP TO COMMIT IN THIS PROGRAM AND MEETING THE FINANCIAL OBLIGATIONS IN THE PURCHASE OF THE TOOLS AND EQUIPMENT.

DEPARTMENT OF ENVIRONMENT, MALAYSIA

OZONE PROTECTION SECTION

STEP 5 : ALLOCATION AND DISTRIBUTION OF THE VOUCHERS

SHOULD REFLECT THE ACTUAL VEHICLE-POPULATION-DENSITY DISTRIBUTION THROUGHOUT THE COUNTRY.

ALLOCATION SHOULD BE BASED ON REGIONAL BASIS.

DISTRIBUTION OF VOUCHERS SHOULD BE BATCHES WITH DIFFERENT COLOUR CODES FOR DIFFERENT BATCHES.

THE VOUCHERS SHOULD BE ATTACHED WITH TWO VALIDITY DATES :

ONE FOR THE CONFIRMATION OF PURCHASE. EXAMPLE : THE MODEL, BRAND AND SUPPLIER OF THEIR CHOICE.

THE OTHER FOR THE DELIVERY AND COMMISSIONING (THIS IS TO AVOID THE BENEFICIARY WORKSHOP’S LAST MINUTE CONFIRMATION AT THE EXPIRY DATE AND GIVING NO TIME FOR DELIVERY.

DEPARTMENT OF ENVIRONMENT, MALAYSIA

OZONE PROTECTION SECTION

DOE/GC

ATC ATC ATC

Workshops Workshops WorkshopsWorkshops

Q/Suppliers

Vouchers

Voucher + PO

Voucher + Invoices

D/O & Invoice

1.ATC train the w/shop. Upon successfully completed the course and met the criteria of vouches application, the w/shop would be given cert & voucher.

Certificate

2.Workshop would forward the voucher to the QS with official PO

3.QS would issue DO & Invoice upon delivery of equipment to the workshop

4. QS would present the voucher to GC/DOE together with the documents for payment

VOUCHER MECHANISM

DEPARTMENT OF ENVIRONMENT, MALAYSIA

OZONE PROTECTION SECTION

LESSONS LEARNED ~ CERTIFICATIONSTRAINERS MUST BE ABLE TO COMMUNICATE IN THE LOCAL LANGUAGES / DIALECTS FOR EFFECTIVE UNDERSTANDINGS.

WORKSHOPS TECHNICIANS SHOULD BE ALLOWED TO ATTEND TRAININGS CONDUCTED BY OTHER ATC IN THE SAME REGIONS TO AVOID NON-PARTICIPATION AS THE WORKSHOP CONCERNED IS ALSO RIVAL TO THE ATC IN THE SAME LOCALITY.

WHETHER THERE WILL BE ENCORCEMENT OF THE REGULATIONS BY DOE OR OTHER RELEVANT AUTHORITY, OR OTHERWISE, IT WOULD BE JUST A CASE OF “WAIT AND SEE” BY THE WORKSHOPS.

UNSURE OF THE NEED BY THE WORKSHOPS TO UNDERGO SUCH CERTIFICATION, AS SUCH EFFECTIVE PUBLIC AWARENESS / OUTREACH PROGRAM SHOULD BE CONTINUOSLY CARRIED OUT.

DEPARTMENT OF ENVIRONMENT, MALAYSIA

OZONE PROTECTION SECTION

LESSONS LEARNED ~ VOUCHERS

TO ENSURE FAIR AND EQUITABLE ALLOCATION OF VOUCHERS ELIGIBILITY CRITERIA MUST BE CLEARLY ESTABLISHED.

EARLY RECIPIENTS OF VOUCHERS AND EQUIPMENT MAY LAND UP PAYING HIGHER PRICE AS COMPARED TO THE LATER RECIPENTS DUE TO PRICE COMPETITION AMONG QUALIFIED SUPPLIERS.

NON-RETURNED OR LOSS OF VOUCHERS.

LAST MINUTE EXERCISE OF THE VOUCHER BY THE BENEFICIARY WORKSHOP, THIS MAKES THE SUPPLER UNABLE TO MEET THE EXPIRY DATE. IT IS BETTER TO HAVE TWO VALIDITY DATE : ONE FOR CONFIRMATION OF PURCHASE, AND THE OTHER FOR DELIVERY AND COMMISSIONING OF THE EQUIPMENT.

RELEVANT AUTHORITY TO REGULARLY VERIFY THE SUPPLY OF EQUIPMENT AT THE WORKSHOP LEVEL.

DEPARTMENT OF ENVIRONMENT, MALAYSIA

OZONE PROTECTION SECTION