URUGUAY

SUMMARY OF HALON MANAGEMENT IN URUGUAY

Background

The first actions taken to address this issue date back to 1992, when we

took part in the meeting organized by the United States Environmental

Protection Agency (EPA), on the recovery and recycling of halons, which took

place in Beaufort, California.

Two representatives of Uruguay attended that meeting, one from the

National Firefighting Department and the other from the National Environment

Department; that provided the opportunity for the commencement of the

coordinated work of the two departments to discourage the use of halons and to

promote the adoption of other types of firefighting measures.

At the meeting in question, we received updated information on the

action of halons on the ozone layer, and on measures for emission reduction

and for the management of the country's stocks of those substances.

At the same time, we initiated contact with EPA, which later led to a

work of bilateral cooperation under the working rules of the Multilateral Fund

for such purposes. That comprised field research components as well as

training, and included the work of a Halon-1211 recovery and recycling team.

FIRST PHASE

Bilateral cooperation with the United States in 1993

In mid-1993, the recently established Ozone Unit under the Ministry of

Education hosted a mission comprising officials from the EPA Atmospheric

Protection Division and the ICF consultancy.

The work carried out then consisted of meetings with firefighting

representatives, the main halon importing companies, the civil aviation sector

and other large-scale users. In those meetings, the problems connected with

halons were fully discussed, and we became aware of the country's need to

consider the setting up of a National Halon Management Plan.

We also obtained useful information on how to make an evaluation of

the uses of halons in the country, and we came to an agreement that EPA would

provide support for the preparation of a National Halon Inventory; two useful

days of training in halon alternatives were held, which were attended by the

country's major users, from both the civil and the military sectors.

In December 1993, training days were held, on alternatives to Halon-

1211 and 1301, and were attended by various concerned parties, government

officials, firefighting equipment installers, firefighters and other halon users.

The existing environmental problems were explained, together with ministerial

plans in their regard, and a detailed assessment was made of possible

alternatives. A fruitful discussion was held concerning critical uses and an

appeal was made for collaboration with a possible Halon Bank, to be sponsored

by the Ministry of Environment.

As a measure of the impact and repercussions of that activity, it is worth

indicating that, from then on, the importation of those substances began to

decrease and at the same time, the suppliers no longer promoted the

indiscriminate use of halons.

Bilateral cooperation with the United States in 1994

In January 1994, the National Halon Inventory was drawn up, based on

the exchange of information provided by suppliers, monitored by the

Firefighting Department in 1993, making use of its routine inspections of

locations needing fire protection. The report estimated the total installed halon

capacity, the main users and their geographical location.

Also in the same year, EPA provided Halon-1211 recycling equipment,

a DEFENDER 2000 model M1, and an air compressor was acquired from a

company already at work in the country.

SECOND PHASE

Once the aforementioned activities had been completed, work was

begun at the regulatory level, and on a request for assistance from the

Multilateral Fund, and activities were carried out within the framework of

cooperation with EPA.

Legislation

In regard to legislation, the Ozone Unit of the Ministry of Environment

put forward a decree which was approved by the Government as Decree No.

308/1994, dated 29 June, regarding the establishment of a National Halon

Management Programmme.

In that Decree, with the assistance of resources from the Multilateral

Fund, the Government entrusted the authority to implement the National

Halon Management Programmme to the Ministry of Environment, and

established a system of halon import/export licensing under the same Ministry;

the concept of critical uses was defined in accordance with the scale of

development of alternative technologies; the establishment of a Halon Bank

(both physical and of data) was authorized; internal marketing licences became

conditional on critical uses and sanctions were set out for infringements of the

law.

To bring the decree take into operation, it was agreed, in coordination

with the Customs Department, that any import licence relating to those

substances that lacked the corresponding environmental approval would be

blocked. It is noteworthy that from 1994 to date, no import or export of those

substances took place.

However, although the National Firefighting Department provided

advice to the Ozone Unit about a list of critical uses, that list was not officially

regulated. This was due to the reason mentioned above, the cessation of the

entry of virgin halons into the country, and also because of the fact that the

Multilateral Fund did not provide the budgetary resources necessary for the

Ozone Unit to carry out the launching of controls of internal halon marketing

operations in the whole country.

As an alternative, a physical storage bank for halons was installed,

operating in the private sector, and it was accepted that the Ozone Unit should

keep a register of the bank's inputs and outputs.

Industrial retrofitting projects

In full knowledge of the situation on the ground and aware of the

training and regulatory needs, the Ozone Unit approached the Multilateral Fund

for help to facilitate the efforts of private companies, which had already

collaborated in this whole process.

The implementing agency selected was UNDP, and after intense

negotiations during 1994 and 1995, there was a positive outcome after the

Executive Committee had defined the policy aspects of assistance to the halon

sector. In November 1995, the Executive Committee approved two investment

projects for Uruguayan companies in this sector.

The impact caused by these two projects was that 9.5 tonnes of ODP

were eliminated annually. The projects were as follows:

• Transfer of technology on alternatives to Halon-1301 systems and

conversion of the production of Halon-1211 extinguishers in Izeta López

S.A.

• Conversion of the production of Halon-1211 extinguishers in Tornay and

Mori S.A.

The aim of the first project was to transfer technology on alternatives to

Halon-1301 systems and conversion of the production of Halon-1211

extinguishers. It included the identification and evaluation of various

alternatives, and a licence was obtained so that Izeta López S.A. could use

alternative systems based on FM200. Company personnel were also trained in

the design and installation of those systems. For the second objective, no

capital costs were involved, as the company was already producing powder and

carbon dioxide extinguishers. It should be said that both project objectives

were achieved, and during implementation the recipient company showed itself

to be conscientious and diligent.

The second project was to help to convert the production of Halon-1211

extinguishers into production of carbon dioxide extinguishers. Both companies

involved in the halon manufacturing sector in the country were assisted. Since

both companies were involved, there were no problems of market distortion.

It is thought that the implementation of these projects was just as

important as regulatory and training measures carried out by the Ozone Unit, as

far as the elimination of new uses of halons was concerned.

The table below shows the country imports in past years corresponding

to other fire-extinguishants:

YEAR PRODUCT Tonnes

1998 Powder extinguishant___

Foam___________________

FM 200_________________

Halitron_______________

176.0

36.3

2.2

0

1999 Powder extinguishant___

Foam___________________

FM 200_________________

Halitron_______________

140.5

22.7

0.7

0.1

Training in the operation of Recovery Recycling equipment DEFENDER 2000,

model M-1

In February 1995, an additional activity was carried out in cooperation with

EPA and the US Navy, involving training Halon-1211 R/R equipment

operators from Argentina and Uruguay in the use of DEFENDER 2000,

MODEL M-1.

HALON BANK management

In parallel with the request for assistance for the aforementioned

projects, a project for halon bank operation was submitted to the Executive

Committee. The submission proposed the financing of a plan to convert

extinguishers and installations that would feed into the physical halon bank,

and to bear the initial administrative costs of internal marketing, but

unfortunately funding was not obtained from the Multilateral Fund for those

purposes.

As the negotiations for that came to an end in 1995, efforts were made

during 1996, jointly with private sector companies, to identify possible

solutions for the Halon Bank operation.

As a result, an agreement was signed with the Tornay-Mori S.A.

company on 18 April 1997 for the maintenance and operation of the Halon-

1211 recovery and recycling equipment, making it possible for the activity to

begin, using market supply and demand, that is, the operational costs would be

borne by the consumers depending upon use.

In the case of Uruguay, the firefighting equipment industry filled an

important role acting as intermediaries between suppliers and market

consumers. At the same time, the industry was engaged in the storing of

unwanted halons, and their recovery and recycling. Also, as mentioned above,

the Ozone Unit receives notification of those interchanges, and, together with

technical staff from the National Firefighting Department, is responsible for

fixing the technical requirements for such operations and for establishing a list

of critical uses of halons.

Up to that point, the recovery and recycling operations had no

restrictions, and, since no requests for importation had been received at

Government level once the decree had been published, it seemed unnecessary

to promulgate a list of critical uses.

Specifically, the State telephone utility decided to renew its Halon 1211

extinguishing equipment, having decommissioned 309 kg, which were in the

safekeeping of the Tornay Mori S.A. company. The Bank of the Eastern

Republic of Uruguay adopted a similar decision in respect of its installations of

Halon 1301, and had decommissioned 760 kg.

Operative requirements and precautions taken for the transfer and storage of

halons

The main targets specified for these operations of transfer and storage of halons

were to minimize unnecessary emissions and to maintain those substances in

appropriate conditions for later use, thus ensuring their availability for critical

uses, and, lastly, avoid an increase in the country's consumption through the

importation of new substances.

It was agreed with the private sector that it was very important to avoid

emissions during the decanting of halons. To achieve that,it was agreed that

the recovery/recycling equipment received from EPA should be used, as it was

equipped with the right hosepipes for the transfer of halons and other gases at

high pressure.

The time of recovery of these substances coincided with the publication

of the Halons Technical Options Committee 1998 manual, which proved useful

for the preparation of our working guidelines, which are summarized in this

section of the present report.

For the environmental health and safety of operators, these filling

procedures must be carried out by properly trained persons, preferably ones

with special training for such operations. They should also be carried out in

well ventilated locations, and using every precaution in handling pressure

release valves.

Since corrosion is a major cause of the loss of airtightness in containers

that need to remain hermetically sealed, contact between the halons and water

must be avoided at all costs. For the same reason, the flexible connections of

such containers, as well as the welded joints, valves and couplings, must be

checked monthly for signs of damage.

The Halon-1211 recovery and recycling equipment operation, it was

agreed, would also be subject to testing for losses before each working day,

using the test laid down in the equipment operating manual, as well as using

the fugitive emission detector during operation.

Each time it comes to deciding whether to recover halons or not, it is

important for the firm involved to find out the provenance of the material

before beginning collection and storage. This is particularly important in the

case of 1211, because it is mainly found in small portable extinguishers and

there may be a doubt as to whether they were filled with substances of the

correct specifications. In cases of doubt, samples must be sent to a competent

laboratory for gas chromatography testing.

The carrying out of the regular testing of portable extinguishers,

normally required of users, provides a good opportunity for a physical

inspection, to decrease possible future incidents of losses. The use of recovery

and recycling equipment on such occasions helps avoid deliberate emissions of

Halon-1211 to the atmosphere.

Main recommendations agreed upon

• It is preferable to keep halon reserves in large storage tanks rather than in

small separate cylinders.

• Recovery should be made of the excess of halons in inactive or

unnecessary systems.

• Besides installing appropriate loss detection equipment, adequate

environmental conditions should be provided for firefighting equipment

systems in service, for backup systems and cylinders and for halon storage

tanks.

Evaluation of the measures taken

According to the assessment of the Halons Technical Options

Committee of the Montreal Protocol, the recovery, recycling and reuse of

halons are key factors in minimizing unnecessary emissions, and these

operations are recommended as being useful in providing a sound

environmental approach that directs the use of those substances towards critical

cases, while environmentally acceptable alternatives are being developed.

Since that is the case, the management of the volumes of halons stored

in the country is of major importance both financially and from the

environmental and safety viewpoints.

In view of the foregoing points, the Committee recommends the need to

achieve a balance between supply and demand, and to manage this resource as

part of public safety strategy. It understands that excessive supply could

decrease the price of halons to the point where small-scale holders might prefer

to release their excess material rather than pay the high costs of

decommissioning or storage. Conversely, an insufficient supply could generate

a risk for fire protection.

In view of these considerations and the resources available to the

Government, the evaluation is that the option selected, of State intervention

limited to giving guidance on the technical aspects of environmentally sound

halon storage, does not interfere with the achievement of the equilibrium point

in the market for these substances.

Perspective of measures in the short and long term

Recycled halons will be the only source of halons in the future, since

Article 5 countries will be decreasing their halon production volumes, a step

that soon be taken by virtue of agreements recently reached by the Multilateral

Fund with China and India,

On the other hand, alternative technologies have already been

introduced and are beginning to be used in the large companies in the country.

In some cases the motivation of those changes is that old installations are

breaking down, and in other cases the companies want to install new fire

protection systems. In the latter cases, the suppliers have withdrawn halons

from service and are awaiting future opportunities for sales.

The small-scale users, it is thought, will be gradually replacing their

extinguishers with more cost-effective ones. That is to say that the

presumption is that there will be an excess of halons in this country, and it will

be necessary to prevent them being deliberately released into the atmosphere.

In view of the foregoing, unless the Ministry of Defence explicitly

requests the contrary, the Ozone Unit suggests the maintenance of the national

volumes of halons in a good state of purity, that is, in accordance with the ISO

7201 or ASTM D 5632-94-a standards, so as to be able to offer them for sale in

the international market.

It is thought that the above-mentioned state of purity can be achieved by

either making use of the Halon-1211 recycling facilities available in the

country or through working agreements with other countries of the region,

which would need to be entered into to carry out the recycling of Halon-1301,

under the protection of the exceptions provided by the Basel Convention.

At the same time, the Ozone Unit realizes the need to develop a policy

of final disposal of those halons that may fall into the category of wastes, just

as it will have to do also for the destruction of obsolete CFCs.

13 July 1994 OFFICIAL GAZETTE

MINISTRY OF HOUSING, LAND DEVELOPMENT AND

ENVIRONMENT

23

Decree 308/994. Establishment of a National Programme for Halon

Management

Ministry of Housing, Land Development and Environment

Ministry of Home Affairs

Ministry of Foreign Affairs

Ministry of Economics and Finance

Ministry of Industry, Energy and Mining

Montevideo, 29 June 1994

In view of: the need for an instrument for a National Programme for Halon

Management.

Recalling: (I) that the Republic is a Party to the Montreal Protocol on

Substances that Deplete the Ozone Layer, approved by Act 16.157 of 12

November 1990.

(II) that the Fourth Meeting of the Parties to the Montreal Protocol

(Copenhagen, 23-25 November 1992) adopted adjustments and reductions of

production and consumption of the controlled substances listed in Annex A to

the Protocol, as set out in Annex I to the report of the Fourth Meeting of the

Parties (decision IV/2).

(III) that in accordance with the Copenhagen Amendment to the Montreal

Protocol, the second paragraph of Article 2B provides that each Party shall

ensure that for the twelve-month period commencing on 1 January 1994, and in

each twelve-month period thereafter, its calculated level of consumption of the

controlled substances in Group II of Annex A does not exceed zero, unless the

Parties decide to permit the level of production or consumption that is

necessary to satisfy uses agreed by them to be essential.

(IV) that the Fourth Meeting of the Parties also decided to urge Parties to

encourage recovery, recycling and reclamation of halons in order to meet the

needs of all Parties, to minimize their use in non-essential applications

(decision IV/26).

(V) that the Fifth Meeting of the Parties , held in Bangkok from 17 to 19

November 1993, decided that no production of halons for essential uses was

necessary for the year 1994, considering the quantities available in the market

and the alternative technologies that are being produced.

Considering: (I) That to comply with the obligations of the Montreal Protocol

in regard to substances designated as halons, and to meet the needs of our

country, it is essential to rationalize the import, export, internal marketing, use

and consumption of such substances, within appropriate safety margins.

(II) That the National Environment Department has prepared a draft National

Programme for Halon Management in coordination with the national

Firefighting Department and with the collaboration of the country's main

business enterprises involved in marketing such substances.

(III) That it has also been agreed to obtain technical assistance from the

Environmental Protection Agency of the United States of America, as bilateral

cooperation chargeable against the contribution of that country to the Montreal

Protocol Multilateral Fund.

(IV) That the National Programme for Halon Management complements the

"Country Programme" for complying with the targets set by the Montreal

Protocol, which is being carried out by the National Environment Department,

through the Governmental Technical Ozone Committee, with funding from the

Multilateral Fund of the said Protocol.

(V) That consequently it is useful to make the provision suggested by the

Ministry of Housing, Land Management and Environment.

Noting: the provisions of Act 16.112 of 30 May 1990, Act 16.157 of 12

November 1990 and article 453 of Act 16.170 of 28 December 1990.

The President of the Republic

DECREES

Article 1. (On the National Programme). The objectives and stages of the

National Programme for Halon Management, prepared by the Ministry of

Housing, Land Management and Environment as shown in the annex to the

present decree are approved.

The implementation of the National Programme for Halon Management is

confided to the Ministry of Housing, Land Management and Environment,

through the National Environment Department, in accordance with the norms

of the present decree, where relevant.

Article 2. (On external trade). The import and export of the substances

included in Group II of Annex A of the Montreal Protocol on Substances that

Deplete the Ozone Layer (Halons 1211, 1301 and 2402), their mixtures or

goods containing them, identified as NADI 29.02.01.17, 18 and 19 and as

NADE 29.02.01.09, 10 and 11, must have prior authorization of the Ministry of

Housing, Land Management and Environment.

Article 3. (On licences). The Ministry of Housing, Land Management and

Environment shall issue licences for import or export, in accordance with the

provisions of the applicable international rules and those arising from the

present decree and concurrent rules, restricting those licences as far as possible

to ones intended for uses designated as essential.

To this end, the Ministry of Housing, Land Management and Environment may

seek the assessment of the National Firefighting Department and other

concerned Government departments.

Article 4. (Essential uses). For the purposes of the present decree, essential

uses of the substances mentioned in Article 2 means those that are necessary

for health, safety or are essential for the functioning of a specific social domain

(including cultural and intellectual domains), provided that, in the judgement of

the Ministry of Housing, Land Management and Environment, other alternative

substances or products do not exist or are unavailable, such as might be

technically and economically viable from the health and environment

viewpoint.

There is confided to the Ministry of Housing, Land Management and

Environment the preparation, revision and periodic updating of the list of

essential uses, in conformity with what is set out in the present decree, with the

faculty of establishing essential uses of a temporary nature whenever necessary.

Article 5. (On the Controller). The National Customs Department and the

Bank of the Eastern Republic of Uruguay, as the case may be, shall not process

any application for import or export of the substances referred to in Article 2 of

the present decree, without the prior authorization of the Ministry of Housing,

Land Management and Environment.

In the case of non-compliance with this provision, without prejudice to the

corresponding sanctions, the Ministry of Housing, Land Management and

Environment may take measures aimed at determining the destination of the

substances involved in the infringement, and may provide for their inclusion in

the National Halon Bank, in accordance with what is established in the

following articles.

Article 6. (Nation Halon Bank). The National Halon Bank is hereby

established, made up of a register and one or more physical deposits. The

National Halon Bank has as its objective to make an inventory of and

concentrate the said substances in appropriate conditions, regulating their

trading in accordance with the essential uses defined in the present decree.

The establishment of the characteristics, conditions and scope of the National

Halon Bank is confided to the Ministry of Housing, Land Management and

Environment, through the National Environment Department, with the

assessment of the National Firefighting Department.

The Ministry of Housing, Land Management and Environment, through the

National Environment Department, and the Home Affairs Ministry, through the

National Firefighting Department, are given the faculty of entering into

agreements with public and private institutions for the establishment and

operation of the National Halon Bank.

Article 7. (On internal trade). From the time of the entry into force of the

resolution of the Ministry of Housing, Land Management and Environment

establishing the essential uses of halons, in accordance with the provisions of

Article 4 of the present decree, trading and sales of the substances referred to in

Article 2, without the prior authorization of the said Secretariat of State, are

banned and their destination cannot be altered.

The Ministry of Housing, Land Management and Environment shall issue the

necessary licence, in the case of essential uses, with the option of obtaining the

assessment of the National Firefighting Department.

Article 8. (Sanctions) Infringements of the provisions of the foregoing article

shall be penalized in accordance with the provisions of article 6 of Act 16.112

of 30 May 1990 and article 453 of Act 16.170 of 18 December 1990, under the

following criteria:

(a) Sale or use of the substances in contravention of the conditions of licence,

between 20 UR and 2,000 UR.

(b) Sale of the substances for essential uses, without the corresponding prior

licence, between 100 UR and 2,000 UR.

(c) Sale of the substances for non-essential uses, between 500 UR and 5,000

UR.

Those who act as sellers, buyers or intermediaries shall be considered violators.

Repetitions of infringements shall be penalized with double the fine previously

applied.

Without prejudice to the penalties applicable, as the case may be, the Ministry

of Housing, Land Management and Environment shall revoke the licence it

may have issued, and take measures to assure the destination of the substances

involved in the infringement, keeping in mind the needs of national

consumption, and with the faculty of providing for their inclusion in the

National Halon Bank.

Article 9. Let it be published, etc. LACALLE HERRERA - MANUELANTONIO ROMAY - ANGEL MARIA GIANOLA - JOSE MARIA GAMIO- IGNACIO de POSADAS MONTERO - MIGUEL ANGEL GALAN.