Wholesale Observations

R-22 Update

2012-01-27T14:26:00.002-05:00

There has been much recent discussion regarding the market for HCFC-22 in 2012, as the EPA works to finalize its allocation and production rights for 2012-2014. Here are some basic facts HARDI wanted to communicate to our membership.

1.) There is an ongoing EPA rulemaking concerning the allocation of refrigerants, including R-22 for 2012-2014. The EPA has suggested a reduction of allocation rights of R-22 between 11% and 47% in each year (2012-2014). EPA’s proposed reduction was not unexpected.

2.) While the rulemaking process is underway, it is illegal for a company to produce or import refrigerant into the United States. The EPA therefore must send out a “non-enforcement” letter, which allows companies to legally produce or import refrigerant. This letter was expected by many companies to arrive the first week of January; however it was delayed until Friday, January 20. Thereby 15 work days had passed where no refrigeration production or importation occurred.

3.) The EPA's "non-enforcement" letter called for a 17% reduction from the original R-22 baseline, or a 45% reduction off of the 2011 allocation. In 2011 the total R-22 allocation was approximately 100 million pounds. Currently manufacturers and producers are operating under guidance that only 55 million pounds will be approved in 2012. If the finalized rule calls for less than a 45% reduction, a manufacturer/producer could produce and import up to their allocated amount.

4.) From 2005-2010 (2011 data is not yet available), only 77% of Consumption Allowances for HCFC-22 were used. These figures along with comment from stakeholders to the EPA, regarding the oversupply of R-22 in the marketplace, have led EPA to consider a more aggressive phasedown.

5.) In 2011, EPA sought comment from the Alliance for Responsible Atmospheric Policy, of which HARDI and all major refrigerant producers are members, regarding a suggestion for a more aggressive reduction in R-22. The Alliance formally submitted a suggestion for a 20% reduction in Consumption Allowances.

The Not-So-Hidden Cost of Regulation

2012-01-27T09:06:00.001-05:00

Debate after political debate, candidates and other politicians love to throw around trinkets of relief to the business community, most notably promises of "less regulation" and "government intrusion". Despite all the rhetoric, I needed to spend several hours yesterday with Jon Melchi, our Director of Government Affairs, simply to plan and prioritize other projects, and shift resource allocations so HARDI could be sure to meet six regulatory comment filing deadlines all landing BETWEEN NOW AND FEBRUARY 20! Not only am I concerned that Jon may not like or perform optimally with 3 hours of sleep per night, how many other HARDI priorities must be delayed or shelved altogether simply so we can perform our essential function of representing our members' interests in this seemingly endless flood of regulatory activity?

Further, as our recent court action challenging a DOE ruling proves, all of this effort throughout these various regulatory proceedings hardly guarantees fair consideration of our concerns these days. That means these six filings have better than a 50/50 chance of requiring much more staff time and resources in the future. This is vitally important work for HARDI, our members', and our organization's strategic objectives, however make no mistake that we, and I would assume other organizations like HARDI, would be able to do so much more for our members if we did not have to continually swim upstream in these increasingly rushing regulatory rapids. Message to today's Presidential candidates and our current President: cut the rhetoric about reducing "burdensome regulation on business" and actually start doing it today! Rhetoric will not earn Jon an extra hour or two of sleep.

DOT issues new Trucking rules

2012-01-06T11:43:00.003-05:00

DOT Sets New Safety Rule for Drivers
The Department of Transportation has announced that January 3, 2012 will be the effective date for a new regulation, which bans the use of hand-held cell phone's for interstate commercial vehicle drivers. The ban only applies to intrastate drivers if they are carrying hazardous material, but states are likely to adopt the federal standard in the near future. Companies that allow their drivers to use cell phones face fines of up to $11,000 per incident.

Specifically, this rule prohibits drivers from using a hand-held cell phone while driving, reaching for a mobile phone in a distracted manner or dialing a number by pressing more than one number. The use of hands free phones, two-way radios and CB's will still be permitted.

DOT finalizes Hours of Service Rule

The Department of Transportation finalized a rule which, while substantial, falls short of the drastic initial proposal, which would have greatly reduced trucking productivity. The DOT has issued these requirements:

A 30-minute break by all drivers at least once during an eight hour shift.(Takes effect July 1, 2013)
The 34-hour restart period must include at least two 1am-5am periods. (Takes effect July 1, 2013)
A 34-hour restart period may only be used once per week. (Takes effect July 1, 2013)
The definition of "on-duty" time is changed to exclude: (1) Up to two hours in the passenger seat of a CMV if that 2-hour period precedes or follows an 8-hour period in a sleeper berth; and (2) all time resting in a parked CMV. (Takes effect Feb. 27, 2012)

2012 HSA Contribution Limits

2011-12-30T10:48:00.000-05:00

As we prepare to turn the calendar, thought it might be helpful to have handy the 2012 tax-free contribution limits for Health Savings Accounts (HSAs). The limit increased $50 for individuals to $3,100 and $100 for families to $6,250. In short, this means you can contribute to these limits before taxes are deducted, and can use your HSA balance for qualified medical expenses tax free as long as you have the account tied to a high deductible medical insurance plan.

The "catch-up provision" limit remained unchanged at $1,000 for individuals age 55+. This is extremely important for those positioning for retirement or late entries into an HSA program.

While we're at it, just another reminder too that in 2011 over the counter medications were deemed INELIGIBLE for HSA reimbursements; a change from all previous years.

I hope you find this useful as you prepare for what we believe will be a prosperous and positive 2012! Happy New Year!

California Distributor Update

2011-12-27T14:24:00.001-05:00

DTSC to Continue Inspections

The California Department of Toxic Substances Control (DTSC) has completed an initial survey of HVACR Distributors to monitor compliance with state policy mandating the recycling of mercury thermostats and found that some distributors are falling short of full compliance to state law. Distributors in California are required by law to serve as a collection point for mercury thermostats and DTSC is planning on increased enforcement in 2012.

HARDI has a formal partnership with the Thermostat Recycling Corporation (TRC), who can provide your business with all of the resources necessary to make sure you are in compliance with California state law.

If you would like to know if your business was inspected by the DTSC, please contact Jon Melchi.

New CARB Requirements

The New Year brings new requirements from the California Air Resources Board. Below are the new reporting requirements for Refrigerant Distributors and Reclaimers.

Beginning Jan. 1, 2012

Refrigerant Distributors must:

Report previous year’s refrigerant sales or transfers by March 1
Cover all California facilities that bought or received refrigerant from the wholesaler or distributor
Include the following:

The total weight, in pounds, of each type of refrigerant sold or transferred in the previous year, including:
Transactions for eventual resale or delivery
Shipments to certified reclaimers

Refrigerant Reclaimers must:

o Report previous year’s refrigerant sales or transfers by March 1

o Cover all California facilities that delivered refrigerant to the reclaimer

o Include total weight, in pounds, of each type of refrigerant that was:

§ Reclaimed or destroyed in California

§ Shipped out of state for reclamation or destruction

NLRB Approves "Ambush Election" Policy

2011-12-21T16:48:00.001-05:00

NLRB Approves "Ambush Election" Policy
In a decision, which was rushed to completion before the term of one of its members expired, the NLRB approved new organizational rules which would fast track union elections and limit the ability of employers to communicate with employees. The rule, which has been opposed by numerous business groups, would take effect on April 30. In response to the rule, Rep. John Kline (R-MN), Chairman of the House Education and Workforce Committee, stated "Ignoring the will of Congress and objections raised by countless organizations representing workers and employers, the NLRB has chosen to deliver a final ambush election rule to its Big Labor allies- just in time for the holidays."

The U.S. Chamber of Commerce and Citizens for a Democratic Workplace, of which HARDI is a member, have filed suit to prevent the enactment of these aggressive workplace regulations.

DOE outlines possible enforcement options for Regional Standards

2011-12-02T15:18:00.001-05:00

DOE outlines possible enforcement options
This morning the Department of Energy released a Framework document regarding enforcement of the newly installed regional standards. This document is intended to provide stakeholders with an idea of what the DOE may have in mind and allow for discussion, before an official enforcement proposal is released in January.

The DOE has stated that the effective dates (May 1, 2013 for furnaces and January 1, 2015 for air-conditioners) are installation bans, therefore eliminating "Grandfather" provisions that have marked previous standards increases and leaving distributors to liquidate inventory before the effective date or risk it being stranded.

Additionally, the DOE has laid out three different enforcement approaches that they are considering. All three approaches put unprecedented burdens on distributors and clearly represent why HARDI opposed this regulation in the first place.

The "least invasive" proposal would mandate distributors to inform the purchaser of equipment of the regional standards and require a signature from the contractor which would indicate they understand the regional standards. This letter would then be kept under file by distributors.
A second option would require the distributor to track serial numbers of equipment sold to contractors and maintain those records in the event of an audit by the federal government.
The most aggressive proposal would require distributors to track serial number, installer, and installation location information for units sold and to submit the information on a regular basis or face penalty.

HARDI urges all members to read the DOE's Framework document and contact Jon Melchi with your thoughts and recommendations.

Are We Destined to Become Greece??

2011-11-09T08:02:00.002-05:00

Yesterday voters in HARDI's home state of Ohio voted to overturn a key piece of our governor's budget that had erased a staggering $8 billion state deficit created by massive overspending and erosion of the state's tax base over the last several years. While the headlines will focus on yesterday's vote being a big win for big labor since the vote preserved collective bargaining rights for state employees, what I fear will be overlooked is the broader issue of exactly how committed ALL Ohioans are to fixing our financial woes. Further, while the Constitutionally-questionable "Super Committee" deliberates in an attempt to trim less than a tenth of the absolutely obscene nearly $15 TRILLION federal deficit, the apparent lack of seriousness here in Ohio to address a state deficit that's less than what the federal government currently spends EVERY DAY hardly instills confidence that we will be able to prevent a Greece-like financial meltdown. As representatives of a segment of our industry that perhaps relies on credit availability and affordability more so than anyone else, it is certainly troubling to watch our state choose short-term benefits (yet again) over long-term viability. Keep an eye out, you may start seeing HARDI materials coming from more fiscally sound states like Texas or even our next-door neighbor Indiana...

HARDI voices opposition to Regional Standards

2011-10-18T14:06:00.001-04:00

HARDI files comments in opposition of Regional Standards/ Efficiency Standards Increase

On Monday HARDI filed comments in opposition to a Department of Energy (DOE) Direct Final Rule which would regionalize air conditioners and furnaces as well as increasing efficiency standards for those products in certain regions. The Direct Final Rule came as a result of a pact negotiated by equipment manufacturers and energy efficiency advocates and excluded the input of HVAC distributors and contractors. HARDI has asked the DOE to withdraw the direct final rule and precede with the traditional rulemaking (NOPR) process which would allow for more analysis and stakeholder input.

HARDI indicated in previous comments to DOE that we would only be able to offer support to the proposed rule if the planned increases in efficiency standards were economically justifiable. HARDI maintains that the nation’s economic climate, including an unprecedented drop in new home construction, coupled with the substantial decline in unitary sales of both air conditioners and furnaces since the last national standards and a reduction in consumer purchasing power do not make the proposed rule viable on an economic level.

Additionally, HARDI has great concerns about the unknown costs that will come with compliance and enforcement of the proposed rule. HARDI believes that it is impossible for the DOE to fully assess the economic impact of the rule without first finalizing an enforcement plan. HARDI fears that the cost and responsibility associated with compliance and enforcement will fall far from the manufacturers who negotiated the agreement, and will land squarely upon the many small businesses in both the HVAC distribution and contract installation industry. HARDI has asked the DOE withdraw the direct final rule and move the rule to a NOPR with a combined, or concurrent, enforcement rulemaking.

NLRB delays posting requirement

2011-10-05T15:32:00.000-04:00

The National Labor Relations Board has postponed the implementation date for its new notice-posting rule by more than two months in response to lawsuits from multiple trade associations questioning the authority of the NLRB to institute such a rule. The rule was scheduled to take effect on November 11, 2011, but has been delayed until Jan 31, 2012.

The rule requires employers to notify employees, via a poster in the workplace, of their right to organize under the National Labor Relations Act. In addition to the physical posting, employers may have be forced to communicate this information via email, internet or company intranet site. If more than 20% of a company's employees are non-English speaking, the company must make bi-lingual versions of the poster available.

HARDI has strongly opposed the NLRB's action and will continue to monitor the legal status of this rule.

Over $1 million in ENERGY STAR rebates still available in Tennessee

2011-09-30T09:08:00.002-04:00

Tennessee has about $1.8 million still available for rebates on purchases of ENERGY STAR qualified appliances to replace existing appliances. The appliances and rebate amounts are:

Central Air Conditioners ($250)

Air Source Heat Pumps ($250)

Gas Furnaces ($150)

Room Air Conditioners ($40)

Tennessee residents that purchased central air conditioners, air-source heat pumps, or gas furnaces after April 22, 2010 are eligible for rebates. Rebates are available on a first come, first served basis.

Also, contractors who are members of TVA’s Quality Contractor Network can receive $100 from TVA for each ENERGY STAR qualified air-source heat pump they install before the end of the year.

For more information about the consumer rebates, visit: http://teearp.efi.org/

For more information about the rebates for contractors, contact Ginger Lawyer, gglawyer@tva.gov.

President releases deficit reduction plan, LIFO included

2011-09-19T12:20:00.001-04:00

This morning President Obama released a proposal for $3 Trillion in deficit reduction, which includes $1.5 Trillion in tax increases. This proposal marks President Obama's first entree to the Congressional Joint Select Committee ("Super Committee"). Included in President Obama's proposal is the repeal of LIFO, which the Obama Administration estimates will raise nearly $60 Billion.

Other proposals in President Obama's plan include:

Allowing the "Bush tax-cuts" for the top tax bracket to expire.
Limiting charitable deductions for individuals in the top tax bracket.
Saving $1 Trillion, by winding down U.S. involvement in Iraq and Afghanistan.
Cutting $248 Billion from Medicare and $72 Billion from Medicaid.

Additionally, President Obama has stated that he will veto any plan for entitlement reform that does not include tax increases. Congressional Republicans have stated that they will not pass tax increases, but would like to pass a complete overhaul of both the corporate and personal tax code.

Paralyzed by Technology??

2011-09-12T21:00:00.000-04:00

The amount of technology-driven tools and devices available to businesses today is truly staggering. For managers, this info-overload can be especially stressful as you try to balance current and future technology needs with cost constraints and, frankly, often limited knowledge about today's techno-speak and options. At HARDI we've been testing various tablets, laptops, netbooks, smartphones, servers, and other devices. Some need to be optimized for our road warriors, while others need to be high-powered for new data and multi-media development needs.

Here are a few brief observations of our experiences thus far:

Tablets are great for several things, but aren't ready to replace laptops
Netbooks are great for several more things, but aren't ready to replace laptops
Tablet-PC's are awesome, but extremely far and few between and potentially expensive
Apple/Android phones can do 1000x more than Blackberries, but BB's are still great for Exchange server access and ultra-speedy typing (with real buttons!)
Mobile devices that say they're VPN-capable need to prove it because we can't get them to work
Android's Office-ready design is great, but you still have to spend a lot of time figuring out how to use/find things on the device
None of the travel-optimized or mobile devices are 100% web capable meaning websites are either developing faster than the operating systems, or the operating systems are evolving faster than most websites- either way on any device you're going to find web functionality that won't completely work at some point in time
Even the best tech support can't be expected to keep up with all of this so be prepared for any technology device decision to come with some potentially extensive tech-support time

Research and research some more, and do so with the help and close involvement with your tech support. If they're not on board with your decision, you're in for a long implementation ride.

Unlike most other decisions, your gut probably isn't be best judge for technology decisions. Your gut is too likely influenced by biases unrelated to the actually business decision i.e. slick marketing, recommendations from others who have different technology needs and uses, subjective rather than objective research. All these tools are great and just about everything is great at something, but it's also likely to have some significant weaknesses. Your focus needs to be understanding what you most need and what you can most do without and let that guide your decision.

NLRB issues final rule on Posting Requirement

2011-08-25T11:12:00.000-04:00

The National Labor Relations Board (NLRB) today issued a final rule which will require employers to notify employees, via a poster within the workplace, of their right to organize as provided by the National Labor Relations Act. The ruling will become effective November 14, 2011 and does not mention an employee’s right to oppose unionization.

In addition to the physical posting, the rule requires employers to post the notice on an internet or intranet site if personnel rules and policies are customarily posted there. Employers are not required to distribute the posting by email, Twitter or other electronic means.

If more than 20% of employees are non-English speakers, an employer will be required to provide a translated version of the posting in the appropriate language.

If an employer knowingly and willfully fails to post the notice, the failure may be considered evidence of unlawful motive in an unfair labor practice case involving other alleged violations of the National Labor Relations Act.

HARDI will continue to update its members on the requirements of this ruling.

Debt Deal, Market Crashes, and Fundamentals

2011-08-05T11:39:00.004-04:00

HARDI's economists at ITR provided us with this analysis of the recent "debt deal":

A DONE DEAL?
The Congress passed, and the President signed, a debt reduction deal that the Congress, President, and American people don’t like (by a majority of over 90% according to a poll on Fox News). If you listened to Monday’s Make Your Move on voiceamerica.com, you heard Talbot, Brian and I (Alan) discussing this. I’ll save the various comments for those interested in downloading the program and give you a single point of view.

The Debt Deal will do nothing to change our forecast for the next few years, 2014, 2019 or our projection of a Great Depression in the 2030s. The agreed-to $2.1 trillion reduction (if it actually happens) is too small to matter. We will still add about $10 trillion in debt between now and 2020, and that debt burden has the potential to crush taxpayers and the US Dollar.

Despite such shortcomings, there is a ray of sunshine. The needle moved a fraction of an inch toward a financial reality that might be called rational. It was hard fought and nobody “won” (US debt reached 100% of GDP after the debt ceiling was raised); but perhaps, just perhaps, we have seen the beginning of a potential movement toward financial realism in this country. Let’s hope so.

Yesterday's tanking of the stock market is raising new fears about our economy. Today's slightly better-than-expected jobs numbers and a largely symbolic drop in the unemployment rate to 9.1% has only slowed the rate of the Dow's contraction thus far. Here's a good WSJ video explaining why the debt deal led to a sell-off. That being said, I find it necessary to remind business leaders of our economists' continued conviction that basic industrial and broader economic fundamentals do not support a "double-dip" forecast. Further, the WSJ published a piece today recommending patience at the least (online subscription req'd) and ITR recommended at the beginning of the year aggressiveness with regards to real-estate and other large/long-term expenditures such as leases, vehicles, and infrastructure or equipment upgrades because money is still cheap and corporate earnings, profits, and cash continues to be solid. Be sure you're taking in all the data, and the advice of the most proven experts before making any knee-jerk reactions.

HCFC Smuggling: Miami Man Sentenced to 18 Months in Prison

2011-08-01T14:15:00.002-04:00

Today, U.S. District Court Judge Adalberto Jordan sentenced Brendan Clery, 34, to 18 months in prison and ordered him to pay a $10,000 criminal fine and forfeit illegal proceeds in the amount of $935,240. Clery pleaded guilty in April 2011 to knowingly importing approximately 278,256 kilograms of illegal hydrochlorofluorocarbon - 22 (HCFC-22, also known as R-22) into the United States.

"EPA takes seriously the smuggling of illegal substances that can harm the ozone layer, which protects us from harmful UVB radiation that can cause skin cancer and cataracts,” said Cynthia Giles, assistant administrator for EPA’s Office of Enforcement and Compliance Assurance. “Today’s sentencing is an example of EPA’s commitment to aggressively enforce U.S. laws and meet our international obligations."

This case was part of a larger criminal investigation known as Operation Catch-22. It was investigated by the Environmental Protection Agency, U.S. Immigration and Customs Enforcement, and the Florida Department of Environmental Protection, Criminal Investigation Bureau, and prosecuted by special assistant U. S. Attorney Jodi A. Mazer.

More information on EPA’s criminal enforcement program: http://www.epa.gov/compliance/criminal/index.html

So What Does Our 2011 Mid-Season HVAC Distributor Survey Tell Us?

2011-07-29T09:47:00.004-04:00

Today HARDI released to the public the results and analyses of our 3rd annual joint HARDI-JP Morgan Equity Research Mid-Season HVAC Distributor Survey. While I encourage you to read the detailed report yourself which is available for download via a link in the actual release, this year's survey gives us several important insights:

2011 is not going to be a major "recovery year" as many in our industry had projected

The residential HVAC business appears to be in the midst of some significant, long-term structural changes

Commercial HVAC is better than expected, but not because of long-term positive indicators like new construction, but rather repairs and minor upgrades just enough to limp through another 5 yrs or so

We are far from realizing the true impact "dry-shipped" R-22 residential units are going to have on the HVAC industry

Inflation is already hitting our industry and will be a major issue unless we can find ways to keep our products affordable to the average residential and commercial customers

There are a lot of findings in this year's survey that many in the industry aren't going to like. It's time we start facing these headwinds and begin adjusting accordingly.

HARDI supported bill aimed at the NLRB passes House Committee

2011-07-22T10:00:00.003-04:00

The Protecting Jobs from Government Interference Act (H.R. 2597) has passed through the House Committee on Education and Workforce this week. This legislation, which HARDI along with a coalition of businesses and associations strongly supported, would "prohibit the National Labor Relations Board from ordering any employer to relocate, shut down, or transfer a business under any circumstance."

The NLRB has come under fire for an aggressive string of rulings and proposals. A current proposal by the NLRB would shorten election times for the formation of Unions, thereby limiting the amount of information that employees may receive before making this monumental decision. Such "Quickie" elections are strongly favored by Labor Unions.

H.R. 2597 is expected to pass a vote of the entire House and will then move to the Senate.

Illinois Mercury Thermostat Collection Act: Compliance Alert

2011-07-15T15:22:00.001-04:00

As of July 1, 2011 all HVAC wholesale distributors must act as a collection point for waste mercury thermostats and utilize promotional materials provided by manufacturers.

Illinois EPA staff will begin conducting compliance assistance visits to Illinois HVAC wholesale distributors the week of July 25, 2011. The purpose of the visits are two-fold: 1) the agency wants to recruit wholesalers not yet participating in the program and 2) follow-up with wholesalers that have already ordered containers and assist them in managing and promoting the program.

If any of your locations in Illinois are not yet collecting thermostats and need collection container(s) or require promotional materials please contact TRC at 888-266-0550 or email trc@thermostat-recycle.org for assistance. More information on the TRC program is available at www.thermostat-recycle.org

LIFO Under Heavy Attack from Obama Administration

2011-06-29T14:15:00.002-04:00

As the United States continues to move closer to its $14.3 Trillion debt ceiling in August, negotiations between Congressional leaders and the White House have broken down over the Obama Administration's insistence on increasing revenue through tax increases, including a repeal of LIFO and a tax on LIFO reserves. This proposal represents a devastating and unprecedented retroactive tax on businesses and could cause price increases and in some cases force businesses to shut their doors.

With just over a month left in debt limit negotiations, it is important for HARDI members to act now and let our leaders know how devastating the Obama Administration's proposed LIFO repeal would be to manufacturers, suppliers and distributors. All HARDI members are encouraged to take a few minutes and contact the leaders listed below and tell them how vital LIFO is to your business and our industry.

Urge These Elected Officials to Oppose a LIFO Repeal

President Obama : (202) 456-1111
Senator Max Baucus: (202) 224-2651
Rep. Chris Van Hollen: (202) 225-5341

Thank These Leaders for Standing up for LIFO
Speaker of the House John Boehner: (202) 225-0600
Senator Jon Kyl:
Majority Leader Eric Cantor: (202) 225-4000

NLRB & Dept. of Labor proposals are troublesome

2011-06-22T10:56:00.003-04:00

In what can best be describes as Christmas in June for organized labor, the National Labor Relations Board and the Department of Labor issued, on consecutive days, proposals which could hamper businesses and will undoubtedly help unions.

The NLRB's proposal would pave the way for a shorter time frame in which union elections would be held. Rep. Joe Kline (R-MN), Chairman of the House Committee on Education and Workforce stated “Not only will this misguided proposal to expedite union elections undermine an employer’s lawful right to communicate with his or her employees, it will cripple a worker’s ability to make an informed decision.”

The Department of Labor's proposal would require companies to disclose those who assisted in preparing communications to employees regarding unions.

Both of these items represent major shifts in policy and HARDI will continue to advocate for policies that protect both employers and employees.

Carrier Petition to EPA to Stop "Dry-Shipped" Stirring the Pot

2011-06-17T14:10:00.004-04:00

The NEWS' story this week announcing Carrier Corps petition filed with the EPA to reclassify condensing units as "subsystems" and therefore make the manufacturer of "dry-shipped" R-22 condensing units illegal has really fired up some in the industry. Check out the comments posted in response to The NEWS article. Anyone who still thinks these "dry-shipped" units are going to be an insignificant percentage of total shipments is either selling R-410a or in the window-banger business. By the way, HARDI had been asked to provide comment for the article but we do not have a formal position yet on Carrier's petition.

HARDI signs on in support of Job Protection Act

2011-06-15T11:05:00.003-04:00

HARDI, in collaboration with Citizens for a Democratic Workplace, has signed on in support of the Job Protection Act (H.R. 1976 & S. 964). This legislation preserves the federal law’s current protection of state right-to-work laws in the National Labor Relations Act, and provides necessary clarity to prevent NLRB from continuing to overreach and impede on the rights of employers and employees.

To view the letter, please click here .

DOE issues Direct Final Rule on Regional Standards

2011-06-13T15:31:00.001-04:00

The Department of Energy has released a Direct Final Rule regarding Regional Standards for Residential Furnaces, Residential Central Air Conditioners and Heat Pumps. If no adverse comments are received, this Direct Final Rule will become effective 110 days from the date of official publication and will be followed 90 days later by an enforcement rulemaking.

As currently written, the implementation date for non-weatherized gas furnaces, mobile home furnaces and non-weatherized oil furnaces is May 1, 2013. The implementation date for weatherized gas furnaces, all central air conditioners and all heat pumps is January 1, 2015.

The DOE has decided to leave a singular national standard in place for some products, while other products will now be forced to meet up to three different qualifying standards. Below is a list of both national product standards and a breakdown by individual state.

Product Class	National Standard
Non-weatherized oil-fired furnace	83% AFUE
Weatherized gas furnace	81% AFUE
Mobile home oil-fired furnace	75 % AFUE
Weatherized oil-fired furnace	78% AFUE
Electric furnace	78% AFUE
Split-system heat pumps	14 SEER / 8.2 HSPF
Single-package heat pumps	14 SEER/ 8.0 HSPF
Small-duct, high velocity systems	13 SEER/ 7.7 HSPF
Space-constrained products- air conditioner	12 SEER
Space-constrained products- heat pumps	12 SEER/ 7.4 HSPF

States	Non-weatherized gas furnace	Mobile home gas furnace	Split-system AC	Single-package AC
AK, CO, CT, ID, IL, IN, IA, KS, ME, MA, MI, MN, MO, MT, NE, NH, NJ, NY, ND, OH, OR, PA, RI, SD, UT, VT, WA, WV, WI, WI	90% AFUE	90% AFUE	13 SEER	14 SEER
AL, AR, DE, FL, GA, HI, KY, LA, MD, MS, NC, OK, SC, TN, TX, VA, DC	80% AFUE	80% AFUE	14 SEER	14 SEER
AZ, CA, NV, NM	80 % AFUE	80% AFUE	14 SEER EER=12.2 >45,000 BTU's EER=11.7 <45,000 BTU's	14 SEER EER=11.0

Rand Paul to speak at HARDI Fly-In

2011-05-06T16:27:00.001-04:00

HARDI is pleased to report that Senator Rand Paul (R-KY) has agreed to speak at the 2011 HARDI Congressional Fly-In, which is May 18-19 in Washington D.C. Also scheduled to speak is Sen. Richard Burr (R-NC).

Senator Paul was elected to his first term in 2010 and has already made a strong impact on Washignton with his views on government reformation, lower taxes and protecting individual freedoms. In just 5 months in office, Senator Paul has already sponsored legislation to balance cut federal spending, rein in an aggressive bureacracy and eliminate burdens on small businesses.

It is not too late to register for the HARDI Congressional Fly-In! Please visit our website or call Stephanie at 1-888-253-2128.

U.S. House Committee asks for HARDI input

2011-05-04T16:10:00.001-04:00

As part of their ongoing work concerning burdensome federal regulations, the U.S. House Committee on Oversight and Government Reform has asked HARDI members to report their concerns directly to Congress via www.AmericanJobCreators.com. We urge all HARDI members to participate in this process.

Follow the Committee’s directions below to let your elected officials in Washington know how red tape affects your bottom line:

1. Visit www.AmericanJobCreators.com.

2. Answer a few questions about your business, like: What does government take from your business through rules, regulations and red tape? Has the recent growth of government influence in the economy affected costs, hiring or your business outlook?

3. A request has been made for representative from the committee is scheduled to speak at the HARDI Congressional Fly-In. There’s still time to attend the Fly-In, so call Stephanie with HARDI today at 888.253.2128 to sign up.

Submissions received via AmericanJobCreators.com will help determine the priorities of real regulatory reform.

What's Holding Your Business Back?
Washington doesn't know the true costs of the regulations it imposes. To deliver the more efficient, effective government Americans deserve, our U.S. Representatives need a clear picture of these costs, and the entrepreneurs and innovators paying them.

We believe businesses like yours power our economy. You will drive the real economic recovery, if Washington just lets you. That's why we're working to cut the unnecessary red tape government throws at you. But we need your help to get it right.

Florida man pleads guilty to Illegal Smuggling of HCFC-22

2011-05-03T12:25:00.002-04:00

Brendan Clery, 34, of Miami, pled guilty today before U.S. District Court Judge Adalberto Jordan to a one count Information charging him with knowingly importing approximately 278,256 kilograms of illegal hydrochlorofluorocarbon - 22 (HCFC-22), contrary to the provisions of the Clean Air Act (CAA). HCFC-22 is a widely used refrigerant for residential heat pump and air-conditioning systems.

According to court records and statements made in court, in 2005 Clery formed Lateral Investments, a Florida corporation, for the purpose of importing merchandise, including refrigerant gas. Clery was the President of Lateral. Between June and August 2007, Clery illegally smuggled large quantities of HCFC-22 into the United States to sell on the black market. At no time did Clery or Lateral Investments hold unexpended consumption allowances that would have allowed them to legally import the HCFC-22. During 2007, Clery illegally imported approximately 278,256 kilograms or 20,460 cylinders of restricted HCFC-22, with a market value of $1,438,270.

United States Attorney Ferrer said, “The illegal importation of ozone depleting substances threatens our well being and endangers our environment. My Office will continue to support the EPA and ICE in our efforts to enforce our nation’s laws and protect our environment.”

Sentencing has been scheduled for July 29, 2011 at 9:00 AM. The statutory maximum term of imprisonment for Clery is 20 years and a fine of $250,000. In addition, the defendant could be ordered to forfeit the illegal proceeds of his conduct.

1099 Repeal passes Senate. Heads to President for signature.

2011-04-05T13:30:00.001-04:00

Today, the Senate voted 87-12, to repeal the unpopular 1099 reporting provision which was included in last year's health care reform bill. The provision would have started in 2012 and required businesses to report all non-credit card purchases of $600 or more with any vendor in a calendar year. The provision was added as a way to fund health care overhaul and was expected to generate nearly $20 billion annually. The bill is expected to be signed by President Obama.

February Distributor Sales Show Mild Improvement but Slower Growth

2011-03-30T22:53:00.002-04:00

HARDI announced North American HVACR average distributor sales for February 2011 up over 7% from same month last year and maintained a string of three consecutive months of at least a 10% annual growth rate. February’s numbers showed improvement over January’s performance but continue a downward trend in annual growth rates. See the full release here.

Charity and Practicality Combine with HFOT

2011-03-29T17:44:00.003-04:00

I couldn't be happier that HARDI's Impact Committee has chosen the fantastic organization, Homes for Our Troops, to be our primary philanthropic partner. HARDI met them at USGBC's 2009 Greenbuild. Homes for Our Troops does new builds and major retrofits for veterans who return from war with injuries and disabilities, and in testament to the organization's foresight, they do these builds and retrofits to maximize energy savings to keep the monthly operating costs as low as possible for the injured veteran. HARDI distributors have donated HVAC equipment and supplies to a few projects so far, and I'm estatic that we've got three members- Virginia Air Distributors, East Coast Metals Distributors, and Ferguson Enterprises- who all donated to Homes' 100th build starting this weekend in Fredericksburg, VA. Click here for more info on this build, and be sure to find any way you can to support Homes for Our Troops anywhere in the US.

Senate passes Continuing Resolution

2011-03-17T15:41:00.003-04:00

Today the Senate passed a Continuing Resolution, approved earlier by the House, which will avert a government shutdown until April 8th. President Obama is expected to sign the legislation, which contained $6 billion in budget cuts.

HARDI Economist Discusses Japan Disaster Implications

2011-03-17T00:01:00.000-04:00

HARDI Chief Economist, Alan Beaulieu of the Institute for Trend Research, issued a brief today to HARDI member companies outlining the economic implications of the terrible disaster in Japan. Beaulieu outlines how the disaster will have significant impact on some aspects of the economy, but it should not have a major impact on consumer demand in the US. HARDI members who did not receive this brief should contact services@hardinet.org. Non-member companies who would like to receive this kind of information in the future should contact membership@hardinet.org.

House Committee Approves Bill to Repeal EPA Authority

2011-03-16T11:07:00.003-04:00

On Tuesday March 15th, the House Energy and Commerce Committee approved a measure that would repeal EPA authority to regulate Greenhouse gases. The measure is expected to receive approval from the larger House.

On the Senate side, Mitch McConnell (R-KY) attached a similar amendment to a pending small business bill. Competing legislation has also been introduced by Senator Jay Rockefeller (D-WV). 60 votes would be needed to advance the legislation on the Senate side and it is now entirely possible that those votes could be had.

The Obama Administration has signaled it would veto any stand-alone bill which would repeal EPA authority.

Home Performance w/ ENERGY STAR Moving to DOE

2011-03-15T08:39:00.002-04:00

The Home Performance with ENERGY STAR program for energy efficient whole-home residential retrofits that has resided at U.S. EPA since its inception is moving to U.S. DOE. As EPA funding come increasingly under attack by Congress, it is believed the move is being made so more resources will be available to the growing program. Home Performance with ENERGY STAR is hosting a stakeholder meeting on April 13 in Washington, DC to review the move and transition in more detail with stakeholders. For the formal release about the transition, click here.

HARDI signs on to case before the NLRB

2011-03-09T17:25:00.002-05:00

Today, HARDI signed on to a brief that was filed by the Coalition for a Democratic Workplace (CDW) for a case before the National Labor Relations Board - Specialty Healthcare and Rehabilitation Center of Mobile and United Steelworkers, District 9, 356 NLRB No. 56 (2010).

The major issue in this case is whether Labor Unions can disenfranchise workers who may oppose joining a union. This action would allow unions to select voters for elections and would change rules that have been in place for over 50 years.

HARDI will continue to monitor and speak out on important issues before the NLRB.

Adminstration tells NLRB to back off

2011-03-09T14:42:00.003-05:00

After initially supporting the NLRB against proposed budget cuts from the House, the Huffington Post is reporting the Administration has moved away from that support and told the NLRB to tone down its adversarial rhetoric towards the House. Read the story here.

Over $1 million dollars of illegal R-22 seized in Canada

2011-03-08T09:56:00.004-05:00

Canadian officials have announced the conclusion of an investigation regarding the illegal importation of HFCF-22. The company, Gestion Alexis Dionne, Inc. and its president have accepted responsibility for illegally importing 120,000 kg of HCFC-22. Click here to read Environment Canada's press release.

AHRI January 2011 Heating, Cooling Equipment Shipment Data Shows Overall Positive Trend for Central Air Conditioners And Air-Source Heat Pumps

2011-03-07T17:08:00.001-05:00

AHRI's summary of unit shipping data from January 2011 reports decreases from January 2010 in the movement of residential gas and electric storage water heaters, commercial gas storage water heaters, and oil warm air furnaces, and increases for commercial electric storage water heaters, gas warm air furnaces, central air conditioners, and air-source heat pumps.

Overall, January 2011 shipping data is positive for central air conditioners and air-source heat pumps, especially when considering the December 2010 data, according to Andrew Duguay, HARDI economic analyst. See HARDI's complete summary and analysis here.

Distributor Growth Cools Considerably to Start 2011

2011-03-01T21:06:00.001-05:00

HARDI announced North American HVACR average distributor sales for January 2011 affirmed the association’s concerns about a post-tax-credit-slump following the 25c tax credit cap reduction from $1,500 to $500. The January 1, 2011 cap reduction also include the imposition of a “lifetime cap” barring previous credit recipients dating back to 2006 from claiming credits for additional energy efficiency improvements performed this year. HARDI’s Monthly Targeted and Regional Economic News for Distribution Strategies (TRENDS) Report showed average growth for the month down nearly 12% from last month’s strong 17.4% average growth rate. Click here for the full release.

Early 2011 HVACR Events Fuel Increased Optimism

2011-02-18T09:00:00.002-05:00

2011's AHR Expo in Las Vegas a few weeks ago was the best of that event I've seen since joining our industry in 2006. Well attended and energetic, this year's Expo got me rethinking my rather subdued forecast for 2011. I just returned from ACCA's Annual Conference and Indoor Air Expo in San Antonio, TX (great town, btw!!) and was excited to see the Expo's momentum carry into and through this key industry event.

HARDI has always been a supporter and proponent of ACCA, but after attending my first ACCA Conference, I'm convinced we need to step up our promotion of our industry's primary contractor trade association. We'll all benefit from growing its membership footprint so more contractors can be exposed to and learn from a number of the most impressive professional contractors you'll find in our industry. ACCA's sessions are usually led by members willingly sharing their last innovations and roadmaps to their significant successes. This is a great atmosphere, and the ACCA contractors we met there were the picture of the type of contractors HARDI distributors always say they prefer to do business with.

If you're a contractor and not an ACCA member, join today and book your flight to next year's Annual Conference in Las Vegas. If you're a distributor and have never attended an ACCA Conference, mark your calendar for March 5-8. In the meantime, take a close look at ACCA's new Quality Assured Contractor Recognition Program unveiled in San Antonio. It's a big deal.

Small Biz Lending Stabilizing, Opportunity for 2011 Growth

2011-02-11T08:49:00.001-05:00

For Release: February 10, 2011

Contact: Patrick Morris (202) 205-6941

patrick.morris@sba.gov

Small Firm Lending, 2009-2010: Harbingers of Growth

WASHINGTON, D.C. –Lending to small firms by U.S. financial institutions continued to decline, but began to stabilize in some loan size categories over the 2009-2010 period. This is according to the Office of Advocacy’s latest edition of Small Business Lending in the United States, released today. The study finds that small business lending dropped by 6.2 percent, less than the 8.9 percent drop experienced in large firm lending over the 2009-2010 period. GDP has turned upward, and business lending may follow the pattern of other recessions, in which commercial and industrial lending grew only after recovery was well under way.

“Businesses and lenders continued to exercise caution in borrowing and lending through 2009-2010,” said Chief Counsel for Advocacy Winslow Sargeant. “As the economy improves, this study, through its state-by-state display of lender performance, can help both small business borrowers and lending institutions see where small firms are beginning to find the capital they need.”

The study finds that lending in the smallest business loans under $100,000 began to stabilize in 2009-2010—the total was down by 1 percent, compared with a 5.5 percent drop in 2008-2009, and real estate loans accounted for the entire decline.

Small Business Lending in the United States, 2009-2010, uses data reported by financial institutions to their regulatory agencies to compile state-by-state rankings of these institutions with respect to their small business lending. Two types of reports are used: Consolidated Reports of Condition and Income (Call Reports) and Community Reinvestment Act (CRA) reports. (The rankings are unrelated to banks’ status with respect to Small Business Administration lending programs.)

The Office of Advocacy of the U.S. Small Business Administration (SBA) is an independent voice for small business within the federal government. The presidentially appointed Chief Counsel for Advocacy advances the views, concerns, and interests of small business before Congress, the White House, federal agencies, federal courts, and state policymakers. For more information, visit www.sba.gov/advo, or call (202) 205-6533.

Strong December Sales Reaffirm Tax Credits' Impact

2011-02-06T12:01:00.003-05:00

HARDI announced North American average HVACR distributor sales for December closed out 2010 in line with the association's forecast, but fell short of most manufacturer and analyst projections going in to the year. HARDI's monthly Targeted and Regional Economic News for Distribution Strategies (TRENDS) report showed average growth for the month of 17% over December 2009, undoubtedly driven by the impending expiration of the full $1,500 residential tax credits. Click here for the full release.

President unveils energy efficiency plan

2011-02-03T15:00:00.003-05:00

On Thursday President Obama laid out the first marker in his goal to increase energy efficiency in the Unites States. The plan, which he first discussed during the State of the Union speech focuses on making commercial buildings more efficient.

The Hill newpaper reported that "under the plan, the Small Business Administration will work to encourage lenders to give more financing for commercial retrofits. In addition, the administration will call on Congress to provide grants for local and state governments that streamline building codes and regulations as well as provide new tax credits for energy efficient buildings."

The Administration has not revealed the cost of this proposal, but did state that the cost would be offset by eliminating tax breaks to the oil and gas industry.

Health-Care Repeal Defeated in Senate

2011-02-03T09:58:00.002-05:00

By a party line vote of 51-47, the Senate voted down a measure that would have repealed last years overhaul of the health-care system. This effectively ends and legislative repeal effort of Obamacare. All eyes will continue to focus on the judicial branch and its rulings surrounding the legislation, which will likely end up in the Supreme Court. It is expected that the House will now begin to focus its attention on repealing selected provisions of the bill.

In related news, the Senate did pass a repeal of the 1099 reporting provision that was included in the original health-care legislation. The provision, which would have required a business to file a 1099 tax form when paying a vendor more than $600 in a year, was repealed by a vote of 81-17.