Charity and Practicality Combine with HFOT

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.

Home Performance w/ ENERGY STAR Moving to DOE

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.

Distributors' November Sales Strong, but 2011 Challenges Loom

"The latest numbers from HARDI distributors is very encouraging, however a word of caution is worthwhile given the outlook for housing, end of the [full] tax credit, and the outlook for the commercial industry," said HARDI Chief Economist, Alan Beaulieu. "Banks are beginning to lend more commercially but housing will be an ongoing lending issue. We would suggest that too much not be read into the numbers. A straight-line projection at this point could be disastrous."

See the full release here. HARDI will be releasing a down-graded forecast for Q1 2011 next week and hosting a webinar with Beaulieu on January 18 exclusively for HARDI members. Go to www.hardinet.org for more information.

The Good, Bad, and Future of 25c Tax Credit Extension

It should not be minimized what a victory it was to have an extension of the 25c tax credit for residential energy efficiency improvements included in the tax bill that was signed into law last week. Just a few months ago most lawmakers knew little about 25c, and it was competing against a Rockefeller Center-sized Christmas tree of other tax provisions for inclusion in that bill. Congrats to HARDI's Manager of Government Affairs, Jon Melchi, ACCA's VP of Govt. Affairs, Charlie McCrudden, and Austin Primiano of Lennox International who tirelessly worked Washington and coordinated efforts over the last several months to secure this extension.

Unfortunately, an extension in today's political climate cost a reduction in the credit amount but I know HARDI will continue to work towards at return to the previous $1,500 credit level. As evidenced in this Columbus Dispatch article, the reduced level is causing a rush by many homeowners to get improvements and HVAC installations done before the full $1,500 credit expires next week. November and December are shaping up to be huge months for HVAC distributors and contractors, however we must look ahead to what could be a tough Q1 next year. 2011 will be about getting back to basics. A $500 credit is nice, but it won't create demand like $1,500 did so be prepared to use slow January and February to train and educate your people and put them in the best position possible for a grind-it-out 2011.

22 Building Trades Leaders Make Late Push for 25c Extension

HARDI and 21 other leading organizations representing manufacturers, distributors, contractors, small businessess, state officials, and energy efficiency interests sent a letter today to Senate leadership urging the full extension of the "25c" tax credit set to expire at the end of the month. 25c provides homeowners with access to a credit up to $1,500 for qualifying energy efficiency improvements, and has been essential to HARDI distributors' modest growth in 2010.

Currently the Senate is debating a tax bill which includes only a one-year extension after a slashing of the credit amount, and HARDI has concerns that the severely paired down extension will provide just extremely limited sales and employment benefit to the HVAC industry. We have little time left to try to get a full extension passed by the Senate. Go to www.savehvacjobs.com today to do your part to help!

2010 Annual Conference: Distributors Stepping Up

Last year's HARDI Annual Fall Conference was dominated by the AHRI-ACEEE regional standards consensus agreement. This year's Conference was hijacked by "dry-shipped" R-22 residential condensing units. Many in-depth discussions were had and it became obvious how important HARDI's position and role in this issue will be to determining how long this practice might continue.

Attendance mirrored our industry's performance this year by far exceeding 2009, but falling just short of 2008. With 1,100 of the the HVACR industry's finest, this conference also featured the most participation by equipment manufacturers to date with Nordyne, Rheem, Trane, Goodman, Mitsubishi, Daikin, Sanyo, LG, and even more. Allied Air was especially recognized for a whopping 50 years of participation in our Conference Booth Program.

HARDI's Board of Directors added over 50 new wholesale distributor members, with many being part of a new strategic partnership with Johnstone Supply. Mingledorff's Inc. won this year's NATE testing award for providing the most NATE tests as an organization, and helping HARDI's distributor membership maintain its standing as the #1 provider of NATE testing.

Just about every Committee and Council meeting and session was packed or over capacity as distributors attempt to grow their competitive advantages by being the most informed and most efficient. Check out #hardiconf on Twitter for play-by-play from Houston.

Thank you to our special guests and presenters from AHRI, ACCA, NATE, HRAI, Consortium for Energy Efficiency, US EPA ENERGY STAR, Food Marketing Institute, Alliance for Responsible Atmospheric Policy, and JP Morgan Equity Research. And as always HARDI's economists from the Institute for Trend Research were outstanding.

ACCA-RESNET MOU a Step in Right Direction

ACCA and the Residential Energy Services Network (RESNET) announced the signing of an MOU "to work together to promote home energy performance". This is a positive and important step forward for the HVAC industry as it should streamline the ability for quality ACCA contractors to participate in whole-home, performance-based energy efficiency retrofit programs such as Home Performance with ENERGY STAR. Hopefully this can lead to an accreditation process to distinguish the best, most skilled contractors who are capable of performing or leading whole home retrofits.

The Urgency of 25c Extension

Check out our column in the Sept. 20 issue of The News detailing three huge reasons why every HVAC businesses should be on www.savehvacjobs.com at least once a day, everyday.

HARDI Launches Industry, Nation Wide Effort to Extend HVAC Tax Credits

HARDI launched today a new website, http://www.savehvacjobs.com/. The new site is for the entire HVAC industry to use to promote and facilitate an nation-wide grassroots movement to extend the expiring 25c, $1,500 residential tax credits for the installation of high efficiency HVAC systems. From this new website, HVAC contractors, distributors, manufacturers, manufacturer representatives, and service providers can quickly and easily personalize a pre-drafted letter or compose their own letter to their federal legislators urging the immediate extension of these important tax credits before they expire at the end of 2010.

HVAC businesses can also send their company name or logo to join@savehvacjobs.com to show their support for 25c extension. “Our goal is to have a page with so many HVAC company names and logos on it that the page appears to scroll forever,” said HARDI’s Executive Vice President & COO, Donald Frendberg. “The idea started with Riley Sales, a distributor member outside Philadelphia, PA, who had created an online petition for their employees and contractor customers to sign and send to their representatives calling for a tax credit extension. It was such a fantastic idea that we asked if we should do something similar on a national level.”

HARDI is encouraging all of its over 400 U.S. distributor member companies to show their support on the site and more importantly to urge all of their thousands contractor customers to use the site several times a week until their representatives get these tax credits extended. “We know from many testimonials which we’ll start to post on this new website soon that many HVAC distributor jobs were in fact saved or created by the sales boost this tax credit provided,” stated HARDI Vice President, Talbot Gee. “We can only imagine the positive employment impact the tax credits have had on the tens of thousands of professional contractors out there, and of course the manufacturers of the qualifying equipment. We hope this provides the industry with a central portal for companies of all types to come together and speak as one massive and loud unified voice until we get these tax credits extended.”

HARDI has repeatedly expressed serious concerns of a regression in 2011 of the modest recovery experienced so far in 2010 if the $1,500 tax credits are not extended before they expire this December. “New units still aren’t flying off the shelf like we hoped despite the heat and the tax credits this year, but the mix of high-efficiency units being installed is keeping a lot of HVAC businesses going these days,” said Gee. “I don’t want to think about a 2011 without the benefit of these tax credits so we’re urging every HVAC business to do everything they can in the next three months to help us get these tax credits extended.”

ACCA's McCrudden on 25c Extension: Couldn't Have Said it Better Myself

ACCA's VP of Govt. Affairs (and son of a HARDI distributor member owner) gets it and says it well in his latest blog post about the potential for extending the $1,500 25c tax credits. This is the time for urgency on this matter, and I just can't understand why there hasn't been more of it across the HVAC industry. A failure to extend these credits BEFORE they expire this year sets the table for rough 1Q 2011 for distributors, contractors, and manufacturers.

Wouldn't it be Nice to See These Everywhere Right Now?

Is PA the New Model for Financing Energy Efficiency?

We hope so. This market-based consumer finance program based on a concept HARDI has been promoting to states and utilities over the last year is not only sustainable, but also a highly efficient use of energy efficiency program dollars. Other states should follow PA's lead and address the real barrier to residential energy efficiency deep retrofits: today's lack of affordable consumer financing.

Energy Bill Dead for Time Being

Senate leadership pulled the Energy Bill from the Senate schedule this week meaning that oil spill policy and Home Star will have to wait until September at best to be addressed.

ACCA Sends Excellent Letter to Senate re Home Star

Hats off to ACCA. This is an excellent letter they sent to all members of Senate outlining in great detail what they see as essential for actually making Home Star work.

NATE/SNIPS Article Misreads HOME STAR Tea Leaves

HARDI just posted an alert on our website responding to this SNIPS article promoting the benefits of the potential HOME STAR bill for NATE Certified technicians. NATE certifications are fantastic and HARDI and our members work hard each day to get more HVACR technicians certified, but understand that the current HOME STAR bill still needs significant improvements to truly benefit NATE certified technicians and their contractor firms. If enacted in its current form, over a third of the requested $6 bil in funding would NOT be available to the vast majority of NATE certified professionals. HARDI would love to see a simple, widely accessible, and immediate rebate incentive programs for high-efficiency retrofits, but right now HOME STAR meets none of those criteria.

ACCA and Others Seek Improvements to Home Star

According to ACCA's official release, the HVACR contractor association has joined with the Green Mechanical Council, the National Association of Home Builders, the National Lumber and Building Material Dealers Association, the National Roofing Contractors Association, and the Plumbing-Heating-Cooling Contractors National Association on a letter to the Senate urging two primary improvements to the latest "Home Star" bill:

1. Redirect the rebates to homeowners rather that to contractors
2. Open up "Gold Star" and the parallel 25E tax credit to more than BPI Accredited contractors

The bill faced signficant challenges prior to the concerns raised by these six influential organizations. Whether these changes are made might not matter since there continues to be little agreement on how to pay for the $6 billion program. HARDI agrees that opening up the contractor eligibility is essential for passage of the bill, however passage of an unappropriated Home Star could be far more disruptive and costly on the industry than no passage at all.

Rhetoric Will Not Pass a Climate/Energy Bill This Year

Despite tough talk from the Administration and Senator Reid about a commitment to passing "comprehensive climate legislation" after the July 4 recess, political realities are fighting back hard as outlined in this Politico piece. While a lean, energy-only bill could almost certainly pass when the Senate reconvenes, it seems inevitable that leadership will be unable to keep themselves from loading it down with controversial oil-related or carbon policies which seem highly likely to submarine any bill regardless of what it's attached to.

WSJ Discusses Federal Energy Efficiency Incentives

Thanks to ACHR News for Tweeting this WSJ article. In it, the WSJ talks about the growing movement to extend the 25c residential tax credits, and how they might interact with the Home Star proposal. As I've discussed before, Washington's appetite/political will for new spending measures has all but dried up so Home Star faces a stiff challenge. Extending 25c may just been the path of least resistance if the right vehicle for doing so can be identified.

Gridlock, Deficits, and an Election Year

I spent much of last week on policy issues trying to poke holes in my own assertions that Washington has all but shut down already for the rest of the year as it pertains to major legislation such as energy/climate, financial reform, and tax policy. Unfortunately I'm now back in Columbus with little evidence to the contrary. Today's piece in The Politico reinforces the Senate's lack of appitite for any more monster initiatives and spending. The key challenge is that there are plenty of smaller, inexpensive or non-spending measure bills out there that could pass, but leadership's insistence on packaging these items into massive, monster-bills with ever-ballooning price tags seems likely to submarine several good ideas. All that being said, I also left D.C. wary of what we might see come up during the Senate's "lame-duck" session after the November elections. These are always unpredictable sessions, and there could be several key Senators no longer with constituencies to worry about pleasing with these votes.

New Energy Star Label for Data Centers an HVAC Opportunity

EPA announced a new ENERGY STAR label the top 25% of data centers can attain to demonstrate their superior energy efficiency. Upgrading to high-efficiency HVAC systems will be one of the easiest ways data centers can achieve this new performance label.