HARDI Expresses Concerns Over New Energy Star Furnace Specs

Just posted to HARDI's website, HARDI filed comments with U.S. Environmental Protection Agency (EPA) ENERGY STAR program on the latest draft of proposed specifications for the next generation of residential furnace's labeling program. Think regionalization and take a guess at the majority of our concerns.

The NEWS: DOE to Provide $7mil to 24 States to Update Energy Codes

If you've not seen this article from The NEWS, you need to. ARRA (the stimulus bill) provided the U.S. Department of Energy (DOE) with funds to use as a carrot and stick to states to adopt and enforce more stringent building energy codes (IECC for residential, ASHRAE 90.1 for commercial). For many states, and now 24 more, the time to debate whether the more stringent energy codes are reasonable, attainable, or justified has passed, and now it's up to our industry to figure out how to live with them (and not allow another California Title 24-ish disaster to occur). If you're not closely tied into your state(s)' energy offices, code officials, etc., you had better find a way to do so quickly...especially in these 24 states.

Missing the Forest Through the "Dry-Shipped" Trees

Yesterday HARDI filed comments with the U.S. Dept. of Energy (DOE) on their proposed guidance for certifying newly-produced R-22 residential condensing units. DOE proposed two paths that would essentially pave the way for the installation of mis-matched condensing units, and it was this apparent reversal in decades of precedent that is the point; a point that I fear most in our industry may be missing. While the recent reintroduction of "dry-shipped" R-22 condensing units (due to the way EPA's 2010 HCFC Phaseout Regulations were written which I still consider a loophole) is the talk of the HVAC community right now, DOE's proposed certification procedures for these units is the real story. If unchanged, DOE's guidance is essentially signaling knowing consent that these condensing units will be installed with unmatched indoor coils. This is drastically different than DOE's matched system certifications for any other newly-produced split system based on the assumption that both the indoor and outdoor equipment will be installed at the same time. Instead DOE is proposing a blatant gaming of the test procedure system far detached from reality.

While our industry has invested resources to promote, support, and advocate the value of properly matched system installations, this one DOE ruling could undermine all of it with one bureacratic swoop. Either our industry is based on matched, split-system cooling or it isn't. Either our industry delivers the performance listed on hang tags or it doesn't. This isn't a refrigerant issue, this is a glimpse into our future. Either we support and defend our current matched system certification process or we abandon it because there is no way we can have it both ways for long. R-22, R-410a, or whatever the next refrigerant coursing through our split systems is isn't the point. Ensuring those split systems are properly matched and running as advertised is, which is why HARDI cannot support DOE's proposed endorsement of improper installations.

DOE Ceases Sales of Air Con Int'l Air Conditioners

The Department has issued a Notice of Noncompliance Determination and Proposed Civil Penalty to Air-Con, International, requiring Air-Con to cease the sale of certain air-conditioning systems in the United States and proposing a civil penalty of $231,090 for sales of these products in violation of the applicable energy efficiency standards. This action reflects the Department’s continued commitment to act aggressively to remove unlawful products from the market. See the Department of Energy's Office of General Counsel full release here.

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.

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.

Follow Up to DOE Enforcement Post re: ADP

Just received from ADP regarding yesterday's DOE enforcement action:

Advanced Distributor Products (ADP) Responds to Department of Energy (DOE) Notice of Noncompliance Determination

On June 3rd, 2010, the DOE issued a press release stating two heat pump models manufactured by ADP fail to meet applicable federal energy conservation standards. ADP currently has over 86,000 active energy conservation standards listings. Through a database entry error, ADP incorrectly listed these two heat pumps (both inactive R-22 units) referenced by the DOE as noncompliant. The errors have been corrected and in fact, both units were compliant at all times with applicable federal energy conservation standards. ADP fully stands behind the integrity of its certification and rating process.

DOE Takes Action Against 3 HVAC Manufacturers

Aspen, Summit, and ADP had a total of 62 matched air-conditioning and heat pump certifications suspended yesterday and were issued immedate sales and distribution prohibitions by the U.S. Department of Energy yesterday. Here's the agency's complete release.

HARDI Urges DOE to Not Undermine Energy Efficiency Incentives

HARDI submitted these comments to the U.S. Department of Energy for two rulemakings evaluating the minimum appliance standards for residential furnaces, central air-conditioners, and heat pumps. Expressing concerns over the negative impact an increase in minimum standards, or their regionalization, could have on the growing energy efficiency programs that have become such a vital driver for high-efficiency HVAC installations, HARDI questions DOE assumptions that an increase in minimum standards would have minimum impact on the HVAC industry and consumers.

DOE Finalizes New Efficiency Standards for Residential Water Heaters

The DOE announced the publication of a final rule yesterday for more stringent efficiency standards for residential water heaters. The new standards for water heaters take effect five years from yesterday while new standards for some direct heating and pool heating equipment covered by the rule become effective in three years. Of note is the requirement for larger residential water heaters to be either heat pump equipped if electric or condensing if gas by the effective date. You can read the final rule here.

A Glimpse Into the Challenges of Regional Standards

The US Dept. of Energy has started its re-review of the federal energy conservation standards for residential gas furnaces, which now includes authority to establish regional standards, by issuing this Rulemaking Analysis Plan. In it, DOE devotes a section to consider how regionalized efficiency standards could be enforced. Below are DOE's eight initial regional standards enforcement considerations which HARDI is working with AHRI and ACCA to respond to:

1. appropriate modifications to appliance labels to indicate in which regions of the country specific products are allowed to be installed;
2. requirements that marketing literature for systems clearly indicate in which regions a product could be legally installed;
3. encouraging state and local entities to adopt these regional standards in building codes and to provide reference to the required minimum efficiencies in required mechanical or electrical permits;
4. encouraging states who have regional appliance standards to adopt and codify the appropriate regional standards enacted by DOE;
5. providing that installations that don’t meet regional standards could result in installers being subject to fines for each occurrence;
6. requirements to certify compliance of installations through warranty registration or other registration means;
7. an informational program so that consumers are made aware of any regional standards, what to look for in purchasing products, and what implications there would be for improper installation; and
8. competitively driven enforcement where manufacturers/distributors/contractors report
   other manufacturers/distributors/contractors whose actions result in installations not in
   compliance with Federal standards.

Alabama Votes to Update State Energy Code

The Alabama House has unanimously passed a bill that would upgrade the state’s residential energy codes to comply with federal energy and building guidelines. The bill requires the Alabama Energy and Residential Codes to adhere to the 2006 edition of the International Energy Conservation Code, replacing the 1993 energy policy that the codes follow currently. The bill awaits the signature of Governor Bob Riley to become law.
Source: Birmingham Weekly

HARDI Helps DOE Understand HVACR Distribution

HARDI organized a tour of full-line HVACR wholesale distributor member, Aireco Supply in Savage, MD for DOE and Navigant Consulting analysts on Friday. DOE is currently preparing for two appliance standards rulemakings on HVAC residential products. Central air-conditioners and heat pump efficiency standards are being reviewed, as are standards for gas furnaces, and all of these products are potentially subject to regionalized standards. HARDI has been working with DOE to better understand the impact analysis process for evaluating the impact of efficiency standard changes on wholesale distributors, and ultimately end customers. Today's tour marked a major step towards helping DOE better characterize HVACR wholesale distribution and, therefore, perform more accurate market analyses in these and future rulemakings.

New Energy Star Designation for Geothermal Heat Pumps

This new designation went into effect December 1, 2009 and establishes the first Energy Star label and specifications or geothermal heat pumps.

ACCA Survey Shows Mixed Views of AHRI Agreement

In today's "Hot Air" post, ACCA's government affairs blog, the results of a membership survey on reactions to the AHRI agreement to increase and regionalize the efficiency standards for the most common residential HVAC equipment were revealed. Many responses were fairly evenly mixed, except for the 74% that shared serious concerns about how regionalized standards would be enforced.

AHRI, HARDI, and ACCA Make Important Progress

Earlier this week during the AHRI Annual Meeting in Washington, D.C., staff and volunteer leaders from AHRI, HARDI, and ACCA held a private meeting to discuss the importance of better communications and coordination on key policy initiatives. HARDI and ACCA were able to reiterate why no one organization can effectively speak on behalf of the entire industry while AHRI explained in greater detail why they felt forced to make several difficult decisions over the last year, and how those decisions were in the industry's best interests. The meeting concluded on a very positive note with specific action items to ensure greater cooperation and partnership in the future. HARDI extends its thanks to all who devoted valuable time to this important meeting.

Regional Standards Agreement Discussions Will Dominate Next 3-5 Years

Yesterday's big announcement of AHRI's agreement with environmental advocates on increased and regionalized efficiency standards for many HVAC products created quite a stir throughout our industry. To streamline your reading today, here's a compilation of key links about the agreement:

• AHRI's statement
• Text of the agreement
• ACEEE agreement Fact Sheet
• ACCA's statement
• HARDI's letter to members
• The News' Editor's Blog Post

HARDI's Letter to Members re: AHRI Regional Standards Agreement

To: HARDI Member Companies

From: David McIlwaine, HARDI President
Karen Madonia, HARDI Government Relations Committee Chair

Re: AHRI Agreement to Establish Regional HVAC Efficiency Standards

Date: Tuesday, October 13, 2009


Dear Fellow HARDI Members:

This morning the Air-conditioning Heating and Refrigeration Institute (AHRI) hosted a joint press conference with the leading environmental and energy efficiency advocacy groups to formally sign an unprecedented agreement that would establish regionalized efficiency standards on residential split system air conditioners and gas furnaces. The agreement is intended to head off a Department of Energy rulemaking on these products set to be proposed later this year that AHRI’s leadership believed was going to be overly aggressive and potentially involving three cooling regions and two different heating regions. The AHRI agreement establishes the basis for three regions along state lines. The first would be all states north of the 5,000 heating degree day (HDD) line with an unchanged split system air conditioning standard at 13 SEER and a higher gas furnace standard of 90% AFUE. A southeastern region with states east of New Mexico and south of the 5,000 HDD line would have a residential split system air conditioning standard of 14 SEER and gas furnace standard of 80% AFUE. A southwestern region consisting of California, Nevada, Arizona, and New Mexico would also have a gas furnace standard of 80% AFUE, but would have multiple efficiency standards on split system air conditioners of 14 SEER, 12.2 EER on systems less than 45,000 Btu/h and 14 SEER, 11.7 EER on systems greater than 45,000 Btu/h and less than 65,000 Btu/h. National standards for split and packaged air source heat pumps, weatherized furnaces, oil furnaces, and packaged air conditioners will also increase (with an EER standard is established in the southwestern region). The new non-weatherized furnace standards will take effect in 2013 and all other standards changes will take effect in 2015.

HARDI will release a more detailed summary of this significant agreement soon, but felt it was important to immediately communicate the most important aspects of this agreement. HARDI learned of these negotiations in mid-August and immediately expressed concerns to AHRI about their unilateral negotiations on an agreement which conflicted with every major policy position of the industry regarding appliance standards. A small HARDI delegation was invited to meet with AHRI’s Unitary Products Section (equipment manufacturers) to hear a detailed summary of the agreement under terms of strict confidentiality. We questioned AHRI’s decision to enter into these negotiations without the input and involvement of any other industry stakeholders such as distributors or contractors and stressed that regionalized efficiency standards would arguably affect HVAC distributors and border state contractors more than equipment manufacturers. Despite these and a host of other concerns from HARDI and ACCA, AHRI remained committed to finalizing this agreement and invited HARDI and ACCA to participate in today’s signing ceremony.

HARDI declined to sign today’s agreement because it signaled a complete reversal of every industry policy position of the last three plus years and AHRI was unwilling to provide assurances that they would not enter into future “consensus” agreements unilaterally on the next phase of implementation and enforcement of this agreement or any other future agreements affecting other industry stakeholders. HARDI will take a proactive leadership position in the enforcement and compliance aspect of this agreement, and retains the right to advocate against all or portions of the agreement (to be determined by the HARDI membership in the coming months) as the signatories attempt to advance legislation to implement the terms of the agreement.

HARDI regrets AHRI’s decision to negotiate and finalize such a significant agreement in isolation from the rest of the industry, but HARDI does believe that AHRI’s actions were intended to be in the best interests of the HVAC industry. The details and implementation of this unprecedented agreement will undoubtedly be the center of many discussions leading up to and at the HARDI Fall Conference later this month, and is a large reason why AHRI’s President, Steve Yurek, will be participating in the HVAC Systems & Equipment Council session on Tuesday, November 3 in Orlando.

Every HARDI member will have ample opportunity to contribute to HARDI’s efforts on this important issue and all distributor members are welcomed to join the Residential A/C and HP Rulemaking Task Force that was formed last year to represent HARDI throughout the DOE’s rulemaking on these covered products. Contact HARDI if you would like to be added to this task force (linked to gr@hardinet.org) and look for more detailed information on this AHRI agreement in the very near future.