A pending regulation by the Federal Acquisition Regulatory Council would require firms that receive more than $7.5 million in contracts annually to disclose greenhouse gas emissions from their business and supply chain – putting a bullseye on the back of the steel industry, which worldwide accounts for 8% of annual greenhouse gas emissions.

Contractors above $50 million also will need to disclose emissions from subcontractors and suppliers, conduct a climate risk assessment and set non-binding greenhouse gas reduction targets. In a Feb. letter, U.S. Senator Joni Ernst (R-IA) wrote extensively about her opposition to the regulation, noting tracking supplier emissions is going to impact even the smallest of contractors.

“If a small business owner determines there is no business case for staying in or entering the federal marketplace due to the high regulatory burden, they will leave the federal marketplace altogether, leaving fewer vendors capable and willing to meet government's needs,” she wrote.

But Randy Charles, metallurgist and founder of Greenway Steel, says this pending regulation isn’t the only front contractors are facing in the decarbonization battle – and not all of them only impact federal contractors.

2023 building decarbonization legislation recap

Decarbonization legislation passed across 20% of U.S. states this year, according to the National Caucus of Environmental Legislators.

In Feb. 2022, the Securities and Exchange Commission proposed a draft rule to enlist companies in calculating and disclosing their climate-related costs. In May, the Biden administration made low embodied carbon procurements a priority in agency purchases and implemented emissions reduction targets. Then at the state level, states like California have cap and trade. New York and Vermont also passed strong building decarbonization legislation this year, according to an analysis by the National Caucus of Environmental Legislators.

“Utility providers and suppliers of purchased goods also may have targets already established. Many large public companies have been communicating their targets through sustainability reporting. Targets are being established for 2030 and 2050, but a lot can happen between now and then,” Charles said.

Sweden aims for commercial scale green steel by 2026

Speaking at the summer Metal Construction Association's 40th annual meeting, Charles said the U.S. seems to be a couple years behind the EU on regulatory developments and initiatives, particularly hydrogen. However, the US is globally leading in terms of low greenhouse gas emissions related to steel production. 

Sweden and the EU have been more motivated on the transition to hydrogen owing to the continent’s reliance on older blast furnace technology as opposed to electrical options. The U.S. fleet of electric arc furnaces, which now account for 70% of domestic steel production, are powered by electricity. And this is a step up from the blast furnaces that still dominate Europe’s steel industry with a 75% higher carbon intensity. Sweden also has abundant high-flowing water to supply power for producing green hydrogen that the country can develop economically, Charles said.

He noted Sweden has supported a green transition for its steel sector with its state-supported enterprises, replacing the carbon intensive coking coal input with fossil-free hydrogen power at SSAB Oxelösund. Full commercial production will begin in 2026, with customers like Volvo and others committing to purchases to improve their emissions reduction goals and environmental, social and corporate governance (ESG) scores.

Recycling and upcycling scrap metal

Metal fixtures can give buildings lower lifecycle emissions than cheaper alternatives, owing to less frequent replacements. This has increasingly led to institutions requiring bids using the hardy material. To achieve green building certifications, recycled metal also helps.

“Majestic Steel is a big name in the HVAC space, and they’re doing their part in purchasing recycled steel,” Charles said, adding they also have a recycling program. The flat rolled steel supplier says on their website that they pass the savings from using scrap steel on to manufacturers.

Majestic Steel’s scrap recycling program saves 132,000 lbs of steel from landfills every year. And with more companies like Boeing jumping on board, contracting a recycler for all their aircraft to be disassembled at the end of their life, the metal recycling industry is ballooning in size. Domestically, the industry had a growth rate of 5.9% per year on average between 2017 and 2022.

“People are going to start looking at, once a product is over, 'what do I do to make sure it doesn't get back into the landfill,” Charles said. “And they have options.”

In 2022, U. S. Steel recycled approximately 3.0 million metric tons of blast furnace slag and 204,540 metric tons of steel slag. 

“A circular economy is really developing here, from the producer to the manufacturer,” Charles concluded.

Source: U.S. Steel Industry Shows Leadership in Building Decarbonization | ACHR News

Air conditioning, refrigeration, and other cooling technologies account for more than 20 percent of today's global energy consumption, while the refrigerants they use have a global warming potential thousands of times greater than carbon dioxide. In a recent study in the journal Science, a team led by Maryland Engineering Professors Ichiro Takeuchi, Reinhard Radermacher, and Yunho Hwang introduced a high-performance elastocaloric cooling system that could represent the next generation of cooling devices.

Takeuchi calls it "a completely different, completely green, environmentally friendly cooling technology, which bypasses chemical refrigerants to essentially rely on pushing and pulling pieces of metal to create cooling."

Caloric materials—including magnetocaloric, electrocaloric, and elastocaloric materials—can undergo phase transition and release, and absorb heat upon application of various fields and mechanical forces. The key feature is the compression and release of fatigue-resistant nickel-titanium (NiTi) tubes configured in a versatile, multimode heat exchange architecture.

"More than a decade ago, we were just playing with a NiTi wire," Takeuchi said. "By stretching it, you could get a substantial cooling effect one could feel by hand. That was when we started thinking about applying the concept to a cooling device."

Video showing live operation of a multi-mode elastocaloric cooler (at 10x speed). Superelastic NiTi tube bundles are compressed using hydraulic actuators. In this configuration, there are two top bundles and two bottom bundles operated in concert in direct work recovery mode in order to deliver 150 W of cooling power. The left plot is monitoring the temperature of the cooling medium (water) at outlet points of the bundles (blue: top; red: bottom). The right plot shows the temperatures of the heat source (blue) and the heat sink (red) as a function of time. Credit: Maryland Engineering

The team says it's possible to improve the performance of its system enough to make the technology commercially viable within several years. A current prototype can produce 200 watts of cooling capacity, enough to power a compact wine fridge, with plans to expand to window units, whole-house cooling systems, and commercial HVACs eventually.

Source: Elastocaloric cooling system opens door to climate-friendly AC (phys.org)

New laws could soon be in place in Miami-Dade County to protect outdoor workers from the extreme heat.

On Tuesday, the Miami-Dade County Commission passed unanimously the first reading of an ordinance to create a heat standard for outdoor workers. It would require certain employers to have an approved mandatory heat exposure safety program, access to drinking water and shaded recovery periods.

The county could also enforce penalties if employers violate the ordinance. County leaders are calling this an important and historic legislation.

"One death in the hot sun is one too many,” Commissioner Kionne McGhee said. "It is too damn hot not to be able to have water, shade, rest and protection."

"People are dying everywhere from the heat,” County Mayor Daniella Levine Cava said.

The legislation is also a huge win for local worker advocacy organizations in South Florida, who for the past two years have demanded a Miami-Dade heat standard to guarantee protections for outdoor workers.

Michael White works for Whiting-Turner Construction. Right now, they're building a new cancer center on Northwest 14th Street and 10th Avenue.

His day usually starts at 6:30 a.m. and he's not packing up until almost 12 hours later.

"It's been a different type of heat because the humidity is very strong,” White said. "You have to get the job done but you have to pace yourself."

White says light clothing, hydration and breaks are what gets him through the day, but he says this new ordinance is needed.

"It is a serious situation and I appreciate the county is taking a look to try and implement some things that'll make it easier,” White said.

The county commission passed unanimously on the first reading of the ordinance. Now it goes to a committee in September. If it passes as is, the mayor says it'll be the first such law in Florida and the U.S.

Miami-Dade County moves forward with ordinance to protect outdoor workers from extreme heat – NBC 6 South Florida (nbcmiami.com)

Florida Gov. Ron DeSantis talks with audience members during a fundraising picnic for Rep. Randy Feenstra (R-Iowa) on May 13, 2023, in Sioux Center, Iowa. | Charlie Neibergall/AP Photo TALLAHASSEE, Fla. — Several groups sued the DeSantis administration Monday over Florida’s latest anti-immigration law, arguing that it “inflicts enormous harm on people’s ability to go about their daily lives.” Filed in Miami federal court, the lawsuittargets the wide-ranging immigration policies enacted by Florida earlier this year at the behest of Gov. Ron DeSantis, a Republican presidential candidate who regularly criticizes how President Joe Biden is dealing with the surge of migrants crossing into the U.S. at the southern border. In challenging the new law, the groups are seeking to block the state from enforcing it on the grounds that it could impede federal immigration authorities and lead to “unlawful arrest, prosecution, and harassment.” The law in question, FL SB 1718, allows authorities to charge someone with human trafficking if they knowingly transport an undocumented migrant across state lines. And it would prohibit an undocumented immigrant from driving a car even if they have a driver’s license from another state and requires state hospitals that receive Medicaid to ask patients of their immigration status. It “put thousands of Floridians and residents of other States—both citizens and noncitizens alike—at risk of being arrested, charged, and prosecuted with a felony for transporting a vaguely-defined category of immigrants into Florida,” the lawsuit alleges. “Families may be unable to visit each other across state lines. Parents who live near the state border may be unable to drive their children to medical appointments or soccer matches.” The lawsuit was brought by several groups, including the American Immigration Council, Americans for Immigrant Justice, Southern Poverty Law Center and the ACLU Foundation of Florida on behalf of Farmworkers Association of Florida, a non-profit farmworker membership organization with nearly 12,000 members who are both documented and undocumented. It also has nine other unnamed plaintiffs, including one who is a U.S. citizen who serves as a director of a nonprofit organization based in southern Georgia. This plaintiff, as an example, transports immigrants of varying statuses to see medical specialists across state lines to Jacksonville yet now fears possible felony charges “for performing a key aspect of her job, and for doing what she believes to be morally just,” according to the lawsuit. The groups contend Florida’s law should be considered unconstitutional for going “far beyond” federal immigration policies and “penalizing a wide array of conduct that Congress chose not to prohibit.” “It impedes the federal immigration scheme by preventing immigrants from entering Florida,” the lawsuit alleges. “And it puts state officials in the unlawful position of making complex determinations about people’s immigration status and history.” DeSantis and his Republican allies contended during Florida’s session that the immigration crackdown would send a “message” to the Biden administration. The law also included $12 million for Florida to transport migrants from outside the state to Democratic strongholds, a controversial policy deployed by the governor and other leaders like Texas GOP Gov. Greg Abbott, who bused hundreds of migrants to cities like Washington, D.C., Chicago and New York.

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• 220.198 Experiential learning tax credit program.— (1) This section may be cited as the “Florida Experiential 364 Learning Tax Credit Program.”

• (2) As used in this section, the term: (a) “Apprentice” has the same meaning as in s. 446.021(2). (b) “Full time” means at least 30 hours per week. (c) “Preapprentice” has the same meaning as in s. 369 446.021(1). (d)(b) “Qualified business” means a business that is in existence and has been continuously operating for at least 3 years. (e)(c) “Student intern” means a person who has completed at least 60 credit hours at a state university or 15 credit hours at a Florida College System institution, regardless of whether the student intern receives course credit for the internship; a person who is enrolled in a career center operated by a school district under s. 1001.44 or a charter technical career center; or any graduate student enrolled at a state university.

• For taxable years beginning on or after January 1, 2022, a qualified business is eligible for a credit against the tax imposed by this chapter in the amount of $2,000 per apprentice, pre apprentice, or student intern if all of the following apply:

• The qualified business employed at least one apprentice, preapprentice, or student intern in an apprenticeship, preapprenticeship, or internship in which the student intern worked full time in this state for at least 9 consecutive weeks, or the apprentice or preapprentice worked in this state for at least 500 hours, and the qualified business provides the department documentation evidencing each apprenticeship, preapprenticeship, or internship claimed. The department may require the taxpayer to provide the taxpayer’s Registered Apprenticeship Partners Information Data System program identification number and other necessary information, which the department may verify with the Department of Education.

• The qualified business provides the department documentation for the current taxable year showing that at least 20 percent of the business’ full-time employees were previously employed by that business as apprentices, preapprentices, or student interns

• Each apprentice, preapprentice, or student intern provides the qualified business with verification by the apprentice’s, preapprentice’s, or student intern’s state university, Florida College System institution, career center operated by a school district under s. 1001.44, or charter technical career center, or provider of related technical instruction that the apprentice, preapprentice, or student intern is enrolled and maintains a minimum grade point average of 2.0 on a 4.0 scale, if applicable. The qualified business may accept a letter from the applicable educational institution or provider of related technical instruction stating that the apprentice, preapprentice, or student intern is enrolled as evidence that the apprentice, preapprentice, or student intern meets these 17 requirements.

• (4) Notwithstanding paragraph (3)(b), a qualified business that, on average for the 3 immediately preceding years, employed 10 or fewer full-time employees may receive the tax credit if it provides documentation that it previously hired at least one apprentice, preapprentice, or student intern and, for the current taxable year, that it employs on a full-time basis at least one employee who was previously employed by that qualified business as an apprentice, preapprentice, or a student intern. (5)(a) A qualified business, including all subsidiaries, may not claim a tax credit of more than $10,000 in any one taxable year.

• (b) The combined total amount of tax credits which may be granted to qualified businesses under this section is $2.5 million in each of state fiscal years 2021-2022, and 2022-2023, 2023-2024, and 2024-2025. The department must approve the tax credit prior to the taxpayer taking the credit on a return. The department must approve credits on a first-come, first-served basis.

• (6) The department may adopt rules, including emergency rules pursuant to s. 120.54(4), governing the manner and form of applications for the tax credit and establishing qualification requirements for the tax credit. All conditions are deemed met for the adoption of emergency rules pursuant to s. 120.54(4).

• (7) A qualified business may carry forward any unused portion of a tax credit under this section for up to 2 taxable years.

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KEEPING FLORIDA COOL: FLORIDA REFRIGERATION AND AIR CONDITIONING CONTRACTORS COMMEND LEGISLATURE ON PASSING BILL TO FIX THE WARRANTY LOOPHOLE THAT LEAVES NEW HOMEOWNERS PAYING FOR REPAIRS HVAC REPAIRS OUT OF POCKET

The legislation ensures that the manufacturer warranty for an HVAC system is tied with the property instead of the homeowner

Tallahassee, Fla, July 10 2023 - The Florida Refrigeration and Air Condition Contractors Association

(FRACCA) commends Governor Ron DeSantis on signing HB 1203 – Registration and Transfers of Heating, Ventilation, and Air-Conditioning System Manufacturer Warranties, which ensures that when a new homeowner purchases a residential property, the heating, ventilation, and air conditioning (HVAC) systems is automatically transferred to the new owner and continues in effect as if the new owner was the original purchaser of the system.

Download press release

The U.S. Environmental Protection Agency (EPA) recently issued a final rule to implement a 40% reduction below baseline levels of HFC production from 2024 through 2028. The rule aligns with the AIM Act, which was passed in December 2020 and gave the EPA the authority to phase down HFCs to 15% of their baseline levels by 2036.

The U.S. began the phasedown in 2022, with an initial 10% reduction in HFC production from the baseline level, while 2024 brings an additional 30% cut. The baseline was derived from the three highest nonconsecutive years of HFC production and/or import between 2011 and 2019.

This final rule establishes the methodology for allocating HFC production and consumption allowances, starting with calendar year 2024 allowances. Companies that produced or imported bulk HFCs in 2021 and 2022 are eligible for allowances in 2024 through 2028. According to EPA, the methodology will be similar to the approach used for calendar years 2022 and 2023, while incorporating former new market entrants from an earlier set-aside pool as general pool allowance holders.

“This latest allocation rule is a critical step in the implementation of the AIM Act schedule for phasing down HFC refrigerants,” said Stephen Yurek, president and CEO of AHRI. “Our industry appreciates the work of the EPA and the timely issuance of this rule as we prepare for the next HFC reduction step-down next January.”

The final rule also amends the HFC consumption baseline to reflect corrected data submitted to EPA. Specifically, EPA is amending the consumption baseline from 303,887,017 Metric Tons of Exchange Value Equivalent (MTEVe) to 302,538,316 MTEVe to account for verified revisions from entities for 2011 through 2013, as well as the Agency’s internal review of baseline calculation methodologies.

EPA also recently finalized a good cause final rule that makes a minor adjustment to the production baseline and associated phasedown schedule. Specifically, EPA adjusted the baseline from 382,554,619 MTEVe to 382,535,439 MTEVe to reflect additional destruction and transformation of HFCs that occurred during 2011–2013. This corrected production baseline begins applying to allowance allocations for calendar year 2024.

Under the AIM Act, by October 1 of each calendar year, EPA must calculate and determine the quantity of production and consumption allowances for the following year. EPA will start using the approach established through this rulemaking to issue 2024 allowances by October 1, 2023.

EPA is planning two additional regulatory actions under the AIM Act in 2023. The first is a final rule placing restrictions on the use of HFCs in certain sectors to facilitate sector-based transitions to alternative chemicals, and the second is a proposed rule establishing certain requirements for the management of HFCs and HFC substitutes in equipment, such as air conditioners.

Article courtesy of ACHR News - 7/13/2024

State Rep. Fiona McFarland's bill aimed at preventing fraud from occurring on a state database of Florida businesses has been signed by Gov. Ron DeSantis.

The bill will provide the Department of State the authority to require passwords and verify the identification of people changing records on Sunbiz.org, the state's database for businesses .

Sunbiz.org is managed by the Division of Corporations, which is under the Florida Department of State. The website currently acts in an administrative filing capacity for registering businesses and accepts any changes "at face value."

While it is a third-degree felony to fraudulently change a record on Sunbiz.org, the current system does not check the identity of anyone applying for a change. This has allowed businesses to be defrauded in the past, according to a Herald-Tribune investigation last year.

McFarland said when she filed her bill that she decided to do so after the newspaper detailed how a Parrish man allegedly hijacked control of a Sarasota real estate company and took out loans on the company's properties totaling more than $1 million.

"I’m happy to announce that “The “Sunbiz bill” has been signed into law by the Governor!" McFarland tweeted on Monday. "Dept. of State can now create a password-protected program for registered" Florida businesses.

McFarland thanked Rep. Chip LaMarca and state Sen. Erin Grall for getting the bill to the governor's desk. Grall sponsored a Senate version of the bill.

"Let’s keep demanding safe and excellent" government services, McFarland concluded her tweet.

It took the Sarasota Police Department more than four months to complete their investigation after the Herald-Tribune first wrote about the allegations. Robert E. Houston Jr. was arrested on numerous felony charges in January stemming from the Sarasota Police Department's investigation.

According to the arrest report, the bank accounts that Houston is accused of using in the real estate scheme were nearly empty by the time police made the arrest.

Houston remains in the Sarasota County jail, according to the jail log on Tuesday afternoon.

The phasedown of HFC refrigerants in the U.S. commercial refrigeration and air conditioning industries is well underway, causing concern among many HVACR professionals about its impact on the industry. One of the reasons for this apprehension may be the difficulty in keeping up with the ever-evolving federal regulations, state building codes, and safety standards that support the emergence of alternative low-GWP refrigerants.

To alleviate some of those concerns, Emerson recently hosted a webinar that discussed the present regulatory landscape regarding the transition to alternative refrigerants, as well as potential future regulations pertaining to PFAS (“forever chemicals”).

ROBUST RECLAIM: Reducing the demand for refrigerant in the existing installed base will require a much more robust recovery and reclamation market. (ACHR News-Staff photo)

Refrigerant Transition

The transition away from HFC refrigerants officially began in December 2020, with the passage of the AIM Act, which mandates an 85% reduction in the production and consumption of high-GWP HFCs by 2036. In order to reach that goal, the Environmental Protection Agency (EPA) has been tasked with three primary responsibilities:

1. Decreasing HFC production and consumption;
2. Promoting the adoption of next-generation technologies through industry-specific restrictions; and
3. Establishing standards for managing the existing stock of HFCs and their substitutes.

Under the first point, HFC production was initially reduced by 10% in January 2022. A much larger stepdown occurs in January 2024, when production of HFCs will be cut an additional 30%, for a total 40% reduction from the baseline. Another big reduction comes in 2029, when HFC production will be cut an additional 30%, or 70% from the baseline.

“Remember that the baseline was calculated on average between the years of 2011 and 2013, and since then, our HFC usage has increased,” said Jennifer Butsch, director of regulatory affairs at Emerson. “So this 40% reduction from baseline is actually greater than a 40% reduction of where we were, say, in 2021. … As we move forward, it's really important that the demand also decrease, or else we'll start to run into areas of potential shortage.”

EPA addressed the second point in December 2022, releasing a rule that was largely in line with the requests made by AHRI. This includes banning the use of high-GWP HFCs such as R-410A in new HVAC equipment, starting in January 2025 (see Table 1). Butsch said the one noticeable difference in the EPA rule was the transition date for most of the commercial refrigeration applications: EPA proposed to be January 1, 2025, or one year sooner than the manufacturers had requested.

TABLE 1: Proposed GWP limit restrictions on HFCs by sector and subsector. (Courtesy of EPA) Download table as PDF

“The larger equipment has a proposed GWP limit of 150 on the commercial refrigeration side for the most part,” said Butsch. “If it's less than a 200-pound charge, it's 300 GWP, which is consistent with the requests from AHRI. Chillers and air conditioning equipment have a proposed GWP limit of 700. The request was 750 GWP, but for all intents and purposes, this doesn't have much impact.”

The final rule for the technology transition rule is expected later this year in October.

The third point has to do with reducing the demand for refrigerant in the existing installed base, which will require a much more robust recovery and reclamation market. According to EPA, the current market for reclamation is estimated to be below 2% of the total of the refrigerant produced, which is very low, said Butsch.

“The global refrigeration and air conditioning market accounts for 86% of new HFCs produced. Of that 86%, over 50% is actually used to top off leaks in existing equipment versus filling new equipment,” she said. “This demonstrates the need to address the service market. In addition to reclaim, there will likely be leak repair, refrigerant management, and best service practices in the installation of new equipment all specified [by EPA]. We expect to see a draft or a proposal later this summer.”

While the HVACR industry is anxiously awaiting these final rules from EPA, Butsch noted that the AIM Act lacks federal preemption, which means states have the freedom to regulate HFCs as they see fit. Most are hoping that states adopt EPA’s guidance; otherwise, there could be a patchwork of different refrigerant regulations around the country.

 

Possible PFAS Regulations

In addition to the regulations described above, there are new regulations being proposed, not just in the U.S., but also in Europe, said Rajan Rajendren, global vice president of environmental sustainability at Emerson. These potential regulations concern PFAS, and they do not specifically target refrigerants but are more broad in nature.

“These chemicals are used in many, many things that you use on a daily basis, such as Teflon,” said Rajendren. “It matters to [the HVACR industry] because the conversation is about whether PFAS should be restricted or banned, which is now beginning to affect our industry.”

But just how much these restrictions will affect the HVACR industry depends on the definition of PFAS. According to Rajendren, there are multiple definitions, with the European Union (EU) having one, while EPA and individual states such as Delaware and Maine having another.

According to the American Chemistry Council, PFAS (per- and polyfluoroalkyl substances) are a diverse group of chemicals characterized by the strong bond between fluorine and carbon. Because of this strong bond, PFAS provides products with strength, durability, stability, and resilience. PFAS have been used in many consumer products since the 1940s, including refrigerants used in air conditioning and refrigeration equipment. More recently, their ubiquitous presence in water, soil, and air samples has raised concerns about their potential impacts on human health and the environment.

“There are basically three broad areas in which these PFAS chemicals are present in the HVACR industry,” said Rajendren (see Table 2). “The first is polymeric compounds, such as Teflon and any other kind of plastic. That means you’ll find PFAS in bearings and compressors, as well as in all kinds of components and finished equipment, such as air conditioners and refrigeration equipment.”

TABLE 2: PFAS definition and impact on the HVACR industry. (Courtesy of Emerson) Download table as PDF here

The second area where PFAS can be found is the refrigerant itself. Research is still underway in the U.S. about this topic, but according to the EU’s Registration, Evaluation, Authorization and Restriction of Chemicals (REACH), refrigerants not containing PFAS include CO2, propane, R-32, R-152a, R-1132(E), and R-1132a.

The third category involves processing aids, which manufacturers use to make products such as Teflon. Some solvents could fall into this category as well, said Rajendren.

“This is not the last you're going to hear about PFAS from any of us,” he said. “But the industry is responding to a lot of this kind of activity, by providing information and helping regulators and policymakers and legislators with as much information as possible to let them know how all these chemicals are actually used in our products, and how they might actually impact not only the environment, but also human beings.”

Article provided 6/13/23 by: By Joanna R. Turpin, ACHR News

On Tuesday, April 4, the White House conducted an Executive Roundtable discussion on heat pump manufacturing and deployment, which includes heat pumps for both water and space heating. The Roundtable was led by National Climate Advisor Ali Zaidi, Secretary of Energy Jennifer Granholm, as well as Senior Advisor to the President for Clean Energy Innovation and Implementation John Podesta.

Invited to the Roundtable were executives from industry (both water and space heating) and distributors of these products. The conversation was an opportunity for industry and distributors to help the Administration understand what challenges still remain in advancing the widespread adoption of heat pumps. Some of these include: training for those installing, servicing, and maintaining heat pumps; awareness for consumers in how they may operate differently from their counterpart technologies; and how incentives will be needed to reduce the installed cost of the products. Additionally, Bradford White President and CEO, Bruce Carnevale, expressed his concern over continuing workforce challenges as more and more technicians will be needed to support future heat pump installation demand.

In addition, manufacturers are trying to better understand what the true demand will be for heat pumps as incentives from the Inflation Reduction Act (IRA) start to be utilized. This is important as we try to gain certainty as we make investments to scale up the production of heat pumps. At the same time, states and cities are starting to enact different code requirements and other policies that are limiting the use of natural gas in buildings and homes with the first city to do so being Berkeley, California. Despite this growing movement toward natural gas limitations and even bans, some lawmakers are beginning to take another look.

On April 17 in the Ninth Circuit Court of Appeals, a three-judge panel reversed a District Court decision, which holds that the Berkeley ordinance was preempted by the Energy Policy and Conservation Act (EPCA). The panel’s decision will impact a number of other jurisdictions that have also implemented a similar ordinance. Now, the City of Berkeley is evaluating whether to appeal the three-judge panel’s decision. Given the significance of this case, it is possible that it could eventually be brought to the Supreme Court. More information to come in the following months on how these policies will be impacted, including how much they may or may not drive heat pump adoption.