ACCA's advocacy efforts have led to significant victories for HVACR contractors under the EPA's new HFC management rule, minimizing regulatory burdens while phasing down hydrofluorocarbons (HFCs). Key wins include the elimination of a mandate for reclaimed HFCs in initial charges, with narrowed requirements for servicing specific systems like supermarket refrigeration. Contractors also benefit from a flexible cylinder return option, allowing technicians to evacuate and dispose of cylinders themselves, bypassing certified reclaimers. Additionally, ACCA successfully blocked the implementation of a QR code tracking system for refrigerant cylinders, avoiding administrative complications. These changes ensure practical solutions for contractors while maintaining environmental compliance.

ACCA continues to advocate for the industry, particularly on technician training and certification related to flammable refrigerants, and remains committed to ensuring that future regulations align with real-world conditions. Contractors can stay informed through ACCA’s policy team for ongoing updates and guidance. Click here to read more.

Florida's minimum wage will rise to $13 an hour starting Monday, continuing the gradual increase mandated by a 2020 constitutional amendment, which aims to reach a $15 minimum wage by 2026. 

The amendment, led by Orlando lawyer John Morgan, set annual wage hikes beginning with $10 per hour in 2021. Tipped employees will see their wage increase to $9.98 an hour. After reaching $15 in 2026, future increases will be tied to inflation. The federal minimum wage remains $7.25 an hour. News Service Florida

A recent survey highlights trends in homeowner and contractor familiarity with smart HVAC features. Smart thermostats are the most recognized devices among homeowners, but awareness diminishes regarding other smart products like filters, vents, and dampers. Despite high recognition of smart thermostats, adoption remains low, at around 17-20%. Factors such as government incentives, rising energy costs, and increased awareness have fueled interest, yet many consumers still prioritize other smart home devices.

Experts indicate that while the smart thermostat market has significant growth potential, adoption has been moderated by trends in new home construction and changing consumer spending habits. As technology advances and smart home systems become more integrated, the role of professional HVAC contractors is expected to expand, particularly regarding data privacy and the complexity of installations. Overall, the smart thermostat market is set for continued growth, providing opportunities for contractors to enhance energy efficiency for homeowners. Click here to read more.

The Inflation Reduction Act (IRA), now two years old, has made significant strides in promoting decarbonization through incentives for high-efficiency and electric HVAC equipment, along with energy-saving home improvements. The act allocated $8.8 billion in direct-to-consumer rebates and extended tax credits for qualified HVAC products like heat pumps, insulation, and windows. While only a few states have rolled out these rebate programs, early IRS data shows that over 2.3 million tax returns claimed the Energy Efficient Home Improvement Credit in 2023, reflecting growing interest in energy-efficient upgrades.

Supporters of the IRA, like Michael Forrester from the Department of Energy, highlight its success, citing strong consumer interest and substantial tax credits, which averaged $882 per return. Critics, however, question whether the incentives are worth the cost and fear poor-quality installations could lead to dissatisfaction with technologies like heat pumps. Despite the challenges, advocates believe the IRA's long-term potential lies in electrification, renewable energy, and improved contractor standards to ensure energy-efficient products are installed properly for maximum benefit. Click here to read more.

Kelley Raymond is the Senior Director of Sustainability and Environmental Advocacy at Daikin. With a background in Political Science and Pre-Law from the University of West Florida, she transitioned from state policy work to the HVACR industry. Her career began with roles such as Director of Government Affairs for the Air-Conditioning, Heating, and Refrigeration Institute (AHRI) and a Senior Advisor position at the Office of Air and Radiation. Today, at Daikin, she aligns the company’s sustainability priorities with advocacy efforts, leveraging her expertise to address the industry's complex regulatory challenges.

Raymond finds her work in HVACR especially rewarding due to the collaborative and supportive environment within the industry. As a Navy veteran spouse, she has appreciated the understanding and encouragement from colleagues during challenging times. Among her career achievements, she takes pride in leading regulatory efforts, reform initiatives, and building the Daikin Sustainability and Innovation Center in Washington, D.C. She emphasizes the importance of actively engaging and retaining women in HVACR, believing that a diversity of voices is crucial for the industry’s success. For women considering a career in HVACR, she advises embracing challenges, working hard, and making the most of every opportunity. Click here to read more.

In January of 2021, the Corporate Transparency Act (CTA) was signed into law. The CTA requires companies that meet the definition of a “reporting company” to file a Beneficial Ownership Information (BOI) report with the U.S. Treasury Financial Crimes Enforcement Network (FinCEN). If you own a business, you may be required to file the BOI for your business with FinCEN by January 1, 2025. To find out more about your reporting obligations, please visit our resource page here.

Following the recent hurricanes, various counties and cities in Florida are offering support for disaster recovery, including permitting assistance and waived fees for home repairs.

Sarasota County: Disaster Recovery Information

Manatee County: Waiving Permit Fees/Hurricane Recovery 2024

Hillsborough County: Emergency Permitting for Minor Repairs

Pinellas County: Storm Recovery Permitting

City of St. Pete: Waived Permitting Fees

City of Tampa: Pop-Up Permit Centers

Hernando County: Recovery Assistance

Pasco County: Pop-Up Building Permit Sites

Pasco County is reopening two pop-up building permit locations and waiving all county fees for home repair and building permit applications related to the storms.

For a full list of recovery resources, including damage repair assistance, visit: WTSP Hurricane Recovery Help Resources

Florida has experienced an estimated $3.95 billion in insurance claims due to three hurricanes in just three months, with numbers still climbing. The Office of Insurance Regulation revealed that Hurricane Milton, which made landfall on October 9 in Sarasota County, has resulted in 204,971 claims totaling approximately $2.48 billion—over 165,000 of which are for residential property damage.

Hurricane Helene, which struck the Gulf Coast on September 26, has generated 121,689 claims amounting to $1.3 billion, with about 30% of these claims already closed. Meanwhile, Hurricane Debby, which hit Florida's Big Bend region on August 5, prompted 21,000 claims totaling $131 million, with more than 75% closed. A significant number of Debby claims were settled without payment, while nearly 8,000 were closed with partial payments. Interestingly, claims related to Hurricane Milton are reported to be lower than those filed for Hurricane Ian during the same period last year. Click here to read more.

On October 24, 2023, Environmental Protection Agency (EPA) published its final rule regarding the transition to low-GWP refrigerants in new refrigeration, air conditioning, and heat pump (RACHP) systems. The EPA initially faced industry backlash over the sell-through mandate of January 1, 2025 for certain HVACR systems; however, on December 20, 2023, the Agency revised the provision to address concerns raised by stakeholders.

The narrowly amended provision now allows one additional year, until January 1, 2026, “solely for the installation of new residential and light commercial air conditioning and heat pump systems using components manufactured or imported prior to January 1, 2025.” The Agency believes this provision will help alleviate worries about stranded inventory, especially in new residential construction projects.

According to EPA, “There is good cause for this rule to take effect without prior notice and comment. EPA is still accepting public comment for 45 days after publication in the Federal Register (at www.regulations.gov, Docket ID# EPA-HQ-OAR-2021-0643). Unlike a direct final rule, EPA will not withdraw this interim final rule if it receives adverse comment; all comments will be addressed in a subsequent final rule.”

The rule in question addresses subsection (i) of the AIM Act, entitled “Technology Transitions,” which provides EPA with the authority to restrict the use of regulated HFCs in sectors or subsectors where they are used. This final rule sets a maximum GWP limit on the HFCs or HFC blends that can be used, and in a few subsectors, EPA has listed specific HFCs or HFC blends that are restricted.

Compliance dates and GWP limits vary based on the sector and subsector, but for residential and light commercial air conditioning and heat pump systems, the final rule now calls for a 700 GWP limit, starting January 1, 2026. For VRF systems, the compliance date was initially January 1, 2026; however, that date is being reconsidered, and EPA will address this issue in a separate notice and comment action.

For most new commercial refrigeration systems used in supermarkets and convenience stores, the rule mandates a 150 or 300 GWP limit, with compliance dates ranging from 2026 to 2028, depending on the size of the equipment.

For new RACHP systems, many in the industry were expecting the rule to include a sell-through period of at least a year for most types of equipment, so that distributors and contractors would not be left with inventory that could not be legally installed. Instead, EPA unexpectedly included a “date of install” requirement for some types of equipment, which would mean that complete, new, split-system air conditioners and heat pumps, for example, would have had to be installed no later than January 1, 2025.

“We did not expect the lack of a sell through-period for essentially any field-charged HFC systems,” said Chris Czarnecki, director of government relations and advocacy at ACCA. “This is because the rule did not provide any discrepancy between the date of installation and date of manufacture for systems charged in the field. Manufacturing was considered ‘complete’ once the system was charged and completely ready to be turned on by the rule's definition.”

Indeed, the rule divided almost all sectors into self-contained “products” and field-assembled “systems,” with vastly different compliance schemes, which was unexpected based on the proposed rule, said Jennifer Butsch, regulatory affairs director at Copeland.

“While ‘products’ have a three-year sell through period, ‘systems’ did not have any sell-through provision,” said Butsch. “For those ‘systems’ that are rated and sold as a matched set, such as in residential HVAC, this could risk stranding inventory in the channel unless they can be used as components for service.”

To further clarify the distinction between a product and a system, EPA states that a RACHP product is considered to be functional upon leaving the factory, and examples include window air conditioning units, refrigerators, and stand-alone display cases. On the other hand, a system is assembled and charged in the field using multiple components.

“Products are something that can be plugged in, like a window air conditioning unit or a refrigerator. These have compliance restriction dates that are associated with the fact that they are products,” said Allison Cain, environmental policy analyst at EPA, in a recent GreenChill webinar. “Systems are those that are assembled and charged in the field and would need to be installed by a technician, such as a supermarket direct expansion system with a centralized compressor room.”

Differentiating between self-contained products and field-assembled systems definitely came as a surprise and added a level of complexity, as well as some challenges that the industry wasn’t prepared for, said Butsch.

“Managing installation dates is inherently challenging for all parties through the channel,” she said. “Traditionally this was only required for larger field-erected systems such as chillers, large rooftops, supermarket refrigeration racks, and industrial scale systems. Under the [initial] rule, any connection of the refrigerant loop appeared to trigger the field-assembled provision, throwing unitary split and any refrigeration applications that need field connection of refrigerant circuit — even when pre-charged in the factory — into this category with a compliance date based on installation.”

A silver lining for some in the HVACR industry is that under this rule, a product or a system may be serviced and repaired throughout its useful life, which includes replacing components as needed. Under the rule, components required to repair existing RACHP equipment may continue to be manufactured, imported, sold, distributed, or exported indefinitely.

SERVICE AND REPAIR: Under EPA’s final rule, a product or system may be serviced and repaired throughout its useful life, which includes replacing components as needed. (Staff photo)

“We were pleased to see EPA follow through with their inclusive posture towards the repair of HFC systems and the manufacturing of replacement parts,” said Czarnecki. “This rule was written to let existing systems be used until the end of their useful life, and that is something we appreciate EPA taking into consideration.”

This means for outdoor split air conditioners and heat pumps, EPA would allow the replacement of the outdoor R-410A condensing unit followed by the indoor coil at a later date, essentially allowing these split systems to be partially replaced indefinitely, said Butsch.

“This is different from other regulation such as in California, where if a condensing unit is replaced in a split system, this would necessitate compliance with the requirement to use a <750 GWP refrigerant,” she said. “Customers will be forced to comply with the most restrictive requirement — state or federal.”

Still, the separation of products and systems is a serious issue, said Glenn Haun, general manager of refrigerants at Arkema, and while EPA’s subsequent guidance clarified the definitions, there is confusion as to how this can work in the marketplace.

“It appears that under this rule, components for R-410A system repairs can be produced and installed indefinitely, as well as imported already charged without expending allowances, thereby providing additional supply of HFCs, bypassing the phasedown requirements,” he said.

While many in HVACR are cheering the amended sell-through provision, Alex Ayers, director of government affairs at HARDI, cautioned at the recent HARDI meeting in Phoenix, Arizona, that the industry should not look at this as another year to sell R-410A equipment. “Manufacturers are already planning to transition to low-GWP equipment in 2024, and they do not want to supply R-410A equipment for an extra year,” he said.

Article courtesy of ACHR News: By Joanna R. Turpin
https://www.achrnews.com/articles/153927-epa-extends-sell-through-period-easing-inventory-concerns

The Environmental Protection Agency (EPA) recently released its final rule regarding the transition to low-GWP refrigerants in new refrigeration, air conditioning, and heat pump (RACHP) systems, and many in the HVACR industry are not happy with parts of the new regulation. The rule addresses subsection (i) of the AIM Act, entitled “Technology Transitions,” which provides EPA with the authority to restrict the use of regulated HFCs in sectors or subsectors where they are used.

This final rule, published October 24, 2023, sets a maximum GWP limit on the HFCs or HFC blends that can be used, and in a few subsectors, EPA has listed specific HFCs or HFC blends that are restricted. Compliance dates and GWP limits vary based on the sector and subsector, but for stationary air conditioning and heat pumps, the final rule calls for a 700 GWP limit for most new comfort cooling equipment, including chillers, starting January 1, 2025. VRF systems would have until January 1, 2026 to comply with the restrictions.

For most new commercial refrigeration systems used in supermarkets and convenience stores, the rule mandates a 150 or 300 GWP limit, with compliance dates ranging from 2026 to 2028, depending on the size of the equipment.

“We did not expect the lack of a sell-through period for essentially any field-charged HFC system.”

- Chris Czarnecki
Director of government relations and advocacy
ACCA

Sell-Through Saga

For new RACHP systems, many in the industry were expecting the rule to include a sell-through period of at least a year for most types of equipment, so that distributors and contractors would not be left with inventory that could not be legally installed. Instead, EPA unexpectedly included a “date of install” requirement for some types of equipment, which means complete, new, split-system air conditioners and heat pumps, for example, must now be installed no later than January 1, 2025.

“We did not expect the lack of a sell through-period for essentially any field-charged HFC systems,” said Chris Czarnecki, director of government relations and advocacy at ACCA. “This is because the rule does not provide any discrepancy between the date of installation and date of manufacture for systems charged in the field. Manufacturing is considered ‘complete’ once the system is charged and completely ready to be turned on by the rule's definition.”

Indeed, the rule divided almost all sectors into self-contained “products” and field-assembled “systems,” with vastly different compliance schemes, which was unexpected based on the proposed rule, said Jennifer Butsch, regulatory affairs director at Copeland.

“While ‘products’ have a three-year sell through period, ‘systems’ do not have any sell-through provision,” said Butsch. “For those ‘systems’ that are rated and sold as a matched set, such as in residential HVAC, this could risk stranding inventory in the channel unless they can be used as components for service.”

To further clarify the distinction between a product and a system, EPA states that a RACHP product is considered to be functional upon leaving the factory, and examples include window air conditioning units, refrigerators, and stand-alone display cases. On the other hand, a system is assembled and charged in the field using multiple components.

“Products are something that can be plugged in, like a window air conditioning unit or a refrigerator. These have compliance restriction dates that are associated with the fact that they are products,” said Allison Cain, environmental policy analyst at EPA, in a recent GreenChill webinar. “Systems are those that are assembled and charged in the field and would need to be installed by a technician, such as a supermarket direct expansion system with a centralized compressor room.”

Differentiating between self-contained products and field-assembled systems definitely came as a surprise and added a level of complexity, as well as some challenges that the industry wasn’t prepared for, said Butsch.

“Managing installation dates is inherently challenging for all parties through the channel,” she said. “Traditionally this was only required for larger field-erected systems such as chillers, large rooftops, supermarket refrigeration racks, and industrial scale systems. Under this rule, any connection of the refrigerant loop appears to trigger the field-assembled provision, throwing unitary split and any refrigeration applications that need field connection of refrigerant circuit — even when pre-charged in the factory — into this category with a compliance date based on installation.”

Legacy Systems

A silver lining for some in the HVACR industry is that under this rule, a product or a system may be serviced and repaired throughout its useful life, which includes replacing components as needed. As it stands now, components required to repair existing RACHP equipment may continue to be manufactured, imported, sold, distributed, or exported indefinitely.

SERVICE AND REPAIR: Under EPA’s final rule, a product or system may be serviced and repaired throughout its useful life, which includes replacing components as needed. (Staff photo)

“We were pleased to see EPA follow through with their inclusive posture towards the repair of HFC systems and the manufacturing of replacement parts,” said Czarnecki. “This rule was written to let existing systems be used until the end of their useful life, and that is something we appreciate EPA taking into consideration.”

This means for outdoor split air conditioners and heat pumps, EPA would allow the replacement of the outdoor R-410A condensing unit followed by the indoor coil at a later date, essentially allowing these split systems to be partially replaced indefinitely, said Butsch.

“This is different from other regulation such as in California, where if a condensing unit is replaced in a split system, this would necessitate compliance with the requirement to use a <750 GWP refrigerant,” she said. “Customers will be forced to comply with the most restrictive requirement — state or federal.”

Still, the separation of products and systems is a serious issue, said Glenn Haun, general manager of refrigerants at Arkema, and while EPA’s subsequent guidance clarified the definitions, there is confusion as to how this can work in the marketplace.

“It appears that under this rule, components for R-410A system repairs can be produced and installed indefinitely, as well as imported already charged without expending allowances, thereby providing additional supply of HFCs, bypassing the phasedown requirements,” he said. “Many of our customers, wholesalers, and distributors are very concerned that if a reasonable sell-through period does not apply to installation of systems, it will create large quantities of stranded equipment, and the industry will not be ready to comply. We understand that EPA is aware of this issue and plans to resolve it.”

Possible Changes Ahead

How EPA plans to resolve this issue was still up in the air at the time this article was written, but at the recent HARDI Conference in Phoenix, Arizona, Alex Ayers, director of government affairs at HARDI, said that some relief may be coming. He noted that in a recent letter, EPA acknowledged that stranded inventory may be an issue with the January 1, 2025 installation date mandated in the final rule.

“They gave us some language that says they are potentially looking at moving the installation date from January 1, 2025, to January 1, 2026,” said Ayers. “‘Potentially’ has a lot of implication, but overall we consider this letter to be good news. It's just a question of how good it's going to be. To me, the No. 1 thing is that it gives the supply chain time to eliminate stranded inventory.”

Ayers cautioned that the industry should not look at this as another year to sell R-410A equipment, as manufacturers are already planning to transition to low-GWP equipment in 2024. Manufacturers do not want to supply R-410A equipment for an extra year, he added, and it’s also very likely there would be a limitation on when these systems can be manufactured and installed at a later date.

“I believe the most likely scenario is that EPA delays the installation deadline for one year for residential and light commercial air conditioners and heat pumps that use high-GWP refrigerants such as R-410A until January 1, 2026 — as long as that system was manufactured prior to January 1, 2025,” said Ayers. “VRF and VRV may be similar, but because they already have an extra year, EPA hasn't been quite as forthcoming in saying they will give them until 2027. What they have said is that they're going to do something — it's just less of an indication of what that relief is exactly going to be.”

https://www.achrnews.com/articles/153927-hvacr-industry-not-happy-with-epa-sell-through-provisions