Advice from industry leaders on looking forward during these
Transcription
Advice from industry leaders on looking forward during these
Spring/Summer 2009 A SUPPLEMENT TO PENTON PUBLICATIONS THE MAGAZINE OF THE AIR-CONDITIONING, HEATING, AND REFRIGERATION INSTITUTE A Brighter Tomorrow Advice from industry leaders on looking forward during these unprecedented times. • OUTLOOK FOR CHILLED BEAMS • GEOTHERMAL HEAT PUMPS • INDUSTRY PREPARES FOR HCFC PHASEOUT W NE S IL VE N U RI H A 905CSTMAHRFC.indd 1 O OG L IED F I RT CE 10 E G PA E SE 4/22/2009 4:12:49 PM 905CSTMAHRIFC.indd 1 4/21/2009 5:29:26 PM tableofcontents A resource for HVACR contractors and technicians, AHRI Trends is published in May and September prior to the annual cooling and heating seasons. Visit us online at www.AHRInet.org and www.AHRIdirectory.org. The Air-Conditioning, Heating, and Refrigeration Institute 2111 Wilson Blvd., Suite 500 Arlington, VA 22201 Phone: 703/524-8800 Fax: 703/528-3816 e-Mail: trends@ahrinet.org www.AHRInet.org coverstory: 12 Leadership Keith Coursin Weathering the Economic Downturn Chairman Jack W. Klimp features CEO Stephen R. Yurek President Acknowledgements 10 AHRI Communications Staff Francis Dietz, Colleen Hughes and Courtney Nogas AHRI Technical Advisors (for this issue) Karim Amrane, Don Davis, Henry Hwong, Sunil Nanjundaram, Maryline Rassi, and Frank Stanonik 1300 E. 9th Street Cleveland, OH 44114 216/696-7000 tel 216/696-1752 fax www.pentoncustommedia.com Mike Weil Dan Ashenden Bob Mader Editor-in-Chief Outlook for Chilled Beams Geothermal Heat Pumps Industry Prepares for Next Step in HCFC Phaseout departments 2 4 Chairman’s Message Legislative Watch: Engaging Lawmakers on Climate Change, Energy Issues Editor-in-Chief Account Manager Lisa Murton Beets Managing Editor Steve Palmison Marketing Shaun Kelly Production Manager Cavedweller Studio Art Direction 905CSTMAHR1.indd 1 Advertising Index AHR Expo 2010 ............................. 25 Airwell Fedders ................................. 9 Desert Aire........................................ 3 ECONAR GeoSystems ..................... 7 Emerson Climate Technologies ......... 5 Energy Conservatory ...................... 17 HARDI ............................................ 23 HVAC Comfortech 2009 ................. 28 IPEX ............................................... 15 Mitsubishi Electric ........................... 11 Rheem .......................................... IFC Ritchie Engineering ........................ BC Trane .............................................. 29 www.AHRInet.org Christy Barksdale | Penton Custom Media AHRItrends Joe Fristik Publisher 22 26 Publishing Office Group Publisher 18 AHRI Establishes a New Mark and a New Home for all AHRI Certified™ Products 1 4/23/2009 4:18:18 PM chairman’smessage Explore Industry Trends with AHRI session of Congress to complete, we can expect an energy bill this year. As we work to increase our shipments and get our industry moving again, it can be inspirational to take a look at new technologies and how they might impact our sector in the coming years. Two of those new technologies, chilled beams and geothermal heat pumps, are profiled in this issue. Spring is perhaps my favorite time of year. Warmer weather, birds chirping, flowers growing – they have a way of making me feel better about everything. Here’s hoping my fellow consumers feel better about their lives this spring, as well, so that we can begin to right our economy and move forward toward a brighter future. AHRItrends | Spring/Summer 2009 The stimulus bill passed by Congress earlier this year, while not perfect, is designed to revive economic growth by spurring spending, manufacturing and job creation. The bill contains several tax incentives for the purchase of highly efficient HVACR products – details can be found on page 4. AHRI’s government affairs team is now hard at work protecting our – your – interests in energy and climate change legislation. While the climate change bill might take longer than this Finally, most of our member companies are having to make difficult decisions to protect their current market position and to prepare for the A SUPPLEM ENT TO PENTON The Maga zin future. On page 12, folks representing a cross-section of our industry tell how they have been coping and steps they’ve been taking to ensure their survival and future growth. This is the third issue of AHRI Trends since our association began. Please let us know how we’re doing. Thanks for reading! Keith Coursin AHRI Chairman PUBLICATION S e of The air-Cond iTioning, Spring/Sum mer 2009 he eaT ea aT aTi Ting ng, and ref efr rig ige era raT ra T Tio ion n insTiTuTe A Brighter Tomorrow Advice fr forward duom industry leaders ring these on looking unprecede nted times. • OutlOOk fO r Chilled Beam s • GeOthermal heat PumPs • industry Pr ePares fOr hCfC PhaseOut w ne ils ve n u ri ah O OG dl ifie t r Ce e aG eP se 10 2 905CSTMAHR2.indd 1 4/22/2009 4:17:24 PM You Wouldn’t Throw Your Car in Reverse Driving Down the Highway. Why Would You Do the Same with Your Heat Pump? Desert Aire’s 100% Outdoor Air, Water Source, Non-Reversing Heat Pump Are 2-element reversing heat pumps taking you backwards when it comes to efficiency and functionality? You might ask, “Why would they?” The answer is found in Desert Aire’s non-reversing Q-Pump. A 2-element reversing heat pump uses only one air coil as both an evaporator and condenser – very inefficient since no one coil is designed to ideally perform both functions. Our 4-element Q-Pump uses one air condenser and one air evaporator, each one devoted to perform its function as designed. Our other two elements are water chillers in the water loop, one for the balance of the total heat of rejection and the other used as the evaporator in the reverse cycle. No reversing valve! The benefits of Q-Pump? • • • • • Avoids inefficiencies of high pressure on compressors when 2-element systems reverse to cooling No reversing valve allows for quick, easy transition between winter and summer modes Water chiller used as an evaporator in the water loop helps achieve COPs of 6+ Less potential for slugging and flashing compared to 2-element systems Q-Pump DOAS units control LAT to ± 2.0° F in heating and cooling Want more details and a diagram? Visit our special web page at: http://Q-Forward11.desert-aire.com Or, see us at AHR ‘09 in Chicago at booth #4269. Germantown, WI • Ph: (262) 946-7400 • Fax: (262) 946-7401 • E-mail: info@desert-aire.com DEHUMIDIFY 905CSTMAHR3.indd 1 WITH THE EXPERTS .... 4/21/2009 5:31:03 PM legislativewatch Engaging Lawmakers on Climate Change, Energy Issues Efficiency Summit Helps AHRI Focus Legislative and Regulatory Priorities • A strategy to facilitate the replacement of old and inefficient CFCbased chillers through the use of well-designed incentives. • A framework for a Code Enforcement Structure that could be implemented at the state level. • A strategy for promoting manufacturer’s tax credits as an alternative to mandating higher product energy efficiency standards. • Accelerating replacement of the installed base. Participants in the 3rd Energy Efficiency Summit received a briefing on energy efficiency provisions in the House and Senate economic stimulus bills and how they would likely help achieve the participants’ shared goal of increasing the amount of energy-efficient equipment in the nation’s homes and businesses. Allen Stayman, a staff member for the Senate Committee on Energy and Natural Resources, also outlined some of the priorities of his committee for the next two years. He noted that the “summer” of goodies contained in the stimulus bills will soon give way to the “winter” of reality when the appropriations process gets into gear in mid-year. In response to a question, Stayman endorsed the idea of the government leading the way in purchasing emerging energy-efficient technology through its procurement programs. With regard to the timing of an energy bill, the Senate has introduced a bill and the House is planning to introduce a bill in late spring. In an address to attendees, AHRI President Steve Yurek spoke of the AHRI President Stephen Yurek addresses attendees at the AHRI-ACEEE Energy Efficiency Summit. need for “balance” in energy and environmental policy, warning against trying to implement “good ideas” that have not been fully analyzed. Such approaches can result in the “dreaded law of unintended consequences,” Yurek said. He reiterated the HVACR industry’s commitment to working in an open and honest way with utilities and efficiency groups, and said AHRI expects the same of them. A major theme of the meeting was how to address a more timely replacement of the installed base of heating and air conditioning in the U.S. At the summit’s conclusion, participants agreed to collaborate on: The group agreed to meet again in the fall to discuss progress on these issues and others that arise between now and then. Stimulus Bill Delivers Incentives for HVACR Industry President Obama signed into law February 17 an economic stimulus package that includes billions of dollars in incentives for consumPresident Obama signs economic stimulus bill. Photo by Larry Downing/Reuters/Landov AHRItrends | Spring/Summer 2009 Energy efficiency advocates, representatives from utilities and AHRI member companies, and AHRI staff gathered February 4–5, 2009, in Arlington, Va., to discuss the “new reality” of a new Administration and a new Congress, and how it is likely to affect ongoing collaborations on energy efficiency and environmental stewardship. 905CSTMAHR4.indd 1 4/22/2009 4:18:01 PM 905CSTMAHR5.indd 1 4/21/2009 5:32:22 PM legislativewatch publications reaching lawmakers and their staff. Next on AHRI’s agenda is the launch of a targeted campaign to state governments to stress the value of spending their stimulus money on energy-efficient upgrades to government heating and cooling systems. Below is a chart of tax incentives contained in the stimulus bill. ers, businesses, building owners and the state and federal governments to upgrade the nation’s heating and cooling system infrastructure. AHRI worked closely with lawmakers throughout the negotiation process to support maximum funding for equipment upgrades, which are expected to create thousands of industry jobs, reduce building energy costs, and help the nation meets its environmental goals. To obtain the greatest reach and support for the energy-efficiency upgrade provisions in the bill, the association placed advertisements in the top three news Product Type Spring/Summer 2009 | • The efficiency levels have been modified to reflect the highest tier of the CEE High-Efficiency Specification for Residential HVAC Systems for equipment Tax Credit Effective Date Find Qualifying Equipment on www.ahridirectory.org RESIDENTIAL CENTRAL A/C Split: EER >= 13 and SEER >= 16 Packaged: EER >= 12 and SEER >= 14 The tax credit is for 30% of the total cost.1 Feb. 17, 2009– Dec. 31, 2010 Go to Air Conditioners and Air Conditioner Coils, and enter the minimum EER and SEER. RESIDENTIAL AIR-SOURCE HEAT PUMPS Split: HSPF >= 8.5 and EER >= 12.5 and SEER >= 15 Packaged: HSPF >= 8 and EER >= 12 and SEER >= 14 The tax credit is for 30% of the total cost.1 Feb. 17, 2009– Dec. 31, 2010 Go to Heat Pumps and Heat Pump Coils, and enter the minimum HSPF, EER and SEER. Closed Loop: EER >= 14.1 COP >= 3.3 Open Loop: EER >= 16.2 COP >= 3.6 Direct Expansion: EER >= 15 COP >= 3.5 This one-time tax credit is for 30% of the total investment.2 The credits are available for systems “placed in service” from Jan. 1, 2006, through Dec. 31, 2016. Go to either the Water-to-Air and Brine-to-Air Heat Pumps or Direct Geoexchange Heat Pumps directories. Limit your search by entering the qualifying efficiency ratings specified in the second column on this page. RESIDENTIAL GAS, OIL, PROPANE FURNACE OR HOT WATER BOILER Furnaces: Gas >= 95% AFUE Oil >= 90% AFUE Propane >= 95% AFUE Boilers: AFUE >= 90 The tax credit is for 30% of the total cost.1 Feb. 17, 2009– Dec. 31, 2010 Go to Boilers. RESIDENTIAL GAS, OIL, PROPANE WATER HEATER Energy Factor >= 0.82 or Thermal Efficiency >= 0.90 The tax credit is for 30% of the total cost.1 Feb. 17, 2009– Dec. 31, 2010 Go to Water Heaters. RESIDENTIAL ELECTRIC HEAT PUMP WATER HEATER Energy Factor >= 2.0 The tax credit is for 30% of the total cost.1 Feb. 17, 2009– Dec. 31, 2010 Go to Water Heaters. RESIDENTIAL GEOTHERMAL HEAT PUMP AHRItrends Tax Credit Specification Tax Credits for Homeowners Total cost includes cost of the product + installation up to a $1,500 maximum cap per homeowner for all combined improvements made in 2009 and 2010. This credit is not limited to the $1,500 home improvement cap footnoted above. 6 905CSTMAHR6.indd 1 4/22/2009 4:18:43 PM Stimulate Your Environment. Your home environment should be comfortable, inviting and stimulating. An ECONAR GeoSystem helps to create this environment for you and your family. A GeoSystem is far superior to a conventional HVAC set up. Imagine–one unit for all of your heating and cooling needs–from the hottest summer day to the coldest winter night. And, it’s great for the environment. Instead of using natural gas, oil or propane, a GeoSystem uses naturally occuring, renewable energy. This energy comes from under the ground, right on your property! Stimulate Your Wallet. The financial benefits of installing a GeoSystem are both short and long term. The recently passed American Recovery and Reinvestment Act of 2009 gives you a 30% Tax Credit for installing qualifying geothermal heat pump systems. That’s 30% of the total system cost back in your pocket! The savings don’t stop after you receive your tax credit. With a GeoSystem, you’ll save money every month on your heating and cooling bills. A typical system pays for itself in a few years. After that it’s all savings! ® ® The Leader in ColdClimate™ Geothermal Heat Pumps Call 1-800-4-ECONAR or visit www.econar.com for more information. 905CSTMAHR7.indd 1 4/21/2009 5:33:53 PM legislativewatch “placed in service” between Febuary 17, 2009, and December 31, 2010. • Please note: Equipment listed in the chart on page 6 (except water heaters, which only need to achieve one of the efficiency specifications) must meet all performance specifications for its category. For example, a tax-crediteligible split central air conditioner must have stated performance ratings of 13 EER and 16 SEER. • The maximum credit has been raised from $500 to $1,500 for the two years (2009–2010). However, some improvements such as geothermal heat pumps, solar water heaters and solar panels are not subject to the $1,500 maximum. What is reasonably sure, however, is that a climate change bill ultimately will reach the President’s desk in the next couple of years. several different ways, it is difficult at this point to predict the eventual outcome. The President, the Speaker of the House, and the Majority Leader of the Senate have all said they would like to have a bill enacted this year. AHRItrends | Spring/Summer 2009 That might be easier said than done, however, as environmental wishes meet political realities in a poor economy. • Improvements made in 2009 will be claimed on your 2009 taxes (filed by April 15, 2010). Use IRS Tax Form 5695 (2009 version); it will be available late 2009 or early 2010. Climate Change Bills Introduced; AHRI Issues List of Principles As expected, given the change in leadership in Congress and in the White House, several bills designed to address climate issues have been introduced in the House and Senate. Because the various bills would address greenhouse gas emissions in • • What is reasonably sure, however, is that a climate change bill ultimately will reach the President’s desk in the next couple of years. How significantly the bill will affect our industry remains to be seen, but AHRI members and staff, in concert with associated organizations such as ACCA, HARDI and the Association of Home Appliance Manufacturers are spending a good deal of time and energy educating policymakers about potential ramifications. • To focus the issue, the AHRI Government Affairs Committee approved a Statement of Principles to guide association staff and members as they meet with policymakers. The principles include support for: • • A regulatory approach that provides for an appropriate • • phasedown of hydrofluorocarbons (HFCs), including provisions for allowances and transition assistance. Assurance of an adequate supply of HFCs during a transition to low global warming potential (GWP) refrigerants. An appropriate initial cap set at actual HFC market demand in metric tons of carbon dioxide equivalent. The ability of appliance and HVACR equipment manufacturers that rely on HFCs to purchase allowances that could be used or transferred without restriction; the proceeds should be used to facilitate the deployment of lower GWP refrigerants and research on alternatives and transition assistance. A distribution scheme that makes allocations available to HFC users, HFC importers and HFC producers. An allowance proceeds program that provides funding for promotion of energy-efficient and low GWP products, transition assistance for manufacturers and research and recovery assistance. Offset credits for the capture and destruction of CFCs, HCFCs and HFCs. 8 905CSTMAHR8.indd 1 4/22/2009 4:19:32 PM /7@E3::43223@A6/A>/@B<3@32E7B6 A=;3=4B6303AB9<=E<1=;>/<73A 7<<=@B6/;3@71/B==443@B63;=AB 1=;>@363<A7D30CA7<3AAA3@D713 >@=5@/;7<B636D/17<2CAB@G ;3@@7:: A=C@13=<3 >/G163F :G<16 0CA7<3AA ;/@G:/<2 74A 1=;>CB3@ BOYSOZ]]YObXcaba][S]TbVS^`]TSaaW]\OZaS`dWQSag]c`Q][^O\g QO\OQQSaaeWbVbVWa^`]U`O[( @3B7@3;3<B03<347BA( >S\aW]\a "Y 0caW\Saa0O\YW\UA]ZcbW]\a 0caW\Saa4W\O\QW\U 1OaV7\dSabW\U 7\dSab[S\b0O\YW\U >`WdObS3_cWbg /11=C<B7<5( BOf^ZO\\W\UO\R`Sbc`\ ^`S^O`ObW]\aS`dWQSa 5S\S`OZ/QQ]c\bW\U /cRWbW\UAS`dWQSa 4W\O\QWOZ>ZO\\W\UAS`dWQSa 0caW\SaaDOZcObW]\AS`dWQSa ESOZbV;O\OUS[S\b :WbWUObW]\Ac^^]`b ;O\OUS[S\b1]\acZbO\ba 3dOZcObW]\AS`dWQSa 1/A64:=E;/</53;3<B( 3_cW^[S\b4W\O\QW\U 3_cW^[S\bAOZSa 3_cW^[S\b:SOaSPOQY 7\d]WQS4OQb]`W\U >/G@=::A3@D713A( >Og`]ZZAS`dWQSa 6@/R[W\Wab`ObW]\O\R1][^ZWO\QS BW[SO\R:OP]` &$$& ' "" 7BAC>>=@B( <Sbe]`YAS`dWQSAc^^]`b 1][^cbS`AS`dWQS@S^]`b 3[OWZO\RESP6]abW\U A^O[O\RA^geO`S>`]bSQbW]\ 0caW\Saa>V]\SAgabS[a D]WQS=dS`7>D=7> ESPO\R/^^ZWQObW]\2SdSZ]^[S\b 6O`ReO`SO\RA]TbeO`S /aOeV]ZSaOZS`]`RSOZS`g]c]eSWbb]g]c`PcaW\Saa b]¿\R]cb[]`SOP]cbbVS/W`eSZZ4SRRS`a<]`bV /[S`WQO>`]TSaaW]\OZAS`dWQSa>`]U`O[1OZZcab]ROg BSQV\]Z]Ug7\6O`[]\gEWbVBVS3\dW`]\[S\b 905CSTMAHR9.indd 1 4/23/2009 12:11:00 PM featurestory AHRI Establishes a New Mark and a New Home for all AHRI Certified™ Products Now that AHRI is home to all of the industry’s performance certification programs for heating, cooling and commercial refrigeration equipment, and has merged all these products into one searchable, online database (www.ahridirectory.org), the association has announced it is moving toward applying one unified mark of performance assurance to all certified equipment and components. AHRItrends | Spring/Summer 2009 The new mark will replace the ARI Performance Certified, GAMA Efficiency Rating Certified and I=B=R marks. These changes will be made according to an implementation schedule that provides enough time to bring all certification programs into compliance with internationally recognized accreditations. “Manufacturers have been given an 18- to 30-month transition period to apply the new marks to their equipment, change their nameplates and update their sales and marketing collateral,” said Bill Tritsis, AHRI's vice persident of certification. “It also provides enough time to bring the space heating and water heating programs under the accreditation scope of the Standards Council of Canada, which is necessary for products being shipped there.” Introduction of the new certification mark is just one of many initiatives that AHRI is currently undertaking to enhance awareness of the AHRI Certified™ brand. AHRI will be working to expand the number of utilities that require the AHRI Certified reference number in their rebate applications, exploring ways to encourage engineers to require AHRI Certified™ in their construction specifications, as well as promoting among green building leaders the importance of recommending third-party performance certification for HVACR products in their green building guidelines. Wendell Nixon, president of Presidential Heating & A/C in Gaithersburg, Md. “You’re doing this to not only comply with building codes and so your customers can get a tax credit or utility rebate, but also to give them just one more reason to choose you over your competitors and to reduce your liability.” “Forward-thinking contractors understand the compelling business reasons to educate their customers on the importance of choosing AHRI Certified™ heating, cooling and commercial refrigeration equipment,” said Nixon. AHRI’s certification programs help contractors and their customers make fair comparisons and informed purchasing decisions. AHRI certification also helps marketing activities and builds consumer confidence in the product’s performance. Phrase Marks While the performance ratings among certified products vary, customers can be confident that certified products have cleared a significant hurdle acceptable to most environmental groups. Finally, third-party certification sets standards of conduct for ethical behavior, including requiring manufacturers to de-rate their product’s performance claims when they fail tests and to undergo annual testing of random samples from their product lines to monitor their claims. • “ASK ABOUT OUR CERTIFIED PRODUCTS.” • “WE INSTALL CERTIFIED SYSTEMS.” “If you are an HVACR contractor and want to be successful in today’s green building market, you are using AHRI’s directory and printing the equipment certificates for your customers,” said To help dealers and distributors build consumer awareness of the value of purchasing AHRI Certified HVACR systems, AHRI has developed two phrase marks offering the following message options: The two phrase marks may be used on an array of promotional materials, company-owned cars and vans, advertisements, circulars and other marketing collateral. For more resources to promote AHRI Certified equipment and components, and to educate your customers about the value of certification, go to the Specifiers/Contractors area of www.AHRInet.org for downloadable brochures, phrase marks, and other promotional ideas. 10 905CSTMAHR10.indd 1 4/22/2009 4:20:03 PM © 2009 Mitsubishi Electric and Electronics USA, Inc. “ Everything that can be ” invented has been invented. or Charles H. Duell, Commissioner, U.S. patent office, 1899 Profiting from new technologies other people miss. We never stop inventing ways for you to make money. While unitary system sales have fallen flat over the last five years, Mr. Slim® sales have soared. If you’re looking to distinguish your business, generate higher profits with less labor, and provide lasting, precision comfort for your customers, Mr. Slim is made for you. Mr. Slim is the market leader in service and sales support, and the contractors’ #1 preferred brand.* It’s time to seize your opportunity. Learn how at mrslim.com/sell *2006 ACHR NEWS Survey 905CSTMAHR11.indd 1 4/21/2009 5:34:46 PM coverstory Weathering the Econo Downturn N o corner of the HVACR industry has been spared from the negative effects of the economic downturn. AHRI Trends asked representatives from various sectors of the industry what they have been doing in their own companies to maintain balance, and for words of advice to others. The magazine thanks the following participants for their contributions: AHRItrends | Spring/Summer 2009 Advice from industry leaders on looking forward during these unprecedented times. 12 905CSTMAHR12.indd 1 4/22/2009 4:20:33 PM Mitchell Cropp ng nomic CONTRACTORS Mitchell Cropp President Cropp-Metcalfe Alexandria, Va. Dewey Jenkins Owner Morris-Jenkins Co. Charlotte, N.C. DISTRIBUTOR George F. Wheelock, III President The Geo. F. Wheelock Co. Birmingham, Ala. MANUFACTURER OEM Edgar M. Purvis, Jr. Executive Vice President of Emerson and Business Leader of Emerson Climate Technologies Sidney, Ohio Policy and procedures. Are they right for the times, and are you following them? Do they need updating? Ask your managers, co-workers and business associates for their ideas on how your company can get through these challenging times. Wait for their answers; don’t lead them with what you think. Now is a time of opportunity to fine-tune your organization. When things are not working well, you need to get back to the basics and make things happen – not wait for things to happen. There will be companies in your market that give up. Who will get their customers? Hopefully, it will be you. —Mitchell Cropp Dewey Jenkins To succeed in this economy, we’re taking a threepronged approach. First, we’re turning a laser focus on all expenses. We’ve found savings in all areas ranging from office supplies to our GPS service to our Nextel bills. For instance, our current gas card provider was charging $1.50 monthly for each card. By changing vendors, we not only eliminated this fee but we will receive rebates on gas purchases for an annual savings of $4,120. www.AHRInet.org OEM SUPPLIER People. Review all the great managers and leaders in your organization. Are they performing up to expectations? Whatever you do, don’t stop training; in fact, you may have to increase it. | Rod Rushing Vice President and General Manager, Unitary Products Division Johnson Controls Inc. Milwaukee, Wis. Business plan. Does the plan you formulated last year or the year before still make sense? Work your plan – don’t let it work you. AHRItrends Dennis Laughlin President Arzel Zoning Technology, Inc. Cleveland, Ohio Some view the current economic conditions as a disaster or a time to quit. I think it’s a time for all of us to take a closer look at our companies to see if we are in need of some “refreshments.” I suggest contractors take a close look at the following three areas: 13 905CSTMAHR13.indd 1 4/22/2009 4:20:56 PM While reducing costs is important, we didn’t want to accomplish that by cutting employees. Instead, we asked employees to take a fresh look at everything about their jobs to see if there are better, less-expensive ways to do them. The person responsible for the job, and therefore the costs, always has the best suggestions for savings and efficiency. Second, we’re focusing on our systems and procedures with the goal of making it easier for our customers to do business with us. This encompasses all our activities, including answering the phones, getting our technicians to the customers’ doors, making sure we have the proper parts and accessories on the service vans, collecting our receivables and following up with our customers. The result is better service, happier customers and lower costs. Third, we’re wrapping our existing customers in a warm blanket of service. Now more than ever, we want to keep each one of our existing customers. While we are continuing our marketing efforts to get new customers, we don’t want to forget that our existing customers are the ones responsible for our success. Plus, we know that our competitors want them. So, we’re offering service specials and contacting them more frequently. We’re making a concerted effort to let them know that we value their business. —Dewey Jenkins AHRItrends | Spring/Summer 2009 George F. Wheelock, III In the 34 years that I have been in the distribution business, this has been the deepest, most protracted economic storm that I have experienced. Unlike previous recessions, basic core businesses were never threatened like they are now. Individual investors have seen dramatic declines in their net worth, and retirement is now out of the question for a lot of small business people. How to minimize the damage? Don’t resist change! If we as an industry learned anything at all from the 10-to-13 SEER transition, embrace the transition to R-410A. Try to be leading-edge, not bleeding-edge. Look for new products and technology that will set you apart from your competition. Know what is going on around you. Keep an ear out for news that affects your business. Keep up with trade magazines. Rely on your industry associations to help decipher all the news coming out of Washington and how it affects you. Take advantage of the new tax incentives, and learn how they will impact you and your customers. Use this slowdown to further educate and train your workforce. Review all operating costs and make necessary adjustments. Work every day to generate “cash flow” for your business, and understand there is still some business you must turn down! This is the time to invest money to get the best advice possible. Use your CPA or other trusted advisor. Maintain good relations with your vendors. Last, but not least, it’s important to maintain a good balance between your work life and home life. This economic storm will not last forever! —George F. Wheelock, III Dennis Laughlin Manufacturing in 2009 is like being one of the Flying Wallendas. It is easy to lose your balance. You need to be constantly aware of changing winds, and if you are looking for a net, you are casting your focus in the exact direction you do not want to go. Manufacturers are faced with the need to contract operations to match sales trends while not losing the capacity for recovery that we all anticipate. Maximizing inventory turns and keeping resources focused on sales efforts are in everyone’s best interest. These times are the real litmus test of whether the message of your selling proposition is being understood. This year, unlike 2006 and 2007, any disconnect in resonance will not be masked by volume of opportunity. It will be critical that manufacturers connect with their ultimate customers and maintain reality in R&D projects in the pipeline. A miss here will endanger recovery, whenever it happens. We also recognize that increased communication on our part is a great antidote for the media-imposed malaise that is pandemic among the talking heads of our world. All manufacturers have great stories of success with products, applications, and their wholesaler and contractor partners. Those messages need to be told. This is not Business 101. Simple blocking and tackling will not guarantee you will be around. I don’t think you can win this game on defense. The challenge is to develop the next round of answers when we have the least amount of capital and a changing environmental horizon. The extra degree of difficulty is a consumer base in need of 1 905CSTMAHR14.indd 1 4/22/2009 4:21:18 PM SYSTEM 636 PVC (rated up to 65OC) SYSTEM 636 CPVC (rated up to 90OC) Toll Fr ee: 1-800-463-9572 905CSTMAHR15.indd 1 4/21/2009 5:45:23 PM real education on our product lines. These are the most competitive times many businesses have faced. Better have your shoes laced up tight. —Dennis Laughlin Rod Rushing You don’t have to be a rocket scientist to know that these are tough economic times for the HVACR industry. But as the saying goes, when one door closes, another one opens. To be in a good position when the economy bounces back, consider the following: Now, more than ever, become your customers’ consultant, not their salesperson or technician. Today’s marketplace is more confusing than ever – tax credits, rebates, green, efficiency, modulation, multistage, the list goes on and on. With your knowledge of the business and a few questions, you can serve as the customers’ consultant and help them make very good comfort decisions that can show a better rate of return than most investments available today! Take advantage of the economic stimulus package, federal tax credits and manufacturer’s rebates. The stimulus package has the potential to be very important for our industry. Educate your residential customers This year, unlike 2006 and 2007, any AHRItrends | Spring/Summer 2009 disconnect in resonance will not be masked by volume of opportunity. — Dennis Laughlin about the federal tax credits available under the American Recovery and Reinvestment Act of 2009. The new law makes important changes to existing tax incentives for homeowners who make qualified improvements using high-efficiency HVACR products and equipment in their primary residences. (See page 6.) Help your customers achieve “attainable sustainability.” In the past, many customers were faced with the choice of paying a premium, but not receiving a good payback, on their purchase of “green” HVACR products. Today, however, customers can achieve attainable sustainability. Give them heating and cooling options that are not only affordable (attainable), but also make them feel good about being green (sustainable). Today’s HVACR products are better than ever. So don’t let the sagging economy get you in the dumps. Realize that new doors are opening for our industry. Help your customers walk through them. —Rod Rushing Edgar M. Purvis, Jr. This is a challenging time for the HVACR industry and business at large. The global economic crisis requires aggressive actions and clear prioritization of our resources. Like many other companies, we have taken actions to reduce operational expenses. These cost-reduction efforts have been difficult but necessary. In addition, we are asking employees to partner with us to identify other cost savings, which has produced many positive ideas and actions. I am very proud of how our team has responded in these difficult times. Internally, we continue to openly share information so employees are best prepared to support our customers and the company during tough times. Externally, we are staying in touch with our customers and suppliers in order to respond quickly to changes in the market. We are confident in our strategy of investing in growth and concentrating our efforts on the key programs where we see the greatest long-term potential for Emerson and our customers. These include advanced electronics and integrated solutions for air-conditioning and refrigeration applications. More than ever, we must continue to invest where we identify opportunities for product innovation, new or expanding markets, and expanding the value we add to our customers. Though we face additional economic uncertainties ahead, Emerson is well-positioned to deal with these challenges. We continue to constantly monitor all of our businesses and make adjustments as needed in this dynamic environment. We also intend to continue driving future opportunities with strategic product investments while maintaining our role in industry stewardship. —Edgar M. Purvis, Jr. 16 905CSTMAHR16.indd 1 4/22/2009 4:22:19 PM DIAGNOSTIC TOOLS TO MEASURE BUILDING PERFORMANCE Minneapolis Blower Door™ The Leader in Airtightness Testing Blower Door tests are used to measure the airtightness level of building envelopes, diagnose and demonstrate air leakage problems, estimate natural infiltration rates, estimate efficiency losses from building air leakage, and certify construction integrity. For more than 20 years, the Minneapolis Blower DoorTM has been recognized as the best designed and supported building airtightness testing system in the world. Combined with new features such as Cruise without a computer, specialized accessories and complete testing procedures developed by The Energy Conservatory, the Minneapolis Blower Door is the system of choice for utility programs, energy raters, HVAC contractors, builders, insulation contractors and weatherization professionals. Precision Engineered, Calibrated Fan Accurate, Powerful 2 Channel Digital Pressure and Flow Gauge Lightweight, Durable Aluminum Door Frame and Fabric Panel For more information about options, price and delivery, please call 612-827-1117. To view and download the product literature and complete owner’s manual visit our website at www.energyconservatory.com. The ENERGY CONSERVATORY DIAGNOSTIC TOOLS TO MEASURE BUILDING PERFORMANCE DIAGNOSTIC TOOLS TO MEASURE BUILDING PERFORMANCE The Original Duct Blaster® Duct Airtightness Testing System The Duct Blaster® from The Energy Conservatory is the leader in duct airtightness testing. Proven in the field by HVAC technicians for more than 15 years to be lightweight, easy to use, rugged, reliable and accurate. The Duct Blaster System comes with: The 2 channel DG-700 Pressure and Flow Gauge Fan with flow rings and speed controller Flex duct and hoses Carrying case, instructions and video The Duct Blaster System is the preferred system for Title 24 testing in California, as well as duct leakage compliance testing in Florida, Texas and for Energy Star testing throughout the country. For more information as well as pricing and delivery information call us at 612-827-1117. To see literature, owner’s manual and view the video, visit our website at www.energyconservatory.com. 905CSTMAHR17.indd 1 The ENERGY CONSERVATORY DIAGNOSTIC TOOLS TO MEASURE BUILDING PERFORMANCE 4/21/2009 5:36:53 PM featurestory Outlook for AHRItrends | Spring/Summer 2009 Chilled B This green technology is beginning to catch on in the U.S. By Lisa Murton Beets C hilled beams have been used in Europe and Australia for approximately two decades and are just now finding their way into the United States marketplace. While chilled beams offer numerous benefits, their energy efficiency makes them especially attractive for building owners and facility managers. They also are appealing to architects and engineers in that they can help a design team earn LEED® points from the U.S. Green Building Council (USGBC). Chilled beams are essentially ceiling-mounted diffusers operating like fan coils without fans. They deliver cooling or heating via circulated chilled or heated water rather than by air. Water is cooled to approximately 59º F to 65º F (or heated to approximately 85º F to 115º F) and is pumped to the chilled beam units. The lower water temperatures increase the coefficient of performance (COP) of the chiller plant. 18 905CSTMAHR18.indd 1 4/22/2009 4:22:43 PM Both passive and active types of chilled beams are beginning to be applied in North America. Active chilled beams are either flushmounted in the ceiling or exposed below the ceiling. A third type, multiservice, integrates other building services such as lighting, sprinklers, detectors, speaker systems, IT recirculated air into the space. Smaller ducts, smaller fans and lower horsepower requirements are all benefits of this technology. Active chilled beams are said to dramatically reduce fan energy. “In the typical office building constructed today – one with a good envelope and a reasonably efficient lighting system – the number one energy consumer is usually fans,” says one major chilled beam manufacturer. “Active chilled beams stand to reduce fan energy by 65 percent to 85 percent when compared to a conventional all-air system, because they reduce the amount of air that needs to be circulated,” he adds. d Beams systems, etc. Thus far, however, this type has only been used in Europe because pricing-, code- and unionrelated issues have prevented its use in the U.S. | A linear passive chilled beam diffuser installed in an exposed-mount ceiling application. Photo courtesy of Titus, Inc. www.AHRInet.org Active chilled beams (see Figure 2 on page 21), which also are sometimes referred to as “induction diffusers,” are connected to an air-handling unit and provide dry ventilation air to a space through “induction” nozzles, which then provide cool, AHRItrends Passive chilled beams (see Figure 1 on page 21) work via natural convection by locating the beam below the ceiling where the warm air on the ceiling can pass through the coil, which results in the heavier cool air from the coil falling to the lower-level occupied zone. They have no air supply and therefore require a separate air-handling system to provide ventilation air. They are usually best-suited to supplement other ventilation systems for perimeter areas in a building. 19 905CSTMAHR19.indd 1 4/22/2009 4:23:35 PM “Active chilled beams sta when compa that time, he traveled to Europe to tour several buildings with executives from chilled beam manufacturer Trox in the UK, which now has a U.S. operation as well. “Since then, we’ve been doing chilled beam designs for labs and office spaces. We’ve done six or seven in the U.S., including one for the University of Washington. We are pleased with the technology. From our perspective, they are relatively easy to install, and the pricing continues to come down as more companies begin to manufacture the beams in the U.S.” A linear active chilled beam diffuser with two-way air distribution in an exposed-mount ceiling application (top) and in a flush-mount ceiling application (bottom). Photos courtesy of Titus, Inc. AHRItrends | Spring/Summer 2009 Chilled beams are 2 ft. wide and are available in various lengths, up to 10 ft. They fit into the ceiling like a diffuser and the installation is generally straightforward. Other benefits offered by active chilled beams include quiet operation, few moving parts, lessened maintenance requirements and improved thermal comfort due to minimal air flow. Because bulky ductwork is not needed, chilled beams have the potential to reduce floor-to-floor ceiling height by about one foot – which in a 10-story building would save nearly an entire floor. Less space is needed for the mechanical room as well, because chilled beam systems don’t require equipment and large ductwork. Markus Benzenhofer, P.E., principal of Exrgy LLC, Santa Clara, Calif., had many years’ experience designing radiant ceiling and chilled beam systems in Europe before he relocated to the U.S. nine years ago. He is currently working on a project for the Dallas Performing Arts Center. “Chilled beams started to catch on here about five years ago,” he says. “In the past, I saw a lot of retrofit applications, but now we’re seeing new construction projects as well. Universities and institutions are the primary early adopters. We see it more in historic buildings, too, because of the savings in ceiling space.” Mike Walters, P.E., LEED AP, sustainable market leader, Affiliated Engineers, Inc., Madison, Wis., says his company started looking at chilled beam systems about five years ago. At Good applications for active chilled beams include the previously mentioned universities and historic buildings, government buildings, laboratories, open plan office buildings, meeting rooms, libraries and hospitals. Spaces with low noise level requirements are good candidates, as are applications where there is a high concern for proper ventilation and high humidity control. “Chilled beams are not a silver bullet,” Benzenhofer says. “They are not for kitchens that have greasy air or for data centers, which in most cases need more cooling than chilled beams can provide. And if the ceiling height is above 14 ft., an underfloor system with radiant panels might be a better option.” “Buildings with a high level of humidity infiltration, including old buildings with leaks and/or buildings with operable windows, also are not good candidates. Neither are areas with high occupancy,” says a representative from another major manufacturer. This company got into the chilled beam 20 905CSTMAHR20.indd 1 4/22/2009 4:24:04 PM ms stand to reduce fan energy by 65 percent to 85 percent n compared to a conventional all-air system...” market several years back and views the technology as one of several tools to achieve energy savings. Its engineers also are working with chilled floor, displacement ventilation and other energy-efficient technologies. Manufacturers believe that as more emphasis is placed on green buildings and energy efficiency, this market should continue to take off. Federal, state and local requirements for energy efficiency are all putting more pressure on buildings to be more efficient. Chilled beam technology is in the early stages in the U.S., but manufacturers report that the number of installations has grown exponentially over the last few years. If initial cost is a decision-making factor, manufacturers note that in many cases, the increased first cost of an active chilled beam system can be offset by smaller central air handlers and elimination of the ductwork systems that conventional systems require. Among the other positive aspects of the technology are the fact that chilled beams do not require electrical line power connections, so electrical wiring installation costs can be reduced. In addition, commissioning of a chilled beam system requires only adjustments to the water-balancing valves and primary air-balancing dampers through static pressure readings. “Humidity and condensation issues can be addressed through proper control strategies,” Walters says. “In most cases, we just control the water temperature with a few sensors.” In addition to first cost and lifecycle cost issues, there also is a need for more education about chilled beam technology. “Most engineers in the U.S. are most familiar with VAV technology,” Benzenhofer notes. “We’re beginning to see more information published about chilled beam technology, and with more manufacturers entering the market, education should grow.” Benzenhofer points to large, high-profile projects, such as the SmithGroup’s Constitution Center building redevelopment in Washington, D.C. – which will feature both passive perimeter chilled beams as well as active chilled beams to handle the majority of cooling and all the heating for the nine floors of office space – as models for the industry moving forward. According to Benzenhofer and Walters, two of the primary misconceptions about chilled beam installations at this point involve condensation issues and installation. “Installation is easy,” adds Benzenhofer. “You attach the beams to a hanging system and make the connections. It’s very straightforward. I saw one mechanical contractor allot 20 hours to install a 2 ft. x 4 ft. beam, which should only take about two or three hours. They factored in a lot of risk because they were unfamiliar with it. I think as more projects are completed, we’ll see prices drop on installation as well.” Benzenhofer also notes the lack of product certification. “We have a lot of different manufacturers in the marketplace, but we lack the tools to compare the products,” says Markus. “We are going to need a way to certify the ratings. Engineers are eager for test labs and certification. All we have are the European standards to go by. An ASHRAE technical committee is in place working on this. It will be an important part in being able to sell these systems and a key factor for gaining the trust of engineers and owners.” www.dadanco.com, www.titus-hvac.com Lisa Murton Beets is a Cleveland-based freelance writer specializing in HVACRrelated topics. www.AHRInet.org Figure 2. Active chilled beams are connected to an air-handling unit and provide dry ventilation air to a space through “induction” nozzles, which then provide cool, recirculated air into the space. Source: Affiliated Engineers, Inc. | REFERENCES: www.aeieng.com, Figure 1. Passive chilled beams work via natural convection by locating the beam below the ceiling, where the warm air on the ceiling can pass through the coil, which results in the heavier cool air from the coil falling to the lower-level occupied zone. Source: Affiliated Engineers, Inc. AHRItrends The Engineering Committee of AHRI’s Chilled Beams Section is currently developing a standard for these products. Once completed, the section intends to develop a certification program. 21 905CSTMAHR21.indd 1 4/23/2009 4:19:06 PM featurestory Geothermal Heat Pumps A market whose time has come. By Lisa Murton Beets G AHRItrends | Spring/Summer 2009 eothermal heat pumps (GHPs) have come a long way since they were first introduced in the United States market somewhere around the late 1970s. What used to be viewed as somewhat of an alien concept by many homeowners has grown more mainstream, into a multimilliondollar industry in fact. According to GHP manufacturers, one out of every 38 new homes built in the U.S. in 2008 featured a geothermal system. That translates into 2.6 percent of all homes; that figure was about 0.5 percent just a few years ago. Many factors have contributed to the growth, including more consumer awareness of the benefits of geothermal; increased demand for energy efficiency and reducing carbon footprint among consumers; technological improvements; more experience on the part of dealers and installers; high-quality training opportunities; and refined sales tools from manufacturers to their dealers. Equipment Enhancements Over the last 10 years, GHP efficiencies have gone up dramatically. Some of the technology improvements include variable-speed fan motors, two-stage compressors and advanced controls. These all have led to increased comfort, better dehumidification and quiet operation. Todd Zeplin, owner of Collier’s Heating & Air Conditioning, Ft. Wayne, Ind., started out in the geothermal industry in the mid’80s. He compares the changes in geothermal heat pump technology to those experienced in the auto industry. “Years ago, you had to choose between horsepower and gas mileage – did you want the Mustang, or did you want the Chevette? With today’s electronic ignition systems, you can have it all – good horsepower, good mileage and a nice, quiet ride.” Zeplin says that back in the ’90s, geothermal was a niche market, but that’s no longer the case. “The industry has learned from its failures, warranty claims and complaints. Again, it’s just like the auto industry: years ago, you just assumed you couldn’t get over 100,000 miles from a car; today it’s 200,000 miles or more.” Technology for Today Growth in GHP sales has greatly increased over the last few years. Good growth was experienced in 2003 and 2004 when the EER efficiency ratings of geothermal heat pumps went from below 20 percent, up to 25 percent to 30 percent. Then the dramatic surges in gas prices that began in 2005 seemed to make people more cognizant of how much energy they were using in their homes. On top of that, awareness of geothermal has grown as people continue to look for ways to reduce their carbon footprint. Installing a GHP in the home is one way to save energy and reduce emissions. 22 905CSTMAHR22.indd 1 4/22/2009 4:24:50 PM Today’s geothermal systems, using the earth’s natural energy, can heat and cool a home, and provide domestic water heating as well. They also can be used in combination with radiant floor heating systems, including systems integrated with solar panels, and can also provide heating for snow-/ice-melting and pools. The Environmental Protection Agency (EPA) touts GHPs as one of the “most efficient and comfortable heating and cooling technologies currently available” and estimates that ENERGY STAR®-qualified GHPs use about 30 percent less energy than standard heat pumps. How much a homeowner can save in energy costs by installing a geothermal system will depend on his or her location and the type of equipment to which it is being compared. For an example of a Tax Incentives for Homeowners Who Install Geothermal Homeowners who install geothermal heating and cooling systems that meet ENERGY STAR® requirements will now be able to take a 30 percent tax credit on the total cost. Additional tax incentives are available in certain states. For more information, go to www.dsireusa.org. Previous legislation offered a one-time tax credit with a maximum credit of $2,000 for a single residence. The American Recovery and Reinvestment Act of 2009, signed into law on February 17, 2009, extended and expanded the credit. Contractors who want to download geothermal tax guides to share with their customers may do so by going to www. climatemaster.com/index/taxinformation or www.waterfurnace. com/tax_credits.aspx. The new tax credits apply to equipment installed between January 1, 2009, and December 31, 2016. Note: A credit of 10 percent of the total investment is also available for commercial system installations. Hardi 23 905CSTMAHR23.indd 1 4/22/2009 4:25:25 PM Tapping into the Earth’s Energy savings calculator, go to www.waterfurnace.com/savings_calculator.aspx. Geothermal systems tap the free, renewable supply of solar energy stored just a few feet below the Earth’s surface and use the energy to drive heating and cooling systems. Closed-loop systems (see Figure 1) circulate a water-based solution through a loop system of smalldiameter underground pipes. Such systems can be installed horizontally, vertically or in a pond. Replacement Market Is Growing Horizontal loops are often used when adequate land surface is available. Pipes are placed in trenches that range from 100 ft. to 400 ft. in length. Vertical loops are used where land is limited. Holes are bored from 100 ft. to 400 ft. deep. Pond (lake) loops are economical to install when a pond or lake at least 8 ft. deep is located nearby. Coils of pipe are placed at the floor of the lake or pond. Source: WaterFurnace International, Inc. Direct exchange (DX) GHPs circulate refrigerant utilizing highly conductive copper loops buried entirely underground to transfer heat between the earth and the building. The underground location protects the system from the outdoor elements and extreme temperature conditions. In the summer months, heat is transferred from the building to the earth, thus cooling the building. In the winter months, heat is transferred from the earth to the building, thus heating the building. Figure 1. From left to right: a pond loop, a horizontal loop and a vertical loop. Several GHP manufacturers have indicated that the replacement market for their products is growing faster than they anticipated. In one case, the ratio moved from 75/25 new construction/replacement to a 60/40 ratio. Another company reported moving from 90/10 to about 50/50 over the last few years. Zeplin reports that Collier’s primarily did new construction when they first started out. When new construction dropped off dramatically, Collier’s was at 70 percent new construction/30 percent replacement. Fortunately for his company, Zeplin had made the decision to begin focusing on the replacement market and had hired a replacement salesperson about a year before the housing bust. Today, the company is at 35 percent to 40 percent new construction/60 percent replacement. When Zeplin started out, he and the manufacturers had little competition. “We have plenty now, though,” he says. “The prices are coming down, the equipment is more efficient, and we as contractors have gotten better and more efficient. If I were to make a prediction, I’d say that all the major manufacturers who used to view geothermal as a niche will probably start focusing on it within the next five years. Mass production of units would help bring the costs down even farther. I also think that contractors would be well advised to jump on the bandwagon or face being left behind.” One major manufacturer said his company began to focus on the growing residential business three years ago. This included produc- ing design software and software for dealers to share with customers showing how the customer would gain “positive cash flow” by installing a GHP. The company representative said, “You can’t even use the term ‘payback,’ because the savings are more than the cost per month to own one. The software also shows customers how much carbon dioxide they will reduce in hundreds of thousands of pounds over 20 years. We are the only renewable technology that offers a positive cash flow versus solar and wind. Geothermal is saving people money now.” From the contractor’s point of view, Zeplin says that geothermal has become a much easier sell. “We have so many successful installations to point to and many customer referrals. Plus, the tools we’ve been given over the last few years make it much easier to explain to customers how geothermal works. They also have the Internet, which is where they are often doing their preliminary research and finding a lot of good information.” Looking Forward As the government continues to demand higher and higher efficiency ratings, and environmental issues come increasingly to the forefront, geothermal sits ready and waiting. Recent expanded tax incentives (see sidebar on page 23) should help stoke the fire. As one manufacturer said, “We’ve been growing slowly and steadily over the years, and we have a proven track record. We have a solid foundation to work on. We feel … we hope the tax incentives will be enough to insulate us during these difficult economic times.” Lisa Murton Beets is a Clevelandbased freelance writer specializing in HVACR-related topics. 2 905CSTMAHR24.indd 1 4/22/2009 4:25:49 PM Co-sponsored by: See You Next Year in Orlando INTERNATIONAL AIR-CONDITIONING • HEATING • REFRIGERATING EXPOSITION January 25-27, 2010 Orange County Convention Center Orlando, Florida Co-sponsors: Honorary sponsor: For information on attending visit our Website: www.ahrexpo.com For exhibiting information contact: 15 Franklin St. • Westport, CT 06880 • tel: (203) 221-9232 • e-mail: info@ahrexpo.com 905CSTMAHR25.indd 1 4/23/2009 4:47:47 PM featurestory Industry Prepares for Next Step in HCFC Phaseout T he Montreal Protocol (MP), to which the United States is a party, requires signatory nations to ultimately eliminate ozone-depleting substances according to a timeframe agreed to by the parties. January 1, 2010, marks the next major MP implementation date, for it is then that the manufacture of ozone-depleting hydrochlorofluorocarbon (HCFC) refrigerants will no longer be allowed. As of that date, HCFCs will no longer be allowed to be manufactured in, or imported to, the U.S. for use in new equipment manufactured after December 31, 2009. This will naturally affect the use of those refrigerants for comfort cooling and refrigeration systems, for many such systems in use today use HCFC-22 (also known as R-22). chlorine or bromine, and therefore do not deplete the ozone layer. Equipment using HFC refrigerants is already in widespread use and will be the primary choice for those making HVACR purchases after 2010. However, this does not mean the existing equipment in facilities across the country will be rendered obsolete on January 1, 2010. HCFC refrigerants manufactured before January 1, 2010, as well as reclaimed refrigerants, can still be used to service existing equipment. How much refrigerant will be available, however, depends in large part on the effectiveness of recovery and reclamation practices carried out by end-users and their vendors. While the reuse of these substances is not a new concept, the phaseout has made end-of-life procedures even more important. What Contractors and Technicians Need to Know The Environmental Protection Agency (EPA) and the air-conditioning and commercial refrigeration industry agree there will likely be an HCFC shortfall beginning next year. This will likely cause the cost of these refrigerants to escalate. Contractors and technicians need to act now to create a management plan for their existing HCFC refrigerants. They should begin looking at replacement options and prepare for the eventual complete phaseout of HCFCs. The two main choices most facilities have are to plan to replace the equipment or to retrofit with an alternative refrigerant that does the same job. Those who plan for the AHRItrends | Spring/Summer 2009 For the time being, these refrigerants will be replaced with hydrofluorocarbons (HFCs), which do not contain 26 905CSTMAHR26.indd 1 4/22/2009 4:26:40 PM Headline 1 eventual absence of HCFCs from the marketplace will be in the best position to meet this challenge. Headline 2 EPA Rule in Process In December 2008, the EPA issued Kicker a draft rule governing the sale of By Lisa Murton Beets equipment precharged with HCFC refrigerants and their blends. The Air-Conditioning, Heating and Refrigeration ext Institute (AHRI) and its members had requested the rule in 2007 to Subhead close a loophole that would allow foreign-manufactured equipment precharged with HCFC refrigerants to be imported into the U.S. With a new Administration in place, the draft rule is under fresh review, • bullet points but is expected to be released as a final rule in late summer/early fall 2009. T It is important for contractors to be aware that refrigerants can be removed from equipment and “reclaimed” for future use. A “reclaimed” refrigerant means it has been processed to remove impurities, according to AHRI 700. The EPA requires recovered refrigerants to be reclaimed by an EPA-certified reclaimer before they can be resold. Certified reclaimers verify the purity of the reclaimed refrigerant by testing it according to the AHRI (ARI) 700 Standard for Refrigerant Purity. This provides assurance to contractors and facility managers that those reclaimed refrigerants will not impede the efficient operation of their equipment. EPA’s list of certified reclaimers is available at www.PhaseOutFacts.org or on the EPA’s Web site. might want to manage their existing refrigerant supplies as an asset and consider banking reclaimed refrigerant for continued use in their facilities. Refrigerants can be deposited with an EPA-certified reclaimer that offers such a banking program. The reclaimer reprocesses recovered refrigerant to meet AHRI 700 Standard specifications and stores it until the depositor requests a withdrawal. New Web Resource Available AHRI and its members have launched a new informational Web site, www.PhaseOutFacts.org, designed to help educate facility managers, contractors, technicians and equipment owners about what this means for them. The site provides information that covers the phaseout schedule, rules and regulations, refrigerant availability and much more. If the site’s content doesn’t provide the answers to all questions, users are encouraged to take advantage of the site’s “Ask the Expert” feature, which provides access to industry and government sources that can respond accurately. Contractors and facility Understanding that HCFC refrigermanagers can also download a sample ants will be more scarce and therefore refrigerant management plan from more valuable in the near future, the site to help them comply with the Caption facility managers and contractors latest rules and regulations. www.AHRInet.org As supplies of HCFC refrigerants become more limited, reclaiming refrigerants will become more financially attractive. This likely will result in reclaimers offering incentives for recovered refrigerant. This should prompt contractors and equipment owners to take steps, such as monitoring for and quickly stopping leaks and instituting other responsible use measures, to ensure no emissions and the maximum amount available for reclamation. EPA Branch Chief Julius Banks addresses AHRI members and media about the 2010 HCFC phaseout. | “A precharged component manufactured before January 1, 2010, could be used to service an existing appliance. For example, the regulatory text for the proposed precharged Reclaiming Refrigerant AHRItrends Since release of the draft rule, the EPA has issued a clarification document addressing several concerns expressed by affected parties such as AHRI and its members. For example, the original draft rule did not contain a “pass-through” provision, leaving manufacturers concerned that unshipped or unsold equipment manufactured before the cutoff would be unable to be sold. The clarification makes clear that the condensing unit of a split residential system is only one part of that system. Therefore, a pre-2010 HCFC-charged condensing unit could be installed in 2010 or beyond to “service” the existing split system. The language states that “servicing of existing (pre-2010) appliances containing HCFC-22 or HCFC-142b would be allowed. As the 2010 allocation proposal notes at 73 FR 78699, servicing includes the replacement of components. appliances rule lists condensing units as a type of component. Thus the proposed rules would not prohibit the sale or installation of stockpiled precharged condensing units that were manufactured before January 1, 2010, and used to replace a condensing unit in an existing residential split system.” 27 905CSTMAHR27.indd 1 4/22/2009 4:27:14 PM Cdi]^c\7ZVihi]Z:meZg^ZcXZd[Æ7Z^c\I]ZgZÇ You’ll Love HVAC Comfortech NAS HV I L L E 2 0 0 9 HZeiZbWZg'("'+!'%%. CVh]k^aaZ8dckZci^dc8ZciZg it Live! HE:8>6A@:NCDI::K:CI EG:H:CI:97N GD7>C8GDLÉHI=:EDL:GD;H:GK>8: I]ZY^[[ZgZcXZWZilZZcWjh^cZhhZhi]Vii]g^kZVcYi]ZdcZhi]Vihigj\\aZid `ZZei]ZYddghdeZcd[iZcWd^aYdlciddcZi]^c\½]dllZaai]Z^g XjhidbZghVgZhZgkZY#D`!lZVaa`cdli]Vi#7jii]ZXg^i^XVa Y^hi^cXi^dc^h`cdl^c\]dlidZmeVcYndjggZhdjgXZh!bVm^b^oZ ndjgZ[[dgih!VcY^che^gZndjgiZVbidXdch^hiZcianeji\gZVi hZgk^XZ^cidegVXi^XZ#>ci]^hYncVb^XegZhZciVi^dc! GdW^c8gdlegZhZcihk^k^YZmVbeaZhd[]dl\gZVi FHEK:BO XdbeVc^Zh!^cXajY^c\]^hdlc!9Vg`=dghZGZXdgY^c\ IFEDIEH;:8O0 ]VkZVeea^ZYi]ZhZeg^cX^eaZhidVX]^ZkZ hjhiV^cZYhjXXZhh# H;=?IJ;HJE:7O WdZjWa[WZlWdjW][e\\WdjWij_Y ;Whbo8_hZZ_iYekdjiWdZ\h[[]_l[WmWoi B[Whdceh[WdZh[]_ij[hWj lll#]kVXXdb[dgiZX]#Xdb Succeed. Grow. 9ec\ehj?dij_jkj[ ?9EH?dj[hdWj_edWb Ed[>ekh>[Wj_d]7_h9edZ_j_ed_d] ;gk_]kWhZ"?dY$ >L79fhe\_jXeeij[hi$Yec I[hl_Y[HekdZjWXb[ Dominate. EGD9J8:9B6C6<:97N 905CSTMAHR28.indd 1 4/24/2009 10:43:45 AM © 2009 Trane. All rights reserved. Looking for an advantage nobody else can offer? How about this: Trane CleanEffects can reduce the risk of strokes, heart attacks and asthma attacks. And only Trane dealers have it. ™ Since it removes up to 99.98% of particles down to .1 microns from the air it filters, Trane CleanEffects can help prevent ultra fine particles from building up in the lungs where they can damage cardiovascular health. CleanEffects also removes more than 99% of common flu viruses. So you can offer your customers an indoor environment that’s truly healthier. Learn more from your local Trane distributor. 905CSTMAHRIBC.indd 1 4/21/2009 5:43:19 PM YELLOW JACKET. CELEBRATING 60 YEARS www.yellowjacket.com/trends Copyright © 2009 Ritchie Engineering Company, Inc. All rights reserved. 905CSTMAHRBC.indd 1 4/21/2009 5:43:49 PM