Spring/Summer 2009

A SUPPLEMENT TO PENTON PUBLICATIONS

THE MAGAZINE OF THE AIR-CONDITIONING, HEATING, AND REFRIGERATION INSTITUTETHE MAGAZINE OF THE AIR-CONDITIONING, HEATING, AND REFRIGERATION INSTITUTE

• OUTLOOK FOR CHILLED BEAMS

• GEOTHERMAL HEAT PUMPS

• INDUSTRY PREPARES FOR HCFC PHASEOUT

Advice from industry leaders on looking forward during these unprecedented times.

A BrighterTomorrow

AHRI UNVEILS NEW CERTIFIED LOGO

AHRI UNVEILS NEW CERTIFIED LOGO

SEE PAGE 10

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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 Institute2111 Wilson Blvd., Suite 500Arlington, VA 22201Phone: 703/524-8800Fax: 703/528-3816e-Mail: trends@ahrinet.orgwww.AHRInet.org

Leadership

Keith CoursinChairman

Jack W. KlimpCEO

Stephen R. YurekPresident

Acknowledgements

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

Publishing Offi ce

1300 E. 9th StreetCleveland, OH 44114216/696-7000 tel216/696-1752 faxwww.pentoncustommedia.com

Penton Custom Media

Christy BarksdaleAccount Manager

Lisa Murton BeetsManaging Editor

Steve PalmisonMarketing

Shaun KellyProduction Manager

Cavedweller StudioArt Direction

tableofcontents

features 10 AHRI Establishes a New Mark and a New Home for all AHRI Certifi ed™ Products

18 Outlook for Chilled Beams

22 Geothermal Heat Pumps

26 Industry Prepares for Next Step in HCFC Phaseout

departments 2 Chairman’s Message

4 Legislative Watch: Engaging Lawmakers on Climate Change, Energy Issues

Advertising Index

12 Weathering the Economic Downturn

coverstory:

AHR Expo 2010 ............................. 25Airwell Fedders ................................. 9Desert Aire ........................................ 3ECONAR GeoSystems ..................... 7Emerson Climate Technologies ......... 5Energy Conservatory ...................... 17HARDI ............................................ 23

HVAC Comfortech 2009 ................. 28IPEX ............................................... 15Mitsubishi Electric ........................... 11Rheem .......................................... IFCRitchie Engineering ........................ BCTrane .............................................. 29

Joe Fristik Mike Weil Group Publisher Editor-in-Chief

Dan Ashenden Bob MaderPublisher Editor-in-Chief

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Spring is perhaps my favorite time of year. Warmer weather, birds chirp-ing, fl owers 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.

� e stimulus bill passed by Congress earlier this year, while not perfect, is designed to revive economic growth by spurring spending, manufacturing and job creation. � e bill contains several tax incentives for the purchase of highly effi cient HVACR products – details can be found on page 4.

AHRI’s government aff airs 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

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 com-ing years. Two of those new technolo-gies, chilled beams and geothermal heat pumps, are profi led in this issue.

Finally, most of our member compa-nies are having to make diffi cult deci-sions to protect their current market position and to prepare for the

future. On page 12, folks represent-ing 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.

� is is the third issue of AHRI Trends since our association began. Please let us know how we’re doing. � anks for reading!

Keith CoursinAHRI Chairman

chairman’smessage

Spring/Summer 2009

A SUPPLEMENT TO PENTON PUBLICATIONS

The Magazine of The air-CondiTioning, heaTing, and refrigeraTion insTiTuTe

The Magazine of The air-CondiTioning, heaTeaTTea ing, and refrigeraTefrigeraTTefrigera ion insTiTuTe

• OutlOOk fOr Chilled Beams• GeOthermalheat PumPs• industry PrePares fOrhCfC PhaseOut

Advice from industry leaders on looking forward during these unprecedented times.

A BrighterTomorrow

ahriunveilsnew CertifiedlOGO

nveilsnew Certified

seePaGe 10

Industry TrendsExplore

with AHRI

� anks for reading!

Keith Coursin

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You Wouldn’t Throw Your Car inReverse 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 function-ality? 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 – veryinefficient since no one coil is designed to ideally perform both functions. Our 4-element Q-Pumpuses one air condenser and one air evaporator, each one devoted to perform its function asdesigned. Our other two elements are water chillers in the water loop, one for the balance of thetotal heat of rejection and the other used as the evaporator in the reverse cycle. No reversingvalve! 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.comOr, 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 WITH THE EXPERTS ....

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Effi ciency Summit Helps AHRI Focus Legislative and Regulatory Priorities

Energy effi ciency advocates, repre-sentatives 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 aff ect ongoing collabo-rations on energy effi ciency and environmental stewardship.

Participants in the 3rd Energy Effi ciency Summit received a briefi ng on energy effi ciency 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-effi -cient 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 real-ity when the appropriations process gets into gear in mid-year.

In response to a question, Stayman endorsed the idea of the govern-ment leading the way in purchasing emerging energy-effi cient 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

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 commit-ment to working in an open and honest way with utilities and effi ciency 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 heat-ing and air condi-tioning in the U.S.

At the summit’s conclusion, par-ticipants agreed to collaborate on:

A strategy to facilitate the replace-ment of old and ineffi cient CFC-based chillers through the use of well-designed incentives. A framework for a Code Enforce-ment Structure that could be implemented at the state level. A strategy for promoting manufac-turer’s tax credits as an alternative to mandating higher product energy effi ciency standards.Accelerating replacement of the installed base.

� e 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 consum-

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on Climate Change, Energy Issues

Engaging Lawmakers

President Obama

signs economic stimulus

bill.

AHRI President Stephen Yurek addresses attendees at the AHRI-ACEEE Energy Effi ciency Summit.

Phot

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legislativewatch

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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-effi ciency upgrade provisions in the bill, the association placed advertisements in the top three news

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-effi cient upgrades to govern-ment heating and cooling systems. Below is a chart of tax incentives contained in the stimulus bill.

Tax Credits for Homeowners� e effi ciency levels have been modifi ed to refl ect the highest tier of the CEE High-Effi ciency Specifi cation for Residential HVAC Systems for equipment

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legislativewatch

Product Type Tax Credit Specifi cation Tax Credit Effective DateFind Qualifying Equipment on

www.ahridirectory.org

RESIDENTIAL CENTRAL A/C

Split: EER >= 13 and SEER >= 16Packaged: EER >= 12and 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 >= 8.5and EER >= 12.5and SEER >= 15Packaged: HSPF >= 8and EER >= 12and 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.

RESIDENTIAL GEOTHERMAL HEAT PUMP

Closed Loop: EER >= 14.1 COP >= 3.3Open Loop:EER >= 16.2 COP >= 3.6 Direct Expansion:EER >= 15COP >= 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 effi ciency ratings specifi ed 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 >= 0.82or Thermal Effi ciency >= 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 >= 2.0The tax credit is for 30% of the total cost.1

Feb. 17, 2009–Dec. 31, 2010

Go to Water Heaters.

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.

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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 conven-tional 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!

®

®

The Leader in ColdClimate™ Geothermal Heat Pumps

Call 1-800-4-ECONAR or visit www.econar.com for more information.

Stimulate Your Wallet.The financial benefits of installing a GeoSystem are both short and long term. The recently passed American Recovery and Reinvest-ment 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 cool-ing bills. A typical system pays for itself in a few years. After that it’s all savings!

905CSTMAHR7.indd 1 4/21/2009 5:33:53 PM

“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 effi ciency specifi cations) must meet all performance specifi cations for its category. For example, a tax-credit-eligible split central air conditioner must have stated performance rat-ings of 13 EER and 16 SEER. � e maximum credit has been raised from $500 to $1,500 for the two years (2009–2010). However, some improvements such as geo-thermal heat pumps, solar water heaters and solar panels are not subject to the $1,500 maximum.

Improvements made in 2009 will be claimed on your 2009 taxes (fi led 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 Sen-ate. Because the various bills would address greenhouse gas emissions in

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several diff erent ways, it is diffi cult at this point to predict the eventual out-come. � e 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.

� at might be easier said than done, however, as environmental wishes meet political realities in a poor economy.

What is reasonably sure, however, is that a climate change bill ulti-mately will reach the President’s desk in the next couple of years. How signifi cantly the bill will aff ect 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 ramifi cations.

To focus the issue, the AHRI Gov-ernment Aff airs Committee approved a Statement of Principles to guide association staff and members as they meet with policymakers. � e principles include support for:

A regulatory approach that provides for an appropriate

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phasedown of hydrofl uorocarbons (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.� e ability of appliance and HVACR equipment manufac-turers that rely on HFCs to purchase allowances that could be used or transferred without restriction; the proceeds should be used to facilitate the deploy-ment 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 pro-motion of energy-effi cient and low GWP products, transition assistance for manufacturers and research and recovery assistance.Off set credits for the capture and destruction of CFCs, HCFCs and HFCs.

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What is reasonably sure,

however, is that a climate

change bill ultimately will

reach the President’s desk in

the next couple of years.

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featurestory

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New Mark and a New Home

AHRI Establishes a

for all AHRI Certifi ed™ Products

Now that AHRI is home to all of the industry’s performance certifi ca-tion programs for heating, cool-ing 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 unifi ed mark of perfor-mance assurance to all certi-fi ed equipment and components.

� e new mark will replace the ARI Performance Certifi ed, GAMA Effi -ciency Rating Certifi ed and I=B=R marks. � ese changes will be made according to an implementation schedule that provides enough time to bring all certifi cation 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 certifi cation. “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 prod-ucts being shipped there.”

Introduction of the new certifi cation mark is just one of many initiatives that AHRI is currently undertak-ing to enhance awareness of the AHRI Certifi ed™ brand. AHRI will be working to expand the number of utilities that require the AHRI

Certifi ed reference number in their rebate applications, exploring ways to encourage engineers to require AHRI Certifi ed™ in their con-struction specifi cations, as well as

promoting among green building leaders the importance of recom-mending third-party performance certifi cation for HVACR products in their green building guidelines.

AHRI’s certifi cation programs help contractors and their customers make fair comparisons and informed pur-chasing decisions. AHRI certifi cation also helps marketing activities and builds consumer confi dence in the product’s performance.

While the performance ratings among certifi ed products vary, cus-tomers can be confi dent that certifi ed products have cleared a signifi cant hurdle acceptable to most environ-mental groups. Finally, third-party certifi cation sets standards of conduct for ethical behavior, including requir-ing 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.

“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 certifi cates for your customers,” said

Wendell Nixon, president of Presiden-tial 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 competi-tors and to reduce your liability.”

“Forward-thinking contractors understand the compelling

business reasons to educate their customers on the importance of choosing AHRI Certifi ed™ heating, cooling and commercial refrigeration equipment,” said Nixon.

Phrase MarksTo help dealers and distributors build consumer awareness of the value of purchasing AHRI Certifi ed HVACR systems, AHRI has developed two phrase marks off ering the following message options:

“ASK ABOUT OUR CERTIFIED PRODUCTS.”“WE INSTALL CERTIFIED SYSTEMS.”

� e two phrase marks may be used on an array of promotional materi-als, company-owned cars and vans, advertisements, circulars and other marketing collateral.

For more resources to promote AHRI Certifi ed equipment and components, and to educate your customers about the value of certi-fi cation, go to the Specifi ers/Con-tractors area of www.AHRInet.orgfor downloadable brochures, phrase marks, and other promotional ideas.

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We never stop inventing ways for you to make money. While unitary system sales have fallenflat over the last five years, Mr. Slim® sales have soared. If you’re looking to distinguish your

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Profiting from new technologies other people miss.

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905CSTMAHR11.indd 1 4/21/2009 5:34:46 PM

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Advice from industry

leaders on looking forward

during these unprecedented

times.

No 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:

coverstory

Weathering the EconomicDownturn

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CONTRACTORS

Mitchell CroppPresidentCropp-MetcalfeAlexandria, Va.

Dewey JenkinsOwnerMorris-Jenkins Co.Charlotte, N.C.

DISTRIBUTOR

George F. Wheelock, IIIPresidentThe Geo. F. Wheelock Co.Birmingham, Ala.

MANUFACTURER

Dennis LaughlinPresidentArzel Zoning Technology, Inc.Cleveland, Ohio

OEM

Rod RushingVice President and General Manager,

Unitary Products DivisionJohnson Controls Inc.Milwaukee, Wis.

OEM SUPPLIER

Edgar M. Purvis, Jr.Executive Vice President of Emerson

and Business Leader of Emerson Climate Technologies

Sidney, Ohio

Mitchell CroppSome 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 follow-ing three areas:

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.

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.

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 fi ne-tune your organiza-tion. When things are not working well, you need to get back to the basics and make things happen – not wait for things to happen. � ere 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 three-

pronged approach. First, we’re turning a laser focus on all expenses. We’ve found savings in all areas ranging from

offi ce supplies to our GPS service to our Nextel

bills. For instance, our cur-rent gas card provider was charg-

ing $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.

Some view the current economic conditions as a

a close look at the follow-ing three areas:

Mitchell Cropp

Dewey Jenkins

To succeed in this economy, we’re taking a three-

GPS service to our Nextel bills. For instance, our cur-

will be you. —Mitchell Cropp

Dewey JenkinsDewey Jenkins

To succeed in this economy,

Weathering the Economic

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. � e person responsible for the job, and therefore the costs, always has the best suggestions for savings and effi ciency.

Second, we’re focusing on our systems and procedures with the goal of making it easier for our customers to do business with us. � is 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. � e result is better service, happier customers and lower costs.

� ird, 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 eff orts to get new custom-ers, 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 off ering service specials and contacting them more frequently. We’re mak-ing a concerted eff ort to let them know that we value their business. —Dewey Jenkins

George F. Wheelock, III

In the 34 years that I have been in the distribu-tion 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 competi-tion. Know what is going on around you. Keep an ear out for news that aff ects your business. Keep up with trade magazines. Rely on your industry associations to help deci-pher all the news coming out of Washington and how it aff ects 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 fl ow” for your business, and understand there is still some business you must turn down! � is 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. � is 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 opera-tions to match sales trends while not losing the capacity for recovery that we all anticipate. Maximizing inventory turns and keeping resources focused on sales eff orts are in everyone’s best interest.

� ese times are the real litmus test of whether the message of your selling proposition is being understood. � is 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. � ose messages need to be told.

� is 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. � e challenge is to develop the next round of answers when we have the least amount of capital and a changing environmental horizon. � e extra degree of diffi culty is a consumer base in need of

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George F. Wheelock, III

In the 34 years that I have been in the distribu-

core businesses were never threatened like they are now.

George F. Wheelock, IIIGeorge F. Wheelock, III

Manufacturing in 2009 is like being one of the

net, you are casting your focus in the exact direction

you do not want to go.

905CSTMAHR14.indd 1 4/22/2009 4:21:18 PM

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real education on our product lines. � ese 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’ consul-tant, not their salesperson or technician. Today’s mar-ketplace is more confusing than ever – tax credits, rebates, green, effi ciency, 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 avail-able today!

Take advantage of the economic stimulus package, federal tax credits and manufacturer’s rebates. � e stimulus package has the potential to be very important for our industry. Educate your residential customers

about the federal tax credits available under the American Recovery and Reinvestment Act of 2009. � e new law makes important changes to existing tax incentives for homeowners who make qualifi ed improvements using high-effi ciency HVACR products and equipment in their primary residences. (See page 6.)

Help your customers achieve “attainable sustainabil-ity.” 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 sustain-ability. Give them heating and cooling options that are not only aff ordable (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.

� is is a challenging time for the HVACR industry

and business at large. � e global economic crisis requires aggres-sive actions and clear prioritization of our

resources.

Like many other compa-nies, we have taken actions

to reduce operational expenses. � ese cost-reduction eff orts have been diffi cult 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 diffi cult times. Internally, we continue to openly share information so employees are best prepared to sup-port 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 confi dent in our strategy of investing in growth and concentrating our eff orts on the key programs where we see the greatest long-term potential for Emerson and our customers. � ese 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.

� ough 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.

You don’t have to be a rocket scientist to know

To be in a good position when the economy bounces

� is is a challenging time for the HVACR industry

Like many other compa-nies, we have taken actions

customers walk through them.

Edgar M. Purvis, Jr.

This year, unlike 2006 and 2007, any

disconnect in resonance will not be

masked by volume of opportunity.

— Dennis Laughlin

905CSTMAHR16.indd 1 4/22/2009 4:22:19 PM

DIAGNOSTIC TOOLS TO MEASURE BUILDING PERFORMANCE

The ENERGYCONSERVATORY

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 FanAccurate, Powerful 2 Channel Digital Pressure and Flow GaugeLightweight, Durable Aluminum Door Frame and Fabric Panel

Minneapolis Blower Door™The Leader in Airtightness Testing

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.

DIAGNOSTIC TOOLS TO MEASURE BUILDING PERFORMANCE

DIAGNOSTIC TOOLS TO MEASURE BUILDING PERFORMANCE

DIAGNOSTIC TOOLS TO MEASURE BUILDING PERFORMANCE

The ENERGYCONSERVATORY

The Original Duct Blaster®

Duct Airtightness Testing SystemThe 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 GaugeFan with flow rings and speed controllerFlex duct and hosesCarrying 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 4/21/2009 5:36:53 PM

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This green technology is beginning to

catch on in the U.S.

By Lisa Murton Beets

Chilled beams have been used in Europe and Australia for approximately two decades

and are just now fi nding their way into the United States marketplace. While chilled beams off er numer-ous benefi ts, their energy effi ciency makes them especially attractive for building owners and facility managers. � ey 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 ceil-ing-mounted diff users operating like fan coils without fans. � ey deliver cooling or heating via circulated chilled or heated water rather than by air. Water is cooled to approxi-mately 59º F to 65º F (or heated to approximately 85º F to 115º F) and is pumped to the chilled beam units. � e lower water temperatures increase the coeffi cient of perfor-mance (COP) of the chiller plant.

Outlook for

Chilled Beams

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 fl ush-mounted in the ceiling or exposed below the ceiling. A third type, multiservice, integrates other build-ing services such as lighting, sprin-klers, detectors, speaker systems, IT

systems, etc. � us far, however, this type has only been used in Europe because pricing-, code- and union-related issues have prevented its use in the U.S.

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 fall-ing to the lower-level occupied zone. � ey have no air supply and therefore require a separate air-handling system to provide ventilation air. � ey are usually best-suited to supplement other ventilation systems for perimeter areas in a building.

Active chilled beams (see Figure 2 on page 21), which also are sometimes referred to as “induction diff users,” 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. Smaller ducts, smaller fans and lower horsepower requirements are all benefi ts of this technology.

Active chilled beams are said to dramatically reduce fan energy. “In the typical offi ce building constructed today – one with a good envelope and

a reasonably effi cient 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 com-pared to a conventional all-air system, because they reduce the amount of air that needs to be circulated,” he adds.

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A linear passive chilled beam diffuser installed in an exposed-mount ceiling application. Photo courtesy of Titus, Inc.

Chilled Beams

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Chilled beams are 2 ft. wide and are available in various lengths, up to 10 ft. � ey fi t into the ceiling like a diff user and the installation is gener-ally straightforward.

Other benefi ts off ered by active chilled beams include quiet operation, few moving parts, lessened mainte-nance requirements and improved thermal comfort due to minimal air fl ow. Because bulky ductwork is not needed, chilled beams have the poten-tial to reduce fl oor-to-fl oor ceiling height by about one foot – which in a 10-story building would save nearly an entire fl oor. 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 radi-ant 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 fi ve years ago,” he says. “In the past, I saw a lot of retrofi t applica-tions, but now we’re seeing new con-struction 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, Affi liated Engineers, Inc., Madison, Wis., says his company started looking at chilled beam systems about fi ve years ago. At

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 offi ce 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.”

Good applications for active chilled beams include the previously mentioned universities and historic buildings, government buildings, laboratories, open plan offi ce build-ings, 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 bul-let,” Benzenhofer says. “� ey 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 underfl oor system with radiant panels might be a better option.”

“Buildings with a high level of humid-ity infi ltration, including old build-ings 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. � is company got into the chilled beam

A linear active chilled beam diffuser with two-way air distribution in an exposed-mount ceiling application (top) and in a fl ush-mount ceiling application (bottom). Photos courtesy of Titus, Inc.

“Active chilled beams stand to reduce fan energy by 65 percent to 85 percent when compared to a conventional all-air system...”

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market several years back and views the technology as one of several tools to achieve energy savings. Its engineers also are working with chilled fl oor, displacement ventilation and other energy-effi cient technologies.

Manufacturers believe that as more emphasis is placed on green build-ings and energy effi ciency, this market should continue to take off . Federal, state and local requirements for energy effi ciency are all putting more pressure on buildings to be more effi cient. 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 fac-tor, manufacturers note that in many cases, the increased fi rst cost of an active chilled beam system can be off -set 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 adjust-ments to the water-balancing valves and primary air-balancing dampers through static pressure readings.

In addition to fi rst cost and life-cycle 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-profi le projects, such as the SmithGroup’s Constitu-tion 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 fl oors of offi ce 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.

“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.”

“Installation is easy,” adds Benzenhofer. “You attach the beams to a hanging sys-tem 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. � ey 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 certifi cation.

“We have a lot of diff erent manufactur-ers 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 certifi cation. All we have are the European standards to go by. An ASHRAE technical commit-tee is in place working on this. It will be an important part in being able to sell these systems and a key factor for gain-ing the trust of engineers and owners.”

� e Engineering Committee of AHRI’s Chilled Beams Section is cur-rently developing a standard for these products. Once completed, the section intends to develop a certifi cation program.

REFERENCES: www.aeieng.com, www.dadanco.com, www.titus-hvac.com

Lisa Murton Beets is a Cleveland-based freelance writer specializing in HVACR-related topics.

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.

“Active chilled beams stand to reduce fan energy by 65 percent to 85 percent when compared to a conventional all-air system...”

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: Affi liated Engineers, Inc.

905CSTMAHR21.indd 1 4/23/2009 4:19:06 PM

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Geothermal Heat Pumps

Geothermal heat pumps (GHPs) have come a long way since they were fi rst

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 multimillion-dollar industry in fact.

According to GHP manufactur-ers, one out of every 38 new homes built in the U.S. in 2008 featured a geothermal system. � at translates into 2.6 percent of all homes; that fi gure was about 0.5 percent just a few years ago. Many factors have contributed to the growth, includ-ing more consumer awareness of the benefi ts of geothermal; increased demand for energy effi ciency and reducing carbon footprint among consumers; technological improve-ments; more experience on the part of dealers and installers; high-quality training opportunities; and refi ned sales tools from manufacturers to their dealers.

Equipment Enhancements

Over the last 10 years, GHP effi cien-cies have gone up dramatically. Some of the technology improvements include variable-speed fan motors, two-stage compressors and advanced controls. � ese all have led to increased comfort, better dehumidi-fi cation 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 indus-try. “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. “� e 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 effi ciency ratings of geothermal heat pumps went from below 20 percent, up to 25 percent to 30 percent. � en 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.

A market whose time has come.

By Lisa Murton Beets

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Hardi

Today’s geothermal systems, using the earth’s natural energy, can heat and cool a home, and provide domestic water heating as well. � ey also can be used in combination with radiant fl oor heating systems, includ-ing systems integrated with solar panels, and can also provide heating for snow-/ice-melting and pools.

� e Environmental Protection Agency (EPA) touts GHPs as one of the “most effi cient and comfortable heating and cooling technologies cur-rently available” and estimates that ENERGY STAR®-qualifi ed 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

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.

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.

The new tax credits apply to equipment installed between January 1, 2009, and December 31, 2016.

Additional tax incentives are available in certain states. For more information, go to www.dsireusa.org.

Contractors who want to download geothermal tax guides to share with their customers may do so by going to www.climatemaster.com/index/tax-information or www.waterfurnace.com/tax_credits.aspx.

Note: A credit of 10 percent of the total investment is also available for commercial system installations.

Tax Incentives for Homeowners Who Install Geothermal

905CSTMAHR23.indd 1 4/22/2009 4:25:25 PM

savings calculator, go to www.water-furnace.com/savings_calculator.aspx.

Replacement Market Is Growing

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 fi rst started out. When new construction dropped off dramatically, Collier’s was at 70 percent new construc-tion/30 percent replacement. Fortu-nately 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. “� e prices are coming down, the equipment is more effi cient, and we as contractors have gotten better and more effi cient. 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 fi ve 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. � is included produc-

ing design software and software for dealers to share with customers showing how the customer would gain “positive cash fl ow” by installing a GHP. � e company representative said, “You can’t even use the term ‘payback,’ because the savings are more than the cost per month to own one. � e software also shows custom-ers how much carbon dioxide they will reduce in hundreds of thousands of pounds over 20 years. We are the only renewable technology that off ers a positive cash fl ow 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 installa-tions to point to and many cus-tomer referrals. Plus, the tools we’ve been given over the last few years make it much easier to explain to customers how geothermal works. � ey also have the Internet, which is where they are often doing their preliminary research and fi nding a lot of good information.”

Looking Forward

As the government continues to demand higher and higher effi ciency ratings, and environmental issues come increasingly to the forefront, geother-mal sits ready and waiting. Recent expanded tax incentives (see sidebar on page 23) should help stoke the fi re.

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 diffi cult economic times.”

Lisa Murton Beets is a Cleveland-based freelance writer specializing in HVACR-related topics.

Figure 1. From left to right: a pond loop, a horizontal loop and a vertical loop.

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Tapping into the Earth’s Energy

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 small-diameter underground pipes. Such systems can be installed horizontally, vertically or in a pond.

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 fl oor of the lake or pond.

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.

2�

905CSTMAHR24.indd 1 4/22/2009 4:25:49 PM

January 25-27, 2010Orange County Convention Center

Orlando, Florida

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

See You Next Year in

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Co-sponsors: Honorary sponsor:

January 25-27, 2010INTERNATIONAL AIR-CONDITIONING • HEATING • REFRIGERATING EXPOSITION

Co-sponsored by:

905CSTMAHR25.indd 1 4/23/2009 4:47:47 PM

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The Montreal Protocol (MP), to which the United States is a party, requires signa-

tory nations to ultimately eliminate ozone-depleting substances accord-ing 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 hydrochlorofl uoro-carbon (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. � is will naturally aff ect 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).

For the time being, these refrigerants will be replaced with hydrofl uorocar-bons (HFCs), which do not contain

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 refriger-ants manufactured before January 1, 2010, as well as reclaimed refriger-ants, can still be used to service existing equipment. How much refrigerant will be available, however, depends in large part on the eff ec-tiveness 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

� e Environmental Protection Agency (EPA) and the air-condition-ing and commercial refrigeration industry agree there will likely be an HCFC shortfall beginning next year. � is 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 refriger-ants. � ey should begin looking at replacement options and prepare for the eventual complete phaseout of HCFCs. � e two main choices most facilities have are to plan to replace the equipment or to retrofi t with an alternative refrigerant that does the same job. � ose who plan for the

Industry Prepares for Next Step in HCFC Phaseout

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eventual absence of HCFCs from the marketplace will be in the best posi-tion to meet this challenge.

EPA Rule in Process

In December 2008, the EPA issued a draft rule governing the sale of equipment precharged with HCFC refrigerants and their blends. � e Air-Conditioning, Heating and Refrigeration Institute (AHRI) and its members had requested the rule in 2007 to close a loophole that would allow foreign-manufactured equip-ment precharged with HCFC refriger-ants to be imported into the U.S. With a new Administration in place, the draft rule is under fresh review, but is expected to be released as a fi nal rule in late summer/early fall 2009.

Since release of the draft rule, the EPA has issued a clarifi cation docu-ment addressing several concerns expressed by aff ected parties such as AHRI and its members. For example, the original draft rule did not contain a “pass-through” provision, leaving manufactur-ers concerned that unshipped or unsold equipment manufactured before the cutoff would be unable to be sold. � e clarifi cation makes clear that the condensing unit of a split residential system is only one part of that system. � erefore, a pre-2010 HCFC-charged condens-ing unit could be installed in 2010 or beyond to “service” the existing split system. � e 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.

“A precharged component manu-factured before January 1, 2010, could be used to service an existing appliance. For example, the regula-tory text for the proposed precharged

appliances rule lists condensing units as a type of component. � us 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.”

Reclaiming Refrigerant

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.

� e EPA requires recovered refriger-ants to be reclaimed by an EPA-cer-tifi ed reclaimer before they can be resold. Certifi ed reclaimers verify the purity of the reclaimed refrigerant by testing it according to the AHRI (ARI) 700 Standard for Refriger-ant Purity. � is provides assurance to contractors and facility managers that those reclaimed refrigerants will not impede the effi cient operation of their equipment. EPA’s list of certifi ed reclaimers is available at www.Phase-OutFacts.org or on the EPA’s Web site.

As supplies of HCFC refrigerants become more limited, reclaiming refrigerants will become more fi nan-cially attractive. � is likely will result in reclaimers off ering incentives for recovered refrigerant. � is should prompt contractors and equipment owners to take steps, such as moni-toring for and quickly stopping leaks and instituting other responsible use measures, to ensure no emissions and the maximum amount available for reclamation.

Understanding that HCFC refriger-ants will be more scarce and therefore more valuable in the near future, facility managers and contractors

might want to manage their existing refrigerant supplies as an asset and consider banking reclaimed refriger-ant for continued use in their facili-ties. Refrigerants can be deposited with an EPA-certifi ed reclaimer that off ers such a banking program. � e reclaimer reprocesses recovered refrig-erant to meet AHRI 700 Standard specifi cations 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, techni-cians and equipment owners about what this means for them. � e site provides information that covers the phaseout schedule, rules and regula-tions, 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 managers can also download a sample refrigerant management plan from the site to help them comply with the latest rules and regulations.

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EPA Branch Chief Julius Banks addresses AHRI members and media about the 2010 HCFC phaseout.

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