What the HVAC industry is saying in D.C. — Part 2: Electrification

Hi, Alec again. 

HVAC industry associations — PHCC, HARDI, and AHRI — two weeks ago flew to D.C. to advocate for contractors, distributors, and manufacturers, and I received an invite from PHCC. 

Refresher: The goal, by sharing feedback with policymakers’ staff, was to ensure policies on electrification and labor are practical, considering their impacts on the industry and consumers.

Following last week’s part one of our two-part series, here, in part two, are my meeting notes on electrification:

#1: Natural gas, the industry argues, plays a critical role in the clean energy transition. Moving to a clean energy economy is necessary, but banning gas to get there, as some states have tried, is the wrong way to execute, PHCC says. 

• Electrification mandates would require retrofitting existing homes, but the problem is that heat pumps, for example, aren’t always the best comfort solution based on a home's age, structure, or location. 

• Their high upfront costs also pose concerns. Bradford White’s Bob Wolfer noted that most Americans can’t afford mandatory retrofitting without government subsidies, which will eventually run out.

• And there’s worry about jobs. One contractor said, “40% of my business is gas piping. If gas gets banned, I’ll lose 40% of my employees — and gasfitters aren’t going to become electricians.”

• The takeaway: PHCC members support a clean energy economy but want to see fuel choice remain in place throughout the transition. 

Of note: In a pre-meeting presentation, PHCC’s Mark Valentini highlighted surprising data on energy consumption and carbon emissions (p. 48 and p. 224 below).

• Since 1975, US residential energy consumption has been flat, and since the mid-2000s, residential carbon emissions, including those from natural gas, have actually declined. 

• (Monthly Energy Review)

#2: The Inflation Reduction Act (IRA), contractors agreed, has fundamentally good intentions. However, feelings toward the current logistics of its rollout aren’t all positive. PHCC members wish the Energy Department asked for their input much earlier in the drafting process. 

• It would be great to have answers for a handful of questions surrounding its two rebate programs, says PHCC’s Chuck White, including: How exactly will contractors receive rebate funds? What does a “qualified contractor” mean?

• Most are confident the rebate programs will positively impact the industry, but eventually, funds will run out, raising questions about what happens then. One example: What happens to homeowners who make energy-efficient upgrades right as the funds run out, and can’t receive their rebate?

• The takeaway: The industry supports the IRA, but wants more transparency and communication from the Energy Department to ensure a practical rollout for all parties, including contractors and consumers. 

The bottom line: “[Contractors] understand their responsibility as stewards of the environment and the need to reduce carbon emissions… Our customers live and work in buildings of various sizes, ages, energy sources, and materials across a variety of climates… Based on those factors… Policies should focus on reliability over electrification,” PHCC writes.