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Last week, the U.S. Department of Energy (DOE) released its long-anticipated guidelines for state energy offices to implement the Inflation Reduction Act's residential rebate programs. Together, the (newly renamed) Home Efficiency Rebates Program (HOMES) and Home Electrification and Appliance Rebates Program (HEEHR) are expected to deliver $8.8 billion in rebates for residential energy efficiency improvements, mostly targeted to low-to-moderate income households. Read more in ACCA's member-exclusive IRA Resource Center.
With rebates up to $14,000 and 100% of improvement cost, these programs could greatly expand the home performance market. That's a huge opportunity for savvy contractors but will likely attract new competition. In fact, program documents explicitly list Home Depot, Ace, and Lowes as key implementation partners.
Technologies like heat pumps can be complex. Without attention to proper training and quality installation, ACCA is very concerned that inexperienced installers will undercut quality contractors and leave consumers with systems that raise their energy bills while making their homes less comfortable – a black eye for our industry. That's why ACCA has been working with its state and local Allied Contracting Organizations (ACOs), the National Association of State Energy Officials (NASEO), and the Air-Conditioning, Heating, and Refrigeration Institute (AHRI) to ensure that these programs prioritize quality installation and support contractor-led training efforts.
Now that the DOE has released its guidance, state energy offices have until January 2025 to submit their program designs. Some states – notably Florida – may choose not to participate, but most are expected to submit their programs within the next 60-90 days, making this a critical period for contractors and ACOs to weigh in on what these programs should look like.
ACCA has developed two documents to support quality program design:
Guidelines for Residential Heat Pump Initiatives – ACCA's Products Committee developed these guidelines to help states understand the complexity of heat pump system design and design contractor-friendly rebate programs. Please share any comments you may have on this public draft with David Bixby.
ACCA's Proposed Program Element: Quality Installation Certificates – Adherence to the ANSI/ACCA 5 Quality Installation standard has always been difficult to verify and incentivize at scale – until now! ACCA recently re-launched its Quality Installation (QI) certificates with verification using smart diagnostic tools through the measureQuick® app. ACCA's proposal to NASEO suggests prioritizing HVAC installations verified by an ACCA Quality Installation (QI) certificate. Learn more at www.acca.org/prove-it.
Products Committee co-chair Eric Woerner from A1 Mechanical of Dayton and four members of the ACCA staff presented these resources at a July 11 meeting co-hosted by AHRI and NASEO and attended by about half the state energy offices.
As this battle shifts to the states, ACCA's state and local Allied Contracting Organizations will be critical allies in seeking contractor-friendly program design and giving quality contractors the inside scoop on implementation plans. In fact, the DOE guidelines say that "States are strongly encouraged to establish partnerships with and provide funding to" entities, including "contractor organizations." IRA experts Maddie Koehler of NASEO and Cynthia Adams of Pearl Certification briefed ACCA's ACOs at the ACCA 2023 Conference and we're working to schedule a virtual update now that guidelines have been released.
There is reason for hope that our message is getting through! The DOE guidelines require states to submit a "Consumer Protection Plan" that must "establish minimum quality installation standards" and establish "QA processes that allow the state to verify and document whether installation standards have been met."
We'll also need to work to fend off burdensome requirements. While the law itself makes no mention of union-backed prevailing wage rules for HOMES and HEEHR, the DOE guidelines require a Community Benefits Plan that "might include" provisions such as "paying at or above local prevailing wages."
ACCA will continue analyzing and developing materials regarding the new DOE Guidelines and the related contractor training grants announced by DOE a week earlier. In the meantime, it's important to remind your customers that even the most aggressive states will unlikely have programs available to consumers until 2024. ACCA's IRA Resource Center has information about the greatly enhanced 25C, 25D, 45L, and 179D federal tax incentives available today for residential and commercial customers at all income levels in all 50 states.
Congressman Lloyd Smucker (R-PA) recently reintroduced the Main Street Tax Certainty Act in the House. You might have seen that Senator Steve Daines (R-MT) already reintroduced the bill in the Senate. This important legislation would make the 20 percent 199A deduction of Qualified Business Income for small businesses structured as 's-corporations' or 'pass-through entities' permanent. 199A provides greater tax parity between small businesses and typically larger 'c-corporations.' The deduction is currently set to expire at the end of 2025. Please take a moment to participate in ACCA's Main Street Tax Certainty Act Action Alert to let your elected officials in Congress know why they should support the bill.
If you have questions about the Main Street Tax Certainty Act or any of ACCA's advocacy efforts, email Chris Czarnecki, ACCA's director of government relations & advocacy, at govt@acca.org or call 703-575-4477.
ACT NOW! Support SMART Energy Efficiency Standards
By now, you've probably heard about the Department of Energy's regional energy efficiency standards. And if you live in the Southeast or Southwest, you've probably already been affected by them. This policy has caused the HVAC industry needless confusion and headaches by using the date of installation as opposed to the date of manufacture when deciding what systems you can legally install. As a result, distributors and contractors in the southern regions who are affected by this policy have been left with 'stranded' equipment that's illegal to install in their regions, but perfectly good in the north. It's not all bad news, though. Congresswoman Debbie Lesko (R-AZ) recently reintroduced the SMART Energy Efficiency Standards Act. This bill would simply amend the date that furnace, central air conditioner, and heat pump manufacturers must comply with regional energy efficiency standards from the date of installation to the date of manufacture. It really is that easy. You can do your part today by taking action to let your Representatives in Congress know why they should support bill H.R. 4378 and how important it is to your business.
If you have questions about H.R. 4378, the SMART Energy Efficiency Standards Act, email Chris Czarnecki, ACCA's director of government relations & advocacy, at govt@acca.org or call 703-575-4477.
TAKE ACTION
One of my first promises when I became Governor was to pass legislation to protect Michiganders from the dangers of distracted driving. Last week, we delivered on that promise when I signed a package of bipartisan bills that will reduce crashes and save lives.
These bills will ban the use of a phone while driving, including sending texts, watching or recording videos, or engaging with social media. This will reduce distracted driving crashes that have taken too many lives across Michigan. Too many Michiganders have lost loved ones to distracted driving, and everyone should be safe on their way to school, home, or work.
So far this year, we have had 322 deaths on Michigan roads. Last year, 1,120 died on Michigan roads. Young drivers accounted for 8% of all drivers involved in fatal crashes in 2018, even though they were only 5.3% of all licensed drivers.
That's unacceptable. Our goal is to get to 0 traffic deaths by 2050.
This legislation will make a real difference in working towards our goal by:
Every driver in Michigan knows that their attention must be on the road—not their phone.
Let's keep working together to make our roads safer for everyone.
Sincerely,
Gretchen Whitmer Governor
Free Webinar M 31st Noon - 1 p.m.
Registration ends May 30th
Register Here
The industry has moved from gauges to Smart Probes and Intelligent Apps that go beyond the measurements to providing system targets and in-depth diagnostics.
Multiple studies have found that 70-90% of Residential cooling systems have at least one fault, add duct leakage increases, this increases to 90–100%. This poor performance creates comfort issues, wasted energy (including water as an energy source) and cost society billions each year. Are techs finding the issues and correcting them and leaving them?
These faults can be significantly reduced and eliminated with prober design and commissioning and confirming the actual measurements - not pencil whipping!
This session will cover the tools, apps and standards for proper compliance including ACCA Quality Installation (QI), Energy Star Verified Installation (ESVI), and the similar pathways for Energy Star, DOE Zero Energy Ready Certification which may net Inflation Reduction Act Tax Credits.
Bonus - We will discuss how this fits in with the LEED for Homes Rating Systems requirements and align with the 310 standard.
Join us for a conversation on the new path for compliance as we cover the options from verifying the HVAC operation to full system commissioning.
Continuing Education Units (CEUS) 1 hour in
Speaker
Joe Medosch {med-osh} - Client Success Manager for measureQuick, Owner of Energy & Environmental Consulting. He is an Industry Master Trainer, national presenter, and his diverse background in multiple trades provides a unique understanding of "The House and occupants as a System." Joe has been evaluating homes for 20+ years and has been a Comfort Consultant /Trainer for over 15+ years providing solutions on Healthier/Energy Efficient Home Performance and co-creator of Retrotec rCloud app.
Certifications / knowledge base and committees include: Board Member on Healthy Air Research and Certification Authority (HARCA), ACCA, IAQ/IEQ assessments, ICC, BPI, RESNET, SMACNA, ASTM ...
L essons Learned
1- Explain that existing gauges to measure refrigerants are outdated, they release global warming refrigerants, and cause cross contamination in units. How does this comply LEED V4BD+C & V4.1 Residential EA Prereq Minumum Energy Performance?
2- Identify that Smart Probes are only a smart as the Intelligent Apps that interpret the measurements
3- Name 2 standards for compliance and how to implement them and how it will comply LEED V4BD+C & V4.1 Residential EA Prereq Minumum Energy Performance?
4- Review are the only adjustable parameters or settings in a standard AC system? How does it align LEED V4BD+C & V4.1 Residential EA Prereq Minumum Energy Performance?
REGISTER HERE
Dear BCC Stakeholders and LicenseesThe Skilled Trades Regulation Rules under 2016 PA 407 will take effect May 3, 2023, and will be posted at Skilled Trades Regulation Rules that same day. Significant changes of note are the following:
· Fee changes for boiler licenses, permits, inspections, and certificates of operation.
· Fees are now required for license verifications and license reprints.
· License renewals submitted 60 days after expiration are subject to a $100 late renewal f ee.
· Examinees must score 75% to successfully pass an examination.
· If a qualifying licensed individual ceases to represent the associated electrical or plumbing contractor, the contractor license will summarily be suspended until another qualified licensed individual represents the contractor.
· Boiler codes are updated to the following editions:
· Exams are now required for each registration to become a code official, inspector, and plan reviewer.
Please contact the Boiler Section at bccblr@michigan.gov for questions concerning the boiler code, permits, inspections, and certificates of operation.
Please contact the Licensing Section at lara-bcc-licensing@michigan.gov for questions concerning license exams, renewals, reprints, and verifications.
I want to thank all of you that provided feedback and assisted us with developing these rules. Your time and devotion are greatly appreciated.
Andrew Brisbo, Director
Bureau of Construction Codes
Join SBAM and our expert partners to learn how to reduce your cyber attack risk and find the right cyber liability insurance coverage. SBAM Approved Partners, RiskAssure, SensCy and MAIA Insurance Services will review important details about the challenges small businesses are facing and offer solutions.
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MAIA Insurance Services: Educates you on cyber liability insurance and connects you with several carriers to ensure your company obtains accurate, affordable coverage.
Thanks to MIACCA's persistence in making these reports public through the Michigan Public Service Commission ("MPSC"), Consumers Energy & DTE have submitted their 2022 Value Added Program and Services ("VAPS") annual reports to the MPSC.
2022 Consumers Energy VAPS Report.pdf
2022 DTE Electric VAPS Report.pdf
2022 DTE Gas VAPS Report.pdf
