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Agenda for First Meeting of the HVAC Working Group

By Bryan Ortiz,2014-05-19 16:05
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New Public-Private agreements to establish market motivators and methods to ensure that quality control for replacement and maintenance of air conditioning

    thOctober 5, 2007 Meeting Notes

    For the First Meeting of the HVAC Big and Bold Group

Intro- Mike Messenger welcomed every one to the meeting and laid out the challenge:

    Produce a strategic plan in 90 days or less that develops strategies to address a

    number of HVAC installation and performance problems identified through the

    big and bold energy efficiency workshop process. The group agreed to give its

    best shot.

I. Review of Mission Statement- A proposed mission statement was sent to the group

    before the meeting. The group suggested several changes to the proposed mission

    statement to broaden the scope of the group’s review and to add the task of

    developing a vision for the HVAC industry. The revised mission statement is shown

    below.

    “The HVAC working group will develop a suite of strategies to reduce the energy

    and peak use associated with the design, selection, installation and maintenance of

    new central air conditioning systems and recommend demonstrations or tests for

    some or all of these strategies. The results of its initial work will be included in

    the CEC’s strategic plan to the Legislature and provided to the CPUC and its

    utilities to help guide their strategic planning process. ”

Mike Messenger clarified that these pilot tests or programs should be designed to be

    finished within the next 18 months to be consistent with the goal of having successful

    pilots incorporated into the utility program portfolios, industry practice and local

    building departments by the first half of 2009. These pilots will be designed to test

    the effectiveness (cost, energy and savings, and feasibility) of each strategy and to

    support the vision of a rebuilt HVAC industry that renews its commitment to

    customer service and quality installations. The group also discussed that the Main

    focus of the group’s work is on residential and small commercial applications for

    units up to 20 tons with SEER and EER ratings

II. . Discussion of Strategies to Explore

The group discussed each of the six strategies listed below and agreed AFTER

    DISCUSSION they all should be explored.

    1. New mechanisms to develop private-sector based business initiatives to

    successfully encourage installers to pull building permits for replacement of

    existing HVAC systems and comply with energy standards requirements that

    ensure quality installation via duct sealing and refrigerant charge.

    2. New Public-Private agreements to establish market motivators and methods to

    ensure that quality control for replacement and maintenance of air

    conditioning systems becomes a consistently delivered service to customers

3. New strategies to reduce the cost and reduce the time needed and make it

    easier to pull permits for HVAC replacement

    4. Technologies or mechanisms that customers or contractors can use to monitor

    HVAC system performance levels over time

    5. New technologies that will automatically perform diagnostic tests on systems

    over their useful life and provide warning signals for detected performance

    problems to the homeowner or contractors or both.

    6. New technologies to shift the timing of energy required for cooling systems

    from on peak 12 to 6 PM to off peak ( nighttime).

In addition the group added the following strategies for inclusion in the report

    a. Consideration of new training to get HVAC sales reps to sell CAC

    systems based on system performance rather than SEER ratings,

    potential use of CEE Tiers 1 and 2 or new tiers and to train HVAC

    technicians on how to balance systems and test for duct quality.

    b. Consideration of methods to reduce the load on HVAC systems

    through better building envelopes and reduction of the air side load of

    moving air through ducting systems.

    c. Consideration of demand response or curtailment applications for

    HVAC systems

    d. Consider more emphasis on the new technologies strategy ( P

    Kuhlman) - 20% improvement could occur if strategies 1 and 2 are

    adopted- versus 80% for strategy 4 new technologies.

    e. Strategies available to manufacturers and distributors to encourage

    high quality installation including:

    i. Withholding warrantees for low quality installations for jobs

    that have not been quality controlled.

    ii. Refusing to sell to installers/ distributors who don’t have

    trained technicians that pull permits.

    iii. Providing discounts on equipment where contractor guarantees

    that quality control checks will be completed for every job.

    iv. Recognition of contractors with high quality install reputations

    or based on sample of their work.

    v. Development of a brand name associated with high efficiency

    and quality.

    II. Discussion of Draft Outline and Literature Search-

    Mike Messenger went through the main headings on the outline and asked for

    comments or omissions.

    The following additions were suggested:

    1. Add a Vision section and describe the elements of a better future; include

    some specific milestones for 2010, 2015 and 2020 per the CPUC order.

    2. Discuss the energy and peak implications of continuing with the status quo in

    this market in the background section.

    3. Involve and discuss the role of CALBO and Contractors licensing board in

    whatever strategies the group develops.

    4. A revised outline is attached.

    III. General Discussion- Why don’t Installers comply with T24

    1. A. Discussion of the Prisoner’s Dilemma for HVAC contractors in the

    replacement market.

    This is a case of the 'prisoner's dilemma' (familiar to economics students):

    *If all contractors pulled permits and did good work, they would all benefit with

    higher pay, and so would society because of higher quality control and lower energy

    bills.

    *If a few contractors don't get permits, the few benefit but undermine the sales for

    all of the contractors who do get permits.

    *If no one get permits, they all undermine each other due to lower profit margins

    and reputation , plus society loses ( from higher energy use) . This is close to the

    actual case for replacements.

    The prisoner’s dilemma is: Should I get a permit if I know or suspect that even a few

    of my competitors are not going to pull permits and are not likely to be caught?

    Pulling a permit will result in lost sales UNLESS a contractor has reasonable

    assurance that his competitors will also pull permits. The only solution from

    economics is to enact laws that ensure a high probability that each contractor will

    comply and thus give all contractor’s an incentive to pull permits and or perform high

    quality work to get to the goal of performing good work and higher profits. Our

    group needs to increase both the number of installers doing quality work and the

    perception in the industry that it is bad business not to comply

    III. Areas where more information needs to be collected.

    1. What are the average energy and peak impacts of a failure to perform the duct

    sealing and refrigerant charge checks post installation of a CAC system in an

    existing home (vintage 1960-1995)?

    2. What is the State of the art for on board diagnostic equipment built into

    HVAC equipment that can detect improper refrigerant charge and or air flow

    across the condenser problems?

    3. What Methods or techniques exist to provide feedback to customers on quality

    of installations performed at their homes and actual impact on energy bills? 4. What fraction of current CAC sales include a Maintenance contracts in current

    market? How much incremental energy performance is gained on average

    from a maintenance contract tune ups? Will automated diagnostics interfere

    with this market?

    5. What types of education or marketing campaigns are needed to empower

    customers to care about the energy performance of their systems and or to

    value the pulling of a permit? To get customers to take action to get their

    homes tuned up every five to ten years?

    6. What fraction of the current HVAC technician force have received NATE

    training or certification?

IV. Organization and Next Steps- Research needed

    The group created the following sub committees with list of persons interested in

    each topic. Mike Messenger has identified possible team leaders in bold. If any

    leader wants to decline the invitation to be leader, please call Mike Messenger..

    Sub Committee Topic Team Members 1. Develop Market based incentives for Team Leaders= Bill Pennington and contractors who comply with the code and Susie Evans , ( potentially Bob Wiseman) use quality control procedures after the

    installation of a CAC system that are Team Members-Eric Emblem, John verified and reported to distributor or Burdette, Paul Kyllo, David Canny and manufacturer. The Goal is to increase Lyman Lockwood, James Hussey recognition and value of work performed

    by contractors who meet quality control

    specs and code by encouraging distributors

    and manufacturers to provide them with

    better business terms or to refuse to deal

    with contractors who do not meet code.

    2. Development of new Tier or Brand to Team Leader- Marshall Hunt identify CAC systems that have higher

    operating efficiencies and a track record Team Members-Bill Pennington, Paul of high quality installation- Alternatives to Kuhlman, John Burdette, Dick Bourne,

    selling based on SEER levels for existing John Proctor (?), Iain Walker (?), Robert

    and new cooling system technologies Davis (PG&E Test Labs) Paul Kyllo, Rick

    Kallett,

    3. Increased training for HVAC techs and Team Leader- Charles Segerstrom, sales representatives to increase quality Team Members- Susie Evans, Eric installations and permit pulling Rmblem, Kristin Heinemeier, and Rodney

    Davis, Scott Johnson, Doug Beaman, Rick

    Kallett,

    4. Providing Periodic Feedback on CAC Team Leader- Mike Messenger System Performance to Customers and Members-Susie Evans and Marshall Hunt, Contractors

    5. Education campaign on need for Team Leader- David Canny, customers to perform preventative Members- Kristin Heinemeir, and Rodney maintenance on HVAC systems Davis, and Shea Dibble 6. Reduce the cost or burden of compliance Team Leader- Doug Beaman, with pulling permits for HVAC Members- Bill Pennington, Charles replacements Segerstrom, Eric Emblem and Randall

    Higa, Bob Guenther? 7. Identify opportunities to develop new Team Leader- John Proctor-

    technologies that are optimized for Hot Dry Team Members- Paul Kuhlman, Edwin climates in the west, permanently shift load Hornquist, and Paul Kyllo and or are demand responsive.

    8. Discussion of the Status Quo trends in Team Leader- Bob Wiseman and Mike industry, its likely economic and energy Messenger consequences and the group’s resulting Team Members- John Burdette, Susie

    Vision for where the industry should go to Evans, Marshall Hunt, Bob Wiseman and

    mitigate or eliminate the negative Paul Kuhlman. Bob Guenther? consequences identified above.

V. Next Steps- Mike Messenger will try to recruit leaders for each subcommittee and get

    them to help organize calls to reviewing draft outlines and strategies to be discussed by

    each subcommittee: A general outline for each subcommittee is provided below:

    I. Statement of the Problem or Opportunity that the Subcommittee is

    wants to discuss and develop strategies for.

    II. Description of Strategies developed by the subcommittee

    III. Identify what is needed to flesh out or develop the details of the

    strategy. Examples might be information, test data, participants

    from outside our group, key industry participants, written

    agreements. Etc.

    IV. Ideas for pilot testing the strategies using local governments or

    utility programs

    V. Summary of anticipated costs and benefits of the strategy if

    adopted and successful.

    VI. Recommended next steps to get specific strategies tested.

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