Monday, June 27, 2011

Regulation - With Moderation?

Over the past few years, there has been a marked increase in the amount of regulatory involvement by state and federal agencies as it relates to the HVACR industry. I don't necessarily think that's a bad thing. Certainly too much regulation can hamper productivity and potentially thwart business growth - but in our trade, one of the long-standing knocks has been the LACK of equality in terms of regulation. By that, I mean that the lack of national standards or guidelines has resulted in a pathwork quilt of regulations that varies from state to state - and in some states, from county to county or even city to city. And that's something that in the long-term, could seriously stunt and hamper the growth of our industry.

There is no question that the current administration is looking for more ways to promote energy-efficiency and create "green" jobs concurrently. With heating/cooling systems serving as the single largest user of energy in our homes and businesses, the focus over the past few years has been to push initiatives that will makes this equipment more efficient. It also explains why initiatives such as the $1,500 Energy Star tax break and other incentives have been cornerstones of these programs. There certainly is some correlation to the fact that homeowners can receive a rebate good for 30% of the total cost - with no upper limit - on the installation of a geothermal heat pump and the significant growth that sector is seeing right now. And the new Energy Star requirements for furnaces, heat pumps and air conditioners certainly will present new opportunities - and potential headaches - for HVACR contractors and technicians in North America.

But at the end of the day, the training and education that HVACR professionals receive will dictate just HOW efficient these systems are. As more than one OEM executive has shared with me, "we can design equipment to be 20-SEER-plus efficient...but if the installer doesn't put the equipment in properly, or if the ductwork isn't properly installed, that efficiency is never going to be realized."

That brings me to my point. Too much regulation is harmful, and can decimate an industry (just ask railroad executives who were around in the 1970s how good things were for them then before deregulation under the Staggers Rail Act helped them level the playing the field with trucks driving over federally subsidized highways). But not enough regulation can open the door to inefficiency, poor workmanship, disgruntled customers and put a black eye on an entire trade.

In March, the Iowa Department of Public Health's Plumbing and Mechanical Systems Board announced that it found RSES' Certificate Member Specialist (CMS) and Certificate Member (CM) designations acceptable for satisfying the state's educational training requirement to obtain its Service Technician HVAC Specialty License. Certainly from RSES' perspective, it's exciting to see a state body value the training and education needed to pass a CMS or CM exam, and allow it to serve as a means of qualifying licenses for HVACR professionals.

But my question is, why does Iowa require this degree of education and training, but if you live across the Mississippi River in Illinois, all an individual must do is pass an EPA 608 test to handle refrigerant - and that person is now somehow qualified to work on any piece of HVACR equipment in the state? THAT is the larger issue that regulation must look to address. RSES is working closely with partners such as NATE, HARDI, ASHRAE, ACCA, PHCC, NEBB and other organizations to raise awareness to the fact that while equipment may be extremely efficient, it still takes well-trained people to install that equipment properly and allow it to operate in the manner in which it was designed.

Too much regulation has the same effect as a micromanaging boss - it makes us nervous, uncomfortable and unsure as to just how we are supposed to operate on our own. But too little regulation leaves much to be determined by individuals who may or may not be qualified to make decisions that can seriously impact the efficiency, air quality and even health of people everywhere. A little regulation, with a touch of moderation, might go a long way to having every state be a little more like Iowa.

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