December 21, 2016
Vice President-Elect Mike Pence
Presidential Transition Headquarters
General Services Administration
1800 F Street NW
Washington, D.C. 20240
Dear Vice President-Elect Pence:
On behalf of the members of the Air-Conditioning, Heating, and Refrigeration Institute (AHRI), I would like to congratulate
you and President-Elect Donald Trump on your victory in November and introduce you to AHRI and its priorities.
AHRI is the trade association representing more than 300 manufacturers of air-conditioning, heating, commercial
refrigeration, ventilation, and water heating equipment. AHRI is an internationally recognized leader in standards
development and performance certification, and is also an advocate for the heating, ventilation, air conditioning,
refrigeration (HVACR) and water heating industries, both domestically and abroad. AHRI members make a significant
contribution to the U.S. economy and directly support more than 100,000 jobs. When you include those involved in
distribution, installation, and maintenance of the equipment our members manufacture, that number increases to more
than a million jobs here in the U.S.
Regulatory Action
The HVACR industry supports regulation based on sound economic analysis with strong federal preemption and efficient
compliance mechanisms. Despite the industry’s support for the federal system of regulatory preemption, the pace with
which regulations have been issued over the past eight years is unprecedented, and has had a substantial impact on the
industry. Rules are considered major if they are anticipated to cost at least $100 million to implement. From the beginning
of 2015 through the 2016 election alone, the Department of Energy (DOE) issued 11 major rules, several of which impacted
the HVACR and water heating industry. The cost of these regulations is compounded with those from other agencies such
as the Environmental Protection Agency and the Department of Labor that stifle growth and job creation. A study
conducted in 2014 by the U.S. Office of Management and Budget estimated an economic impact of between $68.5 billion
and $101.8 billion in 2010 dollars for 116 rules across government agencies that were considered to be major, significant, or
economically significant. These costs pose a significant challenge for manufacturers as they attempt to remain competitive
and continue to grow.
On several occasions, DOE has itself stated in rulemakings that their regulations create the potential for manufacturers to
move their plants overseas, potentially causing job losses for U.S. workers. Rapid regulatory output in conjunction with the
high costs of compliance makes it extraordinarily difficult for manufacturers to remain viable as job creators and innovators.
To begin rectifying this, AHRI encourages the Trump administration to consider the following:




Require federal agencies to analyze the actual economic and energy use impact(s) of current regulations prior to
proposing revisions.
Rescind the use of the Social Cost of Carbon by federal agencies under Executive Order 12866 and disband the
Interagency Working Group on Social Cost of Carbon.
Restructure DOE’s enforcement program to focus on actual violations of products in the marketplace that do not
meet the federal minimum efficiency standards rather than the current practice of administrative filing and
certification violations.
o Encourage DOE to leverage existing private sector conformity assessment activities in compliance with
OMB-Circular A-119.
Modify current DOE test procedures as needed to reflect industry recognized and respected consensus standards
as required by OMB Circular A-119.

Require DOE to follow its own Process Rules when establishing new or revised energy conservation standards for
covered equipment.
Of great concern to AHRI are the analyses used by DOE to determine whether minimum energy efficiency standards meet
the twin tests of economic justification and technological feasibility set forth in the Energy Policy and Conservation Act of
1975 (EPCA). Ignoring proper analysis methods can result in poorly constructed rules that place an undue burden on small
businesses with wide-ranging ramifications for our industry and the 1 million employees who depend on it. Such a robust
process of justification and analysis was envisioned by Executive Order 13563, which was designed to improve regulation
and regulatory review across the federal government.
AHRI urges the Trump Administration to carefully review the following energy conservation standards promulgated at the
end of the Obama administration to ensure that the data used to determine if the rules met the tests of economic
justification and technological feasibility were accurate and based on replicable, sound analyses. In instances where this is
not the case, AHRI asks that the Trump administration revisit the pending rules and issue new SNOPRs, or work with
Congress to take legislative action where appropriate:




Residential Furnaces, SNOPR issued September 23, 2016
Commercial Packaged Boilers, NOPR issued March 24, 2016
Commercial Water Heating Equipment, NOPR issued May 31, 2016
Walk-in Coolers and Walk-in Freezers, NOPR issued September 13, 2016
For the following test procedures, the Trump administration should take action, with a proper awareness of manufacturer
impact, to align them with those developed through industry consensus standard:.



Residential Central Air-Conditioners and Heat Pumps, Final Rule pre-published on November 30, 2016
Consumer and Commercial Water Heaters, Final Rule pre-published on December 6, 2016
Walk-in Coolers and Freezers, Final Rule pre-published on December 2, 2016
Congressional Action
Congressional action should be taken to enable U.S. industry to solidify its position as the global leader of innovation, job
creation, and production of energy efficient products and equipment. The industry encourages the following actions in
pursuit of that goal:





Submit the Kigali Amendment to the Montreal Protocol on the use of hydrofluorocarbon refrigerants to the Senate
for ratification.
Modernize and reform the Energy Policy and Conservation Act.
Lower tax rates on corporate and pass-through business income to foster economic growth and increase
competition.
Shorten the depreciation period for HVACR and water heating systems to more accurately reflect the lifespan of
equipment and to incentivize the replacement of older, less efficient equipment.
Allow for the full expensing of HVACR and water heating equipment under IRS Code Section 179.
Further, AHRI, as well as the HVACR industry at large, firmly support a number of current programs and regulations that
bring predictability and consistency to our marketplace. The following programs and regulations are critical to the
continued success of the industry, as well as the broader economy.


Maintain the Environmental Protection Agency’s (EPA) Significant New Alternatives Policy (SNAP) program as
established under Section 612 of the Clean Air Act. The EPA’s ability to list alternative refrigerants by issuing new
rules and maintaining previous rules continues to allow for flexibility in our members’ product designs while
pursuing health and safety for consumers in the marketplace.
Preserve DOE rules reached via a negotiated rulemaking process such as the 2009 Energy Conservation Standard
for Walk-In Coolers and Walk-In Freezers and the 2016 Energy Conservation Standards for Residential Central Air
2111 Wilson Boulevard | Suite 500 | Arlington | Virginia | 22201-3001 USA
PHONE 703 524 8800 | FAX 703 528 3816 | www.ahrinet.org
Conditioners and Heat Pumps.
With the administration’s support on the aforementioned priorities, the HVACR and water heating industry will
undoubtedly see improved growth in the United States. AHRI looks forward to fostering a collaborative relationship with
the incoming administration and all stakeholders involved in our industry.
Respectfully,
Stephen Yurek
President & CEO
2111 Wilson Boulevard | Suite 500 | Arlington | Virginia | 22201-3001 USA
PHONE 703 524 8800 | FAX 703 528 3816 | www.ahrinet.org