Arkansas HVACR NewsMagazine January 2024

Published by Arkansas HVACR Association

News Magazine January 2024

Arkansas’ First and Only HVACR NewsMagazine


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Energy Code


















Tech News Dehumidifiers and Install Applications (Tom Turner-Air Evangelist) 410A Phase Down Update (Bryan Orr - HVAC School) Top 10 Gas Pack Problems (AC Service Tech, Craig Migliaccio)

Going Commercial How to Get Your Contractor’s License pg 10

PG 27

PG 30

PG 36

Troubleshooting 90+ (Byan Orr - HVAC School)

PG 45

By Arkansans

For Arkansans

News Magazine January 2024

Table of Contents

Editorial & Opinion Can It Get Worse

pg 3

Feature Story

PG 10

Going Commercial

State, national, chapter news New Rules Make Transition from 410A Equipment Easier Kyle Schnebelen — Bonds, Not Barry, Not Bail, Just Surety Kirks’ Corner: New Year — New Ways to Increase Sales

PG 14

pg 20

pg 23

Education News Training Programs

PG 24

PG 22

DTV, Duct Test Verifier, Train the Trainer for College HVACR Instructors

Tech News

PG 27

Dehumidifiers and Install Application (Tom Turner – The Air Evangelist)

PG 30

410A Phase Down Update (Bryan Orr - HVAC School)

PG 36 pg 30 PG 33 pg 36 PG 45

Top 10 Gas Furnace Package Unit Problems (AC Service Tech, Craig Migliaccio)

Troubleshooting 90+ Gas Furnace (Byan Orr - HVAC School)

HVACR NewsMagazine January 2024

that is a long way off. True, but this year, 2024, the levels will drop 40% from the 2022 levels. Putting it in a contractor’s world, if you used 10 drums last year, you will on have 6 available by 2025. I used that date because I am not sure how the actual reduction will take place. You get the point. Servicing the systems you installed over the last 10 years is going to get tough. In fact, it will probably put some homeowners in a difficult position. Do they pay the escalated price of 410A or do they replace their system that is only 5 to 10 years old. Now that sounds like an opportunity for sales; however, what about the customer. Some may still be paying on that system you installed. Excuse the grammar, “But ain’t that a bird dog?” When you get to that point, the A2L systems will be on the market and that will certainly be the best decision. In fact, it will be the only decision. A2L refrigerant will require some upgrades on your tech’s truck; i.e., gauges, recovery machine, vacuum pumps, and leak detectors. Actually this is a good time to train your guys and implement better recovery practices that will save you lots of time. I recommend

Can It Get Worse??

I really don’t mean to be so negative ;but, my gosh, how much can they load on the shoulders of the HVACR industry. We all thought that SEER2 was going to do us in and we survived. Now we see that was only the beginning. Now we have to deal with A2L systems, diminished supplies of 410A, IRA programs that may or may not be adopted in Arkansas, and on again off again adoption of a new Energy Code. Now look, I do not believe that anyone is malicious or has malintent. I just believe that there are too many balls in the air for anyone to juggle. 410A: Bryan Orr’s article on 410A Phase-Down is worth keeping on your computer. It is thorough and to the point. As his article showed, 410A refrigerant is on the way out. The quotas for refrigerant mfgs dropped 10% in 2023 and will drop another 30% in 2024. It will drop another 30% in 2029. So from the 2022 levels, mfg will be down by 70% in 2029. OK,

HVACR NewsMagazine January 2024

that you download this website with Jim Bergmann.

speak with your supplier. – Meaning ask lots of questions and get a flyer, mailer, or email to make sure you heard correctly. Since I am not a dealer, I only get this second and third hand. Then I try to flush it out for the truth. This I do know, several manufacturers are already promising / predicting their A2L systems to roll out the second or third quarter of 2024. A new rule, The Technology Transition Rule, had specified a January 1, 2025, hard stop date for the installation of new split system heat pump and air conditioning systems. This interim rule will extend that by one year, allowing the industry to install equipment manufactured before January 1, 2025 to be installed until January 1, 2026. This should eliminate the pressure and transition worries. IRA rebates: We started beating the drum about the Inflation Reduction Act back in October o 2022. Everything seemed simple except we needed to be sure the home was a good application for a heat pump. While that is still true, with or without a rebate the time line is up in the air. Basically, • Energy.Gov says that Arkansas MAY receive a total of $105,172,730. That is broken up into $52,739,720 for the Home Energy Performance-Based, Whole-House Rebate Allocations and $52,433,000 for High Efficiency Electric Home Rebate Allocations. One Good Thing cSEeLXAI Jim has several YouTube videos on the subject but this one is concise yet thorough. He has one that is over an hour for those that really want to dig deep. A2L Systems: Every equipment manufacturer is beginning the transition to A2L refrigerants. Your concern will be how to transition at your company. Between now and the time A2Ls systems are widely available, you’ll still be selling 410A systems. That means you’ll need refrigerant. Don’t know how much, but everyone anticipates a price increase in 410A. Regardless of the price, availability for line sets and service is important. No, it’s critical. One company, is promising their dealers to set aside a jug of 410A when they buy a system. Now, that is what I heard from a distributor; however, surely they cannot do a one for one. I need to get more information and you should drive to the fact territory when you

HVACR NewsMagazine January 2024

Programs that the states MAY implement include: • The Home Energy Performance-based, Whole House rebates (HOME Rebates) for: o Rebates for energy efficiency retrofits range from $2,000-$4,000 for individual households and up to $400,000 for multifamily buildings. o Grants to states to provide rebates for home retrofits. ▪ Up to $2,000 for retrofits reducing energy use by 20 percent or more, and up to $4,000 for retrofits saving 35% or more. ▪ Maximum rebates double for retrofits of low- and moderate income homes. • The High Efficiency Electric Home Rebate Program to:

o Other eligible rebates include electric stoves and clothes dryers, and insulation/air sealing measures.

I want to make my home and appliances more energy efficient

Households can access a tax credit to cover up to 30% of the costs for certain efficiency improvements. • Families can claim up to $1,200 in credit each year for adding insulation or installing efficient windows and doors, with a special credit of as much as $2,000 for electric heat pumps that provide super-efficient heating and cooling. • To help determine the best home improvement options, families can claim a credit of up to $150 for a home energy audit conducted by an inspector. State programs will begin to offer rebates for electric appliances and home retrofits, which will reduce household energy bills each month. o All households can access rebates of up to $4,000, while low- income households could receive up to $8,000 for home efficiency. o Low- and moderate-income households can access rebates covering up to 100% of the costs of installing electric appliances like heat pump water heaters and clothes dryers. I need to replace my furnace or air conditioner Households can claim a tax credit for 30% of the costs of buying and installing a heat

o Develop a high efficiency electric home rebate program with $225 million allocated for Tribes. o Includes point of sale rebates, administered by states. o Includes means testing and will provide 50% of the cost for incomes 80 to 150% of area median income, and 100% of the cost for incomes 80% of area medium income and below and similar tiers for multifamily buildings. o Includes a $14,000 cap per household, with a $8,000 cap for heat pump costs, $1,750 for a heat pump water heater, and $4,000 for panel/service upgrade. (Note that the $8,000 heat pump cap is for households at or below 80% of medium)

HVACR NewsMagazine January 2024

pump, up to $2,000 including support for any electric system upgrades needed to make the home heat-pump-ready. Beginning in 2023 state programs offer low- and moderate-income households rebates for heat pumps at the point-of sale, cutting costs of purchase and installation up to $8,000. If home electrical upgrades are needed to integrate new heat pumps, rebates of up to $4,000 are available to households. For new vehicles, income-qualified households can receive a tax credit of up to $7,500. • The vehicle must be assembled in North America. • The vehicle must have a manufacturer’s suggested retail price of $80,000 or less for pickup trucks, vans, and sport utility vehicles (SUVs) and $55,000 or less for other vehicles, including sedans. For previously owned electric vehicles, income-qualified households can access a tax credit of up to $4,000. • The vehicle must be at least two years old and cost $25,000 or less. I want to buy an electric vehicle

• This credit applies to solar systems that are paired with battery storage as well as standalone battery storage installed without solar. The same website also has the following picture. You can find more information by clicking on the blue buttons; however you must go to the site for the buttons to work. You can click on this picture, you will be taken to the government site.

The IRA also has big tax credits for Home Builders

Here are examples copied from Energy Star: _tax_credits/federal_tax_credit_archives/ta x_credits_home_builders

I want to install rooftop solar on my home

• Single-Family New Homes - $2,500 available for ENERGY STAR certified homes. • January 1, 2023 – December 31, 2024: ENERGY STAR Single Family New Home National

Households can receive a tax credit to cover 30% of the costs of installing rooftop solar.

HVACR NewsMagazine January 2024

Version 3.1 (or the regional program requirements applicable to the home). • January 1, 2025 – December 31, 2032: ENERGY STAR Single Family New Homes National Version 3.2 (or the regional program requirements applicable to the home). • Manufactured Homes - $2,500 available for ENERGY STAR certified manufactured homes meeting the most recent ENERGY STAR Manufactured New Homes program requirements (currently Version 2, with Version 2.1 currently proposed to be implemented in May 2023). • Multifamily - $500 available for ENERGY STAR certified multifamily units meeting the ENERGY STAR Multifamily New Construction National program requirements (or the regional program requirements) applicable to the dwelling unit, as specified in Section 13304. A larger tax credit is available for multifamily projects that meet prevailing wage requirements. The Energy Star website also has information for homeowners. Go to their site, click on “Tax Credits for Homeowner” and then select the picture of the appliance you are interested in. That site again is _tax_credits/non_business_energy_propert y_tax_credits You may have noted that I used the word “MAY” and underlined it. Why? Because we are not sure what Arkansas is going to accept. Our Energy Office and the Governor’s Office seem to be in a bit of a As you can see, we’re talking big money.

quandary. What to accept and how to process it. It seems that Arkansas has a law that prohibits the state and utilities from having programs that result in fuel switching. As you probably know, IRA is very interested in eliminating gas heating and installing heat pumps. If my information is correct, that creates a big problem for the Governor. No one wants to turn down over $50,000,000 in federal tax rebates but then there is the law and the proclivity of some in our State’s government. Now, I don’t know the title and date of the non-fuel switching law but it has been at least policy for a couple of decades. You may recall back in the 90s when heat pump rebates were stopped because the gas companies were certain that they could not compete with the giant electricity utilities. So heat pump rebates that resulted in fuel switching went away. I said that NO One would want to turn down the federal money but Florida did just that — approximately 364 million. Not all related to Home Energy Efficiency but a bucket load was. Now it seems that Governor DeSantis is having a change of heart at least according to some Florida papers. Gossip has it that our Governor may turn down as much as $50 million. Now that is the scuttlebutt — only gossip at this time. Regardless of how much Governor Sanders decides to accept, the process is laborious. • First, the Arkansas Energy Office puts together a plan to present to the Governor. • Second, she will return it with suggested changes to the Arkansas Energy Office. • Third, the Energy Office will have stakeholders meetings and make changes as they see fit. If changes are made, it will return to the Governor’s office.

HVACR NewsMagazine January 2024

Link to Proposed Energy Code

• When the final version is set, the Energy Office will submit it to the Department of Energy. • The DOE will accept or make changes. If they make changes, it will ride the merry-go- round back to the Governor’s office. • Eventually, a plan that is satisfactory to all parties will be rolled out. The Energy Office’s last optimistic projection was the 2 nd quarter of 2025. Can you say, “ Wow! ” Now this is from those that know so if others have a different version, I’d sure like to know where they are getting their information. Well, it’s a lot of money with a lot of stakeholders and we should expect at long timeline. New Energy Code: As I recall, Arkansas has been working on adopting a new Energy Code since about 2019 — I think. I know that I have emails dating that far back. So, in a couple of months it will be 4 years. Funny since a code cycle is usually 3 years and we are still operating on the 2014 Arkansas Energy Code. That code was adopted with amendments in 2014 and implemented in 2015. I remember it well. Along with representatives of the Health Department, we traveled the state giving seminars to inform our industry of the changes the new code was making in our lives. Let’s see, that was 9 years ago. It is way passed normal cycles and the Arkansas Energy Office has done its best to get approvals with numerous stakeholder meetings. I thought that it was a done deal about 3 years ago; but, au contraire. You can download and view the proposed version using this link.

You may recall that the Association under the auspices of Energy Arkansas conducted blower door and duct blaster training sessions in anticipation of the new code. On more than one occasion we had to correct our mis-information. Thought it was on but then it was off. Now look, the folks I work with are sincere, hard-working, and dedicated to Arkansas homeowners. They are public servants and I don’t blame them for the delays. What I do know is that somewhere up the ladder folks are concerned about politics or legal hurdles. Whatever the problem, surely the highly educated, dedicated folks can figure this out. My position is, do it or don’t do it but let us know. At this point, we all have too much egg on our face to allow this to continue. I certainly want the guys facilitating the IRA and the Energy Code to know that we in the HVACR industry appreciate their work. We feel their pain. They are good guys; BUT, we need the Energy Office Big Dogs and the Governor to lead. I think they may not be getting necessary information from those of us in the field and from homeowners. We are here and ready to help. OK, we’ve talked about the four big issues facing our industry and homeowners for 2024. While I started off pretty negative, believe I’ll change my focus. I realize that our industry is made up of hard working, resilient, flexible folks. We’ll get up each day and do our best. What else could anyone ask for. After all, w e can’t make

HVACR NewsMagazine January 2024

the sun come up but we can give a full day’s work for a full day’s pay. We can’t change much of what goes in with the Department of Energy, the Arkansas Energy Office, or the Governor’s Office; however we can give them our calm reasoned advice and support them and our state regardless of the decision. Our prime focus is providing for our families and living a life that is helpful to others. We’ll focus on doing our best for our customers and our fellow workers-- employers, employees and fellow workers. Ya ’ know, when you think about it, 2024 is full of challenges but we will greet them as opportunities. So glad to be part of this industry.

Flex to the Future The Stone Age did not end because we ran out of stones and the car did not replace horses because we ran out of blacksmiths. Did you know that in 1894 New York city had over 100,000 horses which produced over 2.5 million pounds of manure and 25,000 gallons of urine EACH DAY. Every generation is charged with a challenge to meet the needs of the time and the result can be better. In the case of New York’s problem, much better. In the same way that blacksmiths had to evolve into other industries, we in the HVACR industry have to be flexible. Those that cannot flex, break. So get your exercise shorts on and flex to the future.

News Magazine January 2024


These specialties would also have to meet the financial requirement as well as hold the proper trade license. Historically, the only difficult part of getting a Contractor’s License was the cost of preparing an AUDITED financial statement. There are alternatives to that now and we’ll look at that next. Privilege: ✓ An unrestricted license allows one to do work without bid restriction, i.e., if you are “bad enough” to get the job, more power to you. ✓ May contract with the Owner, Prime, or other Sub-contractor • Financials for license: ✓ Audited or reviewed financial statement of applicant’s year end or more current, prepared on a GAAP or accrual income tax basis by an Independent CPA or RPA. ✓ The financial must include CPA Opinion Page and Footnotes. ✓ Minimum Financial Requirement is a $5,000.00 net worth with a positive working capital with half in cash in the bank. May not include any assets not used for business, i.e., home, and personal property. ✓ A $50,000.00 bond as authorized by Ark. Code Ann. ξ17 -25-304(c) may be used in lieu of the financial statement. Unrestricted License •

Going Commercial?? It is inevitable that as a small company grows, there are opportunities to venture into commercial jobs. It is exciting and a boost to the ego to realize that you can “move on up”. There are some things that you must know to be legal and not get “suckered” into more than you need to take on. A Contractor’s Board License is required on all commercial jobs $50,000.00 or more (labor and material included). Fortunately, that does not apply to HVAC residential. That is because we already have a governing authority at the Department of Labor and Licensing, HVACR Board. Your HVACR license allows you to install up to the equipment size limits defined by your HVACR license in a residential application. However, when a commercial HVACR job hits $50,000.00 a Contractor’s License i s required. (Note: If the HVACR company is working directly under a prime contractor pursuant to a contract with the prime, a Subcontractor Registration is an option instead of a Contractor’s License. We’ll cover this a bit more later on.) There are two classifications of Commercial licenses you may consider. First, legal issues.

Heating, Ventilation, Air Conditioning, Refrigeration (HVACR) Refrigeration, Cold Storage

News Magazine January 2024


Restricted License

Bond Requirement ✓ $10,000.00 Contractors License Bond to be executed on prescribed form. • Complete Criminal Background Check Form • License Renewal Fee

• Privilege: ✓ A restricted license allows one to do work less than $750,000.00 (labor and material included). ✓ May contract with the Owner, Prime, or other Sub-contractor • Financials for license: ✓ Complied financial statement of applicant’s year end or more current, prepared on a GAAP or accrual income tax basis by an Independent CPA or Public Accountant. ✓ The financial must include CPA Report Page and Balance Sheet. Footnotes are not required unless requested by the Board. ✓ Minimum Financial Requirement is a $5,000.00 net worth with a positive working capital with half in cash in the bank. May not include any assets not used for business, i.e., home, and personal property. ✓ A $50,000.00 bond as authorized

✓ $50.00 (timely) ✓ $100.00 (late) Experience ✓ Specialty 1 year

Test ✓ All contractor specialty licensees must successfully complete the Arkansas Business & Law Exam (This includes HVAC and Refrigeration and Cold Storage.)

Subcontractor Registration

Now, this is something most of us knew nothing about. An HVACR person / company can have a contract with a Prime Contractor or a Licensed Specialty Subcontractor and the sub will only have to do the following: • Privilege: ✓ May contract with the Prime, or other Sub-contractor • Financials are not required • Apply for Registered Status • Provide Proof of Workers’ Compensation • Provide a Bond of $10,000.00 • $100.00 fee • Limited by contract limitations of the contractor or subcontractor

by Ark. Code Ann. ξ17 -25-304(c) may be used in lieu of the financial statement.

Unrestricted & Restricted Licensees

• Must have or have employed at least 1 person with the appropriate Class “A” or “B” license from the Department of Labor and Licensing HVACR Program. • Proof of Workers Compensation coverage must be provided to the Board for licensing purposes for companies that have employees.

News Magazine January 2024


become a nightmare. Regretfully, I have been unable to find a clear legal determination when a registered engineer is required. That would protect us from ourselves as well as give us an out when a good residential customer pleads with us to help them out. Along that line, why are they asking us for a commercial load, etc.? Obviously, they are trying to avoid the cost of an engineer. On the other hand, who will they look to when the design goes south? By the way, it is more likely to go south in these situations because they are trying to save money by cutting corners. It is always good to “know your limitations.” Better to miss an opportunity that is outside your comfort level than to get a bad one.

Second, design issues. It is not uncommon for a homeowner with business property to enlist a residential contractor to do service work. That is fine unless the commercial contract is $50,000 or more. We’ve covered that; but sometimes the same person may ask the residential and light commercial contractor to take on design work; i.e. running a Manual N or commercial load program. Many projects seem to be “glorified residential projects” not exceeding 5 ton equipment. While that seems non-threating, a commercial load is fraught with calculations for internal heat gains and occupancy loads including the number of times the door is opened, etc. A strip mall or small restaurant can

HVACR NewsMagazine January 2023

State National Chapter News

Interim final rule materials (December 2023)

EPA Administrator Michael S. Regan signed the following interim final rule on December 20, 2023, and EPA is submitting it for publication in the Federal Register (FR). While we have taken steps to ensure the accuracy of this Internet version of the rule, it is not the official version of the rule for purposes of compliance or effectiveness. Once the official version of this document is published in the FR, this version will be removed from the Internet and replaced with a link to the official version. • Technology Transitions Interim Final Rule Prepublication Version • Frequent Questions ( This information was reprinted from the EPA website reduction/regulatory-actions-technology-transitions) Bold emphasis was added on implementation schedule. OK, what lie will you tell again this year. Resolutions never seem to work. A better alternative is to set goals. A goal is a statement of what you want to achieve; the steps you need to take to achieve it; and when you want it achieved. The key to setting effective goals begins with asking yourself the ultimate goal setting question – why? Why should this goal be a priority for my company? This leads to the other four W’s. • Who do I need on my team to achieve this goal? • What plans and resources do I need to achieve this goal? • When is the target completion date? • Where will the company be when the goal is achieved ? The outline of this great habit came from Stacy McCall, President and CEO ServiceMaster by Stratos Goals vs Resolutions

New Rules come Down Making Transition Easier December 2023 - Technology Transitions Restrictions on the Use of Certain HFCs in the Residential and Light Commercial Air Conditioning and Heat Pump Subsector This interim final rule narrowly amends a provision of the Technology Transitions regulations published on October 24, 2023 (88 FR 73098). This rule addresses the concern raised by stakeholders that the January 1, 2025, compliance date for installing lower-GWP HFC residential air conditioning and heat pump systems may strand inventory of equipment, particularly equipment that was intended for new residential construction. This rule allows for inventory of higher-GWP HFC equipment manufactured or imported before January 1, 2025, to be installed until January 1, 2026. This rulemaking also clarifies that residential ice makers are not included in the household refrigerator and freezer subsector and are not subject to the restrictions for that subsector. EPA finds there is good cause for this rule to take effect without prior notice and comment. EPA is still accepting public comment for 45 days after publication in the Federal Register . Unlike a direct final rule, EPA will not withdraw this interim final rule if it receives adverse comment; all comments will be addressed in a subsequent final rule.

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* Cross Pointe is proud to be an Arkansas HVCAR Association Endorsed Agency.

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Nick Hall, CIC Sr. Risk Management Advisor (501) 680-1186

Travis Hill Sr. Risk Management Advisor (479) 785-2912

Kyle Schnebelen Sr. Risk Management Advisor (501) 831-5221

Cross Pointe Insurance Advisors  12410 Cantrell Rd., Ste. 200A  Little Rock, AR 72223 Cross Pointe Insurance Advisors  1120 Garrison Ave.  Fort Smith, AR 72901

5% Energy Resource Conservation Loans

A Touchstone Energy® Partner

• No down payment • Low 5% interest • Up to 84 months to pay • Write one check for your payment and electric bill

• No early payment penalty • Low hassle loan application Call Southwest Arkansas Electric Member Service Department 800-782-2743

SUMMARY OF ERC LOAN PROGRAM Southwest Arkansas Electric Cooperative Energy Resource Conservation (ERC) Loan Program provides low cost financing for high efficiency heat pumps and other energy conservation improvements needed to make your home energy efficient. With approved credit and completion of the home survey, SWAECC will loan up to $5,000 per member per residential structure at 5% interest for up to 84 months. These loans are to finance energy conservation measures including heat pumps (including water source), caulking, weather stripping, insulation, storm or thermal doors and windows, etc. Loans for more than $5,000 will need Board of Director approval. Loans which do not include a heat pump will be limited to $3,000. To qualify, all conservation measures must save enough energy within 10 years to pay for the improvements. Payback estimates are determined by the Cooperative's Home Survey. Because loan funds are limited, loans will be made on a first come, first served basis. QUALIFICATIONS To qualify for the loan the member must have a good credit history with Southwest Arkansas Electric Cooperative and a good national credit rating. A three-member loan committee will check the member's credit before approving the loan. Loans will only be made for existing homes or buildings. The program is not for homes under construction. Also, property must be owned by the member. The cooling capacity of the heat pump should not exceed 125% of the calculated design load. The heat pump must also meet minimum efficiency ratings to qualify. The SEER rating must be 14.0 or above and the HSPF must be 8.0 or higher. All duct work, including all supply and return air duct work, must be installed with a minimum of 2" duct insulation or rigid fiberglass board and must be sized properly for noise reduction and air flow. HOME SURVEY Before a loan can be made, a home energy survey must be completed. This is a questionnaire concerning the existing and proposed energy efficiency of the property . CONTACT YOUR DEALER We advise but do not require you to contact more than one qualified dealer or contractor for cost estimates to install a heat pump and making other improvements such as storm windows or insulation if they are advised. To qualify for the ERC Loan, the unit must be installed by a member of the Arkansas HVACR Association. SUBMIT APPLICATION FOR ERC LOAN Complete and return the credit application, and the credit check authorization form in this brochure. Your application will be submitted to our loan committee for consideration, and we will notify you in writing of their decision. Once your credit is approved, we will need a copy of the deed to your property for proof of ownership and a legal description. The cooperative will file a lien on the proper-ty to secure the loan. A one-time fee of $30 will be charged to cover the cost of placing and releasing the property lien PROCESSING LOAN DOCUMENTS Upon completion of the work, a serviceman will inspect it. When the invoice is received and the inspection is complete, we will make an appointment for you to come to our Texarkana office to sign the loan papers and have them notarized. All checks will be two-party checks made out to both you and the contractor or contractors. NOTE : Cost of equipment and installation are to be negotiated between you and your contractor. You will be responsible for getting the invoices to us for processing and making payment to your contractor. A two-party check will be written to both you and the dealer . Sign the check only after work is completed.

ARHVACR NewsMagazine January 2024

S tate, National, Chapter News State national Chapter News

Bonds: not Barry, not bail Just SURETY

K yle Schnebelen, CLCS Cross Pointe Insurance Advisors

principal fails to meet the obligations of the contract, the surety will step in to ensure that the obligee is compensated for any losses incurred. I like to think about the surety bonding process as a grandfather, father, and son. In this analogy, the grandfather is the oblige or the government entity, the father is the surety, and the contractor is the son. The son just started a new excavation business and is approaching grandpa about doing some dirt work on the farm. The old man wants to help his grandson, but he was a young man once and knows that sometimes you get spread too thin and accidents happen. So, what does he do? He approaches his son, to ask for his word to guarantee that the grandson will get the work done on time and without issues. The father agrees and says, if equipment breaks, I will rent new equipment and if the dozer operator doesn’t show up, I will do the work myself. And if for some reason he does not have enough funds to pay that operator to show up, I will cover that as well. Why is Surety Bonding required for HVAC jobs? Well, simply put, HVAC is one that involves a significant amount of risk, and that is why this process was put in place. Ultimately, it protects the Kyle Schnebelen, CLCS

Surety bonding is an important aspect of the construction industry. It helps protect both contractors and clients in case of unforeseen circumstances. In this article, we will discuss what surety bonding is and why it is important. Well, what is surety bonding and why do I need to know about it? • Bid bonds - A bid bond is required when bidding on a project. (they cost nothing) It guarantees that the contractor will enter into a contract if they are awarded the project. • Performance bonds - A performance bond guarantees that the contractor will complete the project according to the terms of the contract. • Payment bonds - A payment bond guarantees that the contractor will pay all subcontractors, laborers, and suppliers involved in the project. Surety bonding is a government required contract between the surety (the bonding company), the principal (the contractor), and the client, which is called an obligee (the government entity). The surety provides a guarantee that the principal will fulfill the terms of the contract. Fun fact, the legislation that made this a requirement nationwide was first sponsored by an Arkansan, John Elvis Miller. If the

ARHVACR NewsMagazine January 2024

S tate, National, Chapter News State national Chapter News

taxpayer to make sure those doing the work will get it done and dollars aren’t wasted. When you are working with multi ton units in large commercial buildings and you are using a crane to do an install, that is a lot of opportunity for something to go wrong. That is where surety bonds come into play. Your ability to perform the work is backed up by someone else, on top of your property and casualty insurance. For the client, surety bonding provides peace of mind that their project will be completed as agreed upon, and they will be compensated if the contractor fails, which most of the time means they went bankrupt in the middle of the job. For the contractor, it gives you an opportunity to gain more revenue by bidding on government jobs, and to present yourself as a financially stable and sound business. For more information on surety bonds and other commercial insurance, contact Kyle at-- Cross Pointe Insurance Advisors, LLC 12410 Cantrell Road, Ste 200A Little Rock, AR 72223 501-468-0210

May your new year be filled with opportunity and blessing


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ARHVACR NewsMagazine January 2023

S tate, National, Chapter News State national Chapter News

Kirk’s Corner New year, more ways to increase sales with high-efficiency natural gas equipment rebates from Summit Utilities Happy new year! As we welcome 2024, I want to remind you about the rebates Summit Utilities offers you and your customers. New for 2024: Higher rebates to help you sell – and higher trade ally incentives, too! Our rebates help your customers save on the price of high-efficiency equipment while helping you close sales. By submitting a qualifying rebate, you will receive $100! We doubled our installer incentive to encourage you to submit your customer’s rebate online. Your customers can now receive up to $800 for >95% AFUE forced-air furnaces— and you’ll receive $100 for your effort! Plus, your customer can receive an additional $60 when you install a qualifying Energy Starsmart thermostat at the same time. We also offer a rebate of $1,700 for a combination furnace plus tankless water heater installation and$1500 for a condensing combination boiler, with a $100 trade ally incentive this year! • Water heater rebates: Your customers will receive up to $700 for tankless water heaters, $500 for commercial tank water heaters, and $75 for residential tank water heater installations. We also offer a $1,700 rebate for a combination 95% furnace plus • Heating system rebates:

tankless water heater installation. Either way, you can receive a $100 trade ally incentive! Remember, it is never too early to begin submitting rebates! Save time and get your rebates more quickly when you submit them online using our easy-to-use application! • Sign in or register your company online at ally/register/summitutilities/account info • Verify your customer is a Summit Utilities natural gas customer by providing their Summit account number along with the dated itemized sales invoice/receipt with the brand, model number, and purchase price of the installed equipment.

As always, if you have questions, please reach out.


T. Kirk Pierce Senior Energy Efficiency Consultant 501-412-9610

S tate, National, Chapter News Education News

NWTI Business & Industry 709 Old Missouri Rd., Springdale, Arkansas 72764 Michael Dewberry: 479-751-8824 SAU Tech 6415 Spellman Rd, East Camden, AR 71701 Roland Walters : 870-574-4500 Southeast Arkansas College 1900 Hazel Street, Pine Bluff, AR 71603 John Pyland : 870-543-5900 UACC Hope / Texarkana 2500 South Main, Hope 71802 Leo Rateliff : 870-722-8507 UACC Morrilton 1537 University Blvd., Morrilton, AR 72110 Carroll Chism: 3000 West Scenic Drive, NLR 72206 Robert Dixon : 501-812-2200 UA Monticello / Crossett 1326 Hwy 52W, Crossett, AR 71635 William Campbell : 870-460-2010 (501) 977-2053 UA Pulaski Tech If you are a college or technical institute and want to be included in the list of HVACR education providers, contact the NewsMagazine 501-487-8655 We’ll make sure you are in the next issue. Also, if we need to correct your information, please let us know. Add Your Name

Training Programs

Arkansas North Eastern College 4213 Main Street, Blytheville 72315 Rick Sones : 870-763-6222 Arkansas Tech University, Ozark 1700 Helberg Lane, Ozark, AR 72949 Kenneth Beeler : 479-508-3333 ASU Mountain Home 4034 Hwy 63 W, Mountain Home 72653 Eric Smith : 870-508-6221 ASU Newport 33500 US 63, Marked Tree 72365 Mark Constant : 870-358-8627 ASU Searcy Newcastle Road, Forrest City, AR 72335 Robert Jackson : 870-633-5411 National Park College 101 College Drive, Hot Springs, 71913 Pam Castleberry : 501-760-4393 North Arkansas Community College 1320 Nort Spring Road, Harrison, AR 72601 Jeff Smith : 870-391-3382 Northwest Arkansas Community College One College Drive, Bentonville, AR 71712 A.J. Hart : 479-936-5108 1800 East Moore Avenue, Searcy Brad Cooper: 501-207-6221 East Arkansas Community College

HVACR NewsMagazine January 2024

Tech News

Dehumidifiers and Install Application As the housing stock across the US is improved by Code application on new construction and general upgrades to existing structures, it becomes necessary to review the necessity of adding dehumidification equipment to supplement or supplant the HVAC equipment installed. Homes become less dependent upon mechanical means to keep the environment at a stable temperature for occupation, the less the HVAC equipment will influence latent loads. To say it another way, the HVAC system run time is decreased due to better insulation and construction methods so the left over latent loads will have to be maintained by other means. Washing clothes, showering, cooking or just breathing are often overlooked latent internal loads. Comfort is ruled by latent loads and temperature alone will miss the mark most of the time. A major roadblock to making corrective changes to any system is convincing to occupant something is wrong. Occupants learn a temperature setting under the guise of comfort. They adjust the temperature where they believe they are comfortable. That setting may be 70 degrees or lower just to feel somewhat cool. Hidden is the fact that humidity levels of above 60% drives consumers to lower their thermostat. Envelope leakage is likely on homes built prior to 2007. You must carry the tools to demonstrate the mechanics of air and the necessity for change. Today’s new homes suffer the same settings, but it is likely due to the fact the system lacks the capacity or run time to mitigate humidity from internal loads

or may be oversized. Some companies have purchased portable dehumidifiers to give the consumer the opportunity to witness the improvement. The contractor delivers from a small pool of machines depending upon the application. But there are drawbacks you must be prepared to overcome. There will be customers that want “ just get by ” . They will beat it down to the big box, let a sales person dictate the size and likely will be unhappy with the results. Or you can explain at the outset that whole home dehumidifiers are longer lasting and more effective in most situations and that you have the tools to make the selection for them. The first hurdle is to make sure the HVAC system will handle latent loads. More often than one might expect, high performance equipment may save energy, but leave humidity behind. Don’t be tempted to oversize the equipment to address latent capacity. The fact is exacerbated with newer homes because the space is more efficient at keeping ambient temperatures out of the envelope. The three ton system below demonstrates adjusted capacity has little to do with the nominal tonnage the equipment is marketed by. This phenomenon is not brand specific. All brands suffer capacity as efficiency is increased. Manufacturers use more mass (heat transfer material) with minimal compressor capacity to save energy.

HVACR NewsMagazine January 2024

Tech News

35 pint capacity for 1750 sq ft home

Whole house dehumidifiers have capacities generally above 70 pints and are permanently fixed inside or out of the envelope with duct that can provide both intake and distribution. When purchasing dehumidifiers, we need to understand capacity measurement and how the testing is done. Just as adjusted capacity influences real time HVAC performance, the pint capacity on the box can mean little in the real world. New energy conservation standards for dehumidifiers took effect in June 2019. These standards are based on Integrated Energy Factor (IEF), that replaces Energy Factor (EF). The EF method did not look a ghost loads or loads the humidifier consumed when the appliance was off. The IEF includes the energy when cycled off. In June 2019, new dehumidifiers are rated with an IEF value based on a new test criterion at 65°F, rather than 80°F, to capture performance in a basement setting. This 15°F reduction in testing temperature means that a dehumidifier tested to the new procedure will likely report a smaller capacity than when tested to the old procedure. Since approximately two thirds of the country have no basements, you must do your homework if you desire a correct capacity for the space you are fitting the appliance in. In warmer or down right hot areas of the country, we need

With this knowledge in hand, we move to address latent loads with alternative equipment; but before we go the local big box store, there are points to think about. The first is to understand the different capacities that might match the load. Portable dehumidifiers are defined as those with capacities at or below 90 pints and stand alone in the space. On portable units, waste humidity is collected in a internal bucket to be dumped manually. Some portable duhumidifiers have pumps to move waste to a tub, sink, or lavatory drain. When we address excess humidity as waste, we can note the water removed from the process is distilled water and is perfect for watering plants. Before you set humidity control aside as a option, we need to remember high humidities encourage offgassing of VOC’s. Just a few short years ago it was discovered that lower humidities prevent offgassing; but, that is an entirely different Indoor Air Quality conversation for the future. For more information on this point please review the article here. Humidity and Off-Gassing - IAQ.Works

HVACR NewsMagazine January 2024

Tech News

to remember warm air holds more humidity. Just as SEER 2 and EER 2 doesn’t change the capacity of the equipment, the change in testing shows the real time shortcomings of the equipment when we skip over the facts. If you want to dig into the technical data, the following link will guide you through the process. Standards and Test Procedures | Department of Energy

criteria. It becomes costly and near impossible to improve air sealing at a final inspection. So, without Blower Door information you are guessing at the capacity necessary to dehumidify the space effectively, just like sizing HVAC equipment. It is not uncommon to find you need double the dehumidification that’s listed on the box and never rely on the square footage listed by the manufacturer. It is likely the test data reflect conditions that exist in the best insulated homes. As a final point, there has been discussion on the application of whole home dehumidifiers.

To sum up changes in general please reference the chart below.

Capacity Changes in Portable and Whole-Home Dehumidifiers Portable Whole Home Pre 2020 pints / day 2020 Post pints /day Pre 2020 pints / day 2020 Post pints /day

Some manufacturers recommend adding the load from the dehumidifier to the supply plenum. This may result in particular rooms picking up heat more than others due to placement of the dehumidifier discharge in the supply plenum. If the dehumidifier is within the envelope such as foamed attic,

30 40 50 55 60 70

20 25



100 120 140 160 200



100 115 135 170






So now that you are aware of limitations of equipment, and reduced capacity of dehumidifiers, what are the next steps? This makes it apparent to those that hate the words “Blower Door”, you will never be successful at sizing equipment and applying accessories unless leakage rates for the dwelling are determined. Large custom homes are very difficult to air seal and dehumidify unless blower door data is compiled as construction takes place. This data gives general guidance as to whether or not the home will meet final inspection criteria. I have spent time at a 10,000 square foot home that is awaiting a Certificate of Occupancy due to the Blower Door values not meeting inspection

dumping the supply from the dehumidifier in the attic can be acceptable if there is minimal access for return and supply air to circulate. As an alternative, where a foyer or staircase is present, it may be acceptable to oversize the supply boot or bucket and grille, reverse a wye to accept the conditioned supply and the dehumidifier duct. This will mix the warm load with conditioning supply in a relatively unnoticed area. Once again, this topic proves the job of the HVAC contractor requires skill, education, and the right tools to provide customers with solutions that improves comfort, affordability, and equipment longevity.

HVACR NewsMagazine January 2024

Tech News

R-410A Phase-Down Update

Published by HVAC School for Techs by Techs

Courtesy: Chemours Company

importation of R-410A will fall by another 30%. Production will only be at 60% of its level before 2022.

AIM Act Timeline

The R-410A phase-down comes from the American Innovation and Manufacturing (AIM) Act, which was signed by the U.S. president in 2020. The EPA didn’t decide to phase down HFCs, but it was the body that set forth a plan to meet the requirements of the AIM Act. The industry saw the first wave of the phase-down in 2022, where R-410A production decreased by 10%. We are on the heels of the next stage of the phase down; in 2024, the production and

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