Arkansas HVACR NewsMagazine March 2025

News Magazine March 2025

Arkansas’ First and Only HVACR NewsMagazine

Summit Roles Out New Affordable Rebates Pg 20

Bryan Orr Solving Superheat Pg 32

Spring Arrives March 20

Continuing Education *Manual J Classes in March 2 day : 4 CEUs Pg 5 *Code at Chapter Meetings in March 2 Hours : 2 CEUs Pg 4

Tom Turner Rethinking HVAC Pg 27 Relevance

Contractor Defrauded 1.8 Million Pg 24

Hiring With Felony Background Pg 18

Craig Migliacco Training for T-stat Operation Pg 38

NAIMA Says

Gas Is Going Up Pg 31

Super Important. Gotta read this! State Converts to Electronic License Renewal Pg 6

This is the Sheriff’s Office We Have a Warrant for Your Arrest Pg 10

By Arkansans

For Arkansans

News Magazine March2025

Table of Contents

14

Continuing Education Events Chapter Meetings with Code CE

PG 4

pg 5

Manual J with Wrightsoft Software

Editorial This is the Sheriff’s Office. We Have a Warrant for Your Arrest

pg 10

FEATURE STORY Rethinkng HVAC (Tom Turner, Air Evangelist)

pg 27

Education News Training Programs

PG 17

State, national, chapter news Super Important, Gotta Read This : State Converts to Electronic License Renewal

PG 6

pg 18

Hiring with a Felony Background

pg 20

Kirk’s Corner: Summit Roles Affordable Home Rebate Program

PG 24

Contractor Defrauded 1.8 Million NAIMA Says Price of Gas Going Up

PG 31

Tech News

PG 32 pg 20 pg 24 PG 38

Solving Superheat (Bryan Orr - HVAC School)

Training for Thermostat Operation (Craig Migliacco AC Service Tech)

pg 30 PG 33 pg 36

News Magazine

Arkansas’ First and Only HVACR NewsMagazine

Going Someplace in 2025 Check out MemberDeals

It’s a service for Association members to reduce travel and entertainment costs. Check it out on the website at arhvacr.org Log in and scroll down to Member Advantages. At the bottom, click on the MemberDeals icon. Lots of potential savings are available and it only costs you your membership. What a deal — What a deal. You might save some money and maybe not. Won’t know till you check it out. Let us know your experience so we can improve or share.

arhvacr.org sign in Member Deals

Exclusive Members Only Check it out!

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March Chapter Meetings

Transitioning from 410A to A2L Free to Members : $50 to Non-Members Click on the Chapter You Want to Attend Fill out the Registration *Registration is Required

Continuing Education

March 4 5:30

March 20 6:00 SW AR Electric Co-op 2904 E. 9 th Texarkana, AR March 26 6:00 Whole Hog Restaurant 2516 Cantrell Road Little Rock

Click on the Class You Want to Attend

Golden Corral 1801S Waldron Fort Smith

March 13 6:00 Golden Corral 4507\ North College Fayetteville March 18 6:00 ASU Mountain Home Veda Sheid Bldg 1600 South College Mountain Home

March 6 6:00 Ouachita Electric Co-op 1801S Waldron Fort Smith March 11 6:00 National Park College Student Commons 101 College Drive Hot Springs

April 17 6:00

Ron’s Catfish 3213 Dan Ave. Jonesboro

2 Hours of Code Continuing Education CEU 25-03

Click on the Class You Want to Attend Fill out the Registration *Registrations are Required

March 3 & 4 9:00 a.m. to 5 p.m. UA Ft. Smith 70 S 7 th St Bakery Dist Fort Smith March 10 & 11 9:00 a.m. to 5 p.m. National Park College Student Comons Hot Springs March 13 & 14 9:00 a.m. to 5 p.m. NWACC Shewmaker Workforce Bentonville Filled Too Late

March 20 & 21 9:00 a.m. to 5 p.m. SW AR Electric Co-op 2904 E. 9 th St Texarkana, AR March 24 & 25 9:00 a.m. to 5 p.m. Summit Utilities 101 Bringler Drive Maumelle March 27 & 28 9:00 a.m. to 5 p.m. ASU Newport Jonesboro Workforce 5504 Krueger Drive Jonesboro March 31 & April 1 9:00 a.m. to 5 p.m. ASU Monticello / Crosset 1326 Hwy 52 W Crosset

Manual J Load Calculations are Required for New Construction

Did You Know You can join the Association as a Contractor and get • $100 discount off this Manual J Class • Attend the Code CE classes in October and March for free • Get a discount on travel to Disney World, Seal World, Universal Orlando, Las Vegas, even Movie Tickets

March 17 & 18 9:00 a.m. to 5 p.m. ASU Mountain Veda Shied Bldg Mountain Home

Click Here Join the Association

Join today Save all year

HVACR NewsMagazine January 2023

State National Chapter News

An Announcement from the Department of Labor and Licensing Renewing your License has Changed

This letter was reprinted with permission and is an example of the HVACR program dedication to transparency and service to the HVACR industry. This is something we do not take lightly and express our appreciation to the management and staff at the Department of Labor and Licensing.

http://www.edssupply.com/arkansas

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.

News Magazine June 2018

Mr. McKinni, we are not trying to call you a criminal; however, there is a criminal warrant for your arrest. The Judge will hear your position and may relieve you of the warrant; but, it will be necessary for you to come to the Sheriff ’s office to get this taken care of. Officer 1: I am going to turn this over to my Lieutenant who will give you instructions. Do you understand? McKinni: Yes, I understand. Lieutenant: Is this Mr. McKinni? McKinni: Yes, it is. Lieutenant: Mr. McKinni, you are to proceed to the Sheriff ’s office. Do not stop on the way unless you are instructed to do so. Because there is a warrant for your arrest, our officers have your vehicle and tag information. Should they stop you, you will be arrested, placed in hand cuffs, and taken to the Sheriff ’s office for incarceration . If you stay on the phone with me, I can help you avoid that situation. Do you understand? McKinni: Yes, I understand. Lieutenant: Mr. McKinni, there is a $30,000 fee for failing to appear for the Federal Jury duty. Can you bring that to the Sheriff ’s office? McKinni: Do you want cash, check, credit card? Lieutenant: Because there is so much fraud, we can only accept cash. Do you have $30,000 at home that you can bring? McKinni: No. Lieutenant: Can you go by the bank and get $30,000 to bring with you? McKinni: No, I don ’t have $30,000 in the bank. Lieutenant:

The Sheriff

Has a Warrant

for Your Arrest

Phone call: This is Officer Abernathy. Is this Charles McKinni? McKinni: Yes. May I help you?? Officer 1: Mr. McKinni, I first need to inform you that this call is being recorded for your security and for future evidence. Do you understand? McKinni: Yes. Officer: Mr. McKinni, we have a warrant for your arrest for failing to serve on a Federal Grand Jury. Do you recall not showing up to a Federal Grand Jury? McKinni: No. I did not know I was called for jury duty. Officer 1: Mr. McKinni, we have a signed copy of your response and your intent to show. McKinni: I never received a summons and I certainly did not sign a summons. Officer 1: Is anyone in your household that could have received the summons and signed it for you? McKinni: No! Absolutely not. There only other person in my house is my wife and there is no way that she would have signed and returned the summons. Officer 1:

News Magazine June 2018

Can you get advances on your credit card. McKinni: No, I don ’t have that kind of money. Lieutenant: Mr. McKinni, you sound like a nice person and I don ’t think you are a criminal. I’ll list you a s indigent. The Honorable Judge may allow you to pay whatever you can. You will need to go to the bank and get what you can; but, you will need to prove that you are being honest with the Honorable Judge by bringing a statement of your bank account. You can get the bank to print that for you when you withdraw your funds. McKinni: So how much do I bring? I have outstanding checks. Lieutenant: Mr. McKinni, you will need to bring everything but don ’t worry. If you can prove that your signature on the returned summons is not yours, then you will receive a cashier ’s check which you can deposit on the same day. You will not have checks bounce. McKinni: I need to go to the bank, get a statement, and withdraw all my funds? Is that right? Lieutenant: That is correct. You need to proceed to your bank but do not hang up. McKinni: So, if it is $5,000 or $1,000 that is what you want and that will be OK. Lieutenant: I don ’t know. That will be up to the Honorable Judge. You need to do this as quickly as you can. We have appointment times at 2:30, 3:30, and 4:30. McKinni: I want the first one and I ’ll be on my way. Lieutenant: I can ’t reserve the time until you have the funds and are on your way. Somone else may come before you. We ’ll also need to estimate how long it will take you to arrive. I ’ll stay on the line.

McKinni: OK, I understand. This is so curious. I don ’t understand how the sheriff ’s office can affor d to pay you while I drive down the road. I know it can ’t be fun for you or a good use of your time. Lieutenant: You are right but I guess they think they can. I just do my job. Tell me when you arrive at the bank.

Small talk and questions and answers

McKinni:

OK. I am at the bank.

Lieutenant: Mr. McKinni, you can leave your phone in the car; but, remember, this is a Federal case. You should not discuss it with the bank or anyone. No one is to know what is going on. All information is privileged. Do you understand? McKinni: I understand. I ’m leaving my phone in my car and will go into the bank. McKinni; I got the money and the bank statement and am on my way. Lieutenant: Wait, I need to tell you where to go. How much were you able to get? McKinni: $1,000 Lieutenant: I thought you were going to get $5,000!!! McKinni: I did not say I had $5,000. I was using that as an example. Lieutenant: We ’ll see if the Honorable Judge will accept that. We have to perform a signature writing test to see if it matches the one we have on the summons as McKinni goes into the bank withdraws $1,000 and gets a copy of a bank statement for that day.

News Magazine June 2018

answered. We cannot perform the signature analysis until the Honorable Judge accepts you as being indigent and the amount you are bringing. McKinni: Well, I guess we ’ll see. I am on my way to the Sheriff ’s office. Lieutenant: Wait, wait. We want the funds to be secure, so the Federal court has established a Federal Kiosk system for you to make the deposit. That will speed up the process. Also, you need to pull over to a safe place. We are sending you text with information on the location of the Kiosk and we also need you to send a picture of the bank statement. The text will contain a QR code. Use it to send the copy of the bank statement. McKinni: I understand but the bank statement has my account number. I don ’t want to send the account number. Lieutenant: I understand. We don ’t want the account number. Just blacken that and it will be OK. McKinni: OK. I am in a safe place. Have you sent the email with the QR code? Lieutenant: Yes, you should have it now. McKinni: Ok. I sent the bank statement. What do I do now? Lieutenant: The Federal kiosk is on Maumelle Blvd. You ’ll find it. McKinni: I have never seen a Federal Kiosk on Maumelle Blvd. I don ’t see one. Conversation proceeds for information on how to comply with the QR code.

Lieutenant: It is in the Circle K on Maumelle Blvd. Be sure not to hang up on us. I ’ll give you instructions when you arrive. McKinni: Ok. I am almost there McKinni: I am there and going in. I don ’t see the Kioski. Lieutenant: It is there. It is black and gold. Keep looking. McKinni: I am telling you. There is no Federal Kiosk Lieutenant: Do you see a black and gold box that looks like an ATM? McKinni: No. There is not black and gold Federal kiosk. Lieutenant, getting frustrated: Just keep looking. It is black and gold. You don ’t see a black and gold box ? McKinni: Oh, OK. I see a black and gold box but it doesn ’t say Federal Kiosk. It says Bit coin. Lieutenant: That is it. Touch the screen to start and enter the code I will give you. McKinni: OK. What is the code?

Enters the code. Next screen asks for name.

McKinni: It is asking for my name. I am not going on with this. Tell your officers that they can arrest me. I am going to the Sheriff ’s office and they can arrest me. I am not going any further with this.

News Magazine June 2018

Lieutenant: Mr. McKinni, there is an arrest warrant for you and if you get arrested it will result in 7 to 21 days i ncarceration . You don ’t want to do this. McKinni: Well, just arrest me. I ’ll have lots of fun letting everyone know how I was treated. Thank you for your time but I am hanging up. Department to see if there was a warrant for his arrest. Treat with courteousness, they informed McKinni there was not warrant and this sort of thing is going around. OK! Why did I tell you this in story / play form. I wanted you to see the thoroughness of scams that are going on these days. This reflected part of the conversation. It took about 2 hours. And yes, Mr. McKinni is actually me, Tom Hunt. Yes, I am embarrassed that it took me so long to end it; but, I thought, “ You never know and I could spare a few minutes to be sure it wasn ’t legit.” You will do better. Get a call like this, ask if you can call them back. Hang up and call your local police. They will be glad to assist. Here's the deal. Scams are more than abundant. They are at pervasive. In 2023, the FTC reported that consumers lost over $10 billion to scams. In 2024, government imposter scam losses exceeded $557 million. Conclusion of story: McKinni went to the Maumelle Police

“Always remember the four P’s” Although the tactics vary, there are some consistent red flags to help you to spot scams. 1) Scammers will pretend to be from a legitimate, reputable agency or business to gain your trust; 2) Scammers will then often present a prize, such as an offer to increase your benefits,or make you aware of an unknown problem with your account or with an agency, such as SSA; 3) Scammers will pressure you to act immediately; and 4) Scammers will ask for hard-to trace payments , such as with a gift card, cryptocurrency, gold bars, wire transfers, or by mailing cash. Knowing the 4Ps will give you the confidence to speedily slam the scam. Credit Card Scams also top the list. Time Financial lists 11 things to watch for: 1. Identity theft and identity fraud A thief will contact you directly, impersonating someone else to persuade you to release sensitive information about your identity that will give them access to your credit cards. Texts, phone calls, and emails from unrecognized senders (especially if they reach out incessantly after you fail to respond) signal that you’re targeted by scammers. Identity theft is stealing this information and identity fraud is using that information to steal from you — or from, say, a government program like Medicare using your information.

The Office of the Inspector General of the Social Security Administration says,

News Magazine June 2018

company or merchant the phisher claims to represent. You might land on what appears to be a checkout page that requires you to enter credit card data. A first warning that you ’ re a target of phishing is a slight difference in an email address, perhaps an inconspicuous misspelling that you aren ’ t likely to catch unless you ’ re on alert. Another popular angle is to inform you that you ’ ve won a sweepstakes or lottery prize — but to collect, you must give your credit card details. If you fall for the ruse, the phisher will use your information to start spending on your credit cards. Social Security is a favorite target for fraudsters. You may receive a notice that urges you to make a payment or your Social Security number will be suspended. That’s not possible, so just ignore the threat. A particularly insidious method of fraud is via malicious hot spots. When using public Wi- Fi, it’s critical that you choose your network carefully. Your device may pick up two types of dangerous hot spots. 4. Social Security benefits scam 5. The hot spot scam 1. The hot spot prompts you to pay for internet access before you can begin surfing. This could be a fraudster effectively phishing for your credit card information.

I ’d like to th row in that my identity was stolen about 15 years ago. Fortunately, it only costs me time as the credit card company is required to credit your account when the charge is proven false. Seems that about every 6 to 9 months I go to the same process of contesting the charge, getting a credit, cancelling, and getting a new card number issued. 2. Skimming scam Credit card skimmers are accessories placed on point-of-sale devices to steal your payment information. They ’re designed to resemble the real credit card terminal so you won ’t suspect a thing during the transaction. Once you insert your card, the skimmer copies your credit card info as the merchant processes your payment. Skimmers can be as simple as an extension of the magnetic stripe reader and as intricate as a false shell that fits over the PIN pad of a credit card machine. They ’re most often found at gas stations and ATMs. 3. Phishing scam Phishing is the act of sending messages (usually email or test) to trick you into either sharing personal information or clicking a link that downloads malware onto your device. While not exclusively used for credit card fraud (the phisher can pose as a reputable establishment, such as your bank or place of work), it can be a very effective way to score your card information. Phishing usually contains a link that takes you to a website simulating the

News Magazine June 2018

2. The hot spot gives you no-hassle internet access, but the owner of that hot spot can monitor your activity. Both of these spell trouble if you’re not diligent. These hot spots are often named something innocuous, such as “Free Wi Fi.” Time lists another 6 scams but this article is already too long. Want to know what they are? Go to this link Credit Card Scams to Know in 2025 (and How to Avoid Them) | TIME Stamped I don ’ t understand why the Federal Government seems unconcerned. Big box stores and credit card companies spend millions of dollars on this but they get their money back through pricing. So, in the long run, we all pay for all these billions of dollars of scam. I bought a $2,000 item from someone through an online company. The money had to go through the online provider. It turned out to be a ruse. I contacted the company and their most frustrating comment was, “ If the deal is too good to be true it probably is too good to be true. ” OK, like I didn ’ t already know that. They offered no help. I asked them to look up who they paid the money to and they would not. OK, a $2,000 lesson plus my deflated ego. Back to the Feds. The case I frequently hear is that the perpetrators are from some eastern block country. How about we tell that eastern block country to locate and deport or we will stop our Another, “ Why is all this in the article? ”

trade. I know you think I am a simpleton and perhaps that is true. BUT, we have got to get control of these billions of dollars of fraud. When the Trump administration gets control of government and government contractor fraud and abuse, maybe they will try to stop this direct theft on everyday consumers like you and me. You are not going to convince me that we couldn ’ t hire a few “ big b_ _ _ s ” to track this down. One of the big areas of education is cybersecurity. Surely that gives us some hope on the horizon. Having taken a great deal of your time, I give you my appreciation and surprise that anyone made it this far. You are a bit mystifying and to be lauded. Promise not to pontificate quite so long next time. The next issue will be on Trump administration changes to energy efficiency standards. Wanted to do it this time but there is too much misinformation to say much that you could depend on. We ’ ll talk again in May.

We ’ ve Got to Stop This

S tate, National, Chapter News Education News

Training Programs

Northwest Technical Institute 709 Old Missouri Rd, Springdale, Arkansas 2764 Galin Cronin : info@nwti.edu 479-751-8824 SAU Tech 6415 Spellman Rd, East Camden, AR 71701 Roland Walters : cwalters@sautech.edu 870-574-4500 Southeast Arkansas College 1900 Hazel Street, Pine Bluff, AR 71603 Danny Gumm : dgumm@seark.edu 870-543-5976 UACC Hope / Texarkana 2500 South Main, Hope 71802 Leo Rateliff : leo.rateliff@uacch.edu 870-722-8507 UACC Morrilton 1537 University Blvd., Morrilton, AR 72110 Carroll Chism : chismc@uaccm.edu (501) 977-2053 UA Pulaski Tech College 3000 West Scenic Drive, NLR 72206 Matthew Lemaster : mlemaster@uaptc.edu 501-812-2795 UA Monticello / Crossett Add Your Name 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 news@arhvacr.org We’ll make sure you are in the next issue. Also, if we need to correct your information, please let us know. 1326 Hwy 52W, Crossett, AR 71635 Brad White : bwhite@uamont.edu 870-415-9795

Arkansas North Eastern College 4213 Main Street, Blytheville 72315 Rick Sones : rsones@smail.anc.edu 870-763-6222 Arkansas Tech University, Ozark 1700 Helberg Lane, Ozark, AR 72949 Kenneth Beeler : kbeeler@atu.edu 479-508-3333 ASU Mountain Home 4034 Hwy 63 W, Mountain Home 72653 No program at present ASU Newport 33500 US 63, Marked Tree 72365 Mark Constant : mark_constant@asun.edu 870-358-8627 ASU Searcy 1800 East Moore Avenue, Searcy Brad Cooper : bjcooper@asun.edu 501-207-6221 East Arkansas Community College Newcastle Road, Forrest City, AR 72335 Robert Jackson : rjackson@eacc.edu 870-633-5411 National Park College 101 College Drive, Hot Springs, 71913 Ashton Copaus : ashton.copaus@np.edu 501-760-4394 North Arkansas Community College 1515 Pioneer Drive, Harrison, AR 72601 Jeff Smith : jsmith@northark.edu 870-391-3382 Northwest Arkansas Community College One College Drive, Bentonville, AR 71712 A. J. Hart : ahart7@nwacc.edu 479-986-4000

HVACR NewsMagazine March 2025

State National Chapter News

this? They want to help a felon work back into society by getting a job and learning a trade. Now there are certain crimes that will never allow a felon to take a job with the HVACR industry. — rape, incest, murder, etc. However, there are lots of folks that made lesser mistakes, drug possession for example, that have now grown up and want to make a life for themselves and their families. Those are the ones that can apply for a waiver and probably be approved by the board. As we move into the new HVACR industry, there are laws, regulations, and processes that we all need to know. If we learn them, our lives will be much smoother, and we will reduce our headaches. Got a question? Contact your state inspector or the Department of Labor and Licensing. 1. Got a licensing question and need to talk to the State Office of the HVACR Program, call 501-682-9201 2. Got a complaint about botched jobs? Use this link and scroll down to Code Enforcement Complaint form HVAC-R » Arkansas Department of Labor and Licensing 3. Every licensee is important and your State and District State Inspector and local inspectors are ready to serve you. The 990 form follows on the next page.

Hiring Someone with a Criminal Background?? Not before you complete a 990. You need help and a good ole’ boy applies for a job. Before or after you apply for their Registrant card, you find out that they have a felony background. Oops! The Board cannot issue the Registrant card until you fill out a 990 and apply to the Board for approval. A copy of the 990 follows. So you already hired the person so what do you do? Technically, you cannot keep the person employed. No, you can’t keep the person employed. You have to fill out the paperwork, apply to the Board and get their approval. That can take a couple of months. The Board meets monthly and the Director can’t do anything to speed up the process. I know, I know, I know. It sucks. You need help, they need a job, and you are stuck in a bureaucratic maze. Not forever, only a couple of months. Here’s the deal, you broke the law by hiring the felon without 990 approval. Truth is, the Board usually looks over the mistake and there is no kick back on you; however, there could be. The Board just wants to help everyone accomplish the goal of providing a good job, serve your community, and maybe giving a good guy a second chance. Remember this. This is the result of your legislature who passed the law. Don’t like it ? Talk to them. They have the authority. So why did they do T he Director can’t do anything to speed up the process

HVACR NewsMagazine March 2025

State National Chapter News

Want to hire a felon? Got to fill this out. It ’ s the law.

ARHVACR NewsMagazine March2025

S tate, National, Chapter News State national Chapter News

Kirk’s Corner Bringing Comfort Within Reach: HVAC Rebates for Affordable Housing Residents As an HVAC contractor, helping your customers secure rebates on high efficiency heatin+g and water heating equipment can be a valuable service. Not only does it make upgrading to natural gas systems more affordable, but it also boosts long-term energy savings. As part of its Conservation Improvement Program, Summit Utilities Arkansas now offers an Affordable Housing Equipment Rebate Program that provides financial incentives for homeowners and tenants investing in energy-efficient HVAC systems. Here’s what you need to know to help guide your customers through the rebate process. Rebate Benefits: Offsetting Upfront Costs Purchasing and installing new, high efficiency natural gas heating systems or water heaters can come with a significant price tag. Fortunately, eligible customers can receive rebates of up to $1,500, helping make these upgrades more cost-effective. Beyond the rebate itself, customers can benefit from lower monthly utility bills, helping to improve their overall financial well

being while also working to reduce energy consumption.

Program Details •

Program Dates: January 1, 2025 – December 31, 2025 • Submission Deadline: Customers must submit rebate applications within 120 days of installing their new natural gas equipment or activating a new natural gas meter. • Eligibility: The program is exclusive to customers installing new qualified natural gas equipment; a customer who switches from electric to natural gas will not qualify. • Applicants must fill out and submit an Affordable Housing Equipment Rebate Program Eligibility form to prove their eligibility to participate, which can be found on our website at summitutilities.com/rebates. Who Can Participate? Homeowners and landlords/property management companies are eligible to participate in the Affordable Housing

ARHVACR NewsMagazine March2025

S tate, National, Chapter News State national Chapter News

Equipment Program. Homeowners must meet at least one of the following criteria: • Customer or their spouse is 65 years of age or older or • Customer qualifies for LIHEAP assistance or • Customer qualifies based on household income (see the Arkansas State Income Limits chart below). Landlords or property management companies must have tenants currently residing in their properties who meet at least one of the following criteria: • Tenant qualifies for Section 8 housing or • Tenant qualifies for LIHEAP energy assistance or • Tenant or tenant’s spouse is 65 years of age or older or • Tenant qualifies based on household income (see the Arkansas State Income Limits on the following chart). Rebate How to Apply for the Rebates To ensure customers receive their rebates promptly, an application, invoice/receipt, and program eligibility form must be submitted using one of the following methods: • Online Submission: Complete the rebate application on Summit Utilities Arkansas’ website and upload the invoice/receipt and program eligibility form.

• Email Submission: Send the completed rebate form and required documents, invoice/receipt and program eligibility form, to SummitUtilities@Clearesult.com. • Mail Submission: Mail physical copies to: Summit Utilities Rebates 16350 Felton Rd, Lansing, MI 48906 For more information, tenants can visit summitutilities.com/rebates Details on what documentation they need to provide to receive their rebate is available. For applications submitted past the 120-day deadline, rebates may still be granted if the program’s annual budget has not been exhausted. Final Thoughts As an HVAC contractor, keeping your customers informed about rebate opportunities adds value to your services but also makes energy-efficient heating more accessible. By guiding them through the application process, you can help them save money upfront while ensuring they benefit from long term efficiency gains. Encourage your customers to take advantage of the Affordable Housing Equipment Rebate Program—a win-win for their budget and the environment.

Now is a great time for customers to earn rebates on high-efficiency natural gas furnaces and water heaters! These energy-efficient systems are not just practical, they’re also fantastic choices that can truly elevate your customers’ home comfort and savings. equipment with rebates from Summit Utilities! Increase your sales of high-efficiency natural gas

Receive $100 for every qualifying rebate you submit!

Residential and small business rebates: • Up to $800 for qualifying heating systems • Up to $700 for qualifying tankless water heaters • Up to $1,700 for combination furnace plus tankless water heater Learn more at SummitUtilities.com/Rebates

Manual J

4 Hours

Continuing

Education

Current copy of Wrightsoft RightSuite Core software is required. Buy direct or from the Association. $500 annual subscription. Call for more information. 501-487-8655

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HVACR NewsMagazine March 2025

State National Chapter News

But it was far from easy. Trammell, who is now in federal prison serving a three year sentence for bank fraud, left behind a jungle of unpaid bills, including hundreds of thousands of dollars owed to the IRS. “We called all the vendors, told them what happened,” and slowly started paying the debts off, she told Arkansas Business . “We just kept at it.” The HVAC installation and service company showed a net loss for the first couple of years. “And then we eventually paid everybody back, including the IRS,” she said. The company’s revenue has increased 52% since it discovered the theft, and it now has 35 employees. Trammell, 48, pleaded guilty to one count of bank fraud and was sentenced to prison in November. A judge ordered her to repay $435,539 to AAF and she will be on probation for two years after her release. She reported to begin serving her sentence Jan. 21 in Pekin, Illinois. Creating Distractions Trammell had been referred to Arkansas Air Flow to replace an employee who was retiring. Trammell’s starting pay was $14 an hour, but it didn’t take long for her to start helping herself to the company’s money, according to her indictment. When Trammell was hired, AAF had about 15 employees. “She was the only person in the office and answered the phone,” Kelly Brown said. “I mean, that’s how small it was at that time.” Darren Brown had been in the sheet metal and the HVAC industry for more than 40 years and created AAF after his father retired from the industry.

Arkansas Air Flow Overcomes $1.8M Theft Business Rebounds

Mark Friedman – Arkansas Business

Darren and Kelly Brown, the married owners of Arkansas Air Flow, discovered that their former bookkeeper and employee, Amy Trammell, embezzled from their business over six years. (Karen E. Segrave) Arkansas Air Flow Inc. of Sherwood hired Amy Trammell in 2012 in part to handle its payroll. Within about six weeks, she was embezzling company money. By the time her thefts were discovered six years later, they had cost the heating, ventilation and air-conditioning company more than $1.8 million, Kelly Brown, the company’s CFO, said. The situation left company founder Darren Brown with two choices. He could file for bankruptcy liquidation, closing the business he’d started in 2005, or he could fight to make it profitable again. “We chose the latter,” Kelly Brown said. “It was just a fundamental approach to banking basics is what I call it. You bill, you collect.”

HVACR NewsMagazine March 2025

State National Chapter News

Inside AAF, Trammell was “very possessive of her office,” and wouldn’t let people go in it nor accept help filing paperwork, Kelly Brown said. The door to her office remained locked. “She just had control of it, and it appeared that she would create distractions so that she could not be discovered,” Brown said. Darren Brown began wondering why the company’s margins weren’t higher. Discovery Kelly Brown worked at Little Rock’s One Bank & Trust and was an authorized signature on Arkansas Air Flow’s account. On Friday, Feb. 2, 2018, Brown learned that an overdraft had occurred on the company’s account. Overdrafts had happened several times, in fact. “I had just about had it,” said Brown, who had been in banking since 1987. She felt the overdraft reflected poorly on her as the bank’s commercial loan officer and senior vice president. Brown called her husband’s company and was told that Trammell was out sick.

Trammell, costing Arkansas Air Flow more than $1.8 million. (Karen E. Segrave) Brown took a friend with a forensic accounting background and headed to AAF. “We were able to get into the computer,” she said. “My friend looked at the function in QuickBooks that was the audit function, and … you could see where [Trammell] had deleted transactions or changed the name of the vendor when the money was going to her.” Brown and her friend worked over the weekend to start piecing together what had happened. “Her little wall started crumbling,” Brown said. “We were able to dissect what charges were truly Arkansas Air Flow-related, and what charges were not.” Darren Brown confronted Trammell on the following Monday with the initial theft findings and fired her. Trammell didn’t deny the embezzlement, but said she would pay the money back, Kelly Brown said. Recovery Brown then used her three weeks’ vacation from the bank to untangle what Trammell did and did not do. The purchases Trammell made with company funds were staggering. The list included several family beach vacations, a Triton bass boat, the rental of a houseboat and the purchase of a $2,500 softball bat from New York, Brown said. Trammell also gave herself unauthorized raises and bonuses throughout the years with the amounts ranging from $100 to $5,000. The damage that Trammell left took “an inordinate amount of time” to repair. For

The binders of evidence used to prosecute Amy Trammell, who is now serving three years in a federal prison, listed more than 1,100 fraudulent transactions by Amy

HVACR NewsMagazine March 2025

State National Chapter News

instance, Brown said, customer equipment warranties went unfiled, and employee deductions were wrong or nonexistent. Thinking about the future of the company, the Browns consulted with their accountant, who told them that the company was viable. “And so he helped us seal the deal,” Brown said. “We would just hunker down and make this work.” Kelly Brown resigned from the bank and went to work for AAF. Still, the company was in a crisis. It had $6,000 in the bank to make a $20,000 payroll for about two dozen employees. The Browns transferred their personal money into the company’s account to “make it work,” she said. The Browns didn’t pay themselves for three months. The couple worked all the time, forgoing vacations and personal purchases. “We’re trying to be very strategic in what our expenses were,” Brown said. “So obviously ‘efficiency’ couldn’t be the word. ‘Survival’ was the word.” Meanwhile, Darren Brown aggressively bid for jobs. “We began to properly bill and collect accordingly,” Kelly Brown said. AAF’s business has grown since 2018 to include serving large strip centers, hotels and medical buildings. The company handles everything from fabrication to installation to follow-up or maintenance. It also has added commercial plumbing services. Trammell was charged with 29 counts of bank fraud, but 28 of them were dismissed when she pleaded guilty.

Kelly Brown said she was happy with Trammell’s sentence last year, which had been delayed because she was being treated for breast cancer, according to the court file. She said that if a business owner is going through a crisis like that experienced by AAF, the owner should seek advice from professionals and friends. “It will be humbling but share your story and listen to their advice,” she said. “Your advisers will sustain you with encouragement, offer realistic advice and graciously cheer you on to financial stability and success.” Article provided by writer , Mark Friedman, and Arkansas Business. We appreciate their contributing valuable information to the Arkansas HVACR industry. You can subscribe to Arkansas Business at this link https://arkansasbusiness.dragonforms.com/loading.do?omedasite=AB _prefs&version=1&page=1&oly_enc_id=9130A7779801A2S

News Magazine March 2025

FEATURE STORY

Incentives for Change

“ Rethinking HVAC Relevance

Politically based incentives are never a good thing to build a business on. Long term, and short-term gains jumping through government hoops whether local, or federal, is a recipe for disaster. If an opportunity shows up, be flexible enough to take advantage of the situation, but plan on resiliency as well. Seldom are proposed incentives aligned with the end product. While government proposals for incentives look enticing, (as designed) those programs will add overhead, more often than profit. For an example, there has been talk of fuel changing as a choice for homeowners, and in some cases, it will make sense. Take advantage of the conversation, be the expert in each situation. Guiding a customer to adopt heat pumps in lieu of fuel type heating is generally not recommended, but there are always exceptions. Regardless, make the right call to maintain the customer for the right reasons. Never miss the opportunity to put your foot in the door; but, remember, there are some customers that should be serviced by another company, rather than lowering performance expectations over profit.

Just under 44,000 housing units were added in Arkansas from April of 2020 until July of 2023 which is an increase of just over 3% growth. The numbers are from a spreadsheet circulated by the Arkansas Economic Development Institute (AEDI). When you consider the impact Covid put on the country, it would seem to be a reasonable number. Arkansas outpaced California’s 2.5% growth during the same period while Arkansas’s neighbor, Texas, lead the entire country with just over 6% growth during the same period.

With these facts, we remember no matter how dire the situation, there is

always a need for housing.

Inflation Reduction Act

Where there is housing, there is the need for environmental conditioning. Over the past several decades the HVAC industry has seen many trends, but in the end, well managed companies come out the other side, stronger than ever. It is important to stay focused on your company’s values and goals without respect to outside influences.

Draining the Pool of Knowledge

While our industry is advancing rapidly, some of the fundamentals are being forgotten in order to keep up with changes. Unfortunately, many in the HVAC industry don’t understand what they don’t know. Not because of

News Magazine March 2025

FEATURE STORY

intentional neglect, but because so much is being thrown at the industry so quickly-- all while hiring new people and losing institutional knowledge. New SEER 2, A2L refrigerants, multiple refrigerant choice and so on. If we understood HVAC objectives at a fundamental level, 80% of the homes wouldn’t have correctable issues. Another issue with the decline of institutional knowledge is that there are companies being tempted by supposed new technology, products or methodology, when in fact it is failed idea dressed in a different package. Construction materials have improved dramatically over the last two decades, however the processes and methods for installation are not always followed. While it is not your job to build the structure, it is important to have a general understanding of air and insulation boundary alignment at the rough- in stage. If you don’t speak up the issue will continue, and the HVAC industry will be blamed. In many instances you will know more about construction than the builder, as the builder generally depends on each individual trade to get things done correctly. Those same trades suffer just as our industry does, with limited long term knowledge.

addressing the leakage or sentencing a home to a life of extended runtimes to keep up. Homes of today have the same issues we have encountered for decades. So, we evidently haven’t passed along the knowledge, or we have gaps created by all the changes. I can’t tell you how many times we are consulted on a problematic job only to hear “this ain’t my first rodeo” when suggesting changes in processes or testing. We all must be willing to learn because the industry will never stop changing. Where duct components are connected to one another and the heating / cooling system we are doing fairly well on the sealing side. Anytime we penetrate the air and or insulation boundary with that ductwork, we are not doing so well.

Our industry isn’t that old

Less than twenty percent of homes in the late 1970’s had central air conditioning in hot and humid climate zones. It wasn’t until the late 1990’s when just over half the homes in the US have central HVAC systems installed. In consumer minds, computers are cutting edge technology, but because HVAC is out of site, I t’s out of mind and somehow is not valued. This fact dismisses the fact that electronics

Envelope vs Duct Leakage

Confusion exists when it comes to identifying envelope leakage and duct leakage. The issue of envelope leakage remains a key factor to oversizing HVAC when we see test data rather than

News Magazine March 2025

FEATURE STORY

and microprocessors are in every component from the thermostat to the expansion valve. We could do better educating our customers. As a matter of fact, computer development and HVAC share similar timelines.

Zero In on Missing Pieces to Performance While we cannot make excuses for the industry missing the mark, it is easy to understand how we continue to flounder. Building Science regarding the

HVAC industry was not generally understood as it is today and continues to

evolve. The first codes that even mention insulation levels were developed by American Society of Heating, Refrigeration and Air Conditioning Engineers (ASHRAE) 90-75 in 1975. In 1977 the Council of American Building Officials (CABO), developed MCEC 77 that was the future Model Energy Code first published in 1983. Those Model Energy Codes have been revised upward as we gain better understanding of construction and it wasn’t until 1987 that minimum efficiency requirements were set. We did not understand the necessity of sealing duct until the late 1990’s. That really translates to our industry being twenty five years old as technology stands today. This fact does not consider it was only in 2006 ICC Codes recognized duct testing for leakage as a requirement. In 2009 ICC recognized a mandate for air sealing the thermal envelope and have continually updated the code with more stringent requirements ever since. The last “next

If you were born in 1970, you probably had air conditioning of some sort by the time you were 10 years old and personal computers were developed in the mid 1980’s. Apple Power Book and IBM’s Think Pad were developed in 1991 and 1992 respectively. That means by the time you were twenty, a computer was a common tool, and mobile computing was on the horizon. These science timelines are not that far apart. I am thankful for the fact I worked in a university setting in early 1991. I was trained on something called Johnson Controls Metasys that used Microsoft MS DOS graphic interface scheduling. Without that introduction to the computing industry, I would have been scrambling to learn computer operation later in life. Few baby boomers of my day were computer literate. One year later I was learning to write code for Metasys. So, let’s move back to the topic of HVAC alone.

News Magazine March 2025

FEATURE STORY

great thing” for HVAC has been inverter technology and that occurred just over a decade ago. Currently, refrigerant education is the “not so great” next thing.

if the topic is discussed at https://hvacrschool.com/bryan-orr/ . If your questions are focused on business, I would invite you to subscribe to Ruth King’s “Contractor Cents” or “Financially Fit Business” through King’s website at https://ruthkinghvac.com/ . Both web sites have tremendous value for simply subscribing. As a bonus both HVACR school and Ruth King have podcasts you can listen to at your convenience.

Finally, as mentioned, HVAC technology has moved more quickly in the last decade than it has over the last thirty years. The way we did things twenty years ago doesn’t come close to getting the job done with today’s technology. Today’s controls on some systems require you to have a password to allow changes or repairs to be made. When I see negative comments on HVAC forums and message boards decrying the advancement of the industry and its more complicated nature, I shudder to think about the next customer those contractors and their staff serve. Today’s HVAC systems are more complicated, but I would invite you to drive a car built in the 1980’s. Autos today are more stable, easier to drive and offer much in the way of safety innovation at the most basic levels. I would invite everyone to sign up for Bryan Orr’s emails and anytime you stumble on to a question and check to see

The simple step of rethinking your knowledge base in our

industry will lead you to understand that learning the industry is never done in a few months or by one individual.

The good old days were never that good, believe me. The good new days are today, and better days are coming tomorrow. Our greatest songs

are still unsung. Hubert Humphrey