The EPA and federal government has implemented the next round of refrigeration requirements,  and outlined those for the next 2 decades. In previous years, R22 was phased out, in the next phase of the process R410A will be reduced and then discontinued altogether.

As a Controlled Air customer, we wanted to make sure you are kept abreast of the current changes. If you have a current HVAC system using R410A, we will continue to be able to maintain your system with your current refrigerant for the next 10 or more years. As the reduction in production continues there will be an increase in the cost of refrigerant. Starting in 2025 new systems installed will use the  R454B or R32 refrigerant.

QUICK FACTS:

1. Older refrigerants and equipment that use them are being phased out due to environmental impact.
2.  New equipment will have the newer refrigerants starting next year, Equipment components and legacy refrigerants will still be available, but supplies will become limited in future years and prices will increase as a result.
3. All our technicians are trained to handle both types of refrigerants.

Enacted in late 2020, the American Innovation and Manufacturing (AIM) Act directs the EPA to address HFC emissions through legislative activities.

• Decreasing HFC production and consumption;
• Promoting the adoption of next-generation technologies through industry-specific restrictions; and
• Establishing standards for managing the existing stock of HFCs and their substitutes.
• Under the first point, HFC production was initially reduced by 10% in January 2022. A much larger stepdown occurs in January 2024, when production of HFCs will be cut an additional 30%, for a total 40% reduction from the baseline. Another big reduction comes in 2029, when HFC production will be cut an additional 30%, or 70% from the baseline.
• EPA banned the use of high-GWP HFCs such as R-410A in new HVAC equipment, starting in January 2025

HVAC Refrigerant Changes 

In September 2021, the EPA released its detailed plan to drastically reduce HFC consumption from 2022 through 2036. These plans  will impact our customers as the new EPA regulations shift from R410A refrigerant to R454B or R32. R22 was perviously banned for its environmental impact with R410A being considered a better replacement. Now as environmental standards become more strict, R410A, commonly known as Puron, is a hydrofluorocarbon (HFC), is being replaced by R454B or R-32 (depending on the manufacturer), an environmentally friendly alternative that offers improved energy efficiency and reduced carbon footprint for HVAC systems. These refrigerants can provide the same cooling abilities without the high greenhouse gas and HFC emissions, making them a suitable alternative for most systems.

It’s also important to understand that existing HVAC units cannot accommodate A2L refrigerant without substantial retrofitting. With this in mind, A2L refrigerant should be used only in new systems designed explicitly with this refrigerant type. Our technicians are trained to work with all refrigerants encountered in HVAC equipment.

Leak Repair Provisions 

New refrigerant regulation also aims to minimize refrigerant leaks in HVAC units and commercial refrigeration systems by implementing strict leak repair provisions. These regulations require equipment owners and operators to promptly repair leaks when the leak rate exceeds a certain threshold, as determined by the EPA. The provisions also mandate the use of leak detection and repair practices to prevent the release of environmentally harmful refrigerants.

One significant change in EPA Section 608 pertains to restrictions on the sale of refrigerants. These provisions stipulate that only certified service technicians may purchase or handle refrigerants with a GWP exceeding a specific threshold. This ensures that only professionals with proper training in refrigerant management handle ozone-depleting refrigerants, reducing the risk of leaks and emissions.

Our highly skilled technicians are all OSHA-certified, have EPA licenses to handle refrigerants, and follow all guidelines for hazardous waste material disposal.

Impacts of New Regulations on HVAC Contractors and Technicians 

Maintenance and Recordkeeping Requirements 

The new refrigerant regulations impose updated maintenance and recordkeeping requirements to ensure proper refrigerant management. These provisions require service technicians to recover any released refrigerants during system maintenance and verify the absence of new leaks after repairs. HVAC professionals are also required to maintain detailed logs of refrigerant use, storage, and disposal to track refrigerant inventory and comply with EPA rules.

Increased Compliance and Enforcement from EPA 

With the introduction of the new refrigerant regulations, the EPA is expected to enhance its compliance and enforcement efforts. This means HVAC contractors and technicians can anticipate more frequent inspections and audits to ensure adherence to the new regulations and proper refrigerant handling. The EPA may impose strict fines and penalties on businesses found to be non-compliant. Therefore, contractors and technicians must be prepared for these inspections by obtaining the necessary certifications, using proper tools and equipment, and following the new regulations closely.

Controlled Air will stay on top of the new refrigerant requirements so you don’t have to. We will send additional news as we learn more.  In the meantime, be sure that Controlled Air is staying on top of regulations and making sure all our technicians are properly trained to handle refrigerants.

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Yanmar GHP is considered a mechanical cogeneration product and should be treated as “Combined Heat and Power system property” (CHP)  for purposes of Internal Revenue Code Section 48, under the Investment Tax Credit (ITC). 

Please consult with your tax professional for additional requirements, information and to verify your qualifications.

GHP is a great solution for upgrading HVAC systems in historical buildings with older electrical systems, minimal electrical load, or where there isn’t the opportunity to upgrade the electrical system for newer high-efficiency traditional HVAC systems. Gas systems require less electricity therefore sometimes making it the best option for converting older buildings. Additionally, they are perfect when only single-phase power is available or when electrical systems can’t be updated due to delays, cost, or availability.

In calculations, the Gas Heat pump systems saved 25-30% on cooling and 50% on heating as compared to an electric heat pump system.

Don’t hesitate to call or email for more information about GHP or a custom energy solution for your facility. We are always happy to do a walk-through of your facility and make suggestions on the more efficient way to upgrade your HVAC. Download Our GHP Flyer

The post Tax Credit Available on Yanmar Gas Heat Pumps Ends in 2024 appeared first on Controlled Air, Inc..

What does this mean for you?

If you make $150,000 in HVAC system upgrades you could potentially receive a $52,200 reduction in taxes rather than having to take the 39-year depreciation which only gets you a $1300 deduction. This does vary by situation but this change can give a business a large deduction in a single year. The deduction must be taken in the year that the equipment was installed.

What properties are qualified?

• The taxpayer or its predecessor didn’t use the property at any time before acquiring it.
• The taxpayer didn’t acquire the property from a related party.
• The taxpayer didn’t acquire the property from a component member of a controlled group of corporations.
• The taxpayer’s basis of the used property is not figured in whole or in part by reference to the adjusted basis of the property in the hands of the seller or transferor.
• The taxpayer’s basis of the used property is not figured under the provision for deciding basis of property acquired from a decedent.
• Also, the cost of the used property eligible for bonus depreciation doesn’t include the basis of property determined by reference to the basis of other property held at any time by the taxpayer (for example, in a like-kind exchange or involuntary conversion).

So in summary, if you acquired a new property that was in need of upgrades you can use the new tax benefits to offset the cost of the upgrades now, rather than spreading it over 39 years. Now is the time to make the investment and maximize your tax benefits. As always, be sure to consult with your tax professional for your best tax benefit.

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The U.S. Environmental Protection Agency (EPA) final phasedown schedule is as follows:
Drop from 51 million pounds allowed in 2014 to 22 million pounds beginning Jan. 1, 2015. Subsequently, 18 million pounds of new and imported R-22 will be allowed in 2016, 13 million pounds in 2017, 9 million pounds in 2018, and 4 million pounds in 2019. No new or imported R-22 will be allowed in the U.S. on or after Jan. 1, 2020.

Industry leaders estimate the R22 aftermarket consumption for end users to be somewhere between 50 to 60 millions pounds for 2016. With only 18 millions pounds of new R22 and an estimated 8 million pound of recycled R22, there will be a supply and demand imbalance. This will drive the price of R22 up.

It’s important to have an understanding about how these changes will impact you and to have a plan on how to address these issues either before or when a major failure occurs. The first step would be to evaluate your equipment. What is the age of the equipment? Is it the type of equipment where it’s more cost effective to replace the equipment instead of repairing when there is a major component failure?

The EPA set up regulations to ban the production of heat pumps and air conditioners that contained R-22 after December 31, 2009. HVAC equipment manufacturers discovered a loophole in the law that allowed them to manufacture and sell system components as long as these components contained no refrigerant. This loophole has recently closed and dry units will no longer be available. This change will impact businesses that have smaller R22 split systems with condensing units. Condensing units have a short lifespan so when there is a major component failure in a condensing unit, it is normally more cost effective to replace the entire condensing unit. With dry units no longer available, the first option would be to use an R410A condensing unit and add an expansion valve. In some cases switching to an R410A condensing unit will require replacing the refrigerant piping due to sizing requirements and replacing the evaporator coil. In either case, repair costs and the amount of time needed to replace a condensing unit will be driven upwards.

If you have rooftop style units or larger condensing units where normal repair practices are to replace the major components upon failures, your options are to utilize a drop in replacement refrigerant when it’s time for a major repair.

There are disadvantages to using a drop-in refrigerant. When you introduce a refrigerant that the system was not built for, you can lose some efficiency. The efficiency loss can range depending on your system and the replacement refrigerant used.

Contact us today to get a estimate on what it will take to get your equipment ready for the changeover or to upgrade your system.

Read our update on the R-22 phaseout

The post The Final Phaseout of R-22 appeared first on Controlled Air, Inc..

However, funding will not exceed the equivalent of $450 per kilowatt of nameplate rated capacity. Financial support is intended to help you achieve a fair and reasonable payback and return on investment during the life of the project compared to purchasing the equivalent amount of power, fuel oil and/or gas from your utility. If you are interesting in installing cogeneration, this funding will offer incentives that will help pay for the installation.

The post CEFIA Releases RFP for Cogeneration (CHP) Pilot Program appeared first on Controlled Air, Inc..

• Most natural gas furnaces and boilers are up to 96 percent efficient.
• Natural gas produces fewer emissions of sulfur, carbon, and nitrogen than oil, and it leaves almost no ash particles after burning.
• Natural gas costs less than heating oil and requires less maintenance.

Interested in finding out about converting? Contact us today 203-481-3531

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Here are the figures:
2012  55 mil lbs, 38% reduction
2013  63 mil lbs, 21% reduction
2014  50 mil lbs, 18% reduction

The amounts allocated are higher then originally dictated in 2009, but the price for R-22 continues to rise. One of our suppliers for refrigerant told us there is no shortage of R-22, only that people are holding on to it to drive up the price! Unfortunately as it gets closer to 2020 when R-22 is to be phased out the price will continue to climb.

The EPA will will now begin drafting the 2015-2019 allocations from 50 millions pounds to 0 pounds in 2020.

If you are running old or outdated equipment it is a good time to start planning to replace the equipment with new energy efficient models that use refrigerant other than R-22. With the rebates and incentives available and the money saved on energy it will help make the new equipment more afforable.

The post Update on R-22 Refrigerant appeared first on Controlled Air, Inc..

In addition to these incentives, Governor Malloy also announced that special funding is available, in the form of low-cost financing for eligible equipment with optional on-utility-bill repayment for customers who make energy efficiency upgrades in equipment or insulation and air sealing while renovating or reconstructing their residence or business as a result of storm damage.

The post Special Rebates & Incentives Available until 12/31/2012 appeared first on Controlled Air, Inc..

The post What is happening with Energy Efficient Funding? appeared first on Controlled Air, Inc..

With the Economy being what it is, Connecticut made some changes to the rebates and incentives available for green energy funding. Also the utilities made some changes as well. We do our best to stay up to date about all these so that we can make recommendations to get you the most out of the available funding. There have been a lot of changes, but I will just mention a few of the most important at the moment.
First of all, if you have any plans to do energy efficient upgrades do it soon! I know many of you might be waiting for the upswing in the economy, but as of 2012 they are reducing the funding by 35% and it is available on a first come first serve basis. Also 50% of the funding for 2011, has already been allocated. You don’t want to lose your opportunity to receive this funding because you hesitated too long. Another important aspect of receiving funding is you always want to talk to a CL & P or UI representative before beginning any part of the project. We can help you with this and have contacts at both utilities. You will not get considered for any funding if any part of the project has been started. Even if what has been started is not directly related it is possible to lose the opportunity. So don’t take any chances. Here are a few contacts at the UI and you can always contact us.

UI Contacts
. New Construction (ECB): Roy W. Haller (203) 499-2025
. Cool Choice: Michelle LeMoine (203) 499-5828
. Retrofit (EO): Roy W. Haller (203) 499-2025
. Express Lighting: Roy W. Haller (203) 499-5828
. Small Business: Dennis O’Connor (203) 499-3715
. Financing: Roy W. Haller (203) 499-2025
. O&M Services: Marissa Westbrook (203) 499-3314
. Load Response: Rick Rosa (203) 499-2632
. Residential Programs: Chris Ehlert (203) 499-2965
. Natural Gas Programs: Roy W. Haller (203) 499-2025
. UI Account Managers

If you have time and are considering this funding for the future, please write your legislators. Tell them they this funding is important for our economy and for the environment. If enough people write then maybe we can get the legislation changed and that 35% back.

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