STATE LEGISLATIVE & REGULATORY HOT TOPICS


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President Signs Financial Bailout, Tax Incentives
President Signs Product Protection Bill
REACH Directive Published
Albuquerque Preliminary Injunction Granted
New York State Greenhouse Gases Bill Vetoed
California Green Chemistry Initiative Signed by Governor
California RoHS Legislation Dies
ACEEE Introduces New State Energy Efficiency Policy Resource
BILL ACTIONS
EFFICIENCY MATRIX
RESOURCES
GOV’T AFFAIRS CONTACTS /
President Signs Financial Bailout, Tax Incentives
President Bush recently signed theso-called "Financial Bailout and Tax Extenders" bill after a contentious legislative battlein the U.S. House. By a vote of 263-171,the House approved the Emergency Economic Stabilization Act of 2008 (EESA)-- despitethe measure's defeat severaldays before the revote.
A key reason for EESA'sreconsideration was the addition of numerous tax incentives for businesses and consumers that were expired or set to expire. Among them were several provisions of interest to the HVACR industry,including the renewal of the residential HVAC tax creditthat expired in 2007. For taxable year 2009, new purchases of qualified furnaces, air conditioners, heat pumps and air handlers will once again be eligible for consumer tax credits ranging from $50-$300. Congress also added a new product category for next year – biomass stoves – which will be eligible for a $300 consumer tax credit if they meet at least 75% thermal efficiency.
Other provisions such as incentives for energy efficient new home construction and accelerated depreciation for energy efficiency upgrades in commercial buildings should helpimpact sales of high efficiency products. Also, qualified residential geothermal heat pumps and solar systems are eligible for consumer tax credits.
Thank you to those who made direct contact with our elected officials to educate them on the tax extenders. A full analysis of the bill is available upon request. We will continue to monitor this issue as the IRS implements the new law. LII Contact: Austin Primiano
President Signs Product Protection Bill
In August, President Bush signed into law H.R. 4040, The Consumer Product Safety Improvement Act of 2008. Although legislative enactment was driven by problems associated with toys imported from China, the end result was a comprehensive bill that significantly expanded the authority of the Consumer Product Safety Commission (CPSC). The broader manufacturing industry will now encounter several changes affecting company reporting and recall obligations – which will require increased diligence to monitor customer complaints and warranty activity. With the exception of a few provisions, the bill is effective immediately. A number of CPSC rulemakings are scheduled to begin in 2009.
The bill’s passage was highly probable due to the media coverage and public outcry associated with lead in toys. Lennox worked with the Association of Home Appliance Manufacturers to submit our opposition to key provisions, but significant movement was unattainable given the politically charged nature of the bill. Government Affairs will continue to utilize the trade association to monitor U.S. consumer product policy and participate in relevant CPSC rulemakings. LII Contact: Austin Primiano
REACH Directive Published
The European Chemicals Agency (ECHA) has published a proposed list of 16 Substances of Very High Concern (SVHC). If this process proceeds according to the plan, the first list of the SVHC will be approved on October 22, 2008. If any product (“article”) contains one (or more) of these chemicals at rates of over 0.1% weight, the manufacturer must disclose and provide “safe use” instructions to all customers after that date for products placed on the European Market. In addition the consumer advocate groups in Europe have released their “Substitute It Now” (SIN) list that contains over 300 chemicals they believe should be on the SVHC list. ECHA chose only 16 substances as candidates from the more than 1,000 that are on the European list of Persistent Bio-Toxic (PBT) chemicals. ECHA stated that 12 of the 16 are finalized for the SVHC list, and extensive discussions are underway on the remaining four chemicals. LII Contact: Kyle Gilley
Albuquerque Preliminary Injunction Granted
AHRI was granted a preliminary injunction by the U.S. District Court in the district of New Mexico against the city of Albuquerque, preventing the city from enforcing new building codes adopted by the city. The Albuquerque City Council decided in June to move forward with the controversial new energy codes adopted by the City. The original codes, adopted in 2007, only allow high efficiency heating and cooling products, including 90 percent AFUE furnaces and 15 SEER air conditioners, to be installed in homes. As amended on June 2, the codes include a provision that the ordinances be administered in such a way as to avoid conflicts with federal law. However, AHRI believed that the building codes, as amended, still violate federal preemption and filed a preliminary injunction to prevent the city from enforcing the local building codes. The court agreed and has ordered that the city may not enforce the new codes pending resolution of the case. There will be a scheduling hearing on November 5 to schedule the trial for the lawsuit. LII Contact: Lisa Mayes
New York State Greenhouse Gases Bill Vetoed
A measure to establish a state greenhouse gas (GHG) management research and development program unanimously passed both the New York state Assembly and Senate but was vetoed by Governor Patterson on September 25. A.B. 3414, under the auspices of the state energy research and development authority, would have provided grants to one or more universities or research entities in the state of New York for research that would promote new technologies and processes that would avoid, abate, mitigate, capture or sequester carbon dioxide and other greenhouse gases. The bill required the Authority to submit annual reports to the Legislature and Governor detailing the effectiveness and accomplishments of the program. A veto override requires a 2/3 vote in both chambers, but veto overrides have been extremely rare in the New York Legislature. The New York Legislature went into summer recess June 24, 2008. Both chambers may return at the call of the leadership at any time until the Legislature formally adjourns December 31. LII Contact: Lisa Mayes
California Green Chemistry Initiative Signed by Governor
On September 29 CA Governor Schwarzenegger signed into law AB 1879 and SB 509, establishing the nation’s first Green Chemistry Program. The law states that Department of Toxic Substance Control (DTSC) has until January 1, 2011 to adopt regulations to establish a process by which chemicals or chemical ingredients used in products may be identified and prioritized for consideration as chemicals of concern. It also establishes a process to determine how to best limit exposure or to reduce the hazard level posed by these chemicals. In addition, a companion bill (AB 509) required the DTSC to establish a Toxics Information Clearinghouse. The Clearinghouse is a decentralized, online system for the collection, maintenance, and distribution of specified chemical information designed to provide users with more information about toxins they may encounter. LII Contact: Lisa Mayes
California RoHS Legislation Dies
Due to the adjournment of the state legislature, the California RoHS legislation is no longer viable. AB 218 would have expanded the prohibition on the sale of all electronic devices in California to those products that are prohibited from sale in the European Union by the Reduction of Hazardous Substances (RoHS) Directive. LII Contact: Lisa Mayes
ACEEE Introduces New State Energy Efficiency Policy Resource
The American Council for an Energy-Efficient Economy (ACEEE) has unveiled a new Web resource for state policymakers and energy efficiency advocates. This site is the initial phase of ACEEE's new State Energy Efficiency Policy, an ongoing project under the umbrella of ACEEE's State Energy Efficiency Policy Activities. The site serves as an easy-to-use online database of energy efficiency policies in the states, searchable by state or by policy.
The database covers appliance standards, building codes, clean distributed generation policies, tax incentives, vehicle policies, and a host of utility-related energy efficiency information. The site currently covers information for most of the leading states. Ultimately the site will cover policies for all states and will be expanded to also cover state climate policies and smart growth initiatives.
The complete version of the Web site will roll out in conjunction with the release of ACEEE's State Energy Efficiency Scorecard for 2007/2008 in the beginning of October. ACEEE anticipates updating information on the site on a quarterly basis as new policies emerge. LII Contact: Lisa Mayes
BILL ACTIONS
Click on the link below to access recent legislative activity.
iStatelink Web Site (for login, contact Billie Rieger)
State Legislative & Regulatory information provided by Stateside Associates.
EFFICIENCY MATRIX
Click here to access the latest Lennox Efficiency Levels Matrix
RESOURCES
Related Links
·  State Legislatures and Regulatory Agencies
·  U.S. Newspapers
·  Air Conditioning Contractors of America
·  Air-Conditioning, Heating and Refrigeration Institute
·  Alliance for Responsible Atmospheric Policy
·  Association of Home Appliance Manufacturers
·  Heating, Refrigeration and Air Conditioning Institute of Canada
GOVERNMENT AFFAIRS CONTACTS
Corporate Office
2100 Lake Park Boulevard, 3E
Richardson, TX 75080
Ph: 972-497-5000
Kyle Gilley
Vice President
Government Affairs
Lisa Mayes
Director
Government Affairs / / Austin Primiano
Manager
Government Affairs

Billie Rieger

Administrative Assistant
Government Affairs