AHAM's Blog

Joe McGuire: Be Aware of State Legislation

In a recent column published in appliance DESIGN magazine, AHAM President Joseph McGuire highlights AHAM’s legislative accomplishments at the state level over the past year as it fought hard for its members and worked on a variety of policy issues including Extended Producer Responsibility, energy efficiency and other issues.  

Says McGuire, “Companies most often keep their finger on the pulse of Washington, D.C., for insight into legislation and regulation that may be become law and impact their business. While the focus on Washington should remain sharp, companies should not neglect the potential of state agencies and legislatures to quickly enact laws, many times without the benefit of technical justification.  AHAM has amped up its presence in the states to counter unproductive and harmful state legislation that impacts the home appliance industry and to encourage measures which would promote and provide consumer rebates, tax credits and holidays for the purchase of efficient products.”

Click here to view the entire column.

AHAM Supports MA Bill That Would Provide Consumer Tax Credits for Energy Efficient Appliances

Today AHAM's Government Affairs Director Kevin Washington provided testimony before the Massachusetts Joint Committee on Revenue in favor of H. 1675, which would provide tax credits to residential consumers who purchase clothes washers, clothes dryers and dishwashers. AHAM also recommened to the Committee that the bill be amended to include other energy efficient appliances that are designated ENERGY STAR appliances.

Said Mr. Washington, "The typical household spends $1,900 a year on energy bills. With ENERGY STAR products, Massachusetts residents can annually save up to 30 percent – nearly $600. This amount of consumer savings adds up to lower energy production and greenhouse gas emissions equal to 50 power plants."

The complete testimony can be found here.

AHAM Joins 155 Associations on Letter to Congress Regarding the Deficit

In a letter to Congress, AHAM and a coalition of other business-oriented groups called on the Joint Select Committee on Deficit Reduction to go beyond the minimum legislative mandates in the Budget Control Act of 2011, and enact major reforms to entitlements as well as to the tax code in an effort to reduce the federal deficit and put the U.S. economy on the path towards long-term growth.

In part, the letter states: “The U.S. tax system is in desperate need of simplification and fundamental, comprehensive reform that encourages investment and employment.  Comprehensive reform of corporate and individual taxes has been urged by individuals and groups as diverse as the House Budget Committee chairman, the chairmen of the Senate and House tax-writing committees, the Treasury Department, the National Commission on Fiscal Responsibility and Reform among many others.  We believe the primary goal of tax reform should be improving the nation's long-term economic growth, which will lift Americans’ living standards and create jobs.”

Click here to view the entire letter.  Fox News, Roll Call and other media outlets ran articles about the letter on their websites.

AHAM takes on EPR at state conferences

AHAM is attending the 38^th summer legislative meeting for the American Legislative Exchange Council (ALEC), one of the three larger organizations representing state legislators around the country. The meeting in New Orleans this year is the largest ALEC conference by attendance in its 38 year history; I would eyeball somewhere around 1000 legislators, staff, and industry representatives like AHAM. The forum is proving to be an important chance for AHAM to educate and gain early support of policymakers who will be writing and voting on bills on topics affecting home appliance products this year and in 2012.

Among the main reasons we’re here is to discuss and educate lawmakers on Extended Producer Responsibility (EPR). Many states have toyed with the idea of creating product take-back programs at the end of a product’s lifecycle. While this may seem like a great idea, it is important for legislators to know that major appliances have a 90% recycling rate. We blogged about this achievement a couple months ago. The creation of additional state EPR programs may be a waste of state budgets dollars and a threat to state job markets in some cases – two issues that are definitely not lost on this assembly. But, in all cases, these decisions need to be made with a strong base of knowledge and
understanding of how some localities are handling waste.

I will report back from San Antonio next week, where I will be attending the NCSL – the National Conference of State Legislators.

AHAM Presenting Sustainability and Smart Appliance Papers at EEDAL

AHAM is participating in the 6th International Conference on Energy Efficiency in Domestic Appliances and Lighting (EEDAL) being held in Copenhagen from May 24-26.  Kevin Messner, AHAM’s vice president, government relations, is traveling to the conference next week to present papers on sustainability and smart appliances.

This year, the focus of EEDAL is on technologies that will make household energy consumption more efficient.  Government representatives and industry experts from around the globe will gather to share their knowledge and experience on energy efficiency, energy supply, climate change, smart meters and appliances, among other topics. 

Attendees can hear Kevin Messner present Sustainability – Measuring Environmental Impacts, written by Wayne Morris, AHAM vice president of division services, and Kevin Messner, on Tuesday, May 24.  Smart Appliances: The Future of Appliance Energy Efficiency, written by Kevin Messner and Chellury (Ram) Sastry of the Pacific Northwest National Laboratory, will be presented by Kevin on Wednesday, May 25.

LIVE: AHAM President Testifies Before U.S. Senate on Energy Standards

Click here between 9:30 and noon today to watch a panel, including AHAM president Joe McGuire, testify before the U.S. Senate Energy and Natural Resources Committee.

You can also copy and paste this link into your browser:

http://energy.senate.gov/public/index.cfm?FuseAction=Hearings.LiveStream

 

Appliance Industry Cites Benefits of Appliance Rebate Programs

AHAM credits the State Energy Efficient Appliance Rebate Programs (SEEARP), funded through the American Recovery and Reinvestment Act, with delivering the promised benefits of stimulating economic activity. The program has been very successful in encouraging U.S. consumers to purchase ENERGY STAR appliances, but its modest funding and complicated rollout limited its effectiveness in saving consumers energy and money.

Many AHAM members have pointed to a significant increase in demand for the ENERGY STAR appliances included in the rebate program.  AHAM’s April factory shipment report shows a nearly 20 percent increase in shipments of major home appliances compared to April 2009.  Year to date, shipments of core appliances are up 9.1 percent following four consecutive years of declines. 

Major retailers have confirmed that the rebate program has helped bring consumers back into stores.  While the $300 million funding for the rebate program was significantly less than other stimulus programs, the return of consumers to stores also helped stimulate the purchase of goods other than appliances. 

AHAM’s assessment of the SEEARP program is that it has been a success but that its modest funding and complicated rollout limited its effectiveness in saving consumers energy and money and stimulating economic activity. AHAM also recommends a single, national rebate program instead of 50 separate state programs, each requiring separate DOE approval and related administrative costs.  A consistent nationwide program would make it much easier for manufacturers to partner with retailers to develop promotional campaigns to make consumers aware of the rebates. 

Read more on AHAM's view of the SEEARP program at www.aham.org.

Update from Egypt: Montreal Protocol Meetings

The Parties of the Montreal Protocol reconvened today to continue its discussions. The morning agenda included several items that generally do not affect AHAM members such as nominations for essential-use exemptions for 2010 and 2011, amendments to the handbook on essential-use nominations, and issues related to methyl bromide.  The Technology & Economic Assessment Panel (TEAP) also presented a report that included various matters, including alternatives to HCFCs in the refrigeration and air-conditioning sectors in developing countries.

On a more pertinent note to the appliance industry, contact groups, or break out sessions were formed to create dialogue on important issues.   AHAM participated in the “High GWP alternatives to ODS and proposed amendment” contact group and presented the highlights of the North American proposal to address HFCs in the Montreal Protocol.  The group members asked questions related to the financial, legal and political impact of the North American proposal. 

**Updated with a photo from Egypt! 

  

AHAM Attending Montreal Protocol Meetings in Egypt

AHAM's VP, Government Relations, Kevin Messner, will be attending the Twenty-First Meeting of the Parties to the Montreal Protocol on Substances that Deplete the Ozone Layer from November 4-8 in Port Ghalib, Egypt.  During the meetings, AHAM will be focused on the HFC phase-down discussions and the North American amendment to deal with HFCs.

Check back next week when Kevin will be able to share some of AHAM's accomplishments during the meeting. 

Breakfast with Congressman Jason Chaffetz (R-UT)

I attended a small breakfast meeting this morning with Congressman Chaffetz, who is a Republican member from Utah and is a member of the Judiciary, Natural Resources and Oversight & Government Reform Committees.

Chaffetz is a freshman Member of Congress who says that his success in the election was due to grassroots effort and using social media outlets such as Facebook and YouTube.

I informed him about the recent release of funding for the Energy Efficient Appliance Rebate Program, in which Utah may participate if the state energy office sends their initial application to the Department of Energy by August 15.  The Congressman was not aware of the release of the solicitation for this program and appreciated learning about it.  The Congressman, in jest, was disappointed, as he just purchased a new refrigerator and cooktop.  I reassured him that there is no reason for him to have buyer’s remorse because he would be seeing savings in his utility bill due to the fact that the average energy use of a new refrigerator is about the same as a 60W light bulb left on 24 hours a day.