Statement of Larry Taylor, President, Air Conditioning Contractor of America, Arlington, Virginia

Mr. Chairman and members of the subcommittee, thank you for the opportunity for ACCA to contribute to the national dialogue on ways to conserve energy during these challenging times. In addition to serving as the national president of ACCA, I am also the owner and president of Air Rite Air Conditioning Co., in Fort Worth, Texas. ACCA is the nation’s largest trade association of those who design, install and service residential and commercial heating, ventilation, refrigeration and air conditioning systems (HVACR).

If the need to use energy more wisely wasn't clear before, it will be unmistakable after a summer of higher gasoline prices and potential electricity shortfalls. The recently released Report of the National Energy Policy Development Group, chaired by Vice President Dick Cheney, makes the challenge clear: demand for natural gas will increase by more than 50 percent in the next 20 years; similarly, demand for electricity will increase by 45 percent in the next 20 years. The need for additional energy supplies -- oil, gas and electricity -- is obvious. Just as critical are improvements to the nation's energy infrastructure, repairing and improving the means for transporting energy and energy resources throughout the country.

At the same time, Americans need to take advantage of every opportunity to conserve and use energy more wisely. With respect to products, appliances and services, the Vice President's Report makes it clear that while there have been dramatic technological advances in energy efficiencies that have resulted in significant energy savings, there is room for improvement. The Vice President's Report recommends that the President should direct the Secretary of Energy to improve the energy efficiency of appliances where such improvements are technologically feasible and economically justified. ACCA supports this recommendation and pledges to work with the Secretary of Energy to accomplish this objective.

ACCA wishes to make to point -- not made in the Vice President's Report -- that there is an even more immediate opportunity to save energy and that is by taking the simple and relatively easy steps to ensure that HVACR equipment in homes and businesses is maintained at peak efficiency.

In most homes, the HVACR equipment is the largest energy user. In businesses, HVACR equipment is typically among the top three consumers of energy.

A recent survey conducted by Proctor Engineering Group of San Rafael, CA, among 9,000 residents found that over 90% had HVACR systems that were underperforming due to one problem or another. In many cases, the problem was as simple as a dirty filter. In the commercial arena, the Consortium for Energy Efficiency reports that up to 50% more energy would be saved through proper installation, sizing and maintenance of commercial central air conditioners and heat pumps. Improving system efficiency by 10% to 20% is a conservative estimate of the impact of proper maintenance. For systems that are seldom or never serviced, the savings could reach 100%.

To achieve this efficiency, we recommend the following as the minimum requirement for system maintenance: check the system’s mechanical functions, check the air flow, check and clean the inside coil, replace the filter, straighten the outside coil fins if necessary, check for refrigerant leaks and recharge the system if necessary, clean and oil the fan motors and service other hardware, and if needed, patch and repair leaky ductwork. Studies show that one of every four dollars spent on cooling is lost through leaky ducts.

As a part of the overall strategy to achieve energy savings, ACCA urges Congress to address the issue of improved maintenance of HVACR equipment. Although we support legislation to provide tax deductions and credit for the purchase or lease of energy efficient products or equipment (S. 207, S. 595, and HR 778), nothing will have as broad or as immediate an impact as proper maintenance of HVACR equipment.

The Vice President's Report contains several recommendations that could be implemented in ways to encourage the efficiency of HVACR equipment. These include the following, with ACCA's proposed advice:

The White House National Energy Policy Report recommends that the President direct the Office of Science and Technology Policy and the president's Council of Advisors on Science and Technology to review and make recommendation on using the nation's energy resource more efficiently.

ACCA urges the Office of Science and Technology Policy and the President's Council on Science and Technology to take into account the energy savings benefits of the proper and timely maintenance of heating and air conditioning equipment.

The Report recommends that the President direct the Secretary of Energy to promote greater energy efficiency.

ACCA urges the Secretary of Energy to promote the energy savings benefits of the proper and timely maintenance of heating and air conditioning equipment.

The Advisory Group also recommends that the President direct heads of executive departments and agencies to take appropriate actions to conserve energy use at their facilities to the maximum extent consistent with the effective discharge of public responsibilities. Agencies located in regions where electricity shortages are possible should conserve, especially during periods of peak demand. Agencies should report to the President, through the Secretary of Energy, within 30 days on the conservation actions taken.

ACCA urges the President to direct heads of executive departments and agencies to take the appropriate actions to ensure that heating, ventilation and air conditioning equipment in Federal buildings is serviced regularly to ensure that it is good working order.

As energy legislation is shaped this year to address the immediate crisis and provide for long-term needs, we urge the Subcommittee not to overlook the opportunity for a significant and immediate energy savings that comes with the proper and timely maintenance of HVACR equipment. Congress can accomplish this goal by directing the appropriate Federal agencies to provide educational information to the public and by providing incentives for the regular maintenance and servicing of HVACR equipment.

The benefits are real and lasting, with long-term savings, rather than costs, to the American taxpayer.

Thank you.