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Issue 1 - October 2013

The Advocate

Providing insights into today’s code, standard and policy activities


In this issue...

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THE BUILT ENVIRONMENT Policy Trends and Highlights Summary: Congress passed, and the President signed into law, legislation that would complete the budget for fiscal year 2013, which began October 1 of last year. There are two significant provisions in this law; (1) it included the automatic budget cuts that were required by sequestration, and (2) it gave agencies more discretion on how to manage those automatic cuts. For example, the Department of Homeland Security (DHS) was given authority to cancel furloughs for TSA employees and for Customs employees. For the first time in 4 years, both the House and Senate passed budgets. The two versions are markedly different from each other. The House would eliminate the federal deficit within 10 years, all through spending reductions, whereas the Senate would reduce the deficit – but not eliminate it – by about $1.9 trillion over 10 years. Half of that reduction would come from tax increases (unspecified) and half through spending reductions. Budgets are non-binding statements of aspirations, so it’s unlikely the two versions will be reconciled Timing: There has been a lot of activity on tax reform recently, but it’s unclear whether that activity will translate into progress. We remain skeptical that it will happen in 2013. For further information contact: Dave Modi Summary: President Obama has nominated Ernest Moniz to be the next Secretary of Energy and Gina McCarthy to be the next Administrator of EPA. Moniz gets high marks from his earlier tenure in the Department during the Clinton Administration, but McCarthy faces criticism over her aggressive posture while Assistant Administrator of EPA’s Office of Air & Radiation. Both should be confirmed. McCarthy worked in the Massachusetts Department of Environmental Protection under then-Governor Mitt Romney. Timing: Confirmation should occur in April

Environmental The Ministry of Environmental Protection announced in early March that it plans to impose pollutant emission caps on six major industries in 47 major cities. The six industries are coal-fired power generation, iron and steel, cement, non-ferrous metals, petrochemicals and chemicals. This initiative could result in enhanced opportunities for CS and ITS. Timing: When will caps be imposed? Is there one date or phased in across industries/regions? For further information contact:


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Providing insights into today’s code, standard and policy activities

Europe An Taoiseach was in Washington the week after St. Patrick’s Day, where he reiterated his earlier statement that the Irish government will N-O-T (his emphasis) raise the corporate tax rate.Ireland’s Ambassador to the U.S., Michael Collins, will be re-assigned to Germany, beginning in August.

His replacement will be Ann Anderson, who is now Ireland’s Permanent

Representative to the UN. Ambassador Anderson is highly regarded and will be Ireland’s first female Ambassador to the U.S. President Obama formally asked Congress for permission to enter into talks with the EU over a free trade agreement (FTA). The EU is expected to seek formal permission within its Council. We were successful in getting federal government procurement to be included as part of the discussions. The US Trade Representative (USTR) has formally solicited comments on products that should be eligible for accelerated tariff reductions under the FTA with Colombia. We plan to request accelerated reductions for Trane products imported into Colombia from the US. For further information contact: Dave Modi

Middle East HFCs continue to face regulatory pressure from policymakers around the world. In Europe, the European Parliament Environment Committee recently published a report proposing a gradual phase down of HFCs with specific bans for some uses. This report is more aggressive than an earlier proposal from the European Commission. Saudi Arabia announced a plan to phase out HCFCs much quicker than its obligations under the Montreal Protocol would require. The target seems to be R-22, but the Kingdom’s overall direction is unclear. We are working with the relevant authorities to get clarification. In Asia, both India and Taiwan are considering phasing out R-123 earlier than required under the Montreal Protocol. (The regulation in India was reported last month.) In North America, the US, Canada and Mexico in mid-April intend to introduce an amendment to the Montreal Protocol that would mandate a phase down of HFCs. This would be the 4th such amendment in as many years. Last year, it drew the support of 104 nations. We don’t expect it to pass this year, but it does reflect continued interest in curbing HFC use.

India For the first time India this month will host the Clean Energy Ministerial (CEM). It will be inaugurated by the Prime Minister and will count as attendees the energy ministers and staff from 20 other nations, including China, the US, Japan, the UK and Canada. Ingersoll Rand India will participate in a panel discussion on “Energy Management Systems” and will launch a Green Building case study in partnership with the Natural Resources Defense Council (NRDC). The Energy and Resources Institute (TERI) is developing renewable energy-based cooling technology in partnership with Commonwealth Scientific and Industrial Research Organization (CSIRO) of Australia and an industrial organization in India. Ingersoll Rand India is a member of TERI’s executive board. Timing: For further information contact:

Asia China and the EU are expected to begin discussions this year on a possible Free Trade Agreement (FTA) between the two. The EU has been a major source of foreign direct investment in China and an attractive destination for China’s outbound direct investment.



Providing insights into today’s code, standard and policy activities

Codes and Standards Trends and Highlights DOE Rule-Making on Energy Efficiency (CS, ITS, RS) USA The Department of Energy is active on a number of energy efficiency rule-makings on products of interest to the company; • Air compressors (ITS): considering whether to create minimum performance standards for air compressors (none exist today). For further information contact: Brian Freeman. • Fans and blowers (CS): creating a framework for regulating fans and blowers which could impact a broad swath of Trane offerings and possibly TK. For further information contact: Ron Cosby. • Furnaces (RS): we expect a new rulemaking process for residential furnaces to begin shortly. For further information contact: Jim Vershaw. • Unitary systems (5-63 tons, CS): considering revising the test procedure and performance standard. For further information contact: Jill Hootman. • Battery chargers (ITS): we expect regulations, for the first time, for battery chargers used in both hand tools and golf cars. For further information on golf cars contact: Paul Romanello, hand tools John Linehan. Timing: For further information contact: Not saying an overall PoC makes this seem there is no central management, which is not true.

Asia China left its projected 2013 GDP growth rate unchanged at about 7.5%. This is the second year in a row that China predicts a growth rate below the 8% it had targeted for the past decade or so. China’s new Premier, Li Keqiang, said that the 3 main objectives of the new government over the next five years will be, (1) maintain strong economic growth, (2) improve the standard of living throughout the country, and (3) safeguard social justice.


TRANSPORTATION Policy Trends and Highlights Europe Electric Vehicles (ITS/Club Car) The Finance Ministry this month is expected to extend a subsidy program for manufacturers of electric vehicles. About 10.1 million USD will be allocated for the revised subsidy. Timing: need also to say how long subsidy will be extended for (presumably until the funds are gone). For further information contact:



Providing insights into today’s code, standard and policy activities

FEATURES & Other Food Safety (CS) China plans to implement a new food safety monitoring system this year. The program is designed to improve the quality of food products and restore customer confidence in domestic brands, and should be a boon to the development of cold chain infrastructure. Timing: Later this year, when exactly and what happens? Is it that carriers are charged with complying by the end of the year, or that a law takes effect but only comes into force later?

Smart City (ST) China may add another 50 pilot cities to the nation’s smart cities project over the next three months. The Smart City project is designed to advance the nation’s urbanization and to develop industries such as telecommunications and high-tech infrastructure. It is expected to drive about 2 trillion yuan ($322 billion) in investment by 2015. Smart City expansion in China could result in enhanced opportunities for ST for its smart security systems.



Providing insights into today’s code, standard and policy activities
















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Advocate 9 10 13 (rough draft 2)  

Gus Test

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