Joe Kalina – Introduction

My name is Joe Kalina. I work for Gilbar. I’m a sales engineer. I focus on working with engineers, contractors, developers and owners. I work a lot on the engineering side to design systems, select equipment, and think outside the box to develop new equipment, especially for some of the more challenging projects we have as of late with electrification projects and the limited infrastructure to support those. Leading into why New York City is different, with Local on 97 and the various initiatives in place requiring us to electrify new and existing buildings, there’s not really enough power to do that very often. So, we’re trying to figure out unique ways to apply various types of equipment with energy recovery or heat pumps (water source and air source), and geothermal to be able to do what New York City is trying to see us do.

Tell us a little bit about what the sales side of that process looks like; the selling of HVAC equipment for large buildings and particularly in New York City.

I’ll come at it from two different angles. One would be a typical plan and spec job. Let’s say one of the larger engineers in the city designs XYZ Ave. which is some 70-story, super tall building. Generally, one of us would have been working with that engineer from the start to help with design. But, from a sales point of view, a contractor or an owner would generally send us the plan and spec drawings and ask us to take a look at it. We would start pricing the equipment based on what’s on there. We would talk with them about a schedule, as far as when they expect the building to be built, when they would expect to have the equipment on site, whether it would need to be stored or not, when they expect to have it started up, etc. A lot of that ties into pricing and ensuring we give them what they expect.

Something that we’ve been dealing with, for example, are refrigerant phase-outs. If a job is getting pushed out to 2028, we can’t necessarily give them the equipment on their drawings from 2022 that they were expecting to purchase. So, a lot of this comes into the conversation to ensure we’re giving them what they expect.

Another side of it would be more of a design build or owner-direct opportunity development. Let’s say they come to us with an existing building and they “Hey, my cooling tower is dying. My chillers are 40 years old. I know we have to do something here. What would you guys recommend?” We would go to their building; we would walk through it with them and assess what they have on-site. We would assess the rigging path, which is something that isn’t talked about nearly enough, especially with New York City (and our vast amounts of space everywhere). We would walk them through the different types of systems and propose how they could be implemented in their building and then dive into that more later on with an engineer from a design standpoint to see what’s truly feasible.

Gil-Bar is very well known in the city. This is a highly technical field, but it also comes down to relationships and customers knowing that we can deliver on certain things. Tell us a little bit about what they like about Gil-Bar in particular and working with us in New York City.

I think Gil-Bar has a few things that are unique compared to most other Rep firms and most other places you can get HVAC equipment. One would be that the people who work here, in general, are incredible. They’re at the top of their league as far as the people you’d want to support you, whether it’s from a technical aspect or from a sales and support aspect. People come to Gil-Bar because they trust us to do everything for them and stand by them from pre-sale, through the sale, after the sale, 20 years later when they want to replace the equipment, and so on. We’re not only thinking outside the box from an engineering standpoint to make sure we can give them the best equipment for the best application as efficiently as possible. We’re there the entire time, and if there are issues afterwards, they know we’re going to be there on-site to help them fix it. They know we’re going to be there if they call us in five years and say, “Hey, this popped up, what can we do?” We’re going to show up and help support them no matter what. That’s really what sets us apart, our support along with us being able to think outside the box in our engineering prowess.

Ambient has other partners outside of Applied Sales as well, such as in service and commissioning. Do you find that’s also an advantage, having those kinds of resources available outside Gil-Bar, in different areas?

Having multiple arms of Gil-Bar under ambient, whether it be Veritas or MIH (service and commissioning), is incredibly helpful. Customers know we’re going to be there to support them with a full range of services, maintenance, and guidance to help rig equipment. Being there after the fact with commissioning, which is such a broad topic in and of itself, generally isn’t taken care of the way it should in a lot of buildings anyway. So, knowing that we have that to support them, and then having upwards of 40 manufacturers on our line card, helps us create the right fit in terms of having to think outside the box or not for a particular building. Even if there are lead time issues, or unexpected tariffs popping up, or anything like that, we’re able to pivot with equipment types and move around between factories to be able to give them what they want and keep it where they expected.

Transitioning to the technical side, we have a broad range of customers, and they all have different needs. Some on a particular job might care about efficiency, a lot of them might care about straight up cost or particular job. Then there are things like the rigging path you mentioned. Tell me some of the challenges that you might run into on a regular basis with clients that we often can fix, or that we’re experts at.

Thinking of some things that have come up recently, a popular building conversion design now is converting office to residential. Alot of these buildings are in Fi-Di with these wacky footprints and they’re all over the place. For these instances, we’re looking at what the infrastructure is currently and what the proposed new system types are. They may not necessarily line up from a feasibility and cost standpoint.

For example, if we’re trying to apply XYZ system where there’s already existing condenser water piping and we’re running all new refrigerant piping everywhere, it’s going to cost an arm and a leg, versus being able to utilize the piping they already have, which may be completely fine, and then doing a heat pump chiller or something like that.

The other thing I would say comes back to rigging. I’m working on a job right now that you would think at face value is pretty simple: “We want to replace our rooftop unit”, except the rooftop unit is on the roof of a 64-story building, which a crane can’t reach. So in reality, selecting a packaged rooftop unit ends up being a full knockdown, custom air handler that has to go through these weird 3-foot wide hallways around these ridiculous tight corners, along with a full knockdown custom condensing unit to mate to it.

It’s all heat pump; all energy recovery still, but that completely changes the design and outcome of the job compared to a packaged rooftop unit. From that standpoint, it’s also setting expectations because it also costs a lot more money to do that. Is that in the budget for this year? Do we need to walk the owner through an ROI and maybe have a conversation about moving this to next year, and for now do $5000 of short-term fixes with MIH to limp it through the next year? Let’s see what’s actually feasible and what works for them.

I’m wondering if you want to talk about geothermal, in terms of HVAC technology.

I touched on how there are jobs that were designed as early as 2020. Some of these jobs even go back to 2018. These drawings that are 8-10 years old may get sent to us to bid or the client sends it to us and says, “Does your pricing still stick? Do your designs still stick?” In reality, the refrigerant for the equipment specified has been phased out for the last year. Because of that, maybe the equipment’s getting larger. Maybe we need to do an entirely different design, which then sends their budget way over what they expected 3-4 years ago.

As a result, a lot of these jobs are pivoting towards looking at geothermal for example, which wasn’t available four or five years ago. There were no people that could drill wells efficiently 400 or 500 hundred feet in downtown Brooklyn to be able to achieve some of these high-rise buildings and make it cost effective. So, some of the things we’re looking at now are those jobs that were five years old that are suddenly coming back. Maybe they’ve changed hands of ownership. Maybe they sold off the property and kept the old design. Maybe we reassess that for geothermal, because that’s enabled us to make a lot of very large buildings right along Brooklyn’s waterfront work. There are many more people now making drilling more achievable within a set budget, especially with New York City’s electrification and Local Law 97 expectations and requirements. Geothermal is helping us offset a lot of the grid load and still achieve the efficiency ratings they want us to with water source heat pumps, water-cooled VRF, or other various types of applications we can do for a high-rise building.

New York City is the market leader in a lot of ways, so if we see something market-changing it’s probably going to be around here or someplace similar. When you start thinking about the next 5 to 10 years, what do you see as a game changer, either a technology or a process in the industry that’s going to change everything?

I think it’s incredible looking back 8 to 10 years, seeing what kind of geothermal jobs there are now. We worked on 1 Java St. for example. 1515 Surf Ave. is another one. These huge jobs in Brooklyn where they are drilling these wells and you ask, “how is this even possible?” Myself, 10 years ago, would have thought it was ridiculous if someone mentioned that to me. Now moving forward, over the next 5-10 years at least, district geothermal will be the next path as far as large scale electrification applications to one, make it less cost prohibitive, and two, have it be applied to existing buildings as well that are right on the cusp of having that infrastructure available.

It’s never going to be possible to apply air source heat pumps to them and require a complete electrical infrastructure upgrade for every building. You may have seen as you drive down the West Side Highway or any of these places, that these various developments of 16 buildings that are all the same 10 to 15 story building have just been sitting there for 30 years. I think trying to assess those now moving forward from a district geothermal standpoint, especially farther out, getting out onto the island or upstate, going up towards Westchester will be something we see more.

Another thing that’s coming up more is that we have a building we’re trying to revamp into an office building, residential building, or even hospitals now.

“We want to replace all our equipment.”

“We want to make stuff heat pump.”

“We want to make it more efficient.”

Those are some of the high-level keywords we hear all the time. The question is how do we do it? How do we make it work?

A lot of these projects start off by proposing some type of air source heat pump solution. Many times, they’re not able to make that work because it requires a tremendous electrical infrastructure upgrade just from replacing the equipment they have. Let’s say they have a regular condensing unit paired to an air handler with ADX coil and a hot water heating coil in it. We may propose replacing it with VRF connecting units and a new air handler. Now the hot water is being generated by a new air source heat pump, for example, a split cascade system that we have. We’ll figure out that now instead of it requiring 150 amps, it’s at 400 amps. Oftentimes what ends up being presented is some form of energy recovery. It’s important to talk about the different ways we can implement that and what’s realistic and what may not be for every project. Energy recovery wheels, run around loops, and heat pipes, just to name a few. Each of those have their own place. In a healthcare setting where we want no cross contamination, we’ll most commonly use runaround loops so that we have a coil in the exhaust Airstream. At any given time, there are various exhaust ducts throughout the building being vented with energy we can recover. We can throw in a Konvekta system, or various other types of custom runaround loop systems with exhaust coils in those airstreams. We can then put the other coil in the air handler so that we’re running water with glycol between the exhaust Airstream and the supplier stream and the air handler, recovering heat that would just be rejected from the building, and with no cross contamination. Energy recovery wheels are another one, which are probably the most common type of energy recovery device that’s implemented nowadays. It’s incredibly effective from a cost standpoint compared to the energy we can save with it. Those help us bring down our electrical load, because instead of having an 80-ton air handler, we’re now recovering, say, 30 tons, so now we only need a 50-ton air handler. So instead of it being at 400 amps of load, we’re only at 250.

That’s what makes the project achievable.

Great. Thanks for your time today, Joe.

Thank you. Appreciate it.

By: Ambient Enterprises

Ambient Enterprises, the parent of HVAC sales representatives such as Gil-Bar, APA HVAC Technologies, Mechanical Technologies, H.C. Nye, DMG HVAC , and Johnson Barrow shared it’s 2024 sustainability report Thursday through its site.

The report focuses on the company’s environmental responsibility initiatives and highlights its efforts to incorporate sustainable practices nation-wide, while providing comfort and safety to clients. Overall, the HVAC collective aims to create a greener future by advancing sustainability within the wider HVAC industry.

The report also highlights the company’s peer education initiatives on both the East and West Coasts, offering comprehensive learning opportunities for industry professionals.

With the release of the 2024 report, Jenna Prasad, Sustainability Engineer at Ambient, answered a few questions regarding the HVAC group’s sustainability program.

Q&A With Jenna Prasad, Head of Sustainability at Ambient

What is Ambient’s position on sustainability?

Spanning 15 states and two coasts, Ambient and our brand partners are united by the same core value: our people. Our mission is to create a better world for our employees, manufacturers, customers, and communities. In the face of issues like climate change, pollution, and public health challenges, sustainability can’t just be a consideration or an afterthought. Instead, we integrate our commitment to environmental and social responsibility into our operations, business model, and decision-making processes.

How has Ambient’s sustainability program grown over the last year?

The development of our sustainability initiative mirrors the expansion of Ambient itself. Since 2021, our presence, market, and reach have more than doubled, and we’ve transitioned from tracking the carbon footprint of 11 offices and one fleet to that of over 40 offices and seven fleets nationwide. This growth brings challenges, but it also introduces fresh perspectives and new opportunities; our brand partners are equally invested in sustainable design and operations, and they continue to foster the initiative’s growth across all locations.

How does Ambient support customers through sustainable HVAC solutions?

HVAC systems play a significant role in building energy consumption and greenhouse gas emissions– and they’re also vital to health, safety, and comfortability in our homes, schools, hospitals, and workplaces. It’s our job, and that of the entire construction industry, to protect our natural environment while prioritizing the wellbeing of our clients and communities within these spaces. Our customers know this, too, which is why so many of them have committed to the incorporation of emissions reduction and energy management strategies in their projects. We help our clients achieve their sustainability commitments by actively promoting the most cutting-edge, energy-efficient technologies available to the market. But innovative tech isn’t enough. Our true strength lies in our ability to provide expertise through all stages of a project; from initial design to installation, operations, and service, we’re able to support the integration of sustainable principles from start to finish.

How does Ambient support sustainability through peer education?

Part of developing a better future for our communities lies in support and active engagement. One way we do so is by offering comprehensive educational resources to our community members. Through our peer education programs, which operate on both the East and West Coasts, we provide in-person and online learning opportunities for industry professionals across all backgrounds and regions. These programs cover a wide range of industry-relevant topics and are often hosted in partnership with top manufacturers.

By: Jenna Prasad, Sustainability Engineer, Ambient

The shift towards electric vehicles (EVs) is rapidly transforming the transportation landscape, and as a key stakeholder in the build environment, it’s crucial for property owners, consulting engineers, and contractors to recognize and capitalize on the benefits of investing in EV charging infrastructure. Here, we’ll delve into the urgency behind this transition and outline some reasons for property owners and developers to embrace the EV revolution.

Transportation Emissions and the Need for Change

Transportation, notably cars and trucks, has long been a major contributor to greenhouse gas (GHG) emissions. According to the Inventory of U.S. Greenhouse Gas Emissions, transportation accounted for 29% of total GHG emissions in the U.S. in 2021. Notably, light-duty vehicles were responsible for 58% of this, with medium- and heavy-duty trucks contributing 23% to total transportation emissions. To combat climate change effectively, there’s a critical need for widespread vehicle electrification.

Why Invest in EV Charging For Your Building?

Environmental and Health Benefits

• Contributing to community CO2 reduction efforts.
• EVs decrease air pollution, fostering cleaner air quality
• Enhancing overall energy efficiency.

Public Commitment to Sustainability

• Attracting environmentally conscious employees, clients, and tenants.

Property Value Enhancement

• The addition of EV chargers can increase property value.

Potential Additional Revenue Stream

• Charging fees can offset the initial investment in charger technology.

Encouraging EV Adoption

• Employees/tenants are more likely to switch to electric vehicles.
• Reducing Scope 3 CO2 emissions related to employee commuting.

Investment in Sustainable Development

• Seizing opportunities in the exponentially growing EV market.

Leveraging Incentives

• Utilizing utility rebates, tax credits, and additional funding programs.

How Companies are Supporting the Transition

Ambient, a national HVAC solutions provider with companies such as Gil-Bar and Mechanical Technologies, recognizes the pivotal role that EV charging plays in nationwide efforts to embrace sustainability. In partnership with ABB E-mobility, Ambient and its companies offer comprehensive EV charging solutions for multifamily residential and commercial projects.

So Where Does This Leave Us?

Investing in EV charging infrastructure is not just a responsible environmental choice but a strategic business decision for building owners, consulting engineers, and contractors. Beyond aligning with sustainability goals, it enhances property values, attracts eco-conscious stakeholders, and positions businesses at the forefront of a growing market. With the support of companies like Ambient and ABB, supporting EV charging for tenants, employees, and guests becomes a tangible reality for the build environment in New York and beyond.

Learn More About…
Ambient Enterprises

By: Jenna Prasad, Sustainability Engineer, Ambient Enterprises

As we enter 2024, all eyes turn to policymakers as they intensify commitments to climate action. Municipal, state, and national governments across the U.S. continue to push for decarbonization and energy efficiency in the built industry through increasingly strict regulations. Building owners, contractors, and engineers face a profoundly shifting landscape dictated by the implementation and enforcement of these rulings and therefore must remain proactive as compliance deadlines approach. As businesses prepare to meet these policies head-on, an understanding of current and upcoming climate regulations is crucial to navigating this new era.

In New York City, Local Law 97 stands out as one of the most prominent—and stringent—emissions reduction laws in the country. A subset of the 2019 Climate Mobilization Act, Local Law 97 requires buildings larger than 25,000 square feet to meet new greenhouse gas emissions, aiming to reduce NYC building emissions 40% by 2030 and 80% by 2050. These emissions limits and energy efficiency standards begin in 2024, with even stricter carbon caps slated for implementation starting in 2030. Building owners are responding by implementing energy conservation measures, transitioning to lower-carbon fuels, and undergoing HVAC systems electrification and retrofits.

Alongside NYC’s efforts to reduce building emissions is a push to phase out fossil fuels. Local Law 154, passed in late 2021, sets carbon limits for new constructions and gut renovations, essentially prohibiting the use of fossil fuels. These requirements are enforced starting in 2024 with low-rise buildings and in 2027 for buildings with seven stories or more.

NYC is not the only city making significant strides toward greener buildings. Boston’s Building Energy Reporting and Disclosure Ordinance (BERDO) 2.0, adopted in 2021, established comparable emissions limits, which are enforced beginning in 2025 for buildings larger than 35,000 square feet and in 2030 for buildings exceeding 20,000 square feet. Similarly, Washington D.C. also established a climate goal to reduce greenhouse gas emissions by 50% in 2032, which is upheld by the Building Energy Performance Standard (BEPS) Program introduced in the Clean Energy DC Omnibus Act.

In addition to state laws, environmental efforts are underway on a national scale. One target of national policy is refrigerant, which can contribute heavily to a building’s greenhouse gas emissions through leakages. Introduced in 2020, the American Innovation and Manufacturing (AIM) Act intends to address the use of hydrofluorocarbons (HFCs), which are greenhouse gases with high global warming potentials (GWPs; used to measure the environmental impact of a greenhouse gas in comparison to carbon dioxide) that are commonly used as refrigerants. The EPA (Environmental Protection Agency), authorized by the AIM Act, issued a final rule on the phasedown of these gases, restricting the sale, distribution, import, and export of high-GWP HFCs, including R-410A, one of the most popular refrigerants internationally. Starting in 2025, refrigerant GWP for residential and commercial air conditioners, heat pumps, and chillers must be less than 700. Similar restrictions are in place for variable refrigerant flow (VRF) systems and data centers, with enforcement beginning in 2026 and 2027 respectively. Many manufacturers are already transitioning to more eco-friendly refrigerants, such as R-744 and R-454B, for use in their products.

The most anticipated upcoming regulation facing corporate America is from the Securities and Exchange Commission (SEC). Initially proposed in March 2022, the SEC is in the process of developing a national climate disclosure rule, which will require publicly traded companies to report on annual greenhouse gas emissions and climate-related financial risks. Such a rule is intended both to encourage companies to take emissions-reduction action and to prevent “greenwashing,” or making false claims about sustainability and positive environmental impact. Although it was initially anticipated for October 2023, the final ruling has been delayed; a release in early 2024 is now projected, in which case the requirements will likely go into effect in 2026.

One state, however, is not waiting around for an impending SEC ruling; in September 2023, California legislation passed two climate disclosure bills enforcing emissions and risk reporting for both public and private companies. The first is the Climate Corporate Data Accountability Act, which requires companies doing business in California with revenues of one billion dollars or more to disclose their annual greenhouse gas emissions beginning in 2026. The second law is the Climate-Related Risk Disclosure Act, which requires companies doing business in California with revenues exceeding $500 million dollars to report biennially on climate-related financial risks starting in 2026. Both bills were signed into law in October 2023 by California Governor Gavin Newsom, and although they are still subject to legal challenges, these disclosure regulations indicate a nationwide shift toward actionable climate change mitigation.

Innovation and modernization in the built environment are actively being propelled by legislative developments at all levels of government. These regulations, both current and future, emphasize a shared responsibility to integrate environmental stewardship into the engineering and construction landscapes. If climate action is taken through solutions like electrification, refrigerant management, and carbon footprint reduction, the industry will align itself with a path of resiliency and sustainability in pursuit of a greener future.

Learn More About…

Ambient Enterprises

By Joe Kalina, Sales Engineer, Gil-Bar Industries

As the world grapples with the consequences of climate change, innovative solutions are emerging to mitigate the environmental impact of traditional HVAC systems. One solution gaining momentum is geothermal heating and cooling. This revolutionary approach taps into the Earth’s natural heat reservoirs, offering a sustainable and efficient alternative to conventional HVAC.

A recent CNN article highlights the increasing adoption of geothermal systems in the heart of New York City, where extreme heat events are becoming more frequent. The city, known for its towering skyscrapers and bustling commercial spaces, is turning to geothermal technology to tackle rising temperatures, reduce its carbon footprint, ease strain on the electrical grid, and meet carbon reduction goals set forth by the Climate Act.

Geothermal systems operate by harnessing the Earth’s internal temperature. Unlike traditional HVAC systems that mainly rely on fossil fuels for heating, geothermal designs have a greener, lower-carbon-emitting approach. Geothermal systems operate by utilizing the Earth’s consistent internal temperature to transfer or extract heat from the ground. This translates to a substantial reduction in energy needed to move heat from one source to another, ultimately leading to more a sustainable infrastructure. By stabilizing the source where the heat is pulled from, we can optimize the mechanical systems doing the work. Although the initial installation may seem like a more involved process compared to traditional HVAC, the long-term savings are substantial. These systems also boast lower operational and maintenance costs, making them a wise investment for organizations looking to cut utility expenses over the life span of the building. With geothermal systems providing lower environmental strain and lower costs for building owners, it’s really no surprise that we’ve seen the increase in adoption that we have over recent years.

The cost savings and sustainability aspects of geothermal have also led to advancements in the technology itself and are contributing to its widespread adoption. Enhanced drilling techniques, improved heat exchangers, and smarter control systems are making these systems more accessible and efficient. In turn, commercial buildings are increasingly turning to this solution to meet their needs.

While geothermal may present a promising future, there are challenges that still exist. The availability of suitable underground conditions and upfront installation costs can be barriers for some businesses. That won’t be for long though. Government incentives and a growing awareness of the long-term benefits are creating opportunities for expansion of these types of systems in the commercial setting.

Geothermal represents a beacon of hope in the quest for sustainable, environmentally friendly, and profitable solutions in a world of growing regulation. New York City’s adoption of geothermal technology at 1 Java Street only underscores its potential to address the dual challenges of extreme weather and carbon emissions. As technology continues to advance and awareness grows, we’re likely to see it become a cornerstone of the green building revolution, ushering in a new era of energy-efficient and eco-friendly commercial spaces.