Things You Didn’t Know About HVAC, for Engineers & Owners

 

 

 

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.

 

HVAC Collective Ambient Releases 2024 Sustainability Report

By: Ambient Enterprises

Ambient Enterprises, the parent of HVAC sales representatives such as Gil-BarAPA HVAC TechnologiesMechanical TechnologiesH.C. NyeDMG 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.

Stay Cool, Go Green

Summer is almost here, and temperatures are rising across the country. As building owners, property managers, and operators think about turning on the AC, they should prioritize maintenance on their HVAC systems to ensure they’re in top shape for the season. Beyond avoiding a dreaded cooling unit breakdown in the sweltering heat, scheduling maintenance can have many environmental benefits.

 

Optimization for Energy Efficiency

It’s well-known that keeping your HVAC systems at peak performance can help cut costs; the better the system works, the less energy it requires to do its job, resulting in lowered energy bills. Reducing equipment energy consumption due to proper maintenance subsequently decreases greenhouse gas emissions, lightening your carbon footprint.

Emissions Reduction from Refrigerant Leaks

Routine maintenance plays a large role in minimizing greenhouse gas emissions from refrigerant leaks. Through regular leak detection tests and inspections, it’s easy to prevent the damaging impact of refrigerants on the atmosphere.

Water Savings

One of the biggest culprits of water loss in cooling systems is evaporation. As water evaporates, the dirt and bacteria that are left behind need to be drained and replaced with fresh water. Increasing energy efficiency through maintenance can help lessen water waste by decreasing the need to drain and replace concentrated water; reducing thermal energy consumption consequently reduces evaporation.

Increased Equipment Lifespan

Repairs and replacements can be costly and time-consuming. Identifying and addressing minor issues before they develop into major problems can help extend the equipment’s lifespan. Doing so lessens the need for old equipment disposal and new purchases, reducing waste and conserving resources.

 

HVAC systems maintenance not only prevents unplanned repair costs—it also promotes responsible energy use and enhances the well-being of all occupants. Investing in routine maintenance will keep you cool and comfortable this summer, all while helping you achieve your environmental goals.

Save Energy, Save Money

 

New York, April 25th As tax season rolls around, many dread the complex paperwork and looming deadlines. However, there’s a silver lining for property owners and designers making energy efficiency upgrades. The federal government offers several tax incentives aimed at supporting decarbonization and combating climate change within the built environment.

 

The Inflation Reduction Act (IRA) of 2022

Dubbed the most significant climate action ever taken by Congress, the IRA allocates over $300 million towards clean energy and climate mitigation initiatives. This funding has introduced numerous tax credits accessible to both commercial and residential property owners nationwide.

 

Investment Tax Credit (ITC) for Energy Property

Available until the end of 2024, this tax credit benefits owners who implement energy property, like geothermal heat pumps. Geothermal projects exceeding 1 megawatt (MW) can secure a 6% tax credit, potentially increasing to 30% if they meet certain wage and apprenticeship criteria. Smaller projects under 1 MW automatically qualify for the 30% tax credit, with the possibility of reaching a 70% credit when all additional requirements are satisfied. From 2025, the ITC will transition to the Clean Electricity Investment Tax Credit.

 

Bonus Credits for Sustainable Practices

 

  1. Domestic Content: This bonus rewards projects incorporating over 40% domestically manufactured materials. Larger projects can earn a 2-10% credit, while smaller ones could receive up to 10%.
  2. Energy Communities: Projects developed in brownfield sites or areas impacted by high fossil fuel employment/unemployment can obtain up to a 10% additional credit.
  3. Low-Income Communities: Small-scale solar and wind initiatives in low-income areas are eligible for up to a 20% bonus credit.

 

Additional Incentives

 

  • Clean Electricity Investment Tax Credit (2025-2032): This replaces the previous ITC for properties investing in zero-emission energy production, with similar benefits and bonus opportunities.
  • Alternative Fuel Vehicle Refueling Property Credit (2023-2032): Applies to new installations of EV charging stations and other alternative fuel refueling equipment, with credits up to $100,000 per item.
  • Energy Efficient Homes Tax Credit (2023-2032): Contractors building new, qualified energy-efficient residences can receive up to $5,000 per property, depending on the certification standards met.
  • Energy Efficient Commercial Buildings Deduction: A permanent deduction that significantly benefits commercial property owners investing in energy-efficient installations, with enhanced benefits for projects from 2023 onward.

These incentives not only promote sustainable development but also provide financial relief for those investing in green technology. As we progress, additional federal tax incentives and state or utility rebates are expected to surface, further supporting energy-efficient upgrades.

Refrigerant Transition

New York, March 22nd As the construction industry moves towards sustainability, one of the significant changes underway is the transition to low Global Warming Potential (GWP) refrigerants in Heating, Ventilation, and Air Conditioning (HVAC) systems. This shift is driven by environmental concerns and regulatory mandates aiming to phase out high-GWP refrigerants like R-410A and R-134A. The spotlight is now on low-GWP alternatives such as R-454B, which promise a greener future for HVAC systems.


Legislative Background: A Global and National Response

 

The push towards low-GWP refrigerants is rooted in global and national legislative efforts:

  1. 2016 Kigali Amendment to the Montreal Protocol: This global agreement focuses on the phasedown of hydrofluorocarbons (HFCs), potent greenhouse gases often used as refrigerants. HFCs have been linked to significant contributions to global warming, measured by their Global Warming Potential (GWP).
  2. 2020 American Innovation and Manufacturing (AIM) Act: In the United States, this act mandates a phasedown of HFCs by 85% by 2036, aligning with the global initiative to reduce the environmental impact of refrigerants.
  3. 2023 EPA Technology Transitions Program Final Rule: This rule specifically targets the HVAC industry, restricting the use of high-GWP HFCs in air conditioning and heat pump products and equipment. Starting in 2025, the use of refrigerants with a GWP higher than 700 will be banned for certain HVAC systems.


Compliance Timeline for HVAC Systems

 

The transition to low-GWP refrigerants follows a structured timeline, focusing on different types of HVAC systems:

  • Jan 1, 2025: Residential and light commercial air conditioning and heat pump systems, as well as chillers, are affected. New systems using refrigerants with a GWP above 700 can be installed until Jan 1, 2026, as long as all components are manufactured before Jan 1, 2025.
  • Jan 1, 2026: Variable Refrigerant Flow (VRF) systems will need to comply with the new regulations.
  • Jan 1, 2027: Data centers are expected to transition to low-GWP refrigerants.


New vs. Existing HVAC Systems

 

It’s important to note that the Technology Transitions Program applies only to new HVAC systems. Existing systems can continue to use high-GWP refrigerants, although the supply of these refrigerants is rapidly decreasing, and costs are expected to rise due to restricted manufacturing capabilities. However, new high-GWP components needed for repairing existing systems can still be manufactured, sold, and distributed.

Implications for Clients and the Industry

 

As we navigate this transition, it’s crucial for clients and industry professionals to stay informed and proactive:

  • Equipment Purchases: If you’re purchasing equipment for a new system, ensure that you’re aware of the refrigerant being used. Transitioning to low-GWP products will help ensure compliance with new regulations.
  • Timely Orders: For manufacturers still offering R-410A equipment, orders should be placed promptly. Equipment containing R-410A must be manufactured before the end of 2024.

The shift to low-GWP refrigerants represents a significant step towards a more sustainable and environmentally friendly HVAC industry. By staying informed and making strategic decisions, we can collectively contribute to a greener future.

Revolutionizing Real Estate: The Compelling Case for Investing in EV Charging Infrastructure

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.

 

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Ambient Enterprises

Construction and Climate Policy, Local to National

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.

 

 

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Ambient Enterprises

Ambient Releases 2023 Emissions Update

New York, Dec. 29 Ambient Enterprises, the parent of HVAC sales representatives such as Gil-Bar, APA HVAC Technologies, Mechanical Technologies, H.C. Nye, and recently DMG HVAC and Johnson Barrow, shared it’s 2023 emissions report Friday through its site.

 

“Understanding our environmental impact and driving sustainable change has been a major focus for Ambient in recent years. The 2023 Emissions Update reflects on Ambient’s continued commitment to environmental stewardship and emissions reduction efforts in conjunction with the company’s nationwide growth. The goal of this publicly-available report is to embrace a culture of accountability and transparency within the HVAC community and to encourage others to join Ambient in the collective push toward a greener future.” says Jenna Prasad, Sustainability Engineer at Ambient.

Ambient is a collective of HVAC design and implementation experts, offering solutions for spaces in the healthcare, commercial, and residential sectors.

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Ambient Enterprises

Harnessing Earth’s Power: The Rise of Geothermal in Commerical Buildings

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.

Decarbonization & Electrification: The Way to a Greener Future

HVAC Experts Break Down What You Need To Know

By: Amir Goharpey, Application Engineer, Gil-Bar Solutions

Decarbonization, a term often heard in the context of sustainability and climate action, represents a critical step towards reducing our carbon footprint and mitigating climate change. In the realm of heating, ventilation, and air conditioning (HVAC), decarbonization entails a strategic shift towards cleaner, more efficient technologies and practices. Here, we’ll discuss what decarbonization is and three key strategies for achieving it, with a particular focus on electrification as a driving force for positive change.

Understanding Decarbonization

At its core, decarbonization is the process of reducing or eliminating carbon dioxide emissions from various processes. In the HVAC world, this is a concerted effort to minimize the carbon footprint of buildings and encompasses four fundamental components:

  1. Energy Efficiency: This involves making units and buildings as energy-efficient as possible, ensuring that minimal energy input yields the maximum heating or cooling output. Besides environmental benefits, increased energy efficiency also reduces buildings’ energy bills, making it a win-win strategy.
  2. Electrification: Electrification is the strategy to replace existing equipment that relies on fossil fuels with the latest electric technology. This transition not only reduces carbon emissions but also aligns with the broader movement towards cleaner energy sources.
  3. Renewable Energy: Building all-electric systems and utilizing renewable energy sources to generate electricity play a pivotal role in decarbonization. By reducing reliance on fossil fuels for electricity generation, we can significantly lower carbon emissions.
  4. Electricity Loads: While essential, electricity load management falls just beyond the scope of what we are discussing here, but remains a crucial element of the overall decarbonization strategy.

The Significance of Decarbonization

Why is decarbonization so important? Simply put, it is a linchpin in our efforts to combat climate change and achieve reduction goals. The Climate and Community Protection Act, for instance, commits New York State to reduce greenhouse gas emissions by 40% by 2030 and a staggering 85% by 2050. To achieve these ambitious targets, an aggressive plan has been set in motion. Air Source Heat Pumps (ASHP), for example, have emerged as a viable solution, not only for meeting climate goals but also for surpassing the environmental performance of traditional DX and gas heating options.

Strategies for Combating Decarbonization

To effectively combat carbon emissions, HVAC professionals and policymakers must consider three main strategies:

  1. Energy Efficiency: Although energy efficiency has long been a priority in HVAC, its focus has often centered on cost savings rather than improving the carbon footprint. However, reduced energy consumption directly translates into fewer emissions from fuel use, making it a vital component.
  2. Refrigerant Management: Managing refrigerants is a critical aspect of reducing unwanted emissions from buildings. Employing low Global Warming Potential (GWP) refrigerants is essential to minimize environmental impact. Regular maintenance practices can also help prevent refrigerant leakage.
  3. Electrification: Electrification, especially in heating, is gaining prominence as we move away from gas heaters and inefficient electric heating methods. The shift towards cleaner electric grids, with an emphasis on renewable energy sources, is a cornerstone of electrification efforts.

Electrified Heating Solutions

One of the key drivers of electrification in the HVAC industry is the adoption of electric heating solutions, particularly heat pumps. These solutions include:

  • Air to Air Heat Pumps: These systems, includingsplit system heat pumps, rooftop unit (RTU) heat pumps, and variable refrigerant flow (VRF) heat pumps, efficiently provide both heating and cooling, reducing the need for fossil fuels.
  • Heat Recovery Solutions: Heat recovery systems, such as heat recovery chillersand multi-pipe systems maximize energy efficiency by capturing and repurposing waste heat, further contributing to the decarbonization movement.

So where does this leave us? We know decarbonization and electrification are intertwined as essential components of our journey towards a greener, more sustainable future. By embracing energy efficiency, responsible refrigerant management, and electrified heating solutions, we can not only meet reduction goals but also take significant strides in combatting climate change and preserving the environment for future generations.

Amir Goharpey is an application engineer with Gil-Bar Solutions, a division of the Ambient HVAC Collective.

Benefits of HVAC Investment in Smart Building Controls

By Chris Plummer, Sales Manager, Gil-Bar Industries

Connected smart equipment and devices have changed the way we live our lives. If you’re in the engineering or construction space, it has also changed the way we maintain our facilities. Big data and cloud analytics allowed us to create actionable intelligence by providing greater visibility on system performance and trends.

Often, one of the highest costs of maintaining a building is climate control. Building owners and management professionals know that keeping BTUs in the space is a primary challenge. Luckily, smart controls and connected devices have allowed us to use data and insights to develop the right maintenance strategies, helping us reduce energy consumption, extend asset life, and increase uptime, making it a potentially smart investment.

Connecting your HVAC equipment, such as your chiller, enhances your data visibility and grants access to:

  • Expanded data beyond what’s visible in the BAS, up to 200 points, for advanced insight into chiller performance.
  • Sophisticated AI-infused, machine-learning insights.
  • Chiller expertise powered by cutting-edge digital capabilities.
  • Real-time, chiller health and performance diagnostics at your fingertips.
  • Historical data from the first day of connection.
  • Diagnostic trends allow comparison to design intent and historical operation.
  • Predictive analytics designed to uncover potential issues early.

Recently, we’ve seen manufacturers placing safe bets on connected smart tools, some even offering free extended service to demonstrate their confidence in the future tech. For example, Johnson Controls, in conjunction with Gil-Bar Industries, now offers 1-year service included with all connected chiller orders.

What Are Smart Building Controls and How Do They Work?

Smart building controls are the foundation of modern smart buildings, enabling real-time coordination between building systems to improve efficiency, performance, and occupant experience. While traditional control systems rely on fixed schedules or manual adjustments, today’s smart building controls use connected sensors, automation logic, and advanced technology to continuously adapt how a building operates.

At a high level, smart building controls function through a network of integrated control systems that monitor conditions, process data, and trigger system-level responses. These systems collect inputs such as temperature, humidity, occupancy, and equipment status, then automatically adjust operations to maintain optimal conditions throughout the building.

How Smart Building Systems Operate

A typical smart building system follows a continuous cycle:

  • Sensors capture real-time data from across the building (temperature, airflow, occupancy, etc.)
  • That data is transmitted to centralized or distributed controllers
  • Controllers analyze conditions and execute programmed responses
  • Equipment and systems adjust automatically to meet demand

This closed-loop process allows buildings to operate dynamically rather than reactively. Instead of running systems at fixed levels, smart building systems respond to actual conditions in real time—reducing unnecessary energy use while improving consistency.

From Traditional Control to Intelligent Automation

In older or traditional building management systems, many decisions are based on static schedules or manual overrides. These systems often lack visibility into real-time performance and cannot adapt quickly to changing conditions within a building.

In contrast, modern automation systems are designed to continuously learn from operational data and adjust accordingly. By integrating automation and data-driven decision-making, facilities can move from basic control to intelligent optimization—where systems are not only managed, but actively improved over time.

Why Smart Controls Matter for Building Performance

Because HVAC, lighting, and other core systems operate continuously, even small inefficiencies can significantly impact overall building performance. Smart building controls address this by ensuring that systems only operate when needed and at the appropriate levels.

For example:

  • Adjusting airflow based on occupancy instead of fixed schedules
  • Modulating system output based on real-time demand
  • Automatically correcting inefficiencies before they escalate

These capabilities make smart building controls a critical component in achieving higher performance standards, reducing operational waste, and supporting long-term sustainability goals.

How Smart Building Controls Improve Efficiency and Reduce Energy Costs

One of the immediate benefits of smart building controls is their ability to reduce overall energy consumption while maintaining consistent performance across all building systems. Unlike static control strategies, smart systems continuously adjust operations based on real-time conditions—helping facilities avoid unnecessary runtime, over-conditioning, and wasted energy.

Moving Beyond Static Energy Usage

In many facilities, legacy control strategies result in predictable inefficiencies. Equipment may run at full capacity regardless of actual demand, leading to excessive energy usage and higher operating costs. These inefficiencies are especially common in buildings still relying on traditional building management systems, where limited visibility and control restrict optimization opportunities.

Modern building automation changes this dynamic by enabling systems to respond directly to real-world conditions. Instead of operating on fixed schedules, systems can scale output based on occupancy, load requirements, and environmental factors—resulting in more precise and efficient performance.

Key Ways Smart Controls Reduce Energy Costs

Smart building controls improve energy management through a combination of automation, data-driven insights, and system coordination:

  • Demand-based operation: Systems adjust output based on real-time occupancy and usage patterns rather than fixed schedules
  • Load optimization: Equipment ramps up or down depending on actual heating and cooling demand
  • Scheduling automation: Systems automatically align with building occupancy, reducing unnecessary runtime
  • Setpoint adjustments: Temperature and airflow settings are continuously refined to balance efficiency and comfort

Improving Building Performance Through Continuous Optimization

Efficiency is not just about reducing energy—it’s about improving overall building performance. Smart controls allow facilities to operate at peak efficiency by continuously identifying and correcting inefficiencies at the system level.

For example:

  • Detecting when equipment is running outside of optimal parameters
  • Identifying simultaneous heating and cooling conditions
  • Flagging performance drift before it leads to larger issues

This level of visibility enables proactive decision-making, helping facilities maintain consistent performance while minimizing waste.

Supporting Long-Term Sustainability Goals

As energy regulations and sustainability initiatives become more prominent, smart building controls play a key role in helping organizations meet their sustainability goals. By reducing unnecessary energy consumption and improving system efficiency, facilities can lower their environmental impact while also achieving measurable cost savings.

In many cases, improved efficiency also translates into reduced strain on equipment, extending the lifecycle of critical systems and further improving long-term operational value.

The Role of Building Automation Systems in Modern Facilities

At the core of most smart building controls is a building automation system (BAS)—a centralized platform that connects, monitors, and manages multiple building systems from a single interface. While individual control systems can operate independently, a BAS enables coordinated operation across HVAC, lighting, security, and other critical infrastructure.

From Traditional Building Management Systems to Modern BAS

Older or traditional building management systems were often limited in scope, providing basic monitoring and control without the ability to fully integrate or optimize performance across systems. These platforms typically relied on fixed programming, with minimal ability to adapt to real-time conditions or evolving building demands.

Modern building automation systems, by contrast, are designed for flexibility, scalability, and continuous optimization. They collect and process building data in real time, allowing operators to make informed decisions and automate responses across all connected systems.

How Building Automation Systems Work

A BAS operates as the control layer between field-level inputs and system-level outputs. It continuously gathers data from sensors and equipment, then applies control logic to adjust performance as needed.

Core BAS functions include:

  • Centralized monitoring: Real-time visibility into system status, alarms, and performance metrics
  • Automated control: Coordinated adjustments across HVAC, lighting, and other systems
  • Data aggregation: Collection of historical and real-time data for analysis and optimization
  • System integration: Communication between otherwise independent systems

This centralized approach allows facilities to move from isolated control strategies to a fully integrated operational model.

Enabling Smarter Building Operations

With a BAS in place, facilities can transition from reactive management to proactive building operations. Instead of responding to complaints or system failures, operators can identify trends, anticipate issues, and optimize performance before problems occur.

For example:

  • Adjusting system performance based on occupancy trends
  • Identifying equipment inefficiencies through performance data
  • Automating responses to changing environmental conditions

These capabilities not only improve efficiency but also enhance the ability of facilities managers to maintain consistent performance across complex environments.

The Foundation for Advanced Automation Systems

A well-designed BAS serves as the backbone for more advanced automation systems, including analytics platforms, fault detection tools, and AI-driven optimization strategies. Without a centralized system to collect and process data, these advanced capabilities cannot function effectively.

As buildings become more connected and data-driven, the role of the building automation system continues to expand—supporting everything from energy optimization to long-term asset management.

Integrating Building Systems for Smarter Facility Management

While optimizing individual systems like HVAC delivers significant value, the full potential of smart building controls is realized when all building systems operate as a coordinated, integrated environment. By connecting HVAC, lighting control, access control, and other infrastructure, facilities can improve efficiency, streamline building operations, and enhance overall performance.

Breaking Down Siloed Building Systems

In many facilities, systems such as HVAC, lighting, and security operate independently, each with its own controls and logic. This lack of integration can lead to inefficiencies, conflicting system behavior, and missed opportunities for optimization.

For example:

  • HVAC systems running in unoccupied spaces while lighting remains active
  • Security systems detecting occupancy without triggering HVAC or lighting adjustments
  • Systems operating on separate schedules without coordination

By integrating these systems, facilities can eliminate these inefficiencies and create a more cohesive operational strategy.

How Integrated Control Improves Efficiency

When systems are connected through a centralized platform, they can share data and respond collectively to real-time conditions. This allows for more intelligent decision-making across the building.

Examples of integrated system behavior include:

  • Occupancy-based control: Access control or occupancy sensors trigger adjustments in HVAC and lighting systems
  • Coordinated scheduling: HVAC and lighting systems align with building usage patterns automatically
  • Energy optimization: Systems reduce output simultaneously during low-demand periods

This level of integration ensures that all systems are working toward the same efficiency goals rather than operating independently.

The Role of HVAC and Lighting Coordination

The integration of HVAC lighting systems is one of the most impactful areas of smart building design. Because both systems significantly influence energy usage and occupant experience, coordinating their operation can deliver meaningful performance improvements.

For instance:

  • Lighting systems can signal occupancy, allowing HVAC systems to adjust airflow and temperature accordingly
  • HVAC operation can be reduced in spaces where lighting indicates inactivity
  • Both systems can be scheduled and adjusted together to minimize unnecessary runtime

This coordinated approach improves efficiency while maintaining consistent conditions throughout the building.

Enhancing Safety and Security Through Integration

Integrated systems also play a role in improving building safety and security. By connecting access control, surveillance, and environmental systems, facilities can respond more effectively to both routine and emergency situations.

Examples include:

  • Adjusting ventilation or airflow in response to detected hazards
  • Triggering lighting and access changes during emergency events
  • Monitoring building conditions to support safer indoor environments

These capabilities help facilities not only operate more efficiently but also improve safety for occupants and staff.

Creating a Unified Approach to Building Operations

Ultimately, system integration allows facilities managers to move away from fragmented control strategies and toward a unified approach to managing complex environments. With all systems connected and communicating, operators gain a clearer understanding of how the building functions as a whole.

This holistic view supports better decision-making, more efficient system operation, and improved long-term performance across all building systems.

Key Components of Automation Systems and Control Architecture

To fully understand how smart building controls function, it’s important to look at the underlying automation systems and control architecture that make them possible. These systems are built on multiple layers of hardware and software working together to monitor conditions, process data, and execute precise control strategies across all connected equipment.

The Three Layers of Building Control Architecture

Most modern control systems are structured in a hierarchical model, with each layer serving a specific role in overall system operation:

  • Field Level (Device Layer):
    • This is where physical inputs and outputs occur through field devices such as sensors, actuators, valves, and dampers. These devices collect real-time data and directly influence equipment operation.
  • Control Level (Controller Layer):
    • Controllers receive data from field devices and apply programmed logic to determine how systems should respond. This is where decisions are made based on temperature, occupancy, airflow, and other inputs.
  • Supervisory Level (Management Layer):
    • At the top level, centralized platforms—such as a building management system—provide visibility, analytics, and coordination across all systems. This layer allows operators to monitor performance, adjust strategies, and manage building-wide operations.

This layered approach ensures that systems can operate efficiently at both the local and system-wide levels.

The Role of Field Devices and Sensors

At the foundation of any smart building system are the field devices that gather data and execute control actions. These include:

  • Temperature and humidity sensors
  • Airflow and pressure sensors
  • Occupancy sensors
  • Control valves and dampers
  • Actuators connected to HVAC and other systems

The accuracy and reliability of these devices are critical. If sensors provide inaccurate data, even the most advanced control strategies will produce suboptimal results.

Communication and System Integration

For automation systems to function effectively, all components must communicate seamlessly. This is typically achieved through open communication protocols (such as BACnet), which allow different systems and devices to share data across a unified network.

This communication enables:

  • Real-time monitoring of system performance
  • Coordinated responses across multiple systems
  • Integration of legacy and modern equipment

Without this level of connectivity, systems remain siloed and cannot take full advantage of smart control capabilities.

Enabling System-Level Visibility and Control

By combining field devices, controllers, and supervisory platforms, modern automation systems provide complete visibility into system-level performance. Operators can monitor how systems interact, identify inefficiencies, and adjust control strategies as needed.

This system-level perspective is essential for:

  • Optimizing performance across multiple systems
  • Identifying hidden inefficiencies
  • Supporting long-term operational improvements

Why Control Architecture Matters for Performance

The effectiveness of smart building controls depends heavily on how well the underlying architecture is designed and implemented. Poorly integrated systems, outdated hardware, or misconfigured control logic can limit performance and reduce the benefits of automation.

A well-designed control architecture, on the other hand, ensures that all components—from field devices to centralized systems—work together to deliver reliable, efficient, and scalable building performance.

Improving Building Operations for Facilities Managers and Owners

Smart building controls don’t just improve system performance—they fundamentally change how building operations are managed on a day-to-day basis. By providing real-time visibility and centralized control, these systems allow facilities managers and building owners to operate more efficiently, reduce manual oversight, and make more informed decisions.

Streamlining Daily Operations

In traditional environments, managing building systems often requires manual adjustments, reactive troubleshooting, and time-consuming oversight. Smart building controls simplify this process by automating routine tasks and providing a clear, centralized view of system performance.

This allows facilities teams to:

  • Monitor all systems from a single interface
  • Quickly identify and respond to system alerts
  • Reduce time spent on manual system adjustments
  • Improve overall operational efficiency

By automating these processes, facilities can operate more efficiently while reducing the risk of human error.

Improving Maintenance and System Reliability

Smart controls also play a critical role in improving maintenance strategies. With continuous monitoring and access to detailed performance data, facilities teams can move from reactive to proactive maintenance.

Key benefits include:

  • Early detection of system issues through continuous monitoring
  • Reduced emergency service calls and unplanned downtime
  • Better coordination of maintenance schedules
  • Improved reliability of HVAC and other critical systems

This proactive approach helps extend the lifespan of equipment while reducing overall maintenance costs.

Supporting Better Decision-Making

With access to real-time and historical building data, facilities managers can make more informed decisions about system performance, upgrades, and operational strategies.

For example:

  • Identifying which systems are driving the highest energy costs
  • Evaluating performance trends across different areas of a building
  • Prioritizing upgrades based on measurable performance data

This data-driven approach ensures that decisions are based on actual system behavior rather than assumptions.

Enhancing the Value of Building Operations

Ultimately, smart building controls help transform building operations from a reactive function into a strategic advantage. By improving efficiency, reducing costs, and enhancing system reliability, these systems deliver long-term value for both operators and stakeholders.

For building owners, this means:

  • Lower operational expenses
  • Improved asset performance
  • Greater control over building environments

For facilities teams, it means the ability to manage complex systems more effectively with fewer resources.

How Gil-Bar Supports Advanced Smart Building Control Solutions

As an industry leader in HVAC and building systems solutions, Gil-Bar delivers tailored approaches that align smart control strategies with real-world building demands. From integrating advanced control systems with existing infrastructure to optimizing performance across complex environments, Gil-Bar helps facilities achieve measurable improvements in efficiency, reliability, and overall building performance.

Let’s discuss how smart controls fit into your facility needs.

 

From Basement to HVAC Powerhouse: Interview with Joe Sbarra

By: Edwin Warfield, Publisher, CityBiz

After beginning his career as a degreed sales engineer for the Trane Company, Joe Sbarra founded Gil-Bar Industries with his partner John Gill in July of 1986. The company had a family feel from the start: working out of the basement of a residential home in Brooklyn, the city where Joe was born and raised. In fact, the company’s first employee was Joe’s mom, who did everything from answering the phone to cooking meals for clients and factory visitors.

As Gil-Bar grew, Joe built and preserved a company culture that extends the values of family to every individual within the firm, and to every client the firm serves. These values are reflected in the way Gil-Bar cares deeply about every single project and all of the people who come together to make it work. They’re reflected in the way Gil-Bar protects everyone associated with the firm by insisting on excellence and taking responsibility for finding solutions where everyone wins.

As Joe says: “In order to maintain a great working relationship with our clients, we have to be friends with them. We have to have their backs.”

This philosophy has allowed Joe and John to attract and retain the “cream of the crop” in the HVAC industry, now including 24 degreed sales engineers and 22 inside engineering support staff. Today, Gil-Bar offers the strongest solution-based HVAC engineering team in the tri state area and is widely regarded as the nation’s premier engineering rep force.

“We’re entering our 35th year of providing expert guidance to our clients and we’re proud of the projects we’ve built together. We’ve become the largest solution-based HVAC company in the industry, proving ourselves with over 2000 clients daily across multiple market segments. But as we’ve grown, our philosophy and focus have never changed: we build working relationships as a family. We work together to find the best solutions, always. There is no project or problem too big or too small for Gil-Bar. We will figure it out.”

Connect with Joseph on LinkedIn

Interview questions:

Founding | You founded Gil-Bar in a basement in Brooklyn in 1986. Please tell us about the launch of Gil-Bar.

Introduction | Can you provide a snapshot of Gil-Bar today? How many locations, employees…?

Timeline | What are some of the key milestones since 1986?

Partner | Tell me about the role of your other partners and their part in Gil-Bar’s growth”

Private Equity|When did you decide to pursue private equity? Tell us about the Intermediate Capital Group.

Merger | Last November, Gil-Bar Solutions merged with HC Nye. Tell us about the merger and the results to date.

Growth | What are the growth plans for Gil-Bar?

High Performance Heat Pumps Are Here

By Joe Kalina, Sales Engineer, Gil-Bar Industries

The Future of NYC HVAC Design

The commercial HVAC landscape is changing rapidly. Between electrification mandates, rising energy costs, and the push for carbon reduction in major markets like NYC, engineers and building owners are rethinking how heating and cooling systems are designed. High-performance heat pumps are no longer a niche solution — they are becoming the foundation of the modern heat pump system strategy for commercial buildings.

Today’s advanced systems go far beyond traditional split system heat pumps. With inverter-driven compressors, expanded operating envelopes, and integrated smart controls, these systems deliver highly efficient heating and cooling performance throughout the year. Designed for both new construction and retrofit applications, modern heat pumps can operate year-round — maintaining comfort in extreme winter conditions while optimizing cooling efficiency in the summer. High-performance heat pumps can even reduce energy bills by 20%–40%.

High efficiency metrics such as seasonal energy efficiency ratio (SEER), IPLV, and COP are no longer secondary considerations; they directly impact operating budgets and long-term sustainability goals. As building owners evaluate alternatives to dual-fuel systems and fossil-fuel-based boilers, high-performance heat pumps are proving capable of delivering reliable heating even in cold-climate environments.

For engineers navigating decarbonization goals and Local Law 97 compliance, the question is no longer whether heat pump technology is viable — it’s how to specify the right system for measurable performance gains. Choosing the right size heat pump system depends on your building’s square footage, insulation quality, and climate zone, and many high-efficiency heat pumps may qualify for local or federal energy rebates and tax credits, helping property owner’s save money.

The Future of NYC HVAC Design

As an engineer and salesperson, I am always on the lookout for new solutions that work for both our customers and the environment. Recently, I’ve gotten excited about the new YMAE Air-to-Water Inverter Scroll Modular Heat Pump launched by York.

The New York City market has been asking for a product like this for the past five years. With electrification and decarbonization changing the landscape of HVAC design, this product will help in accomplishing the aggressive carbon-neutral goals of Local Law 97. 

A leap in development from the 2021 ACR Awards Heat Pump Product of the Year, the new YMAE-130 produces 140 °F hot water at the highest COP in the category. It also promises to deliver the broadest operating envelope in the market, and that means maximum flexibility across different applications. Combined with the use of ultra-low GWP refrigerant, R-454b, the YMAE is a sustainable, high-performance solution for building owners and engineers wanting to minimize their environmental impact.

So What Are The Specs?

  • Inverter vapor injection compressors on both circuits as standard (individually circuited compressors under 15HP) and ECM condenser fans. Part load turndown to 10% of design capacity.
  • 2-Pipe (heating or cooling mode) and 4-Pipe (simultaneous heating and cooling mode)
  • 4-Pipe operation is not solely reliant on energy recovery from internal loads – the condenser will aid in maintaining both chilled water and hot water LWT setpoints as needed, with both setpoints individually controlled. This allows for a wide range of new construction and retrofit applications.
  • Modular flexibility with up to 4 modules factory packaged on a skid with single-point power. Up to 32 modules can be controlled as a single chiller bank.
  • R454B next-generation low-GWP refrigerant, allowing for shipment after the 2023/2024 chiller HFC refrigerant ban.
  • Condenser fan external static pressure capabilities up to 0.4”, allowing for indoor installations behind louvers.
  • Capacity per 4-pipe module at AHRI conditions:
    • 35 tons cooling capacity @ 44°F water
    • 546 MBH heating capacity @ 105°F water
  • Combined COP of 7.9
  • Cooling operation IPLV greater than 20
  • Achieves 131°F @ 5°F
  • Maximum 140°F @ 14°F
  • Ideally suited to reduce the environmental impact of schools, hotels, offices, hospitals, and multi-unit residential applications by replacing fossil fuel boilers with high-performance heat pump technology.

Gil-Bar is excited to add the YMAE to its extensive air source heat pump portfolio with its groundbreaking new technology. Delivering heating capacities and efficiencies at design conditions is something the NYC market has needed in a modular package, and now it’s here.

Understanding High Performance Heat Pump Technology

High-performance air-to-water heat pumps represent a major shift in commercial HVAC design. Unlike conventional heat pumps that struggle at lower ambient temperatures or require supplemental fossil fuel heat, modern inverter-driven systems are engineered to maintain capacity and efficiency across an expanded operating envelope.

The use of inverter vapor injection scroll compressors allows the system to dynamically adjust output based on real-time load conditions. Instead of cycling on and off like traditional fixed-speed systems, inverter technology continuously modulates capacity. High efficiency inverter heat pumps are designed to maintain consistent temperatures and reduce energy costs compared to traditional units, and can efficiently heat down to -22°F and cool up to 129°F. This results in:

  • Higher part-load efficiency
  • Reduced mechanical stress
  • Improved temperature control
  • Lower operating costs
  • Extended equipment life

For NYC building owners navigating electrification mandates and Local Law 97 compliance, this level of control is no longer a luxury — it’s a requirement.

To ensure the highest efficiencies from a heat pump system based on site characteristics and intended use, consult a qualified installer or contractor.

System Configurations: 2-Pipe vs. 4-Pipe Applications

High-performance heat pumps provide flexibility that older chiller/boiler systems simply cannot match.

In addition to split system heat pumps, other configurations, such as mini split systems, are available. Mini splits use individual indoor units connected directly to an outdoor condenser, making them ideal for spaces without existing ductwork.

Heat pumps can also provide heating through ductless systems, offering efficient and versatile solutions for zone heating and various building heating applications. Air-to-water heat pumps provide heating via hot water through radiant floors or radiators, though they do not offer cooling.

There are two main types of heat pumps connected by ductwork: air-to-air and ground-source (geothermal) systems.

2-Pipe Configuration

In 2-pipe mode, the system operates in either heating or cooling. This is ideal for buildings with seasonal changeover requirements, such as:

  • Schools
  • Office buildings
  • Residential properties with central plant systems

The inverter-driven design ensures efficient load matching during shoulder seasons when partial heating or cooling is required.

4-Pipe Configuration (Simultaneous Heating & Cooling)

The real innovation lies in 4-pipe operation. Simultaneous heating and cooling allows buildings with diverse internal loads to:

  • Maintain chilled water setpoints
  • Maintain hot water setpoints
  • Recover energy internally when possible
  • Supplement with condenser operation as needed

In dense NYC commercial properties — particularly healthcare, hospitality, and mixed-use developments — simultaneous heating and cooling is critical. Interior zones may require cooling while perimeter zones demand heating. A high-performance modular heat pump allows this to occur without reliance on fossil fuel boilers.

This opens significant opportunities in retrofit applications where decarbonization must occur without compromising occupant comfort.

Cold-Climate Performance: Built for Northeast Conditions

One of the primary concerns with electrification in the Northeast is cold-weather heating performance.

Traditional air-source heat pumps lose capacity as outdoor temperatures drop. In dual fuel systems, when outdoor temperatures fall below the heat pump’s effective range, the furnace takes over to provide heat, ensuring consistent warmth even in colder weather. High-performance models with vapor injection technology maintain a stable hot water supply temperature even at low ambient conditions.

With capabilities such as:

  • 131°F supply water at 5°F ambient
  • 140°F supply water at 14°F ambient

These systems can directly replace or significantly reduce reliance on boiler systems in many commercial applications.

For engineers designing in the NYC Metro, this expanded envelope reduces the need for complex hybrid systems or oversized backup heat. It simplifies plant design while maintaining reliability during winter design days.

Efficiency Metrics That Matter

When evaluating high-performance heat pumps, efficiency is more than a marketing term. The metrics matter.

COP (Coefficient of Performance)

A combined COP approaching 7.9 at AHRI conditions indicates that the system produces nearly eight units of heating energy for every unit of electrical input under rated conditions. This is a substantial improvement over legacy heating systems.

IPLV (Integrated Part Load Value)

With cooling IPLV values exceeding 20, part-load performance is exceptional. Since commercial systems operate at part load the majority of the year, IPLV is often more relevant than full-load ratings.

Part Load Turndown

A turndown capability to 10% of design capacity is particularly important for modular central plants. This allows:

  • Reduced short cycling
  • Improved seasonal efficiency
  • Greater redundancy
  • Optimized staging across multiple modules

For building owners, this translates directly to lower energy consumption and improved lifecycle economics.

AC System Components: What Makes Up a High-Performance Heat Pump?

A high-performance heat pump system is engineered for both efficiency and comfort, thanks to a combination of advanced components working in harmony. At the heart of the system is the outdoor unit, or condenser, which houses the compressor, fan, and condenser coil. This is where the heat exchange process begins, allowing the system to efficiently transfer heat between the inside and outside of your building.

Inside, the air handler (or indoor unit) contains a fan, coil, and expansion valve, all designed to distribute heated or cooled air throughout the space. The refrigerant circulates between the indoor and outdoor units, absorbing and releasing heat as needed to maintain the desired temperature. The compressor, often featuring inverter technology and variable speed operation, dynamically adjusts its output to match real-time heating and cooling demands. This not only maximizes energy efficiency but also ensures consistent comfort by minimizing temperature swings and reducing energy waste.

Smart controls and programmable thermostats further enhance the system’s performance, allowing for precise temperature regulation and integration with building automation systems. These features enable the heat pump system to respond intelligently to changing conditions, optimizing both efficiency and comfort. Variable speed compressors and fans contribute to quieter operation, improved humidity control, and lower energy consumption, making high efficiency heat pumps a top choice for those seeking efficient heating and cooling year-round.

By leveraging these advanced components, a high-efficiency heat pump system delivers reliable, efficient heating and cooling, helping building owners and engineers maximize energy efficiency and reduce operating costs.

Dual Fuel Systems: Expanding Flexibility and Resilience

Dual fuel systems offer a powerful solution for maximizing energy efficiency and comfort in a wide range of climates. By combining a heat pump with a gas furnace, these systems provide the flexibility to automatically switch between electric and gas heating based on outdoor temperatures and energy costs. In milder weather, the heat pump delivers highly efficient heating and cooling, taking advantage of its ability to efficiently cool and heat your space. When outdoor temperatures drop and demand for heating increases, the gas furnace seamlessly takes over, ensuring reliable heating even during the coldest months.

This hybrid approach allows dual fuel systems to deliver significant energy savings and cost reductions, as the system always operates in the most efficient mode for current conditions. In warmer climates, the heat pump can handle the majority of heating and cooling needs, while in colder regions, the gas furnace provides backup for those extreme winter days. Proper sizing and installation are essential to ensure the system operates at peak efficiency, providing consistent comfort and optimal humidity control throughout the year.

Dual fuel systems can be configured as a split system, with the heat pump and furnace working together or independently, depending on the building’s needs. This versatility makes them an excellent choice for both new construction and retrofits, especially when existing ductwork is in place. Additionally, many dual fuel systems qualify for energy rebates and tax credits, further enhancing their cost savings and making them an attractive option for building owners looking to upgrade their heating and cooling systems.

By integrating the strengths of both electric and gas heating, dual fuel systems deliver efficient heating and cooling, improved indoor air quality, and the resilience needed to handle fluctuating outdoor temperatures—all while helping you save energy and money.

Real-World Commercial Applications

High-performance modular heat pumps are well-suited to several NYC building typologies. The age, design, and construction quality of a building can significantly impact the energy efficiency and performance of heat pump systems, making building construction an important consideration when planning upgrades.

In addition, heat pumps do not create combustion byproducts, which helps improve indoor air quality.

Schools

Electrification initiatives across public and private education facilities demand low-carbon heating solutions. Modular systems allow phased retrofits without full plant shutdowns.

Hospitals and Healthcare Facilities

Critical environments require precise temperature control and redundancy. Simultaneous heating and cooling ensures domestic hot water production while meeting cooling loads in imaging suites and data rooms.

Hotels

Hospitality properties have continuous domestic hot water demand combined with varying guest room loads. Heat pumps capable of maintaining elevated leaving water temperatures are ideal for these applications.

Office and Mixed-Use Buildings

Decarbonization retrofits in Class A office buildings must balance tenant comfort, sustainability goals, and operating costs. Modular air-to-water heat pumps provide scalable solutions that integrate with existing hydronic infrastructure.

Multi-Family Residential

Replacing central boilers in residential towers can significantly reduce carbon emissions while improving energy efficiency. Modular configurations allow staged installation with minimal disruption to occupants.

Integration With Modern Building Systems

High-performance heat pumps are most effective when paired with advanced controls and building automation systems. The ability to coordinate:

  • Load sequencing
  • Demand response participation
  • Energy recovery strategies
  • Central plant optimization

Gil-Bar’s engineering team supports proper application, plant layout design, and controls integration to ensure systems perform as modeled — not just as specified.

Supporting NYC’s Electrification Transition

Electrification is no longer theoretical. With Local Law 97 enforcement and increasing utility incentives tied to decarbonization, building owners must evaluate alternatives to fossil fuel heating.

High-performance air-to-water heat pumps provide:

  • Reduced carbon intensity
  • Compliance pathway for emissions caps
  • Lower long-term operating costs
  • Elimination of on-site combustion
  • Compatibility with renewable energy sources

For engineers and owners planning capital improvements over the next decade, specifying scalable, modular heat pump solutions today prevents costly redesigns tomorrow.

Gil-Bar’s Role in Next-Generation Heat Pump Solutions

Selecting the right equipment is only part of the equation. Proper application, design support, commissioning guidance, and post-installation service determine long-term success.

As NYC Metro’s expert on York products and part of the Ambient HVAC Collective, Gil-Bar provides:

  • Engineering consultation during design development
  • Equipment selection and specification support
  • Application review for retrofit and new construction
  • Coordination with contractors and controls providers
  • Ongoing service and technical expertise

High-performance heat pumps are here — but maximizing their potential requires the right partner. Contact Gil-Bar to discuss your property needs.

Joe Kalina is a sales engineer at Gil-Bar Industries. Part of the Ambient HVAC Collective, Gil-Bar has been the HVAC solutions company that offers greater expertise and commitment than any other firm, and is NYC Metro’s expert on York products and solutions.

The Gil-Bar & Mechanical Technologies Showcase

Join Gil-Bar Industries and Mechanical Technologies on Thursday, August 10th for the 2023 Gil-Bar and Mechanical Technologies Showcase featuring the Aaon Mobile Experience and ABB Rolling Roadshow. As we look toward the future of HVAC technology and sustainability, we are hosting some of the top names in the industry so you get the inside scoop on the most current solutions available:

 

Date: Thursday, 8/10/23
Time: 12:00PM – 7:00PM
Cost: Complimentary
Location: Javits Center Outdoor Event Space, 655 W 34th Street, New York, NY 10001

 

✓ On-Site Opportunities for PDH Credit
✓ Experience the Latest in HVAC Products & Features
✓ Enjoy a Bite to Eat

 

Featured Vendors

                                  

 

                            

 

 

Click Here to Add to Calendar

Click Here to See Event Area

Click Here to Download the Event Map

Click Here to Download PDH Credit Information

* Please note that I.D.s will be checked at the point of entry.

 

More Info: 212.331.8272

 

Global Warming Potential: Is It Time for a Change?

What to expect with refrigerant phase-outs in HVAC

 

Chris Plummer, Product Manager, Gil-Bar Industries

 

If you’re a professional within the HVAC industry, you know that the EPA is constantly changing codes and regulations to be better to our planet. Sometimes, those changes can seem hard to understand or adapt to, but knowing the true impact of your equipment can help. Lately, the EPA has made changes to ensure equipment is not using “high global-warming-potential” (or GWP) refrigerants. Within the scientific community, there is a fear that the high GWP refrigerants can leak and in turn add to Ozone depletion.  As a result, we’ve seen certain refrigerants in the industry begin to “phase out.”

But what is Global Warming Potential and what are the other determining factors for a “sustainable” refrigerant? Well, it turns out there are three main criteria:

Global Warming Potential (GWP): The metric used to compare the global warming impact of greenhouse gases compared to a reference gas, Carbon Dioxide (CO2), where its GWP is equal to 1. For example, R-134a refrigerant has a GWP rating of 1,430, indicating that it has 1,430 times the 100-year warming potential of the same volume of CO2. R-410a has a rating of 2,088, indicating that it has 2,088 times the 100-year warming potential of the same volume of CO2. In this case, R-134a would be considered a more sustainable refrigerant.

Toxicity: Relative toxicity to humans, broken into two classes:

  • Class A (Lower Toxicity): Refrigerants for which toxicity has been identified at concentrations less than or equal to 400 parts per million (PPM).
  • Class B (Higher Toxicity): Refrigerants for which toxicity has been identified at concentrations greater than 400 parts per million (PPM).

Flammability: There are four classes of flammability (From Figaro):

  • Class 1: When tested, the refrigerant saw no flame propagation at 140°F (60°C)and 14.7 psia (101.3 kPa).
  • Class 2: When tested, the refrigerant exhibited flame propagation at 140°F (60°C)and 14.7 psia (101.3 kPa), had a heat of combustion less than 19,000 kJ/kg (8,174 British thermal units BTU/lb), and had a lower flammability limit (LFL) greater than 0.10 kg/m3.
  • Class 2L: When tested, the refrigerant had a maximum burning velocity of 3.9 in./s (10 cm/s)or lower when tested at 73.4°F (23.0°C) and 14.7 psia (101.3 kPa). The purpose of the 2L subclass is to reflect the lower flammability properties of the new low-GWP refrigerant options on the rise, such as hydrofluorolefins (HFOs), like R-1234ze.
  • Class 3: When tested, the refrigerant exhibited flame propagation at 140°F (60°C)and 14.7 psia (101.3 kPa) and either had a heat of combustion of 19,000 kJ/kg (8,174 BTU/lb) or greater or a LFL of 0.10 kg/m3 or lower.

Standards (like ASHRAE 15 and EN 378) and guidelines use this number to determine what size charge is permitted in an occupied space such that if one were to leak, it would not exceed the concentration limit.

So What Does It All Mean?

Over the past 30 years, some of the phase outs brought on by the EPA we have included: Ammonia, R-22, and R-123. The next refrigerants to be retired will be R-134a and R-410a. R-134a is commonly used in large tonnage HVAC equipment including Air-Cooled and Water-Cooled Chillers. R-410a is used in smaller HVAC equipment like Roof Top Units (RTUs), Variable Refrigerant Flow (VRF) units and even window units.

There are 12 states, including New York and New Jersey, that are seeing the phase out of R-134a by the end of 2023. The challenge we face now is that there is no replacement. R-134a had the best heat transfer properties and flammability rating compared to known legal refrigerants. As a result, the only options now will be to utilize a less efficient refrigerant or one with a higher flammability rating. A less efficient refrigerant will lead to more energy usage in order to get the same amount of cooling. Considering that most of our energy comes from fossil fuels, we will be adding more carbon to the atmosphere to obtain the additional energy required, having the opposite of the intended effect. Similarly, moving to Class 2 refrigerants introduce whole new challenges, having to take life safety into consideration. Moreover, most localities do not allow flammable refrigerants to be present in buildings, so we are at a crossroads.

Even for R-410a (Freon), we see the same challenges, with it being replaced by R-454b and R-32. Both of which are A2L refrigerants. Luckily, the R-410a phase-out will not happen until the start of 2025.

Almost all major manufacturers have decided already to go with an A2L refrigerant, compounding the effects previously outlined. While the end goal is to stay compliant and reduce global warming potential, we will need to see some local code changes to account for new equipment in the coming years.

Chris Plummer is a product manager at Gil-Bar Industries. Since 1986, Gil-Bar has been the HVAC solutions company that offers greater engineering expertise, with deeper commitment to client success, than any other firm.

Chris Plummer
[email protected]
(646) 584-5031

Getting Ready for the Heat: Before Your HVAC Acts Up

Avoid headaches with these tips from the pros

By Mike Furey, General Manager, MIH Systems Group

There is a famous saying within the HVAC industry: Components don’t die, something kills them. Component failure can lead to costly repairs, and when it happens, service technicians turn into de-facto detectives looking for the killer. Most of the time though, failures come from one thing: lack of maintenance.

Given the many levels of preventive maintenance required to keep equipment from dying, being proactive with all systems connected to your mechanical equipment is key. “Unnecessary breakdown” is a word no one likes to hear, but it’s caused when preventive action isn’t performed. During a formal maintenance visit, a trained technician inspects equipment looking for any possible defects in devices that could cause a failure, and when a dirty device or failed component is discovered, the technician can address the problem in real time, avoiding a breakdown.

So, what is the number one preventable cause of major damage and repair costs? Water Leaks. An unchecked leak can lead to a host of other issues, including clogged drain lines, slimy overflow in condensate drain pans, and more. While inspecting for leaks, it’s also a good idea to check for dirty air filters, worn fan belts, and dirty blower wheels.

Being proactive with your equipment doesn’t just prevent breakdowns either. It can improve normal operation as well, affecting:

  • Energy Efficiency: When equipment is maintained properly, it reduces stress on the internal machinery, allowing it to operate as designed.
  • Air Quality: Poor air quality is a direct result of an unclean air filter, but maintaining and replacing UV lighting and other devices that regulate the amount of air transfers performed throughout day are also just as critical.

 

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Just like for us, reduced stress extends life. This is especially important when talking about equipment that operates off electricity. When equipment consistently operates un-maintained, it uses more electricity, which causes overheating, additional stress, and equipment failure.

MIH Systems Group, of the Gil-Bar and Ambient HVAC collective, has advocated for peak efficiency, maintenance, and safety for each of its clients since its inception in 2009. MIH recommends regular maintenance checks every three months for commercial properties.

 

HVAC Critical Systems Checklist:

[ ] Inspect for Leaks

[ ] Check for Dirty Air Filters

[ ] How is your Fan Belt Looking?

[ ] Are your Blower Wheels Clean?

 

MIH Systems Group

20 West 36th Street, Suite 700

New York, NY 10018

[email protected]

(212) 714-0178

Geothermal Heat Pump Technology Approved As A Renewable Energy

Earth Month is a great time for commercial properties to take advantage of new and considerable tax benefits, while helping to reduce emissions from HVAC


By Chris Plummer, Product Manager, Gil-Bar 

For building owners, consulting engineers, and general contractors searching for new ways to enhance the efficiency and sustainability of cooling units while seeking to preserve the atmosphere and global ecosystem, the big news is geothermal heat pump technology.

The Inflation Reduction Act of 2022 introduced some exciting new opportunities for Owners and Developers in building sustainability. Under the new Act, geothermal heat pump technology is now classified as a “renewable energy,” offering considerable tax benefits and allowing you to keep BTUs in the building. The Federal Income Tax breaks offer:

  • 30% of Geothermal Heat Pump System costs
  • Direct rebates equal to the credit for non-taxable entities
  • No limit to the maximum credit or rebate
  • Exemption from AMT
  • Recognition for up to three years prior
  • Rights to sell and transfer
  • Use for more than one year

The Act also introduces the ability for commercial properties to take advantage of accelerated depreciation within their taxes, such as:

  • 5-Year MACR depreciation for Geothermal Heat Pump System costs
  • Bonus depreciation eligibility

In order to qualify for these enhanced benefits, you simply need to meet the following criteria:

  • The building is located within in the United States
  • Original use of the property begins with the taxpayer
  • Your construction commenced before 12/31/2034

In many cases, these benefits can result in a Return on Investment (ROI) in less than one year.

As industry leaders, Gil-Bar Industries has a variety of geothermal heat pump products that you can take advantage of today. From Geothermal Water Source Heat Pumps to Water Cooled Chillers, Gil-Bar has the solutions and expertise to help you take advantage of this recent change in legislation.

During the first week of March, Senior Account Executive at Gil-Bar, Nick Denson, organized a full week of presentations to customers in New York City with Dan Ellis, former President of ClimateMaster. These presentations went on to explain why the Inflation Reduction Act of 2022 is important to Building Owners, Developers and Consulting Engineers. “The excitement around this new law creates a win-win for everyone. Geothermal helps the environment and pays for itself in just a year.” says Denson. “The reactions to this news have been incredibly positive.” To schedule a presentation or talk to a Gil-Bar representative, call (212) 331-8272.