WEBVTT

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All right, everyone. Thank you for joining us

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again on Did You Know, the ESCO HVAC podcast.

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This episode brought to you by Hudson Technologies.

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Joining us today, we have Kate Houghton from Hudson.

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How are you doing? Doing fabulous. Thank you

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so much for having me back once again. I absolutely

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love the conversations we get into because it's

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such a very fast changing industry. And when

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we start talking about like refrigerants and

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regulations in particular, man, it's like a whirlwind.

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And if you're not partnered with the right professionals

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in the industry and getting that firsthand information,

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you might think you know what's going on and

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you could be months behind. Yeah, you're really

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right. I mean, the pace at which things are changing

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and happening and legislation that starts to

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happen and gets changed and issued and gets pulled

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back, it's just kind of a full time. time job

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to really to pay attention to it and so that's

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one of the things that i love about our chats

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is we try to help people with that that's exactly

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it so let's think about some things that have

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changed recently that people should be aware

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of one that i've been getting a lot of and and

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it's it's like okay i got i'll be happy to talk

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to you about this one it's going to take a little

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bit because we got to look some different aspects

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of it they go okay so we're going to like roll

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back the A.I.M. Act and we're going to start using

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r410a and r22 again and new equipment right I'm

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like Yeah, no. It's not going to happen. No,

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that's not really on the cards. There's certainly

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been a lot of, I don't know, hyperbole, if you

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will, about looking at different elements. So

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there was a CRA, which is a Congressional Review

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Act on subsection H, which is a legal process

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and incoming information could do. It was put

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on the list, but as of two weeks ago, it's not

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on the list for the House to even start looking

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at and reviewing it. And so there's probably

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40 or 50 CRAs that are actively being worked,

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and the AIM Act is not one of them. Oh, that's

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fantastic. So that's great news from that perspective,

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absolutely. Yeah, because I wasn't even aware

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of that. So that's really, really, really good

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to know because there's a lot of people concerned

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about it. And I also tell them, too, that even

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if they did, like in the AIM Act, we're really

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talking about the whole regulatory side. side

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of refrigerant management and leak rates, right?

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We're not talking about getting rid of the refrigerants.

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We're not talking about the technology transition

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rule. We're really talking about those things

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that happened in those last 60 days that they

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have the opportunity to go back and look at.

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And the ones that would have been or potentially

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would have been the most threatened would have

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been leak rates. regulations tracking. Yeah,

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absolutely. So it was at subsection H, which

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was the last, and it was really in the CRA by

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a number, the CRA period by just a number of

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days. It was really very close. So yes, the allocation

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system. solid yeah not not being nothing can

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happen there the technology transition rule also

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very solid um so it really was the subsection

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h refrigerant management rule as i said it's

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not a priority it's way it's not even on the

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list at this point to actually go through reviews

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oh wow so really when we look at the grand scheme

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of things um even if it was to go through It

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would be some changes, but it wouldn't be like

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this industry changing, you know, actions that

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people have been worried about, which that's

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why we do these podcasts to help. break that

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fiction. Absolutely. So, you know, 454B, 32,

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513, 514, all of those new refrigerants that

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were marching forward with that, sunsetting the

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new 410A equipment, it can still be installed

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for the rest of the year. And 410A is not sunsetting.

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You know, you and I have talked about the incredibly

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large installed base that's around the country.

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So 410A as a refrigerant isn't going away. How

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you get it, what it... source of it might be

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different, but the refrigerant itself will be

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here for 20 plus years to come. Yeah, exactly.

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And so getting that refrigerant back is like

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the most important thing. I mean, we have to

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reclaim. We have to be very responsible in getting

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that refrigerant back so you can turn it into

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new refrigerant for us so we can put back in

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service. Absolutely. I mean, as you start to

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think about not just the AIM Act and the requirements

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for reclaimed refrigerant in certain sectors,

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you look at what's happened in California and

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their regulations starting January 1, you have

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to have reclaimed refrigerants. All state -owned

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buildings have to be serviced with reclaimed

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refrigerant. What happened in New York wasn't

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well organized. Boy, that's a whole conversation.

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That's a podcast, just New York. That's a podcast

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in itself, exactly. But New York is doing that,

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which California has done, and they're going

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to clean that up. Washington is looking at the

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same thing. So all of these regulations are going

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to add and continue to build. And the most important

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thing any one of us can do is recover every pound

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of refrigerant because every pound is valuable

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at this point. And we really have to reach those

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folks who are unaware of that importance and

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grow not just the amount of pounds that the folks

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reclaiming now are doing, recovering now are

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doing, but really reaching a larger audience

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and getting more participation. It's becoming

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so much more critical. You know, I thought I

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had an understanding of what reclamation looked

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like at a distributor level because I spent them.

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quite a few years in that level where I had all

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my contractors bringing me refrigerant. We had

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lots of these open conversations. And I did a

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training class for a distributor. It's been about

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four or five months ago. And it was a really

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good distributor. And it was in a state that

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I'd not been in before. And I was having this

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discussion as part of my A2L training, right?

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This is what we have to do. This is how you're

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going to have service gas. So get that refrigerant

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back. And I had a contractor raise his hand and

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he said, Who buys our gas? Wow. And I went, whoa.

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And then I looked over at my distributor. I said,

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aren't you involved in reclamation? No, we don't

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have a program here. And I went, what? Yeah.

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So I hate to hear that because it really takes

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every piece of the chain. It's not just reclaimers

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such as Hudson who are going to solve the problem.

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It's not just contractors or technicians. It's

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distributors. It's OEMs. It's everybody throughout

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that chain all really has to participate. And

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it starts with education. And then it goes to

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facilitating, making it as easy as possible.

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And we all have a role to play. Yeah, we really

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did. And that was what really made me think that

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even as much as we talk about this, I don't think

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we're talking enough about it yet. Yeah, you

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know, it's funny. I was talking to somebody at

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breakfast this morning and said, you know, you

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could argue there's about 500 ,000 technicians

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in the country as a number. I feel like maybe

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I've spoken to 75 ,000, but the 425 still need

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to hear the message. And they don't know. And

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they don't know that they don't know. Yeah. And

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because like many of you that are listening to

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us today, you've probably heard one of our other

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podcasts. So you at least know that something

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is going on. You know that there's a buzz in

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the air. And so you've been paying attention.

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And we're diving pretty deep into this. But think

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about all of your friends. that have never listened

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to one of these podcasts that we've done. We've

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done these for over a year, almost two years.

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I think you and I have been podcasting for two

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years at least. Yeah, and then to think that

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there's that many people who have never listened

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to what we're helping you understand. So make

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sure when you're listening to this that you find

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that one of your friends and go, did you know

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about this? Did you know? If not, we got a source.

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You can find out. No, I mean, absolutely, right?

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Because, again, it comes back to it takes all

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of us. We have to help educate everyone, and

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there's lots of ways to do that. There's lots

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of contracting networks. The folks that you know,

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as you say, do you know. Yeah. So for those that

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are listening, let's think of some maybe misperceptions

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that they've heard within the industry. One.

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Definitely not going back to R410A. Nope. Not

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going back to R22. Not at all. We're pushing

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forward. And so that being said, let's think

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about some of the misperceptions that maybe technicians

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have had in the past about the value, the importance

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of reclaiming. How it can affect service gas

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long term. So when we look at things like the

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HFC phase down that we're going through, right,

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that's for new refrigerants. And if we were to

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look at that alone, we would say, well, we've

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got about a decade of even our new refrigerants

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for residential, R32 and 454B, both being affected

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by the HFC phase down for newly manufactured

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refrigerant. So on the service side, a technician.

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could make all the difference in the world between

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having service gas in 10 years and not. It's

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absolutely right. So every single technician

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out there holds the fate of every system owner

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in their hands. That's a really powerful way

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to think about it. Because if every individual

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technician standing at a unit doesn't make the

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choice to recover that refrigerant... and then

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send it through the reclamation process, then

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somewhere at some point there's going to be a

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system owner that needed that pound of refrigerant

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that can't get it. Yeah, that could have been

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their brother. My sister, grandma, aunt, uncle

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that is going to call them and go, hey, my contractor

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was out here and they said that they can't get

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any refrigerant to service my system. Do you

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know anything about that or did you have anything

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to do with that? Tell me about it because I'm

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going to bring you here to Christmas and we're

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going to have a conversation about what you're

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doing. Yeah, and you're going to buy me a new

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refrigeration system. And you're going to buy

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me something new because they wanted $1 ,000

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a pound for this stuff. Why is it that high?

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Yeah. No, I mean, it really is that simple in

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some respects. I mean, if you think about, and

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I think we've talked before, there's still hundreds

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of thousands of pounds of CFCs circulating through

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the reclamation business to keep systems operating

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that haven't been manufactured since 1995. So

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contractors today are still able to install a

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residential 410A unit. That person buying the

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unit. wants to get 15 years from that unit's

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lifetime. Oh, absolutely. And if we don't have

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that recovered gas and we're not doing the reclamation,

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somewhere along the line, we will get to a point

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where that practically brand new system may not

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be able to be serviced. Wouldn't that be a hard

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conversation to have? It would be a very hard

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conversation. And think forward, too. If you're

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a contractor or a technician that's not recovering,

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And all of these mandates for states or federal

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or lack of availability, and someone says, well...

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what refrigerant did you send me for recovery?

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I can't sell you any reclaimed refrigerant because

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you didn't put it into the pool. So you can't

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take out of the pool. And I think it's something

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that it's in this phase down is very different

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than previous. And I think it's probably going

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to be a reality for some folks if they don't

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start to participate. It's already. So I've talked

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to one distributor that they are putting into

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plan their A2L disbursement to their contractors.

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Those contractors are going to be required to

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be reclaiming and returning refrigerant to be

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on the supply list. Wow. Now that's a big statement.

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That's a huge statement, but props to them. Yeah.

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Right, of really tying the two things together.

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Yeah, because they're looking at it, they're

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going, okay, so we're going to have reduced supply

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of this going forward. Who are we going to sell

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it to? It's not about we're going to have this

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ample supply and we can sell all we want to everyone

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and continue making profit. No, it's about you're

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going to have an allocation. And it's going to

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have to be used appropriately. So what's the

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most appropriate use? Well, the most appropriate

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use is to get it in the hands of the most qualified

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contractors, the most responsible contractors

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that's going to be bringing reclaimed gas back

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so that I can work with Hudson to get it reclaimed.

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And I can bring that back into my own distribute

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network. And so the distributor is now looking

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at it as equity. That's an asset for them to

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make sure they're. getting that reclaimed gas

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through them yeah and and that concept of it

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being an asset applies all through the chain

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for the contractor for the technician for the

00:12:07.450 --> 00:12:09.889
wholesaler if everybody thinks about that pound

00:12:09.889 --> 00:12:12.269
of refrigerant as an asset we'll change the reclamation

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market overnight yeah No, I absolutely would.

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You know, I can reflect back on my days when

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I was in grocery refrigeration and we still had

00:12:21.049 --> 00:12:24.830
a lot of R22 medium temp racks, a lot of them.

00:12:25.070 --> 00:12:27.769
And then we had all of our R22 rooftop units

00:12:27.769 --> 00:12:30.690
that were coming down. And so it was required

00:12:30.690 --> 00:12:33.090
for us to document to the ounce the amount of

00:12:33.090 --> 00:12:35.350
refrigerant that was recovered out of those rooftops

00:12:35.350 --> 00:12:37.370
when they were repaired or when they went through

00:12:37.370 --> 00:12:39.029
the replacement. And then we would use companies

00:12:39.029 --> 00:12:42.549
that would come in. do the recovery for us but

00:12:42.549 --> 00:12:46.129
then we actually took that back and had it processed

00:12:46.129 --> 00:12:48.929
and brought it right back into our own internal

00:12:48.929 --> 00:12:52.070
storage and so we were actually creating our

00:12:52.070 --> 00:12:56.169
own circular environment of refrigerant and it

00:12:56.169 --> 00:12:58.570
didn't affect our supply very much because we

00:12:58.570 --> 00:13:01.350
had refrigerant around because we were repurposing

00:13:01.350 --> 00:13:03.710
it for all of the right reasons and so i started

00:13:03.710 --> 00:13:06.490
thinking about our industry and like if if we

00:13:06.490 --> 00:13:10.139
follow that model That's that's success. Absolutely.

00:13:10.279 --> 00:13:13.120
Yeah. And absolutely. If we don't, it's failure.

00:13:13.340 --> 00:13:17.139
Yes. When could coal possibly, you know, a disaster

00:13:17.139 --> 00:13:21.679
as well? Yeah. All right. OK, so if we start

00:13:21.679 --> 00:13:24.399
thinking about the technicians, we start thinking

00:13:24.399 --> 00:13:26.399
about our contractors, our business owners and

00:13:26.399 --> 00:13:29.740
our local distributors and in our equipment manufacturers,

00:13:30.159 --> 00:13:34.120
we're all a part of this environment. And I think

00:13:34.120 --> 00:13:37.820
it's important for everyone to know that there's

00:13:37.820 --> 00:13:42.320
going to be a time in the near future where reclaimed

00:13:42.320 --> 00:13:45.639
gas is actually going to be going into new equipment

00:13:45.639 --> 00:13:49.759
as requirements. Yeah, yeah. It's kind of an

00:13:49.759 --> 00:13:52.340
interesting new dynamic, right? A little bit

00:13:52.340 --> 00:13:54.700
of that happened with the California regulation

00:13:54.700 --> 00:14:00.039
for OEMs before the A2Ls came in. And so a number

00:14:00.039 --> 00:14:02.860
of OEMs actually did put Reclaim into their brand

00:14:02.860 --> 00:14:06.100
new equipment. So the path has been forged already.

00:14:06.299 --> 00:14:11.919
But under subsection H, yes, fast forward a few

00:14:11.919 --> 00:14:14.120
years and that's the path that we're heading

00:14:14.120 --> 00:14:15.840
down is that Reclaim Refrigerant would actually

00:14:15.840 --> 00:14:19.740
go into brand new equipment. before it gets commissioned.

00:14:19.960 --> 00:14:22.100
Yeah. And you know, I had a conversation, which

00:14:22.100 --> 00:14:24.200
I thought was really intriguing when we were

00:14:24.200 --> 00:14:26.860
talking about refrigerant. So when we're manufacturing

00:14:26.860 --> 00:14:30.360
something new, we know the ingredients that are

00:14:30.360 --> 00:14:32.539
going into it. And so we put those ingredients

00:14:32.539 --> 00:14:34.899
into it and we package it up and we send it off,

00:14:34.960 --> 00:14:37.539
right? That's how manufacturing works for, if

00:14:37.539 --> 00:14:40.019
I go buy a box of cereal, I know the ingredients

00:14:40.019 --> 00:14:42.220
that goes into that cereal, it gets packaged

00:14:42.220 --> 00:14:43.960
and it gets sent out. It doesn't mean that every

00:14:43.960 --> 00:14:48.240
box is sampled. right right yep exactly so when

00:14:48.240 --> 00:14:51.820
we start talking about reclaimed refrigerant

00:14:51.820 --> 00:14:55.659
that's a whole different story it absolutely

00:14:55.659 --> 00:15:00.460
is and every every pound of every um reclaimed

00:15:00.460 --> 00:15:03.000
refrigerant is part of a batch and every batch

00:15:03.000 --> 00:15:06.840
is tested against a hri 700 so every single element

00:15:06.840 --> 00:15:11.730
of that process is documented, is tested, is

00:15:11.730 --> 00:15:14.509
certified, has to be certified by an AHRI 700

00:15:14.509 --> 00:15:17.929
lab to be able to call it reclaimed refrigerant,

00:15:17.929 --> 00:15:21.590
and it has to meet AHRI 700. So as Hudson, we've

00:15:21.590 --> 00:15:24.769
invested in AHRI lab certification. We're not

00:15:24.769 --> 00:15:26.529
the only ones. There's a few companies that are

00:15:26.529 --> 00:15:29.970
out there. But as you're kind of saying, brand

00:15:29.970 --> 00:15:32.149
new production doesn't have to be AHRI certified.

00:15:33.049 --> 00:15:35.590
reclaimed does and you get that surety that you

00:15:35.590 --> 00:15:37.769
know exactly what you're getting for the purity

00:15:37.769 --> 00:15:41.730
the components and the acidity the moisture all

00:15:41.730 --> 00:15:44.149
of that is very well documented so when folks

00:15:44.149 --> 00:15:45.909
say well we're not really sure if we could use

00:15:45.909 --> 00:15:49.269
it in new equipment if you put a pound of reclaimed

00:15:49.269 --> 00:15:52.029
refrigerant next to a pound of virgin you couldn't

00:15:52.029 --> 00:15:53.830
tell the difference unless i told you which one

00:15:53.830 --> 00:15:56.509
was which yeah that's that's super important

00:15:56.509 --> 00:15:59.309
because then we started thinking okay Well, if

00:15:59.309 --> 00:16:00.629
it gets to the point where we're going to need

00:16:00.629 --> 00:16:02.830
some of our service gas for new equipment, that

00:16:02.830 --> 00:16:05.090
means our service gas gets even more scarce,

00:16:05.309 --> 00:16:08.950
which amplifies the importance for us to recover.

00:16:09.309 --> 00:16:13.730
Yeah. All roads are leading to recovery through

00:16:13.730 --> 00:16:16.129
reclamation will be critical for our industry.

00:16:18.149 --> 00:16:20.090
There's a lot of change going on right now. There

00:16:20.090 --> 00:16:22.690
really is. There really is. Keeps me up at night

00:16:22.690 --> 00:16:25.690
sometimes. I know it does. People are like, wow,

00:16:25.830 --> 00:16:27.960
what's changing this week? I'm like. Let's talk

00:16:27.960 --> 00:16:29.620
about what changed today. We'll start there.

00:16:30.720 --> 00:16:33.480
Well, Kate, this is wonderful. I just, I always

00:16:33.480 --> 00:16:35.820
love our conversations because it's so stimulating

00:16:35.820 --> 00:16:38.419
to see what's happening in our industry. And

00:16:38.419 --> 00:16:40.500
you're always bringing like the freshest perspective

00:16:40.500 --> 00:16:42.940
of what's going on in your side of the industry.

00:16:43.360 --> 00:16:46.759
And I encourage everyone to learn more about

00:16:46.759 --> 00:16:49.159
Hudson. Where can we learn about Hudson? So visit

00:16:49.159 --> 00:16:53.980
us on www .hudsontech .com. H -U -D -S -O -N

00:16:53.980 --> 00:16:57.250
-T -E -C -H. And my Australian accent comes right

00:16:57.250 --> 00:17:00.610
through on the HSA. Yeah, we've got a lot of

00:17:00.610 --> 00:17:03.470
information. And so sign up for our newsletter.

00:17:03.629 --> 00:17:05.390
We send a lot of information about regulation,

00:17:05.509 --> 00:17:07.410
how it's going to affect what's happening in

00:17:07.410 --> 00:17:10.430
the industry, talking about reclamation, talking

00:17:10.430 --> 00:17:13.509
about service and things like that. So a lot

00:17:13.509 --> 00:17:16.349
of stuff there. And thank you as always for having

00:17:16.349 --> 00:17:18.369
me on. I really enjoy it. I appreciate your time.

00:17:18.509 --> 00:17:18.930
Absolutely.
