ASA Continues to Represent PHCP-PVF Supply Chain in California

The American Supply Association (ASA) continues to represent the PHCP-PVF supply chain as California advances two regulatory initiatives with significant implications for distributors and their customers.

The California Air Resources Board (CARB) has proposed zero-emission standards for space- and water-heating equipment beginning in 2030, while the California Energy Commission’s (CEC) proposed Water Heater Data Standard would require distributors to collect and report detailed information on water heaters sold in the state. Although both initiatives are intended to support California’s emissions-reduction goals, distributors have raised concerns about their potential operational, financial and market impacts.

ASA is engaging with CARB, CEC, California policymakers and industry partners to ensure the perspectives of wholesale distributors, manufacturers and independent manufacturers’ representative firms are considered as the proposals move forward.

“ASA has been actively engaged throughout this process to ensure the PHCP-PVF supply chain has a voice in California’s regulatory discussions,” ASA Vice President of Advocacy Stephen Rossi said. “We have submitted written comments in response to two CEC requests for information and are preparing a third submission. We also have provided public comments and met directly with officials at both CEC and CARB to communicate the potential impacts on distributors, manufacturers and their customers.”

Regarding CARB’s proposed standards, ASA is raising questions about whether the electrical grid, product supply, workforce and installation infrastructure will be prepared to support the transition within the proposed timeframe. The requirements could affect product availability, customer choice, equipment affordability and the ability of distributors and contractors to meet customer needs.

ASA is also addressing the potential administrative and technological burden of the CEC’s proposed data standard. The requirements could include product, location and transaction-level information that is not consistently captured across distributor business systems, particularly for companies with multiple branches, differing enterprise resource planning systems or operations across state lines.

Since distributors are the critical link between manufacturers and the contractors and customers who depend on these products, regulations affecting which equipment may be sold, how it is distributed and what information must be collected cannot be evaluated without considering the cumulative impact on the entire supply chain.

ASA will continue monitoring the CARB and CEC proceedings, meeting with policymakers and industry partners, providing feedback and keeping members informed about proposed requirements, compliance responsibilities and potential business impacts.