Ep 4: State Summit Preview

At AHRI, the spring months are often some of the busiest for our government affairs team. Our two signature advocacy events – the State Summit and the Policy Symposium – take place in April and May.

In this month’s episode, we’re unpacking the AHRI State Summit, which – you guessed it – focuses on state-level advocacy efforts. It ping pongs between two of the most ambitious state legislatures in the country - New York on the East Coast and California on the West Coast. It’s a two-day agenda - with one day focusing on panel sessions that address issues specific to the state and the second day spent traveling up to the state capitol for meetings with state legislators and their staff.

While the State Summit is one of our smaller events, it serves as a valuable opportunity to connect directly with the state lawmakers and regulators that are responsible for introducing, voting on, and implementing measures that can have huge impacts on the way our industry does business.

This year, AHRI staff and members will be traveling to Sacramento, California in near-record numbers to share our industry’s priorities in the state! I’m excited to introduce you to several members of our policy and regulatory teams to share what goes into this event and why it’s so important.

Resources from this episode:

AHRI State Summit: https://www.ahrinet.org/2026-ahri-state-summit

AHRI Policy Symposium: https://www.ahrinet.org/2026-policy-symposium 

General advocacy web page: https://www.ahrinet.org/advocacy 

Transcript

SPEAKER_01 0:06

Welcome to Making Life Better, an AHRI podcast. Here we'll keep you informed about our upcoming events, important policy issues affecting the industry, updates to our globally recognized and industry-respected equipment certification programs, and we'll even share some fun human interest stories and history related to the world of HVACR. This is the place to learn all the ways our members and AHRI make life better for everyone. Welcome back to Making Life Better, an AHRI podcast. I'm Reagan Spencer, the communications manager at AHRI. In AHRI, the spring months are often some of the busiest for our government affairs team. Our two signature advocacy events, the State Summit and the Policy Symposium, take place in April and May. In this month's episode, we're unpacking the AHRI State Summit, which, you guessed it, focuses on state-level advocacy efforts. It ping pongs between two of the most ambitious state legislatures in the country, New York on the East Coast and California on the West Coast. It's a two-day agenda, with one day focusing on panel sessions that address issues specific to the state, and a second day spent traveling up to the state capitol for meetings with state legislators and their staff. While the state summit is one of our smaller events, it serves as a valuable opportunity to connect directly with the state lawmakers and regulators that are responsible for introducing, voting on, and implementing measures that can have huge impacts on the way our industry does business. This year, AHRI staff and members will be traveling to Sacramento, California in near record numbers to share our industry's priorities in the state. I'm excited to introduce you to a few members of our policy and regulatory teams to share what goes into this event and why it is so important. So our first guest is Mackenzie Horrigan, the senior manager of international and domestic policy. While many of you know her as our resident tariff expert, she is also the go-to for all things logistics when it comes to State Summit. Mackenzie, thank you for taking the time to join us. Thanks for having me. So I would describe the State Summit as a very unique event. The policy team does a really impressive job of bringing together a diverse group of panelists from different regulatory agencies, environmental groups, and trade associations. Can you tell me about some of the different groups that State Summit attendees will be hearing from?

SPEAKER_00 2:40

Sure. And I agree. I think every year we try to curate a very diverse program of speakers by bringing together a variety of stakeholders. We always shoot to get the state's energy and environmental regulators in the room, business leaders that are leading in the state, trade association representatives, utilities, and even legislators who are working on the issues that impact the HVACR and water heating industry. So this year, because we're in California, we'll be hearing from voices like the California Energy Commission, the California Air Resources Board, PGE, the Cal Chamber, but you also hear some other familiar voices such as Hardy and the Building Decarbonization Coalition.

SPEAKER_01 3:18

Another one that caught our attention over in the public affairs department was the representative from the Cookware Alliance, which obviously is very relevant, but not someone who would always come to mind.

SPEAKER_00 3:29

No, that is true. And we invited them because they were the leader in getting a PFAS bill vetoed by Governor Newsom during the last session. So we want to hear from them and see what their perspective is on the PFAS policy and how California is really trying to address PFAS policy and legislation and what techniques they've used to advocate for themselves and see if there's anything we can maybe align with or take from them.

SPEAKER_01 3:53

I think that's one of the best descriptions of how well-rounded this event is. So, in planning this, as you know, we work very closely with our lobbying partners based in Sacramento to make sure that we're covering the biggest issues in the state. Can you tell me about some of the ways that their involvement makes the state summit agenda that much more valuable?

SPEAKER_00 4:13

Absolutely. And we have incredible consultants. Don Kepke is our lead consultant in California, and Dawn is incredible. Shout out to Dawn. She is really integral in planning the state summit. She has so many local connections that really make our side of things seamless. This year, additionally, we're happy to have her join our program as a moderator for one of our panels. So actually, she will be leading the discussion on California's PFAS and chemicals policy and get to have that discussion with the Cookware Alliance and see again how they're advocating in the state. In addition to the Cookware Alliance, she has just a great lineup of PFAS speakers on that panel. So I think we'll get to see again at the state level what is happening with PFAS in California. But there's also a representative from the American Chemistry Council and Andrew Bemis from SPAND. So we'll get to see how California's activity fits into the broader PFAS activity at the federal level.

SPEAKER_01 5:03

Seems like the states are the testing ground for some of these policies before the federal level gets involved.

SPEAKER_00 5:10

They are, yes. And Dawn is also great at helping us get meetings with the legislators. Dawn and her staff help set up all of those meetings and help us identify which offices are really the most important for us and our members to be meeting with to discuss those issues that affect our members the most.

SPEAKER_01 5:26

So my next question is about those visits that you just mentioned, Mackenzie. In our last episode about EPCO reform, Samantha talked about flying visits to Capitol Hill in DC. So those are a big part of State Summit as well. But what sets the state level visits apart?

SPEAKER_00 5:42

Sure. And actually, I think the state level legislative visits are very similar to our fly-in visits that we lead on Capitol Hill in DC during the policy symposium. Maybe the biggest difference is that you're not running from building to building. All of the offices in Sacramento are in one office building, which might mean more time in the elevator or more stairs, but you're never having to rush across the Capitol building from the House offices to the Senate offices, like we might have you do in May. As far as the issues go, again, very similar at the state level to the federal level. Of course, there's some differences. EPCA is a federal law, so we're not going to be talking about EPCA in Sacramento or Albany at the state summits. But again, you'll see a lot of similarities. One issue that tends to be really California-specific is serial lumber tracking. We brought this to legislators back in 2024, and we'll be doing so again because it's popped up once more this legislative session. And the other issues that we'll be bringing to the capital offices in Sacramento are going to be PFAS, refrigerants, and EPR and plastics policy.

SPEAKER_01 6:41

With some of those more specialized issues, how does AHRI make sure that attendees are prepared for these meetings?

SPEAKER_00 6:47

Great question. So first of all, I think to put you all at ease, hopefully, you are all living these issues day in and day out at your company. So you know how the state's laws and the regulations affect your businesses probably better than AHRI staff does. So even coming in, flying into Sacramento, you're already prepared for these meetings. But in case you don't believe me or you need more assurance, you're not alone in these meetings. AHRI works very hard to put you into a group. And then we also assign you with an AHRI staff member to be your group leader. So they'll help guide you around the office buildings. And then they can also help start the meetings, guide the meetings, and answer any questions on behalf of the industry that might pop up. So HRI staff also puts a lot of time into developing briefing materials for our members. We will have folders ready for you with physical copies of all of our issue sheets that we're bringing to the state legislators in California this year. You'll be able to look at them in the morning, over breakfast, and perhaps in between panels. But if you don't have enough time to get through everywhere on that page, HR staff and our consultants do provide a briefing presentation during the luncheon, right before we all walk over together to the offices. And that will cover general information, such as just where are we going, who are we meeting with, how to have a good meeting in California, as well as digging into the specific talking points for each issue and what you should be highlighting with those offices that you meet with.

SPEAKER_01 8:07

Long story short, you are covered from every angle by HRI on these.

SPEAKER_00 8:11

We do our best. Yes. You should have no concerns about being prepared for these meetings.

SPEAKER_01 8:16

So another thing about this meeting, we talk a lot about the opportunities to make direct connections with some of the decision makers, policymakers, issues experts. Aside from the state capitol meetings, what are some of the best opportunities to make those initial connections?

SPEAKER_00 8:32

I personally love the state summit. It is probably my favorite AHRI policy event that we put on, mostly because it's smaller, which does help create a more intimate audience experience. And that ultimately improves everyone's experience because we're all asking questions. The panelists have conversations with the audience. They're not just discussing with themselves and the moderator. It overall, we have a more robust discussion. And I think HRI staff, our members, and even the state representatives in the room are getting more because they're understanding where our industry is coming from as well. Also, the state summit this year, we're going to have something like 30 California Energy Commission and CARP staff in the room throughout the state summit. They'll just be attending, sitting in the room, listening. But this is a huge value add to both HRI members and those state regulatory bodies because, again, they get to listen to us and see where our industry is coming from and why we have the position that we have. But they're there. So you should be pulling them aside in between sessions to ask them further what's their agency's perspective on this and what are they doing to work on a certain issue. But overall, everybody, HRI staff members and those regulators should be taking this opportunity to network and start building those connections now because they might help you in the future.

SPEAKER_01 9:48

Oh, great. No, I think you're gonna love it, Reagan. All right. Well, thank you so much for taking some time to talk to me. And we look forward to another successful state summit.

SPEAKER_00 9:58

Thanks, us two. Policy team is very excited to see you all in Sacramento.

SPEAKER_01 10:09

Now I'm excited to introduce you to Matthew Smith Heisler, AHRI's Director of Regulatory Affairs. Matthew specializes in regulatory issues that affect the heating sector, hydronics products, and water heaters. On top of all of that, he is our point person for extended producer responsibility programs, known as EPRs. Thank you for joining me.

SPEAKER_02 10:30

Thank you for having me.

SPEAKER_01 10:32

At this year's State Summit, you'll be moderating the session Understanding California's Plastics Policy. There's a lot to unpack on this topic. Can you tell us some of the specific items you'll be covering?

SPEAKER_02 10:43

Absolutely. At a high level, the session is really focused on California's EPR program under SB54, while it's taking shape, and what that means for AHRI members. And importantly, we'll focus on how SB4 applies to our industry. While HRI members aren't in the business of producing packaging itself, they do place packaged products into the market. So the program still creates obligations around things like reporting fees and how packaging is managed at its end of life.

SPEAKER_01 11:35

So you mentioned a lot of factors there. It seems like every week there's a new update on SB54 in the policy brief newsletter. How do you keep track of all of these developments?

SPEAKER_02 11:46

Honestly, uh it takes a coordinated effort across Asia's regulatory team for tracking updates coming out of Cal Recycle, uh, including rulemaking activity and advisory board meetings. We're also monitoring updates from the Circular Action Alliance, CAA for short, as their the designated producer responsibility organization within California. At the same time, we're regularly engaging with our members to understand how these policies are being interpreted and where there may be broader industry concerns. A big part of my role at EHR is to ensure our members are aware of these key developments and timelines and to communicate industry perspectives back to the regulators as these programs are being developed.

SPEAKER_01 12:35

So you mentioned the producer responsibility organization. For people who aren't aware, can you just explain briefly what they do and how they're involved in these EPRs?

SPEAKER_02 12:43

Yeah. So a producer responsibility organization is an organization, it's usually a nonprofit organization stood up by producers themselves. And essentially it helps them comply with these EPR laws. Because these EPR laws tend to be more complex, and to have these organizations is key to complying with these laws.

SPEAKER_01 13:04

And you mentioned the complexity of these programs. With that in mind, where does the implementation of SB54 stand right now?

SPEAKER_02 13:12

Yeah, so SB54 is still very much uh in the implementation phase, and it's been a moving target over the past year. In 2024, we saw Power Recycle actually pause parts of the regulatory process as they worked through significant feedback from stakeholders on the draft regulations. There was a lot of concerns raised by the feasibility, the costs, and how some of these requirements would be actually be implemented in practice. Following that pause, uh, in the fall of 2025, the process restarted with revisions to the draft regulations and continued engagement through the advisory board meetings and stakeholder discussions. Then in January of this year, CowerCycle released an updated set of these draft regulations and restarted the formal rulemaking process, which to us really signaled that the state is moving forward toward finalizing the program framework. At the same time, as we talked about, the Circular Action Alliance has continued uh standing up as a producer responsibility organization, and work is ongoing on key elements like the needs assessment and the program uh plan itself. So while the overall direction uh of the program is clear, a lot of the critical details, especially around costs, reporting, and compliance obligations, are still being worked on and worked out. And those are the pieces that manufacturers are watching most closely right now.

SPEAKER_01 14:54

It's fair to say that AHRI is very involved in helping hammer out those smaller details. Is that correct?

SPEAKER_02 15:02

Yes, absolutely. Especially around uh how some of our products uh with refrigerants are included or hopefully excluded out of these regulations.

SPEAKER_01 15:13

So California is not alone in implementing these kind of programs. They're one of seven states that have passed legislation to implement an EPR. But can you tell me kind of what sets California apart?

SPEAKER_02 15:28

Absolutely. So the California's program uh I would say is the most comprehensive and aggressive in the country, largely because it goes well beyond just funding recycling. Under SB 54, uh producers are subject to several specific statutory requirements. So by 2032, 100% of single-use packaging and single-use plastic food serviceware sold in California must be recyclable or compostable. In addition, 65% of single-use plastic packaging and single-use food serviceware must be recycled. And lastly, there must be a 25% reduction of single-use plastic packaging and single-use food serviceware compared to 2023 data. So this is not just about managing waste, uh, it's actively pushing changes in material selection and packaging design. So compared to other states, California's program is broader in scope, it's more prescriptive, and has much more direct implications on how manufacturers design and package their products.

SPEAKER_01 16:39

It sounds extremely ambitious.

SPEAKER_02 16:42

Extremely ambitious.

SPEAKER_01 16:44

Yes. So you have been to the state summit before, and a big component of it is kind of the face-to-face meetings with lawmakers and you know, with panelists who appear at these meetings. Can you just tell me a little bit about how significant these meetings are in communicating our industry's priorities?

SPEAKER_02 17:02

Absolutely. In my personal opinion, I think they're extremely valuable. A lot of these policies are still being shaped, and there's real opportunity to provide input, especially at the state level where engagement can be more direct. When you're usually having these meetings, you're meeting with the actual legislators themselves. You know what I mean? With staffers, you're meeting with the legislators themselves. And being able to sit down with these legislators and regulators and explain how these policies affect real products, real installation, and ultimately the consumers themselves. That makes a real difference. It really helps ground the conversation into practical realities.

SPEAKER_01 17:43

I believe it. I think that it is there is definitely something to be said for having to defend and explain your policy to the people who will be directly impacted by it. Absolutely. Absolutely. So with that in mind, is there anything you'd like to add for members who are on the fence about attending state summit?

SPEAKER_02 18:03

I would say if you're impacted by state-level policy or regulations, and I would say most of our members are, this is one of the most effective ways to stay ahead about what's coming. You're getting direct access to key legislators and regulators. You get real-time insight about where these policies are going and a chance to help shape the conversation. And especially in a state like California, what happens in California doesn't always stay there. You know, it does influence other states and other policies in other states. So being engaged in California early is critical in my opinion.

SPEAKER_01 18:42

I think we've regularly referred to them as kind of providing the roadmap to states that want to follow them.

SPEAKER_02 18:48

Yes, absolutely. That's a good way to put it.

SPEAKER_01 18:52

Well, thank you so much for joining me and for sharing a little bit about your panel. I am excited to hear it in person in Sacramento, and I hope that everyone listening will join us there.

SPEAKER_02 19:03

And thank you for having me. This has been great.

SPEAKER_01 19:08

Again, that was Mackenzie Horrigan, Senior Manager of International and Domestic Policy, and Matthew Smith Heisler, Director of Regulatory Affairs. They will be participating in the AHRI State Summit in Sacramento, California. If we don't see you at this year's event, we hope to see you in Albany in 2027. There's no shortage of opportunities to get involved in our state and federal advocacy efforts. I'll post the links to our upcoming advocacy events in our general advocacy landing page for you in the episode notes. If you enjoyed this episode, please subscribe and rate our podcast on Apple Podcasts and Spotify. And please feel free to share.