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HEARTH, PATIO & BARBECUE ASSOCIATION

2020 BOARD OF DIRECTORS MEETING

AGENDA

9:00am - 3:45pm Hilton Riverside

Tuesday, March 10, 2020 Jefferson Ballroom

Chairperson: Joe Burns

I. CALL TO ORDER AND WELCOME Mr. Burns

II. ANTI-TRUST POLICY Mr. Deese

III. APPROVAL OF AGENDA Mr. Burns

IV. EXECUTIVE DOCKET (CLOSED MEETING)

V. CONSENT DOCKET Mr. Burns

A. Approval of minutes of teleconference of December 16, 2019

B. Approval of changes to SEHPBA’s By-Laws

VI. TREASURER’S REPORT Mr. Evans/Mr. Washington

VII. REPORT DOCKET, Part One

A. HPBExpo Update Ms. Feely/Ms. VanDermark

VIII. ISSUES DOCKET

A. Items for a Vote

1. Approval of Charter for New Market Research Ms. McGee/Mr. Downs

& Communications Committee

2. Approval of Dues Levels for Test Labs and Consultants Mr. Goldman/Ms. Dellen

joining HPBA

B. Discussion Items

1. Decarbonization Mr. Carroll/Ms. McGee/

Mr. Crouch/Mr. Adair

2. Incidence Rate Initiative Ms. McGee/Mr. Downs

3. New Source Performance Standards Mr. Carroll/Mr. Crouch/

Ms. Feinstein

4. Licensing of Hearth Professionals Ms. Feinstein/Mr. Vlahos

IX. REPORT DOCKET, Part Two

B. Membership & Affiliates Ms. Dellen

C. Government Affairs Mr. Carroll

D. Communications Ms. McGee

E. Research Mr. Downs

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F. Education Foundation Mr. Vlahos

G. Affiliate reports

1. MWHPBA – Progress on the Missouri Statewide Mechanical Ms. Geil

Licensing bill

X. OLD BUSINESS

XI. NEW BUSINESS

XII. 2020 MEETING DATES & LOCATION

A. Summer: June 10, 2020, Nashville, TN

B. Fall: October 21, 2020, Quebec City, P.Q.

XIII. ADJOURNMENT

* * * 2020 New Board of Directors Meeting * * * 3:45pm - 4:00pm

Agenda Attached

2


2020 BOARD OF DIRECTORS MEETING

AGENDA

3:45pm - 4:00pm Hilton Riverside

Tuesday, March 10, 2020 Jefferson Ballroom

I. CALL TO ORDER Mr. Burns

II. NOMINATING COMMITTEE REPORT Ms. Ryan

A. New Board Members

B. Election of Officers\

1. Chairman

2. Vice Chairman

3. Secretary

4. At-Large Executive Committee Member

III. 2020 COMMITTEE CHAIRMEN APPOINTMENTS Mr. Hoffman

IV. 2020 MEETING DATES & LOCATION

A. Summer: June 10, 2020, Nashville, TN

B. Fall: October 21, 2020, Quebec City, P.Q.

V. ADJOURNMENT

3

Consent Docket V. A.

Minutes

DRAFT MINUTES


BOARD OF DIRECTORS TELECONFERENCE

Monday, December 16, 2019 (866) 316-1519

2:00pm Passcode: 3349 7850#

I. CALL TO ORDER AND WELCOME

Chairman Burns called the teleconference meeting to order at 2:06pm. He thanked

everyone for attending.

PRESENT

Members Joe Burns

Jodi Burson

Mark Calomino

Roger Evans

Jeni Forman

Henry Hall

Chris Hartley

Dick Hoffman

Jake Hunter

Dave Kuhfahl

Rick Lapp

Laura Litchfield

Eric Massey

Tim Reed

Amie Ryan

Peter Schoenfeld

Glen Spinelli

Wayne Stritsman

Not in Attendance

Tom Krebs

Ingrid Schroeter Staff Michael Deese, General Counsel

Diane Dellen

Cameron Downs

Jack Goldman

Emily McGee

Kelly VanDermark

Rick Vlahos

Jonathan Williams, MAHPBA

II. ANTITRUST POLICY

Mr. Deese reviewed the HPBA Antitrust Compliance Policy and reminded everyone

that it was their obligation to familiarize themselves with both the longer policy and

the summary.

4


Minutes

III. APPROVAL OF AGENDA

It was

MOVED BY MS. RYAN AND SECONDED BY MR. SPINELLI

that the agenda for the December 16, 2019 Board of Directors meeting be

approved as presented.

MOTION PASSED UNANIMOUSLY.

IV. APPROVAL OF HPBA PROPOSED 2020 BUDGET

Mr. Evans reviewed the highlights of the proposed 2020 budget. The Board discussed

the budget.

It was

MOVED BY MR. EVANS AND SECONDED BY MS. RYAN

that the proposed 2020 Budget be approved as presented.


V. APPROVAL OF HPBEF 2020 BUDGET

Mr. Vlahos reviewed the proposed 2020 budget for the Education Foundation. He

noted that the HPBEF Board of Governors had approved the budget on October 22,

2019.

It was

MOVED BY MR. REED AND SECONDED BY MR. CALOMINO

that the proposed 2020 HPBEF Budget be approved as presented.

MOTION PASSED UNANIMOUSLY. VI. APPROVAL OF HPBEF BOARD MEMBERS FOR 2020

Mr. Vlahos noted that three HPBEF Board Members are term-limited. Three new

members are being proposed: Ron Segars, Jr., Gene Schutte, and Joslyn Tang.

It was

MOVED BY MS. FORMAN AND SECONDED BY MS. BURSON

5


Minutes

that the new HPBEF Board Members be approved as presented.


VII. HPBExpo

1. HPBExpo Futures

a. 2023

Ms. VanDermark reported that for 2023, the Expo Committee is

recommending that Expo move from Dallas to Louisville for various

reasons, including overall satisfaction in Dallas and other issues with the

city.

It was

MOVED BY MR. HOFFMAN AND SECONDED BY MR. LAPP

that the 2023 HPBExpo be moved to Louisville, KY.


b. 2024

Ms. VanDermark noted that the 2024 Builders Show was scheduled for the

week prior to HPBExpo and that would make it impossible for many key

exhibitors to exhibit at both shows. The Expo Committee recommends that

the 2024 Expo shift to mid- February. The show would remain in Nashville

as planned. The Board discussed some concerns about being earlier than

usual in the year.

It was

MOVED BY MR. EVANS AND SECONDED BY MR. HUNTER

that the 2024 HPBExpo be moved to February 12-15.


c. 2032

Ms. VanDermark noted that the dates of the 2032 HPBExpo would be

March 10-13, as opposed to the previously discussed March 6-9.

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Minutes

2. HPBExpo 2020

Ms. VanDermark reviewed the current status of attendance and exhibitors at

HPBExpo 2020. She reported that while the numbers are down, they are currently

increasing. She also outlined some of the upcoming marketing efforts that should

result in a further increase.

VIII. MAHPBA BY-LAWS CHANGES

Mr. Williams reviewed some changes to the MAHPBA By-Laws that needed to be

approved by the HPBA Board.

It was

MOVED BY MR. LAPP AND SECONDED BY MR. HALL

that the changes to the MAHPBA By-Laws, as outlined in a memo submitted by

Mr. Williams, be approved as presented.

MOTION PASSED UNANIMOUSLY. IX. NEW AD AGENCY

Ms. VanDermark reported that at the request of the Expo Committee, staff at HPBA had

requested proposals from several event marketing companies. After careful consideration,

HPBA has signed on with “mdg,” which is a relatively large, data-driven agency. She

noted that this agency also has the potential to provide good insight into HPBExpo in

general.

X. OLD BUSINESS

There was no old business. XI. NEW BUSINESS

There was no new business.

XII. NEXT MEETING

The next meeting will be at HPBExpo 2020 on March 10th in New Orleans.

XIII. ADJOURNMENT

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Minutes

The Chair asked for a motion to adjourn.

It was

MOVED BY MR. LAPP AND SECONDED BY MR. CALOMINO

to adjourn the meeting.

MOTION PASSED UNANIMOUSLY and the meeting adjourned at 2:42pm.

Respectfully submitted, Emily McGee

Director – Communications

8

Consent Docket V. B.

MEMORANDUM

TO: Board of Directors

FROM: Diane Dellen

DATE: February 18, 2020

RE: Approval of SEHPBA Bylaws Changes (February 2020)

Under Section II. A, Paragraph One, of HPBA’s Affiliation Agreement, new Affiliate

bylaws and amendments to Affiliate bylaws are subject to approval by the HPBA Board of

Directors. Attached for your approval is a memo from Wendy Salter, President of SEHPBA,

explaining the changes and a copy of the amended bylaws.

The approval of SEHPBA’s Bylaws changes will be scheduled for the consent docket at

the March 2020 meeting of the Board in New Orleans

If you have any questions, please contact me or Jack.

Cc: Wendy Salter, President, SEHPBA

Cindy Wise, Executive Director, SEHPBA

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of 9 Revised 9/8/2019

BYLAWS

Of

SOUTHEAST HEARTH, PATIO, & BARBECUE ASSOCIATION (SEHPBA)

ARTICLE I

Name

The name of this organization is the SOUTHEAST HEARTH, PATIO, & BARBECUE

ASSOCIATION

(SEHPBA), a not-for-profit corporation, hereinafter "the association."

ARTICLE II

Principal Place of Business

The association shall have and continuously maintain in the state of North Carolina a

registered office and a registered agent whose office is identical with such registered office,

and may have such other offices as the Board of Directors may from time to time determine.

ARTICLE III

Purposes

The purpose of the association is to serve as an affiliate of the Hearth, Patio, & Barbecue

Association, a non-stock membership association incorporated in the District of Columbia

(hereinafter "HPBA"), and to provide association services and benefits to its members in an

area prescribed by the Board of Directors of the Hearth, Patio, & Barbecue Association;

including, but not limited to:

1. Providing a forum for discussion of relevant local, regional, national and

international issues;

2. Representing the interests of its members with state and local government and/or

regulatory bodies, code bodies or other interested parties in jurisdictions where

the corporation is located;

3. Recruiting and retaining new members, including all types of entities with an

interest in the hearth, patio, and barbecue products industry;

4. Developing and/or obtaining educational products and programs, and providing

them on a regular basis to its members;

5. Preparing and distributing local publications;

6. Preparing and initiating local promotions to advance the industry and its interests;

7. Supporting regional and/or national initiatives to benefit the industry;

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8. Promoting and actively supporting the annual HPBEXPO;

9. Carrying on such other lawful activities as may, from time to time, be directed by

the Board of Directors of the association, and which are not in violation of or in

opposition to the purposes, bylaws, and activities of the HPBA.

ARTICLE IV

Membership

Section 1. Categories. Categories of membership in the association shall correspond

with categories established for membership in the HPBA, as follows:

A. Distributors Category

B. Retailers Category

C. Service Category

D. Associates Category

E. Manufacturers Representative Category

F. Non-Profit Category

G. Manufacturers Category

and such other categories as the Board of Directors of the HPBA shall, from time to time

establish. Any individual, partnership, association or corporation eligible for membership in

more than one category must become a member of the association in the category which is the

primary business of the member or in the higher dues paying category.

A. Distributors Category. Any individual, partnership, association or

corporation engaged in the wholesale distribution to dealers or builders or other

channels of distribution of hearth, barbecue or patio related products shall be

eligible for membership in the Distributors Category.

B. Retailers Category. Any individual, partnership, association or corporation

engaged in the sale to consumers of hearth, barbecue or patio related products shall be eligible for membership in the Retailers Category.

C. Service Category. Any individual, partnership, association or corporation engaged

in providing mechanical services relating to hearth, barbecue or patio related products

shall be eligible for membership in the Service Category.

D. Associates Category. Any individual, partnership, association or corporation having a

commercial interest in hearth, barbecue, or patio related products and not eligible for any

other nonprofit category shall be eligible for membership in the Associates Category.

E. Manufacturer Representative Category. Any individual, partnership, association or

corporation engaged in providing independent sales representation for manufacturers

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of hearth, barbecue or patio related products shall be eligible for membership in the

Manufacturer Representative Category.

F. Non-Profit Category. Any individual, partnership, association or corporation having a

non-profit, non-commercial interest in hearth, barbecue, or patio related products shall be

eligible for membership in the Non-Profit Category.

Section 2. Manufacturing Members. Manufacturer members of HPBA shall be entitled to full

voting membership in the association, provided that they petition the association for membership

and supply the name of one individual to represent that manufacturer in the association's area.

HPBA shall pay a portion of the dues revenues it receives from manufacturer members to the

association pursuant to a formula prescribed by the HPBA Board of Directors. Additional

representatives of such manufacturer can participate as a full member of the SEHPBA upon the

payment of an annual fee as determined by the affiliate.

Section 3. Voting. Each member of each category except for the non-profit category shall be

entitled to one vote on all matters brought before that category or before the entire association.

Proxy voting shall be permitted subject to rules established by the Board of Directors from time to

time including but not limited to notice and form. On all matters brought before the membership

for vote, a majority of those voting shall prevail. All matters of business of the association, except

as otherwise specified in these Bylaws, may be submitted to the members on a mail or electronic

ballot by direction of the Board of Directors, provided that a thirty-day (30) period shall be

permitted for voting. On all mail or electronic ballots, a majority of the members voting shall

prevail.

Section 4. Admission to Membership. Application for membership in all categories other than

Manufacturer shall be made in writing on such form as may be approved by the Board of

Directors of the association and accompanied by the applicable enrollment fee as established

by the Board of Directors of the association. If a non-manufacturer is not accepted for

membership by the association that individual or company may appeal the action of the

association to the Board of Directors of the HPBA, and the decision of a majority of the Board

of Directors of the HPBA shall be binding upon the association.

Sections 5. Suspension and Expulsion. Any member may be suspended or expelled for

nonpayment of dues. Except for nonpayment of dues, a member may only be suspended or

expelled for due cause upon a majority vote of the Board of Directors. The Board of Directors

of the association shall provide notice to a member prior to suspension or expulsion for due

cause, and a hearing shall be provided if requested by the member. If a member is suspended or

expelled by the association, that member may appeal the action to the Board of Directors of the

HPBA and the decision of a majority of the Board of Directors of the HPBA shall be binding

upon the association.

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ARTICLE V

Meetings of Members

Section 1. There shall be an Annual Meeting of the members and such other meetings of the

members as the Board of Directors shall direct, the dates and sites for which shall be set by

the Board of Directors.

The Annual Meeting may be held, at the discretion of the Board of Directors, as a physical,

electronic, or other approved means for holding such a meeting.

Section 2. Members shall be notified of meetings not less than ten (10) in writing or

electronically. or more than forty (40) days in advance in writing.

Section 3. A quorum shall be deemed present at the Annual Meeting or other

membership meetings if at least ten (10) voting members are present.

ARTICLE VI

Board of Directors

Section 1. Number and Term of Office. The members of the association shall elect not less

than nine or more than fifteen individuals who are members or employees of members of the

association to serve on the Board of Directors for two-year terms. except for the Treasurer

which serves for a three year term. There shall be at least one member from each state: North

Carolina, South Carolina, Virginia, Georgia, Tennessee, Alabama, and Florida. The remaining

Directors will be "At Large".

Section 2. Nomination and Election. A Nominating Committee consisting of three members

of the Board of Directors shall be appointed by the President of the association, subject to the

approval of the Board of Directors, not less than ninety (90) days before the Annual Meeting

of the association. The Nominating Committee shall nominate candidates for election to the

Board and publish the list of nominees not less than forty-five (45) days prior to the Annual

Meeting. Additional nominations for election to the Board must be made by five (5) or more

voting members and be submitted in writing or electronically to the association not less than

thirty (30) days before the Annual Meeting. These nominations shall be included on the

official ballot. Voting for Director candidates shall be by return mail or email to the

association.

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Section 3. Powers and Duties. The Board of Directors shall have the power to make rules and

provisions, consistent with these bylaws and the Affiliation Agreement between the

association and HPBA, for the carrying out of the work and activities of the association; to

approve annual budgets of expenditures and amendments thereto; to have charge of all

property of the association; and to perform all other acts necessary or proper to carry out the

work of the association.

Section 4. Meetings. The President shall call meetings of the Board of Directors as the occasion

warrants, provided that that Board must meet at least twice each year. The President must call a

meeting of the Board of Directors within thirty (30) days if requested in writing or electronically

by at least one-third of the members of the Board. Reasonable notice of all meetings shall be

provided.

Section 5. Quorum and Voting. A majority of the members of the Board of Directors

shall constitute a quorum. All decisions of the Board shall be by majority vote. BYLAWS

Section 6. Interim Action. The Board of Directors may take official action on any matter in the

interim between meetings by mail, electronic or telephone ballot confirmed by mail or

electronically by a majority vote of the Board.

Section 7. Vacancies. Any vacancy occurring on the Board of Directors shall be filled by

appointment of the President with the approval of a majority of the remaining members of the

Board of Directors. A Director appointed to fill a vacancy shall be appointed for the unexpired

term of his or her predecessor. If a Board member is absent from two Board meetings in a

twelve-month period, regardless of the reasons for his/her absence, he/she will forfeit his/her

position on the Board, unless at the discretion of the President the forfeiture is waived.

ARTICLE VII

Officers

Section 1. Number. The elected officers of the association shall be a President, a Vice-President,

a Secretary and a Treasurer, all of whom shall serve without compensation. The Board may

decide to have one individual serve as both Secretary and Treasurer. The Board of Directors

may provide for reimbursement of reasonable expenses incurred by the elected officers in the

execution of their duties.

Section 2. Election and Term. The Board of Directors by itself or by a vote of the association

membership shall select the officers from the membership of the Board. All officers shall hold

15


office for (2) two years or until their successors are duly elected and installed. No more than

33% of the Board shall rotate off in any one year.

Section 3. Staff. The Board of Directors, at its discretion, may employ or retain a staff executive

who shall be an officer of the association, legal counsel, and other staff assistants on a part or

full time basis, and may assign responsibility and authority for the proper and effective direction

of the affairs of the association. The Board of Directors, at its discretion, may hire such outside

consultants or staff, as it may consider appropriate.

ARTICLE VIII

Duties of Officers

Section 1. President. The President shall preside at all meetings of the association and all

meetings of the Board of Directors; shall appoint all committees subject to the approval of a

majority of the Board and perform such other duties and functions as custom and

parliamentary usage require.

Section 2. Vice President. The Vice-President shall assume the duties of the President at the

latter's request or absence and shall succeed to the presidency if that office shall become vacant.

Section 3. Secretary. The Secretary of the association shall attend meetings of the association

and of the Board of Directors and keep an accurate record of the proceedings thereof; shall give

notice of the meetings of the members prescribed by these bylaws, and shall perform such other

duties as may be required by law, by vote of the Board of Directors or by these bylaws. The

Secretary may delegate these duties in a reasonable manner.

Section 4. Treasurer. The Treasurer shall oversee and properly account for the receipt and

expenditure of all funds of the association, keep proper records of all receipts and expenditures,

and render a complete financial report at the Annual Meeting and such additional financial reports

as may be requested by the SEHPBA Board of Directors or the HPBA Board of Directors. The

Treasurer may delegate these duties in a reasonable manner.

ARTICLE IX

Committees

Section 1. Executive Committee. The President, Vice President, Secretary, Treasurer, and

HPBA Board Representative shall constitute an Executive Committee to be vested with such

authority as may be directed by the Board of Directors. In addition, the immediate past president

of the association, if any, shall be a member of the Executive Committee in a non-voting

capacity. The Executive Committee shall manage the affairs of the association in the interim

16


between meetings of the Board of Directors. The Executive Committee shall have the authority

to engage and discharge the staff executive of the Association with the approval of the Board of

Directors and shall act as the Review and Compensation Committee for the executive.

Section 2. Additional Committees. The Board of Directors may form additional standing

committees to oversee and perform the work of the association as may be appropriate. The

Board shall approve the charter for any such committees including designation of size of the

committee; qualifications, term and appointment process for the committee chairman and

members; and scope of the committee's responsibility and authority. In addition, the Board of

Directors may, from time-to-time, form committees or task forces at its discretion that are

assigned specific tasks or activities and whose existence will sunset when their tasks are

completed.

ARTICLE X

General Provisions

Section 1. Dues. Enrollment fees, dues, and assessments shall be established by the Board of Directors of the association subject to review of the HPBA Board of Directors to ensure that

they are not unreasonable or discriminatory.

Section 2. Procedure. In the absence of any special rules of procedure, Robert's Rules of Order

shall be the guide of the association in all matters of parliamentary practice.

Section 3. Fiscal Year. The fiscal year of the association shall correspond with the fiscal year of

the HPBA.

Section 4. Indemnification. The association shall indemnify any and all of its current staff or

former officers, directors, committee members, agents and staff against expenses, judgements,

decrees, fines, penalties and amounts paid in defense or settlement of pending or threatened

civil or criminal proceedings or other claims in which they or any or them are made parties in

connection with or related to their being or having been officers, directors, committee

members, agents or staffer the association, to the full extent permitted by law.

Section 5. Insurance - The association may purchase and maintain insurance on behalf of the

association and any person who is or was serving the association as an officer, director,

committee member, agent or staff against any liability or claim asserted against the association

or such person in connection with or related to their being or having been officers, directors,

17


committee members, agents or staff of the association whether or not the association would

have the power to indemnify such person(s) in such liability or claim.

Section 6. Director And Committee Expenses - Directors shall be reimbursed for travel

expenses to attend board meetings, except the one, if any, held at HPBEXPO. Members that sit

on HPBA committees shall be reimbursed for travel expenses to attend HPBA Committee

meetings. The HPBA Board Representative shall be reimbursed for travel expenses to attend

HPBA board meetings, and other meetings required for the position. Reimbursement shall be at

the current US Government rate, plus other direct expenses: i.e.: hotel, cab fare, parking, etc.

Less any reimbursement from HPBA.

ARTICLE XI

Amendments

Section 1. Proposed Amendments. A proposed amendment to the bylaws of the association may

be initiated by a two-thirds majority vote of a quorum of the Board of Directors, or by a petition

submitted to the Secretary and signed by not less than 15 percent (15%) of the voting members

of the association. If a proposed amendment is initiated by petition, the Board of Directors must

submit the proposed amendment to the membership for a vote within one hundred-eighty (180)

days after the petition is received by the Secretary.

Section 2. Notice and Approval. Proposed amendments must be submitted to the membership

and to the Board of Directors of the HPBA in writing at least thirty (30) days in advance of the

Special or Annual Meeting of the association at which the proposed amendment will be presented

for discussion and voted upon, or submitted to the membership for approval by mail or electronic

ballot in accordance with the provisions of Article IV, Section 2. The bylaws may be amended by

a majority vote of the members. If any such amendments are inconsistent with the terms and

conditions of the Affiliation Agreement between the association and HPBA, the Board of

Directors of HPBA may elect to approve the amendment or terminate the Affiliation Agreement.

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ARTICLE XII

Dissolution

Consistent with the provisions of Section 501(c)(6) of the United States Revenue Code of 1986,

as amended, or any corresponding section of any future United States Revenue Code, the

association shall be organized as a not-for-profit trade association. No part of net earnings of the

association shall inure to the benefit of any officer, director or other person, except the

association may pay reasonable compensation for services rendered. The association shall use its

funds and assets only to accomplish the objects and purposes set forth in the Articles of

Incorporation and Bylaws and no part of these funds and assets shall inure or be distributed to the

members of the association. On dissolution of the association, any funds or assets remaining after

payment of the association's obligations shall be distributed to the HPBA.

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Treasurer’s Report VI.

MEMORANDUM

TO: HPBA Board of Directors

FROM: Roger Evans, Board Treasurer

Robert Washington, Director – Finance & Operations

DATE: February 18, 2020

RE: Treasurer’s Report

2019 Financial Statements (unaudited)

1. Accounting changes update

The unaudited financial statement of December 2019 represents the first full year of

revised accounting practices advised by HPBA’s current auditor, Lane & Company.

Under the amended accounting practices, HPBA commenced recording Expo expenses

based on the year that a benefit of goods or services were received, rather than assigning

those expenses to the year of Expo for which the expenses were incurred. Although the

accounting practice is a departure from methodologies used in past years, the current

method more closely aligns with the accrual accounting practices of not-for-profit

organizations.

To fully make this change in methodology, HPBA had to account for two financial

periods in a single reporting year. Hence a 2019 budget revision, approved at the Board

meeting in October 2019, was approved to account for the inclusion of those 2020

expenses incurred in 2019, thus increasing 2019 budgeted expenses to $5.98 million, an

increase of $326,000.

Upon further examination of the revised 2019 budget, we realized that the methodology

change was implemented during the audit of the 2018 books, i.e., a portion of the 2019

Expo expenses were recorded in 2018. As a result, the October revision to the 2019

budget was unnecessary. Because the Board did approve a revised budget, however, we

are including end-of-year financial statements for both the original (file labelled

“Original 2019 Budget”) and revised budgets (file labelled “Revised 2019 Budget”).

2. FY 2019 Unaudited Financials

20

Treasurer’s Report VI.

The presentation of the following operating totals and analysis of HPBA’s financial

position have been compared to the “Original 2019 Budget” for budget variance.

o Revenues

With a decline in Sponsorships & Show Guide Advertising, coupled with a

decrease in Affiliate revenues and membership dues, revenue were 3% below

budget. However due to a 32% increase in miscellaneous revenues, HPBA’s total

operating revenues (Memberships, Misc., & Expo) saw only a slight decline

of 2.5% in revenue compared to budget.

o Expenditures

Over the years, HPBA has continually re-examined its spending to identify areas

where it might reduce spending, and 2019 was no different. For the year

ending 2019, operational expenditures were kept below budget, achieving savings

of nearly $225,000.

o Change in Operation Assets (revenues less expenditures)

Due to the shortfall in operating revenues, the savings gained in reduced spending

were not enough to show a positive change in operational assets, resulting in a

loss of ($41,828).

o Change in Net Assets (operation assets ± investment activity)

With a strong market in 2019 and HPBA’s diversified portfolio of investments,

HPBA saw very positive investment gains in 2019, with interest income returning

$423,371 and realized/unrealized gains netting $70,152. The investment gains

significantly offset the unfavorable change in Operation Assets, resulting in a total

change in net assets, equaling $451,695.

3. 2019 Year-End Audit

For the fiscal year ending December 2019, Lane & Company will conduct HPBA’s 2019

audit. A preliminary audit examination will begin on March 20, 2020, with audit

fieldwork starting the week of March 30th.

21

Page: 1

Hearth, Patio & Barbecue AssociationConsolidated Statement of Activities

For the Period Ending: December 31, 2019

PeriodActual

PeriodBudget

Over(Under)Budget

YTDActual

YTDBudget

Over(Under)Budget

AnnualBudget

REVENUE:

MEMBERSHIPManufacturer Dues: Level 1A $ 0 0 0 55,500 48,000 7,500 $ 48,000Manufacturer Dues: Level 1B 0 0 0 38,666 64,000 (25,334) 64,000Manufacturer Dues: Level 2 0 0 0 60,800 86,981 (26,181) 86,981Manufacturer Dues: Level 3 0 0 0 106,400 113,882 (7,482) 113,882Manufacturer Dues: Level 4 0 0 0 122,250 143,018 (20,768) 143,018Manufacturer Dues: Level 5 0 0 0 134,750 109,910 24,840 109,910Manufacturer Dues: Level 6 0 0 0 102,000 153,050 (51,050) 153,050Manufacturer Dues: Level 7 0 0 0 133,500 155,271 (21,771) 155,271Manufacturer Dues: Level 8 0 0 0 97,500 32,376 65,124 32,376Manufacturer Dues: Level 10 0 0 0 55,000 55,000 0 55,000Barbecue Manufacturer Dues 0 0 0 108,000 145,148 (37,148) 145,148HPBA Share: Manuf Rep Dues 0 0 0 7,932 9,500 (1,568) 9,500HPBA Share: Distributor Dues 173 0 173 21,647 24,320 (2,673) 24,320HPBA Share: Non-Profit Dues 0 0 0 684 0 684 0HPBA Share: Associates Dues 0 0 0 2,878 4,500 (1,622) 4,500HPBA Share: Retailer Dues 65 0 65 76,975 86,500 (9,525) 86,500HPBA Share: Service Dues 65 0 65 16,562 19,500 (2,938) 19,500

Total Membership Dues 303 0 303 1,141,044 1,250,956 (109,912) 1,250,956

MISCELLANEOUSMiscellaneous 0 0 0 10,484 0 10,484 0Directory Advertising 800 1,417 (617) 19,440 17,000 2,440 17,000Directory - Logo Listings 2,160 1,417 743 9,064 17,000 (7,936) 17,000NewsCast Advertising Royalty 489 1,042 (553) 25,702 12,500 13,202 12,500Affinity Programs 725 1,000 (275) 8,547 12,000 (3,453) 12,000Membership Sales Items 200 0 200 3,837 0 3,837 0

Total Miscellaneous Revenue 4,374 4,876 (502) 77,074 58,500 18,574 58,500

INTEREST INCOMEInterest Income 57,163 7,500 49,663 423,371 90,000 333,371 90,000

Total Interest Income 57,163 7,500 49,663 423,371 90,000 333,371 90,000

EXPO Revenue - '19Booth Sales - Indoor 0 0 0 3,524,400 3,553,245 (28,845) 3,553,245Booth Sales - Outdoor 0 0 0 192,500 198,061 (5,561) 198,061 22

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Program Listings (addl) 0 0 0 2,000 1,000 1,000 1,000Show Guide Advertising/Logos 800 0 800 16,080 40,000 (23,920) 40,000Sponsorship Opportunities 0 0 0 30,914 60,000 (29,086) 60,000OBR Donation 0 0 0 800 0 800 0New Product Paviliion 0 0 0 15,700 13,000 2,700 13,000Industry Party/Tailgating 0 0 0 19,000 10,000 9,000 10,000Registration Fees 0 0 0 131,928 134,845 (2,917) 134,845Show Floor Meeting Space Fees 0 0 0 7,500 0 7,500 0Administrative Fees 0 0 0 128,560 50,000 78,560 50,000Hotel Commission/Bus Rebates 6,852 0 6,852 104,298 161,000 (56,702) 161,000Miscellaneous Revenue 0 0 0 1,700 1,500 200 1,500

Total EXPO Revenue 7,652 0 7,652 4,175,380 4,222,651 (47,271) 4,222,651

TOTAL REVENUE $ 69,492 12,376 57,116 5,816,869 5,622,107 194,762 $ 5,622,107

EXPENSES:

FINANCE & OPERATIONSAccounting $ 0 0 0 0 2,500 (2,500) $ 2,500Audit/Tax Prep 0 0 0 34,450 21,000 13,450 21,000Awards/Plaques 192 500 (308) 2,903 1,750 1,153 1,750Bank Charges/CC Fees 1,153 1,000 153 10,782 12,000 (1,218) 12,000Fees: Filing/PR/Admin 962 620 342 8,208 7,000 1,208 7,000Business & Licensing-Fees 0 0 0 638 200 438 200Charitable contributions 0 0 0 5,000 5,000 0 5,000Depreciation 3,715 5,175 (1,460) 49,380 62,100 (12,720) 62,100Website Hosting/Maintenance 0 0 0 0 0 0 0Computer Network Svcs/Maint 26,288 3,667 22,621 65,040 44,000 21,040 44,000Dues & Subscriptions 0 545 (545) 16,631 18,000 (1,369) 18,000Equipment Rental/Maintenance 1,661 1,250 411 11,157 15,000 (3,843) 15,000Expense Reimb - HPBEF (2,925) (3,162) 237 (35,100) (37,988) 2,888 (37,988)Corporate Insurance 0 4,413 (4,413) 50,790 53,000 (2,210) 53,000Internet 135 163 (28) 1,619 2,000 (381) 2,000Legal 2,620 4,163 (1,543) 47,869 50,000 (2,131) 50,000Legal Travelers 5,000 0 5,000 5,000 0 5,000 0Meetings/Events/Reg Fees 0 0 0 16,684 16,000 684 16,000Miscellaneous 50 125 (75) 2,830 1,500 1,330 1,500Postage 132 413 (281) 2,180 5,000 (2,820) 5,000Printing/Typesetting/Copying 3 163 (160) 2,528 2,000 528 2,000Recruitment Costs 50 125 (75) 50 1,500 (1,450) 1,500Rent 24,289 23,609 680 293,772 283,308 10,464 283,308 23

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Salaries/Benefits/Taxes 21,289 15,163 6,126 208,140 182,000 26,140 182,000Staff Training/Development 0 125 (125) 0 1,500 (1,500) 1,500Supplies 2,534 1,413 1,121 21,989 17,000 4,989 17,000Computer Maint. 0 87 (87) 0 1,000 (1,000) 1,000Business Taxes 0 500 (500) 3,384 6,000 (2,616) 6,000Teleconferences 250 212 38 1,985 2,500 (515) 2,500Mobile Phones 88 106 (18) 1,043 1,250 (207) 1,250Telephone 613 663 (50) 8,862 8,000 862 8,000Temporary Help 1,328 125 1,203 21,313 1,500 19,813 1,500Travel - Board Members 0 2,087 (2,087) 22,695 25,000 (2,305) 25,000Travel - Staff 3,733 1,700 2,033 23,878 20,400 3,478 20,400Administrative Allocation-EXPO (23,137) (17,134) (6,003) (226,537) (205,553) (20,984) (205,553)

Total Finance & Operations Exp. 70,023 47,816 22,207 679,163 625,467 53,696 625,467

COMMUNICATIONSWebsite Hosting/Maintenance 1,860 2,924 (1,064) 28,724 35,000 (6,276) 35,000Dues & Subscriptions 866 363 503 18,184 15,000 3,184 15,000Image Database 15,143 0 15,143 15,143 0 15,143 0Meetings 0 140 (140) 475 1,700 (1,225) 1,700Miscellaneous 0 40 (40) 265 500 (235) 500Printing/Typesetting/Copying 0 0 0 135 0 135 0Journal 0 1,500 (1,500) 19,116 18,000 1,116 18,000Press Program/Website @ EXPO 50 250 (200) 933 3,000 (2,067) 3,000Marketing/Promotions 2,599 400 2,199 9,013 12,000 (2,987) 12,000Marketing/Promotions: BBQ 99 11,250 (11,151) 112,246 135,000 (22,754) 135,000Marketing/Promotions: Hearth 2,006 2,318 (312) 30,338 42,500 (12,162) 42,500Salaries/Benefits/Taxes 23,718 20,413 3,305 226,960 245,000 (18,040) 245,000Supplies 0 250 (250) 0 3,000 (3,000) 3,000Mobile Phones 50 50 0 600 600 0 600Travel - Committee 0 125 (125) 352 1,500 (1,148) 1,500Travel - Staff 0 500 (500) 2,441 6,000 (3,559) 6,000

Total Communications Expense 46,391 40,523 5,868 464,925 518,800 (53,875) 518,800

EDUCATIONSalaries/Benefits/Taxes 21,782 15,913 5,869 213,258 191,000 22,258 191,000

Total Education Expense 21,782 15,913 5,869 213,258 191,000 22,258 191,000

GOVERNMENT AFFAIRS 24

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Bank Charges/CC Fees 123 337 (214) 797 4,000 (3,203) 4,000West Coast Office Exps 605 750 (145) 7,914 9,000 (1,086) 9,000Dues & Subscriptions 125 375 (250) 5,289 4,500 789 4,500Legislative Activities 0 0 0 11,000 0 11,000 0Legislative Computer Tools 0 4,337 (4,337) 62,500 52,000 10,500 52,000Meetings 0 750 (750) 11,289 9,000 2,289 9,000Postage 0 13 (13) 35 150 (115) 150Printing/Typesetting/Copying 17 0 17 17 0 17 0Salaries/Benefits/Taxes 65,607 64,913 694 726,740 779,000 (52,260) 779,000Spec Proj: Affiliate Support 11,000 2,087 8,913 23,500 25,000 (1,500) 25,000Government Affairs Academy 0 125 (125) 0 1,500 (1,500) 1,500HPBAC Industry Profile Build 0 200 (200) 0 2,400 (2,400) 2,400Teleconferences 0 25 (25) 126 300 (174) 300Mobile Phones 225 237 (12) 2,597 2,800 (203) 2,800Travel - Committee (150) 1,250 (1,400) 1,713 15,000 (13,287) 15,000Travel - Staff 259 3,337 (3,078) 31,703 40,000 (8,297) 40,000Assessment: SFHAS Passthru Exp (86,147) 0 (86,147) 0 0 0 0Assessment: GHAS Passthru Exp (8,782) 0 (8,782) 0 0 0 0

Total Government Affairs Expense (17,118) 78,736 (95,854) 885,220 944,650 (59,430) 944,650

MEMBERSHIPBank Charges/CC Fees 3,691 587 3,104 13,315 7,000 6,315 7,000Computer Services 0 0 0 93 0 93 0Consulting: Directory 0 750 (750) 0 9,000 (9,000) 9,000Consulting: Brochure 0 163 (163) 0 2,000 (2,000) 2,000CV Database Maint/Developmt 792 267 525 22,105 23,000 (895) 23,000Meetings 0 163 (163) 36 2,000 (1,964) 2,000Membership Campaign 227 0 227 227 0 227 0Membership Marketing/Promo 735 0 735 735 0 735 0Miscellaneous 0 0 0 168 0 168 0Postage 60 1,587 (1,527) 12,312 19,000 (6,688) 19,000Printing/Typesetting/Copying 0 3,600 (3,600) 36,119 43,200 (7,081) 43,200Salaries/Benefits/Taxes 14,036 10,663 3,373 129,900 128,000 1,900 128,000Teleconferences 0 0 0 10 100 (90) 100Mobile Phones 50 25 25 600 300 300 300Travel - Committee 0 125 (125) 0 1,500 (1,500) 1,500Travel - Staff 0 250 (250) 1,888 3,000 (1,112) 3,000

Total Membership Expense 19,591 18,180 1,411 217,508 238,100 (20,592) 238,100

RESEARCHComputer Software/Services 384 37 347 477 400 77 400 25

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Dues & Subscriptions 0 63 (63) 0 800 (800) 800Meetings 0 38 (38) 61 500 (439) 500Salaries/Benefits/Taxes 12,698 10,837 1,861 123,573 130,000 (6,427) 130,000Statistics - Hearth Shipments 0 0 0 4,300 5,000 (700) 5,000Consumer Research 0 0 0 29,950 40,000 (10,050) 40,000Travel - Committee 0 0 0 123 0 123 0Travel - Staff 0 0 0 590 1,000 (410) 1,000

Total Research Expense 13,082 10,975 2,107 159,074 177,700 (18,626) 177,700

AFFILIATE SUPPORTMeetings 0 337 (337) 9,047 4,000 5,047 4,000Postage 0 125 (125) 112 1,500 (1,388) 1,500Printing/Typesetting/Copying 0 125 (125) 647 1,500 (853) 1,500Salaries/Benefits/Taxes 11,270 10,663 607 111,927 128,000 (16,073) 128,000Teleconferences 0 38 (38) 59 500 (441) 500Mobile Phones 0 25 (25) 0 300 (300) 300Travel - Staff 0 1,112 (1,112) 10,883 13,300 (2,417) 13,300Manuf Dues Share: Others 0 0 0 84,639 87,255 (2,616) 87,255Manuf Dues Share: Canada 0 0 0 92,704 88,938 3,766 88,938Affiliate Support: Canada 0 0 0 50,000 50,000 0 50,000

Total Affiliate Support 11,270 12,425 (1,155) 360,018 375,293 (15,275) 375,293

EXPOAdministrative Expense: 2019 23,137 17,134 6,003 226,537 205,553 20,984 205,553Attendee Promotion 38,177 0 38,177 316,178 347,000 (30,822) 347,000Audio-Visual: 2019 0 0 0 36,175 30,000 6,175 30,000Awards/Plaques: 2019 0 0 0 2,135 2,500 (365) 2,500Bank Chgs/CC Fees: 2019 1,277 7,500 (6,223) 57,130 90,000 (32,870) 90,000Bank Chgs/CC Fees: 2020 120 0 120 2,011 0 2,011 0Busing: 2019 0 0 0 88,331 88,331 0 88,331Computer Services: 2019 480 0 480 480 5,000 (4,520) 5,000Decorator: 2019 0 0 0 183,194 185,000 (1,806) 185,000Dues & Subscriptions: 2019 318 0 318 7,039 0 7,039 0Equipment Rental/Maint.: 2019 0 0 0 16,000 16,000 0 16,000EXPO Committee Mtgs: 2019 (1,551) 663 (2,214) 4,386 8,000 (3,614) 8,000First Aid: 2019 0 0 0 16,350 16,350 0 16,350General Food Service: 2019 0 0 0 15,399 25,000 (9,601) 25,000Gratuities: 2019 0 0 0 1,697 2,500 (803) 2,500Security Guards: 2019 0 0 0 110,229 110,000 229 110,000Events: 2019 0 0 0 22,416 25,000 (2,584) 25,000 26

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Insurance: 2019 0 0 0 5,725 12,000 (6,275) 12,000Insurance: 2020 0 0 0 7,315 0 7,315 0Legal: 2019 3,653 0 3,653 13,164 10,000 3,164 10,000Legal: 2020 0 0 0 749 0 749 0Meetings: Board/Comm.: 2019 0 1,667 (1,667) 20,067 20,000 67 20,000Operation BBQ Relief: 2019 0 0 0 800 0 800 0Outdoor Burn Area: 2019 0 0 0 24,190 83,000 (58,810) 83,000Outdoor Burn Area: 2020 1,250 0 1,250 11,250 0 11,250 0Photography: 2019 0 0 0 2,480 2,500 (20) 2,500Postage: 2019 1 0 1 4,807 10,000 (5,193) 10,000Printing/Copying: 2019 0 0 0 5,022 0 5,022 0Program Guide: 2019 0 0 0 36,836 36,000 836 36,000Registration Service: 2019 0 0 0 47,250 55,000 (7,750) 55,000Rental Hall: 2019 0 0 0 14,994 45,000 (30,006) 45,000Salaries/Benefits/Taxes 56,305 48,587 7,718 565,456 583,000 (17,544) 583,000Commissions 28,821 0 28,821 104,009 87,000 17,009 87,000Promotional Opportunity: 2019 0 0 0 23,976 25,000 (1,024) 25,000Promotional Opportunity: 2020 0 0 0 14,000 0 14,000 0Supplies: 2019 0 0 0 6,097 35,000 (28,903) 35,000Mobile Phones: 2019 75 0 75 741 2,000 (1,259) 2,000Telephone: 2019 205 1,667 (1,462) 17,892 20,000 (2,108) 20,000Temporary Help: 2019 0 0 0 20,471 20,000 471 20,000Committee Travel: 2019 0 0 0 7,200 14,400 (7,200) 14,400Travel - Staff 336 0 336 28,013 25,000 3,013 25,000VestaAwards Contribution: 2019 0 0 0 15,000 15,000 0 15,000Affiliate Registr Rebate: 2019 0 0 0 33,825 33,562 263 33,562Affiliate Revenue Share: 2019 0 0 0 312,664 290,693 21,971 290,693Booth Fee Discount: 2019 0 0 0 6,480 8,800 (2,320) 8,800

Total EXPO Expenses 152,604 77,218 75,386 2,456,160 2,589,189 (133,029) 2,589,189

TOTAL EXPENSES 317,625 301,786 15,839 5,435,326 5,660,199 (224,873) 5,660,199

INVESTMENT ACTIVITYRealized Gain/(Loss) 0 0 0 (3,488) 0 (3,488) 0Unrealized Gain/(Loss) (2,002) 0 (2,002) 73,640 0 73,640 0

Total Unrealized Loss (2,002) 0 (2,002) 70,152 0 70,152 0

CHANGE IN NET ASSETS $ (250,135) (289,410) 39,275 451,695 (38,092) 489,787 $ (38,092) 27

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REVENUE:

MEMBERSHIPManufacturer Dues: Level 1A $ 0 0 0 55,500 48,000 7,500 $ 48,000Manufacturer Dues: Level 1B 0 0 0 38,666 64,000 (25,334) 64,000Manufacturer Dues: Level 2 0 0 0 60,800 86,981 (26,181) 86,981Manufacturer Dues: Level 3 0 0 0 106,400 113,882 (7,482) 113,882Manufacturer Dues: Level 4 0 0 0 122,250 143,018 (20,768) 143,018Manufacturer Dues: Level 5 0 0 0 134,750 109,910 24,840 109,910Manufacturer Dues: Level 6 0 0 0 102,000 153,050 (51,050) 153,050Manufacturer Dues: Level 7 0 0 0 133,500 155,271 (21,771) 155,271Manufacturer Dues: Level 8 0 0 0 97,500 32,376 65,124 32,376Manufacturer Dues: Level 10 0 0 0 55,000 55,000 0 55,000Barbecue Manufacturer Dues 0 0 0 108,000 145,148 (37,148) 145,148HPBA Share: Manuf Rep Dues 0 0 0 7,932 9,500 (1,568) 9,500HPBA Share: Distributor Dues 173 0 173 21,647 24,320 (2,673) 24,320HPBA Share: Non-Profit Dues 0 0 0 684 0 684 0HPBA Share: Associates Dues 0 0 0 2,878 4,500 (1,622) 4,500HPBA Share: Retailer Dues 65 0 65 76,975 86,500 (9,525) 86,500HPBA Share: Service Dues 65 0 65 16,562 19,500 (2,938) 19,500

Total Membership Dues 303 0 303 1,141,044 1,250,956 (109,912) 1,250,956

MISCELLANEOUSMiscellaneous 0 0 0 10,484 0 10,484 0Directory Advertising 800 1,417 (617) 19,440 17,000 2,440 17,000Directory - Logo Listings 2,160 1,417 743 9,064 17,000 (7,936) 17,000NewsCast Advertising Royalty 489 1,042 (553) 25,702 12,500 13,202 12,500Affinity Programs 725 1,000 (275) 8,547 12,000 (3,453) 12,000Membership Sales Items 200 0 200 3,837 0 3,837 0

Total Miscellaneous Revenue 4,374 4,876 (502) 77,074 58,500 18,574 58,500

INTEREST INCOMEInterest Income 57,163 7,500 49,663 423,371 90,000 333,371 90,000

Total Interest Income 57,163 7,500 49,663 423,371 90,000 333,371 90,000

EXPO Revenue - '19Booth Sales - Indoor 0 0 0 3,524,400 3,553,245 (28,845) 3,553,245Booth Sales - Outdoor 0 0 0 192,500 198,061 (5,561) 198,061 28

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Program Listings (addl) 0 0 0 2,000 1,000 1,000 1,000Show Guide Advertising/Logos 800 0 800 16,080 40,000 (23,920) 40,000Sponsorship Opportunities 0 0 0 30,914 60,000 (29,086) 60,000OBR Donation 0 0 0 800 0 800 0New Product Paviliion 0 0 0 15,700 13,000 2,700 13,000Industry Party/Tailgating 0 0 0 19,000 10,000 9,000 10,000Registration Fees 0 0 0 131,928 134,845 (2,917) 134,845Show Floor Meeting Space Fees 0 0 0 7,500 0 7,500 0Administrative Fees 0 0 0 128,560 50,000 78,560 50,000Hotel Commission/Bus Rebates 6,852 0 6,852 104,298 161,000 (56,702) 161,000Miscellaneous Revenue 0 0 0 1,700 1,500 200 1,500

Total EXPO Revenue 7,652 0 7,652 4,175,380 4,222,651 (47,271) 4,222,651

TOTAL REVENUE $ 69,492 12,376 57,116 5,816,869 5,622,107 194,762 $ 5,622,107

EXPENSES:

FINANCE & OPERATIONSAccounting $ 0 0 0 0 2,500 (2,500) $ 2,500Audit/Tax Prep 0 0 0 34,450 21,000 13,450 21,000Awards/Plaques 192 500 (308) 2,903 1,750 1,153 1,750Bank Charges/CC Fees 1,153 1,000 153 10,782 12,000 (1,218) 12,000Fees: Filing/PR/Admin 962 620 342 8,208 7,000 1,208 7,000Business & Licensing-Fees 0 0 0 638 200 438 200Charitable contributions 0 0 0 5,000 5,000 0 5,000Depreciation 3,715 5,175 (1,460) 49,380 62,100 (12,720) 62,100Website Hosting/Maintenance 0 0 0 0 0 0 0Computer Network Svcs/Maint 26,288 3,667 22,621 65,040 44,000 21,040 44,000Dues & Subscriptions 0 545 (545) 16,631 18,000 (1,369) 18,000Equipment Rental/Maintenance 1,661 1,250 411 11,157 15,000 (3,843) 15,000Expense Reimb - HPBEF (2,925) (3,162) 237 (35,100) (37,988) 2,888 (37,988)Corporate Insurance 0 4,413 (4,413) 50,790 53,000 (2,210) 53,000Internet 135 163 (28) 1,619 2,000 (381) 2,000Legal 2,620 4,163 (1,543) 47,869 50,000 (2,131) 50,000Legal Travelers 5,000 0 5,000 5,000 0 5,000 0Meetings/Events/Reg Fees 0 0 0 16,684 16,000 684 16,000Miscellaneous 50 125 (75) 2,830 1,500 1,330 1,500Postage 132 413 (281) 2,180 5,000 (2,820) 5,000Printing/Typesetting/Copying 3 163 (160) 2,528 2,000 528 2,000Recruitment Costs 50 125 (75) 50 1,500 (1,450) 1,500Rent 24,289 23,609 680 293,772 283,308 10,464 283,308 29

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Salaries/Benefits/Taxes 21,289 15,163 6,126 208,140 182,000 26,140 182,000Staff Training/Development 0 125 (125) 0 1,500 (1,500) 1,500Supplies 2,534 1,413 1,121 21,989 17,000 4,989 17,000Computer Maint. 0 87 (87) 0 1,000 (1,000) 1,000Business Taxes 0 500 (500) 3,384 6,000 (2,616) 6,000Teleconferences 250 212 38 1,985 2,500 (515) 2,500Mobile Phones 88 106 (18) 1,043 1,250 (207) 1,250Telephone 613 663 (50) 8,862 8,000 862 8,000Temporary Help 1,328 125 1,203 21,313 1,500 19,813 1,500Travel - Board Members 0 2,087 (2,087) 22,695 25,000 (2,305) 25,000Travel - Staff 3,733 1,700 2,033 23,878 20,400 3,478 20,400Administrative Allocation-EXPO (23,137) (17,134) (6,003) (226,537) (205,553) (20,984) (205,553)

Total Finance & Operations Exp. 70,023 47,816 22,207 679,163 625,467 53,696 625,467

COMMUNICATIONSWebsite Hosting/Maintenance 1,860 2,924 (1,064) 28,724 35,000 (6,276) 35,000Dues & Subscriptions 866 363 503 18,184 15,000 3,184 15,000Image Database 15,143 0 15,143 15,143 0 15,143 0Meetings 0 140 (140) 475 1,700 (1,225) 1,700Miscellaneous 0 40 (40) 265 500 (235) 500Printing/Typesetting/Copying 0 0 0 135 0 135 0Journal 0 1,500 (1,500) 19,116 18,000 1,116 18,000Press Program/Website @ EXPO 50 250 (200) 933 3,000 (2,067) 3,000Marketing/Promotions 2,599 400 2,199 9,013 12,000 (2,987) 12,000Marketing/Promotions: BBQ 99 11,250 (11,151) 112,246 135,000 (22,754) 135,000Marketing/Promotions: Hearth 2,006 2,318 (312) 30,338 42,500 (12,162) 42,500Salaries/Benefits/Taxes 23,718 20,413 3,305 226,960 245,000 (18,040) 245,000Supplies 0 250 (250) 0 3,000 (3,000) 3,000Mobile Phones 50 50 0 600 600 0 600Travel - Committee 0 125 (125) 352 1,500 (1,148) 1,500Travel - Staff 0 500 (500) 2,441 6,000 (3,559) 6,000

Total Communications Expense 46,391 40,523 5,868 464,925 518,800 (53,875) 518,800

EDUCATIONSalaries/Benefits/Taxes 21,782 15,913 5,869 213,258 191,000 22,258 191,000

Total Education Expense 21,782 15,913 5,869 213,258 191,000 22,258 191,000

GOVERNMENT AFFAIRS 30

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Bank Charges/CC Fees 123 337 (214) 797 4,000 (3,203) 4,000West Coast Office Exps 605 750 (145) 7,914 9,000 (1,086) 9,000Dues & Subscriptions 125 375 (250) 5,289 4,500 789 4,500Legislative Activities 0 0 0 11,000 0 11,000 0Legislative Computer Tools 0 4,337 (4,337) 62,500 52,000 10,500 52,000Meetings 0 750 (750) 11,289 9,000 2,289 9,000Postage 0 13 (13) 35 150 (115) 150Printing/Typesetting/Copying 17 0 17 17 0 17 0Salaries/Benefits/Taxes 65,607 64,913 694 726,740 779,000 (52,260) 779,000Spec Proj: Affiliate Support 11,000 2,087 8,913 23,500 25,000 (1,500) 25,000Government Affairs Academy 0 125 (125) 0 1,500 (1,500) 1,500HPBAC Industry Profile Build 0 200 (200) 0 2,400 (2,400) 2,400Teleconferences 0 25 (25) 126 300 (174) 300Mobile Phones 225 237 (12) 2,597 2,800 (203) 2,800Travel - Committee (150) 1,250 (1,400) 1,713 15,000 (13,287) 15,000Travel - Staff 259 3,337 (3,078) 31,703 40,000 (8,297) 40,000Assessment: SFHAS Passthru Exp (86,147) 0 (86,147) 0 0 0 0Assessment: GHAS Passthru Exp (8,782) 0 (8,782) 0 0 0 0

Total Government Affairs Expense (17,118) 78,736 (95,854) 885,220 944,650 (59,430) 944,650

MEMBERSHIPBank Charges/CC Fees 3,691 587 3,104 13,315 7,000 6,315 7,000Computer Services 0 0 0 93 0 93 0Consulting: Directory 0 750 (750) 0 9,000 (9,000) 9,000Consulting: Brochure 0 163 (163) 0 2,000 (2,000) 2,000CV Database Maint/Developmt 792 267 525 22,105 23,000 (895) 23,000Meetings 0 163 (163) 36 2,000 (1,964) 2,000Membership Campaign 227 0 227 227 0 227 0Membership Marketing/Promo 735 0 735 735 0 735 0Miscellaneous 0 0 0 168 0 168 0Postage 60 1,587 (1,527) 12,312 19,000 (6,688) 19,000Printing/Typesetting/Copying 0 3,600 (3,600) 36,119 43,200 (7,081) 43,200Salaries/Benefits/Taxes 14,036 10,663 3,373 129,900 128,000 1,900 128,000Teleconferences 0 0 0 10 100 (90) 100Mobile Phones 50 25 25 600 300 300 300Travel - Committee 0 125 (125) 0 1,500 (1,500) 1,500Travel - Staff 0 250 (250) 1,888 3,000 (1,112) 3,000

Total Membership Expense 19,591 18,180 1,411 217,508 238,100 (20,592) 238,100

RESEARCHComputer Software/Services 384 37 347 477 400 77 400 31

Page: 5



PeriodActual

PeriodBudget

Over(Under)Budget

YTDActual

YTDBudget

Over(Under)Budget

AnnualBudget

Dues & Subscriptions 0 63 (63) 0 800 (800) 800Meetings 0 38 (38) 61 500 (439) 500Salaries/Benefits/Taxes 12,698 10,837 1,861 123,573 130,000 (6,427) 130,000Statistics - Hearth Shipments 0 0 0 4,300 5,000 (700) 5,000Consumer Research 0 0 0 29,950 40,000 (10,050) 40,000Travel - Committee 0 0 0 123 0 123 0Travel - Staff 0 0 0 590 1,000 (410) 1,000

Total Research Expense 13,082 10,975 2,107 159,074 177,700 (18,626) 177,700

AFFILIATE SUPPORTMeetings 0 337 (337) 9,047 4,000 5,047 4,000Postage 0 125 (125) 112 1,500 (1,388) 1,500Printing/Typesetting/Copying 0 125 (125) 647 1,500 (853) 1,500Salaries/Benefits/Taxes 11,270 10,663 607 111,927 128,000 (16,073) 128,000Teleconferences 0 38 (38) 59 500 (441) 500Mobile Phones 0 25 (25) 0 300 (300) 300Travel - Staff 0 1,112 (1,112) 10,883 13,300 (2,417) 13,300Manuf Dues Share: Others 0 0 0 84,639 87,255 (2,616) 87,255Manuf Dues Share: Canada 0 0 0 92,704 88,938 3,766 88,938Affiliate Support: Canada 0 0 0 50,000 50,000 0 50,000

Total Affiliate Support 11,270 12,425 (1,155) 360,018 375,293 (15,275) 375,293

EXPOAdministrative Expense: 2019 23,137 17,134 6,003 226,537 205,553 20,984 205,553Attendee Promotion 38,177 26,778 11,399 316,178 588,000 (271,822) 588,000Audio-Visual: 2019 0 0 0 36,175 30,000 6,175 30,000Awards/Plaques: 2019 0 0 0 2,135 2,500 (365) 2,500Bank Chgs/CC Fees: 2019 1,277 7,500 (6,223) 57,130 90,000 (32,870) 90,000Bank Chgs/CC Fees: 2020 120 1,111 (991) 2,011 10,000 (7,989) 10,000Busing: 2019 0 0 0 88,331 88,331 0 88,331Computer Services: 2019 480 0 480 480 5,000 (4,520) 5,000Decorator: 2019 0 0 0 183,194 185,000 (1,806) 185,000Dues & Subscriptions: 2019 318 0 318 7,039 0 7,039 0Equipment Rental/Maint.: 2019 0 0 0 16,000 16,000 0 16,000EXPO Committee Mtgs: 2019 (1,551) 663 (2,214) 4,386 8,000 (3,614) 8,000First Aid: 2019 0 0 0 16,350 16,350 0 16,350General Food Service: 2019 0 0 0 15,399 25,000 (9,601) 25,000Gratuities: 2019 0 0 0 1,697 2,500 (803) 2,500Security Guards: 2019 0 0 0 110,229 110,000 229 110,000Events: 2019 0 0 0 22,416 25,000 (2,584) 25,000 32

Page: 6



PeriodActual

PeriodBudget

Over(Under)Budget

YTDActual

YTDBudget

Over(Under)Budget

AnnualBudget

Insurance: 2019 0 0 0 5,725 12,000 (6,275) 12,000Insurance: 2020 0 1,333 (1,333) 7,315 12,000 (4,685) 12,000Legal: 2019 3,653 0 3,653 13,164 10,000 3,164 10,000Legal: 2020 0 0 0 749 0 749 0Meetings: Board/Comm.: 2019 0 1,667 (1,667) 20,067 20,000 67 20,000Operation BBQ Relief: 2019 0 0 0 800 0 800 0Outdoor Burn Area: 2019 0 0 0 24,190 83,000 (58,810) 83,000Outdoor Burn Area: 2020 1,250 1,250 0 11,250 11,250 0 11,250Photography: 2019 0 0 0 2,480 2,500 (20) 2,500Postage: 2019 1 0 1 4,807 10,000 (5,193) 10,000Printing/Copying: 2019 0 0 0 5,022 0 5,022 0Program Guide: 2019 0 0 0 36,836 36,000 836 36,000Registration Service: 2019 0 0 0 47,250 55,000 (7,750) 55,000Registration Service: 2020 0 3,175 (3,175) 0 12,700 (12,700) 12,700Rental Hall: 2019 0 0 0 14,994 45,000 (30,006) 45,000Salaries/Benefits/Taxes 56,305 48,587 7,718 565,456 583,000 (17,544) 583,000Commissions 28,821 25,000 3,821 104,009 112,000 (7,991) 112,000Promotional Opportunity: 2019 0 0 0 23,976 25,000 (1,024) 25,000Promotional Opportunity: 2020 0 4,667 (4,667) 14,000 14,000 0 14,000Supplies: 2019 0 0 0 6,097 35,000 (28,903) 35,000Mobile Phones: 2019 75 0 75 741 2,000 (1,259) 2,000Telephone: 2019 205 1,667 (1,462) 17,892 20,000 (2,108) 20,000Temporary Help: 2019 0 0 0 20,471 20,000 471 20,000Committee Travel: 2019 0 0 0 7,200 14,400 (7,200) 14,400Travel - Staff 336 0 336 28,013 25,000 3,013 25,000VestaAwards Contribution: 2019 0 0 0 15,000 15,000 0 15,000Affiliate Registr Rebate: 2019 0 0 0 33,825 33,562 263 33,562Affiliate Revenue Share: 2019 0 0 0 312,664 290,693 21,971 290,693Booth Fee Discount: 2019 0 0 0 6,480 8,800 (2,320) 8,800

Total EXPO Expenses 152,604 140,532 12,072 2,456,160 2,915,139 (458,979) 2,915,139

TOTAL EXPENSES 317,625 365,100 (47,475) 5,435,326 5,986,149 (550,823) 5,986,149

INVESTMENT ACTIVITYRealized Gain/(Loss) 0 0 0 (3,488) 0 (3,488) 0Unrealized Gain/(Loss) (2,002) 0 (2,002) 73,640 0 73,640 0

Total Unrealized Loss (2,002) 0 (2,002) 70,152 0 70,152 0

CHANGE IN NET ASSETS $ (250,135) (352,724) 102,589 451,695 (364,042) 815,737 $ (364,042) 33

Report Docket VII. A.

Meetings & Expositions

COMMITTEE REPORT

Committee: Expo Committee Date: February 18, 2020

Chair: Cherie Feely Staff: Kelly VanDermark

Anita Derouin

Amy Jackson

Tanya Karkiewicz

Rachel Pratt

Committee Members: Cherie Feely, Weber-Stephen Products Co.

Brent Buchan, Energy Products & Design, Inc.

Joe Burns, Bernard Dalsin Manufacturing Co.

Phillip Chamberlain, Forshaw of St. Louis, Inc.

Loretta Dolan, Loretta Dolan & Associates, LLC

Jim Hussong, Kozy Heat

Eugene LaFlamme, McCoy, Leavitt, Laskey, LLC

(HPBEF representative)

Stephen Magnotti, The Fireplace and Patioplace

Kip Rumens, Travis Industries, Inc.

Amie Ryan, Ryan Brothers Chimney Sweeping, Inc.

Bruno Tassone, Napoleon Products

Mike Waller, Robert H. Peterson Company

1. Expo Committee Activity. HPBA Expo Committee members convened via teleconference

on January 7, 2020. Members heard updates on the 2020 HPBExpo exhibit sales, attendee

registrations, housing reservations, and show highlights and events.

The next Expo Committee meeting will take place in New Orleans on Saturday, March 14th. At

that meeting, members will review and critique the 2020 show, as well as discuss initial plans

for 2021. This will be the last meeting for Joe Burns, Brent Buchan, Dick Hoffman, Jim

Hussong, Eugene LaFlamme, and Mike Waller, as their committee terms are up. The open seats

will be filled by Henry Hall (HPBA Vice Chair) – Skytech, Michael Lewis – IHP, Bob Maitwald

– Mendota, Joslyn Teng – Dexen Industries, Inc., and Rebecca Ward Carnes – Fireplace

Editions. Cherie Feely will also be stepping down as Chair but will remain on the committee;

Amie Ryan will be assuming the role of Chair.

2. HPBExpo 2020 Report Numbers. (Updated information will be reported at the Board of

Directors Meeting in New Orleans.

34



Exhibit Sales as of February 18, 2020 (three weeks out)

2020 2019 (3 wks) 2019 Final

Number of Companies: 285 367 383

Number of Booths to Sell

Indoors: 1193 1301 1301

Number Sold to Date: 1002 1153 1176

Number of Booths to Sell

Outdoors: 112 81 81

Number Sold to Date: 72 59 62

Total Booths Sold 1076 1212 1238

Total Collected to Date: $3,399,800 $3,619,720 $3,710,420

In addition to the 285 companies whose contracts and payments have been received, four

companies have sent in contracts, and we are awaiting their payment for an additional

four indoor spaces and one outdoor space. There are 50 first-time exhibitors, compared to

88 at this time last year. Including the holds, sales for 2020 are down by 12% (budget

reflects booth sales to be down 10% from 2019). There has been a recent dip in numbers

due to the cancellations received from Asian manufacturers who are restricted to travel

with the Coronavirus outbreak.

Registration Report as of February 18, 2020 (three weeks out)

2020 (3 wks. out) 2019 (3 wks. out) 2019 Final

Attendee: 1,786 individuals 1,866 individuals 3,636 individuals

720 companies 779 companies 1,558 companies

Exhibitor: 1,408 individuals 1,545 individuals 2,884 individuals

191 companies 244 companies 383 companies

TOTAL: 3,194 registrants 3,411 registrants 6,520 registrants

911 companies 1,023 companies 1,941 companies

Buying

Entities: 611 683 1,276

Education 328/52 323/28 490/76

Passports/

One Session Pass

Certification 36 88 109

Exam Prep:

35



Compared to Dallas 2019:

• 6% down in total registrants

• 4% down in attendee registrants

• 11% down in total companies

• 8% down in attendee companies

• 11% down in buying entities

• 8% up in Education Passports

3. HPBExpo 2020 Update.

This year’s efforts to promote Expo included digital and targeted online advertising, as well as

regular e-blasts, to Hearth & Home, Casual Living, Pool & Spa News, and Patio & Hearth

Products magazine subscribers. Retargeted Expo ads were sent to any visitors to the

hpbexpo.com website during their online searches. Marketing promotional efforts to our core

member and attendee lists included the registration guide, mailed before the holidays and

polybagged with the January issue of Hearth & Home magazine. This was followed by a

telemarketing campaign, with calls placed to members and past Expo attendees. Any unanswered

calls were left a voice mail from HPBA Board member Tim Reed encouraging them to register.

Emails were also sent highlighting the keynote address, new exhibitors, new products, the show

mobile app, education offerings, and the Tailgate & Big Green Egg Cook-off Event. Geofencing

efforts included targeting registrants with Expo ads during the Casual Market show; Hardware

Show; Pool, Spa & Patio Show; and the International Builder Show. The New Orleans CVB

assisted with promoting the show by reaching out to regional dealers, hardware stores, builders,

architects, remodelers, and general contractors with targeted emails.

Highlights for Expo 2020

a) Operation Barbecue Relief Veterans Lunch. As a way to give back to the

community and to kick off the start of HPBExpo, OBR and HPBA will be serving

a barbecue lunch to veterans on Wednesday, March 11th, from 11:00am-1:00pm at

the New Orleans VA Medica Center.

b) Keynote Address. In an effort to educate retailers on ways to increase sales, this

year’s Keynote Address, “Hot Profit: Optimizing Retail Space to Spark Growth in

Your Sales,” will be delivered by Wayne Visbeen of Visbeen Architects.

Generously sponsored by Napoleon Products, Wayne will also share his tips on

what dealers need to do to win fireplace specs with a Q&A after his presentation.

c) HPBA Annual Membership Meeting and HPBExpo Opening Ceremony. The

Annual HPBA Membership Meeting, which includes the annual passing of the

gavel to the new HPBA chairperson, will immediately follow the keynote address

at the main entrance to Exhibit Hall G at 9:45am.

d) HPBEF Education and NFI Exams. This year, education sessions and review

classes will be held from Wednesday, March 11th, through Friday, March 13th.

Sessions will cover the full spectrum of indoor-outdoor living, skills and trends,

along with important changes in legislation and regulations. This year there are

four special sessions that will be exclusively held at Expo.

36



e) Manufacturer-Specific Training Sessions. Along with the full education schedule,

manufacturer training sessions will be held in two-hour increments during Expo.

Manufacturers will use these sessions to review sales, marketing, and technical

information. An education passport is not required to attend the training sessions,

although some sessions are only open to members of a manufacturer’s dealer

network (noted in the Show Guide).

f) HPBExpo Tailgate & Big Green Egg Cook-off Event. The Ninth Annual

HPBExpo Tailgate & Big Green Egg Cook-off Event will be held in the outdoor

burn area from 5:00pm to 7:30pm on Thursday, March 12th. Attendees can enjoy

savory offerings from outdoor exhibitors and beverages served at bars placed

throughout the outdoor footprint. This year’s cook-off event includes a lineup of

barbecue experts from Dr. BBQ/Ray Lampe as the cook-off emcee and judges

including Carolyn Wells – Co-founder of the Kansas City Barbeque Society; Curt

Sprang – Reporter, news anchor, and co-host of News with a Twist Program for

WGNO-TV in New Orleans, and Emily Smith – a Convention Services Manager

at New Orleans & Company. She is also a food and drink contributor for

GoNOLA.com. Six retailer teams will be competing from the HPBA Arizona,

Southeast, and Canadian Affiliates, along with Stan Hayes from Operation BBQ

Relief and chefs from Central City BBQ in NOLA. It would not be a tailgate

event in New Orleans without a Mardi Gras Parade and the Drago’s Food truck

serving their famous Charbroiled Oysters during the event.

g) Donna H. Myers Barbecue Leadership Award. Casual Living magazine and

HPBA will present the Donna H. Myers Barbecue Leadership Award to John

Henry, founder and proprietor of John Henry’s Food Products, a Houston-based

company that sells award-winning rubs, sauces, and other BBQ accessories. John

is known nationally and internationally for his culinary expertise. The award

ceremony will take place during the Big Green Egg Cook-off Event at 5:30pm.

h) Operation Barbecue Relief Tour. This year, OBR is bringing its mobile command

center to the Outdoor Burn Area. The trailer hauls vital technology and equipment

to disaster areas and acts as a welcome center for volunteers. Attendees will have

the opportunity to take a tour, ask questions, and talk about opportunities for new

sponsorships with OBR staff.

• Indoor Burning Booths. In total, 25 companies will be burning natural gas

products indoors, which is consistent with the same number last year.

i) Outdoor Burn Area. A total of 22 companies will be represented in the outdoor

burn area, compared to 29 exhibitors last year. The outdoor burn area is located

right outside the convention center in Parking Lot F.

j) Vesta Awards Ceremony & Wine Reception. The 20th Annual Vesta Awards,

sponsored by Hearth & Home magazine, will take place on Friday, March 13th, in

the LaNouvelle Ballroom at the convention center. The Vesta Awards program

honors innovation in product design and technology. The awards program will

begin with a wine reception starting at 4:45pm.

k) Barbecue Demo Strategies. Louisiana Grills will be presenting barbecue demo

strategies and techniques on their new wood pellet grill collection on Friday,

March 13th at 1:00pm-3:00pm at the Outdoor Burn Cook-off Tent. Attendees will

37



be able to learn trade secrets, get demo tips, enjoy samples from award winning

barbecue champions, and enter to win a free grill, prizes and more.

l) HPBExpo Show Mobile App. The ultimate show guide for HPBExpo 2020 is the

HPBExpo Mobile App. Attendees can easily navigate their way to access all

HPBExpo information on their web-enabled phones. The app features the full

exhibitor listing, education sessions, meeting and events listing, interactive floor

plans, and show news and alerts.

m) New Product Pavilion Indoors. The New Product Pavilion, located in Booth 101,

is a one-stop look at what’s new at Expo. Entries in the Vesta Awards competition

that are on display in the pavilion will also be identified.

o New Product Spotlight Sessions – Hear directly from exhibitors, live in

the New Product Pavilion, as they present their new featured product.

Scheduled sessions will be listed in the Show Guide.

n) Attendees’ Choice Awards. For the ninth year, HPBExpo will present the

Attendees’ Choice Awards, honoring product marketability in two categories:

hearth and outdoor living. Products eligible for these awards are showcased in the

New Product Pavilion, Booth 101. Attendees can cast their vote by using the

HPBExpo show mobile app. The winners will be announced on Saturday,

March 14th, on the show floor and through the mobile app.

o) HPBA/HPB Education Foundation/NFI – Member Benefits & Services Center.

The Member Benefits & Services Center is located in the indoor exhibit hall,

Booth 601. Attendees can meet with their regional Affiliate leaders and staff.

Information will also be available on education, training materials, and how to

become certified by the National Fireplace Institute.

p) Fire Time Podcast.Tim Reed will conduct a live podcast in the HPBA Member

Services Booth featuring a discussion on Family Business Dynamics with Stephen

Schroeter – co-CEO, Napoleon and Grant Falco – Owner, Falco’s on Friday,

March 13th at 11:00am-12:00 Noon.

q) HPBA Expo Drawings. Three drawings will be offered this year to entice

attendees to visit key attractions on the show floor and to increase attendance

throughout the three days of Expo. Details on the drawings are available in the

Show Guide. Prizes will include gift certificates to attractions in New Orleans,

hotel stays for next year’s Expo in Nashville, and a Nashville gift basket.

4. HPBExpo 2021 Update. HPBExpo 2021 will be held in Nashville on March 3-6 at the

Music City Center, with the outdoor burn area located right outside on 5th Street.

The 2021 priority assignment of exhibit space to the first 25 priority companies is in

progress and will be completed by the end of February. The remaining exhibitors on the

exhibitor priority list will be able to select their space onsite in New Orleans. Upon

completion of the top 25 booth selection, we will send priority companies an email that

will include floor plans, contracts, show rules and regulations, and their specific

assignment times at Expo. Following the show, we will send a marketing piece to all

prospect companies that failed to book space while onsite.

38



Nashville representatives will be on hand at Expo to highlight attractions in the city and

to provide a listing of the 2021 HPBExpo official hotels. The booth is located in the

Lobby near Hall G, Level 1.

Attendees and exhibitors can book their 2021 housing at Expo either in registration or at

the Priority Exhibit Space Draw located at Booth 2457. Hotel reservations will be made

available on a first come, first-served basis.

The first 2021 HPBExpo advertisement will be placed in the March issues of Hearth &

Home magazine, as well as in the Show Guide.

5. HPBExpo Future Sites and Dates.

The future show schedule is as follows:

March 2-5, 2022 – Atlanta

March 10-13, 2023 – Louisville

February 12-15, 2024 – Nashville

March 26-29, 2025 – New Orleans


March 3-6, 2027 – Nashville


February 28 - March 3, 2029 – Nashville





39

Issues Docket VIII. A. 1

Proposed New Committee

MEMORANDUM


FROM: Jack Goldman

DATE: March 10, 2020

RE: Proposed New Committee

In recent years, the need for good research to shape effective communications and marketing has

only grown. HPBA is fortunate to have solid capabilities in these areas. We propose that HPBA

combines its existing Research and Communication Committees into one and rename it the

Marketing Research and Communications Committee, with an all-new charter. It has been three

decades since the committee structure has been developed at HPBA and we need to change that

structure to better align our organization with current needs.

A new committee would parallel the growing trend of communications, marketing, and research

skills overlapping within the same position or department at many companies. They are no

longer separate, disparate roles in many cases. In fact, there are several cases of the same

individuals serving on both committees, sometimes simultaneously. Consolidating these efforts

under one committee would provide multiple advantages including:

• A new charter that outlines concrete responsibilities for this committee and allows it to be

a value-added resource for the staff to use as needed.

• Some of HPBA’s most cited and used products cross the boundary between research and

communications needs. The new committee will allow for better use of the expertise of

the committee members.

• The new committee will consist of subject matter experts to provide guidance, feedback,

and suggestions. By clearly outlining the purpose of its existence with a new charter and

new design, we can focus its attention where we need it most – designing research to

address the specific needs for speaking on behalf of members and the industry.

• To accommodate this new perspective, the new committee should expand to include

retailers and distributors, as well as the manufacturers.

Work is already occurring where this approach is already proving to be beneficial. This concept

aligns very closely with what is in the process of potentially becoming a major project at HPBA

– the Incidence Rate Initiative. The Steering Committee for this project set up a Working Group

made up of marketing and research staff from their companies.

40

Issues Docket VIII. A. 1. Market Research & Communications

HPBA COMMITTEE CHARTER

COMMITTEE NAME: Market Research & Communications KEY OBJECTIVES: Generate wider consumer awareness of hearth, patio and barbecue products, the lifestyle

benefits they provide, and the value they accrue to the home Provide useful and timely information to support the mission of HPBA, to include but not be

limited to, industry statistics, consumer and economic data, and industry promotional materials

KEY TACTICS: Provide consultation to HPBA Staff on research reports and deliverables Provide focus group testing to HPBA Staff for campaign and Expo materials and

deliverables Act as a resource to HPBA Staff for development of marketing plans Act as a resource to HPBA Staff for development of additional deliverables as needed:

o Marketing o Communications o Research programs

The Committee will meet at least twice a year as a whole, in person or by teleconference, with the Spring meeting focusing on consumer issues, including questionnaires and promotions, and the Fall meeting focusing on Expo marketing concepts. Other meetings may be scheduled by the Chairperson as needed.

SELECTION OF CHAIRPERSON: The Chairperson shall be selected by the Chairman of HPBA. It is advisable, but not required, that the position of Chairperson alternate between a member of the Hearth Appliance Sections and a member of the Barbecue Section. TERM AND RESPONSIBILITIES OF CHAIRPERSON: The Chairperson may serve up to two consecutive two-year terms. The Chairperson is responsible for working with the HPBA Board of Directors and staff to plan, develop and execute strategies and projects to serve the hearth, patio, and barbecue industries. NUMBER AND MAKEUP OF COMMITTEE MEMBERS: Up to twenty (20) members including the Chairperson. The Committee shall be comprised of a balanced representation of the Hearth Appliance and Barbecue Sections and will include at least three (3) representatives from the retailer membership. No company shall have more than one representative serving on the committee at any one time. The Chairperson of the Committee shall appoint members of the Committee with the approval of the president and the HPBA staff liaisons. The Chairperson shall fill any vacancies on the Committee by appointing new members.

41

Issues Docket VIII. A. 1. Market Research & Communications

TASK FORCES: The Chairperson may create one or more task forces for the purpose of focusing on specific industry communications or research objectives; the Chairperson shall appoint a task force Chairperson from within the membership of the Committee. Upon task or project completion, the task force will be dissolved. QUALIFICATIONS OF COMMITTEE MEMBERS: Members should have experience in marketing and/or research. Accepted by the Board of Directors on Secretary

42

Issues Docket VIII. A. 2.

Test Lab & Consultant Dues Rates

MEMORANDUM


FROM: Manufacturer Membership Subcommittee

Diane Dellen and Jack Goldman


RE: New Dues Rates for HPBA Test Labs and Consultants

Recommendation: The Manufacturer Membership Subcommittee recommends that HPBA

Board members vote to approve dues levels for the new HPBA member subcategories of test

labs and consultant, effective March 10, 2020.

Background: The Manufacturer Membership Subcommittee approved a two-tier dues rate

system for test labs and those consultants joining HPBA at its January 2020 meeting. To work

out what the new rates should be, Government Affairs staff consulted with the test labs and

determined that 60% of the labs were large while 40% were relatively small. With fairness in

mind, staff recommended a two-tier dues system with the dividing line at $500,000 in annual

revenue. Staff also recommended that the dues rates remain in the same range that the test labs

are currently paying to the Affiliates (shown in the chart below).

43

Issues Docket VIII. A. 2.

Test Lab & Consultant Dues Rates

They reasoned that keeping dues in the same range would prevent sticker shock among test labs

and consultants and would also allow HPBA to compensate the Affiliates for their lost revenue

without experiencing a shortfall. After a brief discussion, committee members approved the rate

of $350 per year for smaller members, while larger members would pay $750 per year (as per the

following chart).

44

Issues Docket VIII. B. 1.

Decarbonization

MEMORANDUM


FROM: Ryan Carroll and Emily McGee


RE: Electrification and Bans on Natural Gas Lines in New Homes

HPBA has followed regulators’ interest in pursuing Zero Net Energy (ZNE) for years. Not long

ago, the most prevalent goal for regulators was truly ZNE: requiring a structure to produce as

much energy as it consumed on an annual basis. Increasingly, that concept has given way to Zero

Net Carbon or Zero Net Emissions, where carbon emissions are offset or reduced to the point of

no net emissions. Since the October Board meeting, dozens of jurisdictions are exploring severe

restrictions or even outright bans on natural gas service in new construction, requiring most

buildings to go all-electric. To address the growing electrification movement, HPBA’s

Government Affairs and Communications Departments are now collaborating on the issue,

working to highlight the very real carbon reduction benefits of natural gas and our products.

As reported in October, California cities – including Berkeley, Santa Rosa, San Luis Obispo, and

dozens more – were seeking to have local “reach” codes in place before the new California

Energy Code went into effect in January. Of the measures enacted, many are receiving

significant pushback or are being challenged in court. The California Restaurant Association has

sued the City of Berkeley, and local developers have sued the City of Santa Rosa, over their local

gas ban ordinances. In San Luis Obispo, conflict of interest concerns over the business holdings

of a city councilman prevented a proposed gas ban from receiving a second hearing and it is still

pending, although it is expected to be brought up again in April. Since then, there has been

significant local activity in Massachusetts, which allows for adoption of similar “stretch” codes

in individual jurisdictions. Brookline, Cambridge, and other Massachusetts towns have either

passed or are considering local codes banning natural gas installations in new construction or

major remodeling efforts.

For several years, the Massachusetts legislature considered bills establishing state-wide ZNE

targets in the state energy code. More recently, we are seeing activity before the state’s Board of

Building Regulation and Standards (BBRS) – particularly the Energy Subcommittee. NEHPBA

rallied our local members to testify at subcommittee hearings, successfully blocking

decarbonization and electrification efforts before the BBRS. Proponents of electrification have

turned their efforts in support of a Massachusetts Climate Action Plan in the state legislature.

The bill, which includes a state stretch code banning natural gas connections in new construction,

45


Decarbonization

has passed the state’s Senate and is awaiting consideration in the House. We anticipate that

Massachusetts will continue to be a major battleground state for electrification for the

foreseeable future; HPBA is assisting NEHPBA as that group searches for a local lobbyist and

explores regional coalition opportunities.

Late in 2019, the Seattle City Council came very close to enacting a natural gas ban in new

construction within the city. NWHPBA members and their contract lobbyist were instrumental in

defeating the initiative. However, Seattle remains a candidate for renewed efforts to ban natural

gas; NWHPBA and HPBA are continuing to monitor this closely. The local chamber of

commerce and major gas utility have formed a coalition to counter the Seattle City Council and

similar efforts in Bellingham and Everett. HPBA will be joining that effort soon.

A significant positive development since the previous report is a dramatic increase in activity by

the gas utilities, both public and private. The American Gas Association (AGA) now convenes

bi-weekly calls that bring together appliance, homebuilder, fuel, and other associations to

compare notes and support efforts to push back on the decarbonization and electrification

issues. While we do not have the financial resources of these other groups, we can and have

contributed the “boots on the ground” with our retailers and Affiliates providing the small

business voices at various local public hearings.

Recently, this collaboration brought efforts in Ohio to our attention, and HPBA established

initial contact between Mid-States HPBA and staffers for Dominion Energy, one of the key Ohio

utilities. HPBA Affiliates and members have played a similarly important role in being the face

of small business in virtually every challenge mentioned above.

To show how polarizing the issue can be, there are now several states considering legislation to

preempt local efforts to limit energy choices – in other words, a prohibition on natural gas

bans. HPBA and Arizona HPBA worked with Keith Richardson of Arizona Fireplaces as he

prepared to testify in support of a Southwest Gas-sponsored bill in Arizona that has since passed

both houses and is expected to be signed into law soon. Kansas and Tennessee have seen the

introduction of similar bills.

With this myriad of state and local activities, several Affiliates have reached out to HPBA for

help. We started our response with a Frequently Asked Questions document and an infographic

to address this urgent need. The infographic is designed to be used in a retail shop to share the

benefits of a gas fireplace with customers, while addressing several of the anti-natural gas claims

being made by opponents. The FAQs go into greater depth and provide information to be used in

arguments against those claims.

In addition, we published two blog posts in the past few months on natural gas bans. The first

addressed the Berkeley ban and encouraged readers to be on the lookout for this sort of activity

in their own areas. The second one specifically countered the electrification argument. Moving

forward, we are working on more content that can be used by the Affiliates and retailers and will

provide it in a toolkit format. We are also finishing a white paper that will include research and

46


Decarbonization

documentation to back up our positions. Once that is published on the HPBA website, we will

start a social media campaign.

It has become clear in the last six months that electrification is an existential issue that will be

with the industry for a long time, often playing out in smaller communities and with very little

advance warning. To help address this growing threat, HPBA’s Gas Hearth Appliance Section

(GHAS) authorized funding to cover HPBA membership in local coalitions, the first of which

will be in the Northwest. HPBA staff is developing a proposal for a new staff member dedicated

to decarbonization, electrification, and related issues for review by the GHAS at HPBExpo.

HPBA staff will have updates and policy positions for the Board to consider in March.

47


Incidence Rate Initiative

MEMORANDUM

TO: Board of Directors

FROM: Emily McGee and Cameron Downs


RE: Incidence Rate Initiative

Over the past year, our internal data analysis has indicated that the incidence rates for fireplaces

in new homes has been declining. Over the summer, several manufacturers approached HPBA to

discuss a possible industry-wide effort to address this.

HPBA organized an initial C-suite level meeting in October. A total of 12 manufacturers met to

discuss the possibility of an industry-wide marketing effort to increase consumers’ interest in

hearth products. Several other companies said that they were interested in participating in future

meetings. The companies discussed the state of the research and the need to conduct a marketing

campaign.

At the meeting, the manufacturers agreed that HPBA should lead this effort. The participants

named representatives from their companies to participate in a working group. The working

group will develop a recommended marketing plan and present it to the manufacturers for

discussion of funding options and feasibility.

The working group met by phone in January and confirmed the takeaways from the initial

meeting. They agreed that the best course of action is to develop a marketing plan to target

consumers, under the belief that if consumers ask for fireplaces, the developers will include them

in the new homes being built. At the end of this initial meeting of the working group, we asked

for volunteers to serve on a steering committee. This group would meet more frequently and

develop concrete marketing proposals.

The steering committee held a call in early February and agreed that this effort would need to be

limited to several test markets that had strong growth in new homes, all fuel types well

represented and geographical diversity. The initial efforts will focus on upstate New York;

Dallas/Fort Worth and Austin, Texas; Omaha, Nebraska; and Charlotte, North Carolina. The

effort is underway, with the initial goal to confirm some of the assumption that we are making as

to why the incidence rate is declining through outreach to retailers and distributers.in the targeted

regions. Once this information has been gathered, the steering committee will meet again to

discuss the results and develop a proposal to share with potential advertising/marketing firms.

48


New Source Performance Standards

MEMORANDUM


FROM: Ryan Carroll, John Crouch, and Rachel Feinstein


RE: New Source Performance Standards Update

Legal Challenge and Proposed Rulemakings

HPBA’s interactions with Environmental Protection Agency (EPA) regarding the New Source

Performance Standards (NSPS) have evolved into a discussion of only two major issues: sell-

though and a new cordwood test method that would be a Federal Reference Method (FRM).

The NSPS prohibits the sale of any products that are not certified to the Step 2 standards after

May 15, 2020. HPBA has spent years explaining the industry’s selling patterns and the

justification for limited sell-through (i.e., allowing Step 1 products to be sold for some period of

time beyond the Step 2 effective date). EPA published a Notice of Proposed Rulemaking in

November of 2018 proposing two years of sell-through for central heaters (i.e., warm air

furnaces and hydronic heaters) and taking comment on whether sell-through should be granted to

woodstoves. In early 2020, a final rule was finally sent to the Office of Information and

Regulatory Affairs (OIRA) for White House review. HPBA has received contradictory

intelligence on whether sell-through is included in the package OIRA is reviewing, but we are

proceeding on the assumption that it is not included and are advocating accordingly. HPBA staff

and a small number of manufacturers met with OIRA on February 18th and 19th to continue to

urge some sell-through relief.

As previously reported to the Board, EPA alerted HPBA last July that they intend to develop and

adopt a cordwood test method for solid fuel heaters. A cordwood test method has long been

sought after by industry and regulators, as it should better reflect real world appliance emissions

and efficiency. The EPA process will result in a formal FRM for wood heater testing, adopting a

method of testing and certifying an appliance’s performance. The FRM would replace the current

practice of using the ASTM cordwood method as an interim option. Following a meeting with

technical representatives from industry and the states in January, EPA announced that they

favored the Integrated Duty Cycle (IDC) method over the ASTM cordwood method. The IDC

was developed by Northeast States for Coordinated Air Use Management (NESCAUM), with

funding from the New York State Energy Research and Development Authority (NYSERDA).

EPA gave assurances that the process will be transparent but, to date, neither industry nor EPA

has seen enough data to make an informed analysis of the method. EPA staff said that any FRM

process will take three to five years to complete, and acknowledged that a different test may well

49


New Source Performance Standards

necessitate a different metric (e.g., g/kg) for emissions limits. A shift away from the traditional

grams per hour metric would be more in line with the requirements for other combustion

emissions limits, virtually none of which incorporate a time (i.e., the “per hour”) metric. We

anticipate the second in-person FRM meeting will be held before our June Board meeting and

will be reported on then.

NSPS Congressional Outreach Efforts

HPBA continues to work with a few Congressional offices on outreach to EPA and the White

House Office of Information and Regulatory Affairs to urge the administration to provide sell-

through. Congressman Peterson has been especially aggressive with the White House on our

behalf.

Stoves to Homes Initiative

With the May 15, 2020 Step 2 deadline just months away, HPBA is aware of some dealers and

distributors who have more Step 1 stoves than they may be able to sell. The deadline prohibits

commercial owners from selling or offering for sale any products not certified to Step 2. In hopes

of providing options to prevent stranded inventory, HPBA has partnered with the Appalachia

Service Project (ASP) to develop the Stoves to Homes Initiative. The program allows for Step 1

stoves to be donated to ASP prior to May 15th even if the physical transfer of the stove does not

occur until after that date.

While we hope companies are able to sell Step 1 appliances prior to May 15th, the Stoves to

Homes Initiative will ensure that new stoves go to help low-income homes and allow donating

companies to claim a tax deduction. For more details on the Stoves to Homes Initiative, please

see the flyer sent to Affiliates in February.

HPBA’s NSPS Toolkit Resources for Retailers and Distributers

HPBA continues to promote its NSPS Retailer Toolkit to inform retailers and distributors about

the requirements under Step 2 of the NSPS. HPBA’s toolkit includes an enforcement visit

checklist, rumors and facts, FAQs, and more. Many of our members’ questions are likely

answered by our FAQs page.

At HPBExpo this year, retailers and distributors will have two opportunities to get information

about the NSPS:

1. On Wednesday, March 11th at 11:00 am , Rachel Feinstein will teach a one-hour

education course entitled, “NSPS Review for Retailers: Do You Know the Law?”

(registration required). This session will provide not just an update on the NSPS, but

will include a more comprehensive review of requirements.

2. On Friday, March 13th at 3:00 pm, an NSPS update will be given as part of HPBA’s

Government Affairs Report. Registration for the Friday session is not required, as it is

not considered an education course.

50

https://www.hpba.org/Portals/26/Committees/Government%20Affairs/GA%20Public%20Docs/HPBA_ASP_Stoves_to_Home_Initiative_Summary.pdf

https://www.hpba.org/Advocacy/EPAs-NSPS/HPBA-Retailer-NSPS-Toolkit

https://hpbexpo.com/educational-info/wednesday-schedule/


Licensing of Hearth Professionals

MEMORANDUM


FROM: Rachel Feinstein and Rick Vlahos


RE: Occupational Licensing and the Hearth Industry

For over a decade, HPBA and the National Fireplace Institute (NFI) have worked to establish a

hearth specialty sublicense in jurisdictions across the United States, especially where

burdensome licensing requirements cover work performed by our members. In recent years, we

have seen an increase in licensing requirements and thus an increased need for our members to

take action. In 2016, HPBA developed “model language” based on two successful licenses in

Iowa and Connecticut. The model language can be used as a basis for future licensing language

to be incorporated within a state’s or local jurisdiction’s mechanical or plumbing code. The 10-

page packet of information about NFI and model language has served as a starting point for

several conversations with state and local regulators over the past four years. More details about

our licensing efforts and where there are licenses (that we know of) can be found on our

occupational licensing page.

New Jersey

The most recent successful licensing effort took over six years of work to be enacted and fully

implemented in New Jersey. The problem in NJ began in 2007 when Governor Corzine signed

into law the “HVACR Licensing Law.” At the time, the industry did not see anything of concern

in the bill as our scope of work was not impacted. However, regulatory agencies across the state

began interpreting the law to include hearth product work, particularly for gas appliances. Some

years later, language was enacted that allowed a “Chimney Service Professional” to be exempt

from the HVACR law; however, the authorizing bill did not define what a Chimney Service

Professional can do. After discussions between Mid-Atlantic HPBA (MAHPBA) and members

in 2014 and 2015, MAHPBA worked with HPBA to hire a state lobbyist. After years of work by

MAHPBA leaders – and notably by Ron Kessner and Kurt Evers – the NJ “Master Hearth

Specialist (MHS) Bill” was signed into law in August of 2019.

In mid-February 2020, the NJ MHS license was fully implemented. It is now available so that

qualified individuals can apply to become a MHS or MHS Bona Fide Representative. The

license requires the holder to be a NFI-certified Master Hearth Professional (MHP) with

certification in all three programs (wood, gas, and pellet) to ensure any work done in the state on

hearth products is done so correctly and safely. NFI has held several in-person courses in NJ to

get members and non-members alike ready for full implementation of the MHS law.

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http://www.hpba.org/Advocacy/Occupational-Licensing-HPBA



Missouri

Members of Midwest HPBA (MWHPBA) have been fighting a poorly drafted bill in Missouri

that would impose new mechanical license requirements on installers and services of virtually all

gas and solid fuel hearth products, as well as barbecue grills. The legislation was introduced

in 2018 and seems like an innocuous attempt to streamline licensing requirements. From the very

start, Erica Geil, the Executive Director of MWHPBA, and her members have worked to ensure

that no unintended harm is done by this piece of legislation. On Monday, January 27, 2020, 35

MWHPBA members attended a Missouri Senate hearing on the legislation and spoke in

opposition. These efforts have finally received the attention of state Senate leaders with

jurisdiction over the bill. MWHPBA convinced the sponsor of the bill and other key stakeholders

to exempt our industry from a larger, inappropriate HVAC umbrella. The bill with the favorable

language passed the Senate at the end of February 2020 and awaits a vote by the full House of

Representatives. This would not have been possible without the leadership of MWHPBA and

key MWHPBA members in Missouri.

Oklahoma

In a more proactive effort, South Central HPBA (SCHPBA) members in Oklahoma have been

working to add a hearth specialty license to the Mechanical Industry Regulation for Oklahoma.

HPBA member Rick Jackson and his son, Matt, have spearheaded the effort, with Kaity Van

Amersfort (SCHPBA Executive Director) providing advocacy support and liaising with HPBA

on advocacy letters. As in New Jersey, the proposed language would require anyone working on

or installing hearth products to be a certified MHP, certified in all three NFI fuel categories

(wood, pellet, and gas). However, unlike the NJ effort, the new hearth specialty license could be

passed into law in under a year.

Oklahoma has a different legislative and regulatory structure that makes the process advance

much more quickly if there is broad support for a proposal. Our hearth specialty license has the

support of the state Fire Marshal, Construction Industries Board, and other trades. Due to this

support, the proposal sailed through the regulatory process, received no comments in opposition,

and will soon be put before the legislature for a vote. Since the proposal is amending a law that is

already in place, there is no need for a bill to be introduced and requires only a vote by the full

legislature.

With only 37 people in the state holding an NFI certification (and only one certified MHP), a lot

of work will be needed to inform and educate the state’s industry of the new requirements.

52



Occupational Licensing Coalition

The Hearth, Patio & Barbecue Education Foundation has joined the American Society of

Association Executives’ (ASAE’s) Professional Certification Coalition (PCC). This will allow

HPBEF access to comprehensive information on licensing activity at the state and local level.

PCC identifies and supports industry in defending against legislative efforts that would devalue

certifications developed or offered by private (i.e., non-governmental) certification

organizations.

53

https://www.profcertcoalition.org/

Report Docket IX. B.

Membership

COMMITTEE REPORT

Subcommittee: Affiliate Membership Subcommittee: Manufacturer Membership

Chairman: Kaity Van Amersfort, SCHPBA Chairman: Ghayas Salem, National

Chimney

Date: February 18, 2020 Staff: Diane Dellen, Ian Rose-Glowacki

Affiliate Subcommittee Members: Manufacturer Subcommittee Members:

Joe Burns, JMB Consulting Company

Dick Hoffman, RGH Enterprises, Inc.

Woody Marcus, Ray Murray, Inc.

Pete Schoenfeld, Fireplace Warehouse

/Home & Hearth Outfitters

Wayne Stritsman, Best Fire Inc.

John Altiere, ENERVEX, Inc.

Pat Bradley, Montigo

Gary Butler, Saber Grills, LLC

Kyle Grant, Regency Fireplaces

David Kuhfahl, HearthStone

Ron McArthur, Napoleon

Mark Nureddine, Bull Outdoor

Jerry Scott, Robert H. Peterson

2020: Seven New and Three Re-Joining* Members

Evosus Software*

Hamrforge Inc.

Heat Stop, LLC

Julien, Inc.

MF Fire

MYFIRESIDE

Samson Outdoor

Tennessee Stone & Design

Tulikivi U.S., Inc.*

Z Grills*

2019 Manufacturer Members – Intend to Renew for 2020

Bonfire Production Corp.

Canterbury Enterprises

Goldens’ Foundry & Machine Company

Ningbo Wanan Co. Ltd., Ninghai

WPPO – Wood Pellet Pizza Oven

54


Membership

2019 Manufacturer Member - Not Yet Renewed for 2020

Aegean Mantels/Dekortas

Applied Control Electronics

Beefer USA Corporation

Cal Flame

DCS Appliances – Fisher & Paykel

FC Industries, LLC

Good-One Manufacturing

Ironhaus – Portland Willamette

Royal Gourmet Corp.

Tianjin Focus Ceramics Co., Ltd.

United States Stove Company

2019 Manufacturer Members – Confirmed Will Not Renew for 2020

A.J. Manufacturing, LLC

Alexander Manufacturing Co.

Applied Ceramics Inc.

Camp Chef

England’s Stove Works

EuroKera North America Inc.

FireRock Products LLC

Grand Canyon Gas Logs

Hestan Commercial Corporation

Rankam (China) Manufacturing Co. Ltd.

The 2019 members who provided reasons for not renewing in 2020 attributed their decisions to

a merger, cutting costs, high cost of membership and assessments, having to buy back

merchandise and NSPS assessment fees not in the interest of the company.

As of February 21, 2020, total manufacturer membership (including 2019 members who have

not indicated whether they intend to renew) is at 139, which is down by 1% compared with the

year-end total of 140 in December 2019.

We have collected 90% of the 2020 budgeted revenue for manufacturer membership. Promised

and collected revenue is at 91% of the 2020 budget.

55


Membership

Since the first week of November 2019, all non-renewing manufacturer members have received

an email, letter, or phone call every other week. Staff will continue to reach out to non-renewed

members through March.

1. Recruitment and Retention Marketing Campaign Update

In the first quarter of 2020, HPBA staff are focusing on renewals, as well as the opportunity to

recruit new members from groups of non-members and first-time exhibitors at Expo.

Communications to non-member exhibitors emphasize specific member benefits for hearth and

barbecue manufacturers. Communications to first time exhibitors introduce HPBA and also

highlight specific benefits and smaller member categories. As part of the recruitment campaign,

membership is also planning visits to specific member prospects on the show floor during Expo.

The 2020 marketing campaign, focused on a wider list of non-member prospects, features a

series of emails that highlight a rotating selection of specific member benefits, beginning with

Expo. Prospects who indicate interest by opening the email will be contacted by phone, with the

goal of increasing re-joins and new member sign-ups.

2. Approval of New Dues Levels for Test Labs and Consultants

At a January 17th meeting of the Manufacturer Membership Subcommittee, committee members

approved a two-tier dues rate system for test labs and those consultants that join HPBA. The

Government Affairs staff conducted outreach to test labs and determined that 60% of the labs

were large while 40% were relatively small. With fairness in mind for these two member groups,

staff recommended a two-tier dues system, with the dividing line at $500,000 in annual revenue.

Staff also recommended that the dues rates remain in the same range that the test labs are

currently paying to the Affiliates. Based on that reasoning, committee members approved the

dues rate of $350 per year for smaller members, while larger members would pay $750 per year.

3. New Affinity Partners Program Update

HPBA staff are in the final stages of agreements with three consulting affinity partners: JRM

Sales and Management, Inc.; NAVIX Consulting, LLC; and Profits Plus Solutions, Inc. These

three companies specialize in improving operations and preparing a business for sale. HPBA

staff are also researching companies that provide transport and logistics services and product

warranties.

In addition, HPBA staff have created a new marketing brochure featuring the complete list of

affinity partners to be used to recruit both Affiliate and Manufacturer member prospects.

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Membership

4. Short Member Benefit Videos on Social Media

Final versions of the 60-second promotional membership benefit videos will be posted on social

media and available for viewing at the HPBExpo 2020 Member Services booth. Member benefit

topics include: Advocacy, Government Affairs Academy and Professional Development, Expo

and Networking, Cost Saving Programs, Affiliates, Education, and Member Resources/Overall

Benefits.

57


Affiliate Leaders

COMMITTEE REPORT

Committee: Affiliate Leaders Date: February 18, 2020

Chairman: Heath Wetjen Staff: Diane Dellen

Ian Rose-Glowacki

Committee Members:

Wayne Stritsman, Region I Board Representative

Joel Etter, NEHPBA President

Rick Lapp, Region II Board Representative

Ron Kessner, MAHPBA President

Dick Hoffman, Region III Board Representative

Wendy Slater, SEHPBA President

Roger Evans, Region IV Board Representative

Woody Markus, MSHPBA President

Jake Hunter, Region V Board Representative

Bill Bathe, MWHPBA President

Joe Burns, Region VI Board Representative

Heath Wetjen, NCHPBA President

Eric Massey, Region VII Board Representative

Shawna Robinson, SCHPBA President

Pete Schoenfeld, Region VIII Board Representative, RMHPBA President

Brian Peterson, AHPBA President

Tim Reed, Region IX Board Representative, OHPBA President

Scott Ongley, NWHPBA President

Amie Ryan, Region X Board Representative

Mario Allen, HPBAP President

Ingrid Schroeter, Region XI Board Representative

Andrew Vickers, HPBAC President

Henry Hall, Board Member-At-Large

1. New Affiliate Leaders Committee Chair

Nominations for a new committee chair to replace Heath Wetjen have been accepted, and a

vote to elect a new chair will be held during the March Affiliate Leaders Committee meeting

in New Orleans.

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Affiliate Leaders

2. Affiliate Board Committee Updates

The Affiliate Board Committee is looking for a volunteer from the Affiliate Leaders

Committee to replace Heath Wetjen. Suggestions for a new committee member will be

accepted at the upcoming March meeting. The Affiliate Board Committee will also

schedule a meeting in April to review the Affiliation Agreement.

3. Affiliate Action Plans

Plans from eleven Affiliates have been submitted and approved by the Affiliate Board

Committee. In the meantime, members of the Affiliate Board Committee are reviewing the

action plans of the remaining two Affiliates.

4. Member Services Booth at HPBExpo 2020

This year the Member Services booth will feature some new elements, including

• wall and table graphics,

• the member recruitment video

• 60-Second member benefits clips via social media

• branded giveaways

• new member recruitment flyers

• a podcast from Tim Reed on the dynamics of a family business

• the #WhyIGrill promotion

• and an appearance by the Mardi Gras Indians.

5. Expo Net Revenue Share Payments to Affiliates

The first series of check payments were sent to the Affiliates at the end of February.

6. Affiliate End of Year Financial Statements

HPBA staff have requested end of year financial statements from the Affiliates. So far five

Affiliates have submitted their statements.

7. Affiliate 2020 Annual Meetings Schedule

Most of the Affiliates have confirmed dates and locations for their 2020 annual meetings and

HPBA staff have scheduled individual visits to these events.

59


Affiliate Leaders

Affiliate Meeting Date(s) Location Staff Member(s) Attending

Arizona TBD

TBD Jack Goldman

Canada N/A

Mid-Atlantic June 1st – 2nd Lancaster, PA Jack Goldman and additional HPBA staff member

MidStates May 12-13 Sandusky, Ohio Jack Goldman

Midwest June 2-3 (dates tentative)

St. Louis, MO Diane Dellen

North Central May 17th & May 19th Glacier Canyon Lodge, Wisconsin Dells, WI

John Crouch

Northeast M April 13 T April 14 W April 15 Th April 16

Portland, ME Framingham, MA Rochester, NY Saratoga, NY

Government Affairs

Northwest May 3rd – Golf May 4th – Annual Meeting May 5th – BOD Meeting

Foster Golf Links, Tukwila, WA Hilton, Takoma Airport, Seattle, WA

John Crouch

Oregon May 15th The Kroc Center, Salem OR

Ryan Carroll

Pacific May 17th & May 19th Lake Natoma Inn, Folsom, CA

Ryan Carroll

Rocky Mountain

Early June

TBD Jack Goldman

South Central Monday, May 18th June 22nd

Trinity Fireside, Dallas Cunningham Gas, The Woodlands, Texas

Government Affairs

Southeast June 3rd – June 5th Calloway Gardens Pine Mountain, GA

Ryan Carroll, Rachel Feinstein and Dick Hoffman

60

Report Docket IX. C.

Government Affairs

COMMITTEE REPORT

Committee: North American

Government Affairs

Committee

Co-Chairs: Marc-Antoine Cantin

Stove Builder I

John Voorhees

United States Stove

Date: February 18, 2020

Staff: Ryan Carroll

John Crouch

Eric Adair

Rachel Feinstein

Christopher Conner

Laura Litchfield, HPBAC

Adam De Caire, HPBAC

Committee Members: Ken Belding, Empire Comfort Systems, Inc.

Marc-Antoine Cantin, Stove Builder International

Steve Haagmans, Valor Fireplaces/Miles Industries Ltd.

Todd Harkrider, Harky’s Chimney

Dan Henry, 5G3 Consulting

Rodger Holland, Holland & Hearth

Ron Kessner, Fireplaces Plus

Dana Moroz, Napoleon Fireplaces

Chris Neufeld, Blaze King Industries

Michael Nordby, Brownstone Distributing

Dominique Pagé, United Buyers Group

Peter Schoenfeld, Fireplace Warehouse

John Shimek, Hearth & Home Technologies

John Voorhees, United States Stove Company

1. North American Government Affairs Committee Meetings

The North American Government Affairs Committee (NAGAC) met on Tuesday, October

22, 2019 in Arlington, Virginia. With the NAGAC and Board of Directors meetings in the

Washington, D.C. area, we were able to hold a very successful HPBA Hill Day (Section 4.,

below). Following the meeting during HPBExpo week, the NAGAC will next meet in

Nashville, Tennessee, on Tuesday, June 9, 2020.

2. Review of Solid Fuel Hearth Appliance Issues

A. Changeouts and EPA Voluntary Programs

After not attending HPBExpo in 2019, EPA’s Burn Wise team will be holding workshops

for state, local, and tribal air offices interested in woodstoves in New Orleans. This year,

in association with Western States Air Resources Council (WESTAR), they will host a

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Government Affairs

three-day event that has at least 80 attendees from throughout the U.S. Some of the

attendees are part of the EPA Targeted Air Shed Grant Program changeouts, which

continue in Fairbanks, AK, Silver Valley, ID, and Portola, CA. Several industry members

and the National Fireplace Institute’s Rich Sedgwick will be helping with presentations.

B. Biomass Stoves Tax Credit Promotions

At the very end of last year, the once-expired biomass stove tax credit was officially

extended for qualifying purchases made in 2019 and 2020. Language included in the

year-end spending bill renewed the $300 tax credit for biomass heaters that are at least

75% efficient. Once again, Congress did not specify how the efficiency should be

measured. Taxpayers need only rely on a manufacturer’s certificate stating that a model is

at least 75% efficient.

HPBA has updated the tax credit resources on our website and has written a blog post to

address some inconsistencies in reporting by other entities. We encourage everyone

interested in the tax credit to visit our website and view these tax credit promotional

resources, FAQs, and blog post.

HPBA has also been promoting the tax credit via social media, including several well-

received Facebook posts. We will continue to promote the tax credit and work towards

another extension of the credit by Congress.

C. Federal Changeout Program Authorization Legislation

At long last, legislation was introduced in the U.S. House of Representatives by Rep.

Peter Welch (D-VT) with Rep. Cathy McMorris Rodgers (R-WA) on December 11, 2019

that would authorize creation of a national changeout program fund. Identical legislation

was introduced in the Senate in mid-2019 by Senator Tom Carper (D-DE) with Senator

Lisa Murkowski (R-AK). The bill, the “Wood Heaters Emissions Reduction Act

(“WHERA”) (H.R. 5391; S. 2274) would authorize $75 million each year over five years

to fund changeout programs across the U.S. A stable source of funds for changeout

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https://www.hpba.org/Advocacy/Biomass-Stove-Tax-Credit

https://www.hpba.org/Resources/HPBA-Blog/ID/1902/The-No-Nonsense-Take-on-the-Biomass-Stove-Tax-Credit


Government Affairs

programs has long been sought, since funding sources have been irregular and are often

limited. Retailers who participate in changeout programs almost always see an increase in

sales and their customer base.

The legislation would fund replacements of non-certified woodstoves, hydronic heaters,

and forced-air furnaces and would require that replacements be at least 65% efficient per

the higher heating value1 of the fuel, meet the Step 2 requirements of the NSPS, and that

the replaced wood heater be destroyed or rendered inoperable after removal.

We continue to work on adding cosponsors to the legislation and to have legislative

hearings held by the relevant committees (Energy and Commerce Committee in the

House and Environment and Public Works Committee in the Senate). We have met with

the majority and minority staff for both committees; all are supportive of the legislation

and have provided advice on how best to sway their members to support the bill.

3. Review of Gas Hearth Appliance Issues

A. State Minimum Efficiency Efforts

i. Washington State

HPBA staff and members from Northwest HPBA (NWHPBA) worked together

for months in 2019 on a proposal before the Washington State Building Code

Council (WSBCC). Initially, the proposal called for a ban on continuous pilots

and minimum efficiencies of 65% on all vented gas fireplaces, even decorative

units. After several hearings and considerable input from industry, the WSBCC

ultimately decided to more closely align with existing Canadian regulations. The

adopted requirements are:

• 50% “fireplace efficiency” (using CSA P.4.1) for heater-rated (ANSI Z21.88)

products;

• no minimum efficiencies for decorative (ANSI Z21.50) products; and

• a disallowance for continuous pilots on any of the products.

Like the Canadian regulations, the WSBCC will allow for any non-continuous

pilot option (i.e., intermittent, interrupted, or On Demand).

ii. California

The California Energy Commission (CEC) rulemaking on gas hearth products

remains open. The last update from CEC staff indicated work would resume on a

staff report around the beginning of the new year. CEC has not offered many hints

about possible proposed requirements (e.g., scope of covered products, minimum

efficiency levels, main burner time-outs). It is interesting to note that Jessica

1 “Higher heating value (or “HHV”) is a measure of total heat released during the combustion and cooling process.

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Lopez, CEC project lead for the rulemaking, has been involved in the CSA P.4.1

fireplace efficiency discussions (Section 5.C., below); Canadian regulators who

have been involved in the same process have credited the work with an

appreciation for how unique are products are in terms of efficiency.

B. Electrification and Decarbonization Initiatives

We have reported on Zero Net Energy at the Board meetings for more than a year. Since

the October Board meeting, the nature of the discussion has changed to one of complete

electrification and decarbonization. HPBA’s Communications and Government Affairs

departments have developed a joint report for the Board (see, Issues Docket B.1.).

4. October Hill Day Report

We wish to sincerely thank everyone who participated in our Hill Day this past October.

About 30 HPBA members met with more than 60 congressional offices to primarily discuss

changeout program legislation and the biomass stove tax credit. We received very positive

feedback from members, and the day overall was a positive experience. In fact, as a result of

HPBA member visits, Senators Booker (D-NJ) and Wyden (D-OR) became cosponsors of

the Senate changeout legislation. We intend to hold another Hill Day in October 2021, when

the Board will meet next in the Washington area. Our next day on the Hill with members will

take place in July 2020 at the end of our Tom Pugh Government Affairs Academy, when we

will build on the relationships developed in October and throughout the year.

5. Review of Codes and Standards Issues

A. ASHRAE 62.2

Last year, HPBA and other organizations opposed ASHRAE 62.2 Committee’s

Addendum “a,” which would have tightened limits on carbon monoxide and nitrogen

oxide emissions from vent-free appliances, essentially banning these devices in

ASHRAE-compliant homes. Fortunately, the ASHRAE Board of Directors rejected

publication of the addendum, apparently on procedural grounds, leaving its future in

limbo. As a method of showing the utility and viability of vent-free appliances, a

Research Topic Acceptance Request (RTAR) 1798 was proposed. During the ASHRAE

Winter Conference, the 62.2 Committee voted to approve the work statement for the

RTAR, which will now move forward to the Research Administration Committee for

approval. If approved, ASHRAE will likely cover up to $250,000 of the estimated

$750,000 total cost of the project; ASHRAE will be looking to other interested parties for

additional funding for the project.

B. ICC Code Hearings

ICC codes operate on a three-year revision cycle, with the codes now split between

Group A and Group B (until recently, there was also a Group C). In 2019, Group B codes

revisions were completed with the Public Comment Hearings held in October.

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Preliminary results of the proposals are available on the ICC website:

https://www.iccsafe.org/wp-content/uploads/PRELIMINARY-2019-GROUP-B-OGCV-

RESULTS.pdf.

A notable common theme from the meetings is the continued push for electrification in

the building and energy codes. Typically, the push is coming from environmental groups

and others with an interest in electrification (e.g., solar companies). HPBA, the American

Gas Association, and other associations are working to ensure that gas and other fuels

remain available in the codes.

As reference, the ICC Group B codes include the International Building Code (IMC), the

International Existing Building Code (IEBC), the International Energy Conservation

Code (IECC), the International Green Construction Code (IgCC), and the International

Residential Code (IRC). Review of Group A codes, which include the International Fire

Code (IFC), the International Fuel Gas Code (IFGC), and the International Mechanical

Code (IMC), will begin again in 2021.

C. CSA P.4.1 Testing Method for Measuring Annual Fireplace Efficiency

A Working Group has been formed to consider updates to CSA P.4.1-2015 Testing

Method for Measuring Annual Fireplace Efficiency. The P.4.1 standard has been the best

method for measuring and reporting efficiency for gas fireplaces for nearly 20 years. It is

more appropriate for hearth products than test methods for other appliances (e.g., water

heaters and furnaces) which measure efficiency on an annual, frequently cycling basis.

However, industry has long realized that there are areas the method could be improved to

better reflect real-world use and utility of gas-fired products. A conference call was held

in February to continue discussions about the appropriateness of steady state efficiency

versus the current “Fireplace Efficiency,” a calculation for heat loss, incorporating input

into the P.4.1 metric, and any differences needed for testing heating and decorative

appliances. Radiant heat is also being considered as a factor in heating efficiency. P.4.1 is

increasingly becoming the efficiency metric of choice for regulators, so it is important for

industry, especially manufacturers, to participate as revisions are considered.

D. Outdoor Appliances

i. ANSI Z21.97 Outdoor Decorative Gas Appliances

The Outdoor Decorative Gas Appliances Working Group held a teleconference in

January to continue discussing safety of glass viewing areas. Two means

identified to increase safety were barriers and warning labels on decorative

outdoor glass viewing areas. The Working Group will propose language to the

committee to allow both options in the ANSI Z21.97 standard.

ii. ANSI Z21/CSA Joint Technical Subcommittee on Standards for Outdoor

Cooking and Illuminating Gas Appliances

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Government Affairs

A meeting was held in February to continue discussions about action items from

the October meeting. Ongoing considerations by task groups include:

• Construction of composite cylinders

• Design and configuration of enclosures around appliances, and ensuring sufficient

ventilation for safety and operation

• Safety concerns about separating the LP cylinder from the cooking area.

• Harmonizing ANSI Z21.42 Gas-fired illuminating appliances and CSA 2.15 Gas-

fired domestic lighting appliances

• Temperature and safety requirements for hot surfaces for gas cooking appliances

The Subcommittee meets again on Tuesday, February 25th to report on progress of

the various task groups.

E. ASTM E3053

The Task Group for ASTM E3053 Standard Test Method for Determining Particulate

Matter Emissions from Wood Heaters Using Cordwood Test Fuel (frequently referred to

as “the cordwood test method”) has been meeting regularly for several months. In recent

meetings, the group has discussed possible revisions to the overall test method concept,

pre-conditioning requirements, and test flue load requirements. With the recent EPA

decision to use the Integrated Duty Cycle as the basis for developing a cordwood test

method Federal Reference Method development (see, Issues Docket, B.3.), some of the

work of this task group may be put on hold.

6. HPBA Partners with Congressional Management Foundation

At the beginning of the year, HPBA became a member of the Congressional Management

Foundation’s (CMF’s) “Partnership for a More Perfect Union.” As a member, we have full

access to CMF’s advocacy data – such as important survey questions and answers from

congressional staff about what matters to them – and its library of advocacy training

webinars. CMF holds six live webinars throughout the year (all of which are recorded).

To thank our members who have sent at least one email to their elected officials (at the U.S.

federal, state, or local level), we will send links to live webinars and recordings to these

industry advocates. Key government affairs leaders, such as Affiliate staff, NAGAC

members, and Government Affairs Academy graduates will also be invited to participate.

Currently, 772 individual HPBA members have sent emails and would be invited to these

webinars, in addition to our key leaders.

We will soon send out an invitation to watch an earlier webinar, “What to Expect When

Meeting with a Member of Congress and Staff.” We are still reviewing all previously

recorded webinars and working on how best to distribute the content, but we are very excited

about this new opportunity. We see this as a way to improve members’ advocacy skills and

increase engagement throughout the year; it can also be used to recruit new advocacy leaders

from within the industry. Here are all upcoming 2020 webinars:

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• March 19 - Building Relationships with Congressional Staff

• May 5 - How to Create a Local Event That Will Attract a Member of Congress

• June 30 - How to Hug a Porcupine: Relationship Building with Lawmakers and Why It's

Important

• October 8 - Creating Effective Stories to Share with Lawmakers: How to Create Stories

to Move the Hearts, Minds, and VOTES of Lawmakers

December 15 - Freshmen Spotlight: How to Build Relationships with New Members of

Congress

7. China Tariffs and USCMA Update

Phase one of a trade deal with China went into effect earlier this year. An existing tariff of 25

percent will remain in effect for certain products, including portable and built-in non-electric

grills and certain grill components. Another tariff, which went into effect on September 1,

2019, has now been cut from 15 percent to 7.5 percent. This tariff affects products such as

barbecue forks with wooden handles, certain cooking appliances, and metals. In return, China

has agreed to structural changes and increased purchases of agricultural, energy, and

manufactured goods from the U.S.

The U.S.-Mexico-Canada Agreement (USMCA) package was finally passed by Congress and

signed by President Trump on January 29, 2020. Mexico ratified the agreement some months

prior, leaving Canada as the last party to ratify the agreement. Prime Minister Trudeau would

like to ratify the USMCA as soon as possible, but the House of Commons and Senate

approval could still take several months. HPBA and HPBAC will continue to monitor these

developments and keep members apprised.

8. HPBA Canada Government Affairs Report

A. City of Vancouver Climate Change Action - Update

HPBA Canada staff has engaged with the City of Vancouver staff on its policy

development following the release of the City’s Climate Emergency Response Report on

April 29, 2019.

The city hosted a briefing with HPBAC on proposed changes to the Vancouver Building

By-Law (VBBL), a piece of legislation that affects the ability to include hearth products

in new construction and remodels.

The proposal included three “paths”' to compliance:

• Prescriptive Path: 60,000 Btu/hr input limit for the sum of all fireplaces. (Up from

50,000 Btu/hr input limit at the request of industry.) No limit on cooking (cooktops,

grills, ranges, etc.).

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Government Affairs

• Performance Path: Greenhouse gas (GHG) intensity of 3kg/m2/year. This path provides

more flexibility and was requested by homebuilders in the last code cycle.2

• Passive House Path: A new path that meets the highest levels of energy efficiency, yet

still allows for natural gas space and water heating. No Btu or GHG intensity limits

apply.

Note: For single family homes over 325 m2, the total GHG limit will be reduced

from 3 tonnes to 2 tonnes.3

These restrictions would apply only to new multi-residential units of three stories

and under, as well as single family homes, duplexes, and triplexes.

B. Enforcement of Energy Efficiency Regulations in British Columbia

HPBAC has been contacted by the B.C. Ministry of Energy, Mines & Petroleum

Resources, which regulates the performance, labeling, and ignition type of vented gas

fireplace products. The ministry will be conducting random site inspections on vented gas

fireplace products throughout B.C. as a follow up to the performance standard that went

into effect on January 1, 2019. We believe that these inspections will include

manufacturers, distributors, and retailers in B.C. The whole of the regulatory process has

been collaborative and the ministry has indicated it wishes to educate, not penalize. The

ministry has committed to providing a detailed memo to HPBAC and all B.C. members

in February or March to outline the process prior to conducting inspections.

C. Residential Wood Burning

i. NSPS in Canada

HPBAC continues to communicate and clarify the implications of Step 2 of EPA’s

NSPS in Canada. HPBAC contacted building officials in Ontario to clarify that, as a

result of their provincial regulations, the “Not for sale after May 15, 2020” statement

found on some appliances does not apply in this jurisdiction. Staff continues to

answer inquiries from members.

2 In an average 315m2 (3,400 sq. ft.) new single-family home, 3kg x 315(m2) = 945kg annual GHG allowance. For

example, a single indoor fireplace at 60% or better efficiency is 103kg of greenhouse gases a year according to

Natural Resources Canada’s hourly use assumptions. A single stove, oven, or cooktop is 105kg a year. These

numbers assume natural gas is the fuel. 3 Context: For homes greater than 325m2, moving to a 2 tonne limit is intended to require that when pools and snow

melt systems are installed that they be heated with zero emissions systems. For reference, installing a single indoor

fireplace (greater than 60% efficient) is calculated at 0.103 of a tonne. Installing an outdoor fireplace at 30,000

Btu/hr input is 0.169 of a tonne. Compare that with a 30m2 (320sqft) outdoor pool, heated with gas it has a GHG

footprint of 2.9 tonnes; heating with an electric heat pump brings it effectively down to zero. A recent application

for a 7,000 sq. ft. home the GHG footprint was 0.91 of a tonne – they proposed three indoor fireplaces, two outdoor

fireplaces, and an outdoor piped gas grill: the GHG footprint is 1.668 tonnes. If they double the number of indoor

fireplaces (to a total of six indoor fireplaces), they get to 1.97 tonnes and would still be under the current 3 tonne and

the proposed 2 tonne limit.

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ii. Changeouts

Through staff advocacy, the changeout program underway in the City of Ottawa has

successfully been extended for the 2020 calendar year. Targeting the rural areas of

Ottawa, the changeout covers 25 percent of the cost of a new appliance and installation

to a maximum of $750; the changeout is wood-to-wood only.

iii. National Woodsmoke Summit

The New Brunswick Lung Association has submitted a draft report coming out of this

event and is seeking comment from attendees of the summit. HPBAC is reviewing the

document and will respond.

iv. Comox Valley

Staff of the Comox Valley Regional District and member municipalities in British

Columbia released a proposal for a Comox Valley Air Quality Framework. The

Framework presents wood smoke from residential wood heating appliances in a

negative light and is likely to be the first step in the continual tightening of limitations

on the use and installation of such appliances in the region. The framework calls for

the development of working groups, in which HPBAC will seek to participate, to

ensure industry representation.

D. Codes and Standards

i. CSA B415.1 Proposed Update

The CSA Subcommittee, chaired by Marc-Antoine Cantin of SBI, has begun its

review of the CSA B415.1 performance testing standard for solid fuel-burning

appliances. With regular meetings now taking place, the subcommittee hopes to

complete its work within 18 months. Much of the work will be funded by the

Solid Fuel Hearth Appliance Section; CSA Group has agreed to cover the staffing

and administrative costs of the subcommittee.

ii. CSA Technical Committee Work

The CSA JB118 (F300-13) and JB118.1 (F326) Technical Committee is continuing its work on two standards: CSA-F326-M91 (R2010) Residential Mechanical Ventilation Systems and F300-13 Residential Depressurization.

Dan Bradley will continue to represent HPBAC on this committee.

iii. CSA Z630 Barbecue Grill Brush Standard

HPBAC participated in the creation of a standard to address safety concerns

around the manufacture, testing, and deterioration of grill brushes. This is

currently a voluntary standard, which manufacturers may select to follow. As a

result of funding from Health Canada, the standard is available without cost on

the CSA website.

Direct links to the document are as follows:

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English – https://community.csagroup.org/docs/DOC-124771

French – https://community.csagroup.org/docs/DOC-124772

9. New Legislative Action Center Platform

HPBA has completed its transition to a new Legislative Action Center platform. The new

tool allows members to more easily connect with their legislators (and Members of

Parliament in Canada) via email and social media. Features of the software include photo and

video messaging, integrated text messaging to advocates, direct social media posts to

legislators’ profiles, and rotating email messages. The new system also enables HPBA to

send text messages (to those who opt in) when there is an urgent need for you to contact your

legislators or when there is a major legislative update. If you would like to breakthrough your

email clutter and start receiving advocacy alerts via text message, send a text “HPBA” to

313131.

10. American Keeper of the Flame Award

On February 12 and 13, 2020, HPBA presented Senator Shelley Moore Capito (R-WV) and

Representative Collin Peterson (D-MN) with HPBA’s inaugural American Keeper of the

Flame Award for their work in protecting the interests of the hearth industry. In the future,

this award will be given to one Senator and one Representative each session of Congress

(every two years) who have gone above and beyond to help the hearth and/or barbecue

industry. Sen. Capito and Rep. Peterson both introduced legislation that would have extended

the effective date of the NSPS Step 2, if enacted, and both have made numerous outreach

attempts with EPA and the White House to advocate on behalf of the industry. HPBA wanted

to thank both legislators for these efforts and to provide them with positive press as both are

up for reelection this year. HPBA got the idea for this award from Northeast HPBA’s

“Keeper of the Flame Award” which recognizes strong advocates within the industry.

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https://community.csagroup.org/docs/DOC-124771

https://community.csagroup.org/docs/DOC-124772

Report Docket IX. D.

Communications COMMITTEE REPORT

Committee: Communications Date: February 18, 2020

Chair: Brian Eskew, Twin Eagles, Inc. Staff: Emily McGee

Stephanie Gomez

Committee Members: Beth Bohnenstiehl, Empire Comfort Systems

Amy Bortz, Robert H. Peterson Company

Dave Coulson, Napoleon Products

Linsey Fluty, Ray Murray, Inc.

Chris Hartley, Blue Rhino

Todd Hudson, England’s Stove Works, Inc.

Roxanne Leigh, Montigo

Heather Reasoner, Kozy Heat Fireplaces

Bob Robinson, Even Temp Distributing

Olivia Landborg, Hearth & Home Technologies

Paul Williams, United States Stove Company

1. Promoting the industry

a. Barbecue

WhyIGrill finished its first year with the last two Ambassadors in November and December.

In November, the National Turkey Federation served as our Ambassador and we issued a

joint press release encouraging people to grill their turkeys for Thanksgiving. In December,

Santa Claus was our Ambassador. He is a Long Island competition pitmaster and the owner

of Santa’s BBQ Catering. Both Ambassadors published social content in support of

WhyIGrill and shared recipes and pictures.

In 2020, we are going to try a new direction for the program. Ambassadors will be connected

to specific promotions, rather than months. This means we will have an Expo Ambassador, a

National Barbecue Month Ambassador, a Barbecue Your Breakfast Ambassador, etc.

We also will be launching the inaugural National Back to BBQ Day on the Saturday of

Memorial Day Weekend.

b. Hearth Promotions

In October, we promoted National Fireplace Month with the “Home Is Where the Hearth Is”

campaign. The campaign was designed to highlight all the places that a fireplace can be

found in a home beyond the living room. We created graphics and social media posts and

shared these with the Affiliates for their use and to share with the retailers. In addition, we

published a Brandpoint article that had a total placement of more than 1,000, with a total

audience of more than 212 million. This included the ten largest media markets in the US.

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Communications

For 2020, we plan to further engage with consumers through social media and photo contests

that encourage people to share pictures of their fireplaces in different ways. We have also

introduced the HPBA Spotify playlists. As a test, we created a playlist for Valentine’s Day

and promoted it through social media and a few select media. The plan is to do more playlists

in the fall when people start using their fireplaces more.

At Expo this year, we plan to create more videos in support of the hearth industry. One will

be a Facebook Live, the other will be recorded and used through Instagram. We also will

again be promoting WhyIGrill in the HPBA Member Service Booth with a selfie station that

offers the chance for people to share why they grill and post a picture.

2. Website Updates

The Communications Department has completed all the Phase One updates of the website,

meaning everything that we can do internally without major assistance from our website vendor.

All of the tabs on the homepage have been updated and streamlined. We have also added all

Board members’ bios and headshots to the Board list. This new listing will go live in mid-

March when the new Board is in place.

We successfully launched the HPBA blog in the fall of 2019 with eight blog posts over the past

four months. These posts range from promoting Expo to explaining legislation to praising our

industry. Each blog post is accompanied by social media outreach and we encourage the content

to be used by Affiliates with credit. As we continue to build up this library of content, we will

cover more of the activities of HPBA and its members.

3. Social Media

The Communications Department continues to develop content for social media that will engage

consumers, inspire membership, and provide information. New this fall is the effort to build up

the HPBA LinkedIn page. This just started in September, but we will continue to add content and

engage with followers through this medium.

The HPBA main channels continue to grow and since November 1, 2019, engaged with a total of

52,729 impressions, 2,359 engagements, and 5,602 followers/likes over the Facebook, Twitter,

Instagram and LinkedIn accounts. The LinkedIn account was only activated this past fall and has

grown to 361 followers with 170 engagements in that time. The content for the main channels

focuses on HPBA in general, government affairs, Expo, and sharing and retweeting the content

from the barbecue and hearth channels.

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Communications 4. Other Projects

Multiview, the vendor that produces Newscast for us each week, worked with us this winter to do

a re-design of the weekly email to our members. The new design is subtle, but it updates the

appearance and makes a cleaner-looking product. The big change, however, is that it allows for a

personal message to be included at the top of the newsletter with any message we want to share.

For instance, we sent a version of Newscast to all of our members who have not yet renewed,

with a reminder to do so.

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Report Docket IX. E.

Research Committee

COMMITTEE REPORT

Committee: Research Committee Date: February 18, 2020

Chair: Justin Spray, Napoleon Staff: Cameron Downs

Committee Members:

Bob Atkinson, Big Green Egg

Matt Coyne, Hearth & Home Technologies

Ron Newman, Innovative Hearth Products

Jeff Cleveland, Empire Comfort Systems

Scott Schindlbeck, DuraVent

Leo Trask, Travis Industries

1. Research Services Expansion

At the October Board meeting, the Executive Committee approved the proposed topics for

HPBA’s research expansion. These include a market forecast, market sizing & landscapes, local

prospect lists for retailers and how to best use them, and (semi)custom consumer research for

specific product types or segments of the industry.

HPBA Research staff have started this process by engaging in discussions with vendors about

possibilities for forecasting, landscaping, and sizing. HPBA has come to an agreement with

Rockbridge Associates to include this as a component of the State of the Hearth Market Report,

which will be conducted this year. For the first time, this type of data will be collected and

analyzed and made available to members.

Research staff also began a review of HPBA’s relationship with HomeAdvisor to improve tool

utilization and increase members’ satisfaction with the HomeAdvisor consumer prospecting tool.

This includes identifying methods to improve tool usage and satisfaction, identifying potential

competitors or replacement tools, as well as developing processes to help members get more

successful value from the program.

2. State of the Hearth Market Consumer Research Report

HPBA is once again partnering with Rockbridge Associates to conduct the 2020 State of the

Hearth Market Report. This will be the third iteration of this version of the report, which also

allows for trending analysis. Additionally, this will where Rockbridge assists in the HPBA

research expansion project by conducting some additional analysis of the results to help generate

market sizing, landscape, and forecasting data. Research staff and Rockbridge met in early

February to discuss the scope and changes to the report and establish timeline for report

completion. HPBA members can expect the reports in May.

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Report Docket IX. E.

Research Committee

3. Shipments Programs

Three shipments programs have been running over the first two months of the year – the

Manufacturers’ Shipment Report (MSR), Regional Hearth Appliance Shipments Report, and the

Hearth Venting Shipments Report. Data collection began during the first week of January, with

data validation, analysis, and report generation occurring in February and March. Reports are

anticipated to be released to participants after HPBExpo, and to the public in early-April.

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Report Docket IX. F.

HPBEF

HPBEF REPORT

Committee: HPBEF Board of Governors Date: February 18, 2020

President: Suzanne Turner, Retired Staff: Rick Vlahos

Rich Sedgwick

Gwen Thompson

Mary Jo Nadeau

Jill Eicher

Board Roster: President: Suzanne Turner, Retired

Vice-President: Bob Wise, CVC Success Group

Secretary: Wayne Terpstra, PFS Corporation

Treasurer: Dana Richens, Smith, Gambrell & Russell, LLP

Richard DeGraw, Travis Industries

Eric Haldeman, Regency Fireplace Products

Amie Ryan, Ryan Brothers Chimney Sweeping

Ronald Segars Jr., Ron’s Fireside Shop

Eugene Schutte, Hearth and Home Technologies

Joslyn Teng, Dexen Industries

Non-Voting Members

Jack Goldman, HPBA

Pete Schoenfeld, HPBA Board Secretary

Zigi Gadomski, W.E.T.T. Canada

Russ Dimmitt, Chimney Safety Institute of America

1. Board of Governors

The 2020 HPBEF Board of Governors roster changed significantly. Hope Stevenson, Eugene

LaFlamme and Russ Dimmitt all reached their term limits. All three have faithfully served the Board

and the industry for many years. They will be missed. Russ Dimmitt will stay on the Board and fill the

non-voting seat provided for a CSIA representative. The new Board members are Joslyn Teng from

Dexen Industries, Gene Schutte from Hearth & Home Technologies, and Ron Segars from Ron’s

Fireside Shop. Amie Ryan was appointed to fill the seat vacated by Rich Sedgwick when he

transitioned from a Board member to an employee.

2. HPBEF Staff

Rich Sedgwick, Director of Sales and Marketing, fills a position that was vacant for several years. Rich

is making changes and developing plans to streamline the certification process and expand the

HE@RTH Online training platform. There is some confusion in the industry over the recent changes in

the NFI exam format. Rich is working with HPBA Affiliates, manufacturers and individual industry

members to clear up the confusion. He is also explaining the benefits of the Hearth Design Specialist

certification to hearth product retailers.

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HPBEF

3. HPBEF Finances

Income for in 2019 was down 8%. One factor in the decrease was that exams were offered for free

from January through March in order to achieve a sufficient number of test results for all four new

exams in time for the final Cut-Score Meeting in April. The over-length exam is a critical step in the

new exam development process.

4. National Fireplace Institute® (NFI) Update

a. Computer Based Exams at HPBExpo

For the past three years, the NFI exams have been available online from any computer with a

webcam and microphone. HPBEF recently invested in ten laptop computers that will allow

people at HPBExpo to take the exam on a computer rather than on paper. The person taking the

exam will immediately find out if they passed or not as soon as they hit “Submit.” The

computer-based exams cut down on the administrative time necessary to process and score the

exams. They also give our psychometrician significantly more data that will be used in making

decisions about the exam questions in the future. The computers are also available for HPBA

Affiliates to use at their NFI exam events.

b. PSI/LaserGrade Test Centers

NFI exams have been available through LaserGrade test centers ever since the first exams were

offered in 2002. LaserGrade was purchased by PSI a few years ago. The level of service and

user satisfaction with this option has diminished over the past few years. The HPBEF Board

made the decision not to renew this option when our contract expires March 31, 2020.

However, PSI made the decision to end the relationship as of January 1, 2020. We are working

on replacing the PSI exam option for those that want to take their NFI exam at a test center

rather than online or at an industry event.

c. NFI Certifications (Attachements A & B)

The number of people holding NFI Certifications was up 2.5% in 2019. There are currently

1,575 people that hold 2,576 certifications.

5. Education Update

a. HE@RTH Online Training

HPBEF will work with manufacturers, distributors and other industry organizations to provide

specific online training classes to its customers through the HE@RTH Online Training

platform. The content will be organized in separate catalogs. Subscribers can purchase access

to one catalog or multiple catalogs. Negotiations are currently underway with the first

organization that wants to use this product.

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HPBEF

b. HPBExpo Education 2020

Thirty-six General Education sessions are scheduled at HPBExpo 2020, covering a wide variety

of topics. NFI Review classes will be held on Wednesday and Thursday. There are also five

manufacturers that have taken advantage of the Manufacturer Specific Training program. A

sponsor for the 2020 Expo Education Program was not secured. The lack of a sponsorship puts

a severe strain on the 2020 budget.

(Attachment A)

NFI Certification Exams

(Attachment B)

NFI Certifications by Affiliate # of People, some may have more than 1 certification

2018 2019 2018 2019

Arizona 17 20 Oregon 23 18

Canada 5 16 Pacific 83 78

Mid-Atlantic 260 252 Rocky Mountain 106 131

Midstates 186 183 South Central 78 86

Midwest 124 140 Southeast 168 182

North Central 144 142 Mexico 1 2

Northeast 285 258 Total 1536 1575

Northwest 57 67

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