HARDI Manager of Government Affairs, Jon Melchi provides a unique insight to the legislative, regulatory and political happenings in Washington, DC at the 2011 HARDI Western Region Conference.

1. HARDI Western Regional Meeting March Madness Jon Melchi, Manager of Government Affairs 3/21/11

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3. Budget Battles: Short Term Chaos, Long Term Disaster 3 Congressional Landscape Previous Congress did not pass FY11 budget Competing proposals in the House and Senate Continuing resolutions Key Budget Negotiation Dates

4. Politics of the Moment- Political Landscape in Congress Senate House 53 Democrats 47 GOP 8 retirements 242 GOP 193 Democrats 93 new members 4

5. March Madness-Reform, Deficit Commission, FY12 Budget, Entitlements 5

6. Total Spending in FY10= $3.5T (outlays in billions of dollars) Federal Budget Outlays Net Interest $202 Medicaid $273 Medicare $519 Discretionary Spending(33% of total) Defense(Discretionary) $692 6

7. The Path Ahead: Unsustainable Deficits Administration Budget 7

8. Entitlement Spending Will Out Pace Tax Revenue Projected Tax Revenue Assuming Extension of 2001/2003 Tax Rates Medicare Social Security 8 Source: House Budget Committee

9. Industry-Specific Policy Issues Industry Coalition 25c Energy Bill 9

10. Health Care Reform Mayhem- Lawsuits, Legislation & Politics Where Will Health Care Reform Debate Be Decided? Right Here. With him. 10

11. March Madness Federal and State Regulations 11

12. Federal Regulations Proposed Regional Standards A look back at 2010 Presidential Executive Order House Hearings HARDI Survey 12

13. Proposed Regional Standards 13

14. Impact of Federal Regulations on the HVACR industry NLRB DOE EPA R-22 HVACR INDUSTRY 14

15. California:Leading the Nation in Regulation CARB Refrigerant Management Program New Regulations for Distributors and Reclaimers 15

16. Contact Info Jon Melchi, HARDI Manager of Government Affairs 888-253-2128 (Office) 614-975-7021 (Cell) jmelchi@hardinet.org www.twitter.com/HARDIgov Remember the HARDI Congressional Fly-In! 16