Advocacy as a business strategy

If you’ve been in this industry long enough, you know disruption isn’t new. You’ve managed freight chaos, supply shortages, labor gaps and demand spikes. Lately, however, the uncertainty seems less about what’s happening in the warehouse and more about what’s happening in courtrooms, committee hearings and state regulatory offices.

Between tariff rulings, state product bans, federal efficiency standards and mounting workforce challenges, the PHCP-PVF channel is operating in an environment where regulatory shifts can alter inventory planning, product availability and pricing strategy almost overnight.

At AHR Expo and KBIS/IBS this winter, conversations weren’t limited to product innovation or design trends. Policy uncertainty from both Washington and state capitols was just as present around the booths. Attendees weren’t just asking what’s new; they were asking what’s compliant or affordable in their markets.

Earlier this year, Heating, Air-conditioning & Refrigeration Distributors International (HARDI) and the Plumbing-Heating-Cooling Contractors—National Association (PHCC) filed an amicus brief before the U.S. Supreme Court in a case that could determine how far the Department of Energy can go in eliminating certain gas-fired appliances from the market. At stake is more than legal theory. If federal agencies gain broader authority to remove non-condensing furnaces or water heaters from the market, that would directly affect what distributors can stock and what contractors can install. Product mix, replacement viability and compliance costs would all shift accordingly.

HARDI has also applauded House passage of legislation aimed at repealing the “installation date” trigger under regional efficiency standards, a long-standing source of frustration for distributors operating across multiple states. Under current rules, compliance can hinge on the installation date rather than the manufacture date, meaning inventory lawfully purchased can suddenly become non-compliant depending on where and when it is installed. For distributors managing warehouse turns and regional logistics, that distinction carries real financial risk.

The American Supply Association (ASA) is likewise deeply engaged at both the federal and state levels. In a recent policy update, ASA outlined how shifting federal priorities and growing state regulatory activity are reshaping the industry landscape. Beyond monitoring tariff developments and energy policy shifts, ASA recently submitted formal comments opposing a proposed California Energy Commission rule that would require detailed reporting on every water-heating unit sold or installed in the state. The association argues that such a mandate would impose significant administrative burdens on manufacturers, distributors and contractors, increasing compliance costs without clear operational benefit.

That kind of proposal signals a broader trend, emphasizing that compliance risk is no longer confined to product design or efficiency standards. It increasingly touches data reporting, documentation requirements and operational oversight.

ASA’s Vice President of Government Affairs, Steve Rossi, recently underscored the importance of coordinated advocacy, noting that ASA has been “actively involved in ongoing discussions on energy and workforce policy” alongside PHCC as part of broader conversations taking place on Capitol Hill. Rossi added that ASA is “thrilled to partner with PHCC at the upcoming Legislative Conference in May,” bringing members directly to Washington to ensure the industry’s voice is heard.

That kind of engagement reflects a shift in posture. Advocacy is no longer reactive; it is increasingly proactive and strategic.

Federal policy is only part of the equation. In Colorado, a new law effectively bans most residential propane water heaters by setting emissions criteria that no currently available products meet. For distributors serving affected regions, that means re-evaluating product lines and contractor guidance in real time. Meanwhile, PHCC’s “All Eyes on the Courts in 2026” update highlights ongoing legal challenges to state and local restrictions on natural gas in buildings. Cases like Mulhern Gas Co. v. Mosley could influence whether gas-fired boilers and water heaters remain viable options in certain markets.

For distributors already balancing freight normalization, tighter inventory discipline and evolving contractor demand, these policy developments add another layer of complexity. Decisions made in courtrooms, committee hearings and regulatory agency offices can determine which products remain on your shelves, how you forecast demand and what guidance you provide to customers navigating code and efficiency changes.

Operational excellence still matters. But so does regulatory awareness. Staying informed about advocacy efforts and understanding how they connect to your day-to-day business is part of modern distribution leadership.