OPEI 10-2022 quarterly report

After four decades, GIE+EXPO will become Equip Exposition! Join us in Louisville, Kentucky from October 18-21, 2022 to kickoff a new chapter of our industry’s largest event.

QUARTERLY REPORT October 2022

RECORD EQUIP EXPOSITION SET TO OPEN Equip Exposition – OPEI’s rebranded industry trade show in Louisville, Kentucky – launches in just a few days. Our staff in Louisville and Alexandria have been working since the close of the 2021 show last October to bring this new 40-year-old event to life. In addition to opening a new office in downtown Louisville, we have evolved the trade show by adding new program- ming, expanded education with new partners, and enlarged the show’s Outdoor Demo Yard to 30 acres. And thanks to the support of our members and the broad- er industry, the trade show floor for both Expo and our co-located partner Hardscape North America are sold out for the first time. Add to that record levels of sponsorships and advertising support for our trade show magazine equip , and we are prepared for show like none other. As the industry gathers this month in Louisville, it faces ongoing challenges and opportunities, among them California and other jurisdictions moving to ban or restrict the sale of certain outdoor power equipment and increasing regulatory requirements on battery handling. OPEI remains engaged as an advocate for our members, offering them the forum to connect and respond as a united industry. – Kris Kiser

OPEI President Kris Kiser discusses the launch of Equip Exposition on an industry podcast from the trade show’s Louisville headquarters ear- lier this month.

opei.org | 1605 King Street, Alexandria, VA 22314 | 703-549-7600

The calm before the storm The Kentucky Exposition Center being prepped for the sold-out Equip Exposition, held Oct. 18-21. OPEI owns and manages the trade show, which brings 25,000 attendees to Louisville each year.

EQUIP EXPO IS SOLD OUT LOUISVILLE, Ky. – Exhibit space at Equip Exposition and co-located Hardscape North America are fully sold out, beat- ing previous records. All indoor and outdoor exhibit space is sold. Equip Exposition (the former GIE+EXPO trade show) will be held Oct. 18-21 in Louisville, Kentucky, at the Kentucky Expo- sition Center (KEC). The show draws tens of thousands of landscapers, contractors, and others working in the outdoor industries and features nearly 1,000 exhibits. “This is a first for Expo: Every inch of exhibit space inside the KEC and outside in the newly expanded 30-acre Outdoor Demo Yard has been reserved,” said Kris Kiser, President & CEO of the Outdoor Power Equipment Institute (OPEI), which owns Equip Exposition. “It’s a great year to come to Louis- ville.” The excitement for the show has also led to record-break- ing advertising revenue for equip magazine and Equip Exposi- tion sponsorships.

“The sellout shows the vitality and excitement around Equip Exposition,” said Kiser. “It’s our industry’s ‘family re- union,’ complete with the food and fireworks – plus digging, mulching, mowing, sawing, and test-driving on a grand scale. You won’t want to miss it.” Equip Expo attendees can “test before they invest” in the newest and best outdoor power equipment, ask manufactur- ers questions face-to-face, attend the many education and training sessions available. LUCKY’S MUTT MADNESS BRINGS RESCUE DOGS SEEKING FOREVER HOMES TO EQUIP EXPOSITION LOUISVILLE, Ky. – The dogs are coming back! Lucky’s Mutt Madness, a national dog adoption event organized by the TurfMutt Foundation and held in partnership with the Ken- tucky Humane Society (KHS), will once again be held at Equip Exposition, the international landscape, outdoor living, and equipment exposition. The event will be held Thursday, Oct.

QUARTERLY REPORT October 2022

continues to “paw it forward” by inspiring kids and their fam- ilies to care for and spend time in their living landscapes, like their backyards, parks and other green spaces. “In the last few years over 40 dogs have found homes through Mutt Madness,” says Kris Kiser, President and CEO of the TurfMutt Foundation and the Outdoor Power Equipment Institute (OPEI), which owns Equip Exposition. “Nearly every dog available went home with an Expo attendee last year.” He hopes this track record will repeat again this year. At Lucky’s Mutt Madness, the TurfMutt Foundation will also donate a $10,000 check to the KHS to support their good work in animal rehabilitation, rescue, and adoption – an important part of TurfMutt from the beginning. “Equip Expo is bustling with energy – and that excitement will spill into Lucky’s Mutt Madness,” says Kiser. “For the dogs, Mutt Madness helps them find a home. For the landscapers, dealers, and manufacturers who attend Expo, adopting an animal friend fits with their outdoor life. After all, these are the people who create the outdoor spaces America relies on. And who appreciates the family yard, parks and other community green spaces more than a dog?”

EQUIP MAGAZINE PUBLISHES WITH RECORD SUPPORT equip magazine — the official publication of the international landscape, outdoor living, and equip- ment exposition — was published this fall, with distribution to an expand- ed circulation of 100,000 landscapers, dealers, hardscapers and con- struction professionals nationwide.

20, from 11 a.m. to 2 p.m. during Expo, at the Kentucky Exposi- tion Center (KEC) in Freedom Hall. Adding to the excitement and momentum of Lucky’s Mutt Madness, Equip Exposition is also holding Mulligan’s 5K Fun Run and Walk for its registrants. “We look forward to starting off Expo right with a little exer- cise before the trade show door opens,” says Kiser. “And the view is spectacular from the bridge where we’ll be running or walking. It’s not to be missed.” The event, sponsored by Ariens, steps off on Wednesday, Oct. 19, at 7 a.m. Participants can run, jog, or walk across the Ohio River over the famous Big Four pedestrian bridge before Expo’s door opens. Proceeds from the event benefit the KHS. Mulligan’s 5K Fun Run & Walk is named after Kiser’s rescue dog, Mutt Mulligan, who is the spokesdog for the TurfMutt Foundation and was adopted at Mutt Madness in 2019. She

This year marks the third run of the magazine, which gar- nered record advertising support from trade show exhibitors. Visit www.equipexposition.com to read this year’s issue and see everything the new trade show has to offer: What’s changed, what’s stayed the same, and why the industry needs to be in Louisville this October.

Outdoor Power Equipment Institute Market Statistics

OPEI RELEASES FALL FORECAST OPEI published its quarterly forecast update Oct. 3 for U.S. and Canadian shipments of OPE during calendar years 2022-2024. Reflective of the macroeco- nomic challenges that have surfaced during the current year, and successive quarters

of negative overall growth, 2022 will finish with depressed lev- els of industry shipments as compared to the prior two years of significant growth. OPEI forecasts are proposed by the association’s retained economist, with review and input provided by the member Forecast Advisory Subcommittee prior to final publication. Specific to forecasting changes planned for 2023, OPEI will begin publishing separate market projections for seated and stand-on commercial zero-turn lawnmowers, and battery- and A/C-powered products, where previously these catego- ries have been combined. Also new in 2023 will be separate forecasting for “split-boom” products from trimmers and brushcutters.

OPEI HOSTS 2022 MARKET STATISTICS FORUM The Outdoor Power Equipment Institute held its annual fall member Market Statistics Forum Sept. 28-29 at its offices in Alexandria, Virginia, showcasing a full agenda of invited guest speaker experts to share their views on the state of the global economy and OPE markets. This year’s event – sponsored by Huntington, Kohler, and Kawasaki Engines – combined returning speakers, new

voices, and data sources, includ- ing The Steven- son Company, European Garden Machinery Indus- try Federation, TraqLine (Steven-

INFLATION REDUCTION ACT INCLUDES ELECTRIC MOWER TAX CREDIT

In mid-August Congress passed and the president signed the $450 billion Inflation Reduction Act (IRA), which among its climate change mitigation tax provisions included credits for zero-emission “mobile machinery.” Included in the legislative record was Senate debate confirming congressional intent that the statutory language includes among the qualifying equipment commercial lawnmowers. The credit is available for sales beginning Jan. 1, 2023, and sunsets in 2032. The credit is for 30 percent of the cost of the equipment or the incremental cost of the comparable with a $7,500 cap. While the legislation outlines broad parameters and defi- nitions of qualifying equipment, it leaves many of the neces- sary details open for interpretation and clarification through subsequent regulation or “notice” by the U.S. Treasury/Inter- nal Revenue Service.

son), The Farnsworth Group, U.S. Chamber of Commerce, Weather Trends International, and Constellation Dealership Group. Also participating were two mid-Atlantic based commercial landscaping firms: Rossen Landscape and Level Green Land- scaping, who shared views and addressed questions specific to equipment needs in the field, including implementation of battery-powered OPE and the growing interest in automated products. OPEI is always interested in member input toward including new voices in such fora, and all the presentations shared at this year’s event are now generally available to OPEI mem- bers.

QUARTERLY REPORT October 2022

Also as background, the much larger “Build Back Better” legislation that preceded the IRA in 2021 and failed to pass Congress included a credit program for consumer purchase of electric on-road vehicles and commercial agricultural and heavy equipment, but no included credits applicable to “mobile machinery” and as such member products. On Sept. 26 OPEI staff, members, and representatives of the National Association of Landscape Professionals and North American Equipment Dealers Association, met with retained counsel to begin outlining key questions for clarification with Treasury, including industry recommendations.

celerate the purchase of zero-emissions off-road equipment in California. Dealers must register and complete a CORE training quiz to participate. Manufacturers must apply on a product-by-product basis to participate. Additional program information can be found at www.californiacore.org . TWO NEW MEMBERS JOIN OPEI The Outdoor Power Equipment Institute is pleased to wel- come Engineered Exhaust Systems, a designer and provider of engine exhaust systems and other components, and Sunseeker North America, a manufacturer of battery/electric and gas-engine outdoor power equipment, as its newest members. As the advocacy voice of the outdoor power equipment industry, OPEI membership is open to manufacturers and suppliers of a broad range of equipment and technologies. Members and new companies expanding their product offerings in the market are encouraged to learn more about the benefits of membership at www.opei.org/join or by contacting Chuck Bowen, Vice President, Communications and Member Relations, at cbowen@opei.org.

CALIFORNIA SORE RULEMAKING APPROVED BY STATE’S OFFICE OF ADMINISTRATIVE LAW On Aug. 2, the CARB Executive Office “adopted” the proposed Small Off-Road Engine (SORE) amendments and submitted the rule to the California Office of Administrative Law (OAL) for approval. The OAL approved the rule Sept. 14 and was en- dorsed by the Secretary of State the same day, which means the rule is ready to be implemented. The 717-page Final Statement of Reason (FSOR) was includ- ed in the Aug. 2 documents. The FSOR summarizes the rule and offers the agency’s responses to comments received during the rulemaking process. OPEI will prepare comments in response to CARB’s waiver request when the EPA public comment periods opens. The Clean Air Act (CAA) requires that CARB request from the EPA Administrator a waiver of the CAA state rules (and receive approval of the waiver) before new emission rules can be “enforced.” CARB OPENS ZERO-EMISSIONS EQUIPMENT REBATE PROGRAM REGISTRATION The California Air Resources Board has opened registration for dealers and manufacturers to participate in its Clean Off-Road Equipment Voucher Incentive Program (CORE). The CORE program will provide $27 million in incentive funding to eligible professional landscape services in California to ac-

OPEI STAFF AND MEM- BERS MEET WITH CPSC OPEI staff and with a delegation of member representatives met with U.S. Consumer Product Safety Commission Chair Al- exander Hoehn-Saric Oct. 5 at the agency offices in Bethesda, Maryland.

This meeting was originally requested by OPEI in 2021 to provide the new chair with an introduction to the industry, issues of priority to OPEI members, and assurance of the in- dustry’s prioritization and commitment to the mutual pursuit of consumer safety. The discussion covered a wide range of topics, including the importance of voluntary standards, potential safety concerns of “right to repair” policies, the agency’s secure handling of company information, cooperation on effective recalls, the timely sharing of data by the agency, and safety concerns related to counterfeit and some aftermarket parts. OPEI staff also extended an invitation for the chair to meet with the OPEI Board at its expected March meeting.

The TurfMutt Foundation and its spokesdog, Mulligan the TurfMutt, are dedicated to educating people on ways to cre- ate purposeful and environmentally-responsible living land- scapes that everyone, including pets and wildlife, can enjoy. It also supports animal rescue, rehabilitation and adoption, including sponsoring Lucky’s Mutt Madness in conjunction with the Kentucky Humane Society.

CANADA PROPOSES PLAS- TICS REGISTRY Environment and Climate Change

Canada is seeking implemen- tation comments for proposed Plastics Registry and Labeling initiatives. OPEI respects the Gov- ernment of Canada’s objective to reduce plastics ending up in the environment as plastics management is an ongoing topic amongst the recycling community. However, as filed in joint coalition comments, the introduc- tion of a plastics specific registry would only conflict with the principles of wholegood Extended Producer Responsibilities (EPR) by establishing an unnecessary registry that would du- plicate current EPR obligations and potentially add more cost to consumer products. OPEI Canada continues to advocate for harmonized EPR product models rather than individual components. OPEIC: BC STEWARDSHIP ACTIVITIES The OPEIC program stewardship renewal plan will be submit- ted in alignment with its service provider, CESA, whose sub- mission is scheduled for spring of 2023. Obligated stakeholder consultations will be conducted as early as February 2023 to best determine how to improve collection of electric outdoor power equipment at its end-of-life. CALIFORNIA ENACTS BATTERY RECYCLING MAN- DATES FOR OEMS California recently enacted battery recycling legislation. Be- ginning no later than April 1, 2027, producers of most batteries, including OPE Li-ion portable rechargeable batteries, will be required to be included in a state stewardship program (e.g., Call2Recycle) to recycle their batteries.

OPEI’S TURFMUTT FOUNDATION RENEWS PART- NERSHIP WITH CBS SHOWS ‘LUCKY DOG’ AND ‘MISSION: UNSTOPPABLE’ LOUISVILLE, Ky. – The Outdoor Power Equipment Insti- tute‘s TurfMutt Foundation is proud to announce a renewed partnership with “Mission: Unstoppable” and “Lucky Dog” on CBS. Both shows are produced by Hearst Media Production Group. Filming begins this fall at Lucky’s Mutt Madness, a national dog adoption event held during Equip Exposition, the interna- tional landscape, outdoor living and equipment exposition, in Louisville, Kentucky, Oct. 18-21. “We’re thrilled to be working again with ‘Mission: Unstop- pable’ and ‘Lucky Dog,’ and welcome them to Equip Expo- sition and Mutt Madness this year,” said Kris Kiser, President and CEO of the TurfMutt Foundation and the Outdoor Power Equipment Institute (OPEI), which owns Equip Exposition. “The energy and innovation in our industry are off the charts right now as America has renewed its commitment to out- door living over the last few years. Our mission to make that outdoor life easier and more powerful aligns well with both shows.”

QUARTERLY REPORT October 2022

proposed national adoptions include revisions to reflect requirements particular to the U.S. market and will replace the current 2017 editions of ANSI/OPEI B71.1 and B71.4 when published. This OPEI 5395 lawnmower standard committee has focused adoption efforts on harmonization of U.S. and global requirements, and assuring standards are reflective of product innovation and other global standards development. The new standards are expected to be published in 2023. OPEI Proposed Revisions to B71.9-2016 Multi-Purpose Off-Highway Utility Vehicles Standard OPEI is initiating a consensus body recirculation ballot for proposed revisions to the OPEI B71.9-2016 MOHUV standard. The B71.9 MOHUV Committee is proposing several substantive changes in response to comments received from the initial proposed revisions circulated for consensus body and public review in August. The revised standard is expected to be published this winter. OPEI Proposed Revisions to B175.1-2021 Chain Saw Standard OPEI has initiated a new project to make technical correc- tions to the B175.1-2021 chain saw standard. The consensus body and public review are expected to kick off this fall. The revised standard is expected to be published this winter.

In addition, embedded batteries sold within electronic devices will require a fee at the time of purchase starting Jan. 1, 2026, to ensure compliance under e-waste recycling programs. Efforts were made to exclude large format batteries (>300Wh). An OPEI-led joint working group is working with vendors and national retailers to address battery “take-back” programs in regulated/obligated states and create industry solutions from a national perspective. For more information or to join the Battery Electric Products Committee, contact Brandon Martin, Vice President of Battery/ Electric Products & Industry Affairs, at bmartin@opei.org.

DOE ISSUES FINAL RULE ON TEST PROCEDURE FOR BATTERY CHARGERS The U.S. Department of Energy issued a final rule for amending the existing test procedures for battery chargers with an effec- tive date of Oct. 11, 2022. Amendments to the current

test procedure will be mandatory for product testing start- ing March 7, 2023. Manufacturers will be required to use the amended test procedure in appendix Y until the compliance date of any final rule establishing amended energy conser- vation standards based on the newly established test proce- dure in appendix Y1. At such time, manufacturers will be required to begin using the newly established test procedure in appendix Y1. OPEI is working with previous joint commenters on any additional follow up options as it seems to ignore some major concerns that we collective submitted over the last few months. OPEI MOVES PROPOSED REVISED STANDARDS FORWARD FOR BALLOTING OPEI Proposed National Adoption of ISO 5395 Series Stan - dards for Lawnmowers OPEI is initiating the consensus body ballot for the proposed adoption of the three-part International Organization for Standardization (ISO) standard 5395 as new American National Standards Institute standards for lawnmowers, to include both walk-behind and riding lawnmowers. The

OPEI SEEKS STANDARDS DEVELOPMENT CONSENSUS BODY STAKEHOLDERS

OPEI is seeking stakeholders to participate on consensus bodies and U.S. Technical Advisory Groups for U.S. and international standards development activities. Contact Greg Knott, Vice President, Standards and Regulatory Affairs, at gknott@opei.org for information.

EQUIP EXPO TO HOST INTERNATIONAL STANDARDS MEETINGS

The Outdoor Power Equipment Institute, Equip Exposition, and ANSI will host the ISO TC 23/SC 17 committee during this year’s trade show. International delegations from the U.S., Brazil, Germany, Sweden, Italy, Belgium, Japan, and China are expected to attend this group, which convenes to produce and maintain product standards for a range of outdoor pow- er equipment. Working Group 4 will meet Oct. 18-19 to contin- ue development of chain saws and brush cutter standards. Subcommittee 17 will host its annual Plenary Meeting Oct. 20.

ISO TO MEET AT OPEI THIS DECEMBER International delegations will attend meetings of ISO TC 23 SC 13, Powered lawn and garden equipment, Dec. 12-14 at OPEI offices in Alexandria, Virginia. The committee specifically sets international standards for gas-powered lawnmowers (ISO 5395) and snow throwers (ISO 8437), and includes active participation and leadership from U.S.-based OPEI members, as well as delegates from other countries, including the U.K., Germany, Italy, Belgium, France, Sweden, and China. A particular matter of focus for discussion are new global requirements for autonomous large-form gas-powered lawn- mowers, particularly for commercial application. Also meeting Dec. 15-16 will be international delegations to ISO/IEC Joint Working Group 12, which combines the efforts of these two global standards bodies to adopt common new requirements for battery-powered riding lawnmowers.

proach, and it is creating unduly demands and cost demands on all producers – including OPE manufacturers. OPEI is developing an EPR position paper to encourage regulators to harmonize when possible and exclude industries when there are market driven systems already developed, or industries that properly manage end-of-life products such as OPE.

UPCOMING MEETINGS Oct. 18 – OPEI Board Meeting – Louisville, KY Oct. 18-21 – Equip Exposition – Louisville, KY

Oct. 19-21 – ISO TC 23/SC 17 – Equip Exposition – Louisville, KY Nov. 2 – OPEI member meeting with KMPG re: IRA tax credits – Alexandria, VA Dec. 8 – Market Statistics Committee Forecast Advisory Subcommittee Dec. 12-16 – ISO TC 23/SC 13 – Alexandria, VA March 2023 – OPEI Board Meeting – Alexandria, VA June 20-22, 2023 – OPEI Annual Meeting – Asheville, N.C.

OPEI/ANSI ROBOTIC MOWER STANDARD AMENDMENT PUBLISHED

ANSI/OPEI 60335-2-107-2020/Amd.2 – American National Standard for Household and Similar Electrical Appliances – Robotic Battery Powered Electrical Lawnmowers – Safety Specifications has been published and is available via the ANSI electronic standards store. This document specifies safety requirements and their verification for the design and construction of robotic battery powered electrical rotary lawnmowers and their peripherals with the rated voltage of the battery being not more than 75 V d.c. EMC and environmental aspects. For more information on OPEI’s robotic standard work, contact Brandon Martin, Vice President, Battery Electric Prod- ucts & Industry Affairs, at bmartin@opei.org. OPEI DEVELOPS INDUSTRY POSITION PAPER Extended Producer Responsibility (EPR) is an alternative recycling approach that shifts complete waste handling and processing obligation on producers, distributors, and retail- ers to manage the end-of-life collection of the products they produce. While this approach has proven successful in dealing with problem consumer products, not all materials are suited for inclusion in an EPR system. Regulations today are targeting specific aspects of products without a single harmonized ap-

Show site set up Equip Exposition Show Director Troy Winebrenner (right), “Lucky Dog” show runner Joel McGee, and Mulligan the TurfMutt visit the Kentucky Exposition Center in advance of the launch of the trade show.

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