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

QUARTERLY REPORTMarch 2020

PRESIDENT’S MESSAGE With the world’s attention focused on the spread of the coro-navirus and its impact on individuals, manufacturers, and the global economy, I want to assure you that OPEI remains open for business, and is taking steps to maintain the safety of mem-bers, staff, and our vendors. OPEI has members across the globe, including in China, Japan, Europe, and here in the United States, and we have made our ongoing work as accessible as possible, providing web and phone access for all scheduled committee and task force meetings. Our international tradeshow, GIE+EXPO, is currently sched-uled to proceed as planned in Louisville, KY, Oct. 21-23. OPEI staff have been instructed to work remotely, and can be reached directly via email and phone. For full contact details, visit www.opei.org/contact. We encourage members to consult guidance from the Centers for Disease Control and Department of Labor for best practices in responding to the coronavirus at their facilities. It’s a challenging time for the industry, but business goes on, and the business of the association goes on. – Kris Kiser

New TurfMutt Foundation spokesdog, Mutt Mulligan, at her first photo shoot at the Foundation’s headquarters. She’s a natural.

GIE+EXPO 2020 is open for business, registration opens in AprilOver the last few weeks, coronavirus have become a global topic of concern. OPEI understands these concerns may be on the minds of individuals who plan to attend GIE+EXPO. OPEI’s annual international tradeshow, GIE+EXPO, is set for Oct. 21-23 in Louisville, KY, and is currently scheduled to proceed as planned, predicated on guidance from the Cen-ters for Disease Control. “GIE+EXPO and the industry are open for business,” said Kris Kiser, President of OPEI. “Manufacturers continue to produce, and continue to ship products. Retail is open, and the grass is greening up. Manufacturers have adjusted and adapted to the short-term situation, taking key steps to enhance employee safety while ensuring landscape con-tractors, outdoor power equipment dealers, retailers, and homeowners have access to the equipment they need.” OPEI will continue to monitor and heed health profes-sional advice and updates from the Centers for Disease Control and Prevention and World Health Organization regarding the coronavirus. The association and show man-

agement will follow the guidelines from these agencies and local health departments, and will make any necessary modifications to our event schedule as needed to ensure the health and safety of everyone involved. “Normally at this time we’re discussing how to prepare for spring sales and the growing landscape, but this spring our members are facing a new challenge. It’s an uncertain time, and our industry is challenged by unforeseen circum-stances,” Kiser said. “GIE+EXPO is the place the industry comes together to best address its common challenges, and we look forward to another outstanding event in Louis-ville this fall.” OPEI’s top priority remains the health and safety of all participants at our events, including attendees, exhibitors, staff, industry partners and others in this rapidly evolving situation. We encourage our members to follow the travel restrictions in place at their origin and destination, and practice preventative measures such as those outlined by the World Health Organization. We will continue to monitor this situation and update our membership via the OPEI and GIE+EXPO websites as necessary.

GIE+EXPO 2019 hosted in-tree training in Freedom Hall, giving attendees an opportunity to learn both introductory and advanced arborist skills from the Women’s Tree Climbing Work-shop. The 2020 show will feature more trees, a UTV test track, and hands-on drone training.

QUARTERLY REPORTMarch 2020

equip 2020 plan-ning underwayequip — the official publication of the international landscape, outdoor living, and equipment exposition GIE+EXPO — is gearing up for 2020. The 2020 edition will be distributed to more than 150,000 landscap-ers, dealers, hardscap-ers and construction professionals across the country. To make sure you receive it, visit www.gie-expo.com/equip and sign up. Ad sales are currently underway. To advertise in the official show publication, contact Jackie Bessette at jackie@gie-expo.com or 703-728-7589.

OPEI hosts CPSC chair, other key partners at Alexandria headquarters Robert Adler, chairman of the Consumer Product Safety Commission, spoke to a gathering of OPEI members at the association’s headquarters building in March in advance of a regular meeting of the Legal and Regulatory Compliance Committee. Chairman Adler gave insight into areas of focus and the Commission’s goals as they relate to the OPE industry for 2020, including product recalls, voluntary safety standards, and other areas. The visit continues a long history of engagement be-

tween OPEI and the commission — past Acting Chair Ann Marie Buerkle visited both OPEI and GIE+EXPO during her term and provided similar insight into the agency’s priori-ties — and the association looks forward to continuing that good working relationship with the agency. OPEI regularly hosts guests from key partner associa-tions, agencies, and other groups. In early March, the asso-ciation hosted Dr. Chad Moutray, chief economist for the National Association of Manufacturers. Dr. Moutray shared his insight into the domestic and international manufac-turing economy, including the on-going impacts of trade, coronavirus and labor shortages on short- and long-term economic health. In November, OPEI hosted the working groups of the IEC Technical Committee 116. The committee focuses on the preparation of international safety standards for battery and electric motor operated tools. And in spring 2021, the asso-ciation will host the next International Internal Combustion Engine Manufacturers Association’s Annual Meeting.

OPEI launches inter-active market data platform, expands categories New interactive market report features have been added to the OPEI Market Statistics pro-gram. The new reports allow members to view, analyze, and download the standard monthly market statistics data in various ways. These dashboards were designed by OPEI members and chosen as the baseline for the market statistics system. Detailed information regarding their purpose and intended usage is available on the Dashboard page. With the beginning of model year 2020, OPEI will expand its market statistics program in several key new categories. New products include gas and electric pressure washers, robotic mowers, battery-powered ride-on mowers, and — for the first time — separate categories for stand-on and seated commercial zero-turn mowers. Discussions contin-ue for further product additions to the program, including portable generators.

The national landscape, outdoor living, and equipment exposition.

I S S U E O N E

2019 GIE+EXPO Preview

In-Tree Training

Mutt Madness

FutureForecast

Outdoor Power Equipment InstituteMarket Statistics

OPEI advocates for E15 educationIn February, OPEI staff along with other allied industry rep-resentatives met with EPA officials to discuss the agency’s plans to facilitate the increased sale of gasoline containing 15% ethanol (E15) at U.S. filling stations. Last summer EPA moved to rescind seasonal restrictions on the sale of the fuel in a dozen states, formerly in place to mitigate ozone impacts, fulfilling an administration commit-ment to expand the availability of E15 by executive action. Moving forward, as EPA considers its statutory annual rulemaking process to potentially further increase biofuels as a percentage of the fuel market, the agency is interested in hearing from stakeholders about potential risks, includ-ing misfueling. OPEI has consistently urged the agency to include in its rulemakings new provisions to mitigate misfueling, which it has full authority and obligation to do under the Clean Air Act. The industry has advocated for improved and more consistent pump labeling and signage, dedicated pumps for E10 or less choices, and robust consumer education.

New poll shows consumers are confused about fuel product offeringsConsumers remain confused about the multiple fuel prod-uct offerings in the marketplace, says a new study commis-sioned by the OPEI and conducted online by The Harris Poll among over 3,000 U.S. adults. The study, which has been

conducted annually for seven years, shows lack of educa-tion, inadequate labeling and dangerous marketing tactics around new fuel products, such as higher ethanol-blended gasoline, are likely causing consumers to misfuel. The study found that more than one in five outdoor pow-er equipment owners are currently mis-fueling and one quarter have done so in the past. The study found that nearly two in five Americans (37 percent, up from 33 percent in 2019, 31 percent in 2017 and 2016, and 30 percent in 2015) mistakenly believe that higher ethanol blends of gasoline are safe to use for any gasoline-powered lawn equipment or other small engine products, such as boats or snowmobiles. Read the report at www.lookbeforeyoupump.com.

OPEI begins work with federal battery advisory committeeThe U.S. Department of Transportation advisory committee kicked off safety discussions in January to evaluate the next steps in implementing or enforcing requirements relating to the safe transportation of shipments of lithium ion cells and batteries. OPEI’s Brandon Martin, Director of Battery and Electric Products & Industry Affairs, sits on this committee. The committee’s work currently focuses on regulation and standard gap analysis, supply chain safety and integ-rity, and hazard mitigation review. OPEI will continue to support this committee and efforts. The next public meeting is scheduled for Sept. 15-16.

OPEI Canada continues engagement on prod-uct recyclingThe Outdoor Power Equipment Institute of Canada (OPEIC) met with the British Columbia Minis-try of Environment and Climate Change (MoECC) regarding its recently received preliminary stewardship decision letter. As an Extended Producer Responsibility (EPR) program, OPEIC and its members have outlined a multi-year project to work toward practical solutions for future end-of-life management of electric outdoor power equipment. The MoECC is providing additional suggestions for OPEIC

QUARTERLY REPORTMarch 2020

to consider and OPEIC is working diligently to ensure the requirements are met. Satisfying any regulatory require-ments is OPEIC’s goal and looks forward to receiving a stewardship plan approval. Members with questions about these efforts can contact Brandon Martin, Director of Battery and Electric Products & Industry Affairs, at bmartin@opei.org.

OPEI cancels Annual Meeting in San JuanOut of an abundance of caution, the Outdoor Power Equip-ment Institute has decided to cancel its 68th Annual Meet-ing, which had been scheduled to take place in San Juan, Puerto Rico, June 16-18. OPEI is working with our partners to establish programming for the 2021 Annual Meeting. More details will be released as they become available.

OPEI calls for additional H-2B visasOn March 5 the U.S. Department of Homeland Security (DHS) belatedly announced its intent to issue an additional 35,000 H-2B visas this year, above the 66,000 allowed un-der current law. This action comes months after Congress authorized their release in last year’s 2020 appropriations legislation to address the acute seasonal workforce needs of U.S. businesses, in light of record low unemployment and H-2B visa applications. Complicating the recent announcement was the ad-ministration’s inclusion of various new requirements and conditions, including incremental visa availability and specific requirements on the country of origin of workers. OPEI has long been a member of the Washington-based H-2B Workforce Coalition, which advocated for last year’s congressional authorization, and immediately called on DHS to expedite visa processing and consider coalition recommendations to minimize further delays. OPEI also joined with the National Association of Land-scape Professionals in a January letter to the White House, highlighting the importance of seasonal employees and the H-2B program to support the continued growth of U.S. OPE manufacturers and commercial landscapers.

Post-USMCA, trade focus turns to other global marketsOPEI and the broader business community applauded the

January ratification of the new U.S. Mexico Canada Agree-ment by the U.S. government. With this new modernization of NAFTA set to enter into force as early as this summer, the business community is now most focused on improving U.S. trade relations with China, and reaching an optimum U.S. outcome with respect to the United Kingdom’s depar-ture from the European Union. Following January’s announcement of the “Phase 1” agreement with China, there is guarded optimism that there may be some verifiable actions taken by China to correct for its illegal practices, which combined with additional ne-gotiation may allow for a de-escalation of tariffs. In Europe, the U.K. is now in the post-Brexit “transition” period, giving London until Dec. 31 to finalize the terms of its departure.

CARB seeks further emissions reductions CARB continues rulemaking related activity focused on reducing the SORE fleet emissions by 80 percent or greater by 2031. CARB has proposed to end spark-ignition engine sales sometime before 2031 in order to achieve maximum emission inventory reductions from the SORE category. In December OPEI filed comments regarding CARB’s solicitation for strategies to achieve emission reduction goals, noting that an updated emission inventory model and technology feasibility study is necessary to develop strategy proposals. CARB is planning to host emission inventory and proposed rule workshops sometime this year, and to present the rule to the Board in September. OPEI’s Engine and Fuels Com-mittee will continue to monitor the rulemaking activity and collaborate with CARB as opportunities are presented. Separately, CARB is looking to recover an estimated $49 million in mobile source certification and compliance relat-ed costs through a new certification fee program. At a February workshop the agency estimated 2022 cer-tification fees of $2,600 for SORE exhaust, $1,100 for SORE evaporative, $4,800 for SORE fuel system components and $3,400 for electric golf cars. These fees exceed current EPA 50-state fees by a factor of 2 to 10 times.

OPEI is concerned the proposed fee structure will have a considerable impact on manufacturer and end-user costs for outdoor power equipment in the state. OPEI’s Engine & Fuels and Legal & Regulatory Compliance committees will continue to collaborate with the agency as additional information is available.

OPE sector steps up advocacy on ‘Right to Repair’ nationwideOPEI and its members have been educating state legisla-tors and consumers since 2018 about the risks of unsafe modifications to industry products if so-called “right to repair” bills become state law. While advocates against these measures have been successful to-date in preventing passage in any state, in 2020 OPEI joined 25 other product OEM and user sectors to found the Coalition Opposed to Illegal Tampering to further reinforce the message that the “right to repair” is not the right to modify. Early in legislative sessions this year, some 12 states have introduced bills, with several including Virginia and Maine already holding hearings. In both of these cases, coalition testimony resulted in the legislation being tabled for the year. Additionally, several OPEI members have hosted de-mo-events for legislators to expose them to the safety impacts to equipment controls when digital codes and software are improperly modified. For more information visit www.opei.org/right-repair-solutions.

Standards developmentAre you interested in participating in the development of U.S. and international OPE standards? OPEI is seeking

“user” and “general interest” stakeholders to participate on consensus bodies and U.S. Technical Advisory Groups for standards development. Contact Greg Knott, Vice President of Standards and Regulatory Affairs, at gknott@opei.org for information on how you can get involved.

Standards updates ANSI/OPEI 60335-2-107-2020 (Standard) for Outdoor Pow-er Equipment - Household and similar electrical appliances - Safety - Part 2-107: Particular requirements for robotic bat-tery powered electrical lawnmowers (national adoption with modifications of IEC 60335-2-107) was approved Sept. 5, 2019, and published Jan. 31, 2020. The standard was developed through a public input pro-cess that brings together consumers, manufacturers and commercial equipment users. WorkSafe BC recently published proposed amendments to Part 16, Mobile Equipment that include new ROPS and 3-point seat belt provisions for outdoor power equipment and vehicles used in the workplace. While the require-ments generally align with OPEI B71.9-2016 utility vehicle standard requirements, requirements for turf care equip-ment and low-speed vehicles (golf cars and PTVs) may significantly conflict with today’s standard requirements and market offerings. OPEI met with WorkSafe BC in November discuss con-cerns with the proposed rule and subsequently filed formal comments highlighting industry concerns with the pro-posed amendments. OPEI Ground Supported Products and vehicles committees will continue to monitor the rulemak-ing activity. In February OPEI filed public notifications with the Ameri-can National Standards Institute signaling the U.S. industry’s intent to adopt modified versions of the current interna-tional lawn mower standards (e.g., ISO 5395) to replace the current ANSI standards (e.g., ANSI/OPEI B71.1 and ANSI/OPEI B71.4). This effort is intended to make considerable progress towards harmonization with all relevant inter-national standards (ISO and IEC), and develop new global requirements for product innovations such as electrifica-tion and automation. B175.1 Internal Combustion Engine-Powered Hand-Held Chain Saws is being prepared for the public and consensus

QUARTERLY REPORTMarch 2020

body (canvass) review. OPEI is seeking “user” and “general interest” stakeholders to participate on the consensus body. The standard is expected to be published summer of 2020. B175.2 Internal Combustion Engine-Powered Hand-Held and Backpack Blowers and Blower-Vacuums – Safety Requirements and Performance Testing Procedures 2012 was reaffirmed for 2019. The reaffirmation process was approved by ANSI on Sept. 9, 2019 and the standard was published on Feb. 11, 2020. B175.3 Internal Combustion Engine-Powered Hand- Held Grass Trimmers/Brushcutters public and consensus body (canvass) review has been completed. The standard devel-opment process was approved by ANSI on Dec. 5. ANSI is currently preparing the standard for publication. B175.3-2019 Internal Combustion Engine-Powered Hand- Held Grass Trimmers/Brushcutters public and consensus body (canvass) review has been completed. The standard development process was approved by ANSI on Dec. 5, 2019 and the standard was published on March 5, 2020. Z130 Golf Car and Z135 Personal Transport Vehicles standards public and consensus body (canvass) review have been completed. The standards are expected to be published this spring. U.S. delegates to ISO TC23/SC17 Working Group 4, Safety, participated in meetings in February in Gross-Umstadt, Germany, to continue development of international chain saw and grass trimmer/brushcutter standards. OPEI will host ISO TC23/SC17, Manually Portable Forestry Machinery, and work groups at 2020 GIE+EXPO in October.

Upcoming meetings March 17, 2020 – Engine & Fuels Committee March 17-18, 2020 – Board of Directors April 15-17, 2020 – Engine and Fuels, Handheld Products, and B175 committees, and U.S. TAG to ISO TC23/SC17 April 21, 2020 – Z130/Z135 Golf Car and Personal Transport Vehicle Committee May 19-20, 2020 – Lawn Mower and Commercial Turf Care committees Sept. 9, 2020 – Market Statistics Committee Forecast Advi-sory Subcommittee – OPEI Office – Alexandria, VASept. 22-23 – Market Statistics Committee and Subcommit-tees – OPEI Office – Alexandria, VA

Sept. 24 – Market Statistics Forum – OPEI Office – Alexan-dria, VAOct. 7 – Legal & Regulatory Compliance Committee – OPEI Office – Alexandria, VAOct. 20-21, 2020 – Board of Directors – Louisville, KYOct. 20-22, 2020 – OPEI/ISO meetings – Louisville, KYOct. 21-23, 2020 – GIE+EXPO – Louisville, KYJune 22-24, 2021 – OPEI Annual Meeting – Kohler, WI

Staff contacts OPEI remains open for business, and association staff are working to make ongoing meetings accessible with online and phone connectivity. Members are encouraged to reach out directly to staff with questions or needs during this time at the phone numbers or emails listed below:

• Kris Kiser, President and CEO kkiser@opei.org; 703-549-7600• Chuck Bowen, Director, Communications and Member Relations cbowen@opei.org; 703-678-2988• Heather Heishman, Office Manager hheishman@opei.org; 703-549-7600• Greg Knott, Vice President, Standards and Regulatory Affairs gknott@opei.org; 703-678-2992• Brandon Martin Director, Battery and Electric Products & Industry Affairs bmartin@ope.org; 703-678-2995• Dan Mustico Vice President, Government and Market Affairs dmustico@opei.org; 703-678-2990• Jennifer O’Boyle, Database Manager joboyle@opei.org; 703-678-2991• Marla Popkin, Director, Meetings mpopkin@opei.org; 703-549-7600• Suzanne Shomers Vice President, Finance and Administration sshomers@opei.org; 703-678-2986

Mutt Mulligan (left) heads off to another meeting at the OPEI and TurfMutt Foundation headquarters building in Alexandria, VA.

Meet Mulligan, the new voice for TurfMuttThe TurfMutt Foundation has a new spokesdog. Mulligan, a mixed breed rescue adopted at Lucky’s Mutt Madness during GIE+EXPO 2019, fills the cape left behind by Lucky the Turf-Mutt, who recently passed away at the TurfMutt Foundation offices after serving as the organization’s superhero voice for a decade. Lucky’s Mutt Madness, a national dog adoption event held annually during GIE+EXPO, offers show attendees the chance to take home their own four-legged companion. Mulligan and 14 other dogs were adopted at the event. The Kentucky Humane Society (KHS) and GIE+EXPO partner with the TurfMutt Foundation on Lucky’s Mutt Madness. The TurfMutt Foundation promotes environmental stew-ardship and its program has inspired millions of kids, families and teachers to become backyard superheroes bycreating and sustaining suburban and urban habitat, parks, sports fields, and other green spaces. “Adopting a younger dog was a change for me, but I’m thrilled to bring Mulligan home as the new spokesdog for the TurfMutt Foundation. She has big paw prints to fill after Lucky’s ten years as TurfMutt, who had an extraordinary

run,” says Kiser. “We still have a lot of work to do in the years to come as we educate students and families about the benefits offered by our green spaces and how to care for them.” Mulligan marks a new page in the TurfMutt platform, which grew from a youth education program launched in 2009 in a handful of Sacramento and Washington, D.C., schools to reach 70 million students, teachers, and families through its education partners Weekly Reader, Discovery Education, and Scholastic, as well as internationally with the United States Green Building Council’s Global Learning Lab. During the program’s decade of outreach, the message has remained the same: Nature starts at your backdoor, and everyone can help save the planet, one yard at a time, starting with their own. “As adults, we want kids to grow up to care for the envi-ronment and to appreciate the green spaces around them. Delivering a message about environmental stewardship through a dog’s eyes helps because who enjoys your back yard the most? It’s often our pets and children,” Kiser says. “And we now know how important our managed green spaces are for stress and anxiety relief.”