This Document, Concerning The Energy Conservation Program .
This document, concerning the Energy Conservation Program for Certain IndustrialEquipment: Energy Conservation Standards for Small, Large, and Very Large Air-CooledCommercial Package Air Conditioning and Heating Equipment and Commercial WarmAir Furnaces is a rulemaking action issued by the Department of Energy. Though it is notintended or expected, should any discrepancy occur between the document posted hereand the document published in the Federal Register, the Federal Register publicationcontrols. This document is being made available through the Internet solely as a means tofacilitate the public's access to this document.”
[6450-01-P]DEPARTMENT OF ENERGY10 CFR Part 431[Docket Numbers EERE–2013–BT–STD–0007 and EERE–2013–BT–STD–0021]RIN: 1904–AC95 and 1904–AD11Energy Conservation Program for Certain Industrial Equipment: EnergyConservation Standards for Small, Large, and Very Large Air-Cooled CommercialPackage Air Conditioning and Heating Equipment and Commercial Warm AirFurnacesAGENCY: Office of Energy Efficiency and Renewable Energy, Department of Energy.ACTION: Direct final rule.SUMMARY: The Energy Policy and Conservation Act of 1975, as amended (EPCA),prescribes energy conservation standards for various consumer products and certaincommercial and industrial equipment, including small, large, and very large air-cooledcommercial package air conditioning and heating equipment and commercial warm airfurnaces. EPCA also requires that the U.S. Department of Energy (DOE) periodicallyreview and consider amending its standards for specified categories of industrialequipment, including commercial heating and air conditioning equipment, in order to1
determine whether more-stringent, amended standards would be technologically feasibleand economically justified, and save a significant additional amount of energy. In thisdirect final rule, DOE is amending the energy conservation standards for both small,large, and very large air-cooled commercial package air conditioning and heatingequipment and commercial warm air furnaces after determining that the amended energyconservation standards being adopted for these equipment would result in the significantconservation of energy and be technologically feasible and economically justified.DATES: The effective date of this rule is [INSERT DATE 120 DAYS AFTERPUBLICATION DATE] unless adverse comment is received by [INSERT 110 DAYSAFTER PUBLICATION DATE]. If adverse comments are received that DOEdetermines may provide a reasonable basis for withdrawal of the direct final rule, atimely withdrawl of this rule will be published in the Federal Register. If no suchadverse comments are received, compliance with the amended standards in this final rulewill be required for small, large, and very large air-cooled commercial package airconditioning and heating equipment listed in this final rule starting on January 1, 2018,for the first set of standards and January 1, 2023, for the second set of standards.Compliance with the amended standards established for commercial warm air furnaces inthis final rule is required starting on January 1, 2023.ADDRESSES: The dockets, which include Federal Register notices, public meetingattendee lists and transcripts, comments, and other supporting documents/materials, isavailable for review at www.regulations.gov. All documents in the dockets are listed in2
the www.regulations.gov index. However, some documents listed in the index, such asthose containing information that is exempt from public disclosure, may not be publiclyavailable.A link to the docket web page for small, large, and very large air-cooledcommercial package air conditioning and heating equipment can be found at:www.regulations.gov/#!docketDetail;D EERE-2013-BT-STD-0007. A link to thedocket web page for commercial warm air furnaces can be found at:www.regulations.gov/#!docketDetail;D EERE-2013-BT-STD-0021.Thewww.regulations.gov web page will contain instructions on how to access all documents,including public comments, in the docket.For further information on how to review the dockets, contact Ms. BrendaEdwards at (202) 586-2945 or by email: Brenda.Edwards@ee.doe.gov.FOR FURTHER INFORMATION CONTACT: Mr. John Cymbalsky, U.S.Department of Energy, Office of Energy Efficiency and Renewable Energy, BuildingTechnologies, EE-5B, 1000 Independence Avenue, SW., Washington, DC 20585-0121.Telephone: (202) 286-1692. E-mail: John.Cymbalsky@ee.doe.gov.Mr. Michael Kido, U.S. Department of Energy, Office of the General Counsel,GC-33, 1000 Independence Avenue, SW., Washington, DC 20585-0121. Telephone:(202) 586-8145. E-mail: Michael.Kido@hq.doe.gov.3
SUPPLEMENTARY INFORMATION:Table of ContentsI. Synopsis of the Direct Final RuleA. Benefits and Costs to Commercial ConsumersB. Impact on Manufacturers1. Commercial Unitary Air Conditioners and Heat Pumps2. Commercial Warm Air FurnacesC. National Benefits and Costs1. Small, Large, and Very Large Commercial Package Air Conditioning andHeating Equipment2. Commercial Warm Air Furnaces3. Small, Large, and Very Large Commercial Package Air Conditioning andHeating Equipment and Commercial Warm Air FurnacesD. ConclusionII. IntroductionA. AuthorityB. Background1. Current Standards2. History of Standards Rulemakingsa. Commercial Unitary Air Conditioners and Heat Pumpsb. Commercial Warm Air FurnacesIII. General DiscussionA. Combined RulemakingB. Consensus Agreement1. Background2. RecommendationsC. Compliance DatesD. Technological Feasibility1. General2. Maximum Technologically Feasible LevelsE. Energy Savings1. Determination of Savings2. Significance of SavingsF. Economic Justification1. Specific Criteriaa. Economic Impact on Manufacturers and Consumersb. Savings in Operating Costs Compared to Increase in Price (LCC and PBP)c. Energy Savingsd. Lessening of Utility or Performance of Equipmente. Impact of Any Lessening of Competitionf. Need for National Energy Conservationg. Other Factors4
2. Rebuttable PresumptionG. Energy Efficiency Descriptors for Commercial Unitary Air Conditioners and HeatPumps1. Cooling Efficiency Metric2. Heating Efficiency MetricH. Other Issues1. Economic Justification of the Proposed Standardsa. Small, Large, and Very Large Commercial Package Air Conditioning andHeating Equipmentb. Commercial Warm Air Furnacesc. Response2. ASHRAE 90.1 Process3. OtherIV. Methodology and Discussion of Related CommentsA. Market and Technology Assessment1. General2. Scope of Coverage and Equipment Classesa. Commercial Unitary Air Conditioners and Heat Pumpsb. Commercial Warm Air Furnaces3. Technology Optionsa. Commercial Unitary Air Conditioners and Heat Pumpsb. Commercial Warm Air FurnacesB. Screening Analysis1. Commercial Unitary Air Conditioners and Heat Pumps2. Commercial Warm Air FurnacesC. Engineering Analysis1. Methodology2. Efficiency Levelsa. Baseline Efficiency Levelsb. Incremental and Max-Tech Efficiency Levels3. Equipment Testing, Reverse Engineering and Energy Modelinga. Commercial Unitary Air Conditioners and Heat Pumpsb. Commercial Warm Air Furnaces4. Cost Estimation Process5. Manufacturing Production Costsa. Commercial Unitary Air Conditioners and Heat Pumpsb. Commercial Warm Air Furnaces6. Manufacturer Markup7. Shipping CostsD. Markups Analysis1. Distribution Channels2. Markups and Sales TaxE. Energy Use Analysis1. Small, Large, and Very Large Commercial Package Air Conditioning andHeating Equipmenta. Energy Use Simulations5
b. Generalized Building Sample2. Commercial Warm Air FurnacesF. Life-Cycle Cost and Payback Period Analysis1. Equipment Cost2. Installation Costa. Small, Large, and Very Large Commercial Package Air Conditioning andHeating Equipmentb. Commercial Warm Air Furnaces3. Annual Energy Consumption4. Energy Prices5. Maintenance and Repair Costs6. Equipment Lifetimea. Small, Large, and Very Large Commercial Package Air Conditioning andHeating Equipmentb. Commercial Warm Air Furnaces7. Discount Rates8. Efficiency Distribution in the No-New-Standards Casea. Small, Large, and Very Large Commercial Package Air Conditioning andHeating Equipmentb. Commercial Warm Air Furnaces9. Payback Period AnalysisG. Shipments Analysis1. Small, Large, and Very Large Commercial Package Air Conditioning andHeating Equipmenta. Shipments by Market Segmentb. Shipment Market Shares by Efficiency Level2. Commercial Warm Air Furnacesa. Impact of Standards on ShipmentsH. National Impact Analysis1. Equipment Efficiency Trends2. National Energy Savings3. Net Present Valuea. Total Annual Installed Costb. Total Annual Operating Cost Savingsc. Net BenefitI. Consumer Subgroup AnalysisJ. Manufacturer Impact Analysis1. Overview2. Government Regulatory Impact Modela. Government Regulatory Impact Model Key Inputsb. Government Regulatory Impact Model Scenarios3. Discussion of Commentsa. Employment Impacts on CUAC/CUHP Manufacturersb. Conversion Costs related to CUACs/CUHPsc. Small Business Impacts on CWAF ManufacturersK. Emissions Analysis6
L. Monetizing Carbon Dioxide and Other Emissions Impacts1. Social Cost of Carbona. Monetizing Carbon Dioxide Emissionsb. Development of Social Cost of Carbon Valuesc. Current Approach and Key Assumptions2. Social Cost of Other Air PollutantsM. Utility Impact AnalysisN. Employment Impact AnalysisV. Analytical Results and ConclusionsA. Trial Standard LevelsB. Economic Justification and Energy Savings1. Economic Impacts on Individual Commercial Consumersa. Life-Cycle Cost and Payback Periodb. Consumer Subgroup Analysisc. Rebuttable Presumption Payback2. Economic Impacts on Manufacturersa. Industry Cash-Flow Analysis Resultsb. Impacts on Employmentc. Impacts on Manufacturing Capacityd. Impacts on Subgroups of Manufacturerse. Cumulative Regulatory Burden3. National Impact Analysisa. Significance of Energy Savingsb. Net Present Value of Commercial Consumer Costs and Benefitsc. Indirect Impacts on Employment4. Impact on Utility or Performance of Equipment5. Impact of Any Lessening of Competition6. Need of the Nation to Conserve Energy7. Other Factors8. Summary of National Economic ImpactsC. Conclusion1. Benefits and Burdens of TSLs Considered for Small, Large, and Very Large AirCooled Commercial Package Air Conditioning and Heating Equipment2. Benefits and Burdens of TSLs Considered for Commercial Warm Air FurnacesVI. Procedural Issues and Regulatory ReviewA. Review Under Executive Orders 12866 and 13563B. Review Under the Regulatory Flexibility Act1. Commercial Unitary Air Conditioners and Heat Pumpsa. Description of Estimated Number of Small Entities Regulatedb. Description and Estimate of Compliance Requirements2. Commercial Warm Air Furnacesa. Description of Estimated Number of Small Entities Regulated3. Duplication, Overlap, and Conflict with Other Rules and Regulations4. Significant Alternatives to the RuleC. Review Under the Paperwork Reduction ActD. Review Under the National Environmental Policy Act of 19697
E. Review Under Executive Order 13132F. Review Under Executive Order 12988G. Review Under the Unfunded Mandates Reform Act of 1995H. Review Under the Treasury and General Government Appropriations Act, 1999I. Review Under Executive Order 12630J. Review Under the Treasury and General Government Appropriations Act, 2001K. Review Under Executive Order 13211L. Review Under the Information Quality Bulletin for Peer ReviewM. Congressional NotificationVII. Approval of the Office of the SecretaryI. Synopsis of the Direct Final RuleTitle III, Part C1 of the Energy Policy and Conservation Act of 1975 (EPCA or theAct), Pub. L. 94-163 (December 22, 1975), coupled with Section 441(a) Title IV of theNational Energy Conservation Policy Act, Public Law 95-619 (November 9, 1978),(collectively codified at 42 U.S.C. 6311-6317), established the Energy ConservationProgram for Certain Industrial Equipment, which includes the small, large, and very largeair-cooled commercial package air conditioning and heating equipment and commercialwarm air furnaces ("CWAFs") that are the subject of this rulemaking.2 The former groupof equipment (i.e. air-cooled commercial package air conditioning and heatingequipment) is referred to herein as air-cooled commercial unitary air conditioners andheat pumps ("CUACs" and "CUHPs").DOE received a statement submitted jointly by interested persons that are fairlyrepresentative of relevant points of view (including representatives of manufacturers ofthe covered equipment at issue, States, and efficiency advocates) containing1For editorial reasons, upon codification in the U.S. Code, Part C was re-designated Part A-1.All references to EPCA in this document refer to the statute as amended through the Energy EfficiencyImprovement Act of 2015, Public Law 114-11 (April 30, 2015).28
recommendations with respect to energy conservation standards for the above equipment(see section III.B for description of the jointly-submitted statement). DOE hasdetermined that the recommended standards contained in that jointly-submitted statementare in accordance with 42 U.S.C. 6313(a)(6)(B), which prescribes the conditions foradoption of a uniform national standard more stringent than the applicable levelsprescribed by ASHRAE/IES Standard 90.1 for the above equipment. (The acronym"ASHRAE/IES" stands for the American Society of Heating, Refrigerating, and AirConditioning Engineers/Illuminating Engineering Society.) Under the authority providedby 42 U.S.C. 6295(p)(4) and 6316(b)(1), DOE is issuing this direct final rule establishingamended energy conservation standards for CUACs, CUHPs, and CWAFs.The amended minimum standards for CUACs and CUHPs are shown in Table I-1,with the CUAC and CUHP cooling efficiency standards presented in terms of anintegrated energy efficiency ratio ("IEER") and the CUHP heating efficiency standardspresented as a coefficient of performance ("COP"). The IEER metric would replace thecurrently used energy efficiency ratio ("EER") metric on which DOE's standards arecurrently based. The standards will adopt ASHRAE 90.1-2013 efficiency levels in 2018and a higher level in 2023 as recommended by the ASRAC Working Group. Thestandards contained in the recommendations apply to all equipment listed in Table I-1manufactured in, or imported into, the United States starting on the dates shown in thattable.9
Table I-1. Amended Energy Conservation Standards for Small, Large, and VeryLarge Commercial Package Air Conditioning and Heating EquipmentEquipment TypeACSmall CommercialPackaged AC and HP (AirCooled) – 65,000 Btu/hand 135,000 Btu/hCooling ce DateElectric ResistanceHeating or NoHeating12.9 IEER14.8 IEERJanuary 1, 2018January 1, 2023All Other Types ofHeating12.7 IEER14.6 IEERJanuary 1, 2018January 1, 202312.2 IEER3.3 COPJanuary 1, 201814.1 IEER3.4 COPJanuary 1, 202312.0 IEER3.3 COPJanuary 1, 201813.9 IEER3.4 COPJanuary 1, 2023Electric ResistanceHeating or NoHeating12.4 IEER14.2 IEERJanuary 1, 2018January 1, 2023All Other Types ofHeating12.2 IEER14.0 IEERJanuary 1, 2018January 1, 202311.6 IEER3.2 COPJanuary 1, 201813.5 IEER3.3 COPJanuary 1, 202311.4 IEER3.2 COPJanuary 1, 201813.3 IEER3.3 COPJanuary 1, 2023Electric ResistanceHeating or NoHeating11.6 IEER13.2 IEERJanuary 1, 2018January 1, 2023All Other Types ofHeating11.4 IEER13.0 IEERJanuary 1, 2018January 1, 2023Electric Resistance10.6 IEERJanuary 1, 2018Heating TypeElectric ResistanceHeating or NoHeatingHPAll Other Types ofHeatingACLarge CommercialPackaged AC and HP (AirCooled) – 135,000 Btu/hand 240,000 Btu/hCooling CapacityElectric ResistanceHeating or NoHeatingHPAll Other Types ofHeatingVery Large CommercialPackaged AC and HP (AirACCooled) – 240,000 Btu/hand 760,000 Btu/hCooling CapacityHP10
Equipment TypeHeating TypeHeating or NoHeatingProposedEnergyConservationStandard3.2 COP12.5 IEER3.2 COPAll Other Types ofHeatingCompliance DateJanuary 1, 202310.4 IEER3.2 COPJanuary 1, 201812.3 IEER3.2 COPJanuary 1, 2023For CWAFs, the amended standards, which prescribe the minimum allowablethermal efficiency ("TE"), are shown in Table I-2. These standards apply to allequipment listed in Table I-2 manufactured in, or imported into, the United States startingon January 1, 2023.Table I-2. Energy Conservation Standards for Commercial Warm Air FurnacesInput Capacity*Equipment ClassThermal Efficiency**(Btu/h)Gas-Fired Furnaces 225,000 Btu/h81%Oil-Fired Furnaces 225,000 Btu/h82%* In addition to being defined by input capacity, a CWAF is “a self-contained oil- or gas-fired furnacedesigned to supply heated air through ducts to spaces that require it and includes combination warm airfurnace/electric air conditioning units but does not include unit heaters and duct furnaces.” CWAFscoverage is further discussed in section IV.A.2, “Scope of Coverage and Equipment Classes.”**Thermal efficiency is at the maximum rated capacity (rated maximum input), and is determined using theDOE test procedure specified at 10 CFR 431.76.A. Benefits and Costs to Commercial ConsumersTable I-3 presents DOE’s evaluation of the economic impacts of the energyconservation standards on commercial consumers of CUACs and CUHPs, as measured11
by the average life-cycle cost ("LCC") savings and the payback period ("PBP").3 Theaverage LCC savings are positive for all equipment classes, and the PBP is less than theaverage lifetime of the equipment, which is estimated to be 22 years (see section IV.F.6).Table I-3. Impacts of Amended Energy Conservation Standards on CommercialConsumers of Small, Large, and Very Large Commercial Package Air Conditioningand Heating EquipmentAverage LCC SavingsEquipment ClassPayback Period (years)(2014 )Small CUACs 10413.4Large CUACs 2,3361.9Very Large CUACs 2,4686.2Table I-4 presents DOE’s evaluation of the economic impacts of the energyconservation standards on commercial consumers of CWAFs, as measured by the averageLCC savings and the PBP. The average LCC savings are positive for both equipmentclasses, and the PBP is less than the average lifetime of the equipment, which isestimated to be 23 years for both gas-fired and oil-fired CWAFs (see section IV.F.6).Table I-4. Impacts of Amended Energy Conservation Standards on CommercialConsumers of Commercial Warm Air FurnacesAverage LCC Savings Simple Payback PeriodEquipment Class(2014 )(years)Gas-Fired CWAFsOil-Fired CWAFs28440031.41.9The average LCC savings are measured relative to the efficiency distribution in the no-new-standardscase, which depicts the market in the compliance year in the absence of standards (see section IV.F.8). Thesimple PBP, which is designed to compare specific CWAF efficiency levels, is measured relative to thebaseline model (see section IV.C.2.a).12
DOE’s analysis of the impacts of the adopted standards on commercial consumersof CUACs/CUHPs and CWAFs is described in section IV.F of this document.B. Impact on Manufacturers1. Commercial Unitary Air Conditioners and Heat PumpsThe industry net present value ("INPV") is the sum of the discounted cash flowsto the industry from the base year through the end of the analysis period (2015 to 2048).Using a real discount rate of 6.2 percent, DOE estimates that the INPV for CUAC/CUHPmanufacturers is 1,638.2 million in 2014 . Under the standards adopted in this directfinal rule, DOE expects INPV may change approximately -26.8 percent to -2.3 percent,which corresponds to approximately - 440.4 million and - 38.5 million in 2014 . Inorder to bring equipment into compliance with the standards adopted in this direct finalrule, DOE expects the industry to incur 520.8 million in total conversion costs.2. Commercial Warm Air FurnacesAs indicated above, the INPV is the sum of the discounted cash flows to theindustry from the base year through the end of the analysis period (2015 to 2048). Usinga real discount rate of 8.9 percent, DOE estimates that the INPV for CWAFmanufacturers is 96.3 million in 2014 . Under the standards adopted in this direct finalrule, DOE expects INPV may be reduced by appro
AGENCY: Office of Energy Efficiency and Renewable Energy, Department of Energy. ACTION: Direct final rule. SUMMARY: The Energy Policy and Conservation Act of 1975, as amended (EPCA), prescribes energy conservation standards for various consumer products and certain commercial and industrial equipment, including small, large, and very large air .
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