[Federal Register Volume 65, Number 41 (Wednesday, March 1, 2000)]
[Proposed Rules]
[Pages 10984-10988]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-4738]


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DEPARTMENT OF ENERGY

Office of Energy Efficiency and Renewable Energy

10 CFR Part 431

[Docket No. EE-RM-STD-00-100]
RIN No. 1904-AB06


Energy Efficiency Program for Commercial and Industrial 
Equipment: Efficiency Standards for Commercial Heating, Air 
Conditioning and Water Heating Equipment

AGENCY: Office of Energy Efficiency and Renewable Energy, Department of 
Energy.

ACTION: Notice of preliminary screening analysis.

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SUMMARY: The Energy Policy and Conservation Act, as amended by the 
Energy Policy Act of 1992 (EPCA), establishes energy efficiency 
standards for certain commercial heating, air conditioning and water 
heating

[[Page 10985]]

equipment. On October 29, 1999, the efficiency standards in American 
Society of Heating, Refrigerating and Air-Conditioning Engineers, Inc. 
(ASHRAE) and Illuminating Engineering Society of North America (IES) 
ASHRAE/IES Standard 90.1 were amended for some of these products. This 
notice outlines the process the Department plans to follow in deciding 
which of these amended efficiency standards to adopt immediately and 
which to analyze further.

ADDRESSES: You can view copies of the ASHRAE/IES Standard 90.1-1999 in 
the Freedom of Information Reading Room (Room No. 1E-190) at the U.S. 
Department of Energy, Forrestal Building, 1000 Independence Avenue, SW, 
Washington, DC 20585-0121, between the hours of 9:00 a.m. and 4:00 
p.m., Monday through Friday, except Federal holidays. You can also 
obtain copies from the American Society of Heating, Refrigerating, and 
Air-Conditioning Engineers, Inc., 1971 Tullie Circle, NE, Atlanta, GA 
30329, and you can obtain electronic versions at ASHRAE's web site, 
http://www.ashrae.org/book/bookshop.htm. The Preliminary Screening 
Analysis described in this notice is expected to be available for 
viewing in the Department of Energy's Freedom of Information Reading 
Room by the end of March 2000, and copies may be requested from the 
contacts listed below. The report will also be accessible via the 
Internet at http://www.eren.doe.gov/buildings/codes__standards/
index.htm, which contains additional information on Department of 
Energy codes and standards programs as well.

FOR FURTHER INFORMATION CONTACT: Cyrus H. Nasseri, U.S. Department of 
Energy, Office of Energy Efficiency and Renewable Energy, Mail Station, 
EE-41, 1000 Independence Avenue, SW, Washington, D.C. 20585, (202) 586-
9138, FAX (202) 586-4617, e-mail: [email protected], or Edward 
Levy, Esq., U.S. Department of Energy, Office of General Counsel, Mail 
Station, GC-72, 1000 Independence Avenue, SW, Washington, D.C. 20585, 
(202) 586-9507, e-mail: [email protected].

SUPPLEMENTARY INFORMATION: This notice refers to certain industry 
standards established by the ASHRAE and IES. These industry standards 
are referenced by the single comprehensive ``ASHRAE/IES Standard 90.1-
1999.''

I. Introduction
    A. Authority
    B. Background
    1. General
    2. ASHRAE Action
II. Discussion
    A. Preliminary Screening Analysis
    B. Products Not Included in the Preliminary Screening Analysis
    C. DOE Decision Process

I. Introduction

A. Authority

    Part B of Title III of the Energy Policy and Conservation Act 
(EPCA) of 1975, Pub. L. 94-163, as amended, by the National Energy 
Conservation Policy Act of 1978 (NECPA), Pub. L. 95-619, the National 
Appliance Energy Conservation Act of 1987 (NAECA), Pub. L. 100-12, the 
National Appliance Energy Conservation Amendments of 1988 (NAECA 1988), 
Pub. L. 100-357, and the Energy Policy Act of 1992 (EPACT), Pub. L. 
102-486, established the Energy Conservation Program for Consumer 
Products other than Automobiles. Part 3 of Title IV of NECPA amended 
EPCA to add ``Energy Efficiency of Industrial Equipment,'' which 
included air conditioners, furnaces, and other types of equipment.
    EPACT also amended EPCA with respect to industrial equipment, 
providing definitions, test procedures, labeling provisions, energy 
conservation standards, and authority to require information and 
reports from manufacturers. See 42 U.S.C. 6311-6316. For example, EPCA 
now specifies explicit minimum energy efficiency levels for certain 
commercial packaged air conditioning and heating equipment, packaged 
terminal air conditioners and heat pumps, warm air furnaces, packaged 
boilers, water heaters and hot water storage tanks. 42 U.S.C. 6313(a) 
(1)-(5). The efficiency requirements in the statute correspond with the 
levels in effect on October 24, 1992, in ASHRAE/IES Standard 90.1. The 
statute provides that if the ASHRAE/IES Standard 90.1 levels are 
amended after that date for any of the covered equipment, the Secretary 
of Energy must establish an amended uniform national standard at the 
new minimum level for each effective date specified in ASHRAE/IES 
Standard 90.1, unless (s)he determines, through a rulemaking supported 
by clear and convincing evidence, that a more stringent standard is 
technologically feasible and economically justified and would result in 
significant additional energy conservation. 42 U.S.C. 6313(a)(6)(A).
    If the Secretary elects to publish such a rule, it must contain the 
amended standard, and the determination must consider, to the greatest 
extent practicable: the economic impact on the manufacturers and 
consumers of the affected products; savings in operating cost 
throughout the life of the product, compared to any increases in 
initial cost or maintenance expense; the total projected amount of 
energy savings likely to result directly from the imposition of the 
standard; any lessening of the utility or performance of the affected 
products; the impact of any lessening of competition; the need for 
national energy conservation; and other factors the Secretary considers 
relevant. The Secretary may not prescribe such an amended standard if 
(s)he finds (and publishes the finding) that interested persons have 
established by a preponderance of evidence that the amended standard is 
likely to result in unavailability in the United States of products 
with performance characteristics (including reliability), features, 
sizes, capacities and volumes that are substantially the same as those 
generally available in the United States at the time of the Secretary's 
finding. 42 U.S.C. 6313(a)(6)(B).
    Finally, the Secretary may not prescribe any amended standard which 
increases maximum allowable energy use or decreases minimum required 
energy efficiency. 42 U.S.C. 6313(a)(6)(B)(ii).

B. Background

1. General
    The Department of Energy (DOE or the Department) has an energy 
conservation program for consumer products, conducted under Part B of 
Title III of EPCA, 42 U.S.C. 6291-6309. The consumer appliance 
standards program consists of four principal parts: Test procedures, 
Federal energy conservation standards, labeling, and certification and 
enforcement procedures. The Federal Trade Commission (FTC) is 
responsible for labeling, and the Department implements the remainder 
of the program as codified in Title 10 of the Code of Federal 
Regulations (CFR), Part 430--Energy Conservation Program for Consumer 
Products.
    Pursuant to the EPACT amendments to EPCA in 1992, DOE extended its 
program to cover commercial and industrial equipment and created a new 
Part 431 in Title 10 of the Code of Federal Regulations, entitled 
Energy Conservation Program for Commercial and Industrial Equipment. 
This part includes commercial heating, air conditioning and water 
heating equipment. This new program consists of: test procedures, 
Federal energy conservation standards, labeling, certification and 
enforcement procedures. EPCA directs the Department, rather than the 
FTC, to administer the statute's efficiency

[[Page 10986]]

labeling provisions for commercial equipment.
2. ASHRAE Action
    ASHRAE revised ASHRAE/IES Standard 90.1 on October 29, 1999. ASHRAE 
changed the standards for some products but not for others. Of those 
products for which standards have not changed, some levels were 
considered by ASHRAE in the course of revising ASHRAE/IES Standard 90.1 
and left at their preexisting values, while consideration of other 
products was deferred. Among those products that were deferred were 
standards for commercial (3 phase) small air conditioners and heat 
pumps (under 65 thousand Btu per hour), which are closely related to 
consumer products for which the Department is independently developing 
standards under NAECA. The standard levels in EPACT and ASHRAE/IES 
Standard 90.1-1999 appear in Tables 1 and 2.

                                          Table 1.--EPCA Section 342(a) 1, 2, 3 Air Conditioners and Heat Pumps
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                                                                                                                         Efficiency levels
         Equipment category             Equipment subcategory             EPCA section         EPCA date -----------------------------------------------
                                                                                                                  EPCA 92                90.1-1999
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Small Commercial Packaged Air        AC/HP 65--Air Cooled 3       Cooling Eff. 342(a)(1)(A)..     1/1/94  SEER 10.0.............  SEER 10.0
 Conditioning and Heating Equipment.  Phase, Central Split        Heating Eff. 342(a)(1)(D)..             HSPF 6.8..............  HSPF 6.8
                                      System.
                                     AC/HP 65--Air Cooled 3       Cooling Eff. 342(a)(1)(B)..     1/1/94  SEER 9.7..............  SEER 9.7
                                      Phase, Central Single       Heating Eff. 342(a)(1)(E)..             HSPF 6.6..............  HSPF 6.6
                                      Package.
                                     AC/HP 65--135 Air Cooled     Cooling Eff. 342(a)(1)(C)..     1/1/94  EER 8.9...............  EER 10.3
                                      Central.                    Heating Eff. 342(a)(1)(F)..             COP 3.0...............  COP 3.2
                                     AC/HP 65--Water Cooled       Cooling Eff. 342(a)(1)(G)..     1/1/94  EER 9.3...............  EER 12.1
                                      Evap. Cooled Water-Source   Heating Eff. Water-Source               COP 3.8...............  COP 4.2
                                      Central.                     only 342(a)(1)(I).
                                     AC/HP 65-135 Water Cooled    Cooling Eff. 342(a)(1)(H)..     1/1/94  EER 10.5..............  EER 11.5
                                      Evap. Cooled Water-Source   Heating Eff. Water-Source               COP 3.8...............  COP 4.2
                                      Central.                     only 342(a)(1)(I).
Large Commercial Packaged Air        AC/HP 135-240--Air Cooled    Cooling Eff. 342(a)(2)(A)..     1/1/95  EER 8.5...............  EER 9.7
 Conditioning and Heating Equipment.  Central.                    Heating Eff. 342(a)(2)(B)..             COP 2.9...............  COP 3.1
                                     AC/HP 135-240 Water Cooled   Cooling Eff. 342(a)(2)(A)..     1/1/95  EER 9.6...............  EER 11.0
                                      Evap. Cooled Central.       No Heating Eff. Requirement
Packaged Terminal Air Conditioners   PTAC/PTHP (Air Cooled).....  Cooling Eff. 342(a)(3)(A)..     1/1/94  EER varies by capacity  EER and COP vary by
 and Heat Pumps.                                                  Heating Eff. 342(a)(3)(B)..              COP varies by           capacity (different
                                                                                                           capacity.               formulas)
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                               Table 2.--EPCA (as Amended) Section 342(a) 4, 5 Furnaces, Boilers, and Storage Water Heater
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                                                                                                                         Efficiency levels
         Equipment category             Equipment subcategory             EPCA section         EPCA date -----------------------------------------------
                                                                                                                  EPCA 92                90.1-1999
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Warm Air Furnaces..................  225,000:........  Gas Fired Eff. 342(a)(4)(A)     1/1/94  Thermal Efficiency:...  Thermal Efficiency:
                                       Gas Fired................  Oil Fired Eff. 342(a)(4)(A)               80% Gas.............    80% Gas
                                       Oil Fired................                                            81% Oil.............    81% Oil
Package Boilers....................  300,000:........  Gas Fired Eff. 342(a)(4)(C)     1/1/94  Combustion Efficiency:  Combustion Efficiency:
                                     Gas Fired..................  Oil Fired Eff. 342(a)(4)(D)               80% Gas.............    80% Gas
                                     Oil Fired..................                                            83% Oil.............    83% Oil
Storage Water Heaters..............  Electric...................  Standby Loss 342(a)(5)(A)..     1/1/94  0.3+27/Va.............  20+35 V
                                     155,000 and V 40 gal.              Loss 342(a)(5)(B).                      Standby Loss Varies     Standby Loss Varies
                                                                                                           by Volume.              by Volume
                                     >155,000 and V140 gal.                  Loss 342(a)(5)(C).                      Standby Loss Varies     Standby Loss Varies
                                                                                                           by Volume.              by Volume
Instantaneous Water Heaters........  V10 gal Instantaneous......  Thermal Eff. 342(a)(5)(D)..     1/1/94  Thermal Eff. 80%......  Thermal Eff. 80%
                                     10 gal V 140 gal             Thermal Eff. and Standby        1/1/94  Thermal Eff. 77%        Thermal Eff. 80%,
                                      Instantaneous.               Loss 342(a)(5)(E).                      Standby Loss Varies     Standby Loss Varies
                                                                                                           by Volume.              by Volume
Storage Tanks......................  V 140 gal         Heat Loss 342(a)(5)(F).....     1/1/94  Heat Loss 6.5 Btu/hr/   Heat Loss 6.5 Btu/hr/
                                      Unfired.                                                             ft \2\.                 ft \2\
                                     Storage Water Heaters and    Prescriptive 342(a)(5)(G)..     1/1/94  R-12.5, IID...........  R-12.5, IID
                                      Storage Tanks >140 gal.
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[[Page 10987]]

    In response to ASHRAE's action, the Department initiated a 
Preliminary Screening Analysis to aid the Department in deciding what 
action it should take at this point with respect to the efficiency 
levels in ASHRAE/IES Standard 90.1-1999.

II. Discussion

A. Preliminary Screening Analysis

    In conducting the Preliminary Screening Analysis, the Department is 
using existing data from industry and other sources, including, among 
others, analysis performed for ASHRAE in support of its deliberations 
over the new ASHRAE/IES Standard 90.1-1999 efficiency levels. For each 
product category, the Department is estimating the likely cost of 
achieving several higher, technologically feasible efficiency levels 
and then will calculate for each such level the corresponding rate of 
energy consumption required to fulfill the product's function. Applying 
appropriate climate data, typical building design characteristics, 
inventories of buildings in different regions of the country, equipment 
sales volumes, and economic discount rates and energy prices, DOE will 
compute cost/benefit measures corresponding to the hypothetical 
efficiency levels and also estimate the nationwide energy and net cost 
savings, if any, that would result from more stringent standards than 
the levels in ASHRAE/IES Standard 90.1-1999.
    For the products analyzed, the Department is examining the range of 
efficiency levels specified in EPCA and ASHRAE/IES Standard 90.1-1999, 
as well as more efficient levels, including those associated with the 
most efficient product available in the market and the lowest life-
cycle cost. For each level above the EPCA standard, DOE will estimate: 
(1) The incremental national energy and carbon emission savings that 
would result from a standard set at that level, and (2) the net 
nationwide direct economic benefit (net present value) that would 
result from a standard set at that level, as compared to the 
corresponding ASHRAE/IES Standard 90.1-1999 and EPCA standards. The 
products being studied in the Preliminary Screening Analysis are:
     Central Air Source Air Conditioners, 135 kBtu/
h--240    kBtu/h
     Central Air Source Heat Pump, 135 kBtu/h--240 
kBtu/h (cooling performance only)
     Central Water Cooled Air Conditioners, 135 
kBtu/h--240    kBtu/h
     Central Air Source Air Conditioners, 65 kBtu/
h--135 kBtu/h
     Central Air Source Heat Pump, 65 kBtu/h--135 
kBtu/h (cooling performance only)
     Central Water Source Heat Pump, 65 kBtu/h--135 
kBtu/h (cooling performance only)
     Central Water Cooled Air Conditioners, 65 kBtu/
h--135 kBtu/h
     Packaged Terminal Air Conditioners
     Packaged Terminal Heat Pumps (cooling performance only)
     3-Phase Single Pkg. Air Source Air Conditioners, 65 kBtu/h
     3-Phase Split Air Source Air Conditioners, 65 kBtu/h
     3-Phase Single Pkg. Air Source Heat Pump, 65 kBtu/h 
(cooling performance only)
     3-Phase Split System Air Source Heat Pump, 65 kBtu/h 
(cooling performance only)
     Central Water Cooled Air Conditioners, 65 kBtu/h
     Central Water Source Heat Pump, 17 kBtu/h--65 
kBtu/h (cooling performance only)
     Central Water Source Heat Pump, 17 kBtu/h (cooling 
performance only)
     Large Gas-Fired Hot Water Boilers, 2.5 MMBtu/h
     Large Gas-Fired Steam Boilers, 2.5 MMBtu/h
     Small Gas-Fired Boilers, 2.5 MMBtu/h
     Gas-Fired Warm Air Furnaces, >225 kBtu/h
     Gas Storage Water Heaters, 155 kBtu/h
     Gas Storage Water Heaters, 155 kBtu/h
     Electric Water Heaters
     Tankless Instantaneous Water Heaters
     Instantaneous Water Heaters with Tanks

B. Products Not Included in the Preliminary Screening Analysis

    Several products were not included in the formal Preliminary 
Screening Analysis:
     Central Air Source Heat Pumps, 135 kBtu/h--240 
kBtu/h (heating performance)
     Central Air Source Heat Pumps, 65 kBtu/h--135 
kBtu/h (heating performance)
     3-Phase Single Package, Air Source Heat Pumps, 65 kBtu/h 
(heating performance)
     3-Phase Split Air Source Heat Pumps, 65 kBtu/h (heating 
performance)
     Packaged Terminal Heat Pump (heating performance)
     Central Water Source Heat Pumps 135 kBtu/h (heating 
performance)
     Water Source Heat Pumps 135 kBtu/h--240 kBtu/h
     Evaporatively Cooled Products
     Oil-Fired Warm Air Furnaces >225 kBtu/h
     Oil-Fired Storage Water Heaters 155 kBtu/h
     Oil-Fired Storage Water Heaters 155 kBtu/h
     Tankless Oil-Fired Instantaneous Water Heaters
     Oil-Fired Instantaneous Water Heaters with Tanks
     Oil-Fired Small Boilers 2.5 MMBtu/h
     Oil-Fired Large Boilers 2.5 MMBtu/h (steam and hot water)

    The reasons for excluding these products involve insufficient data 
describing baseline energy consumption and cost-efficiency 
relationships, small markets for the products in question or lack of 
product shipment data, or, in the case of the heating performance of 
air-source heat pumps, absence of a suitable methodology to 
discriminate their heating function from that of supplemental heat 
sources with which they are often used.

C. DOE Decision Process

    The Department plans to review the results of the Preliminary 
Screening Analysis and to announce the availability of the document in 
the Federal Register. The announcement will also contain DOE's 
preliminary inclination with respect to actions it will take on the 
EPCA commercial product categories covered by ASHRAE/IES Standard 90.1-
1999 efficiency levels and will invite comments related to: (1) The 
analysis contained in the Preliminary Screening Analysis, (2) DOE's 
interpretation of the results, (3) DOE's treatment of the product 
categories; and (4) any other information or evidence that bears on the 
adoption of ASHRAE/IES Standard 90.1-1999 efficiency levels as uniform 
national standards under the terms of EPCA.
    After receiving comments in response to the Announcement, the 
Department expects to pursue, for each product category, one of four 
courses of action:
     Adopt the ASHRAE/IES Standard 90.1-1999 efficiency level 
as a uniform national standard;
     Reject the ASHRAE/IES Standard 90.1-1999 efficiency level 
if it increases maximum allowable energy use or decreases minimum 
required efficiency;
     Propose consideration of an addendum to ASHRAE/IES 
Standard 90.1-1999 if ASHRAE did not consider a more efficient level, 
and a more efficient level appears warranted; or
     Propose consideration of an addendum to ASHRAE/IES 
Standard

[[Page 10988]]

90.1-1999 and undertake a more thorough evaluation to determine whether 
a rulemaking is justified, if ASHRAE considered amending or amended the 
standard, and a more efficient level appears warranted than is 
contained in ASHRAE/IES Standard 90.1-1999.
    DOE expects to announce the availability of the Preliminary 
Screening Analysis in March 2000, along with the Department's 
preliminary inclinations with respect to the EPCA commercial product 
efficiency levels covered by ASHRAE/IES Standard 90.1-1999.

    Issued in Washington, DC, on February 23, 2000.
Dan W. Reicher,
Assistant Secretary, Energy Efficiency and Renewable Energy.
[FR Doc. 00-4738 Filed 2-29-00; 8:45 am]
BILLING CODE 6450-01-P