[Federal Register Volume 65, Number 94 (Monday, May 15, 2000)]
[Proposed Rules]
[Pages 30929-30936]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-12112]


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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 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 document availability and public workshop.

-----------------------------------------------------------------------

SUMMARY: The Energy Policy and Conservation Act, as amended, 
establishes energy efficiency standards for certain commercial heating, 
air conditioning and water heating equipment and requires the 
Department (DOE, Department or we) to administer an energy conservation 
program for these products. On October 29, 1999, the American Society 
of Heating, Refrigerating and Air-Conditioning Engineers, Inc. (ASHRAE) 
and Illuminating Engineering Society of North America (IES) revised 
ASHRAE/IES Standard 90.1, which contains efficiency standards for these 
products. This notice announces availability of the report of the 
Screening Analysis the Department has undertaken to assess what action 
it should take with respect to the efficiency levels now contained in 
ASHRAE/IES Standard 90.1. The Department invites comments and is 
convening a public workshop on its preliminary conclusions, on the 
analysis, and on any additional considerations that might affect the 
Department's decisions on which standards to adopt or reject without 
further analysis, and which to consider further.

DATES: The Department must receive written comments on or before July 
31, 2000. The Department requests ten (10) copies of the written 
comments and, if possible, an electronic copy (3\1/2\'' diskette) in a 
form accessible to WordPerfectTM 8. Oral views, data and 
arguments may be presented at the public workshop to be held in 
Washington, DC, beginning at 9:30 a.m. on July 11, 2000.
    The Department must receive (1) requests to speak at the workshop 
no later than 4:00 p.m., June 23, 2000, and (2) copies of statements to 
be given at the public workshop no later than 4:00

[[Page 30930]]

p.m., June 30, 2000. The length of each oral presentation is limited to 
15 minutes.

ADDRESSES: The workshop will be held at the U.S. Department of Energy, 
Forrestal Building, Room 1E-245, 1000 Independence Avenue, SW, 
Washington, DC. Written comments, statements, and requests to speak at 
the workshop are to be submitted to Ms. Brenda Edwards-Jones, U.S. 
Department of Energy, Office of Energy Efficiency and Renewable Energy, 
EE-41, 1000 Independence Avenue, SW, Washington, DC 20585. You should 
identify all such documents both on the envelope and on the documents 
as ``Energy Conservation Program for Commercial Equipment: Screening 
Analysis for Commercial HVAC Standards, Docket No. EE-RM/STD-00-100.''
    You can read the Screening Analysis report and public comments 
received 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, between the hours of 9:00 a.m. and 
4:00 p.m., Monday through Friday, except Federal holidays. You can also 
obtain the Screening Analysis report electronically from the Office of 
Building Research and Standards world wide web site at the following 
URL address: [http://www.eren.doe.gov/buildings/codes_standards/index.htm].
    The Screening Analysis report and this notice both refer to certain 
industry standards established by ASHRAE and IES. These industry 
standards are referenced hereafter by the single comprehensive title 
``ASHRAE/IES Standard 90.1-1999.'' You can view this standard at the 
Department of Energy's Freedom of Information Reading Room at the 
address stated above. 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 
them electronically at ASHRAE's web site, [http://www.ashrae.org/book/bookshop.htm].

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, DC 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, DC 20585, 
(202) 586-9507, e-mail: [email protected].

SUPPLEMENTARY INFORMATION:
I. Introduction
    A. Authority
    B. Background
    1. General
    2. ASHRAE Action
    3. Department of Energy Response
II. Discussion
    A. Screening Analysis Results
    B. DOE Interpretation
    C. Products Not Included in the Screening Analysis
    D. Summary
III. Public Comment
    A. Written Comment Procedures
    B. Issues on Which Comments are Requested
    C. Public Workshop
    1. Procedure for Submitting Requests to Speak
    2. Conduct of Workshop

I. Introduction

A. Authority

    Part B of Title III of the Energy Policy and Conservation Act 
(EPCA) of 1975, Public Law 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. 42 U.S.C. 6311-6316. For example, EPCA 
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 unfired hot water storage tanks. 42 U.S.C. 
6313(a)(1)-(5). The efficiency requirements in the statute correspond 
to the levels in ASHRAE/IES Standard 90.1 as in effect on October 24, 
1992. The statute further provides that if the efficiency levels in 
ASHRAE/IES Standard 90.1 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
    As directed by Part B of Title III of EPCA, the Department of 
Energy has established an energy conservation program for consumer 
products, and certain commercial lighting products. 42 U.S.C. 6291-
6309. This 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.

[[Page 30931]]

    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. The 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 labeling 
provisions under the new program.
2. ASHRAE Action
    On June 24, 1999, ASHRAE's Board of Directors provisionally 
approved revisions to ASHRAE/IES Standard 90.1, subject to a formal 
appeal process. Four appeals were filed, and an Appeals Hearing was 
held on October 9, 1999. The Appeals Panel recommended that the appeals 
be dismissed, and the ASHRAE Board approved the Appeals Panel report in 
a special meeting on October 29, 1999, thus concluding ASHRAE's process 
for amending the Standard. The Standard indicates that its commercial 
HVAC and water heater equipment efficiencies will become effective as 
part of the Standard two years after final ASHRAE approval (i.e., on 
October 29, 2001).
    ASHRAE changed the efficiency standards for some products but not 
for all. Of those products for which standards did not change, some 
levels were considered by ASHRAE in the course of revising ASHRAE/IES 
Standard 90.1 but left at their preexisting values, while consideration 
of other products was deferred. The deferred products include 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 developing standards under NAECA. 
The standard levels in EPCA and ASHRAE/IES Standard 90.1-1999 appear in 
Tables 1 and 2.

             Table 1.--EPCA and ASHRAE 90.1-1999 Standard Levels for Air Conditioners and Heat Pumps
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                                                                                     Efficiency levels
       Equipment category              Equipment         EPCA section    ---------------------------------------
                                      subcategory                                EPCA          ASHRAE 90.1-1999
----------------------------------------------------------------------------------------------------------------
Small Commercial Packaged Air     AC/HP 65 kBtu/h     Cooling Eff.......  SEER 10.0.........  SEER 10.0
 Conditioning and Heating          Air Cooled 3       342(a)(1)(A)......  HSPF 6.8..........  HSPF 6.8
 Equipment.                        Phase, Central     Heating Eff.......
                                   Split System.      342(a)(1)(D)......
                                  AC/HP 65 kBtu/h     Cooling Eff.......  SEER 9.7..........  SEER 9.7
                                   Air Cooled 3       342(a)(1)(B)......  HSPF 6.6..........  HSPF 6.6
                                   Phase, Central     Heating Eff.......
                                   Single Package.    342(a)(1)(E)......
                                  AC/HP 65-135 kBtu/  Cooling Eff.......  EER 8.9...........  EER 10.3
                                   h Air Cooled       342(a)(1)(C)......  COP 3.0...........  COP 3.2
                                   Central.           Heating Eff.......
                                                      342(a)(1)(F)......
                                  AC/HP 65 kBtu/h     Cooling Eff.......  EER 9.3...........  EER 12.1
                                   Water Cooled       342(a)(1)(G)......  COP 3.8...........  COP 4.2
                                   Evap. Cooled       Heating Eff.......
                                   Water-Source       Water-Source only
                                   Central.            342(a)(1)(I).
                                  AC/HP 65-135 kBtu/  Cooling Eff.......  EER 10.5..........  EER 11.5
                                   h Water Cooled     342(a)(1)(H)......  COP 3.8...........  COP 4.2
                                   Evap. Cooled       Heating Eff.......
                                   Water-Source       Water-Source only
                                   Central.            342(a)(1)(I).
----------------------------------------------------------------------------------------------------------------
Large Commercial Packaged Air     AC/HP 135-240 kBtu/ Cooling Eff.......  EER 8.5...........  EER 9.7
 Conditioning and Heating          h Air Cooled       342(a)(2)(A)......  COP 2.9...........  COP 3.1
 Equipment.                        Central.           Heating Eff.......
                                                      342(a)(2)(B)......
                                  AC/HP 135-240 kBtu/ Cooling Eff.......  EER 9.6...........  EER 11.0
                                   h Water Cooled     342(a)(2)(A)......
                                   Evap. Cooled       No Heating Eff....
                                   Central.           Requirement.......
----------------------------------------------------------------------------------------------------------------
Packaged Terminal Air             PTAC/PTHP (Air      Cooling Eff.......  EER varies by       EER and COP vary
 Conditioners and Heat Pumps.      Cooled).           342(a)(3)(A)......   capacity.           by capacity
                                                      Heating Eff.......  COP varies by        (different
                                                      342(a)(3)(B)......   capacity.           formulas)
----------------------------------------------------------------------------------------------------------------
Notes: SEER--Seasonal Energy Efficiency Ratio
HSPF--Heating Seasonal Performance Factor
EER--Energy Efficiency Ratio
COP--Coefficient Of Performance
AC--Air Conditioner
HP--Heat Pump

[[Page 30932]]

 
PTAC--Package Terminal Air Conditioner
PTHP--Package Terminal Heat Pump


      Table 2.--EPCA and ASHRAE 90.1-1999 Standard Levels for Furnaces, Boilers, and Storage Water Heaters
----------------------------------------------------------------------------------------------------------------
                                                                                     Efficiency levels
       Equipment  category             Equipment         EPCA section    ---------------------------------------
                                      subcategory                                EPCA          ASHRAE  90.1-1999
----------------------------------------------------------------------------------------------------------------
Warm Air Furnaces...............  225,000  342(a)(4)(A)......  Thermal Efficiency  Thermal Efficiency
                                   Btu/h.                                 80% Gas  81% Oil..  80% Gas  81% Oil.
Package Boilers.................  300,000  Gas-fired Eff.      Combustion          Combustion
                                   Btu/h.              342(a)(4)(C).       Efficiency.         Efficiency.
                                  Gas Fired.........  Oil Fired Eff.      80% Gas...........  80% Gas
                                  Oil Fired.........   342(a)(4)(D).      83% Oil...........  83% Oil.
----------------------------------------------------------------------------------------------------------------
Storage Water Heaters...........  Electric..........  Standby Loss        0.3 + 27/Va.......  20 + 35
                                                       342(a)(5)(A).                           V.
                                  155,000  Thermal Eff. and    Thermal Eff. 78%    Thermal Eff. 80%
                                   Btu/h and V 40 gal.     342(a)(5)(B).       Varies by Volume.   Varies by Volume.
                                  >155,000 Btu/h and  Thermal Eff. and    Thermal Eff. 78%    Thermal Eff. 80%
                                   V>140 gal.          Standby Loss        Standby Loss        Standby Loss
                                                       342(a)(5)(C).       Varies by Volume.   Varies by Volume.
----------------------------------------------------------------------------------------------------------------
Instantaneous Water.............  V10 gal             Thermal Eff.        Thermal Eff. 80%..  Thermal Eff. 80%.
Heaters.........................   Instantaneous.      342(a)(5)(D).
                                  10 gal  V  140 gal  Thermal Eff. and    Thermal Eff. 77%    Thermal Eff. 80%
                                   Instantaneous.      Standby Loss        Standby Loss        Standby Loss
                                                       342(a)(5)(E).       Varies by Volume.   Varies by Volume.
----------------------------------------------------------------------------------------------------------------
Storage Tanks...................  V 140    Heat Loss           Heat Loss 6.5 Btu/  Heat Loss 6.5 Btu/
                                   gal Unfired.        342(a)(5)(F).       hr/ft \2\.          hr/ft \2\.
                                  Storage Water       Prescriptive        R-12.5, IID.......  R-12.5, IID.
                                   Heaters and         342(a)(5)(G).
                                   Storage Tanks
                                   >140 gal.
----------------------------------------------------------------------------------------------------------------

3. Department of Energy Response
    In response to ASHRAE's action, the Department initiated a 
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. The Screening Analysis report is 
available as discussed above. See ``Addresses.''
    After receiving comments in response to this 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 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.
    After consideration of comments received on the notice and 
analysis, we expect to issue a final rule adopting as minimum national 
standards the updated ASHRAE 90.1-1999 standards for some or all of the 
commercial product categories listed in Sections II-B and C of this 
notice as candidates for immediate adoption. We intend to issue another 
notice for comment if, based on the comments received or further 
analysis, we conclude that ASHRAE 90.1-1999 standards should be adopted 
for any additional products.

II. Discussion

A. Screening Analysis Results

    In conducting the Screening Analysis, the Department used 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 estimated the likely cost of achieving several 
higher technologically feasible efficiency levels and then calculated 
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 computed cost/
benefit measures corresponding to the hypothetical efficiency levels 
and also estimated 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 examined 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 now available in the market and with the lowest 
life-cycle cost. For each level above the EPCA standard, DOE estimated: 
(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, represented by the net present 
value (NPV), that would result from a standard set at that level, as 
compared to the corresponding ASHRAE/IES Standard 90.1-1999 and EPCA 
standards.
    Table 3 lists the products studied in the Screening Analysis, and 
shows for each the efficiency level that corresponds to the product's 
lowest average life-cycle cost, taking into account both the costs of 
efficiency improvements and the savings from reduced energy 
consumption. In addition, where that efficiency level is

[[Page 30933]]

above the level specified for the product in ASHRAE/IES Standard 90.1-
1999, Table 3 shows the following potential benefits that would result 
over the period from 2004 to 2030 from setting a standard at the higher 
level:
     The estimated nationwide energy savings, measured in 
trillions of Btu (TBtu);
     The estimated net nationwide direct economic benefit, 
represented by the net present value (NPV); and
     The estimated reductions in atmospheric carbon emissions, 
in millions of tons.

Table 3.--Energy Savings, Net Present Value and Carbon Emissions Reductions at the Energy Efficiency Levels with
                                           the Lowest Life-Cycle-Cost
----------------------------------------------------------------------------------------------------------------
                                                                                Relative to ASHRAE 90.1-1999
                                                                          --------------------------------------
                                                               Efficiency                              National
                                                                level at     National     National      carbon
                      Product category                          minimum       energy     total NPV     emission
                                                               life-cycle    savings     (millions    reductions
                                                                  cost        (TBtu)      of 1998      (million
                                                                                            $'s)        tons)
----------------------------------------------------------------------------------------------------------------
3-Phase Single Package Air Source AC 65 kBtu/h..............         12.0      1,412.7        897.7           21
Central Air Source AC 135-240 kBtu/h........................         10.4        428.8        417.9            6
Packaged Terminal Air Conditioners..........................         10.5        311.7        274.7            5
3-Phase Split Air Source AC 65 kBtu/h.......................         11.0        278.6        109.1            4
Packaged Terminal Heat Pumps................................          9.9        249.0        241.9            4
Small Gas-Fired Boilers 2.5 mmBtu................        78.7%        200.0        146.0            3
3-Phase Single Package Air Source HP 65 kBtu/h..............         12.0        183.6         91.3            3
Tankless Gas Instantaneous Water Heaters....................        81.5%        102.0         45.3            2
Large Gas-Fired Boilers 2.5 mmBtu...........................       *85.3%         79.0         86.6            1
3-Phase Split Air Source HP 65 kBtu/h.......................         12.0         66.4         47.0            1
Central, Water Source HP 17-65 kBtu/h.......................         12.5         65.0         23.0            1
Central Air Source HP 135-240 kBtu/h........................         10.4         31.4          3.2            1
Electric Water Heater (120 gal).............................          1.0          6.6          1.1            0
Central Water Cooled AC 65-135 kBtu/h.......................         12.4          2.7          0.8            0
Central Water Cooled AC 135-240 kBtu/h......................         11.5          2.5          3.0            0
Central Air Source AC 65-135 kBtu/h.........................         10.3          0.0          0.0            0
Central Air Source HP 65-135 kBtu/h.........................         10.1          0.0          0.0            0
Central Water Cooled AC 65 kBtu/h...........................         12.1          0.0          0.0            0
Central Water Source HP 17 kBtu/h...........................         11.2          0.0          0.0            0
Central Water Source HP 65-135 kBtu/h.......................         12.0          0.0          0.0            0
Gas-Fired Warm Air Furnaces 225 kBtu/h...........        77.5%          0.0          0.0            0
Gas Storage Water Heaters 155 kBtu/h.............        80.0%          0.0          0.0            0
Gas Storage Water Heaters >155 kBtu/h.......................        80.4%          0.0          0.0            0
Instantaneous Gas Water Heaters with Tanks..................        80.0%          0.0          0.0           0
----------------------------------------------------------------------------------------------------------------
*Efficiency shown is shipment-averaged value of Large Steam Boilers (76%-81%), and Large Hot Water Boilers (78%-
  88%)

When Table 3 shows a zero for a product in all three of these 
categories, the efficiency level that corresponds with the product's 
lowest average life cycle cost is the same as the level specified in 
ASHRAE/IES Standard 90.1-1999.

B. DOE Interpretation

    Of the products included in the Screening Analysis, DOE believes 
the following appear not to warrant standards that are more stringent 
than those in ASHRAE/IES Standard 90.1-1999. DOE considers the ASHRAE/
IES Standard 90.1-1999 efficiency levels for these products to be 
appropriate candidates for immediate adoption as uniform national 
standards.
     Central Water Source Heat Pumps, 17 kBtu/h--65 kBtu/h
     Central Water Cooled Air Conditioners, 65 kBtu/h--135 
kBtu/h
     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 Pumps, 65 kBtu/h--135 kBtu/h
     Central Water Cooled Air Conditioners, 65 kBtu/h
     Central Water Source Heat Pumps, 17 kBtu/h
     Central Water Source Heat Pumps, 65 kBtu/h--135 kBtu/h
     Gas-Fired Warm Air Furnaces, 225 kBtu/h
     Gas Storage Water Heaters, 155 kBtu/h
     Gas Storage Water Heaters, >155 kBtu/h
     Gas Instantaneous Water Heaters with Tanks
    In all except the first three of the above product categories, the 
ASHRAE/IES Standard 90.1-1999 efficiency levels are the same as the 
levels identified in the Screening Analysis as achieving the lowest 
life-cycle costs. For the central water-source heat pumps between 17 
and 65 thousand Btu/hour, and the two sizes of central water-cooled air 
conditioners between 65 and 240 thousand Btu/hour, the efficiency 
levels corresponding to minimum life-cycle cost are slightly higher 
than ASHRAE's, but the total estimated cumulative energy savings that 
would be achieved cost-effectively by adopting the three higher levels 
would amount to only 70 trillion Btu between 2004 and 2030. This 
compares with 2.4 quadrillion Btu in nationwide savings over that 
period that DOE expects as a result of the changes from the standards 
embodied in EPACT for the twelve product categories listed above to 
those contained in ASHRAE/IES Standard 90.1-1999.
    Of the remainder, for four categories of 3-phase air conditioners 
and heat pumps with capacities under 65,000 Btu per hour, the Screening 
Analysis indicates that efficiency standards higher than those in 
ASHRAE/IES Standard 90.1-1999 might well have significant energy 
savings potential and economic benefits. Adopting the

[[Page 30934]]

efficiency levels corresponding to the lowest average life-cycle cost 
for all four of these product categories would result in estimated 
cost-effective nationwide cumulative energy savings of 1.9 quadrillion 
Btu between 2004 and 2030. However, these products were not addressed 
by ASHRAE in revising Standard 90.1, and DOE has tentatively decided 
not to take action to adopt a standard at this time with respect to 
these products. Based on the Screening Analysis, DOE is inclined to 
encourage ASHRAE to consider adoption of an addendum to ASHRAE Standard 
90.1-1999 and will support ASHRAE in its future deliberations 
concerning these products in conjunction with ongoing development of 
NAECA standards for similar, but single phase, residential equipment. 
Should ASHRAE amend the efficiency standards for these air conditioners 
or heat pumps in the future, DOE will then act on such amendments as 
required by EPCA. The four categories of 3-phase air conditioners and 
heat pumps with capacities under 65,000 Btu per hour are:
     3-phase Single Package Air Source Air Conditioners, 65 
kBtu/h;
     3-phase Split Air Source Air Conditioners, 65 kBtu/h;
     3-phase Single Package Air Source Heat Pumps, 65 kBtu/h; 
and
     3-phase Split System Air Source Heat Pumps, 65 kBtu/h.
    For seven of the eight remaining product categories analyzed in the 
Screening Analysis, ASHRAE amended the efficiency standards contained 
in ASHRAE/IES Standard 90.1, but there appear to be significant, cost-
effective energy savings that might result from standards that are even 
more stringent. Adopting efficiency levels corresponding to minimum 
average product life-cycle cost for all seven of these categories would 
cost-effectively produce estimated cumulative energy savings amounting 
to 1.4 quadrillion Btu over the period from 2004 to 2030. These savings 
would more than double the 1.1 quadrillion Btu over the same period 
that DOE anticipates as a result of the corresponding amendments 
already contained in ASHRAE/IES Standard 90.1-1999. For each of these 
products, DOE is inclined to propose consideration of an addendum to 
ASHRAE/IES Standard 90.1-1999, based on the Screening Analysis, and to 
undertake a more thorough evaluation to determine whether a rulemaking 
is justified under the terms of EPCA. These products are the following:
     Central air-source air conditioners, 135 kBtu/h--240 kBtu/
h;
     Central air-source heat pumps, 135 kBtu/h--240 kBtu/h;
     Packaged terminal air conditioners;
     Packaged terminal heat pumps;
     Small gas-fired steam and hot water boilers, 0.3 MMBtu/h--
2.5 MMBtu/h; and
     Large gas-fired steam and hot water boilers, > 2.5 MMBtu/
h.
     Tankless Gas Instantaneous Water Heaters
    For one product category, electric water heaters, the new 
efficiency level in ASHRAE/IES Standard 90.1-1999 appears to increase 
energy consumption relative to the standard in EPCA. If this is true, 
the original standard should remain in force, since EPCA stipulates 
that the standards it contains cannot be relaxed. Therefore, DOE is 
inclined not to adopt the requirement in ASHRAE/IES Standard 90.1-1999 
for this product.

C. Products Not Included in the Screening Analysis

    Several commercial products were not analyzed in the 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 Pumps (heating performance)
     Central Water Source Heat Pumps, 135 kBtu/h (heating 
performance)
     Water Source Heat Pumps, 135 kBtu/h--240 kBtu/h
     Evaporatively Cooled Air Conditioning 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
     Small Oil-Fired Steam and Hot Water Boilers, 0.3 MMBtu/h-
2.5 MMBtu/h
     Large Oil-Fired Steam and Hot Water Boilers, >2.5 MMBtu/h
     Unfired hot water storage tanks
    DOE did not include these products in the Screening Analysis 
because of 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 heat pumps, the absence of a suitable 
methodology to discriminate their heating function from that of 
supplemental heat sources with which they are often used.
    The products and performance characteristics that were not analyzed 
in detail fall into groups as follows:
     Heating coefficients of performance (COP) and heating 
seasonal performance factors (HSPF) for all heat pump product 
categories;
     Efficiencies of water-cooled air conditioners and heat 
pumps with capacities between 65 kBtu/h and 135 kBtu/h;
     Evaporatively cooled air-conditioning products;
     Oil-fired warm air furnaces, storage and instantaneous 
water heaters, and packaged boilers; and
     Unfired hot water storage tanks
    DOE believes that the water-cooled and evaporatively cooled air 
conditioning products, oil-fired warm air furnaces and water heaters, 
and unfired hot water storage tanks have small markets and are unlikely 
to represent significant potential energy savings, so the Department 
plans to adopt ASHRAE/IES Standard 90.1-1999 standards for these 
products. Since the heating COP is closely related to cooling 
efficiency for heat pumps, DOE does not plan to adopt yet the heating 
COP levels contained in ASHRAE/IES Standard 90.1-1999 for: (1) three-
phase heat pumps with capacities under 65 thousand Btu per hour, which 
ASHRAE did not address in formulating Standard 90.1-1999; (2) central 
air-source heat pumps with capacities between 135 thousand and 240 
thousand Btu per hour, which would be the subject of further analysis 
with respect to cooling as a result of the Screening Analysis; and (3) 
packaged terminal heat pumps, which also would be the subject of 
further analysis of their cooling performance. For all other heat pumps 
covered by EPCA, DOE considers the amended ASHRAE/IES Standard 90.1-
1999 COP levels to be appropriate candidates for immediate adoption as 
uniform national standards. Finally, DOE recognizes that ASHRAE did not 
evaluate the efficiency levels for packaged oil-fired boilers 
explicitly, and the published values in ASHRAE/IES Standard 90.1-1999 
were tied to the corresponding efficiencies for gas-fired boilers. 
Since DOE is inclined to evaluate the gas-fired boilers as a result of 
the Screening Analysis, the Department also anticipates waiting for 
that evaluation to be complete before

[[Page 30935]]

adopting efficiency standards for the equivalent oil-fired products.

D. Summary

    Table 4 summarizes the actions DOE is inclined to take for all of 
the product categories in light of the Screening Analysis.

                      Table 4.--Planned DOE Actions
------------------------------------------------------------------------
            Product category                          Action
------------------------------------------------------------------------
3-Phase Single Package Air Source AC 65  Encourage ASHRAE/IES Addendum
 kBtu/h.
Central Air Source AC 135-240 kBtu/h...  Evaluate Further/Encourage
                                          ASHRAE/IES Addendum
Packaged Terminal Air Conditioners.....  Evaluate Further/Encourage
                                          ASHRAE/IES Addendum
3-Phase Split Air Source AC 65 kBtu/h..  Encourage ASHRAE/IES Addendum
Packaged Terminal Heat Pumps...........  Evaluate Further/Encourage
                                          ASHRAE/IES Addendum
Small Gas-Fired Boilers 0.3-2.5 MMBtu/h  Evaluate Further/Encourage
                                          ASHRAE/IES Addendum
3-Phase Single Package Air Source HP 65  Encourage ASHRAE/IES Addendum
 kBtu/h.
Tankless Gas-Fired Instantaneous Water   Evaluate Further/Encourage
 Heaters.                                 ASHRAE/IES Addendum
Large Gas-Fired Boilers >2.5MMBtu......  Evaluate Further/Encourage
                                          ASHRAE/IES Addendum
3-Phase Split Air Source HP 65 kBtu/h..  Encourage ASHRAE/IES Addendum
Central, Water Source HP 17-65 kBtu/h..  Adopt ASHRAE/IES Standard 90.1-
                                          1999
Central Air Source HP 135-240 kBtu/h...  Evaluate Further/Encourage
                                          ASHRAE/IES Addendum
Electric Water Heater..................  Leave EPCA Standard in Force
Central Water Cooled AC 65-135 kBtu/h..  Adopt ASHRAE/IES Standard 90.1-
                                          1999
Central Water Cooled AC 135-240 kBtu/h.  Adopt ASHRAE/IES Standard 90.1-
                                          1999
Central Air Source AC 65-135 kBtu/h....  Adopt ASHRAE/IES Standard 90.1-
                                          1999
Central Air Source HP 65-135 kBtu/h....  Adopt ASHRAE/IES Standard 90.1-
                                          1999
Central Water Cooled AC 65 kBtu/h......  Adopt ASHRAE/IES Standard 90.1-
                                          1999
Central Water Source HP 17 kBtu/h......  Adopt ASHRAE/IES Standard 90.1-
                                          1999
Central Water Source HP 65-135 kBtu/h..  Adopt ASHRAE/IES Standard 90.1-
                                          1999
Gas-Fired Warm Air Furnaces 225 kBtu/h.                           1999
Gas Storage Water Heaters 155 kBtu/h.                           1999
Gas Storage Water Heaters >155 kBtu/h..  Adopt ASHRAE/IES Standard 90.1-
                                          1999
Gas-Fired Instantaneous Water Heaters    Adopt ASHRAE/IES Standard 90.1-
 with Tank.                               1999
Water Source HP, 135-240 kBtu/h........  Adopt ASHRAE/IES Standard 90.1-
                                          1999
Evaporatively Cooled AC Products.......  Adopt ASHRAE/IES Standard 90.1-
                                          1999
Oil-Fired Warm Air Furnaces, 225 kBtu/h.                           1999
Oil-Fired Storage Water Heaters, 155 kBtu/h.                       1999
Oil-Fired Storage Water Heaters, >155    Adopt ASHRAE/IES Standard 90.1-
 kBtu/h.                                  1999
Tankless Oil-Fired Instantaneous Water   Adopt ASHRAE/IES Standard 90.1-
 Heaters.                                 1999
Oil-Fired Instantaneous Water Heaters    Adopt ASHRAE/IES Standard 90.1-
 with Tanks.                              1999
Small Oil-Fired Boilers, 0.3-2.5 MMBtu/  Evaluate Further (with Gas-
 h.                                       Fired Boilers)
Large Oil-Fired Boilers, >2.5 MMBtu/h..  Evaluate Further (with Gas-
                                          Fired Boilers)
Unfired Hot Water Storage Tanks........  Adopt ASHRAE/IES Standard 90.1-
                                          1999
------------------------------------------------------------------------

    Nationwide, the effect of replacing EPCA efficiency levels for the 
product categories included in the Screening Analysis with those 
contained in ASHRAE/IES Standard 90.1-1999 would be to save an 
estimated 3.5 quadrillion Btu between 2004 and 2030 and to reduce 
carbon emissions into the atmosphere by approximately 51 million tons 
over the same period. DOE plans not to adopt the ASHRAE/IES Standard 
90.1-1999 efficiency levels for twelve of these product categories. If 
DOE were to adopt standards corresponding to minimum life-cycle costs 
for the twelve categories, the additional energy savings would amount 
to 3.4 quadrillion Btu, and carbon emissions would further decrease by 
49 million tons. The present value of the associated net cost savings 
would be $2.4 billion.

III. Public Comment

A. Written Comment Procedures

    The Department invites interested persons to submit data, comments, 
or information with respect to the subjects addressed in this notice to 
Ms. Brenda Edwards-Jones, at the address indicated at the beginning of 
the notice. The Department will consider all submissions received by 
the date specified at the beginning of this notice in deciding on the 
disposition of amended standards.
    Under the provisions of 10 CFR 1004.11, any person submitting 
information which he or she believes to be confidential and exempt by 
law from public disclosure should submit one complete copy of the 
document and ten (10) copies, if possible, from which the information 
believed to be confidential has been deleted. The Department of Energy 
will make its own determination with regard to the confidential status 
of the information and treat it according to its determination.
    Factors of interest to the Department when evaluating requests to 
treat as confidential information that has been submitted include: (1) 
A description of the items; (2) an indication as to whether and why 
such items are customarily treated as confidential within the industry; 
(3) whether the information is generally known by or available from 
other sources; (4) whether the information has previously been made 
available to others without obligation concerning its confidentiality; 
(5) an explanation of the competitive injury to the submitting person 
which would result from public disclosure; (6) an indication as to when 
such information might lose its confidential character due to the 
passage of time; and (7) why disclosure of the information would be 
contrary to the public interest.

B. Issues on Which Comments Are Requested

    The Department is particularly interested in receiving comments and 
views of interested parties concerning: (1) The analysis contained in 
the Screening Analysis report announced in this notice, (2) DOE's 
interpretation of the results, (3) DOE's planned treatment

[[Page 30936]]

of product categories not included in the Analysis, and (4) 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. The Department encourages those who wish to offer comments to 
obtain the Screening Analysis report and to address its contents. 
However, respondents need not limit their statements to the topics 
covered in the study, as the Department is interested in receiving 
views concerning any other issues that participants believe would 
affect the suitability of ASHRAE/IES Standard 90.1-1999 efficiency 
standards for commercial water heaters, boilers, furnaces, air 
conditioners and heat pumps. For example, comments might include 
additional evidence, not uncovered in the Screening Analysis, bearing 
on the technological feasibility and economic justification of more 
stringent uniform national standards than those in ASHRAE/IES Standard 
90.1-1999 and on the significance of the energy conservation that would 
result from adopting them. Comments might also include evidence as to 
whether any standards more stringent than the ones specified in ASHRAE/
IES Standard 90.1-1999 are 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 now.
    After the period for written comments, the Department will consider 
the views submitted in formulating rules regarding uniform energy 
efficiency standards for commercial water heaters, boilers, furnaces, 
air conditioners and heat pumps.

C. Public Workshop

1. Procedure for Submitting Requests To Speak
    You will find the time and place of the public workshop listed at 
the beginning of this notice. We invite any person who has an interest 
in today's notice, or who is a representative of a group or class of 
persons that has an interest in these issues, to request an opportunity 
to make an oral presentation. If you would like to attend the public 
workshop, please notify Ms. Brenda Edwards-Jones at (202) 586-2945. You 
may hand deliver requests to speak to the address indicated at the 
beginning of this notice between the hours of 8:00 a.m. and 4:00 p.m., 
Monday through Friday, except Federal holidays, or you may send them by 
mail.
    The person making the request should state why he or she, either 
individually or as a representative of a group or class of persons, is 
an appropriate spokesperson; briefly describe the nature of the 
interest in the proceeding; and provide a telephone number for contact. 
We request each person selected to be heard to submit an advance copy 
of his or her statement at least one week prior to the date of this 
workshop as indicated at the beginning of this notice. We, at our 
discretion, may permit any person wishing to speak who cannot meet this 
requirement to participate if that person has made alternative 
arrangements with the Office of Building Research and Standards in 
advance. The letter making a request to give an oral presentation must 
ask for such alternative arrangements.
2. Conduct of Workshop
    We will conduct the workshop in an informal, conference style. We 
may use a professional facilitator to facilitate discussion, and a 
court reporter will record the transcript of the meeting. We will 
present summaries of comments received before the workshop, allow time 
for presentations by workshop participants, and encourage all 
interested parties to share their views on issues affecting this 
proceeding. The comment period closes on July 31, 2000 in order to 
allow interested parties an opportunity to comment on the matters 
raised at the workshop, as well as on any other aspect of the 
proceeding. The public workshop agenda is expected to cover the topics 
listed in the preceding Section III. B., Issues on Which Comments Are 
Requested.
    We will arrange for a transcript of the workshop and will make the 
entire record of this proceeding, including the transcript, available 
for inspection in the Department's Freedom of Information Reading Room. 
Any person may purchase a copy of the transcript from the transcribing 
reporter.

    Issued in Washington, DC, on May 8, 2000.
Dan W. Reicher,
Assistant Secretary, Energy Efficiency and Renewable Energy.
[FR Doc. 00-12112 Filed 5-12-00; 8:45 am]
BILLING CODE 6450-01-P