[Federal Register Volume 72, Number 180 (Tuesday, September 18, 2007)]
[Notices]
[Pages 53237-53242]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-18340]


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DEPARTMENT OF ENERGY

Office of Energy Efficiency and Renewable Energy

[Docket No. EERE-2007-BT-WAV-0006]


Energy Conservation Program for Consumer Products: Publication of 
the Petition for Waiver From Daikin U.S. Corporation and Granting of 
the Application for Interim Waiver From the Department of Energy 
Residential Central Air Conditioner and Heat Pump Test Procedure [Case 
No. CAC-016]

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

ACTION: Notice of petition for waiver, granting of application for 
interim waiver, and request for comments.

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SUMMARY: This notice announces receipt of and publishes a Petition for 
Waiver from Daikin U.S. Corporation (Daikin). The Petition for Waiver 
(hereafter ``Daikin Petition'') requests a waiver of the Department of 
Energy (DOE) test procedures applicable to residential central air 
conditioners and heat pumps. The waiver request is specific to the 
Daikin Variable Refrigerant Volume VRV-II-S (residential) multi-split 
heat pumps and heat recovery systems. Through this document, DOE is: 
(1) Soliciting comments, data, and information with respect to the 
Daikin Petition; and (2) granting an Interim Waiver to Daikin from the 
DOE test procedure for residential central air conditioners and heat 
pumps.

DATES: DOE will accept comments, data, and information with respect to 
the Daikin Petition until, but no later than October 18, 2007.

ADDRESSES: You may submit comments, identified by case number [CAC-
016], by any of the following methods:
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
     E-mail: [email protected] Include either the case 
number [CAC-016], and/or ``Daikin Petition'' in the subject line of the 
message.
     Mail: Ms. Brenda Edwards-Jones, U.S. Department of Energy, 
Building Technologies Program, Mailstop EE-2J, Forrestal Building, 1000 
Independence Avenue, SW., Washington, DC 20585-0121. Telephone: (202) 
586-2945. Please submit one signed original paper copy.
     Hand Delivery/Courier: Ms. Brenda Edwards-Jones, U.S. 
Department of Energy, Building Technologies Program, Room 1J-018, 
Forrestal Building, 1000 Independence Avenue, SW., Washington, DC 
20585-0121. Please submit one signed original paper copy.
    Instructions: All submissions received must include the agency name 
and case number for this proceeding. Submit electronic comments in 
WordPerfect, Microsoft Word, Portable Document Format (PDF), or text 
(American Standard Code for Information Interchange (ASCII)) file 
format, and avoid the use of special characters or any form of 
encryption. Wherever possible, include the electronic signature of the 
author. Absent an electronic signature, comments submitted 
electronically must be followed and authenticated by submitting the 
signed original paper document. DOE does not accept telefacsimiles 
(faxes).
    Any person submitting written comments must also send a copy of 
such comments to the petitioner, pursuant to 10 CFR 430.27(d). The 
contact information for the petitioner is: Mr. Russell Tavolacci, 
Director of Product Marketing, Daikin U.S. Corporation, 1645 Wallace 
Drive, Suite 110, Carrollton, TX 75006. Telephone: (972) 245-1510. E-
mail: [email protected].\1\
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    \1\ DOE notes that Daikin has updated the contact information 
provided in its initial petition. Accordingly, the information 
provided in the ADDRESSES section above should be used in lieu of 
the Daikin contact information cited in the company's original 
Petition for Waiver and Application for Interim Waiver (published 
following this notice).
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    According to 10 CFR 1004.11, any person submitting information that 
he or she believes to be confidential and exempt by law from public 
disclosure should submit two copies: one copy of the document including 
all the information believed to be confidential, and one copy of the 
document with the information believed to be confidential deleted. DOE 
will make its own determination about the confidential status of the 
information and treat it according to its determination.
    Docket: For access to the docket to review the documents relevant 
to this matter, you may visit the U.S. Department of Energy, Forrestal 
Building, Room 1J-018 (Resource Room of the Building Technologies 
Program), 1000 Independence Avenue, SW., Washington, DC, (202) 586-
2945, between 9 a.m. and 4 p.m., Monday through Friday, except Federal 
holidays. Available documents include the following items: (1) This 
notice; (2) public comments received; (3) the Petition for Waiver and 
Application for Interim Waiver; and (4) prior DOE rulemakings regarding 
central air conditioners and heat pumps. Please call Ms. Brenda 
Edwards-Jones at the above telephone number for additional information 
regarding visiting the Resource Room. Please note that DOE's Freedom of 
Information Reading Room (Room 1E-190 at the Forrestal Building) is no 
longer housing rulemaking materials.

FOR FURTHER INFORMATION CONTACT: Dr. Michael G. Raymond, U.S. 
Department of Energy, Building Technologies Program, Mail Stop EE-2J, 
Forrestal Building, 1000 Independence Avenue, SW., Washington, DC 
20585-0121. Telephone: (202) 586-9611. E-mail: 
[email protected].
    Francine Pinto or Eric Stas, U.S. Department of Energy, Office of 
the

[[Page 53238]]

General Counsel, Mail Stop GC-72, Forrestal Building, 1000 Independence 
Avenue, SW., Washington, DC 20585-0103. Telephone: (202) 586-9507. E-
mail: [email protected] or [email protected].

SUPPLEMENTARY INFORMATION:

Table of Contents

I. Background and Authority
II. Petition for Waiver
III. Application for Interim Waiver
IV. Alternate Test Procedure
V. Summary and Request for Comments

I. Background and Authority

    Title III of the Energy Policy and Conservation Act (EPCA) sets 
forth a variety of provisions concerning energy efficiency. Part B of 
Title III establishes the ``Energy Conservation Program for Consumer 
Products Other Than Automobiles.'' (42 U.S.C. 6291-6309) This notice 
involves residential products under Part B, and the statute 
specifically includes definitions, test procedures, labeling 
provisions, energy conservation standards, and the authority to require 
information and reports from manufacturers.
    With respect to test procedures, Part B generally authorizes the 
Secretary of Energy (the Secretary) to prescribe test procedures that 
are reasonably designed to produce results which reflect energy 
efficiency, energy use, and estimated annual operating costs, and that 
are not unduly burdensome to conduct. (42 U.S.C. 6293(b)(3))
    Relevant to the current Petition for Waiver, the test procedures 
for residential central air conditioners and central air conditioning 
heat pumps are set forth in 10 CFR Part 430, Subpart B, Appendix M. 
Section 323 of EPCA provides that the Secretary of Energy may amend 
test procedures for consumer products if the Secretary determines that 
amended test procedures would more accurately reflect energy 
efficiency, energy use or estimated annual operating costs, and are not 
unduly burdensome to conduct. (42 U.S.C. 6293(b)(1)(A) and (b)(3))
    DOE's regulations contain provisions allowing a person to seek a 
waiver from the test procedure requirements for covered products, for 
which the petitioner's basic model contains one or more design 
characteristics that prevent testing according to the prescribed test 
procedures, or when the prescribed test procedures may evaluate the 
basic model in a manner so unrepresentative of its true energy 
consumption as to provide materially inaccurate comparative data. 10 
CFR 430.27(a)(1). Petitioners must include in their petition any 
alternate test procedures known to evaluate the basic model in a manner 
representative of its energy consumption. 10 CFR 430.27(b)(1)(iii). The 
Assistant Secretary for Energy Efficiency and Renewable Energy (the 
Assistant Secretary) may grant the waiver subject to conditions, 
including adherence to alternate test procedures. 10 CFR 430.27(l). 
Waivers generally remain in effect until final test procedure 
amendments become effective, thereby resolving the problem that 
instigated the Petition for Waiver. 10 CFR 430.27(m).
    The waiver process also permits parties petitioning DOE for a 
waiver to apply for an Interim Waiver from the prescribed test 
procedure requirements. 10 CFR 430.27(a)(2). The Assistant Secretary 
will grant an Interim Waiver request if it is determined that the 
applicant will experience economic hardship if the Interim Waiver is 
denied, if it appears likely that the Petition for Waiver will be 
granted, and/or the Assistant Secretary determines that it would be 
desirable for public policy reasons to grant immediate relief pending a 
determination on the Petition for Waiver. 10 CFR 430.27(g). An Interim 
Waiver remains in effect for a period of 180 days or until DOE issues 
its determination on the Petition for Waiver, whichever is sooner, and 
may be extended for an additional 180 days, if necessary. 10 CFR 
430.27(h).

II. Petition for Waiver

    On December 9, 2005, Daikin filed a Petition for Waiver from the 
test procedures applicable to residential and commercial package air 
conditioning and heating equipment and an Application for Interim 
Waiver. The applicable test procedure for Daikin's residential VRV-II-S 
products is the DOE residential test procedure found in 10 CFR Part 
430, Subpart B, Appendix M. For Daikin's commercial VRV-II-S products, 
the applicable test procedure is also the residential test procedure 
found in Appendix M, because the same test is used for single-phase 
products with capacities less than 65,000 Btu/h.
    Daikin seeks a waiver from the DOE test procedures on the grounds 
that the VRV-II-S Series multi-split heat pump and heat recovery 
systems contain design characteristics that prevent testing according 
to the current DOE test procedures. Specifically, Daikin asserts that 
the two primary factors that prevent testing of multi-split variable 
speed products, regardless of manufacturer, are the same factors stated 
in the waiver that DOE granted to Mitsubishi Electric & Electronics 
USA, Inc. (Mitsubishi) for a similar line of commercial multi-splits:
     Testing laboratories cannot test products with so many 
indoor units.
     There are too many possible combinations of indoor and 
outdoor units to test. 69 FR 52660, 52661 (August 27, 2004).
    Further, Daikin states that although the VRV-II-S product line fits 
within the scope of the applicable DOE residential test procedure, the 
basic design is not commensurate with the intent of the test procedures 
for the reasons that follow. In particular, the test procedure does not 
provide for:
     The test procedure for a split system requires testing a 
combination of paired indoor and outdoor unit assemblies, but it does 
not include provisions for how the Daikin VRV-II-S product, with its 
thousands of indoor unit combinations, should be evaluated with just 
one outdoor unit test.
     The test procedure requires testing matched assemblies, 
but the Daikin VRV-II-S product is designed to be used in zoned systems 
where the capacity of the indoor units installed does not necessarily 
match the capacity of the outdoor unit.
     The Daikin VRV-II-S products are intended to be used in 
zoned systems where an outdoor unit can be connected with up to nine 
separated indoor units. Moreover, Daikin offers 83 indoor unit models. 
Each indoor unit is designed to be used with up to eight other indoor 
units, which may not be the same models, in combination with a single 
outdoor unit. Consequently, for each VRV-II-S outdoor unit, there could 
be thousands of possible combinations of indoor units that could be 
matched in a system configuration.
    Accordingly, Daikin requests that DOE grant a test procedure waiver 
for its VRV-II-S product designs, until a suitable test method can be 
prescribed. Furthermore, Daikin states that failure to grant the waiver 
would result in economic hardship because it would prevent the company 
from marketing its VRV-II-S products. Also, Daikin states that it is 
willing to work closely with DOE, the Air-Conditioning and 
Refrigeration Institute (ARI), and other agencies to develop 
appropriate test procedures, as necessary.

III. Application for Interim Waiver

    On December 9, 2005, in addition to its Petition for Waiver, Daikin 
submitted to DOE an Application for Interim Waiver. Daikin's 
Application for Interim Waiver does not provide sufficient information 
to evaluate the level of economic hardship Daikin will likely 
experience if its Application for Interim Waiver is denied. However, in 
those instances where the likely success of the

[[Page 53239]]

Petition for Waiver has been demonstrated, based upon DOE having 
granted a waiver for a similar product design, it is in the public 
interest to have similar products tested and rated for energy 
consumption on a comparable basis. DOE has previously granted Interim 
Waivers to Fujitsu and Samsung for comparable residential and 
commercial multi-split air conditioners and heat pumps. 70 FR 5980 
(Feb. 4, 2005); 70 FR 9629 (Feb. 28, 2005), respectively. In addition, 
as noted above, DOE approved the Petition for Waiver from Mitsubishi 
for its comparable line of commercial multi-split air conditioners and 
heat pumps. 69 FR 52660 (August 27, 2004). The two prevailing reasons 
for granting these waivers also apply to Daikin's VRV-II-S products: 
(1) Test laboratories cannot test products with so many indoor units 
\2\; and (2) it is impractical to test so many combinations of indoor 
units with each outdoor unit. Thus, DOE has determined that it is 
likely that Daikin's Petition for Waiver will be granted for its new 
VRV-II-S multi-split models. Hence, It is ordered that:
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    \2\ According to the Daikin petition, up to 17 indoor units are 
possible candidates for testing of its commercial multi-split air 
conditioners and heat pumps. However, DOE believes that the 
practical limits for testing would be about five units.
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    The Application for Interim Waiver filed by Daikin is hereby 
granted for Daikin's VRV-II-S multi-split central air conditioners and 
central air conditioning heat pumps, subject to the specifications and 
conditions below. The Interim Waiver applies to the following models:
    1. Daikin shall not be required to test or rate its VRV-II-S 
residential products on the basis of the currently applicable test 
procedure, which is set forth in 10 CFR Part 430, Subpart B, Appendix 
M; and
    2. Daikin shall be required to test and rate its VRV-II-S products 
according to the alternate test procedure as set forth in section 
IV(3), ``Alternate test procedure.''

Outdoor Units, Heat Pump-type

     RXYM4MVMT: 38,200 Btu/h cooling/ 42,600 Btu/h heating, 
single phase, 220 volts, 60 Hz
     RXYM5MVMT: 47,700 Btu/h cooling/ 54,600 Btu/h heating, 
single phase, 220 volts, 60 Hz
     RXYM6MVMT: 52,900 Btu/h cooling/ 61,400 Btu/h heating, 
single phase, 220 volts, 60 Hz

Indoor units

     FXC series, ceiling mounted cassette (double flow) type, 
FXC 20/25/32/40/50/63/80/125
     FXF series, ceiling mounted cassette (multi flow) type, 
FXF 25/32/40/50/63/80/100/125
     FXK series, ceiling mounted cassette (corner) type, FXK 
25/32/40/63
     FXD series, slim above ceiling mounted ducted type, FXD 
20/25/32/40/50/63
     FXYD series, low silhouette above ceiling mounted ducted 
type, FXYD 20/25/32/40/50 /63
     FXS series, built-in above ceiling mounted ducted type, 
FXS 20/25/32/40/50/63/80/100 /125
     FXM series, above ceiling mounted ducted type, FXM 40/50/
63/80/100/125
     FXH series, ceiling suspended type, FXH 32/63/100
     FXA series, wall mounted type, FXA 20/25/32/40/50/63
     FXL series, floor standing console type, FXL 20/25/32/40/
50/63
     FXN series, floor standing concealed type, FXN 20/25/32/
40/50/63
    This Interim Waiver is conditioned upon the presumed validity of 
statements, representations, and documentary materials provided by the 
petitioner. This Interim Waiver may be revoked or modified at any time 
upon a determination that the factual basis underlying the Petition for 
Waiver is incorrect, or DOE determines that the results from the 
alternate test procedure are unrepresentative of the basic models' true 
energy consumption characteristics.

IV. Alternate Test Procedure

    In response to two recent Petitions for Waiver from Mitsubishi, DOE 
specified an alternate test procedure to provide a basis from which 
Mitsubishi could test and make valid energy efficiency representations 
for its R410A CITY MULTI products, as well as for its R22 multi-split 
products. The Mitsubishi petitions, including the alternate test 
procedure, were published in the Federal Register on April 9, 2007. 72 
FR 17528, 17532. For similar reasons, DOE believes that alternate test 
procedures are necessary here.
    In general, DOE understands that existing testing facilities have a 
limited ability to test multiple indoor units at one time, and the 
number of possible combinations of indoor and outdoor units for some 
variable refrigerant flow zoned systems is impractical to test. We 
further note that subsequent to the waiver that DOE granted for 
Mitsubishi's R22 multi-split products, ARI formed a committee to 
discuss this issue and to work on developing an appropriate testing 
protocol for variable refrigerant flow systems. However, to date, no 
additional test methodologies have been adopted by the committee or 
submitted to DOE.
    Therefore, as discussed below, DOE is including an alternate test 
procedure as a condition in granting the Interim Waiver for Daikin's 
products, and plans to consider the same alternate test procedure in 
the context of the subsequent Decision and Order pertaining to Daikin's 
Petition for Waiver. Utilization of this alternative test procedure 
will allow Daikin to test and make energy efficiency representations 
for its VRV-II-S products. More broadly, DOE is also considering 
applying a similar alternate test procedure to other existing waivers 
for similar residential and commercial central air conditioners and 
heat pumps. Such cases include Samsung's Petition for Waiver for its 
multi-split products at 70 FR 9629 (Feb. 28, 2005), and Fujitsu's 
Petition for Waiver for its multi-split products at 70 FR 5980 (Feb. 4, 
2005). Similarly, DOE is considering use of this alternate test 
procedure for other products of this type for which manufacturers seek 
waivers, until such time as the DOE test procedure has been updated 
appropriately.
    In the present case, DOE is modifying the alternate test procedure 
in the above-referenced waiver granted to Mitsubishi for the R410A CITY 
MULTI products, and plans to consider inclusion of the following 
similar waiver language in the Decision and Order for Daikin's VRV-II-S 
multi-split air conditioner and heat pump models:
    (1) The ``Petition for Waiver'' filed by Daikin U.S. Corporation 
(Daikin) is hereby granted as set forth in the paragraphs below.
    (2) Daikin shall not be required to test or rate its variable 
refrigerant volume multi-split air conditioner and heat pump products 
listed in section III, above, on the basis of the currently applicable 
test procedure, but shall be required to test and rate such products 
according to the alternate test procedure as set forth in paragraph 
(3).
    (3) Alternate test procedure.
    (A) Daikin shall be required to test the products listed above 
according to the test procedures for central air conditioners and heat 
pumps prescribed by DOE at 10 CFR part 430, except that:
    (i) Daikin shall not be required to comply with: The first sentence 
in 10 CFR 430.24(m)(2), which refers to ``that combination manufactured 
by the condensing unit manufacturer likely to have the largest volume 
of retail sales;'' and the third sentence in 10 CFR 430(m)(2), 
including the provisions of 10 CFR 430(m)(2)(i) and (ii). Instead of 
testing the combinations likely to have the highest volume of retail 
sales,

[[Page 53240]]

Daikin may test a ``tested combination'' selected in accordance with 
the provisions of subparagraph (B) of this paragraph. Additionally, 
instead of following the provisions of 10 CFR 430(m)(2)(i) and (ii) for 
every other system combination using the same outdoor unit as the 
tested combination, Daikin shall make representations concerning the 
VRV-II-S products covered in this waiver according to the provisions of 
subparagraph (C) below.
    (ii) Daikin shall be required to comply with 10 CFR 430 Appendix M 
as amended in accordance with designated changes that are listed in the 
July 20, 2006 Federal Register notice. 71 FR 41320. These designated 
changes are with respect to the following test procedure sections: 2.1, 
2.2.3, 2.4.1, 3.2.4 (including Table 6), 3.6.4 (including Table 12), 
4.1.4.2, and 4.2.4.2.
    (B) Tested combination. The term ``tested combination'' means a 
sample basic model comprised of units that are production units, or are 
representative of production units, of the basic model being tested. 
For the purposes of this waiver, the tested combination shall have the 
following features:
    (i) The basic model of a variable refrigerant volume system used as 
a tested combination shall consist of an outdoor unit that is matched 
with between two and five indoor units.
    (ii) The indoor units shall:
    (a) Represent the highest sales volume type models;
    (b) Together, have a capacity between 95 percent and 105 percent of 
the capacity of the outdoor unit;
    (c) Not, individually, have a capacity greater than 50 percent of 
the capacity of the outdoor unit;
    (d) Have a fan speed that is consistent with the manufacturer's 
specifications; and
    (e) All have the same external static pressure.
    (C) Representations. Daikin may make representations about the 
energy efficiency of its variable refrigerant volume multi-split air 
conditioner and heat pump products, for compliance, marketing, or other 
purposes, only to the extent that such representations are made 
consistent with the provisions outlined below:
    (i) For multi-split combinations tested in accordance with this 
paragraph, Daikin may make representations based on these test results.
    (ii) For multi-split combinations that are not tested, Daikin may 
make representations which are based on the testing results for the 
tested combination and which are consistent with either of the two 
following methods, except that only method (a) may be used, if 
available:
    (a) Representation of non-tested combinations according to an 
alternative rating method approved by DOE; or
    (b) Representation of non-tested combinations at the same energy 
efficiency level as the tested combination with the same outdoor unit.

V. Summary and Request for Comments

    Through today's notice, DOE announces receipt of Daikin's Petition 
for Waiver from the test procedures applicable to Daikin's VRV-II-S 
multi-split air conditioner and heat pump products, and for the reasons 
articulated above, DOE is granting Daikin an Interim Waiver from those 
procedures. As part of this notice, DOE is publishing Daikin's Petition 
for Waiver in its entirety. The Petition contains no confidential 
information. Furthermore, today's notice includes an alternate test 
procedure that Daikin is required to follow as a condition of the 
Interim Waiver and which DOE is considering including in its subsequent 
Decision and Order. In this alternate test procedure, DOE is defining a 
``tested combination'' which Daikin could use in lieu of testing all 
retail combinations of its VRV-II-S multi-split air conditioner and 
heat pump products.
    Furthermore, should a subsequent manufacturer be unable to test all 
retail combinations, DOE is considering allowing such manufacturers to 
rate waived products according to an alternate rating method approved 
by DOE, or to rate waived products the same as that for the specified 
tested combination. DOE is also considering applying a similar 
alternate test procedure to other comparable Petitions for Waiver for 
residential and commercial central air conditioners and heat pumps. 
Such cases include Samsung's Petition for Waiver for its DVM products 
at 70 FR 9629 (Feb. 28, 2005), and Fujitsu's Petition for Waiver for 
its Airstage variable refrigerant flow products at 70 FR 5980 (Feb. 4, 
2005).
    DOE is interested in receiving comments on the issues addressed in 
this notice. Pursuant to 10 CFR 430.27(d), any person submitting 
written comments must also send a copy of such comments to the 
petitioner, whose contact information is included in the ADDRESSES 
section above.

    Issued in Washington, DC, on September 4, 2007.
Alexander A. Karsner,
Assistant Secretary, Energy Efficiency and Renewable Energy.
December 13, 2005

Hon. Douglas Faulkner, Acting Assistant Secretary for Energy 
Efficiency and Renewable Energy, Department of Energy 1000 
Independence Ave., SW., Washington, DC.
Re: Petition for Waiver of Test Procedures and Application for 
Interim Waiver for Daikin's ``VRV-II-S'' variable refrigerant volume 
multi-split heat pumps

    Dear Assistant Secretary Faulkner: Daikin U.S. Corporation (DUS) 
respectfully submits this document as our Petition for Waiver of 
Test Procedure and Application for Interim Waiver of Test Procedure 
applicable to our VRV-II-S product offering to the Department of 
Energy (DOE) for review and approval. This petition is submitted 
pursuant to the provisions of 10 CFR 431.29 on the grounds that the 
basic models addressed herein contain design characteristics which 
prevent testing according to prescribed procedures. This petition is 
being requested specifically for Daikin's VRV-II-S multi-split heat 
pump system incorporating variable speed compressor technology, 
variable refrigerant flow and multiple zoning capabilities.
    There are two primary factors that prevent the testing of multi-
split variable speed product regardless of manufacturer which are:
     Testing laboratories cannot test products with so many 
indoor units.
     There are too many possible combinations of indoor and 
outdoor units to test.
    The existing test standard that most closely relates to such 
product is ARI 210/240 (2003).

I. Background

    Daikin Industries Limited is a leading manufacturer of variable 
speed and Variable Refrigerant Volume (VRV) zoning systems which are 
offered for sale by DUS in the North American market. These products 
combine advanced technologies such as high efficiency variable speed 
compressors and fan motors along with electronic expansion valves 
and other devices to insure peak operating performance of the 
overall system. The systems are applied in both commercial and 
residential applications whereas zoning is applied to provide users 
with peak utility of the system and energy savings. The capacity of 
this DUS product offering ranges from 38,200 BTU/Hr to 52,900 BTU/
Hr.
    Our product offering (VRV-II-S) shares many of the same design 
and characteristic features as that of the City Multi product 
manufactured and distributed by Mitsubishi Electric and Electronics 
USA, Inc. (MEUS), of which DOE has granted a waiver as described in 
the Federal Register/Vol. 69, No. 166/Friday, August 27, 2004/
Notices, page 52,660. DOE granted MEUS' petition for waiver on the 
basis that (1) testing laboratories cannot test products with so 
many indoor units, and (2) there are too many possible combinations 
of indoor and

[[Page 53241]]

outdoor units to test, therefore preventing testing of the basic 
models according to prescribed test procedures. The VRV-II-S also 
shares many of the same design characteristics as that of the DVM 
product offered by Samsung Air Conditioning, of which DOE granted an 
interim waiver on February 28, 2005.
    An additional problem that prevents testing is the wide variety 
of indoor unit static pressure ratings available with these and 
other multi-split products. Testing facilities cannot effectively 
control multiple indoor static pressures that would be required with 
many of the indoor unit combinations available. To accomplish such 
testing a large number of test rooms would need to be utilized 
simultaneously, networked with data recording instrumentation and 
extensive piping configurations would need to be routed throughout 
the various test rooms. Obviously this process would be cost and 
time prohibitive.
    Daikin's VRV-II-S product offering consists of multiple indoor 
units being connected to an outdoor unit. Indoor units for these 
products are available in Ducted (with many different indoor static 
pressure ratings as standard), 4-Way Cassette, Wall Mounted, Ceiling 
Suspended, Floor Standing and other models. There are thousands of 
possible combinations with this current product offering.

II. Design Characteristics

    Daikin developed the ``VRV-II-S'' to respond to the needs of a 
truly energy efficient, easy to design and install air conditioning 
system that is also flexible, reliable and user friendly and capable 
to provide real zoning to residences, small offices and shops. 
Daikin has incorporated comprehensive cutting-edge technologies into 
the ``VRV-II-S,'' and the results are quieter operation, smaller 
units, and simpler maintenance with higher efficiencies.
    These compact 38,200 (4 HP); 47,700 (5 HP) and 52,900 (6 HP) 
BTU/h Variable Refrigerant Volume (VRV) multi-split systems consist 
of one outdoor unit, using a Reluctance DC scroll compressor with a 
sine wave DC inverter with truly variable refrigerant volume 
capacity serving multiple indoor units through a single piping set 
of gas and liquid lines and using headers or 'Refnets' for 
refrigerant distribution and electronic expansion valves.
    The ``VRV-II-S'' system enables a single outdoor unit to 
connects with up to 6 indoor units for the 4HP model; with up to 8 
indoor units for the 5 HP model and with up to 9 indoor units for 
the 6 HP model.
    The indoor units can be selected from 13 types with 83 models 
(included in item IV of this application), giving these systems 
thousands of possible installation combinations. The operation 
control system allows each indoor unit to have different set 
temperatures and different modes of operation.
    The Reluctance DC scroll compressor and the sine wave inverter 
maintain compressor operation at optimum performance allowing it to 
precisely match the cooling or heating load demand of the 
conditioned areas. The Reluctance DC scroll compressor is capable of 
slowing down to an operating capacity as little as 30% of its rated 
capacity and accelerating to up to 150% of its rated capacity 
allowing ti to install up to 130% indoor unit capacity to the 
outdoor unit capacity.

Grounds for the Petition

    Daikin seeks a waiver from the test procedures applicable to 
central air conditioners and heat pumps under Title III of the 
Energy Policy and Conservation Act (EPCA), Part B of Title III (42 
U.S.C. 6291-6309) Energy Conservation Program for Consumer Products 
other than Automobiles and 10 CFR 430 Energy Conservation Program 
for Consumer Products and Part C of Title III (42 U.S.C. 6311-6317) 
Energy Efficiency of Industrial Equipment and 10 CFR 431 Energy 
Efficiency Program for Certain Commercial and Industrial Equipment.
    In particular, Daikin seeks a waiver from the currently 
applicable test procedure provided in 10 CFR 430.23(m) central air 
conditioners and heat pumps and 10 CFR 430, Appendix M to Subpart B 
Uniform Test Method for Measuring the Energy Consumption of Central 
Air Conditioners and Heat Pumps.

III. Specific Requirements Sought to be Waived and the Need for the 
Waiver

    Daikin seeks a waiver from the applicable test procedures for 
``VRV-II-S,'' because the current test procedures would evaluate 
``VRV-II-S'' in a manner completely unrepresentative of its true 
energy consumption as to provide materially inaccurate competitive 
data. Below are the details of the two main reasons:
    (1) Specified test procedures for a split system call for 
testing a combination of paired indoor and outdoor unit assemblies 
for typical split systems to be tested together, but it does not 
include provisions on how the ``VRV-II-S'' with thousands of indoor 
unit combinations is to be evaluated with just one outdoor unit 
test.
    Test procedures for typical multi-split central air conditioning 
and heat pump systems (a combination of one outdoor unit and up to 
five indoor units) calls for all the indoor units operating at full 
capacity. This type of test, even though limited, can be impractical 
for these types of products since it is possible to match a defined 
standard combination of indoor units to one outdoor unit. ``VRV-II-
S'' does not have a standard representative combination of outdoor 
and indoor units for testing.
    ``VRV-II-S'' products are intended to be used in zoning systems 
where an outdoor unit can be connected from up to 9 separated indoor 
units in a zoned system. Moreover, we offer 83 indoor unit models. 
Each of these indoor unit models is designed to be used together 
with up to 8 other indoor units, which may not be the same models, 
in combination with a single outdoor unit. In other words, for each 
``VRV-II-S'' outdoor unit there are thousands of possible 
combinations of indoor units that can be matched in a system 
configuration.
    The current test procedure provides no direction for determining 
what combinations of outdoor unit and indoor units shall be tested 
for a variable refrigerant volume system. While a test procedure 
using a given number of indoor units (4, 5, 6 or more) whose total 
capacity matches that of the outdoor unit may be considered, the 
results will not entirely represent the system's true energy 
consumption characteristics. Because such a test procedure sets a 
condition to the ratings based on one test combination among 
thousands of possible combinations, they do not represent all system 
combinations and consumers may misread true energy consumption if 
their system configuration differs from the tested configuration.
    At the same time, it will be unduly burdensome for us to conduct 
tests of each possible combination and extremely impracticable. 
Therefore, the test procedure does not contemplate, and cannot 
practically be applied to Daikin's ``VRV-II-S'' consisting of 
multiple assemblies that are intended to be used in a very large 
number of different combinations.
    (2) The test procedure calls for testing `matched assemblies,' 
but ``VRV-II-S'' is designed to be used in zoning systems where the 
capacity of the indoor units installed does not necessarily match 
the capacity of the outdoor unit. In a typical split system the 
indoor and outdoor units are balanced and the capacity of the 
outdoor unit is equivalent to the capacity of the indoor unit. 
However, with ``VRV-II-S'' the sum of the capacity of the indoor 
units can be from 50% to 130% of the capacity of the outdoor unit. 
Such imbalanced combination of indoor units and outdoor units are 
possible because of the zoning and electronic controls 
characteristics of the system. For example, the use of electronic 
controls, electronic expansion valves and inverter driven scroll 
compressors allow the system to precisely control the volume of 
refrigerant needed in each of the indoor units in accordance with 
the particular load and set points of that indoor unit. This is 
possible because of the advanced control system utilizing digital 
communication between all the components of the system for overall 
system control. The test procedure specified in 10 CFR 430.23(m) is 
for matched assemblies and does not address testing for 
substantially unbalanced systems.
    For these reasons, the existing test procedures would evaluate 
``VRV-II-S'' in a manner so unrepresentative of its true energy 
consumption as to result in materially inaccurate competitive data.
    It was only recently that variable refrigerant volume systems 
were introduced into the United States market. Previous and current 
test procedures have not been developed for these products that 
would reflect their real energy consumption and their extraordinary 
efficiency as of this date. But, without a waiver of the test 
procedures for variable refrigerant volume systems like ``VRV-II-
S,'' we will be at a competitive disadvantage in the market and 
consumers will be deprived of using this remarkably efficient 
technology.
    In accordance with 42 U.S.C. 6293(c) and 42 U.S.C. 6314(d) of 
EPCA if there is an acceptable test procedure for a covered product, 
the manufacturer is prohibited from making representations about the 
energy

[[Page 53242]]

consumption of its equipment unless the equipment has been tested in 
accordance with such test procedures and the representation fairly 
discloses the result of the testing. Therefore Daikin is at a 
disadvantage in our ability to provide information on energy 
consumption of the ``VRV-II-S'' to our customers.

IV. Identification of the Basic Models

    Daikin seeks a waiver from the test procedures for ``VRV-II-S,'' 
variable refrigerant volume multi-split heat pump systems, listed 
below:

Outdoor unit, Heat Pump type

     RXYM4MVMT; 38,200 BTU/h cooling/ 42,600 BTU/h heating, 
single phase, 220 Volts, 60 Hz
     RXYM5MVMT; 47,700 BTU/h cooling/ 54,600 BTU/h heating, 
single phase, 220 Volts, 60 Hz
     RXYM6MVMT; 52,900 BTU/h cooling/ 61,400 BTU/h heating, 
single phase, 220 Volts, 60 Hz

Indoor units

     FXC series, Ceiling mounted cassette (double flow) 
type, FXC 20/25/32/40/50/63/80/125
     FXF series, Ceiling mounted cassette (multi flow) type, 
FXF 25/32/40/50/63/80/100/125
     FXK series, Ceiling mounted cassette (corner) type, FXK 
25/32/40/63
     FXD series, Slim above ceiling mounted ducted type, FXD 
20/25/32/40/50/63
     FXYD series, Low silhouette above ceiling mounted 
ducted type, FXYD 20/25/32/40/50/63
     FXS series, Built-in above ceiling mounted ducted type, 
FXS 20/25/32/40/50/63/80/100/125
     FXM series, Above ceiling mounted ducted type, FXM 40/
50/63/80/100/125
     FXH series, Ceiling suspended type, FXH 32/63/100
     FXA series, Wall mounted type, FXA 20/25/32/40/50/63
     FXL series, Floor standing console type, FXL 20/25/32/
40/50/63
     FXN series, Floor standing concealed type, FXN 20/25/
32/40/50/63
    Note: All the above series have engineering differences among 
the series.

IV. Identification of the Manufacturers of All Other Basic Models

    At the present time Variable refrigerant volume (flow) multi-
split air conditioning and heat pumps are proposed in the United 
States by Mitsubishi Electric and Electronics USA Inc., Samsung 
Electronic Company, Ltd. and Fujitsu General Limited, the first two 
companies apply most of their products to commercial and industrial 
use; Fujitsu's ``Airstage'' system is applied in residential and 
commercial use. (Fujitsu filed FR Doc. 05-2184 on 2-3-05 for a 
waiver for a similar product)

V. Alternate Test Procedures

    There are no alternative test procedures available within the 
United States that provide a means to test and to rate the 
performance of such variable speed, multi-split, multi-zone product 
types. The Engineering Committee of ARI's Ductless Section is 
actively working to evaluate and develop possible methods to provide 
testing and rating of such systems. Daikin is involved in this 
project in an effort to speed the process.

VI. Manufacturers of Similar Models Incorporating the Same Design 
Characteristics

    Manufacturers of similar product within the United States market 
are:
     Samsung Electronics Co., Ltd.
     Sanyo Fisher (USA) Corp.
     Mitsubishi Electric & Electronics USA, Inc.
     Fujitsu General America
     LG Electronics USA, Inc.

VII. Application for Interim Waiver

    Under the direction of 10 CFR 431.29, Daikin U.S. Corporation 
also submits this document as an Application for Interim Waiver of 
Test Procedures applicable to the VRV-II-S models as listed 
previously. Such approval of Interim Waiver will provide Daikin with 
an opportunity to compete in the market during which time DOE 
reviews our Petition for Waiver of Test Procedure for the VRV-II-S 
product.
    Daikin U.S. believes that there is a high likelihood of success 
that our Petition for Waiver will be approved based on the grounds 
that DOE has issued a Waiver from Test Standards for product that is 
very similar in design and operation to that of the VRV-II-S 
product. Such approvals are evidenced as follows:
     DOE has issued a Waiver from Test Standards for product 
of very similar characteristics:
    [cir] City Multi product marketed by Mitsubishi Electric & 
Electronics USA, Inc., as approved in the Federal Register/Vol. 69, 
No. 166/Friday, August 27, 2004/Notices, page 52,660.
     DOE has issued an Interim Waiver from Test procedures 
to Samsung on February 28, 2005.
     Testing laboratories cannot test products with so many 
indoor units.
     There are too many possible combinations of indoor and 
outdoor units to test.
    Failure to approve such Interim Waiver from Test Procedure will 
inhibit Daikin's ability to compete in the marketplace even though 
our VRV-II-S product has the same basic design characteristics as 
that of other manufacturers currently under waiver. The VRV-II-S 
models, for which this Interim Waiver is requested, comprise a 
significant portion of our total product offering. An inability to 
market such products would result in an economic hardship due to 
lost revenue and breadth of product offering available to attract 
customers.

VIII. Conclusion

    Daikin seeks a waiver of current test procedures established in 
10 CFR 430.23(m) Central Air Conditioners and Heat Pumps (including 
the new version published in the Federal Register dated October 11, 
2005 [Docket No. EE-RM/TP-97-440] RIN 1904-AA46) and 10 CFR 430.27 
Appendix M to Subpart B Uniform Test Method for Measuring the Energy 
Consumption of Central Air Conditioners and Heat Pumps for 
Residential Uses and ARI 210/240 (1989), ARI 210/240 (1994) and ARI 
210/240 (2003) for commercial uses.
    This is necessary because the test procedures in use and 
approved evaluate the basic models in a manner that is not 
representative of the true energy consumption characteristics of the 
``VRV-II-S.'' Using such test methods as those outlined in ARI 210/
240 will result in materially inaccurate competitive data.
    As ruled in the Federal Register (page 52,660, Vol. 69, no. 166/
Friday, August 27, 2004/Notices) DOE has previously concluded that 
the testing of product with the same design characteristics of 
Daikin's VRV-II-S product is not feasible under currently 
established test methods as a result of:
     ``Test laboratories cannot test products with so many 
indoor units''
     ``And there are too many possible combinations of 
indoor and outdoor units to test.''
    Daikin U.S. Corporation respectfully asks the Department of 
Energy to recognize the technologies incorporated into this advanced 
heating and cooling product and allow us to market such product by 
granting our request for waiver. Daikin will work with stakeholders, 
U.S. Department of Energy, Air Conditioning and Refrigeration 
Institute, the American Society of Heating, Refrigeration and Air-
Conditioning Engineers, Inc. and others, through the process of 
developing test procedures suitable for products using variable 
refrigerant volume (flow) systems.
    Failure to receive such waiver or exemption from test standards 
would prevent Daikin U.S. from marketing our products even though 
DOE has previously granted waiver for other products currently in 
the market with similar design characteristics.
    We would be pleased to respond to any questions you may have 
regarding this Petition for Waiver of Test Procedure. Please direct 
such questions or comments to Raul Esparza, Vice President of Latin 
American Operations at 305-596-4344 or by email at 
[email protected].
    Sincerely,
Yoshinobu Inoue,
President, Daikin U.S. Corporation, 475 Fifth Avenue, 18th Floor, 
New York, NY 10017.

 [FR Doc. E7-18340 Filed 9-17-07; 8:45 am]
BILLING CODE 6450-01-P