[Federal Register Volume 73, Number 4 (Monday, January 7, 2008)]
[Notices]
[Pages 1207-1213]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-12]


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DEPARTMENT OF ENERGY

Office of Energy Efficiency and Renewable Energy

[Case No. CAC-019]


Energy Conservation Program for Commercial Equipment: Publication 
of the Petition for Waiver From Daikin AC (Americas), Inc. and Granting 
of the Application for Interim Waiver From the Department of Energy 
Commercial Package Air Conditioner and Heat Pump Test Procedure

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 AC (Americas), Inc. (Daikin). The Petition for 
Waiver (hereafter ``Daikin Petition'') requests a waiver of the 
Department of Energy (DOE) test procedure applicable to commercial 
package air-cooled central air conditioners and heat pumps. The waiver 
request is specific to the Daikin variable speed and variable 
refrigerant volume (VRV-III) (commercial) 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) announcing our determination to grant an Interim Waiver to 
Daikin from the applicable DOE test procedure for the subject 
commercial air-cooled, multi-split air conditioners and heat pumps.

DATES: DOE will accept comments, data, and information with respect to 
the Daikin Petition until, but no later than February 6, 2008.

ADDRESSES: You may submit comments, identified by case number ``CAC-
018,'' 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-019], 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/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, 950 L'Enfant 
Plaza, SW., Suite 600, Washington, DC 20024. 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 431.401(d). The 
contact information for the petitioner is: Mr. Russell Tavolacci, 
Director of Product Marketing, Daikin AC (Americas), Inc., 1645 Wallace 
Drive, Suite 110, Carrollton, TX 75006. Telephone: (972) 245-1510. E-
mail: [email protected].
    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 background documents 
relevant to this matter, you may visit the U.S. Department of Energy, 
950 L'Enfant Plaza, SW., (Resource Room of the Building Technologies 
Program), Washington, DC 20024; (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 similar central 
air conditioning and heat pump equipment. Please call Ms. Brenda 
Edwards-Jones at the above telephone number for additional information 
regarding visiting the Resource Room.

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].
    Ms. Francine Pinto or Mr. Eric Stas, U.S. Department of Energy, 
Office of the 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

[[Page 1208]]

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 provides for the ``Energy Conservation Program for Consumer 
Products Other Than Automobiles.'' (42 U.S.C. 6291-6309) Part C of 
Title III provides for an energy efficiency program entitled ``Certain 
Industrial Equipment,'' which is similar to the program in Part B, and 
which includes commercial air conditioning and heating equipment, 
packaged boilers, water heaters, and other types of commercial 
equipment. (42 U.S.C. 6311-6317)
    This notice involves commercial equipment under Part C. Part C 
specifically includes definitions (42 U.S.C. 6311), test procedures (42 
U.S.C. 6314), labeling provisions (42 U.S.C. 6315), energy conservation 
standards (42 U.S.C 6313), and the authority to require information and 
reports from manufacturers (42 U.S.C. 6316). With respect to test 
procedures, it 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. 6314(a)(2))
    For commercial package air-conditioning and heating equipment, EPCA 
provides that ``the test procedures shall be those generally accepted 
industry testing procedures or rating procedures developed or 
recognized by the Air-Conditioning and Refrigeration Institute [ARI] or 
by the American Society of Heating, Refrigerating and Air-Conditioning 
Engineers [ASHRAE], as referenced in ASHRAE/IES Standard 90.1 and in 
effect on June 30, 1992.'' (42 U.S.C. 6314(a)(4)(A)) Under 42 U.S.C. 
6314(a)(4)(B), the statute further directs the Secretary to amend the 
test procedure for a covered commercial product if the industry test 
procedure is amended, unless the Secretary determines that such a 
modified test procedure does not meet the statutory criteria set forth 
in 42 U.S.C. 6314(a)(2) and (3).
    On December 8, 2006, DOE published a final rule adopting test 
procedures for commercial package air-conditioning and heating 
equipment, effective January 8, 2007. 71 FR 71340. DOE adopted ARI 
Standard 340/360-2004, ``Performance Rating of Commercial and 
Industrial Unitary Air-Conditioning and Heat Pump Equipment,'' for 
small and large commercial package air-cooled heat pumps with 
capacities >=65,000 Btu/h and <760,000 British thermal units per hour 
(Btu/h). Id. at 71370. Pursuant to this rulemaking, DOE's regulations 
at 10 CFR 431.95(b)(2) incorporate by reference the relevant ARI 
Standard, and Table 1 to 10 CFR 431.96 directs manufacturers of 
commercial package air-cooled air conditioning and heating equipment to 
use the appropriate procedure when measuring energy efficiency of those 
products. (The cooling capacities of Daikin's commercial VRV-III multi-
split heat pump products range from 72,000 Btu/hr to 240,000 Btu/hr, 
thereby resulting in these products falling within the range covered by 
ARI Standard 340/360-2004.)
    In addition, DOE's regulations contain provisions allowing a person 
to seek a waiver from the test procedure requirements for covered 
commercial equipment, for which the petitioner's basic model contains 
one or more design characteristics which prevent testing according to 
the prescribed test procedures, or if 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 431.401(a)(1). The waiver provisions for commercial 
equipment are found at 10 CFR 431.401 and are substantively identical 
to those for covered consumer products. 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 431.401(b)(1)(iii). The Assistant Secretary for Energy Efficiency 
and Renewable Energy (Assistant Secretary) may grant a waiver subject 
to conditions, including adherence to alternate test procedures. 10 CFR 
431.401(f)(4). In general, a waiver terminates on the effective date of 
a final rule, published in the Federal Register, which prescribes 
amended test procedures appropriate to the model series manufactured by 
the petitioner, thereby eliminating any need for the continuation of 
the waiver. 10 CFR 431.401(g).
    The waiver process also allows any person who has submitted a 
Petition for Waiver to file an Application for Interim Waiver of the 
applicable test procedure requirements. 10 CFR 431.401(a)(2). The 
Assistant Secretary will grant an Interim Waiver request if it is 
determined that the applicant will experience economic hardship if the 
Application for 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 431.401(e)(3). An Interim Waiver remains in effect for a 
period of 180 days or until DOE issues its determination on the 
Petition for Waiver, whichever occurs first, and it may be extended by 
DOE for an additional 180 days, if necessary. 10 CFR 431.401(e)(4).

II. Petition for Waiver

    On August 31, 2007, Daikin filed a Petition for Waiver from the 
test procedures at 10 CFR 431.96 which are applicable to commercial 
package air-cooled heat pumps and an Application for Interim Waiver. As 
noted above, the applicable test procedure for Daikin's commercial VRV-
III multi-split heat pumps is ARI Standard 340/360-2004, which 
manufacturers are directed to use pursuant to Table 1 of 10 CFR 431.96. 
The capacities of the Daikin VRV-III multi-split heat pumps range from 
72,000 Btu/hr to 240,000 Btu/hr. Accordingly, the applicable test 
procedure for all these sizes is ARI Standard 340/360-2004.\1\
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    \1\ Daikin's Petition mistakenly requested a waiver from ARI 
210/240-2006. The capacities of the products for which the waiver is 
requested are not in the range covered by ARI 210/240. ARI 340/360-
2004 is the test procedure relevant to the Daikin Petition.
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    Daikin seeks a waiver from the applicable test procedures under 10 
CFR 431.96 on the grounds that its VRV-III multi-split heat pumps 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 waivers that DOE granted to Mitsubishi 
Electric & Electronics USA, Inc. (Mitsubishi) for a similar line of 
commercial multi-split air-conditioning systems:
     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 52661 (August 27, 2004); 72 FR 17528 (April 9, 2007); 72 FR 
71383 (December 17, 2007); 72 FR 71387 (December 17, 2007).
    Further, Daikin states that its VRV-III indoor units have nine 
different indoor static pressure ratings, and the test procedure does 
not provide for operation of indoor units at several different static 
pressure ratings during a single test. The indoor units are designed to 
operate at many different

[[Page 1209]]

external static pressure values, which compounds the difficulty of 
testing. The number of connectable indoor units for each outdoor unit 
ranges up to 64. A testing facility could not manage proper airflow at 
several different external static pressure values to the many indoor 
units that would be connected to a VRV-III outdoor unit. Daikin further 
states that its VRV-III products' capability to perform simultaneous 
heating and cooling is not captured by the DOE test procedure. This is 
true, but not relevant. DOE is required by EPCA to use the full-load 
descriptor EER for these products, and simultaneous heating and cooling 
does not occur when operating at full load.
    Accordingly, Daikin requests that DOE grant a waiver from the 
applicable test procedures for its VRV-III product designs, until a 
suitable test method can be prescribed. DOE believes that there is no 
substantive difference between the Mitsubishi and Daikin equipment 
which would preclude it from granting the same waiver to both. 
Furthermore, Daikin states that failure to grant the waiver would 
result in economic hardship because it would prevent the company from 
marketing its VRV-III products. Also, Daikin states that it is willing 
to work closely with DOE, ARI, and other agencies to develop 
appropriate test procedures, as necessary.

III. Application for Interim Waiver

    On August 31, 2007, 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 Petition for Waiver has 
been demonstrated, based upon DOE having granted a waiver for similar 
product designs, 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 Mitsubishi, Fujitsu, and Samsung 
for comparable commercial multi-split air conditioners and heat pumps. 
72 FR 17533 (April 9, 2007), 70 FR 5980 (Feb. 4, 2005), 70 FR 9629 
(Feb. 28, 2005), respectively.
    Moreover, as noted above, DOE approved the Petition for Waiver from 
Mitsubishi, Fujitsu, and Samsung for their comparable lines of multi-
split air conditioners and heat pumps. 72 FR 17528 (April 9, 2007); 72 
FR 71383 (Dec. 17, 2007); 72 FR 71387 (Dec. 17, 2007). The two 
principal reasons for granting the waivers also apply to Daikin's VRV-
III 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-III multi-split models. Therefore, it is ordered that:
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    \2\ According to the Daikin petition, up to 64 indoor units are 
possible candidates for testing of its commercial package multi-
split heat pump and heat recovery systems. 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-III air-cooled multi-split 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-III 
commercial air-cooled multi-split products on the basis of the 
currently applicable test procedure under 10 CFR 431.96, which 
incorporates by reference ARI Standard 340/360-2004.
    2. Daikin shall be required to test and rate its VRV-III commercial 
air-cooled multi-split products according to the alternate test 
procedure as set forth in section IV(3), ``Alternate test procedure.''
VRV-III Series Outdoor Units:
    460V/3-phase/60Hz Models:

    [cir] Heat Pump models RXYQ72PYDN, RXYQ96PYDN, RXYQ120PYDN, 
RXYQ144PYDN, RXYQ168PYDN, RXYQ192PYDN, RXYQ216PYDN, RXYQ240PYDN with 
nominally rated cooling capacities of 72,000, 96,000, 120,000, 144,000, 
168,000, 192,000, 216,000, and 240,000, respectively.
    [cir] Heat Recovery models REYQ72PYDN, REYQ96PYDN, REYQ120PYDN, 
REYQ144PYDN (2x REMQ72PYDN), REYQ168PYDN (1x REMQ96PYDN + 1x 
REMQ72PYDN), REYQ192PYDN (1x REMQ120PYDN + 1x REMQ72PYDN), REYQ216PYDN 
(1x REMQ120PYDN + 1x REMQ96PYDN), REYQ240PYDN (2x REMQ120PYDN) with 
nominally rated cooling capacities of 72,000, 96,000, 120,000, 144,000, 
168,000, 192,000, 216,000, and 240,000 respectively.

    208-230V/3-phase/60Hz Models:

    [cir] Heat Pump models RXYQ72PTJU, RXYQ96PTJU, RXYQ120PTJU, 
RXYQ144PTJU, RXYQ168PTJU, RXYQ192PTJU, RXYQ216PTJU, RXYQ240PTJU with 
nominally rated cooling capacities of 72,000, 96,000, 120,000, 144,000, 
168,000, 192,000, 216,000, and 240,000 respectively.
    [cir] Heat Recovery models REYQ72PTJU, REYQ96PTJU, REYQ120PTJU, 
REYQ144PTJU, REYQ168PTJU (1x REMQ96PTJU + 1x REMQ72PTJU), REYQ192PTJU 
(1x REMQ120PTJU + 1x REMQ72PTJU), REYQ216PTJU (1x REMQ120PTJU + 1x 
REMQ96PTJU), REYQ240PTJU (2x REMQ120PTJU) with nominally rated cooling 
capacities of 72,000, 96,000, 120,000, 144,000, 168,000, 192,000, 
216,000, and 240,000 respectively.

    Compatible Indoor Units for Above-Listed Outdoor Units:

    [cir] FXAQ Series all mounted indoor units with nominally rated 
capacities of 7,500, 9,500, 12,000, 18,000 and 24,000 BTU/Hr.
    [cir] FXLQ Series floor mounted indoor units with nominally rated 
capacities of 7,500, 9,500, 12,000, 18,000 and 24,000 BTU/Hr.
    [cir] FXNQ Series concealed floor mounted indoor units with 
nominally rated capacities of 7,500, 9,500, 12,000, 18,000 and 24,000 
BTU/Hr.
    [cir] FXDQ Series low static ducted indoor units with nominally 
rated capacities of 7,500, 9,500, 12,000, 18,000 and 24,000 BTU/Hr.
    [cir] FXSQ Series medium static ducted indoor units with nominally 
rated capacities of 7,500, 9,500, 12,000, 18,000, 24,000, 30,000, 
36,000, 48,000, 72,000 and 96,000 BTU/Hr.
    [cir] FXMQ Series high static ducted indoor units with nominally 
rated capacities of 18,000, 24,000, 30,000, 36,000 48,000, 72,000 and 
96,000 BTU/Hr.
    [cir] FXZQ Series recessed cassette indoor units with nominally 
rated capacities of 7,500, 9,500, 12,000, 15,000 and 18,000 BTU/Hr.
    [cir] FXFQ Series recessed cassette indoor units with nominally 
rated capacities of 12,000, 18,000, 24,000, 30,000 and 36,000 BTU/Hr.
    [cir] FXHQ Series ceiling suspended indoor units with nominally 
rated capacities of 12,000, 24,000 and 36,000 BTU/Hr.
    [cir] FXOQ Series ceiling suspended indoor units with nominally 
rated capacities of 12,000, 18,000, 24,000, 30,000, 36,000, 42,000 and 
48,000 BTU/Hr.
    [cir] FXMQ-MF Series concealed ducted indoor units with nominally 
rated capacities of 48,000, 72,000, and 96,000 BTU/Hr.
    This Interim Waiver is conditioned upon the presumed validity of 
statements, representations, and documents provided by the petitioner. 
DOE may revoke or modify this Interim Waiver at any time upon a 
determination that the factual basis

[[Page 1210]]

underlying the Petition for Waiver is incorrect, or upon a 
determination 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. Alternate test procedures related to the Mitsubishi petitions 
were published in the Federal Register on April 9, 2007. 72 FR 17528; 
72 FR 17533.
    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 the 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. The ARI committee has considered a draft ISO 
methodology, ISO CD 15042, for multi-split systems. However, it 
contains no guidance that would affect this waiver.
    Therefore, as discussed below, DOE is including a similar 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 
alternate test procedure will allow Daikin to test and make energy 
efficiency representations for its VRV-III 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 72 FR 71387 (Dec. 17, 2007), 
and Fujitsu's Petition for Waiver for its multi-split products at 72 FR 
71383 (Dec. 17, 2007). As noted above, the alternate test procedure has 
been applied to Mitsubishi's Petition for Waiver for its R410A CITY 
MULTI and R22 and R410A multi-split products. 72 FR 17528 (April 9, 
2007). DOE believes that an alternate test procedure is needed so that 
manufacturers of such products can make valid and consistent 
representations of energy efficiency for their air-conditioning and 
heat pump products.
    In the present case, DOE is modifying the alternate test procedure 
taken from the above-referenced waiver granted to Mitsubishi for its 
R410A and R22 CITY MULTI products, and plans to consider inclusion of 
the following similar waiver language in the Decision and Order for 
Daikin's VRV-III commercial multi-split air-cooled heat pump models:
    (1) The ``Petition for Waiver'' filed by Daikin AC (Americas), Inc. 
is hereby granted as set forth in the paragraphs below.
    (2) Daikin shall not be required to test or rate its VRV-III 
variable refrigerant volume multi-split heat pump products listed above 
in section III, on the basis of the currently applicable test 
procedures, 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 in section 
III above according to the test procedures for central air conditioners 
and heat pumps prescribed by DOE at 10 CFR 431.96, except that Daikin 
shall test a ``tested combination'' selected in accordance with the 
provisions of subparagraph (B) of this paragraph. For every other 
system combination using the same outdoor unit as the tested 
combination, Daikin shall make representations concerning the VRV-III 
products covered in this waiver according to the provisions of 
subparagraph (C) below.
    (B) Tested combination means a multi-split system with multiple 
indoor coils having the following features:
    (1) The basic model of a system used as a tested combination shall 
consist of one outdoor unit, with one or more compressors, that is 
matched with between 2 and 5 indoor units; for multi-split systems, 
each of these indoor units shall be designed for individual operation.
    (2) The indoor units shall--
    (i) Represent the highest sales model family, or another indoor 
model family if the highest sales model family does not provide 
sufficient capacity (see ii);
    (ii) Together, have a nominal capacity that is between 95% and 105% 
of the nominal capacity of the outdoor unit;
    (iii) Not, individually, have a capacity that is greater than 50% 
of the nominal capacity of the outdoor unit;
    (iv) Operate at fan speeds that are consistent with the 
manufacturer's specifications; and
    (v) All be subject to the same minimum external static pressure 
requirement while being configurable to produce the same static 
pressure at the exit of each outlet plenum when manifolded as per 
section 2.4.1 of 10 CFR Part 430, Subpart B, Appendix M.
    (C) Representations. In making representations about the energy 
efficiency of its VRV-III variable speed and variable refrigerant 
volume air-cooled multi-split heat pump and heat recovery system 
products, for compliance, marketing, or other purposes, Daikin must 
fairly disclose the results of testing under the DOE test procedure, 
doing so in a manner consistent with the provisions outlined below:
    (i) For VRV-III combinations tested in accordance with this 
alternate test procedure, Daikin must disclose these test results.
    (ii) For VRV-III combinations that are not tested, Daikin must make 
a disclosure based on the testing results for the tested combination 
and which is 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 (ARM) 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 the Daikin 
Petition for Waiver from the test procedures applicable to Daikin's 
VRV-III commercial multi-split 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 its 
Interim Waiver and that 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-III multi-split 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 ARM

[[Page 1211]]

approved by DOE, or to rate waived products the same as the specified 
tested combination with the same outdoor unit. 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 Digital Variable Multi (DVM) products at 72 FR 71387 
(Dec. 17, 2007), and Fujitsu's Petition for Waiver for its Airstage 
variable refrigerant flow products at 72 FR 71383 (Dec. 17, 2007).
    DOE is interested in receiving comments on the issues addressed in 
this notice. Pursuant to 10 CFR 431.401(d), any person submitting 
written comments must also send a copy of such comments to the 
petitioner, whose contact information is included in the section 
entitled ADDRESSES section above.

    Issued in Washington, DC, on December 27, 2007.
Alexander A. Karsner,
Assistant Secretary, Energy Efficiency and Renewable Energy.
August 31, 2007.

Mr. Alexander Karsner,
Assistant Secretary for Energy Efficiency and Renewable Energy, U.S. 
Department of Energy, 1000 Independence Ave, SW., Washington, DC 
20585-0121.

Re: Petition for Waiver of Test Procedure

    Dear Assistant Secretary Karsner: Daikin AC (Americas) Inc. 
(DACA) respectfully petitions the Department of Energy (DOE) 
pursuant to 10 CFR. Sec. Sec.  430.27(a)(1) and 431.401(a)(1) for 
waivers of the test procedures applicable to residential and 
commercial package air conditioners and heat pumps, as established 
in ARI Standard 210/240-2006 and ARI Standard 340/360-2004,\1\ for 
DACA's variable speed compressor driven air-cooled multi-split 
systems for combinations exceeding two indoor units to a single 
outdoor unit. The specific systems for which DACA requests these 
waivers are in DACA's VRV-III product classes. The specific models 
subject to the waiver requests are listed below. The basis for 
DACA's requests is that the basic model contains design criteria 
that prevent testing of the basic models according to the prescribed 
test procedures. We are simultaneously requesting an interim waiver 
for the same systems pursuant to 10 CFR Sec. Sec.  430.27(a)(2) and 
431.401(a)(2).
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    \1\ Detailed citations to the test procedures for which DACA is 
requesting a waiver are included on page 4 of this petition.
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Particular Basic Models for Which a Waiver Is Requested

    DACA requests a waiver from the test procedures for the 
following particular basic models:

VRV-III

     VRV III Series Outdoor Units:

460V/3-phase/60Hz Models:

    Heat Pump models RXYQ72PYDN, RXYQ96PYDN, RXYQ120PYDN, 
RXYQ144PYDN, RXYQ168PYDN, RXYQ192PYDN, RXYQ216PYDN, RXYQ240PYDN with 
nominally rated cooling capacities of 72,000, 96,000, 120,000, 
144,000, 168,000, 192,000, 216,000, and 240,000, respectively.
    Heat Recovery models REYQ72PYDN, REYQ96PYDN, REYQ120PYDN, 
REYQ144PYDN (2x REMQ72PYDN), REYQ168PYDN (1x REMQ96PYDN + 1x 
REMQ72PYDN), REYQ192PYDN (1x REMQ120PYDN + 1x REMQ72PYDN), 
REYQ216PYDN (1x REMQ120PYDN + 1x REMQ96PYDN), REYQ240PYDN (2x 
REMQ120PYDN) with nominally rated cooling capacities of 72,000, 
96,000, 120,000, 144,000, 168,000, 192,000, 216,000, and 240,000, 
respectively.

208-230V/3-phase/60Hz Models:

    Heat Pump models RXYQ72PTJU, RXYQ96PTJU, RXYQ120PTJU, 
RXYQ144PTJU, RXYQ168PTJU, RXYQ192PTJU, RXYQ216PTJU, RXYQ240PTJU with 
nominally rated cooling capacities of 72,000, 96,000, 120,000, 
144,000, 168,000, 192,000, 216,000, and 240,000, respectively.
    Heat Recovery models REYQ72PTJU, REYQ96PTJU, REYQ120PTJU, 
REYQ144PTJU, REYQ168PTJU (1x REMQ96PTJU + 1x REMQ72PTJU), 
REYQ192PTJU (1x REMQ120PTJU + 1x REMQ72PTJU), REYQ216PTJU (1x 
REMQ120PTJU + 1x REMQ96PTJU), REYQ240PTJU (2x REMQ120PTJU) with 
nominally rated cooling capacities of 72,000, 96,000, 120,000, 
144,000, 168,000, 192,000, 216,000, and 240,000, respectively.

 Compatible Indoor Units for Above Listed Outdoor Units:

    FXAQ Series all mounted indoor units with nominally rated 
capacities of 7,500, 9,500, 12,000, 18,000 and 24,000 BTU/Hr.
    FXLQ Series floor mounted indoor units with nominally rated 
capacities of 7,500, 9,500, 12,000, 18,000 and 24,000 BTU/Hr.
    FXNQ Series concealed floor mounted indoor units with nominally 
rated capacities of 7,500, 9,500, 12,000, 18,000 and 24,000 BTU/Hr.
    FXDQ Series low static ducted indoor units with nominally rated 
capacities of 7,500, 9,500, 12,000, 18,000 and 24,000 BTU/Hr.
    FXSQ Series medium static ducted indoor units with nominally 
rated capacities of 7,500, 9,500, 12,000, 18,000, 24,000, 30,000, 
36,000, 48,000, 72,000 and 96,000 BTU/Hr.
    FXMQ Series high static ducted indoor units with nominally rated 
capacities of 18,000, 24,000, 30,000, 36,000 48,000, 72,000 and 
96,000 BTU/Hr.
    FXZQ Series recessed cassette indoor units with nominally rated 
capacities of 7,500, 9,500, 12,000, 15,000 and 18,000 BTU/Hr.
    FXFQ Series recessed cassette indoor units with nominally rated 
capacities of 12,000, 18,000, 24,000, 30,000 and 36,000 BTU/Hr.
    FXHQ Series ceiling suspended indoor units with nominally rated 
capacities of 12,000, 24,000 and 36,000 BTU/Hr.
    FXOQ Series ceiling suspended indoor units with nominally rated 
capacities of 12,000, 18,000, 24,000, 30,000, 36,000, 42,000 and 
48,000 BTU/Hr.
    FXMQ-MF Series concealed ducted indoor units with nominally 
rated capacities of 48,000, 72,000, and 96,000 BTU/Hr.
    The indoor units listed above are also compatible with Daikin's 
VRV, VRV-S and VRV-WII product lines covered in separate waiver 
applications.

Design Characteristics Constituting the Grounds for DACA's Petition

    DACA's VRV-III product offerings consist of multiple indoor 
units being connected to one or more air-cooled outdoor units. The 
indoor units for these products are available in a very large number 
of potential configurations, including but not limited to the 
following: 4-Way Cassette, Ceiling Concealed, Wall Mounted, Ceiling 
Suspended, and Floor Standing. Each of these units has nine 
different indoor static pressure ratings as standard, with addition 
pressure ratings available. There are over one million combinations 
possible with the DACA VRV-III product offerings. It is completely 
impractical for testing laboratories to test a product such as the 
VRV-III with multiple indoor units because of the astronomical 
number of potential system configurations.
    DACA's VRV-III products share many of the design characteristics 
and features of similar equipment for which DOE has already approved 
either interim waivers or waivers, including DACA's VRV and VRV-S 
product lines, and Mitsubishi Electric and Electronics USA, Inc.'s 
(MEUS) CITY MULTI product class.\3\ The same testing constraints and 
limitations apply to all of these products.
---------------------------------------------------------------------------

    \3\ DOE granted DACA an interim waiver for its VRV and VRV-S 
product lines in a letter dated August 14, 2006, and DOE renewed 
this interim waiver on July 2, 2007 (72 FR 35,986). DOE granted MEUS 
a waiver for its CITY MULTI VRFZ class of products. 69 FR 52,660 
(August 27, 2004).
---------------------------------------------------------------------------

    The DOE relied on similar rationales to grant MEUS' petition for 
waiver and DACA's interim waiver. DOE stated the following in its 
August 14, 2006 letter to DACA granting an interim waiver:
    A waiver for a similar type of variable refrigerant flow zoned 
central air conditioner [i.e., similar to the DACA VRV, VRV-S and 
VRV-III products] was requested by MEUS. DOE decided to grant the 
waiver, based on the difficulty of testing the products. There are 
two major testing problems: (1) test laboratories cannot test 
products with so many indoor units (up to sixteen); and (2) there 
are too many possible combinations of indoor and outdoor units--only 
a small fraction of the combinations could be tested.
    DOE also noted in its August 14, 2006 interim waiver approval, 
and in its July 2, 2007 renewal for DACA's VRV and VRV-S products 
that ``[w]aivers for similar products have already been granted to * 
* * Samsung, and Fujitsu General * * *.''
    After reviewing its previously granted waivers for similar 
products under the same rationale in its August 14, 2006 letter, DOE 
concluded that DACA's VRV and VRV-S systems ``will likely suffer the 
same testing

[[Page 1212]]

problems that prompted DOE to grant MEUS a waiver.'' DOE continued 
by saying that ``[w]ith up to eleven indoor units of nine different 
types, thousands of combinations are possible, and it would not be 
practicable to test so many combinations [of DACA's VRV and VRV-S 
product class].'' Based on these conclusions, the DOE proceeded to 
grant DACA's interim waiver request, Id., and DOE then renewed this 
interim waiver on the same basis. 72 FR 35,986 (July 2, 2007).
    The DACA VRV-III system operates in the same configurations as 
the VRV and VRV-S models for which DOE previously granted an interim 
waiver. The reasons and rationale that DOE has already articulated 
to support the previous DACA, MEUS, Sanyo, and Fujitsu waivers for 
multi-split, multi-zoned air conditioners also apply to the DACA 
VRV-III products. Therefore, DOE should conclude that the design 
characteristics of DACA's VRV-III product classes prevent testing of 
these basic models according to the prescribed test procedures.

Specific Testing Requirements Sought To Be Waived

    The test procedures from which DACA is requesting a waiver are 
ARI Standards 210/240-2006 and 340/360-2004. ARI Standard 210/240-
2006, which is applicable to small commercial packaged air 
conditioning and heating equipment with a capacity of <65,000 Btu/
hr, is referenced in Table 1 to 10 CFR Sec.  431.96, and is made 
applicable to DACA's small commercial VRV-III products in 10 CFR 
Sec.  431.96(a). ARI Standard 340/360-2004, which is applicable to 
large commercial and industrial unitary air conditioning and heat 
pump equipment with a capacity of >=65,000 Btu/hr to <240,000 Btu/
hr, is referenced in Table 2 to 10 CFR Sec.  431.96, and is made 
applicable to DACA's large commercial VRV-III products in 10 CFR 
Sec.  431.96(a).

Detailed Discussion of Need for Requested Waiver

    Although the capacity of DACA's VRV-III small and large 
commercial air conditioning product class are within the scope of 
ARI Standard 210/240-2006 and ARI 340/360-2004, the design 
characteristics of these product classes prevent testing of the 
basic model according to the prescribed test procedures. The testing 
procedures outlined in these two ARI standards do not provide for:
     The testing of multi-split products when all connected 
indoor units physically cannot be located in a single room.
     The operation of indoor units at several different 
static pressure ratings during a single test.
     The precise number of part load tests that ARI Standard 
340/360-2004 requires for fully or infinitely variable speed 
products.
    DACA especially requires the requested waiver because ARI 
Standard 210/240-2006 and ARI Standard 340/360-2004 provide no 
direction or guidance about how to test systems with millions of 
combinations of indoor units configurable to a single outdoor unit.
    A further reason that DACA needs the requested waiver is that 
ARI Standard 210/240-2006 and ARI Standard 340/360-2004 do not 
provide a test method to measure part load performance of a system 
operating in simultaneous cooling and heating modes (i.e., 
performing both heating and cooling functions at the same time).
    Another problem that prevents testing of the VRV-III product 
classes under these ARI standards, and another major reason why DACA 
requires the requested waiver, 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 as would be required to test many of the 
indoor unit combinations available. To accomplish such testing, a 
testing lab would be required to use a large number of test rooms 
simultaneously, and each test room would have to be networked into 
the data recording instrumentation. Also, extensive piping 
configurations would need to be routed throughout the various test 
rooms. This process would be extraordinarily expensive, and the 
logistical challenges presented by the testing might be 
insurmountable.

Manufacturers of Other Basic Models Incorporating Similar Design 
Characteristics

    DACA is aware of the following manufacturers that produce basic 
models incorporating similar design characteristics to the VRV-III 
in the United States market:
     Fujitsu General
     Sanyo Fisher (USA) Corp.
     Mitsubishi Electric & Electronics USA, Inc.

Alternative Test Procedures

    There are no alternative test procedures available within the 
United States to provide a means to test and to rate the performance 
of such variable speed, multi-split, multi-zone product types. A 
draft ISO standard (ISO CD 15042 Multi-Split Systems) is nearing 
completion and is expected to soon be distributed as a Draft 
International Ballot for comments. The Engineering Committee of 
ARI's Ductless Section is currently working on a new draft standard 
to provide testing and rating of such systems, but ARI has not 
adopted a new standard and test method for this category of 
equipment as of this date.

Application for Interim Waiver

    DACA also hereby applies pursuant to 10 CFR Sec.  431.401(a)(2) 
for an interim waiver of the applicable test procedure requirements 
for its VRV-III product class models listed above. The basis for 
DACA's Application for Interim Waiver follows.
    DACA is likely to succeed in its Petition for Waiver because 
there is no reasonable argument that ARI Standards 210/240-2006 and 
340/360-2004 can be properly applied to DACA's VRV-III product 
classes. As explained above in the DACA's Petition for Waiver, the 
design characteristics of the VRV-III product classes clearly 
prevent testing of the basic model according to the prescribed test 
procedures. The likelihood of DOE approving DACA's Petition for 
Waiver is buttressed by the DOE's history of approving previous 
waiver requests from DACA and from several other manufacturers for 
other products that are similar to the VRV-III product classes, 
based on the same rationale put forth by DACA in this Petition for 
Waiver. See preceding discussion of waivers granted by DOE to DACA, 
MEUS, Fujitsu General, and Sanyo Fisher (USA) Corp.
    Additionally, DACA is likely to suffer economic hardship and 
competitive disadvantage if DOE does not grant its interim waiver 
request. DACA is now preparing to introduce its VRV, VRV-S and VRV-
III models covered by this petition in a matter of months. If we 
must wait for completion of the normal waiver consideration and 
issuance process, DACA will be forced to delay the opportunity to 
begin recouping through product sales its research, development and 
production costs associated with the VRV-III product classes.
    DOE approval of DACA's interim waiver application is also 
supported by sound public policy reasons. As DOE stated in its 
August 14, 2006 approval of DACA's interim waiver for the VRV and 
VRV-S product classes:
    [I]n those instances where the likely success of the 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.
    The VRV-III product classes will provide superior comfort to the 
end user, will allow for independent zoning of facilities from a 
single outdoor unit, and will incorporate state of the art 
technology such as variable speed compressors utilizing neodymium 
magnets to increase efficiency and electronic control of compressor 
speed, fan speed and even metering device opening positions. The 
VRV-III product classes will introduce technologies that will 
increase system efficiency and reduce national energy consumption, 
and that will also offer a new level of comfort and control to end 
users.
    DACA requests that DOE grant our Application for Interim Waiver 
so we can bring the new highly energy efficient technology 
represented by the VRV-III product classes to the market as soon as 
possible, thereby allowing the U.S. consumer to benefit from our 
high technology and high efficiency product, and from competition 
for other manufacturers who may have already received waivers.

Confidential Information

    DACA makes no request to DOE for confidential treatment of any 
information contained in this Petition for Waiver and Application 
for Interim Waiver.

Conclusion

    Daikin AC (Americas), Inc. Corporation respectfully requests DOE 
to grant its Petition for Waiver of the applicable test procedure to 
DACA for the VRV-III product designs, and to grant its Application 
for Interim Waiver. DOE's failure to issue an interim waiver from 
test standards would cause significant economic hardship and 
competitive disadvantage to DACA by preventing DACA from marketing 
these products even though DOE has previously granted a waiver to 
other products currently being offered in the market with similar 
design characteristics.

[[Page 1213]]

    We would be pleased to respond to any questions you may have 
regarding this Petition for Waiver and Application for Interim 
Waiver. Please contact Russell Tavolacci, Assistant Vice President 
at 972-245-1510 or by e-mail at [email protected].

    Sincerely,

Yoshinobu Inoue,
President, Daikin AC (Americas), Inc., 1645 Wallace Drive, Suite 
110, Carrollton, Texas 75006.
(Submitted in triplicate)

Notice to Affected Persons

    The following companies manufacture domestically marketed units 
of the same product type as the VRV-III product types. l hereby 
certify that I delivered a copy of this Petition for Waiver and 
Application for Interim Waiver to the persons listed below by United 
States First Class Mail, postage prepaid, on August 31, 2007:

Fujitsu General America, Inc., 353 Route 46 West, Fairfield, NJ 
07004, Attn: Arturo Thur De Koos, Engineering & Technical Support.
Sanyo Fisher (USA) Corp., 1690 Roberts Blvd., Suite 110, Kennesaw, 
GA 30144, Attn: Gary Nettinger, Vice President, Technical and 
Service.
Mitsubishi Electric & Electronics USA, Inc., 4300 Lawrenceville-
Suwanee Road, Suwanee, GA 30024, Attn: William Rau, Senior Vice 
President and General Manager.

Dated August 31, 2007.

Yoshinobu Inoue,
President, Daikin AC (Americas), Inc., 1645 Wallace Drive, Suite 
110, Carrollton, Texas 75006.

 [FR Doc. E8-12 Filed 1-4-08; 8:45 am]
BILLING CODE 6450-01-P