[Federal Register Volume 73, Number 137 (Wednesday, July 16, 2008)]
[Proposed Rules]
[Pages 40770-40791]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-16256]


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DEPARTMENT OF ENERGY

10 CFR Part 431

[Docket No. EERE-2008-BT-STD-0013]
RIN 1904-AB83


Energy Conservation Program for Certain Industrial Equipment: 
Energy Conservation Standards for Commercial Heating, Air-Conditioning, 
and Water-Heating Equipment

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

ACTION: Notice of data availability and request for public comment.

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SUMMARY: The Energy Policy and Conservation Act of 1975 (EPCA), as 
amended, directs the U.S. Department of Energy (DOE) to establish 
energy conservation standards for certain commercial and industrial 
equipment, including commercial heating, air-conditioning, and water-
heating products. Of particular relevance here, the statute also 
requires that each time the corresponding consensus standard--the 
American Society of Heating, Refrigerating and Air-Conditioning 
Engineers, Inc. (ASHRAE)/ Illuminating Engineering Society of North 
America (IESNA) Standard 90.1--is amended, DOE must assess whether 
there is a need to update the uniform national energy conservation 
standards for the same equipment covered under EPCA. ASHRAE officially 
released an amended version of this industry standard (ASHRAE Standard 
90.1-2007) on January 10, 2008, thereby triggering DOE's related 
obligations under EPCA. As a first step in meeting these statutory 
requirements, today's notice of data availability (NODA) discusses the 
results of DOE's analysis of the energy savings potential of amended 
energy conservation standards for certain types of commercial equipment 
covered by ASHRAE Standard 90.1. Potential energy savings are based 
upon either the efficiency levels specified in the amended industry 
standard (i.e., ASHRAE Standard 90.1-2007) or more stringent levels 
that would result in significant additional conservation of energy and 
are technologically feasible and economically justified. DOE is 
publishing this NODA to: (1) Announce the results and preliminary 
conclusions of DOE's analysis of potential energy savings associated 
with amended standards for this equipment, and (2) request public 
comment on this analysis, as well as the submission of data and other 
relevant information.

DATES: DOE will accept comments, data, and information regarding this 
NODA submitted no later than August 15, 2008. See Section IV, ``Public 
Participation,'' of this notice for details.

ADDRESSES: Any comments submitted must identify the NODA for ASHRAE 
Products and provide the docket number EERE-2008-BT-STD-0013 and/or 
Regulatory Information Number (RIN) 1904-AB83. Comments may be 
submitted using any of the following methods:
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
     E-mail: [email protected]. Include the 
docket number EERE-2008-BT-STD-0013 and/or RIN number 1904-AB83 in the 
subject line of the message.
     Postal Mail: Ms. Brenda Edwards, U.S. Department of 
Energy, Building Technologies Program, Mailstop EE-2J, 1000 
Independence Avenue, SW., Washington, DC 20585-0121. Please submit one 
signed paper original.
     Hand Delivery/Courier: Ms. Brenda Edwards, U.S. Department 
of Energy, Building Technologies Program, 950 L'Enfant Plaza, SW., 
Suite 600, Washington, DC 20024. Telephone: (202) 586-2945. Please 
submit one signed paper original.
    For detailed instructions on submitting comments and additional 
information on this document, see section IV (Public Participation).
    Docket: For access to background documents or comments received, 
visit the U.S. Department of Energy, Resource Room of the Building 
Technologies

[[Page 40771]]

Program, 950 L'Enfant Plaza, SW., Suite 600, Washington, DC 20024, 
(202) 586-2945, between 9 a.m. and 4 p.m., Monday through Friday, 
except Federal holidays. Please call Ms. Brenda Edwards at the above 
telephone number for additional information about visiting the Resource 
Room.

FOR FURTHER INFORMATION CONTACT:  Mr. Mohammed Khan, U.S. Department of 
Energy, Office of Energy Efficiency and Renewable Energy, Building 
Technologies Program, Mailstop EE-2J, 1000 Independence Avenue, SW., 
Washington, DC 20585-0121. Telephone: (202) 586-7892. E-mail: 
[email protected].
    Ms. Francine Pinto or Mr. Eric Stas, U.S. Department of Energy, 
Office of the General Counsel, Mailstop GC-72, Forrestal Building, 1000 
Independence Avenue, SW., Washington, DC 20585-0121. Telephone: (202) 
586-9507. E-mail: [email protected] or [email protected].
    For information on how to submit public comments, contact Ms. 
Brenda Edwards, U.S. Department of Energy, Office of Energy Efficiency 
and Renewable Energy, Building Technologies Program, Mailstop EE-2J, 
1000 Independence Avenue, SW., Washington, DC 20585-0121. Telephone: 
(202) 586-2945. E-mail: [email protected].

SUPPLEMENTARY INFORMATION:

Table of Contents

I. Introduction
    A. Authority
    B. Purpose of the Notice of Data Availability
    C. Background
    D. Summary of DOE's Preliminary Assessment of Equipment for 
Energy-Savings Analysis
II. Discussion of Equipment for Further Consideration
    A. Commercial Warm-Air Furnaces
    1. Gas-Fired Commercial Warm-Air Furnaces
    2. Oil-Fired Commercial Warm-Air Furnaces
    B. Commercial Package Air-Conditioning and Heating Equipment
    1. Three-Phase, Through-the-Wall Air-Cooled Air Conditioners and 
Heat Pumps
    2. Three-Phase, Small-Duct, High-Velocity Air-Cooled Air 
Conditioners and Heat Pumps
    3. Commercial Package Air-Cooled Air Conditioners with a Cooling 
Capacity at or Above 760,000 Btu per Hour
    4. Water-Cooled and Evaporatively-Cooled Commercial Package Air 
Conditioners and Heat Pumps With a Cooling Capacity at or Above 
135,000 Btu per Hour and Less Than 240,000 Btu per Hour
    5. Water-Cooled and Evaporatively-Cooled Commercial Package Air 
Conditioners and Heat Pumps With a Cooling Capacity at or above 
240,000 Btu per Hour
    C. Packaged Terminal Air Conditioners and Heat Pumps
    D. Commercial Water Heaters
    1. Oil-Fired Instantaneous Water Heaters
    2. Electric Storage Water Heaters
    E. Commercial Packaged Boilers
    1. Small, Gas-Fired Hot Water Commercial Packaged Boilers
    2. Small, Gas-Fired, Steam, All Except Natural Draft Commercial 
Packaged Boilers
    3. Small, Gas-Fired, Steam, Natural Draft, Commercial Packaged 
Boilers
    4. Small, Oil-Fired, Hot Water Commercial Packaged Boilers
    5. Small, Oil-Fired, Steam, Commercial Packaged Boilers
    6. Large, Gas-Fired, Hot Water Commercial Packaged Boilers
    7. Large, Gas-Fired, Steam, All Except Natural Draft Commercial 
Packaged Boilers
    8. Large, Gas-Fired, Steam, Natural Draft, Commercial Packaged 
Boilers
    9. Large, Oil-Fired, Hot Water Commercial Packaged Boilers
    10. Large, Oil-Fired, Steam Commercial Package Boilers
III. Analysis of Potential Energy Savings
    A. Annual Energy Use
    B. Shipments
    C. Other Analytical Inputs
    1. Site-to-Source Conversion
    2. Effective Date
    3. Analysis Period and Lifetime
    D. Estimates of Potential Energy Savings
IV. Public Participation
    A. Submission of Comments
    B. Issues on Which DOE Seeks Comment

I. Introduction

A. Authority

    Title III of EPCA, Pub. L. 94-163, as amended, sets forth a variety 
of provisions concerning energy efficiency. Part A-1 \1\ of Title III 
created the energy conservation program for ``Certain Industrial 
Equipment.'' (42 U.S.C. 6311-6317) In general, this program addresses 
the energy efficiency of certain types of commercial and industrial 
equipment. Part A-1 specifically includes definitions (42 U.S.C. 6311), 
test procedures (42 U.S.C. 6314), labelling 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).
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    \1\ This part was originally titled Part C; however, it was 
redesignated Part A-1 after Part C of Title III of EPCA was repealed 
by Public Law 109-58.
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    In relevant part here, EPCA contains mandatory energy conservation 
standards for commercial heating, air-conditioning, and water heating 
equipment. (42 U.S.C. 6313(a)) Specifically, the statute sets standards 
for small, large, and very large commercial package air-conditioning 
and heating equipment, packaged terminal air conditioners (PTACs) and 
packaged terminal heat pumps (PTHPs), warm-air furnaces, packaged 
boilers, storage water heaters, and unfired hot water storage tanks. 
Id. In doing so, EPCA established Federal energy conservation standards 
that generally correspond to the levels in ASHRAE Standard 90.1, Energy 
Standard for Buildings Except Low-Rise Residential Buildings, as in 
effect on October 24, 1992 (i.e., ASHRAE Standard 90.1-1989), for each 
type of covered equipment listed in 42 U.S.C. 6313(a).
    In acknowledgement of technological changes that yield energy 
efficiency benefits, Congress further directed DOE through EPCA to 
consider amending the existing Federal energy efficiency standard for 
each type of equipment listed, each time ASHRAE Standard 90.1 is 
amended with respect to such equipment. (42 U.S.C. 6313(a)(6)(A)) For 
each type of equipment, EPCA directs that if ASHRAE Standard 90.1 is 
amended,\2\ DOE must adopt amended standards at the new efficiency 
level in ASHRAE Standard 90.1, unless clear and convincing evidence 
supports a determination that adoption of a more stringent level as a 
national standard would produce significant additional energy savings 
and be technologically feasible and economically justified. (42 U.S.C. 
6313(a)(6)(A)(ii)) If DOE decides to adopt as a national standard the 
minimum efficiency levels specified in the amended ASHRAE Standard 
90.1, DOE must establish such standard not later than 18 months after 
publication of the amended industry standard. (42 U.S.C. 
6313(a)(6)(A)(ii)(I)) However, if DOE determines that a more stringent 
standard is justified under 42 U.S.C. 6313(a)(6)(A)(ii)(II), then DOE 
must establish such more stringent standard not later than 30 months 
after publication of the amended ASHRAE Standard 90.1. (42 U.S.C. 
6313(a)(6)(B))
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    \2\ Although EPCA does not explicitly define the term 
``amended'' in the context of ASHRAE Standard 90.1, DOE provided its 
interpretation of what would constitute an ``amended standard'' in a 
final rule published in the Federal Register on March 7, 2007 
(hereafter referred to as the March 2007 final rule). 72 FR 10038. 
In that rule, DOE stated that the statutory trigger requiring DOE to 
adopt uniform national standards based on ASHRAE action is for 
ASHRAE to change a standard for any of the equipment listed in EPCA 
section 342(a)(6)(A)(i) (42 U.S.C. 6313(a)(6)(A)(i)) by increasing 
the energy efficiency level for that equipment type. Id. 10042. In 
other words, if the revised ASHRAE Standard 90.1 leaves the standard 
level unchanged or lowers the standard, as compared to the level 
specified by the national standard adopted pursuant to EPCA, DOE 
does not have the authority to conduct a rulemaking to consider a 
higher standard for that equipment pursuant to 42 U.S.C. 
6313(a)(6)(A).

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[[Page 40772]]

    As a preliminary step in this process, EPCA directs DOE to publish 
in the Federal Register for public comment an analysis of the energy 
savings potential of amended energy efficiency standards, within 180 
days after ASHRAE Standard 90.1 is amended with respect to any of the 
covered products specified under 42 U.S.C. 6313(a).\3\ (42 U.S.C. 
6313(a)(6)(A))
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    \3\ This statutory provision was added by section 305 of the 
Energy Independence and Security Act of 2007 (EISA 2007), Public Law 
110-140, which applies to all of the products for which there are 
currently Federal energy conservation standards that are also 
covered by ASHRAE Standard 90.1. In addition, this document is also 
required under the Consent Decree (filed Nov. 6, 2006) in New York 
v. Bodman, No. 05 Civ. 7807 (S.D.N.Y. filed Sept. 7, 2005) and 
Natural Resources Defense Council v. Bodman, No. 05 Civ. 7808 
(S.D.N.Y. filed Sept. 7, 2005), which requires an initial DOE action 
to be taken on any ASHRAE amendments related to products in the 
Consent Decree (i.e., packaged terminal air conditioners and 
packaged terminal heat pumps, packaged boilers, and instantaneous 
water heaters) no later than six months after adoption of the 
amendment by ASHRAE. (Consent Decree section III, paragraph 4)
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    On January 9, 2008, ASHRAE's Board of Directors gave final approval 
to ASHRAE Standard 90.1-2007 \4\ for distribution, which ASHRAE 
officially released and made public on January 10, 2008. This action by 
ASHRAE triggered DOE's obligations under 42 U.S.C. 6313(a)(6), as 
outlined above. This NODA embodies the analysis of the energy savings 
potential of amended energy efficiency standards, as required under 42 
U.S.C. 6313(a)(6)(A)(i).
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    \4\ This industry standard is developed with input from a number 
of organizations--most prominently, ASHRAE, the American National 
Standards Institute (ANSI), and the Illuminating Engineering Society 
of North America (IESNA). Therefore, this document may sometimes be 
referred to more formally as ANSI/ASHRAE/IESNA Standard 90.1-2007. 
See http://www.ashrae.org for more information.
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B. Purpose of the Notice of Data Availability

    As explained above, DOE is publishing today's NODA as a preliminary 
step pursuant to EPCA's requirements for DOE to consider amended energy 
conservation standards for certain types of commercial equipment 
covered by ASHRAE Standard 90.1, whenever ASHRAE amends its standard to 
increase the energy efficiency level for that equipment type. 
Specifically, this NODA presents for public comment DOE's analysis of 
the potential energy savings estimates for amended national energy 
conservation standards for these types of commercial equipment based 
on: (1) The modified efficiency levels contained within ASHRAE Standard 
90.1-2007, and (2) more stringent efficiency levels. DOE describes 
these analyses and preliminary conclusions and seeks input from 
interested parties, including the submission of data and other relevant 
information.
    DOE is not required by EPCA to review additional changes in ASHRAE 
Standard 90.1-2007 for those equipment types where ASHRAE did not 
increase the efficiency level. For those types of equipment for which 
efficiency levels clearly did not change, DOE has conducted no further 
analysis. However, for other ASHRAE products, DOE found that while 
ASHRAE had made changes in ASHRAE Standard 90.1-2007, it was not 
immediately apparent whether such revisions to the Standard 90.1 level 
would make the equipment more or less efficient, as compared to the 
existing Federal energy conservation standards. For example, when 
setting a standard using a different efficiency metric (as is the case 
for several types of commercial packaged boiler equipment), ASHRAE 
Standard 90.1-2007 changes the standard level from that specified in 
EPCA, but it is not immediately clear whether a standard level will 
make equipment more or less efficient. Therefore, DOE is undertaking 
this additional threshold analysis in order to thoroughly evaluate the 
amendments in ASHRAE Standard 90.1-2007 in a manner consistent with its 
statutory mandate.
    Using this approach, DOE has undertaken a comprehensive analysis of 
the products covered under both EPCA and ASHRAE Standard 90.1-2007 to 
determine which products types require further analysis. Section II, 
Discussion of Equipment for Further Consideration, contains a 
description of DOE's evaluation of each ASHRAE equipment type for which 
energy conservation standards have been set pursuant to EPCA, in order 
for DOE to determine whether the amendments in Standard 90.1-2007 have 
resulted in increased efficiency levels. For those types of equipment 
in ASHRAE Standard 90.1, which have been determined to increase the 
efficiency levels, DOE subjected that equipment to further analysis 
under Section III, Analysis of Potential Energy Savings.
    In summary, the energy savings analysis presented in this NODA is a 
preliminary step required under 42 U.S.C. 6313(a)(6)(A)(i). After 
review of the public comments on this NODA, if DOE decides that the 
amended efficiency levels in ASHRAE Standard 90.1-2007 have the 
potential for additional energy savings for types of equipment 
currently covered by uniform national standards, DOE will commence 
rulemaking to consider amended standards, based upon either the 
efficiency levels in ASHRAE Standard 90.1-2007 or more stringent 
efficiency levels which would be expected to result in significant 
additional conservation of energy and are technologically feasible and 
economically justified. In conducting such rulemaking, DOE will address 
the general rulemaking requirements for all energy conservation 
standards, such as the anti-backsliding provision \5\ (42 U.S.C. 
6316(a); 42 U.S.C. 6295(o)(1)), the criteria for making a determination 
that a standard is economically justified \6\ (42 U.S.C. 6316(a); 42 
U.S.C. 6295(o)(2)(B)(i)-(ii)), and the prohibition on making 
unavailable existing products with performance characteristics 
generally available in the U.S.\7\ (42 U.S.C. 6316(a); 42 U.S.C. 
6295(o)(4)).
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    \5\ EPCA contains what is commonly known as an ``anti-
backsliding'' provision (42 U.S.C. 6316(a); 42 U.S.C. 6295(o)(1)). 
This provision mandates that the Secretary not prescribe any amended 
standard that either increases the maximum allowable energy use or 
decreases the minimum required energy efficiency of covered 
equipment. Natural Resources Defence Council v. Abraham, 355 F. 3d 
179 (2d Cir. 2004).
    \6\ In deciding whether a more stringent standard is 
economically justified, DOE must review comments on the proposed 
standard, and then determine whether the benefits of the standard 
exceed its burdens by considering the following seven factors to the 
greatest extent practicable:
    (1) The economic impact on manufacturers and consumers subject 
to the standard;
    (2) The savings in operating costs throughout the estimated 
average life of the product in the type (or class), compared to any 
increase in the price, initial charges, or maintenance expenses of 
the products likely to result from the standard;
    (3) The total projected amount of energy savings likely to 
result directly from the standard;
    (4) Any lessening of product utility or performance likely to 
result from the standard;
    (5) The impact of any lessening of competition, as determined in 
writing by the Attorney General, likely to result from the standard;
    (6) The need for national energy conservation; and
    (7) Other factors the Secretary considers relevant.
    (42 U.S.C. 6316(a); 42 U.S.C. 6295(o)(2)(B)(i)-(ii))
    \7\ The Secretary may not prescribe an amended standard if 
interested persons have established by a preponderance of evidence 
that the amended standard is ``likely to result in the 
unavailability in the United States of any product type (or class)'' 
with performance characteristics (including reliability), features, 
sizes, capacities, and volumes that are substantially the same as 
those generally available in the United States at the time of the 
Secretary's finding. (42 U.S.C. 6316(a); 42 U.S.C. 6295(o)(4))
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C. Background

ASHRAE Standard 90.1-2007
    As noted above, on January 9, 2008, ASHRAE's Board of Directors 
gave final approval to ASHRAE Standard 90.1-2007, which ASHRAE released 
on January 10, 2008. The ASHRAE standard addresses efficiency levels 
for many types of commercial heating,

[[Page 40773]]

ventilating, air-conditioning (HVAC), and water-heating equipment 
covered by EPCA. ASHRAE Standard 90.1-2007 revised the efficiency 
levels for certain commercial equipment, but for the remaining 
equipment, ASHRAE left in place the preexisting levels (i.e., the 
efficiency levels specified in EPCA or the efficiency levels in ASHRAE 
Standard 90.1-1999).
    Table I.1 below sets forth the existing Federal energy conservation 
standards and the efficiency levels specified in ASHRAE Standard 90.1-
2007 for equipment where ASHRAE modified its requirements. The balance 
of this section of the document will assess these equipment types to 
determine whether the amendments in ASHRAE Standard 90.1-2007 
constitute increased energy efficiency levels, as would necessitate 
further analysis of the potential energy savings from amended Federal 
energy conservation standards under Section III.

 Table I.1.--Federal Energy Conservation Standards and Energy Efficiency Levels in ASHRAE Standard 90.1-2007 for
                                     Specific Types of Commercial Equipment*
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                                                                                 ASHRAE
                                      Federal energy     Energy efficiency   Standard 90.1-     Energy-savings
      ASHRAE equipment class           conservation       levels in ASHRAE        2007        potential analysis
                                        standards       Standard  90.1-2007  effective date        required
----------------------------------------------------------------------------------------------------------------
                                          Commercial Warm-Air Furnaces
----------------------------------------------------------------------------------------------------------------
Gas-Fired Commercial Warm-Air      Et = 80%...........  Ec = 80%...........       1/10/2008  No (See Section
 furnace.                                               Interrupted or                        II.A.1.).
                                                         intermittent
                                                         ignition device,
                                                         jacket losses not
                                                         exceeding 0.75% of
                                                         input rating,
                                                         power vent, or
                                                         flue damper**.
Oil-Fired Commercial Warm-Air      Et = 81%...........  Et = 81%...........       1/10/2008  No (See Section
 furnace.                                               Interrupted or                        II.A.2.).
                                                         intermittent
                                                         ignition device,
                                                         jacket losses not
                                                         exceeding 0.75% of
                                                         input rating,
                                                         power vent, or
                                                         flue damper**.
----------------------------------------------------------------------------------------------------------------
                            Commercial Package Air-Conditioning and Heating Equipment
----------------------------------------------------------------------------------------------------------------
Through-the-Wall Air Conditioners  13.0 SEER***         12.0 SEER (As of 01/      1/23/2010  No (See Section
                                    (Effective as of     23/10)                               II.B.1.).
                                    06/19/08)
Through-the-Wall Air-Cooled Heat   13.0 SEER            12.0 SEER 7.4 HSPF        1/23/2010  No (See Section
 Pumps.                             (Effective as of     [dagger] (As of 01/                  II.B.1.).
                                    06/19/08)            23/10)
Small Duct, High Velocity, Air-    13.0 SEER            10.0 SEER..........       1/10/2008  No (See Section
 Cooled Air Conditioners.           (Effective as of                                          II.B.2.).
                                    06/19/08)
Small Duct, High Velocity, Air-    13.0 SEER            10.0 SEER 6.8 HSPF        1/10/2008  No (See Section
 Cooled Heat Pumps.                 (Effective as of                                          II.B.2.).
                                    06/19/08)
Packaged Air-Cooled Air            None...............  9.7 EER                    1/1/2010  No (See Section
 Conditioners with Cooling                               [dagger][dagger][d                   II.B.3.).
 Capacity [gteqt]760,000 Btu/h                           agger] (As of 01/
 [dagger][dagger] and with No                            01/10)
 Heating or with Electric
 Resistance Heating.
Packaged Air-Cooled Air            None...............  9.5 EER (As of 01/         1/1/2010  No (See Section
 Conditioners with Cooling                               01/10)                               II.B.3.).
 Capacity [gteqt]760,000 Btu/h
 and with Heating That is Other
 Than Electric Resistance Heating.
Water-Cooled and Evaporatively     11.0 EER...........  11.0 EER...........   [Dagger]1/10/  No (See Section
 Cooled Air Conditioner with                                                           2008   II.B.4.).
 Cooling Capacity [gteqt]135,000
 and <240,000 Btu/h, and with No
 Heating or with Electric
 Resistance Heating.
Water-Cooled and Evaporatively     11.0 EER...........  10.8 EER...........   [Dagger]1/10/  No (See Section
 Cooled Air Conditioner with                                                           2008   II.B.4.).
 Cooling Capacity [gteqt]135,000
 and <240,000 Btu/h, and with
 Heating That is Other Than
 Electric Resistance Heating.
Water-Cooled and Evaporatively     None...............  11.0 EER...........       1/10/2008  No (See Section
 Cooled Air Conditioner with                                                                  II.B.5.).
 Cooling Capacity [gteqt]240,000
 Btu/h and with No Heating or
 with Electric Resistance Heating.
Water-Cooled and Evaporatively     None...............  10.8 EER...........       1/10/2008  No (See Section
 Cooled Air Conditioner with                                                                  II.B.5.)
 Cooling Capacity [gteqt]240,000
 Btu/h and with Heating That is
 Other Than Electric Resistance
 Heating.
----------------------------------------------------------------------------------------------------------------

[[Page 40774]]

 
               Packaged Terminal Air Conditioners (PTACs) and Heat Pumps (PTHPs) [Dagger][Dagger]
----------------------------------------------------------------------------------------------------------------
Packaged Terminal Air              EER = 8.88.........  EER = 11.0.........   [Dagger]1/10/  No (See Section
 Conditioners with Cooling                                                             2008   II.C.).
 Capacity <7,000 Btu/h, and
 Standard Size
 [Dagger][Dagger][Dagger] (New
 Construction).
Packaged Terminal Air              EER = 8.88.........  EER = 9.4..........   [Dagger]1/10/  No (See Section
 Conditioners with Cooling                                                             2008   II.C.).
 Capacity <7,000 Btu/h, and Non-
 Standard Size [diam]
 (Replacement).
Packaged Terminal Air              EER = 10.0-(0.16 x   EER = 12.5-(0.213 x   [Dagger]1/10/  No (See Section
 Conditioners with Cooling          Cap [diam][diam]).   Cap [diam][diam]).            2008   II.C.).
 Capacity [gteqt]7,000 and
 <15,000 Btu/h, and Standard Size
 [Dagger][Dagger][Dagger] (New
 Construction).
Packaged Terminal Air              EER = 10.0-(0.16 x   EER = 10.9-(0.213 x   [Dagger]1/10/  No (See Section
 Conditioners with Cooling          Cap [diam][diam]).   Cap [diam][diam]).            2008   II.C.).
 Capacity [gteqt]7,000 and
 <15,000 Btu/h, and Non-Standard
 Size[diam] (Replacement).
Packaged Terminal Air              EER = 7.6..........  EER = 9.3..........   [Dagger]1/10/  No (See Section
 Conditioners with Cooling                                                             2008   II.C.).
 Capacity >15,000 Btu/h, and
 Standard Size
 [Dagger][Dagger][Dagger] (New
 Construction).
Packaged Terminal Air              EER = 7.6..........  EER = 7.7..........   [Dagger]1/10/  No (See Section
 Conditioners with Cooling                                                             2008   II.C.).
 Capacity >15,000 Btu/h, and Non-
 Standard Size [diam]
 (Replacement).
Packaged Terminal Heat Pumps with  EER = 8.88.........  EER = 10.8.........   [Dagger]1/10/  No (See Section
 Cooling Capacity <7,000 Btu/h,    COP[diam][diam][dia  COP = 3.0..........            2008   II.C.).
 and Standard Size                  m] = 2.7.
 [Dagger][Dagger][Dagger] (New
 Construction).
Packaged Terminal Heat Pumps with  EER = 8.88.........  EER = 9.3..........   [Dagger]1/10/  No (See Section
 Cooling Capacity <7,000 Btu/h,    COP = 2.7..........  COP = 2.7..........            2008   II.C.).
 and Non-Standard Size[diam]
 (Replacement).
Packaged Terminal Heat Pumps with  EER = 10.0-(0.16 x   EER = 12.3-(0.213 x   [Dagger]1/10/  No (See Section
 Cooling Capacity [gteqt]7,000      Cap [diam][diam]).   Cap [diam][diam]).            2008   II.C.).
 and <15,000 Btu/h, and Standard   COP = 1.3 + (0.16 x  COP = 3.2-(0.026 x
 Size [Dagger][Dagger][Dagger]      EER).                Cap [diam][diam])..
 (New Construction).
Packaged Terminal Heat Pumps with  EER = 10.0-(0.16 x   EER = 10.8-(0.213 x   [Dagger]1/10/  No (See Section
 Cooling Capacity [gteqt]7,000      Cap [diam][diam]).   Cap [diam][diam]).            2008   II.C.).
 and <15,000 Btu/h, and Non-       COP = 1.3 + (0.16 x  COP = 2.9-(0.026 x
 Standard Size [diam]               EER).                Cap [diam][diam])..
 (Replacement).
Packaged Terminal Heat Pumps with  EER = 7.6..........  EER = 9.1..........   [Dagger]1/10/  No (See Section
 Cooling Capacity >15,000 Btu/h,   COP = 2.5..........  COP = 2.8..........            2008   II.C.)
 and Standard Size
 [Dagger][Dagger][Dagger] (New
 Construction).
Packaged Terminal Heat Pumps with  EER = 7.6..........  EER = 7.6..........   [Dagger]1/10/  No (See Section
 Cooling Capacity >15,000 Btu/h,   COP = 2.5..........  COP = 2.5..........            2008   II.C.).
 and Non-Standard Size [diam]
 (Replacement).
----------------------------------------------------------------------------------------------------------------
                                            Commercial Water Heaters
----------------------------------------------------------------------------------------------------------------
Oil-Fired Instantaneous Water      ET = 78%...........  ET = 78%...........   [Dagger]1/10/  No (See Section
 Heaters [gteqt]4,000 Btu/h/gal    SL = Q/800 +         SL = Q/800 +                   2008   II.D.1.).
 and [gteqt]10 gal.                 110(Vr)1/2, Btu/h.   110(V)1/2, Btu/h.
----------------------------------------------------------------------------------------------------------------
Electric Storage Water Heaters...  SL = 0.3 + 27/Vm (%/ SL = 20 + 35(V)1/2,   [Dagger]1/10/  No (See Section
                                    h).                  Btu/h.                        2008   II.D.2.).
----------------------------------------------------------------------------------------------------------------
                                           Commercial Packaged Boilers
----------------------------------------------------------------------------------------------------------------
Small Gas-Fired, Hot Water,        EC = 80%...........  ET = 80%...........        3/2/2010  Yes (See Section
 Commercial Packaged Boilers.                                                                 II.E.1, Section
                                                                                              III, and Table
                                                                                              III.4.).
Small Gas-Fired, Steam, All        EC = 80%...........  ET = 79%...........        3/2/2010  Yes (See Section
 Except Natural Draft Commercial                                                              II.E.2, Section
 Packaged Boilers.                                                                            III, and Table
                                                                                              III.5.).
Small Gas-Fired, Steam, Natural    EC = 80%...........  ET = 77% (Effective        3/2/2010  Yes (See Section
 Draft, Commercial Packaged                              03/2/2010).         ..............   II.E.3, Section
 Boilers.                                               ET = 79% (Effective        3/2/2020   III, and Table
                                                         03/2/2020).                          III.6.).

[[Page 40775]]

 
Small Oil-Fired, Hot Water,        EC = 83%...........  ET = 82%...........        3/2/2010  Yes (See Section
 Commercial Packaged Boilers.                                                                 II.E.4, Section
                                                                                              III, and Table
                                                                                              III.7.).
Small Oil-Fired, Steam,            EC = 83%...........  ET = 81%...........        3/2/2010  Yes (See Section
 Commercial Packaged Boilers.                                                                 II.E.5, Section
                                                                                              III, and Table
                                                                                              III.8.).
Large Gas-Fired, Hot Water,        EC = 80%...........  EC = 82%...........        3/2/2010  Yes (See Section
 Commercial Packaged Boilers.                                                                 II.E.6, Section
                                                                                              III, and Table
                                                                                              III.9.).
Large Gas-Fired, Steam, All        EC = 80%...........  ET = 79%...........        3/2/2010  Yes (See Section
 except Natural Draft, Boilers.                                                               II.E.7, Section
                                                                                              III, and Table
                                                                                              III.10.).
Large Gas-Fired, Steam, Natural    EC = 80%...........  ET = 77% (Effective        3/2/2010  Yes (See Section
 Draft, Commercial Packaged                              3/2/2010).          ..............   II.E.8, Section
 Boilers.                                               ET = 79% (Effective        3/2/2020   III, and Table
                                                         3/2/2020).                           III.11.).
Large Oil-Fired, Hot Water,        EC = 83%...........  EC = 84%...........        3/2/2010  Yes (See Section
 Commercial Packaged Boilers.                                                                 II.E.9, Section
                                                                                              III, and Table
                                                                                              III.12.).
Large Oil-Fired, Steam,            EC = 83%...........  ET = 81%...........        3/2/2010  No (See Section
 Commercial Packaged Boilers.                                                                 II.E.10.).
----------------------------------------------------------------------------------------------------------------
* All equipment classes included in this table are equipment where there is a perceived difference between the
  current Federal standard levels and the efficiency levels specified by ASHRAE Standard 90.1-2007. Although, in
  some cases, the efficiency levels in this table may appear to be equal or lower than the Federal energy
  conservation standards, DOE further reviewed the efficiency levels in ASHRAE Standard 90.1-2007 and presented
  its findings in section II, Discussion of Equipment for Further Consideration.
** A vent damper is an acceptable alternative to a flue damper for those furnaces that draw combustion air from
  conditioned space.
*** Seasonal Energy Efficiency Ratio.
[dagger] Heating Seasonal Performance Factor.
[dagger][dagger] British thermal units per hour (Btu/h).
[dagger][dagger][dagger] Energy Efficiency Ratio.
[Dagger] For the purposes of this NODA, the date shown in this column is the date of publication of ASHRAE
  Standard 90.1-2007 (Jan. 10, 2008) for equipment where the ASHRAE Standard 90.1-2007 initially appears to be
  different from the Federal energy conservation standards and where no effective date was specified by ASHRAE
  Standard 90.1-2007.
[Dagger][Dagger] For equipment rated according to the DOE test procedure, all EER values must be rated at
  95[deg]F outdoor dry-bulb temperature for air-cooled products and evaporatively-cooled products, and at
  85[deg]F entering water temperature for water-cooled products. All COP values must be rated at 47[deg]F
  outdoor dry-bulb temperature for air-cooled products, and at 70[deg]F entering water temperature for water-
  source heat pumps.
[Dagger][Dagger][Dagger] Standard size refers to PTAC or PTHP equipment with wall sleeve dimensions [gteqt]16
  inches high, or [gteqt]42 inches wide.
[diam] Non-standard size refers to PTAC or PTHP aequipment with wall sleeve dimensions less than 16 inches high
  and less than 42 inches wide. ASHRAE/IESNA Standard 90.1-1999 also includes a factory labeling requirement for
  non-standard size PTAC and PTHP equipment as follows: ``MANUFACTURED FOR REPLACEMENT APPLICATIONS ONLY; NOT TO
  BE INSTALLED IN NEW CONSTRUCTION PROJECTS.''
[diam][diam] Cap means cooling capacity in kBtu/h at 95[deg]F outdoor dry-bulb temperature.
[diam][diam][diam] Coefficient of Performance.

D. Summary of DOE's Preliminary Assessment of Equipment for Energy-
Savings Analysis

    DOE has reached a preliminary conclusion for each of the classes of 
commercial equipment for which ASHRAE Standard 90.1-2007 modified the 
pre-existing minimum efficiency standard. For each class of commercial 
equipment for which ASHRAE modified the pre-existing standard, DOE 
assessed whether the change made would increase energy efficiency and, 
therefore, require an energy-savings potential analysis. This 
assessment is summarized in Section II of this NODA. Table I.1 
indicates whether DOE concluded, based on this assessment, that an 
energy-savings potential analysis is required. For those products for 
which such an analysis is required, DOE has indicated the results of 
its preliminary analysis in section III.
    Based upon DOE's analysis in section II, DOE has determined that 
ASHRAE increased the efficiency level for the following equipment 
classes. Accordingly, DOE performed an energy-savings analysis for 
these equipment types, the results of which are presented in section 
III. These equipment classes include:
     Small, Gas-Fired Hot Water Commercial Packaged Boilers;
     Small, Gas-Fired, Steam, All Except Natural Draft 
Commercial Packaged Boilers;
     Small, Gas-Fired, Steam, Natural Draft, Commercial 
Packaged Boilers;
     Small, Oil-Fired, Hot Water Commercial Packaged Boilers;
     Small, Oil-Fired, Steam, Commercial Packaged Boilers;
     Large, Gas-Fired, Hot Water Commercial Packaged Boilers;
     Large, Gas-Fired, Steam, All Except Natural Draft 
Commercial Packaged Boilers;
     Large, Gas-Fired, Steam, Natural Draft, Commercial 
Packaged Boilers;
     Large, Oil-Fired, Hot Water Commercial Packaged Boilers.

[[Page 40776]]

II. Discussion of Equipment for Further Consideration

    As discussed above, before beginning an analysis of the potential 
energy savings that would result from adopting the efficiency levels 
specified by ASHRAE Standard 90.1-2007 or more stringent efficiency 
levels, DOE first determined whether or not the ASHRAE Standard 90.1-
2007 efficiency levels actually represented an increase in efficiency 
above the current Federal standard levels. This section contains a 
discussion of each equipment class where the ASHRAE Standard 90.1-2007 
efficiency level differs from the current Federal standard level, along 
with a preliminary conclusion as to the action DOE would take with 
respect to that equipment.

A. Commercial Warm-Air Furnaces

    Under EPCA, a ``warm air furnace'' is defined as ``a self-contained 
oil- or gas-fired furnace designed to supply heated air through ducts 
to spaces that require it and includes combination warm air furnace/
electric air-conditioning units but does not include unit heaters and 
duct furnaces.'' (42 U.S.C. 6311(11)(A)) In its regulations, DOE 
defines a ``commercial warm air furnace'' as a ``warm air furnace that 
is industrial equipment, and that has a capacity (rated maximum input) 
of 225,000 Btu per hour or more.'' 10 CFR 431.72. The amendments in 
ASHRAE Standard 90.1-2007 trigger DOE to evaluate two types of 
furnaces: (1) Gas-fired commercial warm air furnaces, and (2) oil-fired 
commercial warm air furnaces.
 1. Gas-Fired Commercial Warm-Air Furnaces
    Gas-fired commercial warm-air furnaces are fueled by either natural 
gas or propane. The Federal minimum energy conservation standard for 
commercial gas-fired warm-air furnaces corresponds to the efficiency 
level in ASHRAE Standard 90.1-1999, which specifies for equipment with 
a capacity of 225,000 Btu/h or more, the thermal efficiency at the 
maximum rated capacity (rated maximum input) must be no less than 80 
percent. 10 CFR Part 431.77(a). The Federal minimum energy conservation 
standard for gas-fired commercial warm-air furnaces applies to 
equipment manufactured on or after January 1, 1994. 10 CFR 431.77.
    ASHRAE changed the efficiency levels for gas-fired commercial warm-
air furnaces by changing the metric from a thermal efficiency 
descriptor to a combustion efficiency descriptor and adding three 
design requirements. Specifically, the efficiency levels in ASHRAE 
Standard 90.1-2007 specify a minimum combustion efficiency of 80 
percent. ASHRAE Standard 90.1-2007 also specifies the following design 
requirements for commercial gas-fired warm-air furnaces: The gas-fired 
commercial warm-air furnace must use an interrupted or intermittent 
ignition device, have jacket losses no greater than 0.75 percent of the 
input rating, and use a power vent or flue damper.
    In order to evaluate the change in efficiency level (if any) 
effectuated by the amended ASHRAE standard, DOE reviewed the change of 
metric for gas-fired commercial warm-air furnaces. In general, the 
energy efficiency of a product is a function of the relationship 
between the product's output of services and its energy input. A 
furnace's output is largely the energy content of its output (i.e., 
warm air delivered to the building). A furnace's energy losses consist 
of energy that escapes through its flue (commonly referred to as ``flue 
losses''), and of energy that escapes into the area surrounding the 
furnace (commonly referred to as ``jacket losses'').
    In a final rule published in the Federal Register on October 21, 
2004 (the October 2004 final rule), DOE incorporated definitions for 
commercial warm-air furnaces and its efficiency descriptor, energy 
efficiency test procedures, and energy conservation standards. 69 FR 
61916. In the October 2004 final rule, DOE pointed out that EPCA 
specifies the energy conservation standard levels for commercial warm-
air furnaces in terms of thermal efficiency (42 U.S.C. 6313(a)(4)(A)-
(B); 10 CFR 431.77), but provides no definition for this term. DOE 
proposed to interpret this term in the context of commercial warm-air 
furnaces to mean combustion efficiency (i.e., 100 percent minus percent 
flue loss). Id. at 61919. Given use of the thermal efficiency term in 
EPCA and its continued use as the efficiency descriptor for furnaces in 
ANSI Standard Z21.47, Gas-Fired Central Furnaces (DOE's test procedure 
for this equipment), DOE stated that it would be confusing to use the 
term ``combustion efficiency'' in the final rule. Accordingly, DOE 
defined the term ``thermal efficiency'' to mean 100 percent minus the 
percent flue loss in the October 2004 final rule for gas-fired 
commercial warm-air furnaces. Id.
    Upon reviewing the efficiency levels and methodology specified in 
ASHRAE Standard 90.1-2007, DOE believes that despite changing the name 
of the energy efficiency descriptor from ``thermal efficiency'' to 
``combustion efficiency,'' ASHRAE did not intend to change the 
efficiency metric for gas-fired commercial warm air furnaces. When 
ASHRAE specified a newer version of the test procedure manufacturers 
use for gas-fired commercial air furnaces (i.e., ANSI Standard Z21.47-
2001), the calculation of thermal efficiency did not change from the 
previous version. So despite that change in the name of the energy 
efficiency descriptor, DOE believes that in the present context, the 
terms are synonymous, because the calculation of that value has not 
changed (i.e. , 100 percent minus the percent flue loss). DOE sees no 
plausible reason why ASHRAE would have chosen to incorporate a 
different metric than that used in the ANSI Standard Z21.47-2001 test 
procedure. Consequently, because the amendments for this type of 
product set out in ASHRAE Standard 90.1-2007 do not appear to have 
changed the efficiency level, DOE tentatively plans to leave the 
existing Federal energy conservation standards in place for gas-fired 
commercial warm air furnaces, which specify a thermal efficiency of 80 
percent using the definition of ``thermal efficiency'' established by 
DOE in the October 2004 final rule and presented in subpart D to 10 CFR 
part 431.
2. Oil-Fired Commercial Warm-Air Furnaces
    The Federal minimum energy conservation standard for commercial 
oil-fired warm-air furnaces corresponds to the efficiency level in 
ASHRAE Standard 90.1-1999, which specifies that for equipment with a 
capacity of 225,000 Btu/h or more, the thermal efficiency at the 
maximum rated capacity (rated maximum input) must be no less than 81 
percent. 10 CFR 431.77(b). The Federal minimum energy conservation 
standard for oil-fired commercial warm-air furnaces applies to 
equipment manufactured on or after January 1, 1994. 10 CFR 431.77.
    The efficiency level in ASHRAE Standard 90.1-2007 specifies a 
minimum thermal efficiency of 81 percent. ASHRAE did not change the 
efficiency levels for oil-fired commercial warm-air furnaces, but 
ASHRAE added three design requirements. ASHRAE Standard 90.1-2007 now 
specifies that commercial, oil-fired, warm-air furnaces must use an 
interrupted or intermittent ignition device, have jacket losses no 
greater than 0.75 percent of the input rating, and use a power vent or 
flue damper.
    DOE published a final rule in the Federal Register on March 7, 
2007, which states that the statutory trigger that requires DOE to 
adopt uniform national standards based on ASHRAE action is for ASHRAE 
to change a

[[Page 40777]]

standard by increasing the energy efficiency of the equipment listed in 
EPCA section 342(a)(6)(A)(i) (42 U.S.C. 6313 (a)(6)(A)(i)). 72 FR 
10038, 10042. If ASHRAE merely considers raising the standards for any 
of the equipment listed in this section but ultimately decides to leave 
the standard levels unchanged or lowers the standard, DOE does not have 
the authority to conduct a rulemaking for higher standards. Id. If 
ASHRAE imposes more stringent standards for a specific subset of the 
listed equipment, DOE only has the authority to adopt the ASHRAE levels 
for that subset of equipment and its effective dates specified in the 
new ASHRAE standard. Id.
    In practice, 42 U.S.C. 6313 generally allows ASHRAE Standard 90.1 
to set minimum energy efficiency levels for equipment as a model 
building code and directs DOE to use these efficiency levels as the 
basis for maintaining consistent, uniform national energy conservation 
standards for the same equipment, provided all other applicable 
statutory requirements are met. If ASHRAE has not changed an efficiency 
level for a class of equipment subject to 42 U.S.C. 6313, DOE does not 
have authority to consider amending the uniform national standard at 
the time of publication of the amended ASHRAE Standard 90.1. Therefore, 
although ASHRAE added design requirements in ASHRAE Standard 90.1-2007, 
it did not change the efficiency levels for oil-fired commercial warm-
air furnaces. Therefore, DOE does not have authority to amend the 
uniform national standard for this equipment. As stated in the March 
2007 final rule, DOE believes that the statutory language specifically 
links ASHRAE's action in changing standards for specific equipment as a 
prerequisite to DOE's action for that same equipment. 72 FR 10038, 
10042 (March 7, 2007).

B. Commercial Package Air-Conditioning and Heating Equipment

    EPCA, as amended, includes the following definition of ``commercial 
package air-conditioning and heating equipment'': ``air-cooled, water-
cooled, evaporatively-cooled, or water source (not including ground 
water source) electrically operated, unitary central air conditioners 
and central air-conditioning heat pumps for commercial application.'' 
(42 U.S.C. 6311(8)(A); 10 CFR 431.92) EPCA also defines ``small,'' 
``large,'' and ``very large commercial package air-conditioning and 
heating equipment'' based on the equipment's rated cooling capacity. 
(42 U.S.C. 6311(8)(B)-(D); 10 CFR 431.92) ``Small commercial package 
air-conditioning and heating equipment'' means ``commercial package 
air-conditioning and heating equipment that is rated below 135,000 Btu 
per hour (cooling capacity).'' (42 U.S.C. 6311(8)(B); 10 CFR 431.92) 
``Large commercial package air-conditioning and heating equipment'' 
means ``commercial package air-conditioning and heating equipment that 
is rated: (i) at or above 135,000 Btu per hour; and (ii) below 240,000 
Btu per hour (cooling capacity). (42 U.S.C. 6311(8)(C); 10 CFR 431.92) 
``Very large commercial package air-conditioning and heating 
equipment'' means ``commercial package air-conditioning and heating 
equipment that is rated: (i) at or above 240,000 Btu per hour; and (ii) 
below 760,000 Btu per hour (cooling capacity). (42 U.S.C. 6311(8)(D); 
10 CFR 431.92)
1. Three-Phase, Through-the-Wall Air-Cooled Air Conditioners and Heat 
Pumps
    ASHRAE Standard 90.1-2007 identifies efficiency levels for three-
phase through-the-wall air-cooled air conditioners and heat pumps, 
single package and split systems, with a cooling capacity of no greater 
than 30,000 Btu/h. The efficiency levels specified by ASHRAE Standard 
90.1-2007 include a seasonal energy efficiency ratio of 12.0 for 
cooling mode and a heating seasonal performance factor of 7.4 for 
equipment manufactured on or after January 23, 2010.\8\ ASHRAE aligned 
these efficiency levels and its corresponding effective dates with the 
efficiency levels established in EPCA for single-phase residential 
versions of the same products.
---------------------------------------------------------------------------

    \8\ ASHRAE provides the same requirement for single-phase and 
three-phase through-the-wall air-cooled air conditioners and heat 
pumps used in covered commercial buildings, but points out that 
single-phase products are regulated as residential products under 10 
CFR 430.32(c)(2).
---------------------------------------------------------------------------

    Neither EPCA nor DOE has established a specific definition for 
commercial ``through-the-wall air-cooled air conditioners and heat 
pumps.'' The residential through-the-wall air-cooled air conditioners 
and heat pumps covered under EPCA, as amended by the National Appliance 
Energy Conservation Act of 1987 (NAECA) (Pub. L. 100-12) and defined in 
10 CFR 430.2, are by definition single-phase products, whereas the 
commercial through-the-wall air-cooled air conditioners and heat pumps 
mentioned in ASHRAE Standard 90.1-2007 are three-phase products. In its 
regulations, DOE defines a residential ``through-the-wall air 
conditioner and heat pump'' as ``a central air conditioner or heat pump 
that is designed to be installed totally or partially within a fixed-
size opening in an exterior wall. * * *'' 10 CFR 430.2. Furthermore, 
this equipment: (1) Must be manufactured before January 23, 2010; (2) 
must not be weatherized; (3) must be clearly and permanently marked for 
installation only through an exterior wall; (4) have a rated cooling 
capacity no greater than 30,000 Btu/h; (5) exchange all of its outdoor 
air across a single surface of the equipment cabinet; and (6) have a 
combined outdoor air exchange area of less than 800 square inches 
(split systems) or less than 1,210 square inches (single packaged 
systems) as measured on the surface described in paragraph (5) of this 
definition. Id.
    In terms of equipment construction, commercial and residential 
through-the-wall air-cooled air conditioners and heat pumps are 
believed to utilize the same components in the same configurations to 
provide space cooling and heating. DOE believes commercial versions of 
through-the-wall air-cooled air conditioners and heat pumps are 
essentially the same as residential versions, except that they are 
powered using three-phase electric power.
    EPCA does not separate three-phase, through-the-wall air-cooled air 
conditioners and heat pumps from other types of small commercial 
package air-conditioning and heating equipment in its definitions. 
Therefore, EPCA's definition of ``small commercial package air-
conditioning and heating equipment'' would include three-phase through-
the-wall air-cooled air conditioners and heat pumps. Although EPCA does 
not use the term ``three-phase through-the-wall air-cooled air 
conditioners and heat pumps,'' the three-phase versions of this 
equipment, regardless of cooling capacity, fall within the definition 
of ``small commercial package air-conditioning and heating equipment.'' 
(42 U.S.C. 6311(8)(A)-(B)) There is no language in EPCA to indicate 
that three-phase through-the-wall air-cooled air conditioners and heat 
pumps are a separate type of covered equipment.
    The Federal energy conservation standards for three-phase, 
commercial package air conditioners and heat pumps less than 65,000 
Btu/h were established by EISA 2007 for such products manufactured on 
or after June 19, 2008. Specifically, section 314(b)(4)(C) of EISA 2007 
amended section 342(a) of EPCA (42 U.S.C. 6313(a)) by adding new 
provisions for three-phase commercial package air conditioners with a 
cooling capacity of less than 65,000 Btu/h. (42 U.S.C.

[[Page 40778]]

6313(a)(7)(D)) The provision in EISA 2007 mandates minimum seasonal 
energy efficiency ratios for cooling mode and minimum heating seasonal 
performance factors for heating mode of air-cooled, three-phase 
electric central air conditioners and central air-conditioning heat 
pumps with a cooling capacity of less than 65,000 Btu/h.\9\ Three-
phase, through-the-wall, air-cooled air conditioners and heat pumps are 
a smaller subset of three-phase commercial package air conditioners 
with a cooling capacity of less than 65,000 Btu/h and were not 
explicitly excluded from the standards in section 314(b)(4)(C) of EISA 
2007. Because EISA 2007 set such standards, DOE must follow them, and 
they are more stringent than the levels contained in ASHRAE Standard 
90.1-2007 for those products. Accordingly, DOE affirms that the EISA 
2007 efficiency levels for small commercial package air-conditioning 
and heating equipment less than 65,000 Btu/h apply to three-phase 
through-the-wall air-cooled air conditioners and heat pumps with a 
cooling capacity no greater than 30,000 Btu/h. (42 U.S.C. 
6313(a)(7)(D)) Therefore, no further analysis is required for three-
phase, through-the-wall, air-cooled air conditioners and heat pumps.
---------------------------------------------------------------------------

    \9\ Section 314(b)(4)(C) of EISA specifies for ``equipment 
manufactured on or after the later of January 1, 2008, or the date 
that is 180 days after the date of enactment of the Energy 
Independence and Security Act of 2007--
    (i) The minimum seasonal energy efficiency ratio of air-cooled 
3-phase electric central air conditioners and central air-
conditioning heat pumps less than 65,000 Btu per hour (cooling 
capacity), split systems, shall be 13.0;
    (ii) the minimum seasonal energy efficiency ratio of air-cooled 
3-phase electric central air conditioners and central air-
conditioning heat pumps less than 65,000 Btu per hour (cooling 
capacity), single package, shall be 13.0;
    (iii) the minimum heating seasonal performance factor of air-
cooled 3-phase electric central air-conditioning heat pumps less 
than 65,000 Btu per hour (cooling capacity), split systems, shall be 
7.7; and
    (iv) the minimum heating seasonal performance factor of air-
cooled 3-phase electric central air-conditioning heat pumps less 
than 65,000 Btu per hour (cooling capacity), single package, shall 
be 7.7.'' (42 U.S.C. 6313(a)(7)(D))
---------------------------------------------------------------------------

2. Three-Phase, Small-Duct, High-Velocity Air-Cooled Air Conditioners 
and Heat Pumps
    ASHRAE Standard 90.1-2007 identifies efficiency levels for three-
phase small-duct, high-velocity (SDHV) air-cooled air conditioners and 
heat pumps, both single-package and split systems, with a cooling 
capacity less than 65,000 Btu/h.\10\ The efficiency levels specified by 
ASHRAE Standard 90.1-2007 include a seasonal energy efficiency ratio of 
10.0 for cooling mode and a heating seasonal performance factor of 6.8 
for equipment. ASHRAE aligned these efficiency levels and the 
corresponding effective dates with the efficiency levels established in 
EPCA for single-phase residential versions of the same products.
---------------------------------------------------------------------------

    \10\ ASHRAE Standard 90.1-2007 includes efficiency levels for 
three-phase and single-phase SDHV air-cooled air conditioners and 
heat pumps used in commercial buildings. ASHRAE Standard 90.1-2007 
also includes a footnote to these provisions, which indicates that 
the single-phase versions of this equipment are regulated as 
residential products under 10 CFR 430.32(c)(2).
---------------------------------------------------------------------------

    Just as with three-phase, through-the-wall air-cooled air 
conditioners and heat pumps, neither EPCA nor DOE has established a 
specific definition for commercial ``three-phase SDHV air conditioners 
and heat pumps.'' In its regulations, DOE defines a residential small-
duct, high-velocity (SDHV) air-cooled air conditioner or heat pump as 
``a heating and cooling product that contains a blower and indoor coil 
combination that: (1) Is designed for, and produces, at least 1.2 
inches of external static pressure when operated at the certified air 
volume rate of 220-350 CFM [cubic feet per minute] per rated ton of 
cooling; and (2) When applied in the field, uses high velocity room 
outlets generally greater than 1,000 fpm [feet per minute] which have 
less than 6.0 square inches of free area.'' 10 CFR 430.2.
    In terms of equipment construction, commercial and residential SDHV 
air conditioners and heat pumps are believed to utilize the same 
components in the same configurations to provide space cooling and 
heating. DOE believes commercial versions of SDHV systems are 
essentially the same as residential versions, except that they are 
powered using three-phase electric power.
    EPCA does not separate three-phase, SDHV air conditioners and heat 
pumps from other types of small commercial package air-conditioning and 
heating equipment in its definitions. Therefore, EPCA's definition of 
``small commercial package air-conditioning and heating equipment'' 
would include three-phase SDHV air conditioners and heat pumps. 
Although EPCA does not use the term ``three-phase SDHV air conditioners 
and heat pumps,'' the three-phase versions of this equipment, 
regardless of cooling capacity, fall within the definition of ``small 
commercial package air-conditioning and heating equipment.'' (42 U.S.C. 
6311(8)(A)-(B)) There is no language in EPCA to indicate that three-
phase SDHV air conditioners and heat pumps are a separate type of 
covered equipment.
    The Federal energy conservation standards for three-phase, 
commercial package air conditioners and heat pumps less than 65,000 
Btu/h were established by EISA 2007 for products manufactured on or 
after June 19, 2008. Specifically, section 314(b)(4)(C) of EISA 2007 
amended section 342(a) of EPCA (42 U.S.C. 6313(a)) by adding new 
provisions for three-phase commercial package air conditioners with a 
cooling capacity of less than 65,000 Btu/h. (42 U.S.C. 6313(a)(7)(D)) 
As mentioned previously, the provision in EISA 2007 mandates minimum 
seasonal energy efficiency ratios for cooling mode and minimum heating 
seasonal performance factors for heating mode of air-cooled, three-
phase electric central air conditioners and central air-conditioning 
heat pumps with a cooling capacity of less than 65,000 Btu/h. (42 
U.S.C. 6313(a)(7)(D)) Three-phase, SDHV air conditioners and heat pumps 
are a smaller subset of three-phase commercial package air conditioners 
with a cooling capacity of less than 65,000 Btu/h and were not 
explicitly excluded from the standards in section 314(b)(4)(C) of EISA 
2007. Because EISA 2007 set such standards, DOE must follow them, and 
they are more stringent than the levels contained in ASHRAE Standard 
90.1-2007 for those products.
    Additionally, the residential versions of SDHV are subject to an 
exception issued by the Office of Heating and Appeals (OHA). On October 
14, 2004, OHA granted an exception to SpacePak and Unico, Inc., 
authorizing them to manufacture SDHV systems (as defined in 10 CFR 
430.2) with a SEER of no less than 11.0 and an HSPF of 6.8. The 
exception relief will remain in effect until the agency modifies the 
general energy efficiency standard for central air conditioners and 
establishes a different standard for SDHV systems that complies with 
EPCA.\11\ However, this exception only applies to the residential, 
single-phase SDHV systems and would, therefore, exclude three-phase 
SDHV equipment.
---------------------------------------------------------------------------

    \11\ DOE's Office of Hearing and Appeals. Decision and Order: 
Applications for Exception. October 14, 2004. http://www.oha.doe.gov/cases/ee/tee0010.pdf.
---------------------------------------------------------------------------

    Thus, manufacturers of three-phase SDHV equipment must follow the 
energy conservation standards in EISA 2007. Accordingly, DOE affirms 
that the EISA 2007 efficiency levels for three-phase small commercial 
package air-conditioning and heating equipment less than 65,000 Btu/h 
apply to three-phase SDHV air-cooled air conditioners and heat pumps 
with a cooling capacity

[[Page 40779]]

less than 65,000 Btu/h. Therefore, no further analysis is required for 
the three-phase SDHV air-cooled air conditioners and heat pumps.
3. Commercial Package Air-Cooled Air Conditioners With a Cooling 
Capacity at or Above 760,000 Btu per Hour
    EPCA specifies energy conservation standards for small (cooling 
capacities at or above 65,000 and less than 135,000 Btu/h), large 
(cooling capacities at or above 135,000 and less than 240,000 Btu/h), 
and very large (cooling capacities at or above 240,000 and less than 
760,000 Btu/h) commercial package air-cooled air conditioners. (42 
U.S.C. 6313(a)(1)-(2), (7)-(9); 10 CFR Part 431.97) However, there are 
no Federal energy conservation standards for commercial package air-
cooled air conditioners with a cooling capacity at or above 760,000 
Btu/h. In contrast, ASHRAE Standard 90.1-2007 sets the minimum energy 
efficiency levels for this equipment at 9.7 EER for equipment with 
electric resistance heating, and 9.5 EER for equipment with any other 
type of heating or without heating. The efficiency level in ASHRAE 
Standard 90.1-2007 applies to equipment manufactured on or after 
January 1, 2010.
    Thus, units with capacities at or above 760,000 Btu/h fall outside 
the definitions of the small, large, and very large commercial package 
air-cooled air conditioner equipment classes established in EPCA. (42 
U.S.C. 6311(8)(A)-(D); 10 CFR Part 431.92) Therefore, DOE has 
tentatively concluded that it does not have the authority to review the 
efficiency level for that equipment.
4. Water-Cooled and Evaporatively-Cooled Commercial Package Air 
Conditioners and Heat Pumps With a Cooling Capacity at or Above 135,000 
Btu per Hour and Less Than 240,000 Btu per Hour
    The current Federal energy conservation standard for water-cooled 
and evaporatively-cooled commercial package air conditioners and heat 
pumps with a cooling capacity at or above 135,000 Btu/h and less than 
240,000 Btu/h requires an EER no less than 11.0 for equipment 
manufactured on or after October 29, 2004. 10 CFR 431.97, Table 1.
    ASHRAE Standard 90.1-2007 includes the same efficiency level for 
water-cooled and evaporatively-cooled commercial package air 
conditioners and heat pumps with a cooling capacity at or above 135,000 
Btu/h and less than 240,000 Btu/h that use electric resistance heating 
(i.e., an EER no less than 11.0). However, ASHRAE Standard 90.1-2007 
specifies a different efficiency level for water-cooled and 
evaporatively-cooled commercial package air conditioners and heat pumps 
with a cooling capacity at or above 135,000 Btu/h and less than 240,000 
Btu/h that use any type of heating other than electric resistance 
(i.e., an EER no less than 10.8).
    DOE reviewed the January 2001 final rule and ASHRAE Standard 90.1-
1999 to determine the efficiency levels applicable to water-cooled and 
evaporatively-cooled commercial package air conditioners and heat pumps 
with a cooling capacity at or above 135,000 Btu/h and less than 240,000 
Btu/h. The January 2001 final rule did not establish different 
efficiency levels for different types of supplemental heating systems 
associated with this equipment. All large water-cooled and 
evaporatively-cooled commercial package air conditioners and heat pumps 
were subject to the same minimum efficiency level of 11.0 EER 
regardless of heating type. ASHRAE Standard 90.l-1999 did establish 
different efficiency levels applicable to water-cooled and 
evaporatively-cooled commercial package air conditioners and heat pumps 
with a cooling capacity at or above 135,000 Btu/h and less than 240,000 
Btu/h for different types of supplemental heating systems.
    DOE has tentatively concluded that the ASHRAE Standard 90.1-2007 
efficiency levels for water-cooled and evaporatively cooled commercial 
package air conditioners and heat pumps with a cooling capacity at or 
above 135,000 Btu/h and less than 240,000 Btu/h that utilize any type 
of heating other than electric resistance would have the effect of 
lowering the minimum efficiency levels (i.e., EER) required by EPCA and 
allow increased energy consumption. Because of backsliding concerns, 
DOE has tentatively decided not to adopt the ASHRAE Standard 90.1-2007 
efficiency levels for water-cooled and evaporatively cooled commercial 
package air conditioners and heat pumps with a cooling capacity at or 
above 135,000 Btu/h and less than 240,000 Btu/h that utilize any type 
of heating other than electric resistance. Therefore, further analysis 
is not required.
5. Water-Cooled and Evaporatively-Cooled Commercial Package Air 
Conditioners and Heat Pumps With a Cooling Capacity at or Above 240,000 
Btu per Hour
    EPCA defines ``commercial package air-conditioning and heating 
equipment'' as ``air-cooled, water-cooled, evaporatively-cooled, or 
water source (not including ground water source) electrically operated, 
unitary central air conditioners and central air-conditioning heat 
pumps for commercial application.'' (42 U.S.C. 6311(8)(A); 10 CFR 
431.92) EPCA goes on to define ``very large commercial package air-
conditioning and heating equipment'' as commercial package air-
conditioning and heating equipment that is rated at or above 240,000 
Btu per hour and below 760,000 Btu per hour (cooling capacity). (42 
U.S.C. 6311(8)(D); 10 CFR 431.92) Although water-cooled and 
evaporatively-cooled commercial package air conditioners and heat pumps 
with a cooling capacity at or above 240,000 Btu/h and less than 760,000 
Btu/h fall within the definition of very large commercial package air-
conditioning and heating equipment, EPCA does not specify Federal 
energy conservation standards for this equipment class. (EPCA set 
standards for air-cooled systems only, under 42 U.S.C. 6313(a)(7)-(9).) 
ASHRAE added this new equipment class to ASHRAE Standard 90.1-2007, 
setting minimum efficiency levels at 11.0 EER for equipment with 
electric resistance heating, and at 10.8 EER for equipment with all 
other types of heating or without heating. Under EPCA, DOE must either 
adopt the efficiency level specified in ASHRAE Standard 90.1-2007 for 
this new class of equipment, or consider a more stringent level that 
would result in significant additional energy savings and is 
technologically feasible and economically justified. (42 U.S.C. 
6313(a)(6))
    DOE reviewed the market for water-cooled and evaporatively-cooled 
commercial package air conditioners and heat pumps and found that 
manufacturers offer few models. Furthermore, DOE surveyed the Air-
conditioning, Heating, and Refrigerating Institute (AHRI) Directory of 
Certified Product Performance and did not identify any equipment on the 
market with a cooling capacity at or above 240,000 Btu/h. Because there 
is currently no equipment in this class being manufactured, there are 
no energy savings associated with this class at this time; therefore, 
it is not possible to assess the potential for additional energy 
savings beyond the levels

[[Page 40780]]

anticipated in ASHRAE Standard 90.1-2007. Thus, DOE did not perform a 
potential energy-savings analysis on this equipment type. DOE seeks 
comments from interested parties on the market and energy savings 
potential for this equipment type. This is Issue 1 under ``Issues on 
Which DOE Seeks Comment'' in section IV.B of this NODA.

C. Packaged Terminal Air Conditioners and Heat Pumps

    EPCA defines a ``packaged terminal air conditioner'' as ``a wall 
sleeve and a separate unencased combination of heating and cooling 
assemblies specified by the builder and intended for mounting through 
the wall. It includes a prime source of refrigeration, separable 
outdoor louvers, forced ventilation, and heating availability by 
builder's choice of hot water, steam, or electricity.'' (42 U.S.C. 
6311(10)(A)) EPCA defines a ``packaged terminal heat pump'' as ``a 
packaged terminal air conditioner that utilizes reverse cycle 
refrigeration as its prime heat source and should have supplementary 
heat source available to builders with the choice of hot water, steam, 
or electric resistant heat.'' (42 U.S.C. 6311(10)(B)) DOE codified 
these definitions in 10 CFR 431.92 in a final rule published in the 
Federal Register on October 21, 2004. 69 FR 61962, 61970.
    The current energy conservation standards in EPCA for PTACs and 
PTHPs apply to all equipment manufactured on or after January 1, 1994 
(42 U.S.C. 6313(a)(3)), and correspond to the minimum efficiency levels 
in ASHRAE/IESNA Standard 90.1-1989. ASHRAE specified more stringent 
efficiency levels for PTACs and PTHPs in ASHRAE Standard 90.1-2007, 
corresponding to the efficiency levels in ASHRAE Standard 90.1-1999. 
The efficiency levels vary by equipment type (i.e., air conditioner or 
heat pump), wall sleeve dimensions (i.e., new construction and 
replacement), and cooling capacity.
    In response to the efficiency levels in ASHRAE Standard 90.1-1999, 
the March 2007 final rule states that DOE has decided to explore more 
stringent efficiency levels than in ASHRAE/IESNA Standard 90.1-1999 for 
PTACs and PTHPs through a separate rulemaking. 72 FR 10038, 10045 
(March 7, 2007). Recently, DOE published a notice of proposed 
rulemaking (NOPR) proposing more stringent standards than the 
efficiency levels in ASHRAE Standard 90.1-2007 for all types of PTACs 
and PTHPs. 73 FR 18858 (April 7, 2008). Since DOE is evaluating 
standard levels for packaged terminal air conditioners and heat pumps 
in a separate rulemaking,\12\ DOE is excluding PTACs and PTHPs from 
further consideration, and interested parties can review the energy 
savings potential of more stringent efficiency levels in the April 2008 
NOPR.

D. Commercial Water Heaters

1. Oil-Fired Instantaneous Water Heaters
    EPCA defines an ``instantaneous water heater'' as ``a water heater 
that has an input rating of at least 4,000 Btu per hour per gallon of 
stored water.'' (42 U.S.C. 6311(12)(B)) DOE incorporated a more 
specific definition of instantaneous water heater into 10 CFR 431.105, 
which specifies that an oil-fired instantaneous water heater has an 
input rating no less than 4,000 Btu/h per gallon of stored water, and 
that it is industrial equipment (including equipment that heats water 
to 180 [deg]F or higher).
---------------------------------------------------------------------------

    \12\ For more information about the Packaged Terminal Air 
Conditioners and Heat Pumps rulemaking, visit the DOE Web site at: 
http://www.eere.energy.gov/buildings/appliance_standards/commercial/packaged_ac_hp.html.
---------------------------------------------------------------------------

    The Federal energy conservation standard for oil-fired 
instantaneous water heaters is a minimum thermal efficiency of 78 
percent and a maximum standby loss of Q/800 + 
110(Vr)1/2, where Q is the nameplate input rating 
in Btu/h and Vr is the rated volume in gallons. 10 CFR 
431.110. ASHRAE Standard 90.1-2007 did not change this minimum thermal 
efficiency requirement. ASHRAE Standard 90.1-2007 contains an 
efficiency-level specification for the maximum standby loss, which is 
Q/800 + 110(V)1/2, where Q is the nameplate input rating in 
Btu/h and V is the rated volume in gallons. Since Vr and V 
are both defined as rated volume in gallons, DOE has determined there 
is no difference between the standby provisions for the Federal energy 
conservation standard and the requirements specified by ASHRAE Standard 
90.1-2007. Therefore, further analysis is not required.
2. Electric Storage Water Heaters
    EPCA defines a ``storage water heater'' as equipment that ``heats 
and stores water within the appliance at a thermostatically controlled 
temperature for delivery on demand. Such term does not include units 
with an input rating of 4,000 Btu/hr or more per gallon of stored 
water.'' (42 U.S.C. 6311(12)(A); 10 CFR 431.102) Electric storage water 
heaters are storage water heaters that heat water using electric 
resistance heating elements.
    The Federal energy conservation standard for electric storage water 
heaters is set under EPCA as ``the maximum standby loss, in percent per 
hour, of electric storage water heaters shall be 0.30 + (27/Measured 
Storage Volume [in gallons]).'' (42 U.S.C. 6313(a)(5)(A); 10 CFR 
431.110) ASHRAE Standard 90.1-2007 (which remains unchanged from 
Standard 90.1-1999) specifies a maximum standby loss in Btu per hour, 
of 20 + (35[radic]V), where V is the rated volume of the tank in 
gallons.
    As discussed in the January 2001 final rule, DOE determined that 
the efficiency level in ASHRAE Standard 90.1-1999 (which is the same as 
the efficiency level specified by ASHRAE Standard 90.1-2007) would 
increase energy consumption relative to the standard in EPCA. 66 FR 
3336, 3350 (Jan. 12, 2001). DOE further stated that under these 
circumstances, DOE cannot adopt the new efficiency level, because EPCA 
stipulates that its standards cannot be relaxed. Id. Therefore, DOE did 
not adopt the requirement specified by ASHRAE Standard 90.1-1999 for 
electric storage water heaters, thereby leaving the existing EPCA 
standards in place.
    Since ASHRAE incorporated exactly the same efficiency levels in 
ASHRAE Standard 90.1-2007 as it did in ASHRAE Standard 90.1-1999, DOE 
does not see why its conclusion would differ from the one it presented 
in the January 2001 final rule. Under these circumstances, DOE has 
tentatively concluded that it cannot adopt the amended efficiency level 
for electric storage water heaters. Therefore, no further analysis is 
necessary.

E. Commercial Packaged Boilers

    EPCA defines a ``packaged boiler'' as ``a boiler that is shipped 
complete with heating equipment, mechanical draft equipment, and 
automatic controls; usually shipped in one or more sections.'' (42 
U.S.C. 6311(11)(B)). In its regulations at 10 CFR 431.102, DOE further 
refined the ``packaged boiler'' definition to not include a boiler that 
is custom designed and field constructed; additionally, if the boiler 
is shipped in more than one section, the sections may be produced by 
more than one manufacturer, and may be originated or shipped at 
different times and from more than one location. There are various 
different types of commercial packaged boilers, which can be 
distinguished based on the input capacity size (i.e., small or large), 
fuel type (i.e., oil or gas), output (i.e., hot water or steam), and 
draft type (i.e., natural draft or other).

[[Page 40781]]

    The Federal energy conservation standards separate commercial 
packaged boilers only by the type of fuel used by the boiler, creating 
two equipment classes: (1) gas-fired, and (2) oil-fired. (42 U.S.C. 
6313(a)(4)(C)-(D); 10 CFR 431.87). ASHRAE Standard 90.1-2007 further 
divided these two equipment classes into the following ten classes:
     Small, gas-fired, hot water boilers;
     Small, gas-fired, steam, all except natural draft;
     Small, gas-fired, steam, natural draft boilers;
     Small, oil-fired, hot water boilers;
     Small, oil-fired, steam boilers;
     Large, gas-fired, hot water boilers;
     Large, gas-fired, steam, all except natural draft boilers;
     Large, gas-fired, steam, natural draft boilers;
     Large, oil-fired, hot water boilers; and
     Large, oil-fired, steam boilers.
    EPCA specified minimum Federal standards for commercial packaged 
boilers manufactured on or after January 1, 1994. (42 U.S.C. 
6313(a)(4)(C)-(D); 10 CFR 431.87). The minimum combustion efficiency at 
the maximum rated capacity of a gas-fired packaged boiler with capacity 
of 300,000 Btu/h (300 kBtu/h) or more shall be 80 percent. (42 U.S.C. 
6313(a)(4)(C); 10 CFR 431.87(a)) The minimum combustion efficiency at 
the maximum rated capacity of an oil-fired packaged boiler with 
capacity of 300,000 Btu/h or more shall be 83 percent. (42 U.S.C. 
6313(a)(4)(D); 10 CFR 431.87(b))
    Table II.1 shows the ten equipment classes and efficiency levels 
established by ASHRAE.

         Table II.1.--ASHRAE Standard 90.1-2007 Energy Efficiency Levels for Commercial Packaged Boilers
----------------------------------------------------------------------------------------------------------------
                                                      ASHRAE standard  90.1-2007     ASHRAE standard  90.1-2007
         Equipment type             Size category       (effective 3/2/2010)*          (effective 3/2/2020)*
                                   (Input kBtu/h)             (percent)                      (percent)
----------------------------------------------------------------------------------------------------------------
Small, Gas, Hot Water...........         300-2,500  ET = 80.0....................  ET = 80.0.
Small, Gas, Steam, All Except            300-2,500  ET = 79.0....................  ET = 79.0.
 Natural Draft.
Small, Gas, Steam, Natural Draft         300-2,500  ET = 77.0....................  ET = 79.0.
Small, Oil, Hot Water...........         300-2,500  ET = 82.0....................  ET = 82.0.
Small, Oil, Steam...............         300-2,500  ET = 81.0....................  ET = 81.0.
Large, Gas, Hot Water...........            >2,500  EC = 82.0....................  EC = 82.0.
Large, Gas, Steam, All Except               >2,500  ET = 79.0....................  ET = 79.0.
 Natural Draft.
Large, Gas, Steam, Natural Draft            >2,500  ET = 77.0....................  ET = 79.0.
Large, Oil, Hot Water...........            >2,500  EC = 84.0....................  EC = 84.0.
Large, Oil, Steam...............            >2,500  ET = 81.0....................  ET = 81.0.
----------------------------------------------------------------------------------------------------------------
* EC, combustion efficiency; ET, thermal efficiency.

    ASHRAE changed the metric for determining energy efficiency for 
five equipment classes of small commercial packaged boilers and three 
equipment classes of large commercial packaged boilers in ASHRAE 
Standard 90.1-2007. The Federal energy conservation standards for these 
eight equipment classes are expressed in terms of combustion 
efficiency, whereas the efficiency levels in ASHRAE Standard 90.1-2007 
are expressed in terms of thermal efficiency.
    The combustion efficiency descriptor used in EPCA for commercial 
packaged boilers differs from the thermal efficiency descriptor used in 
Standard 90.1-2007.\13\ In general, the energy efficiency of a product 
is a function of the relationship between the product's output of 
services and its energy input. A boiler's output of services is 
measured largely by the energy content of its output (steam or hot 
water). Consequently, its efficiency is often viewed as the ratio 
between its energy output and energy input, with the energy output 
being calculated as the energy input minus the energy lost in producing 
the output. A boiler's energy losses consist of energy that escapes 
through its flue (commonly referred to as ``flue losses''), and of 
energy that escapes into the area surrounding the boiler (commonly 
referred to as ``jacket losses''). The combustion efficiency descriptor 
described in EPCA only accounts for flue losses and typically is 
defined as ``100 percent minus percent flue loss.'' (42 U.S.C. 
6313(4)(C)-(D)) The thermal efficiency descriptor, as used in Standard 
90.1-2007, accounts for jacket losses as well as flue losses, so it can 
be considered combustion efficiency minus jacket loss. Because all 
boilers will have at least some jacket losses (even if small) and 
because thermal efficiency takes these losses into account, the thermal 
efficiency for a particular boiler will always be lower than its 
combustion efficiency.
---------------------------------------------------------------------------

    \13\ The combustion efficiency descriptor and the thermal 
efficiency descriptor are defined differently for commercial warm 
air furnaces and commercial packaged boilers. The thermal efficiency 
descriptor as it applies to commercial warm air furnaces is defined 
in Subpart D of 10 CFR part 430 as ``one minus flue losses,'' which 
corresponds to the combustion efficiency descriptor for commercial 
packaged boilers.
---------------------------------------------------------------------------

    There is no direct mathematical correlation between these two 
measures of efficiency. The factors that contribute to jacket loss 
(e.g. , the boiler's design and materials) have little or no direct 
bearing on combustion efficiency. The lack of correlation between 
combustion efficiency and thermal efficiency presents some difficulties 
in determining how an energy conservation standard based on thermal 
efficiency, rather than combustion efficiency, would affect the energy 
consumption of commercial packaged boilers.
    EPCA provides that DOE may not prescribe any amended standard that 
increases the maximum allowable energy use, or decreases the minimum 
required energy efficiency of a product covered product. (42 U.S.C. 
6316(a); 42 U.S.C. 6295(o)(1)) Therefore, in evaluating whether to 
adopt the thermal efficiency levels in ASHRAE Standard 90.1-2007 for 
these eight equipment classes, DOE needed to determine whether or not 
they decrease the efficiency levels of the combustion efficiencies that 
EPCA currently requires.
    DOE used the same methodology established in the March 2006 Notice 
of Availability and the March 2007 final rule for investigating the 
metric change for these eight equipment classes. 71 FR 12634, 12639-40 
(March 13, 2006); 72 FR 10038, 10043 (March 7, 2007). If the numeric 
value for the minimum thermal efficiency (expressed as a percentage) 
were at or above the value for the combustion efficiency (expressed as 
a percentage), then clearly the ASHRAE Standard 90.1-2007 efficiency 
levels

[[Page 40782]]

would not be lower than the EPCA energy conservation standard levels. 
If ASHRAE Standard 90.1-2007's thermal efficiency levels for each 
product class of commercial boilers were only slightly lower 
numerically than EPCA's combustion efficiency standards for such 
equipment, the Standard 90.1-2007 efficiency levels also probably would 
not represent a reduction in stringency of the minimum efficiency 
levels (although this would need to be confirmed). However, because the 
ASHRAE Standard 90.1-2007 thermal efficiency levels for some product 
classes of commercial packaged boilers have more than a small 
percentage point difference as compared to EPCA's combustion efficiency 
levels, DOE must carefully assess whether the Standard 90.1-2007 levels 
would represent a reduction of existing standards.
    To this end, DOE reviewed the AHRI's Institute of Boiler and 
Radiation Manufacturers (I=B=R) ratings directories for 2008.\14\ The 
I=B=R directory provides efficiency ratings for most of the commercial 
packaged boilers for sale in the United States. DOE specifically 
reviewed boilers that fell into each of the eight equipment classes for 
which a metric change occurred. For each equipment class analyzed, DOE 
identified the average combustion and thermal efficiencies. DOE also 
identified the average thermal efficiency for those boilers DOE 
considers minimally compliant (i.e., those boilers with a combustion 
efficiency equal to the Federal energy conservation standards).
---------------------------------------------------------------------------

    \14\ The Air-conditioning, Heating, and Refrigerating Institute, 
I=B=R Ratings for Boilers, Baseboard Radiation, Finned Tube 
(Commercial) Radiation, and Indirect-Fired Water Heaters (Jan. 
2008). Available at: http://www.gamanet.org/gama/inforesources.nsf/
vAttachmentLaunch/E9E5FC7199EBB1BE85256FA100838435/$FILE/01-08_
CBR.pdf.
---------------------------------------------------------------------------

    For approximately 81 percent of the boilers DOE examined, the 
directory provided both the thermal efficiency and combustion 
efficiency levels. For 8.5 percent of these boilers, the ratings appear 
to be erroneous because the directory lists a thermal efficiency rating 
greater than its combustion efficiency rating, which is physically 
impossible.\15\ As explained above, thermal efficiency includes the 
effects of jacket losses, whereas combustion efficiency does not. 
Excluding these boilers, DOE reviewed the thermal and combustion 
efficiency ratings for the remaining 74.3 percent of the boilers, where 
both types of efficiency ratings are listed in the 2008 I=B=R 
directory. DOE presents its review of the efficiency levels in ASHRAE 
Standard 90.1-2007 for all ten equipment classes of commercial packaged 
boilers and its review of the I=B=R directory for each of the eight 
equipment classes where a metric change occurred. DOE's review of each 
commercial packaged boiler equipment class will provide its planned 
course of action for each equipment class, along with reasoning for the 
suggested action. DOE is using its review of the I=B=R directory for 
each of the equipment classes to determine if ASHRAE raised the 
efficiency levels and if further DOE action is warranted. In order for 
DOE to determine whether ASHRAE raised the efficiency levels for each 
equipment class, DOE has identified the following from the January 2008 
I=B=R directory:
---------------------------------------------------------------------------

    \15\ These anomalous ratings are likely due to Hydronics 
Institute's (HI) de-rating procedures, manufacturers' interpolation 
of results, varying test chambers and instrument calibration among 
manufacturers, or submittal of erroneous ratings.
---------------------------------------------------------------------------

     A comparison of the average combustion efficiency and 
average thermal efficiency values of the models;
     A comparison of the average combustion efficiency and 
average thermal efficiency values of the minimally compliant models 
(i.e., those with efficiency levels that minimally comply with EPCA);
     The model with the lower thermal efficiency value and its 
corresponding combustion efficiency value;
     The model with the highest thermal efficiency value and 
its corresponding combustion efficiency value; and
     The percentage of models in the January 2008 I=B=R 
directory that have a thermal efficiency value lower than the 
efficiency level specified by ASHRAE Standard 90.1-2007.
    DOE used these five statistics to determine whether DOE believes 
the efficiency levels specified within ASHRAE Standard 90.1-2007 for a 
given equipment class provide reasonable assurance that ASHRAE 
increased the efficiency levels and further analysis is warranted by 
DOE. DOE presents its review of the efficiency levels in ASHRAE 
Standard 90.1-2007 for each equipment class of commercial packaged 
boilers as well as its review of the market data in the following 
subsections.
1. Small, Gas-Fired Hot Water Commercial Packaged Boilers
    A small, gas-fired hot water commercial packaged boiler is a 
commercial packaged boiler with a fuel input at or above 300 and less 
than or equal to 2,500 kBtu/h, fueled by either natural gas or propane, 
that supplies hot water for space heating. Small, gas-fired hot water 
commercial packaged boilers fall under the gas-fired commercial 
packaged boilers equipment class, whose Federal energy conservation 
standards, as established by EPCA, are a combustion efficiency of no 
less than 80.0 percent. (42 U.S.C. 6313(a)(4)(C); 10 CFR 431.87(a)) 
This equipment class accounts for 23.6 percent of the total models 
listed in the January 2008 I=B=R directory that DOE examined.
    Among all of the small, gas-fired hot water commercial package 
boilers in the I=B=R directory, DOE calculated the average thermal 
efficiency to be 0.9 percent lower than the average combustion 
efficiency. DOE also identified the small, gas-fired hot water 
commercial packaged boilers with combustion efficiencies that minimally 
comply with EPCA (i.e. , with a combustion efficiency between 80.0 and 
81.0 percent). For the minimally compliant small, gas-fired hot water 
commercial packaged boilers, the average thermal efficiency is 78.1 
percent. The model with the lowest thermal efficiency is 76.8 percent, 
which corresponds to a combustion efficiency of 81 percent. The model 
with the highest thermal efficiency is 98.1 percent, which corresponds 
to a combustion efficiency of 98.3 percent. DOE found that of all the 
models in the 2008 I=B=R directory for this equipment class, 8.9 
percent of them have thermal efficiency levels below the ASHRAE 
Standard 90.1-2007 efficiency level.
    ASHRAE Standard 90.1-2007 specifies a thermal efficiency of 80 
percent for small, gas-fired hot water commercial packaged boilers. 
This thermal efficiency value is higher than the 78.1 percent average 
thermal efficiency of minimally compliant equipment currently on the 
market. Based on DOE's review of the I=B=R directory and the analysis 
conducted on the minimally compliant commercial packaged boilers, DOE 
has tentatively concluded that the thermal efficiency levels in ASHRAE 
Standard 90.1-2007 would, on average, increase efficiency for small, 
gas-fired hot water commercial packaged boilers. Consequently, DOE 
performed a potential energy-savings analysis on this equipment class 
under section III, as part of DOE's review of amended energy 
conservation standards.
2. Small, Gas-Fired, Steam, All Except Natural Draft Commercial 
Packaged Boilers
    A small, gas-fired, steam, all except natural draft commercial 
packaged boiler has a fuel input of at or above 300 and less than or 
equal to 2,500 kBtu/h, is fueled by either natural gas or propane, 
supplies steam for space heating and other applications, and uses a 
type of draft system other than natural

[[Page 40783]]

draft (i.e., a forced or induced draft system). Small, gas-fired, 
steam, all except natural draft commercial packaged boilers fall under 
the gas-fired commercial packaged boilers equipment class, whose 
Federal energy conservation standards, as established by EPCA, are a 
combustion efficiency of no less than 80.0 percent. (42 U.S.C. 
6313(a)(4)(C); 10 CFR 431.87) (a)) These boilers account for 18.5 
percent of the total models listed in the January 2008 I=B=R directory.
    Among all of the small, gas-fired, steam all except natural draft 
commercial packaged boilers in the I=B=R directory, DOE calculated the 
average thermal efficiency to be 2.6 percent lower than the average 
combustion efficiency. DOE also identified the boilers in this 
equipment class with combustion efficiencies that minimally comply with 
EPCA (i.e., with a combustion efficiency between 80.0 and 81.0 
percent). The average thermal efficiency of these minimally compliant 
boilers is 76.9 percent. The lowest thermal efficiency of these models 
is 75.4 percent, which corresponds to combustion efficiencies of 80 and 
80.5 percent. The highest thermal efficiency is 83.1 percent, which 
corresponds to combustion efficiencies ranging from 83.7 to 84.8 
percent. Of the 18.5 percent of units in the 2008 I=B=R directory for 
this equipment class, 51.2 percent of them have thermal efficiency 
levels below the ASHRAE Standard 90.1-2007 efficiency level.
    ASHRAE Standard 90.1-2007 specifies a thermal efficiency of 79 
percent for small, gas-fired, steam, all except natural draft 
commercial packaged boilers. This thermal efficiency value is higher 
than the 76.9 percent average thermal efficiency of minimally compliant 
equipment on the market. Based on DOE's review of the I=B=R directory 
and the analysis of minimally compliant commercial packaged boilers, 
DOE has tentatively concluded that the thermal efficiency levels in 
ASHRAE Standard 90.1-2007 would, on average, result in an increase in 
efficiency for minimally compliant equipment. Therefore, DOE performed 
a potential energy-savings analysis on this equipment class under 
section III.
3. Small, Gas-Fired, Steam, Natural Draft, Commercial Packaged Boilers
    A small, gas-fired, steam, natural draft commercial packaged boiler 
has a fuel input at or above 300 and less than or equal to 2,500 kBtu/
h, is fueled by either natural gas or propane, supplies steam for space 
heating and other applications, and uses a natural draft system (i.e., 
does not have mechanical draft equipment). Small, gas-fired, steam, 
natural draft commercial packaged boilers fall under the gas-fired 
commercial packaged boilers equipment class, whose Federal energy 
conservation standards, as established by EPCA, are a combustion 
efficiency of no less than 80.0 percent. (42 U.S.C. 6313(a)(4)(C); 10 
CFR 431.87(a)) These boilers account for 1.8 percent of the total 
models listed in the January 2008 I=B=R directory.
    ASHRAE Standard 90.1-2007 set a two-tier efficiency level for this 
equipment, which includes two different thermal efficiency levels, as 
well as two effective dates. The first efficiency level specified in 
ASHRAE Standard 90.1-2007 for this equipment class includes a 77 
percent thermal efficiency effective March 2, 2010. The second 
efficiency level specified by ASHRAE Standard 90.1-2007 for this 
equipment class includes a 79 percent thermal efficiency effective 
March 2, 2020.
    Among all of the small, gas-fired, steam, natural draft commercial 
packaged boilers in the I=B=R directory, DOE calculated the average 
thermal efficiency to be 3.6 percent lower than the average combustion 
efficiency. DOE also identified the small, gas-fired, steam, natural 
draft commercial packaged boilers with combustion efficiencies that 
minimally comply with EPCA (i.e., with a combustion efficiency between 
80.0 and 81.0 percent). The average thermal efficiency for the 
minimally-compliant equipment of this type is 78.2 percent. The model 
with the lowest thermal efficiency is 77.6 percent, which corresponds 
to a combustion efficiency of 80.9 percent. The thermal efficiency of 
the most efficient models is 80.4 percent, which corresponds to 
combustion efficiencies of between 83.1 and 83.3 percent. In examining 
all the models in the 2008 I=B=R directory for this equipment class, 
DOE found that none has a thermal efficiency level below the ASHRAE 
Standard 90.1-2007 efficiency level effective in 2010, but 66.7 percent 
have thermal efficiency levels below the ASHRAE Standard 90.1-2007 
efficiency level effective in 2020.
    Again, ASHRAE Standard 90.1-2007 specifies a thermal efficiency of 
77 percent for small, gas-fired, steam, natural draft commercial 
packaged boilers manufactured on or after March 2, 2010. This is lower 
than the 78.2 percent average thermal efficiency of minimally-compliant 
equipment on the market. DOE could not identify any small, gas-fired, 
steam, natural draft equipment currently in the I=B=R directory with a 
thermal efficiency value less than 77.6 percent. DOE observed that the 
minimum thermal efficiency level effective March 2, 2010, in ASHRAE 
Standard 90.1-2007 appears to be lower than the average thermal 
efficiencies of boilers that minimally comply with EPCA's combustion 
energy efficiency standards. DOE believes that the potential 
consequence of setting thermal efficiency standards at levels lower 
than the thermal efficiencies of existing equipment would be equipment 
with lower combustion efficiencies than EPCA permits, meaning that the 
current minimum required efficiency would be decreased, thereby 
resulting in backsliding. Therefore, DOE has tentatively decided not to 
adopt the stage-1 ASHRAE Standard 90.1-2007 efficiency level for small, 
gas-fired, steam, natural draft commercial packaged boilers.
    Because ASHRAE set a two-tier requirement for this product type, 
DOE then analyzed the second efficiency level set by the amended ASHRAE 
standard. ASHRAE Standard 90.1-2007 specifies a thermal efficiency of 
79 percent for small, gas-fired, steam, natural draft commercial 
packaged boilers manufactured on or after March 2, 2020. This thermal 
efficiency value is higher than the 78.2 percent average thermal 
efficiency of minimally-compliant equipment on the market. Based on 
DOE's review of the I=B=R directory and the analysis of minimally-
compliant commercial packaged boilers, DOE has tentatively concluded 
that the second thermal efficiency level in ASHRAE Standard 90.1-2007 
would, on average, result in an increase in efficiency for small, gas-
fired, steam, natural draft commercial packaged boilers manufactured on 
or after March 2, 2020. Therefore, DOE performed a potential energy-
savings analysis on this equipment class under section III.
4. Small, Oil-Fired, Hot Water Commercial Packaged Boilers
    A small, oil-fired, hot water commercial packaged boiler has a fuel 
input at or above 300 and less than or equal to 2,500 kBtu/h, is fueled 
by oil, and supplies hot water for space heating. Small, oil-fired, hot 
water commercial packaged boilers fall under the oil-fired commercial 
packaged boilers equipment class, whose Federal energy conservation 
standards, as established by EPCA, are a combustion efficiency of no 
less than 83.0 percent. (42 U.S.C. 6313(a)(4)(D); 10 CFR 431.87(b)) 
This equipment class accounts for 6.9 percent of the models listed in 
the January 2008 I=B=R directory.

[[Page 40784]]

    Among all of the small, oil-fired, hot water commercial packaged 
boilers in the I=B=R directory, DOE calculated the average thermal 
efficiency to be 2.3 percent lower than the average combustion 
efficiency. DOE also identified the small, oil-fired, hot water 
commercial packaged boilers with combustion efficiencies that minimally 
comply with EPCA (i.e., with a combustion efficiency between 83.0 and 
84.0 percent). The average thermal efficiency of minimally-compliant 
equipment is approximately 80.7 percent. The thermal efficiency of the 
least-efficient model is 79.2 percent, which corresponds to a 
combustion efficiency of 83.2 percent. The thermal efficiency of the 
most-efficient model is 92.9 percent, which corresponds to a combustion 
efficiency of 93.3 percent. Of the all the models in the 2008 I=B=R 
directory for this equipment type, 29.3 percent of them have thermal 
efficiency levels below the ASHRAE Standard 90.1-2007 efficiency level.
    ASHRAE Standard 90.1-2007 specifies a thermal efficiency of 82 
percent for small, oil-fired, hot water commercial packaged boilers. 
This value is higher than the 80.7 percent average thermal efficiency 
of minimally-compliant equipment on the market. Based on DOE's review 
of the I=B=R directory and the analysis conducted on the minimally-
compliant commercial packaged boilers, DOE has tentatively concluded 
that the thermal efficiency level in ASHRAE Standard 90.1-2007 would, 
on average, result in an increase in the efficiency for small, oil-
fired, hot water commercial packaged boilers. Therefore, DOE performed 
a potential energy-savings analysis on this equipment class under 
section III.
5. Small, Oil-Fired, Steam, Commercial Packaged Boilers
    A small, oil-fired, steam commercial packaged boiler has a fuel 
input at or above 300 and less than or equal to 2,500 kBtu/h, is fueled 
by oil, and supplies steam for space heating and other applications. 
Small, oil-fired, steam commercial packaged boilers fall under the oil-
fired commercial packaged boilers equipment class, whose Federal energy 
conservation standards, as established by EPCA, are a combustion 
efficiency of no less than 83.0 percent. (42 U.S.C. 6313(a)(4)(D); 10 
CFR 431.87(b)) These boilers account for 11.6 percent of the total 
models listed in the January 2008 I=B=R directory.
    Among all of the small, oil-fired, steam commercial packaged 
boilers in the I=B=R directory, DOE calculated the average thermal 
efficiency to be 2.5 percent lower than the average combustion 
efficiency. DOE also identified the small, oil-fired, steam commercial 
packaged boilers with combustion efficiencies that minimally comply 
with EPCA (i.e., with a combustion efficiency between 83.0 and 84.0 
percent). The average thermal efficiency of minimally-compliant 
equipment is 81.6 percent. The thermal efficiency of the least-
efficient model is 79.7 percent, which corresponds to a combustion 
efficiency of 83.3 percent. The thermal efficiency of the most-
efficient models is 85.6 percent, which corresponds to a range of 
combustion efficiencies from 86.2 to 87.5 percent. Of all the models in 
the 2008 I=B=R directory for this equipment class, 17.5 percent of them 
have thermal efficiency levels below the ASHRAE Standard 90.1-2007 
efficiency level.
    ASHRAE Standard 90.1-2007 specifies a thermal efficiency of 81 
percent for small, oil-fired, steam commercial packaged boilers. This 
value is lower than the 81.6 percent average thermal efficiency of 
minimally-compliant equipment on the market. DOE identified a single 
minimally-compliant small, oil-fired steam commercial packaged boiler 
with a thermal efficiency of 79.7 percent, which is lower than the 
efficiency level in ASHRAE Standard 90.1-2007. DOE observed that the 
minimum thermal efficiency level in ASHRAE Standard 90.1-2007 for this 
equipment class appears to be lower than the average thermal 
efficiencies of boilers that minimally comply with EPCA's combustion 
energy efficiency standards. The consequence of setting thermal 
efficiency standards at levels lower than the thermal efficiencies of 
existing equipment would be manufacturing of equipment with lower 
combustion efficiencies than EPCA permits, meaning that the current 
minimum required efficiency would be decreased in violation of EPCA's 
``anti-backsliding'' provision (see Section I.A). (42 U.S.C. 6316(a); 
42 U.S.C. 6295(o)(1)) Therefore, DOE has tentatively decided not to 
adopt the ASHRAE Standard 90.1-2007 efficiency level for small, oil-
fired, steam commercial packaged boilers, so no further analysis is 
required.
6. Large, Gas-Fired, Hot Water Commercial Packaged Boilers
    A large, gas-fired, hot water commercial packaged boiler has a fuel 
input of at or above 2,500 kBtu/h, is fueled by either natural gas or 
propane, and supplies hot water for space heating. Large, gas-fired, 
hot water commercial packaged boilers fall under the gas-fired 
commercial packaged boilers equipment class, whose Federal energy 
conservation standards, as established by EPCA, are a combustion 
efficiency of no less than 80.0 percent. (42 U.S.C. 6313(a)(4)(C); 10 
CFR 431.87(a)). These boilers account for 4.0 percent of the total 
models listed in the January 2008 I=B=R directory.
    The existing Federal energy conservation standard for this 
equipment class corresponds to the energy conservation standard in 
EPCA, which specifies a minimum combustion efficiency no less than 80 
percent. (42 U.S.C. 6313(4)(C)) ASHRAE Standard 90.1-2007 specifies a 
more stringent combustion efficiency of no less than 82 percent. Among 
all of the large, gas-fired, hot water commercial packaged boilers in 
the I=B=R directory, DOE calculate the average combustion efficiency to 
be 83.6 percent, which is 1.6 percent higher than the minimum 
combustion efficiency levels specified by ASHRAE Standard 90.1-2007. 
However, the combustion efficiency of approximately 17 percent of this 
equipment is lower than the minimum efficiency level specified by 
Standard 90.1-2007. For models with a combustion efficiency lower than 
82 percent, ASHRAE Standard 90.1 represents a potential for energy 
savings. Therefore, DOE performed a potential energy-savings analysis 
on this equipment class under section III.
7. Large, Gas-Fired, Steam, All Except Natural Draft Commercial 
Packaged Boilers
    A large, gas-fired, steam all except natural draft commercial 
packaged boiler has a fuel input of at or above 2,500 kBtu/h, is fueled 
by either natural gas or propane, supplies steam for space heating and 
other applications, and uses a type of draft system other than natural 
draft (i.e., a forced or induced draft system). Large, gas-fired, 
steam, all except natural draft commercial packaged boilers fall under 
the gas-fired commercial packaged boilers equipment class, whose 
Federal energy conservation standards, as established by EPCA, are a 
combustion efficiency of no less than 80.0 percent. (42 U.S.C. 
6313(a)(4)(C); 10 CFR 431.87(a)) These boilers account for 12.1 percent 
of the models listed in the January 2008 I=B=R directory.
    Among all of the large, gas-fired steam, all except natural draft 
commercial packaged boilers in the I=B=R directory, DOE calculated the 
average thermal efficiency to be 1.5 percent lower than the average 
combustion efficiency. DOE also identified those boilers with 
combustion efficiencies that minimally comply with

[[Page 40785]]

EPCA (i.e., with a combustion efficiency between 80.0 and 81.0 
percent). The average thermal efficiency of minimally-compliant boilers 
is 78.5 percent. The thermal efficiency of the least efficient model is 
75.4 percent, which corresponds to a combustion efficiency of 80.5 
percent. The thermal efficiency of the most efficient model is 83.2 
percent, which corresponds to a combustion efficiency of 83.4 percent. 
Of all the models in the 2008 I=B=R directory for this equipment class, 
49.1 percent of them have thermal efficiency levels below the ASHRAE 
Standard 90.1-2007 efficiency level.
    ASHRAE Standard 90.1-2007 specifies a thermal efficiency of 79 
percent for large, gas-fired, steam, all except natural draft 
commercial packaged boilers. This value is higher than the 78.5 percent 
average thermal efficiency of minimally-compliant equipment on the 
market. Based on DOE's review of the I=B=R directory and the analysis 
conducted on the minimally-compliant commercial packaged boilers, DOE 
has tentatively concluded that the thermal efficiency level in ASHRAE 
Standard 90.1-2007 would, on average, result in an increase in 
efficiency for minimally-compliant boilers. Therefore, DOE performed a 
potential energy-savings analysis on this equipment class under section 
III.
8. Large, Gas-Fired, Steam, Natural Draft, Commercial Packaged Boilers
    A large, gas-fired, steam, natural draft commercial packaged boiler 
has a fuel input of at or above 2,500 kBtu/h, is fueled by either 
natural gas or propane, supplies steam for space heating and other 
applications, and uses a natural draft system (i.e., does not have 
mechanical draft equipment). Large, gas-fired, steam, natural draft 
commercial packaged boilers fall under the gas-fired commercial 
packaged boilers equipment class, whose Federal energy conservation 
standards, as established by EPCA, are a combustion efficiency of no 
less than 80.0 percent. (42 U.S.C. 6313(a)(4)(C); 10 CFR 431.87(a)) 
These boilers account for 4.4 percent of the models listed in the 
January 2008 I=B=R directory.
    ASHRAE set a two-tier efficiency level for this equipment, which 
includes two different thermal efficiency levels and two effective 
dates. The first efficiency level specified in ASHRAE Standard 90.1-
2007 for this equipment class includes a 77 percent thermal efficiency 
effective March 2, 2010. The second efficiency level specified by 
ASHRAE Standard 90.1-2007 for this equipment class includes a 79 
percent thermal efficiency effective March 2, 2020.
    Among all of the large, gas-fired, steam, natural draft commercial 
packaged boilers, DOE calculated the average thermal efficiency to be 
1.8 percent lower than the average combustion efficiency. DOE also 
identified the large, gas-fired, steam, natural draft commercial 
packaged boilers with combustion efficiencies that minimally comply 
with EPCA (i.e., with a combustion efficiency between 80.0 and 81.0 
percent). The average thermal efficiency of minimally-compliant boilers 
is approximately 79.1 percent. The thermal efficiency of the least 
efficient models is 78.6 percent, which corresponds to a combustion 
efficiency of 82.1 percent. The thermal efficiency of the most 
efficient models is 81.1 percent, which corresponds to a range of 
combustion efficiencies from 82.2 to 82.4 percent. In examining all the 
models in the 2008 I=B=R directory for this equipment class, DOE found 
that none has a thermal efficiency level below the ASHRAE Standard 
90.1-2007 efficiency level effective in 2010, but 15.5 percent have 
thermal efficiency levels below the ASHRAE Standard 90.1-2007 
efficiency level effective in 2020.
    Again, ASHRAE Standard 90.1-2007 specifies a thermal efficiency of 
77 percent for large, gas-fired, steam, natural draft commercial 
packaged boilers manufactured on or after March 2, 2010. This value is 
lower than the 79.1 percent average thermal efficiency of minimally-
compliant equipment on the market. DOE could not identify any large, 
gas-fired, steam, natural draft equipment in the I=B=R directory with a 
thermal efficiency value less than 78.6 percent. The minimum thermal 
efficiency level effective March 2, 2010, in ASHRAE Standard 90.1-2007 
appears to be lower than any of the thermal efficiencies of boilers 
that are currently available on the market. DOE believes that the 
potential consequence of setting thermal efficiency standards at levels 
lower than the thermal efficiencies of existing equipment would be 
equipment having lower combustion efficiencies than EPCA permits, 
meaning that the current minimum required efficiency would be 
decreased, thereby resulting in backsliding. Therefore, DOE has 
tentatively decided not to adopt the stage-1 ASHRAE Standard 90.1-2007 
efficiency level for this equipment class.
    Because ASHRAE set a two-tiered requirement for this product type, 
DOE then analyzed the second efficiency level set by the amended ASHRAE 
standard. ASHRAE Standard 90.1-2007 specifies a thermal efficiency of 
79 percent for large, gas-fired, steam, natural draft commercial 
packaged boilers manufactured on or after March 2, 2020. This value is 
slightly lower than the 79.1 percent average thermal efficiency of 
minimally compliant equipment on the market. However, 15.5 percent of 
the equipment DOE analyzed has a thermal efficiency lower than the 
efficiency level in ASHRAE Standard 90.1-2007. Based on DOE's review of 
the I=B=R directory and the analysis conducted on minimally-compliant 
commercial packaged boilers, DOE has tentatively concluded that the 
thermal efficiency level specified by ASHRAE Standard 90.1-2007 
effective March 2, 2020 would result in an increase in efficiency for 
small, gas-fired, steam, natural draft commercial packaged boilers 
manufactured on or after March 2, 2020 (compared to the EPCA combustion 
efficiency level). Therefore, DOE performed a potential energy-savings 
analysis on this equipment class under section III.
9. Large, Oil-Fired, Hot Water Commercial Packaged Boilers
    A large, oil-fired, hot water commercial packaged boiler has a fuel 
input at or above 2,500 kBtu/h, is fueled by oil, and supplies hot 
water for space heating. Large, oil-fired, hot water commercial 
packaged boilers fall under the oil-fired commercial packaged boilers 
equipment class, whose Federal energy conservation standards, as 
established by EPCA, are a combustion efficiency of no less than 83.0 
percent. (42 U.S.C. 6313(a)(4)(D); 10 CFR 431.87(b)) These boilers 
account for 1.9 percent of the models listed in the January 2008 I=B=R 
directory.
    ASHRAE Standard 90.1-2007 adopted a more stringent combustion 
efficiency of 84 percent. Among all of the large, oil-fired, hot water 
commercial packaged boilers, DOE calculated the average combustion 
efficiency to be approximately 86.5 percent, 2.5 percent higher than 
the minimum combustion efficiency levels specified by ASHRAE Standard 
90.1-2007. The minimum combustion efficiency of all large, oil-fired, 
hot water equipment on the market is 85.5 percent, which is 1.5 percent 
higher than the minimum level adopted by ASHRAE Standard 90.1-2007. 
Based on this, DOE believes there will be no potential energy savings 
resulting from adopting ASHRAE Standard 90.1-2007 for large, oil-fired, 
hot water commercial packaged boilers. However, DOE did perform a 
potential energy-savings analysis in section III, which examined 
efficiency levels more

[[Page 40786]]

stringent than those contained within ASHRAE Standard 90.1-2007.
10. Large, Oil-Fired, Steam Commercial Packaged Boilers
    A large, oil-fired, steam commercial packaged boiler has a fuel 
input at or above 2,500 kBtu/h, is fueled by oil, and supplies steam 
for space heating and other applications. Large, oil-fired, steam 
commercial packaged boilers fall under the oil-fired commercial 
packaged boilers equipment class, whose Federal energy conservation 
standards, as established by EPCA, are a combustion efficiency of no 
less than 83.0 percent. (42 U.S.C. 6313(a)(4)(D); 10 CFR 431.87(b)) 
These boilers account for 15.2 percent of the models listed in the 
January 2008 I=B=R directory.
    Among all of the large, oil-fired, steam commercial packaged 
boilers, DOE calculated the average thermal efficiency to be 1.5 
percent lower than the average combustion efficiency. DOE also 
identified the large, oil-fired, steam commercial packaged boilers with 
combustion efficiencies that minimally comply with EPCA (i.e., with a 
combustion efficiency between 83.0 and 84.0 percent). For the 
minimally-compliant large, oil-fired, steam commercial packaged 
boilers, the average thermal efficiency is 82.0 percent. The thermal 
efficiency of the least efficient model is 81.0 percent, which 
corresponds to a combustion efficiency of 84.6 percent. The thermal 
efficiency of the most efficient model is 85.8 percent, which 
corresponds to a combustion efficiency of 86.0 percent. In examining 
all the models in the 2008 I=B=R directory for this equipment class, 
DOE found that none had a thermal efficiency level below the ASHRAE 
Standard 90.1-2007 efficiency level.
    ASHRAE Standard 90.1-2007 specifies a thermal efficiency of 81 
percent for large, oil-fired, steam commercial packaged boilers. This 
value is lower than the 82.0 percent average thermal efficiency of 
minimally-compliant equipment on the market. DOE could not identify any 
small, gas-fired, steam, natural draft equipment currently in the I=B=R 
directory with a thermal efficiency value less than 81.0 percent. The 
minimum thermal efficiency level in ASHRAE Standard 90.1-2007 appears 
to be lower than the average thermal efficiencies of boilers that 
minimally comply with EPCA's combustion energy efficiency standards. 
DOE believes that the potential consequence of setting thermal 
efficiency standards at levels lower than the thermal efficiencies of 
existing equipment would be equipment having lower combustion 
efficiencies than EPCA permits, meaning that the current minimum 
required efficiency would be decreased in violation of EPCA's ``anti-
backsliding'' provision (see Section I.A). (42 U.S.C. 6316(a); 42 
U.S.C. 6295(o)(1)) Therefore, DOE has tentatively decided not to adopt 
the ASHRAE Standard 90.1-2007 efficiency level for large, oil-fired, 
steam, commercial packaged boilers, so no further analysis is required.

III. Analysis of Potential Energy Savings

    As required under 42 U.S.C. 6313(a)(6)(A), DOE performed an 
analysis to determine the energy-savings potential of amending Federal 
minimum energy conservation standard levels to the efficiency levels 
specified in ASHRAE Standard 90.1-2007, as well as more stringent 
efficiency levels than those specified in ASHRAE Standard 90.1-2007. As 
explained above, DOE's energy-savings analysis is limited to types of 
equipment covered by Federal energy conservation standards for which 
the amended ASHRAE Standard 90.1-2007 increased the efficiency levels. 
Based upon the analyses performed in section II, DOE is conducting the 
energy-savings analysis for eight equipment classes of commercial 
packaged boilers.
    The following discussion provides an overview of the energy-savings 
analysis conducted for those products, which had increased efficiency 
levels under ASHRAE Standard 90.1-2007, followed by summary results of 
that analysis. For each efficiency level analyzed, DOE calculated the 
potential energy savings to the Nation as the difference between a base 
case forecast (without amended standards) and the standards case (with 
amended standards). The national energy savings (NES) refers to 
cumulative energy savings from 2012 through 2042. In the standards 
case, equipment that is more efficient gradually replaces less 
efficient equipment over time. This affects the calculation of the 
potential energy savings, which are a function of the total number of 
units in use and their efficiencies. Savings depend on annual shipments 
and equipment lifetime, including changes in shipments and retirement 
rates in response to changes in equipment costs due to standards.
    DOE calculated the potential energy savings by subtracting energy 
use under a standards scenario from energy use in a base case scenario. 
DOE estimated unit energy savings for each equipment class based on 
data from the 2000 Screening Analysis \16\ for various heating 
equipment and the 2008 I=B=R directory. To estimate the total energy 
savings for each efficiency level, DOE first calculated the national 
site energy consumption (i.e. , the energy directly consumed by the 
units of equipment in operation) for each class of commercial packaged 
boilers for the base case forecast and the standards case forecast. 
Second, DOE determined the annual site energy savings, consisting of 
the difference in site energy consumption between the base case and the 
standards case. Third, DOE converted the annual site energy savings 
into the annual amount of energy saved at the source of gas generation 
(the source energy) using a site-to-source conversion factor. Finally, 
DOE estimated the source energy savings from 2012 to 2042 to calculate 
the total potential energy savings for that period. DOE performed these 
calculations for each efficiency level within a given equipment class 
of commercial packaged boilers. Details of the energy-savings analysis 
are presented below.
---------------------------------------------------------------------------

    \16\ U.S. Department of Energy, Screening Analysis for EPACT-
Covered Commercial HVAC and Water-Heating Equipment (April 2000). 
Available at: http://www.eere.energy.gov/buildings/highperformance/pdfs/screening_analysis_main.pdf.
---------------------------------------------------------------------------

A. Annual Energy Use

    DOE started with the annual energy use calculation methodology 
presented in the 2000 Screening Analysis for today's estimation of 
potential energy savings. For commercial packaged boilers, DOE used a 
modified full-load equivalent operating hours (FLEOH) to calculate the 
annual energy use as estimated in the 2000 Screening Analysis. FLEOH is 
the ratio of the total annual thermal energy output (either heating or 
cooling) provided by the equipment over the course of a year divided by 
equipment capacity. It is equal to the total number of hours that a 
piece of equipment would have to run at its rated capacity to provide 
total thermal energy output equivalent to that provided over the course 
of a year.
    The total annual standby loss is largely a function of the period 
available for operation (hot standby period). Because this period is an 
operation issue and not specific to equipment design and climate 
location, DOE believes the standby loss can be captured in a simplified 
analysis, as in the 2000 Screening Analysis. For that analysis, DOE 
adjusted the boiler FLEOHs by calculating a standby loss factor (as 
described in Appendix A of the 2000 Screening Analysis). DOE determined 
the national average

[[Page 40787]]

FLEOHs to be 952 hours, regardless of boiler input fuel type, input 
capacity, or output type (i.e., steam or hot water).
    The Screening Analysis methodology provides a linear relationship 
between annual energy consumption and thermal efficiency. DOE used this 
linear relationship and the FLEOHs to calculate the annual energy use 
per unit within a given equipment class at a specific efficiency level 
using the following equation:
[GRAPHIC] [TIFF OMITTED] TP16JY08.007

Where:

 The annual energy use is the amount of energy used each 
year for a given equipment class at a given efficiency level in 
Btus;
 The FLEOH2000 Screening Analysis is the FLEOHs 
calculated in the 2000 Screening Analysis (i.e., 952.2 hours);
 The Output Capacity100 
Efficiency is the total output capacity when the 
equipment is assumed to be at 100 percent efficiency (i.e., output 
capacity = input capacity) in Btu/h; and
 [eta]Shipment Weighted Average is the average 
shipment-weighted efficiency, which is calculated for each standards 
case within each equipment class.

B. Shipments

    DOE obtained data on annual shipments for commercial packaged 
boilers in 2007 from AHRI, totaling approximately 36,000 units. Then, 
DOE used the 2008 I=B=R directory to determine the percentage of models 
within each equipment class. DOE applied this percentage to estimate 
the number of unit shipments for each equipment class. Table III.1 
exhibits the total shipment breakdown by equipment class.

     Table III.1.--Total Shipments of Commercial Packaged Boilers by
                             Equipment Class
------------------------------------------------------------------------
                                                           Approximate
          Equipment class              Percentage of     total shipments
                                        models (%)*     (units per year)
------------------------------------------------------------------------
Small, Gas-Fired, Hot Water........               23.6             8,500
Small, Gas-Fired, Steam, All Except               18.5             6,700
 Natural Draft.....................
Small, Gas-Fired, Steam, Natural                   1.8               650
 Draft.............................
Small, Oil-Fired, Hot Water........                6.9             2,500
Small, Oil-Fired, Steam............               11.6             4,200
Large, Gas-Fired, Hot Water........                4               1,500
Large, Gas-Fired, Steam, All Except               12.1             4,400
 Natural Draft.....................
Large, Gas-Fired, Steam, Natural                   4.4             1,600
 Draft.............................
Large, Oil-Fired, Hot Water........                1.9               700
------------------------------------------------------------------------
* Note that the identified boilers in this table do not add to 100
  percent of annual shipments, because large, oil-fired, steam boilers
  (which constitute 15.2 percent of the market) are not included. Large,
  oil-fired, steam boilers are not included because the efficiency level
  in ASHRAE Standard 90.1-2007 would result in backsliding and
  accordingly cannot be adopted as a national standard.

    DOE then reviewed the 2008 I=B=R directory to determine the 
distribution of efficiency levels for commercially-available models 
within each equipment class. DOE bundled the efficiency levels into 
``efficiency ranges'' and determined the percentage of models within 
each range. DOE applied the percentages of models within each range to 
the total unit shipments for a given equipment class to estimate the 
distribution of shipments within the base case. To determine the 
percentage of models in each efficiency range, DOE considered models 
greater than or equal to the lower bound of the efficiency range and 
models with efficiencies less than the upper bound of the efficiency 
range. For example, for the thermal efficiency range of 79-80 percent, 
DOE considered models with thermal efficiency levels from 79.0 to 79.9 
to be within this range. In the case of the last efficiency range 
identified for each equipment class, DOE included those models with 
efficiency levels equal to the higher bound (i.e., the max-tech 
efficiency levels). The distribution of efficiencies in the base case 
for each equipment class can be found in the ASHRAE NODA TSD on DOE's 
Web site.\17\
---------------------------------------------------------------------------

    \17\ The ASHRAE NODA TSD is available on the Web page for ASHRAE 
Products at: http://www.eere.energy.gov/buildings/appliance_standards/commercial/ashrae_products_docs_meeting.html.
---------------------------------------------------------------------------

    For the standards case, DOE assumed shipments at lower efficiencies 
were most likely to roll up into higher efficiency levels in response 
to more stringent energy conservation standards. For each efficiency 
level analyzed within a given equipment class, DOE used a ``roll-up'' 
scenario to establish the market shares by efficiency level for the 
year that standards become effective (i.e., 2012). Information 
available to DOE suggests that the efficiencies of equipment in the 
base case that did not meet the standard level under consideration 
would roll up to meet the standard level. Available information also 
suggests that all equipment efficiencies in the base case that were 
above the standard level under consideration would not be affected. 
Table III.2 shows an example of the distribution of efficiencies within 
the base-case and the roll-up scenarios to establish the distribution 
of efficiencies in the standards cases for small, gas-fired, steam, all 
except natural draft commercial packaged boilers. For all the tables of 
the distribution of efficiencies in the base case and standards cases 
by equipment class, see the ASHRAE NODA TSD.

[[Page 40788]]



Table III.2.--Distribution of Efficiencies in the Base Case and Standards Cases for Small, Gas-Fired, Steam, All
                                Except Natural Draft Commercial Packaged Boilers
----------------------------------------------------------------------------------------------------------------
                                      75.4-77     77-79      79-80*     80-81      81-82      82-83     83-83.1
       Efficiency Range (ET)         (percent)  (percent)  (percent)  (percent)  (percent)  (percent)  (percent)
----------------------------------------------------------------------------------------------------------------
Base Case--Current Market..........         18         33         22         19          4          1          3
Efficiency Level 1--ASHRAE (79% ET)  .........  .........         73         19          4          1          3
Efficiency Level 2--(80% ET........  .........  .........  .........         92          4          1          3
Efficiency Level 3--(81% E T)......  .........  .........  .........  .........         96          1          3
Efficiency Level 4--(82% ET).......  .........  .........  .........  .........  .........         97          3
Efficiency Level 5--``Max-Tech''--   .........  .........  .........  .........  .........  .........        100
 (83.1%) ET).......................
----------------------------------------------------------------------------------------------------------------
*The highlighted column indicates the efficiency level specified by ASHRAE Standard 90.1-2007 for this equipment
  class.

    DOE seeks input on its determination of the base-case distribution 
of efficiencies and its prediction on how amended energy conservation 
standards affect the distribution of efficiencies in the standards 
case. DOE identified this as Issue 2 under ``Issues on Which DOE Seeks 
Comment'' in section IV.B of this NODA.
    Using the distribution of efficiencies in the base case and in the 
standards cases for each equipment class of commercial packaged boilers 
analyzed in today's NODA, DOE calculated the shipment-weighted average 
efficiency values. The shipment-weighted average efficiency value 
represents the average efficiency of the total units shipped at a 
specified amended standard level. DOE used the weighted average 
efficiency values in Equation 1 (discussed previously) to calculate the 
annual energy use of the equipment class at a given efficiency level. 
For the baseline efficiency level, DOE used the average thermal 
efficiency value for each equipment class of the models below the 
efficiency level in ASHRAE Standard 90.1-2007. The shipment-weighted 
average efficiency values for the base case and the standards cases for 
each efficiency analyzed within the eight equipment classes is provided 
in the ASHRAE NODA TSD found on DOE's Web site.
    For small, commercial packaged boilers, DOE calculated the annual 
energy consumption based on three input capacities (i.e., 400 kBtu/h, 
800 kBtu/h, and 1500 kBtu/h). DOE then reviewed the 2008 I=B=R 
directory to determine the distribution of input capacities for 
commercially-available models within each equipment class. DOE bundled 
the efficiency levels into ``capacity ranges'' and determined the 
percentage of models within each range. DOE applied the percentages of 
models within each range to the total unit shipments for a given 
equipment class to estimate the distribution of capacities within the 
base case and higher efficiency levels examined. To determine the 
percentage of models in each capacity range, DOE considered commercial 
packaged boilers with an input capacity equal to or greater than 300 
kBtu/h and less than 600 kBtu/h to be represented by the energy use of 
the 400 kBtu/h model. DOE considered commercial packaged boilers with 
an input capacity equal to or greater than 600 kBtu/h and less than 
1150 kBtu/h to be represented by the energy use of the 800 kBtu/h 
model. DOE considered commercial packaged boilers with an input 
capacity equal to or greater than 1150 kBtu/h and less than 2500 kBtu/h 
to be represented by the energy use of the 1500 kBtu/h model.
    For large, commercial packaged boilers, DOE calculated the annual 
energy consumption based on one input capacity (i.e., 3000 kBtu/h). DOE 
considered commercial packaged boilers with an input capacity equal to 
or greater than 2500 kBtu/h to be represented by the energy use of the 
3000 kBtu/h model. The distribution of input capacities in the base 
case for each equipment class can be found in the ASHRAE NODA TSD.
    DOE seeks input on its determination of the base-case distribution 
of capacities and its prediction on how amended energy conservation 
standards would affect the distribution of capacities in the standard 
case. DOE identified this as Issue 3 under ``Issues on Which DOE Seeks 
Comment'' in section IV.B of this NODA.

C. Other Analytical Inputs

1. Site-to-Source Conversion
    DOE converted the annual site energy savings into the annual amount 
of energy saved at the source of gas generation (i.e., primary energy), 
using an average site-to-source conversion factor over the analysis 
period (calculated from the Energy Information Agency's (EIA's) Annual 
Energy Outlook 2008 (AEO2008) projections).\18\ The site-to-source 
conversion factor is the multiplicative factor DOE uses for converting 
site energy consumption (the energy used at the end-use site) into 
primary or source energy consumption (the energy used at the source 
before transmission or conversion losses). For the NODA, DOE calculated 
the average site-to-source conversion factor using the same analysis 
period (i.e., 2012-2042) as EIA's AEO2008. DOE derived the annual 
conversion factors by dividing the total energy used to produce gas in 
each forecast year in the United States, as indicated in AEO2008, by 
the total gas delivered for each forecasted year. DOE determined the 
30-year average to be 1.097.
---------------------------------------------------------------------------

    \18\ U.S. Department of Energy. Energy Information 
Administration, Annual Energy Outlook 2008 with Projections to 2030 
(June 2008). Available at http://www.eia.doe.gov/oiaf/aeo/index.html.
---------------------------------------------------------------------------

2. Effective Date
    Generally, covered equipment to which a new or amended energy 
conservation standard applies must comply with the standard if such 
equipment is manufactured or imported on or after a specified date.
    In today's NODA, DOE is evaluating potential energy savings 
estimates for commercial packaged boilers at the efficiency levels 
specified by ASHRAE Standard 90.1-2007 and at more stringent efficiency 
levels than those in ASHRAE Standard 90.1-2007. If DOE were to propose 
a rule prescribing energy conservation standards at the efficiency 
levels contained in ASHRAE Standard 90.1-2007, EPCA states that any 
such standards shall become effective on or after a date which is two 
years after the effective date of the applicable minimum energy 
efficiency requirement in the amended ASHRAE/IES standard (i.e., ASHRAE 
Standard 90.1-2007) (42 U.S.C. 6313(a)(6)(D)). DOE has applied this 
two-year implementation period to determine the effective date of any 
energy conservation standard equal to the efficiency levels specified 
by ASHRAE Standard 90.1-2007 prescribed by this rulemaking. Thus, if 
DOE decides to adopt the levels in ASHRAE Standard 90.1-2007 (i.e. , 
ones where efficiency levels were set in two stages), the rule

[[Page 40789]]

would apply to products manufactured on or after 2012 or 2022, 
respectively, which is two years from the effective date specified in 
ASHRAE Standard 90.1-2007 since the effective date in ASHRAE Standard 
90.1-2007 is January 1, 2010 for certain other equipment classes of 
commercial packaged boilers or January 1, 2020 for certain equipment 
classes of commercial packaged boilers.
    If DOE were to propose a rule prescribing energy conservation 
standards higher than the efficiency levels contained in ASHRAE 
Standard 90.1-2007, EPCA states that any such standards ``shall become 
effective for products manufactured on or after a date which is four 
years after the date such rule is published in the Federal Register'' 
(42 U.S.C. 6313(a)(6)(D)). DOE has applied this four-year 
implementation period to determine the effective date of any energy 
conservation standard higher than the efficiency levels specified by 
ASHRAE Standard 90.1-2007 that might be prescribed in a future 
rulemaking. Thus, for products which DOE might adopt a level more 
stringent than the ASHRAE efficiency levels, the rule would apply to 
products manufactured on or after July 2013, which is four years from 
the date of publication of the final rule since DOE expects to issue a 
final rule for this proceeding around July 2009.
    For each equipment class for which DOE developed a potential energy 
savings analysis, Table III.3 exhibits the approximate effective dates 
of an amended energy conservation standard.

      Table III.3.--Approximate Effective Date of an Amended Energy
  Conservation Standard for Each Equipment Class of Commercial Packaged
                                 Boilers
------------------------------------------------------------------------
                                                          Approximate
                                       Approximate       effective date
                                      effective date   for adopting more
                                     for adopting the      stringent
          Equipment class           efficiency levels  efficiency levels
                                        in ASHRAE        than those in
                                      Standard 90.1-    ASHRAE Standard
                                           2007            90.1-2007
------------------------------------------------------------------------
Small, Gas-Fired, Hot Water                   01/2012            07/2013
 Commercial Packaged Boilers......
Small, Gas-Fired, Steam, All                  01/2012            07/2013
 Except Natural Draft Commercial
 Packaged Boilers.................
Small, Gas-Fired, Steam, Natural              01/2022            07/2013
 Draft Commercial Packaged Boilers
Small, Oil-Fired, Hot Water                   01/2012            07/2013
 Commercial Packaged Boilers......
Small, Oil-Fired, Steam Commercial            01/2012            07/2013
 Packaged Boilers.................
Large, Gas-Fired, Hot Water                   01/2012            07/2013
 Commercial Packaged Boilers......
Large, Gas-Fired, Steam, All                  01/2022            07/2013
 Except Natural Draft Commercial
 Packaged Boilers.................
Large, Gas-Fired, Steam, Natural              01/2012            07/2013
 Draft Commercial Packaged Boilers
Large, Oil-Fired, Hot Water                   01/2012            07/2013
 Commercial Packaged Boilers......
------------------------------------------------------------------------

3. Analysis Period and Lifetime
    DOE used an analysis period of 30 years spanning 2012 to 2042 for 
examining both the ASHRAE efficiency levels and the more stringent 
efficiency levels that were considered in the analysis. This period 
coincides with the lifetime of a commercial packaged boiler, which DOE 
found to be 30 years in the 2000 Screening Analysis.
    DOE assumed that the installed base of each equipment class in 2012 
will not increase from its current levels (i.e., total unit shipments 
remain constant). For commercial packaged boilers (which have long 
equipment lifetimes), the installed base likely will not change 
significantly by 2012, an assumption based on historical values for 
shipments of commercial packaged boilers.
    DOE calculated the total energy savings from 2012 to 2042 based on 
the assumption that any new technology or technology switching prompted 
by an amended energy conservation standard will diffuse into the stock 
linearly over the lifetime of the equipment (i.e., over the 30-year 
analysis period). Although manufacturers are required to comply with a 
new standard level as soon as it becomes effective, the products that 
are actually being used by consumers are not replaced with more-
efficient equipment until the old equipment is retired. Therefore, DOE 
is assuming that older equipment is retired and replaced with newer, 
more-efficient equipment linearly over the analysis period. DOE 
calculated the total actual energy savings over the lifetime of the 
equipment by calculating the total energy consumption for each 
equipment class at each efficiency level over the analysis period using 
the following equation:
[GRAPHIC] [TIFF OMITTED] TP16JY08.008

The annual energy savings represents the total energy saved each year 
by replacing the entire installed stock of the equipment at base-case 
efficiencies with equipment consuming energy at the amended energy 
conservation standard level (i.e., at standards case efficiencies).
    Special consideration was given to small and large, gas-fired, 
steam, natural draft, commercial packaged boilers, because for both of 
these products, ASHRAE Standard 90.1-2007 specifies two tiers of 
efficiency levels, with one level that goes into effect in the year 
2010, and another, more stringent efficiency level that becomes 
effective in the year 2020.\19\ DOE has tentatively decided not to 
adopt the efficiency levels effective in 2010 because they appear to be 
less stringent than the

[[Page 40790]]

current Federal energy conservation standards, and analyzed only the 
ASHRAE Standard 90.1-2007 efficiency levels effective 2020 for both of 
these equipment classes. Because the second tier of efficiency 
standards becomes effective ten years after the beginning of the 
analysis period, DOE adjusted the total energy savings to account for 
the delay in effective date. For the first ten years of the analysis 
period (i.e., 2012 to 2022), there would be no energy savings for these 
two equipment classes. Over the remaining 20 years of the analysis 
period, DOE assumed more-efficient equipment required by an amended 
energy conservation standard would diffuse into the existing stock of 
equipment linearly over the analysis period as older equipment is 
retired.
---------------------------------------------------------------------------

    \19\ EPCA states if DOE adopts amended national energy 
conservation standards for commercial packaged boilers based on that 
ASHRAE Standard 90.1 efficiency levels, such standards shall become 
effective two years after the effective date of the applicable 
minimum energy efficiency requirement in the amended ASHRAE Standard 
90.1. (42 U.S.C. 6313(a)(6)(D)) Thus, for purposes of DOE 
regulations, the effective dates of the 2010 and 2020 ASHRAE 
Standard 90.1-2007 efficiency levels would be 2012 and 2022, 
respectively.
---------------------------------------------------------------------------

    Because the lifetime of commercial packaged boilers was assumed to 
be 30 years and because only 20 years is remaining in the analysis 
period when these latter ASHRAE Standard 90.1-2007 efficiency levels 
would go into effect for these two equipment classes, only two-thirds 
of commercial packaged boiler equipment stock would be at efficiency 
levels at or above those specified by ASHRAE Standard 90.1-2007 at the 
end of the analysis period. The remaining one-third of the stock would 
still be at the same efficiency as it was before the standard levels 
were amended. The remaining one-third of the stock would then be 
retired over the following 10 years (after the analysis period has 
ended) and replaced with equipment that meets or exceeds the efficiency 
levels specified in ASHRAE Standard 90.1-2007.
    For efficiency levels more stringent than those efficiency levels 
specified by ASHRAE Standard 90.1-2007, DOE used a delayed 
implementation date, which coincides with the effective dates that are 
required consistent with EPCA. For the first two years of the analysis 
period (i.e., 2012 to 2014), there would be no energy savings if DOE 
were to adopt more stringent efficiency levels than those specified in 
ASHRAE Standard 90.1-2007 when the ASHRAE Standard 90.1-2007 efficiency 
levels are effective in 2010. For the first 12 years of the analysis 
period (i.e., 2012 to 2024), there would be no energy savings if DOE 
were to adopt the efficiency levels specified in ASHRAE Standard 90.1-
2007 when the ASHRAE Standard 90.1-2007 efficiency levels are effective 
in 2020. Over the remaining 28 years of the analysis period for those 
efficiency levels where ASHRAE specifies an effective date of 2010, DOE 
assumed more-efficient equipment required by an amended energy 
conservation standard would diffuse into the existing stock of 
equipment linearly over the analysis period (commencing in 2012) as 
older equipment is retired.

D. Estimates of Potential Energy Savings

    DOE estimated the potential primary energy savings in trillions of 
Btus for each efficiency level considered within each equipment class 
of commercial packaged boilers. DOE did not analyze the first set of 
ASHRAE Standard 90.1-2007 efficiency levels with 2010 effective dates 
for large, gas-fired, steam, natural draft commercial packaged boilers 
and for small, gas-fired, steam, natural draft commercial packaged 
boilers. Table III.4--Table III.12 show the potential energy savings 
for commercial packaged boilers resulting from the analyses conducted 
as part of this NODA.

 Table III.4.--Potential Energy Savings for Small, Gas-Fired, Hot Water
                       Commercial Packaged Boilers
------------------------------------------------------------------------
                                                         Primary energy
                                                             savings
                   Efficiency level                         estimate*
                                                         (trillion Btu)
------------------------------------------------------------------------
Level 1--ASHRAE--80% ET...............................              13.3
Level 2--82% ET.......................................              18.7
Level 3--84% ET.......................................              64.0
Level 4--86% ET.......................................             127.5
Level 5--92% ET.......................................             320.0
Level 6--``Max-Tech''--98.1% ET.......................             483.3
------------------------------------------------------------------------
*DOE calculated the potential energy savings from making the efficiency
  levels more stringent than those specified by ASHRAE Standard 90.1-
  2007, using the efficiency levels in Standard 90.1-2007 as the
  baseline.


 Table III.5.--Potential Energy Savings Estimates for Small, Gas-Fired,
       Steam, All Except Natural Draft Commercial Packaged Boilers
------------------------------------------------------------------------
                                                         Primary energy
                                                             savings
                   Efficiency level                         estimate*
                                                         (trillion Btu)
------------------------------------------------------------------------
Level 1--ASHRAE--79% ET...............................              63.1
Level 2--80% ET.......................................              24.7
Level 3--81% ET.......................................              65.1
Level 4--82% ET.......................................             106.2
Level 5--``Max-Tech''--83.1% ET.......................             150.9
------------------------------------------------------------------------
*DOE calculated the potential energy savings from making the efficiency
  levels more stringent than those specified by ASHRAE Standard 90.1-
  2007, using the efficiency levels in Standard 90.1-2007 as the
  baseline.


 Table III.6.--Potential Energy Savings Estimates for Small, Gas-Fired,
            Steam, Natural Draft Commercial Packaged Boilers
------------------------------------------------------------------------
                                                         Primary energy
                                                             savings
                   Efficiency level                         estimate*
                                                         (trillion Btu)
------------------------------------------------------------------------
Level 1--ASHRAE--79% ET...............................               1.7
Level 2--``Max-Tech''--80.4% ET.......................               6.6
------------------------------------------------------------------------
*DOE calculated the potential energy savings from making the efficiency
  levels more stringent than those specified by ASHRAE Standard 90.1-
  2007, using the efficiency levels in Standard 90.1-2007 as the
  baseline.


 Table III.7.--Potential Energy Savings Estimates for Small, Oil-Fired,
                  Hot Water Commercial Packaged Boilers
------------------------------------------------------------------------
                                                         Primary energy
                                                             savings
                   Efficiency level                         estimate*
                                                         (trillion Btu)
------------------------------------------------------------------------
Level 1--ASHRAE--82% ET...............................               7.9
Level 2--84% ET.......................................              12.5
Level 3--86% ET.......................................              28.1
Level 4--88% ET.......................................              47.4
Level 5--``Max-Tech''--92.9% ET.......................              84.7
------------------------------------------------------------------------
*DOE calculated the potential energy savings from making the efficiency
  levels more stringent than those specified by ASHRAE Standard 90.1-
  2007, using the efficiency levels in Standard 90.1-2007 as the
  baseline.


 Table III.8.--Potential Energy Savings Estimates for Small, Oil-Fired,
                    Steam Commercial Packaged Boilers
------------------------------------------------------------------------
                                                         Primary energy
                                                             savings
                   Efficiency level                         estimate*
                                                         (trillion Btu)
------------------------------------------------------------------------
Level 1--ASHRAE--81% ET...............................               5.5
Level 2--82% ET.......................................              10.3
Level 3--83% ET.......................................              29.9
Level 4--84% ET.......................................              53.5
Level 5--``Max-Tech''--85.6% ET.......................              67.5
------------------------------------------------------------------------
*DOE calculated the potential energy savings from making the efficiency
  levels more stringent than those specified by ASHRAE Standard 90.1-
  2007, using the efficiency levels in Standard 90.1-2007 as the
  baseline.


[[Page 40791]]


 Table III.9.--Potential Energy Savings Estimates for Large, Gas-Fired,
                  Hot Water Commercial Packaged Boilers
------------------------------------------------------------------------
                                                         Primary energy
                                                             savings
                   Efficiency level                         estimate*
                                                         (trillion Btu)
------------------------------------------------------------------------
Level 1--ASHRAE--82% EC...............................               5.5
Level 2--83% EC.......................................              13.1
Level 3--84% EC.......................................              34.5
Level 4--85% EC.......................................              57.1
Level 5--``Max-Tech''--96.9% EC.......................            321.4
------------------------------------------------------------------------
* DOE calculated the potential energy savings from making the efficiency
  levels more stringent than those specified by ASHRAE Standard 90.1-
  2007, using the efficiency levels in Standard 90.1-2007 as the
  baseline.


 Table III.10.--Potential Energy Savings Estimates for Large, Gas-Fired,
       Steam, All Except Natural Draft Commercial Packaged Boilers
------------------------------------------------------------------------
                                                         Primary energy
                                                             savings
                   Efficiency level                         estimate*
                                                         (trillion Btu)
------------------------------------------------------------------------
Level 1--ASHRAE--79% ET...............................              53.4
Level 2--80% ET.......................................              47.0
Level 3--81% ET.......................................             118.6
Level 4--82% ET.......................................             190.4
Level 5--``Max-Tech''--83.2% ET.......................            276.5
------------------------------------------------------------------------
* DOE calculated the potential energy savings from making the efficiency
  levels more stringent than those specified by ASHRAE Standard 90.1-
  2007, using the efficiency levels in Standard 90.1-2007 as the
  baseline.


 Table III.11.--Potential Energy Savings Estimates for Large, Gas-Fired,
            Steam, Natural Draft Commercial Packaged Boilers
------------------------------------------------------------------------
                                                         Primary energy
                                                             savings
                   Efficiency level                         estimate*
                                                         (trillion Btu)
------------------------------------------------------------------------
Level 1--ASHRAE--79% ET...............................               1.8
Level 2--80% ET.......................................              18.5
Level 3--``Max-Tech''--81.1% ET.......................             34.2
------------------------------------------------------------------------
* DOE calculated the potential energy savings from making the efficiency
  levels more stringent than those specified by ASHRAE Standard 90.1-
  2007, using the efficiency levels in Standard 90.1-2007 as the
  baseline.


 Table III.12.--Potential Energy Savings Estimates for Large, Oil-Fired,
                  Hot Water Commercial Packaged Boilers
------------------------------------------------------------------------
                                                         Primary energy
                                                             savings
                   Efficiency level                         estimate*
                                                         (trillion Btu)
------------------------------------------------------------------------
Level 1--86% EC.......................................               **0
Level 2--87% EC.......................................               4.8
Level 3--``Max-Tech''--88.5% EC.......................             23.3
------------------------------------------------------------------------
* DOE calculated the potential energy savings from making the efficiency
  levels more stringent than those specified by ASHRAE Standard 90.1-
  2007, using the efficiency levels in Standard 90.1-2007 as the
  baseline.
** The current market average efficiency is 86% combustion efficiency,
  which is higher than the efficiency level specified by ASHRAE Standard
  90.1-2007. Thus, the potential energy savings from adopting the ASHRAE
  Standard 90.1-2007 efficiency level for large, oil-fired, hot water
  commercial packaged boilers is zero.

IV. Public Participation

A. Submission of Comments

    DOE will accept comments, data, and information regarding this NODA 
no later than August 15, 2008. Please submit comments, data, and 
information electronically to the following e-mail address: [email protected]. Submit electronic comments in WordPerfect, 
Microsoft Word, PDF, or text (ASCII) file format and avoid the use of 
special characters or any form of encryption. Comments in electronic 
format should be identified by the docket number, EERE-2008-BT-STD-
0013, and/or RIN 1904-AB83, and whenever possible should carry the 
electronic signature of the author. Alternatively, comments may be 
submitted to the address provided at the beginning of this notice in 
the ADDRESSES section (which generally provides instructions for 
submission of comments in both electronic and hard-copy forms). No 
telefacsimiles (faxes) will be accepted.
    Pursuant 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 shall 
include all the information believed to be confidential, and the other 
copy of the document shall have 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.
    Factors that DOE considers when evaluating requests to treat 
submitted information as confidential include: (1) A description of the 
items; (2) whether and why such items are customarily treated as 
confidential within the industry; (3) whether the information is 
generally known by, or available from, other sources; (4) whether the 
information has previously been made available to others without 
obligation concerning its confidentiality; (5) an explanation of the 
competitive injury to the submitting person which would result from 
public disclosure; (6) when such information might lose its 
confidential character due to the passage of time; and (7) why 
disclosure of the information would be contrary to the public interest.

B. Issues on Which DOE Seeks Comment

    DOE is interested in receiving comments on all aspects of this 
NODA. DOE especially invites comments or data to improve DOE's 
analysis, including data or information that will respond to the 
following questions or concerns:
    1. DOE surveyed the AHRI Directory of Certified Product Performance 
and did not identify any water-cooled and evaporatively-cooled 
commercial packaged air conditioners on the market with a cooling 
capacity at or above 240,000 Btu/h. Therefore, DOE did not perform a 
potential energy-savings analysis on this equipment type. DOE seeks 
comments from interested parties on the market for and energy-savings 
potential of water-cooled and evaporatively-cooled commercial package 
air conditioners and heat pumps with a cooling capacity at or above 
240,000 Btu/h.
    2. DOE seeks input on the base-case distribution of efficiencies 
and its prediction of how amended energy conservation standards would 
affect the distribution of efficiencies in the standards case. DOE used 
the distribution of models in the 2008 I=B=R directory as the basis for 
analysis.
    3. DOE seeks input on the base-case distribution of capacities and 
its prediction of how amended energy conservation standards will affect 
the distribution of capacities in the standards case. DOE used the 
distribution of models in the 2008 I=B=R directory as the basis for 
analysis.

    Issued in Washington, DC, on July 9, 2008.
Alexander A. Karsner,
Assistant Secretary, Energy Efficiency and Renewable Energy.
[FR Doc. E8-16256 Filed 7-15-08; 8:45 am]
BILLING CODE 6450-01-P