[Federal Register Volume 75, Number 19 (Friday, January 29, 2010)]
[Notices]
[Pages 4795-4801]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-1759]


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DEPARTMENT OF ENERGY

[Case No. CAC-026]


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

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

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

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SUMMARY: This notice announces receipt of and publishes a petition for 
waiver from Daikin AC (Americas), Inc. (Daikin). The petition for 
waiver (hereafter ``petition'') requests a waiver from the U.S. 
Department of Energy (DOE) test procedure applicable to commercial 
package water-source central air conditioners and heat pumps. The 
petition is specific to the Daikin variable capacity VRV-WIII 
(commercial) multi-split heat pumps. Through this document, DOE 
solicits comments, data, and information with respect to the Daikin 
Petition, and announces the grant of an interim waiver to Daikin from 
the existing DOE test procedure for the subject commercial water-
source, multi-split air conditioners and heat pumps.

DATES: DOE will accept comments, data, and information with respect to 
the Daikin Petition until, but no later than March 1, 2010.

ADDRESSES: You may submit comments, identified by case number ``CAC-
026,'' by any of the following methods:
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
     E-mail: [email protected]. Include either 
the case number [CAC-026], and/or ``Daikin Petition'' in the subject 
line of the message.
     Mail: Ms. Brenda Edwards, U.S. Department of Energy, 
Building Technologies Program, Mailstop EE-2J/1000 Independence Avenue, 
SW., Washington, DC 20585-0121. Telephone: (202) 586-2945. Please 
submit one signed original paper copy.
     Hand Delivery/Courier: Ms. Brenda Edwards, U.S. Department 
of Energy, Building Technologies Program, 950 L'Enfant Plaza, SW., 
Suite 600, Washington, DC 20024. Please submit one signed original 
paper copy.
    Docket: For access to the docket to review the background documents 
relevant to this matter, you may visit the U.S. Department of Energy, 
950 L'Enfant Plaza, SW., (Resource Room of the Building Technologies 
Program), Washington, DC 20024; (202) 586-2945, between 9 a.m. and 4 
p.m., Monday through Friday, except Federal holidays. Available 
documents include the following items: (1) This notice; (2) public 
comments received; (3) the petition for waiver and application for 
interim waiver; and (4) prior DOE rulemakings regarding similar central 
air conditioning and heat pump equipment. Please call Ms. Brenda 
Edwards at the above telephone number for additional information 
regarding visiting the Resource Room.

FOR FURTHER INFORMATION CONTACT: Dr. Michael G. Raymond, U.S. 
Department of Energy, Building Technologies Program, Mail Stop EE-2J, 
Forrestal Building, 1000 Independence Avenue, SW., Washington, DC 
20585-0121. Telephone: (202) 586-9611. E-mail: [email protected].
    Ms. Francine Pinto or Mr. Michael Kido, U.S. Department of Energy, 
Office of the General Counsel, Mail Stop GC-72, Forrestal Building, 
1000 Independence Avenue, SW., Washington, DC 20585-0103. Telephone: 
(202) 586-7432 or (202) 586-5827, respectively. E-mail: 
[email protected] or [email protected].

SUPPLEMENTARY INFORMATION:

I. Background and Authority

    Title III of the Energy Policy and Conservation Act (EPCA) sets 
forth a variety of provisions concerning energy efficiency, including 
Part A of Title III, which establishes the ``Energy Conservation 
Program for Consumer Products Other Than Automobiles.'' (42 U.S.C. 
6291-6309) Similar to the program in Part A, Part A-1 of Title III 
provides for an energy efficiency program titled, ``Certain Industrial 
Equipment,'' which includes commercial air conditioning equipment, 
package boilers, water heaters, and other types of commercial 
equipment. (42 U.S.C. 6311-6317)
    Today's notice involves commercial equipment under Part A-1. Part 
A-1 specifically includes definitions (42 U.S.C. 6311), test procedures 
(42 U.S.C. 6314), labeling provisions (42 U.S.C. 6315), energy 
conservation standards (42 U.S.C. 6313), and the authority to require 
information and reports from manufacturers (42 U.S.C. 6316). With 
respect to test procedures, Part A-1 authorizes the Secretary of Energy 
(the Secretary) to prescribe test procedures that are reasonably 
designed to produce results which measure energy efficiency, energy 
use, and estimated annual operating costs, and that are not unduly 
burdensome to conduct. (42 U.S.C. 6314(a)(2))
    For commercial package air-conditioning and heating equipment, EPCA 
provides that ``the test procedures shall be those generally accepted 
industry testing procedures or rating procedures developed or 
recognized by the Air-Conditioning and Refrigeration Institute [ARI] or 
by the American Society of Heating, Refrigerating and Air-Conditioning 
Engineers [ASHRAE], as referenced in ASHRAE/IES Standard 90.1 and in 
effect on June 30, 1992.'' (42 U.S.C. 6314(a)(4)(A)) Under 42 U.S.C. 
6314(a)(4)(B), the statute further directs the Secretary to amend the 
test procedure for a covered commercial product if the industry test 
procedure is amended, unless the Secretary determines, by rule and 
based on clear and convincing evidence, that such a modified test 
procedure does not meet the statutory criteria set forth in 42 U.S.C. 
6314(a)(2) and (3).
    On December 8, 2006, DOE published a final rule adopting test 
procedures for commercial package air-conditioning

[[Page 4796]]

and heating equipment, effective January 8, 2007. 71 FR 71340. DOE 
adopted the International Organization for Standardization (ISO) 
Standard 13256-1-1998, ``Water-source heat pumps--Testing and rating 
for performance--Part 1: Water-to-air and brine-to-air heat pumps,'' 
for small commercial package water-source heat pumps with capacities < 
135,000 British thermal units per hour (Btu/h). Id. at 71371. Pursuant 
to this rulemaking, DOE's regulations under Title 10 of the Code of 
Federal Regulations (10 CFR) 431.95(b)(2) incorporate by reference ARI 
Standard 340/360-2004, and Table 1 to 10 CFR 431.96 directs 
manufacturers of commercial package water-source air conditioning and 
heating equipment to use the appropriate procedure when measuring 
energy efficiency of those products. The cooling capacities of Daikin's 
commercial VRV-WIII multi-split heat pump products at issue in the 
waiver petition filed by Daikin range from 72,000 Btu/hr to 252,000 
Btu/hr. The Daikin products with capacities greater than 135,000 Btu/hr 
are not covered by this waiver because there is no DOE test procedure 
for water-source heat pumps with capacities greater than 135,000 Btu/
hr.
    DOE's regulations for covered products permit a person to seek a 
waiver from the test procedure requirements for covered commercial 
equipment if at least one of the following conditions is met: (1) The 
petitioner's basic model contains one or more design characteristics 
which prevent testing according to the prescribed test procedures; or 
(2) the prescribed test procedures may evaluate the basic model in a 
manner so unrepresentative of its true energy consumption as to provide 
materially inaccurate comparative data. 10 CFR 431.401(a)(1). 
Petitioners must include in their petition any alternate test 
procedures known to the petitioner to evaluate the basic model in a 
manner representative of its energy consumption. 10 CFR 
431.401(b)(1)(iii). The Assistant Secretary for Energy Efficiency and 
Renewable Energy (Assistant Secretary) may grant a waiver subject to 
conditions, including adherence to alternate test procedures. 10 CFR 
431.401(f)(4). Waivers remain in effect pursuant to the provisions of 
10 CFR 431.401(g).
    The waiver process also permits parties submitting a petition for 
waiver to file an application for interim waiver of the applicable test 
procedure requirements. 10 CFR 431.401(a)(2). The Assistant Secretary 
will grant an interim waiver request if it is determined that the 
applicant will experience economic hardship if the application for 
interim waiver is denied, if it appears likely that the petition for 
waiver will be granted, and/or the Assistant Secretary determines that 
it would be desirable for public policy reasons to grant immediate 
relief pending a determination on the petition for waiver. 10 CFR 
431.401(e)(3). An interim waiver remains in effect for a period of 180 
days or until DOE issues its determination on the petition for waiver, 
whichever occurs first, and it may be extended by DOE for an additional 
180 days, if necessary. 10 CFR 431.401(e)(4).

II. Petition for Waiver

    On November 9, 2009, Daikin filed a petition for waiver from the 
test procedures at 10 CFR 431.96 applicable to commercial package 
water-source central air conditioners and heat pumps, as well as an 
application for interim waiver. The capacities of the Daikin VRV-WIII 
multi-split heat pumps range from 72,000 Btu/hr to 252,000 Btu/hr, 
making the applicable test procedure for Daikin's commercial VRV-WIII 
multi-split heat pumps with capacities less than 135,000 Btu/hr ISO 
Standard 13256-1 (1998), which manufacturers are directed to use 
pursuant to Table 1 of 10 CFR 431.96.
    Daikin seeks a waiver from the applicable test procedures under 10 
CFR 431.96 on the grounds that its VRV-WIII multi-split heat pumps 
contain design characteristics that prevent testing according to the 
current DOE test procedures. Specifically, Daikin asserts that the two 
primary factors that prevent testing of its multi-split variable speed 
products are the same factors stated in the waivers that DOE granted to 
Mitsubishi Electric & Electronics USA, Inc. (Mitsubishi) and other 
manufacturers for similar lines of commercial multi-split air-
conditioning systems:
     Testing laboratories cannot test products with so many 
indoor units; and
     There are too many possible combinations of indoor and 
outdoor units to test. 69 FR 52660 (August 27, 2004) (Mitsubishi 
waiver); 72 FR 17528 (April 9, 2007) (Mitsubishi waiver); 72 FR 71387 
(Dec. 17, 2007) (Samsung waiver); 72 FR 71383 (Dec. 17, 2007) (Fujitsu 
waiver); 73 FR 39680 (July 10, 2008) (Daikin waiver); 74 FR 15955 
(April 8, 2009) (Daikin waiver); 74 FR 16193 (April 9, 2009) (Sanyo 
waiver); 74 FR 16373 (April 10, 2009) (Daikin waiver)
    The VRV-WIII systems have operational characteristics similar to 
the commercial multi-split products manufactured by Mitsubishi, 
Samsung, Fujitsu and Sanyo. As indicated above, DOE has already granted 
waivers for these products. The VRV-WIII system can be connected to the 
complete range of Daikin ceiling mounted, concealed, ducted, corner, 
cassette, wall-mounted and floor-mounted and other indoor fan coil 
units. Each of these units has nine different indoor static pressure 
ratings as standard, with additional pressure ratings available. There 
are over one million combinations possible with the Daikin VRV-WIII 
system. Accordingly, Daikin requested that DOE grant a waiver from the 
applicable test procedures for its VRV-WIII product designs, until a 
suitable test method can be prescribed.

III. Application for Interim Waiver

    On November 9, 2009, in addition to its petition for waiver, Daikin 
submitted to DOE an application for interim waiver. DOE determined that 
Daikin's application for interim waiver does not provide sufficient 
market, equipment price, shipments, and other manufacturer impact 
information to permit DOE to evaluate the economic hardship Daikin 
might experience absent a favorable determination on its application 
for interim waiver. DOE understands, however, that absent an interim 
waiver, Daikin's products would not be tested and rated for energy 
consumption on an equal basis with equivalent products where DOE 
previously granted waivers, placing Daikin at a competitive 
disadvantage. Furthermore, DOE has determined that it appears likely 
that Daikin's Petition for Waiver will be granted and that is desirable 
for public policy reasons to grant Daikin immediate relief pending a 
determination on the petition for waiver. DOE believes that it is 
likely Daikin's petition for waiver for the new VRV-WIII multi-split 
models will be granted because, as noted above, DOE has previously 
granted a number of waivers for similar product designs.\1\ The two 
principal reasons supporting the grant of the previous waivers also 
apply to Daikin's VRV-WIII products: (1) Test laboratories cannot test 
products with so many indoor units; and (2) it is impractical to test 
so many combinations of indoor units with each outdoor unit. In 
addition, DOE believes that similar products should be tested

[[Page 4797]]

and rated for energy consumption on a comparable basis. For these same 
reasons, DOE also determined that it is desirable for public policy 
reasons to grant immediate relief pending a determination on the 
petition for waiver.
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    \1\ DOE notes that it has also previously granted interim 
waivers to Fujitsu (70 FR 5980 (Feb. 4, 2005)), Samsung (70 FR 9629 
(Feb. 28, 2005)), Mitsubishi (72 FR 17533 (April 9, 2007)), and 
Daikin (72 FR 35986 (July 2, 2007)), for comparable commercial 
multi-split air conditioners and heat pumps.
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    Therefore, it is ordered that:
    The application for interim waiver filed by Daikin is hereby 
granted for Daikin's VRV-WIII water-source multi-split heat pumps, 
subject to the specifications and conditions below.
    1. Daikin shall not be required to test or rate its VRV-WIII 
commercial water-source multi-split products on the basis of the 
existing test procedure under 10 CFR 431.96, which incorporates by 
reference ISO Standard 13256-1 (1998).
    2. Daikin shall be required to test and rate its VRV-WIII 
commercial water-source multi-split products according to the alternate 
test procedure as set forth in section IV(3), ``Alternate test 
procedure.''
    The interim waiver applies to the following basic model groups:
    VRV-WIII Series Outdoor Units:
     Models RWEYQ72PTJU, RWEYQ84PTJU
     Compatible Indoor Units For Above Listed Outdoor Units:
    [cir] FXAQ Series wall mounted indoor units with nominally rated 
capacities of 7,000, 9,000, 12,000, 18,000 and 24,000 Btu/hr.
    [cir] FXLQ Series floor mounted indoor units with nominally rated 
capacities of 12,000, 18,000 and 24,000 Btu/hr.
    [cir] FXNQ Series concealed floor mounted indoor units with 
nominally rated capacities of 12,000, 18,000 and 24,000 Btu/hr.
    [cir] FXDQ Series low static ducted indoor units with nominally 
rated capacities of 7,000, 9,000, 12,000, 18,000 and 24,000 Btu/hr.
    [cir] FXSQ Series medium static ducted indoor units with nominally 
rated capacities of 7,000, 9,000, 12,000, 18,000, 24,000, 30,000, 
36,000 and 48,000 Btu/hr.
    [cir] FXMQ-M Series high static ducted indoor units with nominally 
rated capacities of 30,000, 36,000, 48,000, 72,000 and 96,000 Btu/hr.
    [cir] FXMQ-P Series high static ducted indoor units with nominally 
rated capacities of 7,000, 9,000, 12,0000, 18,000, 24,000, 30,000, 
36,000 and 48,000 Btu/hr.
    [cir] FXMQ-MF Series Outdoor Air Processing indoor units with 
nominally rated capacities of 48,000, 72,000 and 96,000 Btu/hr.
    [cir] FXTQ-P Series Vertical Air Handler indoor units with 
nominally rated capacities of 12,000, 18,000, 24,000, 30,000, 36,000, 
42,000, 48,000 and 54,000 Btu/hr.
    [cir] FXZQ Series recessed cassette indoor units with nominally 
rated capacities of 7,000, 9,000, 12,000, 18,000 and 24,000 Btu/hr.
    [cir] FXFQ Series recessed cassette indoor units with nominally 
rated capacities of 12,000, 18,000, 24,000, 30,000 and 36,000 Btu/hr.
    [cir] FXHQ Series ceiling suspended indoor units with nominally 
rated capacities of 12,000, 24,000 and 36,000 Btu/hr.
    This interim waiver is conditioned upon the presumed validity of 
statements, representations, and documents provided by the petitioner. 
DOE may revoke or modify this interim waiver at any time upon a 
determination that the factual basis underlying the petition for waiver 
is incorrect, or upon a determination that the results from the 
alternate test procedure are unrepresentative of the basic models' true 
energy consumption characteristics.

IV. Alternate Test Procedure

    Responding to two recent petitions for waiver from Mitsubishi, DOE 
specified an alternate test procedure to provide a basis from which 
Mitsubishi could test and make valid energy efficiency representations 
for its R410A CITY MULTI products, as well as for its R22 multi-split 
products. Alternate test procedures related to the Mitsubishi petitions 
were published in the Federal Register on April 9, 2007. See 72 FR 
17528 and 72 FR 17533. For reasons similar to those published in these 
prior notices, DOE believes that an alternate test procedure is 
appropriate in this instance.
    DOE understands that existing testing facilities have a limited 
ability to test multiple indoor units simultaneously, and the large 
number of possible combinations of indoor and outdoor units for some 
variable refrigerant flow zoned systems makes it impractical for 
manufacturers to test. We further note that subsequent to the waiver 
that DOE granted for Mitsubishi's R22 multi-split products, ARI formed 
a committee to discuss the issue and to work on developing an 
appropriate testing protocol for variable refrigerant flow systems. The 
committee has developed a test procedure which has been adopted by 
AHRI-AHRI Standard 1230--2009: ``Performance Rating of Variable 
Refrigerant Flow (VRF) Multi-Split Air-Conditioning and Heat Pump 
Equipment.'' This test procedure has not yet been adopted by ASHRAE 
90.1, so it cannot yet be considered for adoption by DOE.
    Therefore, as discussed below, as a condition for granting this 
interim waiver to Daikin, DOE is including an alternate test procedure 
similar to those granted to Mitsubishi for its R22 and R410A products. 
DOE plans to consider the same alternate test procedure in the context 
of the subsequent Decision and Order pertaining to Daikin's petition 
for waiver. Use of this alternate test procedure will allow Daikin to 
test and make energy efficiency representations for its VRV-WIII 
products. DOE has applied a similar alternate test procedure to other 
waivers for similar residential and commercial central air conditioners 
and heat pumps manufactured by Mitsubishi (72 FR 17528, April 9, 2007); 
Samsung (72 FR 71387, Dec. 17, 2007); Fujitsu (72 FR 71383, Dec. 17, 
2007); Daikin (73 FR 39680, July 10, 2008); Daikin (74 FR 15955, April 
8, 2009); Sanyo (74 FR 16193, April 9, 2009); and Daikin (74 FR 16373, 
April 10, 2009).
    The alternate test procedure developed in conjunction with the 
Mitsubishi waiver permits Daikin to designate a ``tested combination'' 
for each model of outdoor units. The indoor units designated as part of 
the tested combination must meet specific requirements. For example, 
the tested combination must have from two to five indoor units so that 
it can be tested in available test facilities. The tested combination 
must be tested according to the applicable DOE test procedure, as 
modified by the provisions of the alternate test procedure as set forth 
below. The alternate test procedure also allows manufacturers of such 
products to make valid and consistent representations of energy 
efficiency for their air-conditioning and heat pump products.
    DOE plans to consider inclusion of the following waiver language in 
the Decision and Order for Daikin's VRV-WIII commercial multi-split 
water-source heat pump models:
    (1) The ``Petition for Waiver'' filed by Daikin Electronics, Inc. 
is hereby granted as set forth in the paragraphs below.
    (2) Daikin shall not be required to test or rate its VRV-WIII 
variable capacity multi-split heat pump products listed above in 
section III, on the basis of the existing test procedures, but shall be 
required to test and rate such products according to the alternate test 
procedure as set forth in paragraph (3).
    (3) Alternate test procedure.
    (A) Daikin shall be required to test the products listed in section 
III above according to the test procedures for central air conditioners 
and heat pumps prescribed by DOE at 10 CFR 431.96, except that Daikin 
shall test a ``tested combination'' selected in accordance

[[Page 4798]]

with the provisions of subparagraph (B) of this paragraph. For every 
other system combination using the same outdoor unit as the tested 
combination, Daikin shall make representations concerning the VRV-WIII 
products covered in this waiver according to the provisions of 
subparagraph (C) below.
    (B) Tested combination. The term ``tested combination'' means a 
sample basic model comprised of units that are production units, or are 
representative of production units, of the basic model being tested. 
For the purposes of this waiver, the tested combination shall have the 
following features:
    (1) The basic model of a variable refrigerant flow system used as a 
tested combination shall consist of one outdoor unit, with one or more 
compressors, that is matched with between 2 and 5 indoor units; for 
multi-split systems, each of these indoor units shall be designed for 
individual operation.
    (2) The indoor units shall--
    (i) Represent the highest sales model family or another indoor 
model family if the highest sales model family does not provide 
sufficient capacity (see ii);
    (ii) Together, have a nominal cooling capacity that is between 95% 
and 105% of the nominal cooling capacity of the outdoor unit;
    (iii) Not, individually, have a nominal cooling capacity that is 
greater than 50% of the nominal cooling capacity of the outdoor unit;
    (iv) Operate at fan speeds that are consistent with the 
manufacturer's specifications; and
    (v) Be subject to the same minimum external static pressure 
requirement while being configurable to produce the same static 
pressure at the exit of each outlet plenum when manifolded as per 
section 2.4.1 of 10 CFR Part 430, subpart B, appendix M.
    (C) Representations. In making representations about the energy 
efficiency of its VRV-WIII variable capacity water-source multi-split 
heat pump products, for compliance, marketing, or other purposes, 
Daikin must fairly disclose the results of testing under the DOE test 
procedure, doing so in a manner consistent with the provisions outlined 
below:
    (1) For VRV-WIII combinations tested in accordance with this 
alternate test procedure, Daikin may make representations based on 
these test results.
    (2) For VRV-WIII combinations that are not tested, Daikin may make 
representations based on the testing results for the tested combination 
at the same energy efficiency level as the tested combination with the 
same outdoor unit and which is consistent with either of the two 
following methods:
    (i) Representation of non-tested combinations according to an 
Alternative Rating Method (ARM) approved by DOE; or
    (ii) Representation of non-tested combinations at the same energy 
efficiency level as the tested combination with the same outdoor unit.

V. Summary and Request for Comments

    Through today's notice, DOE announces receipt of the Daikin 
petition for waiver from the test procedures applicable to Daikin's 
VRV-WIII commercial multi-split heat pump products. For the reasons 
articulated above, DOE also grants Daikin an interim waiver from those 
procedures. As part of this notice, DOE is publishing Daikin's petition 
for waiver in its entirety. The petition contains no confidential 
information. Furthermore, today's notice includes an alternate test 
procedure that Daikin is required to follow as a condition of its 
interim waiver and that DOE is considering including in its subsequent 
Decision and Order. In this alternate test procedure, DOE is defining a 
``tested combination'' that Daikin could use in lieu of testing all 
retail combinations of its VRV-WIII multi-split heat pump products.
    DOE is interested in receiving comments on the issues addressed in 
this notice. Pursuant to 10 CFR 431.401(d), any person submitting 
written comments must also send a copy of such comments to the 
petitioner. The contact information for the petitioner is: Mr. Akinori 
Atarashi, President, Daikin AC (Americas), Inc., 1645 Wallace Drive, 
Suite 110, Carrollton, Texas 75006. All submissions received must 
include the agency name and case number for this proceeding. Submit 
electronic comments in WordPerfect, Microsoft Word, Portable Document 
Format (PDF), or text (American Standard Code for Information 
Interchange (ASCII)) file format and avoid the use of special 
characters or any form of encryption. Wherever possible, include the 
electronic signature of the author. DOE does not accept telefacsimiles 
(faxes).
    According to 10 CFR 1004.11, any person submitting information that 
he or she believes to be confidential and exempt by law from public 
disclosure should submit two copies: One copy of the document including 
all the information believed to be confidential, and one copy of the 
document with the information believed to be confidential deleted. DOE 
will make its own determination about the confidential status of the 
information and treat it according to its determination.

    Issued in Washington, DC, on January 22, 2010.
Cathy Zoi,
Assistant Secretary, Energy Efficiency and Renewable Energy.

Daikin AC (Americas), Inc., 1645 Wallace Drive, Suite 110, Carrollton, 
TX 75006 USA. TEL: 866-4DAIKIN, FAX: 972-245-1038,
    http://www.daikinac.com

November 9, 2009.

Ms. Catherine Zoi, Assistant Secretary for Energy Efficiency and 
Renewable Energy, U.S. Department of Energy, 1000 Independence Ave., 
SW., Washington, DC 20585-0121.

Re: Petition for Waiver of Test Procedure

Dear Assistant Secretary Zoi:

    Daikin AC (Americas) Inc. (DACA) respectfully petitions the 
Department of Energy (DOE) pursuant to 10 CFR 431.401(a)(1) (2009) for 
a waiver of the test procedures applicable to commercial air 
conditioners and heat pumps, as established in 10 CFR 431.96 (2009) and 
ARI Standard 340/360-2004 \2\ and ISO Standard 13256-1 (1998) \3\, for 
the Daikin VRV-WIII system. The specific models for which DACA requests 
this waiver in the Daikin VRV-WIII product class are listed below in 
this Petition. DACA seeks a waiver from the existing central air 
conditioner and central air conditioning heat pump test procedure for 
the listed Daikin VRV-WIII systems because the basic models contain 
design criteria that prevent testing of the basic models according to 
the prescribed test procedures. We are simultaneously requesting an 
interim waiver for the same systems pursuant to 10 CFR 431.401(a)(2) 
(2009).
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    \2\ The AHRI has updated this standard from version ARI 340/360-
2004 to version AHRI 340-360-2007. However, DOE has not yet updated 
the reference to the standard in 10 CFR part 431.
    \3\ Detailed citations to the test procedures for which DACA is 
requesting a waiver are included on page 3 of this petition.
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Background

    DACA is a leading manufacturer of variable speed and Variable 
Refrigerant Volume (VRV) zoning systems that DACA offers for sale in 
the North American market. These products combine advanced technologies 
such as high efficiency variable speed compressors and fan motors with 
electronic expansion valves and other devices to insure peak operating

[[Page 4799]]

performance of the overall system and to optimize energy efficiency. 
DACA has designed the VRV-WIII systems to operate in commercial 
applications, and this product class employs zoning to provide users 
with peak utility of the system and with significant energy savings 
compared to competing technologies.

General Characteristics of DACA's Water Source VRV-WIII Products

    DACA's VRV-WIII system has the following characteristics and 
applications:
     DACA's water source VRV-WIII is an air conditioning system 
that includes numerous individually controllable discrete indoor units 
utilizing water as a heat source. In this unique system, water is piped 
from a cooling tower or boiler to the VRV-WIII (which is the equivalent 
of the outdoor unit of an air cooled conditioning system). After heat 
exchange, refrigerant is piped from the VRV-WIII to each indoor unit.
     The VRV-WIII system consists of multi-split, multi-zone 
units utilizing one or multiple outdoor units that serve up to twenty 
indoor units.
     The VRV-WIII system employs variable speed technology that 
matches system capacity to the current load thereby utilizing the 
minimum amount of energy required for optimal system operation.
     Due to its multi-zone applications, each VRV-WIII indoor 
unit can be independently controlled with a local controller allowing 
the occupant to alter their environmental condition to meet their 
needs. Individually controlled system functions include temperature, 
fan speed and mode of operation.
     The VRV-WIII system can efficiently operate the compressor 
at loads as small as 10% of the rated capacity of the system, resulting 
in significant energy savings.
     Some VRV-WIII products offer a ``heat recovery'' mode that 
allows heat that is absorbed from one indoor zone (operating in the 
cooling mode) to be discharged into another indoor zone that is calling 
for heat. This function reduces the load on the outdoor unit and 
improves overall system performance and utility.
     The VRV-WIII system employs variable speed indoor and 
outdoor high efficiency fan motors to precisely control operating 
pressures and airflow rates.
     The VRV-WIII system uses electronically controlled 
expansion valves to precisely control refrigerant flow, superheat, sub-
cooling, pump down functions and even oil flow throughout the system.
     The VRV-WIII can be applied into a Geothermal or Ground 
Source application for additional energy savings and use of the 
renewable energy in the earth.

Particular Basic Models for Which a Waiver Is Requested

    DACA requests a waiver from the test procedures for the following 
VRV-WIII basic model groups:
     VRV-WIII Series Outdoor Units:
    [cir] Models RWEYQ72PTJU, RWEYQ84PTJU, RWEYQ144PTJU, RWEYQ168PTJU, 
RWEYQ216PTJU, and RWEYQ252PTJU with capacities ranging from 72,000 to 
252,000 Btu/hr.
     Compatible Indoor Units For Above Listed Outdoor Units:
    [cir] FXAQ Series wall mounted indoor units with nominally rated 
capacities of 7,000, 9,000, 12,000, 18,000 and 24,000 Btu/hr.
    [cir] FXLQ Series floor mounted indoor units with nominally rated 
capacities of 12,000, 18,000 and 24,000 Btu/hr.
    [cir] FXNQ Series concealed floor mounted indoor units with 
nominally rated capacities of 12,000, 18,000 and 24,000 Btu/hr.
    [cir] FXDQ Series low static ducted indoor units with nominally 
rated capacities of 7,000, 9,000, 12,000, 18,000 and 24,000 Btu/hr.
    [cir] FXSQ Series medium static ducted indoor units with nominally 
rated capacities of 7,000, 9,000, 12,000, 18,000, 24,000, 30,000, 
36,000 and 48,000 Btu/hr.
    [cir] FXMQ-M Series high static ducted indoor units with nominally 
rated capacities of 30,000, 36,000, 48,000, 72,000 and 96,000 Btu/hr.
    [cir] FXMQ-P Series high static ducted indoor units with nominally 
rated capacities of 7,000, 9,000, 12,000, 18,000, 24,000, 30,000, 
36,000 and 48,000 Btu/hr
    [cir] FXMQ-MF Series Outdoor Air Processing indoor units with 
nominally rated capacities of 48,000, 72,000 and 96,000 Btu/hr.
    [cir] FXTQ-P Series Vertical Air Handler indoor units with 
nominally rated capacities of 12,000, 18,000, 24,000, 30,000, 36,000, 
42,000, 48,000 and 54,000 Btu/hr
    [cir] FXZQ Series recessed cassette indoor units with nominally 
rated capacities of 7,000, 9,000, 12,000, 18,000 and 24,000 Btu/hr.
    [cir] FXFQ Series recessed cassette indoor units with nominally 
rated capacities of 12,000, 18,000, 24,000, 30,000 and 36,000 Btu/hr.
    [cir] FXHQ Series ceiling suspended indoor units with nominally 
rated capacities of 12,000, 24,000 and 36,000 Btu/hr.

Design Characteristics Constituting the Grounds for DACA's Petition

    DACA's VRV-WIII product offering consists of multiple indoor units 
being connected to a water-cooled outdoor unit. The indoor units for 
these products are available in a very large number of potential 
configurations, including but not limited to the following: 4-Way 
Cassette, Wall Mounted, Ceiling Suspended, and Floor Standing. DACA is 
currently developing additional indoor unit models for future market 
introduction. Each of these units has nine different indoor static 
pressure ratings as standard, with additional pressure ratings 
available.
    There are over one million combinations possible with the current 
DACA VRV-WIII product offering. It is completely impractical for 
testing laboratories to test a product such as the VRV-WIII with 
multiple indoor units because of the astronomical number of potential 
system configurations.
    DACA's VRV-WIII products share many of the design characteristics 
and features of DACA's VRV, VRV-S and VRV-WIII product lines, and of 
Mitsubishi Electric and Electronics USA, Inc.'s (MEUS) CITY MULTI 
product class, for all of which DOE has previously granted waivers.\4\ 
The principal design characteristic difference between DACA's VRV and 
VRV-S products, and its VRV-WIII products, is the method of heat 
rejection. Similarly, the method of heat rejection is the most 
significant design characteristic that distinguishes the basic 
operation of the VRV-WIII product class and the MEUS CITY MULTI product 
class that has received a waiver from DOE. Like the VRV-W-II products 
for which DOE granted a waiver, the VRV-WIII products use water instead 
of air to reject heat. In contrast, the VRV and VRV-S products, as well 
as MEUS' CITY MULTI products use air to reject heat. The same testing 
constraints and limitations apply to all of these products.
---------------------------------------------------------------------------

    \4\ DOE granted DACA a waiver for its VRV and VRV-S product 
lines on July 10, 2008. 73 FR 39,680. DOE granted MEUS a waiver for 
its CITY MULTI VRFZ class of products. 69 FR 52,660 (August 27, 
2004). DOE also granted DACA a waiver for its VRV-WII product lines 
on January 7, 2008. 73 FR 1,213.
---------------------------------------------------------------------------

    The DOE relied on similar rationales to grant MEUS' petition for 
waiver and DACA's VRV-WII waiver. DOE stated the following in the 
notice granting DACA a waiver for VRV-WII:
    DOE believes that the VRV-WII Daikin equipment and equipment for 
which waivers have previously been granted [MEUS, Fujitsu General Ltd. 
and Samsung] are alike with respect to

[[Page 4800]]

the factors that make them eligible for test procedure waivers.
    74 FR 16,375. Based on these conclusions, the DOE proceeded to 
grant DACA's VRV-WII waiver request. Id.
    The DACA VRV-WIII system operates in the same configurations as the 
VRV-WII system. The reasons and rationale that DOE has already 
articulated to support previous DACA, MEUS, Sanyo, and Fujitsu waivers 
for multi-split, multi-zoned air conditioners (including the DACA VRV 
W-II system) also apply to the DACA VRV-WIII products. Therefore, DOE 
should conclude that the design characteristics of DACA's VRV-WIII 
product class prevent testing of the basic VRV-WIII model according to 
the prescribed test procedures.

Specific Testing Requirements Sought To Be Waived

    The test procedures from which DACA is requesting a waiver are ARI 
Standard 340/360-2004 and ISO Standard 13256-1 (1998). These standards, 
which are applicable to large commercial and industrial unitary air 
conditioning and heat pump equipment with a capacity of >=65,000 Btu/hr 
to <240,000 Btu/hr, are referenced in Table 2 to 10 CFR 431.96, and are 
made applicable to DACA's large commercial water source VRV-WIII 
products in 10 CFR 431.96(a).

Detailed Discussion of Need for Requested Waiver

    Although the capacity of DACA's VRV-WIII product class is within 
the scope of ARI 340/360-2004 and ISO Standard 13256-1 (1998), the 
design characteristics of the VRV-WIII product class prevent testing of 
the basic model according to the prescribed test procedures. The 
testing procedures outlined in these standards do not provide for:
     The testing of multi-split products when all connected 
indoor units physically cannot be located in a single room.
     The operation of indoor units at several different static 
pressure ratings during a single test.
     The precise number of part load tests that ARI Standard 
340/360-2004 requires for fully or infinitely variable speed products.
    DACA especially requires the requested waiver because ARI Standard 
340/360-2004 and ISO Standard 13256-1 (1998) provide no direction or 
guidance about how to test systems with millions of combinations of 
indoor units configurable to a single outdoor unit.
    A further reason that DACA needs the requested waiver is that ARI 
Standard 340/360-2004 and ISO Standard 13256-1 (1998) do not provide a 
test method to measure part load performance of a system operating in 
simultaneous cooling and heating modes (i.e., performing both heating 
and cooling functions at the same time).
    Yet another problem that prevents testing of the VRV-WIII product 
class under these two standards, and another major reason why DACA 
requires the requested waiver, is the wide variety of indoor unit 
static pressure ratings available with these and other multi-split 
products. Testing facilities cannot effectively control multiple indoor 
static pressures as would be required to test many of the indoor unit 
combinations available. To accomplish such testing, a testing lab would 
be required to use a large number of test rooms simultaneously, and 
each test room would have to be networked into the data recording 
instrumentation. Also, extensive piping configurations would need to be 
routed throughout the various test rooms. This process would be 
extraordinarily expensive, and the logistical challenges presented by 
the testing might be insurmountable.

Manufacturers of Other Basic Models Incorporating Similar Design 
Characteristics

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

Alternative Test Procedures

    DACA proposes that DOE apply the same alternate test procedure to 
the covered VRV-WIII products as DOE applied to DACA's VRV-WII products 
in the waiver that DOE granted for those products on April 10, 2009. 74 
FR 16,373. The alternate test method appears on pages 16,375-76 of the 
VRV-WII waiver.

Application for Interim Waiver

    DACA also hereby applies pursuant to 10 CFR 431.401(a)(2) for an 
interim waiver of the applicable test procedure requirements for the 
VRV-WIII product class models listed above. The basis for DACA's 
Application for Interim Waiver follows.
    DACA is likely to succeed in its Petition for Waiver because there 
is no reasonable argument that ARI Standard 340/360 can be properly 
applied to DACA's VRV-WIII product class. As explained above in the 
DACA's Petition for Waiver, the design characteristics of the VRV-WIII 
product class clearly prevent testing of the basic model according to 
the prescribed test procedures. The likelihood of DOE approving DACA's 
Petition for Waiver is buttressed by the DOE's history of approving 
previous waiver requests from DACA and from several other manufacturers 
for other products that are similar to the VRV-WIII product class, 
based on the same rationale put forth by DACA in this Petition for 
Waiver. See preceding discussion of waivers granted by DOE to MEUS, 
Fujitsu General, and Sanyo Fisher (USA) Corp.
    Additionally, DACA is likely to suffer economic hardship and 
competitive disadvantage if DOE does not grant its interim waiver 
request. DACA is now preparing to introduce its VRV-WIII product class 
in a matter of months. If we must wait for completion of the normal 
waiver consideration and issuance process, DACA will be forced to delay 
the opportunity to begin recouping through product sales its research, 
development and production costs associated with the VRV-WIII product 
class. In addition to these economic hardship costs, DACA will lose 
market share to MEUS, especially if DOE grants MEUS' pending interim 
waiver application for its CITY MULTI WR2 and WY product classes, which 
will compete directly with DACA's VRV-WIII product class.
    DOE approval of DACA's interim waiver application is also supported 
by sound public policy reasons. As DOE stated in its August 14, 2006 
approval of DACA's interim waiver for the VRV and VRV-S product 
classes:

    [I]n those instances where the likely success of the Petition 
for Waiver has been demonstrated, based upon DOE having granted a 
waiver for a similar product design, it is in the public interest to 
have similar products tested and rated for energy consumption on a 
comparable basis.

    The VRV-WIII product class will provide superior comfort to the end 
user, will allow for independent zoning of facilities from a single 
outdoor unit, and will incorporate state of the art technology such as 
variable speed compressors utilizing neodymium magnets to increase 
efficiency and electronic control of compressor speed, fan speed and 
even metering device opening positions. The VRV-WIII product class 
includes technologies that will increase system efficiency and reduce 
national energy consumption, and that will also offer a new level of 
comfort and control to end users.
    DACA requests that DOE grant our Application for Interim Waiver so 
we

[[Page 4801]]

can bring the new highly energy efficient technology represented by the 
VRV-WIII product class to the market as soon as possible, thereby 
allowing the U.S. consumer to benefit from our high technology and high 
efficiency product, and from competition for other manufacturers who 
may have already received waivers.

Confidential Information

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

Conclusion

    Daikin AC (Americas), Inc. Corporation respectfully requests DOE to 
grant its Petition for Waiver of the applicable test procedure to DACA 
for the VRV-WIII product design, and to grant its Application for 
Interim Waiver. DOE's failure to issue an interim waiver from test 
standards would cause significant economic hardship to DACA by 
preventing DACA from marketing these products even though DOE has 
previously granted a waiver to other products currently being offered 
in the market with similar design characteristics.
    We would be pleased to respond to any questions you may have 
regarding this Petition for Waiver and Application for Interim Waiver. 
Please contact Lee Smith, Director of Product Marketing at 972-245-1510 
or by e-mail at [email protected].

Sincerely,
Akinori Atarashi,
President.
[FR Doc. 2010-1759 Filed 1-28-10; 8:45 am]
BILLING CODE 6450-01-P