[Federal Register Volume 75, Number 82 (Thursday, April 29, 2010)]
[Notices]
[Pages 22581-22584]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-9972]


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

DEPARTMENT OF ENERGY

Office of Energy Efficiency and Renewable Energy

[Case No. CAC-026]


Energy Conservation Program for Commercial Equipment: Decision 
and Order Granting a Waiver to Daikin AC (Americas), Inc. (Daikin) From 
the Department of Energy Commercial Package Air Conditioner and Heat 
Pump Test Procedures

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

ACTION: Decision and order.

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

SUMMARY: This notice publishes the U.S. Department of Energy's (DOE) 
decision and order in Case No. CAC-026, which grants Daikin a waiver 
from the existing DOE test procedure applicable to commercial package 
central air conditioners and heat pumps. The waiver is specific to the 
Daikin variable capacity VRV-WIII (commercial) water-source multi-split 
heat pumps. As a condition of this waiver, Daikin must use the 
alternate test procedure set forth in this notice to test and rate its 
VRV-WIII multi-split products.

DATES: This decision and order is effective April 29, 2010.

FOR FURTHER INFORMATION CONTACT: Dr. Michael G. Raymond, U.S. 
Department of Energy, Building Technologies Program, Mailstop EE-2J, 
1000 Independence Avenue, SW., Washington, DC 20585-0121. Telephone: 
(202) 586-9611. E-mail: [email protected]. Betsy Kohl, U.S. 
Department of Energy, Office of General Counsel, Mail Stop GC-71, 1000 
Independence Avenue, SW., Washington, DC 20585-0103, (202) 586-9507; E-
mail: [email protected].

SUPPLEMENTARY INFORMATION: In accordance with Title 10 of the Code of 
Federal Regulations (10 CFR) 431.401(f)(4), DOE gives notice that it 
issues the decision and order set forth below. In this decision and 
order, DOE grants Daikin a waiver from the existing DOE commercial 
package air conditioner and heat pump test procedures for its VRV-WIII 
multi-split products. The waiver requires Daikin use the alternate test 
procedure provided in this notice to test and rate the specified models 
from its VRV-WIII multi-split product line. The capacities of the 
Daikin VRV-WIII multi-split heat pumps range from 72,000 Btu/hr to 
252,000 Btu/hr. The applicable test procedure for Daikin's commercial 
VRV-WIII multi-split heat pumps with capacities less than 135,000 Btu/
hr is ISO Standard 13256-1 (1998). There is no applicable test 
procedure for the larger-capacity Daikin VRV-WIII heat pumps. Today's 
decision prohibits Daikin from making any representations concerning 
the energy efficiency of these products unless the product has been 
tested consistent with the provisions and restrictions in the alternate 
test procedure set forth in the decision and order below, and the 
representations fairly disclose the test results. 42 U.S.C. 6314(d).
    Distributors, retailers, and private labelers are held to the same 
standard when making representations regarding the energy efficiency of 
these products. 42 U.S.C. 6293(c).

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

Decision and Order

    In the Matter of: Daikin AC (Americas), Inc. (Daikin) (Case No. 
CAC-026).

Background

    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. 
Part A-1 of Title III provides for a similar energy efficiency program 
titled ``Certain Industrial Equipment,'' which includes large and small 
commercial air conditioning equipment, package boilers, storage water 
heaters, and other types of commercial equipment. 42 U.S.C. 6311-6317.
    Today's notice involves commercial equipment under Part A-1. The 
statute specifically includes definitions, test procedures, labeling 
provisions, and energy conservation standards. It also provides the 
Secretary of Energy (the Secretary) with the authority to require 
information and reports from manufacturers. 42 U.S.C. 6311-6317. The 
statute authorizes the Secretary to prescribe test procedures that are 
reasonably designed to produce test results that reflect energy 
efficiency, energy use, and estimated annual operating costs, and that 
are not unduly burdensome to conduct. 42 U.S.C. 6314(a)(2).
    For commercial package air-conditioning and heating equipment, EPCA 
provides that ``the test procedures shall be those generally accepted 
industry testing procedures or rating procedures developed or 
recognized by the Air-Conditioning and Refrigeration Institute or by 
the American Society of Heating, Refrigerating and Air-Conditioning 
Engineers, 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 Secretary must amend the test procedure for a 
covered commercial product if the applicable 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 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 at 10 CFR 431.95(b)(3) incorporate by 
reference ISO Standard 13256-1-1998. In addition, Table 1 of 10 CFR 
431.96 directs manufacturers of commercial package water-source air 
conditioning and heating equipment to use the appropriate procedure 
when measuring the 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 range from 72,000 Btu/hr to 
252,000 Btu/hr. The Daikin products with capacities >= 135,000 Btu/hr 
are not covered by this waiver because there is no DOE test procedure 
for water-source heat pumps with capacities >= 135,000 Btu/hr.
    In addition, DOE's regulations allow a person to seek a waiver for 
a particular

[[Page 22582]]

basic model from the test procedure requirements for covered commercial 
equipment if: (1) That 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 characteristics as to provide materially inaccurate 
comparative data. 10 CFR 431.401(a)(1). A waiver petition must include 
any alternate test procedures known to the petitioner to evaluate 
characteristics of 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 allows any interested person who has 
submitted a petition for waiver to file an application for interim 
waiver from the applicable test procedure requirements. 10 CFR 
431.401(a)(2). An interim waiver may be granted if the Assistant 
Secretary determines 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 if 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 180 days or until DOE issues its determination on the 
petition for waiver, whichever occurs first. The interim waiver may be 
extended by DOE for an additional 180 days. 10 CFR 431.401(e)(4).
    On November 10, 2009, Daikin filed a petition for waiver and an 
application for interim waiver from the test procedures applicable to 
small and large commercial package air-cooled air-conditioning and 
heating equipment. The applicable test procedure is ISO Standard 13256-
1-1998, specified in Tables 1 and 2 of 10 CFR 431.96. Daikin asserted 
that the two primary factors that prevent testing of multi-split 
variable speed products, regardless of manufacturer, are the same 
factors stated in the waivers that DOE granted to Mitsubishi Electric & 
Electronics USA, Inc. (Mitsubishi) for a similar line of commercial 
multi-split air-conditioning systems:
     Testing laboratories cannot test products with so many 
indoor units; and
     There are too many possible combinations of indoor and 
outdoor units to test. 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); Daikin, 74 FR 16373 
(April 10, 2009); and LG, 74 FR 66330 (December 15, 2009).
    On January 29, 2010, DOE published Daikin's petition for waiver in 
the Federal Register, seeking public comment pursuant to 10 CFR 
431.3401(b)(1)(iv), and granted the application for interim waiver. 75 
FR 4795. DOE received no comments on the Daikin petition.
    In a similar case, DOE published a petition for waiver from 
Mitsubishi for products very similar to Daikin's multi-split products. 
71 FR 14858 (March 24, 2006). In the March 24, 2006, Federal Register 
notice, DOE also published and requested comment on an alternate test 
procedure for the MEUS products at issue. DOE stated that if it 
specified an alternate test procedure for MEUS in the subsequent 
decision and order, DOE would consider applying the same procedure to 
similar waivers for residential and commercial central air conditioners 
and heat pumps, including such products for which waivers had 
previously been granted. Id. at 14861. Comments were published along 
with the Mitsubishi decision and order in the Federal Register on April 
9, 2007. 72 FR 17528. Most of the comments were favorable. One 
commenter indicated that a waiver was unnecessary. However, the 
commenter did not present a satisfactory method of testing the 
products. Id. at 17529. Generally, commenters agreed that an alternate 
test procedure is necessary while a final test procedure for these 
types of products is being developed. Id. The Mitsubishi decision and 
order included the alternate test procedure adopted by DOE. Id.

Assertions and Determinations

Daikin's Petition for Waiver
    Daikin seeks a waiver from the DOE test procedures for this product 
class on the grounds that its VRV-WIII multi-split heat pumps contain 
design characteristics that prevent them from being tested using the 
current DOE test procedures. As stated above, Daikin asserts that the 
two primary factors that prevent testing of multi-split variable speed 
products, regardless of manufacturer, are the same factors stated in 
the waivers that DOE granted to Mitsubishi, Fujitsu General Ltd. 
(Fujitsu), Samsung Air Conditioning (Samsung), Sanyo and LG for similar 
lines of commercial multi-split air-conditioning systems: (1) Testing 
laboratories cannot test products with so many indoor units; (2) there 
are too many possible combinations of indoor and outdoor unit to test.
    The Daikin VRV-WIII systems have operational characteristics 
similar to the commercial multi-split products manufactured by 
Mitsubishi, Samsung, Fujitsu, LG and Sanyo. As indicated above, DOE has 
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. Additional pressure ratings are 
available. There are over one million combinations possible with the 
Daikin VRV-WIII system. Consequently, 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. DOE believes 
that the Daikin VRV-WIII equipment, and equipment for which waivers 
have previously been granted, are alike with respect to the factors 
that make them eligible for test procedure waivers. DOE therefore 
grants Daikin a VRV-WIII multi-split product waiver similar to the 
multi-split product waivers already issued to other manufacturers.
    Previously, in addressing Mitsubishi's R410A CITY MULTI VRFZ 
products, which are similar to the Daikin products at issue here, DOE 
stated:

    To provide a test procedure from which manufacturers can make 
valid representations, [DOE] is considering setting an alternate 
test procedure for MEUS in the subsequent Decision and Order. 
Furthermore, if DOE specifies an alternate test procedure for 
[Mitsubishi], DOE is considering applying the alternate test 
procedure to similar waivers for residential and commercial central 
air conditioners and heat pumps. Such cases include Samsung's 
petition for its DVM products (70 FR 9629, February 28, 2005), 
Fujitsu's petition for its Airstage variable refrigerant flow (VRF) 
products (70 FR 5980, February 4, 2005), and [Mitsubishi]'s petition 
for its R22 CITY MULTI VRFZ products. (69 FR 52660, August 27, 
2004).

71 FR 14861.
    Daikin did not include an alternate test procedure in its petition 
for waiver. However, in response to two recent petitions for waiver 
from Mitsubishi, DOE specified an alternate test

[[Page 22583]]

procedure that Mitsubishi could use to test and make valid energy 
efficiency representations for its R410A CITY MULTI products and its 
R22 multi-split products. Alternate test procedures related to the 
Mitsubishi petitions were published in the Federal Register on April 9, 
2007. 72 FR 17533.
    DOE understands that existing testing facilities have a limited 
ability to test multiple indoor units simultaneously. It also 
understands that it is impractical to test some variable refrigerant 
flow zoned systems because of the number of possible combinations of 
indoor and outdoor units. DOE further notes that after the waiver 
granted Mitsubishi's R22 multi-split products, AHRI formed a committee 
to develop a testing protocol for variable refrigerant flow systems. 
The committee developed AHRI Standard 1230--2009: ``Performance Rating 
of Variable Refrigerant Flow (VRF) Multi-Split Air-Conditioning and 
Heat Pump Equipment.'' AHRI has adopted the standard.
    DOE issues today's decision and order granting Daikin a test 
procedure waiver for its commercial VRV-WIII [water-source?] multi-
split heat pumps. As a condition of this waiver, Daikin must use the 
alternate test procedure described below. This alternate test procedure 
is the same in all relevant particulars as the one that DOE applied to 
the Mitsubishi waiver.
Alternate Test Procedure
    The alternate test procedure permits Daikin to designate a tested 
combination for each model of outdoor unit. The indoor units designated 
as part of the tested combination must meet specific requirements. For 
example, the tested combination must have between 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 DOE test procedure also allows Daikin to represent 
the products' energy efficiency. These representations must fairly 
disclose the test results. The DOE test procedure, as modified by the 
alternate test procedure set forth in this decision and order, provides 
for efficiency rating of a non-tested combination in one of two ways: 
(1) At an energy efficiency level determined using a DOE-approved 
alternative rating method; or (2) at the efficiency level of the tested 
combination utilizing the same outdoor unit.
    As in the Mitsubishi waiver, DOE believes that allowing Daikin to 
make energy efficiency representations for non-tested combinations by 
adopting the alternative test procedure is reasonable because the 
outdoor unit is the principal efficiency driver. The current DOE test 
procedure for commercial products tends to rate these products 
conservatively because it does not account for their multi-zoning 
feature. The multi-zoning feature of these products enables them to 
cool only those portions of the building that require cooling. Products 
with a multi-zoning feature are expected to use less energy than units 
controlled by a single thermostat, which cool the entire home or 
commercial building regardless of whether only portions need cooling. 
The multi-zoning feature would not be properly evaluated by the current 
test procedure, which requires full-load testing. Full load testing 
requires the entire building to be cooled. Products using a multi-
zoning feature and subjected to full-load testing would be at a 
disadvantage because they are optimized for highest efficiency when 
operating with less than full loads. The alternate test procedure will 
provide a conservative basis for assessing the energy efficiency of 
such products.
    With regard to the laboratory testing of commercial products, some 
of the difficulties associated with the existing test procedure are 
avoided by the alternate test procedure's requirements for choosing the 
indoor units to be used in the manufacturer-specified tested 
combination. For example, in addition to limiting the number of indoor 
units, another requirement is that all the indoor units must be 
subjected the same minimum external static pressure. This requirement 
enables the test lab to manifold the outlets from each indoor unit into 
a common plenum that supplies air to a single airflow measuring 
apparatus. This eliminates situations in which some of the indoor units 
are ducted and some are non-ducted. Without this requirement, the 
laboratory must evaluate the capacity of a subgroup of indoor coils 
separately and then sum the separate capacities to obtain the overall 
system capacity. Measuring capacity in this way would require that the 
test laboratory be equipped with multiple airflow measuring 
apparatuses. It is unlikely that any test laboratory would be equipped 
with the necessary number of such apparatuses. Alternatively, the test 
laboratory could connect its one airflow measuring apparatus to one or 
more common indoor units until the contribution of each indoor unit had 
been measured. That would be so time-consuming as to be impractical.
    Furthermore, DOE stated in the March 24, 2006 notice publishing the 
Mitsubishi petition for waiver that if it decided to specify an 
alternate test procedure for Mitsubishi it would consider applying the 
procedure to waivers for similar residential and commercial central air 
conditioners and heat pumps produced by other manufacturers. 71 FR 
14861. As noted above, most of the comments received by DOE in response 
to the March 2006 notice supported the proposed alternate test 
procedure. 72 FR 17529. Commenters responding to that prior notice 
generally agreed that an alternate test procedure is appropriate for an 
interim period while a final test procedure for these products is being 
developed. Id.
    For the reasons discussed above, DOE believes Daikin's VRV-WIII 
multi-split products cannot be tested using the procedure prescribed in 
10 CFR 431.96 (ISO Standard 13256-1 (1998) and incorporated by 
reference in DOE's regulations at 10 CFR 431.95(b)(3). After careful 
consideration, DOE has decided to prescribe the alternate test 
procedure first developed for the Mitsubishi waiver for Daikin's 
commercial multi-split products. The alternate test procedure for the 
Daikin products must include the modifications described above.
Consultations With Other Agencies
    DOE consulted with the Federal Trade Commission (FTC) staff 
concerning the Daikin petition for waiver. The FTC staff did not have 
any objections to issuing a waiver to Daikin.

Conclusion

    After careful consideration of all the materials submitted by 
Daikin, the absence of any comments, and consultation with the FTC 
staff, it is ordered that:
    (1) The petition for waiver filed by Daikin (Case No. CAC-026) is 
hereby granted as set forth in the paragraphs below.
    (2) Daikin shall not be required to test or rate its VRV-WIII 
multi-split air conditioner and heat pump models listed below on the 
basis of the test procedure cited in 10 CFR 431.96, specifically, ISO 
Standard 13256-1 (1998) (incorporated by reference in 10 CFR 
431.95(b)(3)). Instead, it shall be required to test and rate such 
products according to the alternate test procedure as set forth in 
paragraph (3).
VRV-WIII Series Outdoor Units
     Models RWEYQ72PTJU, RWEYQ84PTJU.

[[Page 22584]]

     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.
    (3) Alternate test procedure.
    (A) Daikin is required to test the products listed in paragraph (2) 
above according to the test procedure for central air conditioners and 
heat pumps prescribed by DOE at 10 CFR part 431 (ISO Standard 13256-1 
(1998) (incorporated by reference in 10 CFR 431.95(b)(3)), except that 
Daikin shall test a tested combination selected in accordance with the 
provisions of subparagraph (3)(B). 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:
    (i) The basic model of a variable refrigerant flow system used as a 
tested combination shall consist of an outdoor unit that is matched 
with between two and five indoor units. For multi-split systems, each 
of these indoor units shall be designed for individual operation.
    (ii) The indoor units shall:
    (a) Represent the highest sales model family, or another indoor 
model family if the highest sales model family does not provide 
sufficient capacity (see b);
    (b) Together, have a nominal cooling capacity that is between 95 
percent and 105 percent of the nominal cooling capacity of the outdoor 
unit;
    (c) Not, individually, have a nominal cooling capacity greater than 
50 percent of the nominal cooling capacity of the outdoor unit;
    (d) Operate at fan speeds that are consistent with the 
manufacturer's specifications; and
    (e) Be subject to the same minimum external static pressure 
requirement.
    (C) Representations. In making representations about the energy 
efficiency of its VRV-WIII multi-split products, for compliance, 
marketing, or other purposes, Daikin must fairly disclose the results 
of testing under the DOE test procedure in a manner consistent with the 
provisions outlined below:
    (i) For VRV-WIII multi-split combinations tested in accordance with 
this alternate test procedure, Daikin may make representations based on 
these test results.
    (ii) For VRV-WIII multi-split combinations that are not tested, 
Daikin may make representations based on the testing results for the 
tested combination and that are consistent with either of the two 
following methods:
    (a) Representation of non-tested combinations according to an 
alternative rating method approved by DOE; or
    (b) Representation of non-tested combinations at the same energy 
efficiency level as the tested combination with the same outdoor unit.
    (4) This waiver shall remain in effect from the date this order is 
issued, consistent with the provisions of 10 CFR 431.401(g).
    (5) This waiver is issued on the condition that the statements, 
representations, and documentary materials provided by the petitioner 
are valid. DOE may revoke or modify the waiver at any time if it 
determines that the factual basis underlying the Petition for Waiver is 
incorrect, or the results from the alternate test procedure are 
unrepresentative of the basic models' true energy consumption 
characteristics.

    Issued in Washington, DC on April 22, 2010.

Cathy Zoi,

Assistant Secretary, Energy Efficiency and Renewable Energy.

[FR Doc. 2010-9972 Filed 4-28-10; 8:45 am]
BILLING CODE 6450-01-P