[Federal Register Volume 89, Number 98 (Monday, May 20, 2024)]
[Proposed Rules]
[Pages 43770-43792]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-08545]


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 Proposed Rules
                                                 Federal Register
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 This section of the FEDERAL REGISTER contains notices to the public of 
 the proposed issuance of rules and regulations. The purpose of these 
 notices is to give interested persons an opportunity to participate in 
 the rule making prior to the adoption of the final rules.
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  Federal Register / Vol. 89, No. 98 / Monday, May 20, 2024 / Proposed 
Rules  

[[Page 43770]]



DEPARTMENT OF ENERGY

10 CFR Part 431

[EERE-2022-BT-STD-0015]
RIN 1904-AF34


Energy Conservation Program: Energy Conservation Standards for 
Air-Cooled Commercial Package Air Conditioners and Heat Pumps

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

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Energy Policy and Conservation Act, as amended (``EPCA''), 
prescribes energy conservation standards for various consumer products 
and certain commercial and industrial equipment, including air-cooled 
commercial package air conditioners and heat pumps with a rated cooling 
capacity greater than or equal to 65,000 Btu/h. In this notice of 
proposed rulemaking (``NOPR''), the U.S. Department of Energy (``DOE'') 
proposes amended energy conservation standards, based on clear and 
convincing evidence, identical to those set forth in a direct final 
rule (``DFR'') published elsewhere in this issue of the Federal 
Register. If DOE receives adverse comment and determines that such 
comment may provide a reasonable basis for withdrawal of the direct 
final rule, DOE will publish a notification of withdrawal and will 
proceed with this proposed rule.

DATES: DOE will accept comments, data, and information regarding this 
NOPR no later than September 9, 2024. Comments regarding the likely 
competitive impact of the proposed standard should be sent to the 
Department of Justice contact listed in the ADDRESSES section on or 
before June 20, 2024.

ADDRESSES: See section IV of this document, ``Public Participation,'' 
for details. If DOE withdraws the direct final rule published elsewhere 
in this issue of the Federal Register, DOE will hold a public meeting 
to allow for additional comment on this proposed rule. DOE will publish 
notice of any meeting in the Federal Register.
    Interested persons are encouraged to submit comments using the 
Federal eRulemaking Portal at www.regulations.gov under docket number 
EERE-2022-BT-STD-0015. Follow the instructions for submitting comments. 
Alternatively, interested persons may submit comments, identified by 
docket number EERE-2022-BT-STD-0015, by any of the following methods:
    Email: [email protected]. Include the docket 
number EERE-2022-BT-STD-0015 in the subject line of the message.
    Postal Mail: Appliance and Equipment Standards Program, U.S. 
Department of Energy, Building Technologies Office, Mailstop EE-5B, 
1000 Independence Avenue SW, Washington, DC 20585-0121. If possible, 
please submit all items on a compact disc (``CD''), in which case it is 
not necessary to include printed copies.
    Hand Delivery/Courier: Appliance and Equipment Standards Program, 
U.S. Department of Energy, Building Technologies Office, 950 L'Enfant 
Plaza SW, 6th Floor, Washington, DC 20024. Telephone: (202) 287-1445. 
If possible, please submit all items on a CD, in which case it is not 
necessary to include printed copies.
    No telefacsimiles (``faxes'') will be accepted. For detailed 
instructions on submitting comments and additional information on this 
process, see section IV of this document (Public Participation).
    Docket: The docket for this activity, which includes Federal 
Register notices, comments, and other supporting documents/materials, 
is available for review at www.regulations.gov. All documents in the 
docket are listed in the www.regulations.gov index. However, not all 
documents listed in the index may be publicly available, such as 
information that is exempt from public disclosure.
    The docket web page can be found at www.regulations.gov/docket/EERE-2022-BT-STD-0015. The docket web page contains instructions on how 
to access all documents, including public comments, in the docket. See 
section IV of this document for information on how to submit comments 
through www.regulations.gov.
    EPCA requires the Attorney General to provide DOE a written 
determination of whether the proposed standard is likely to lessen 
competition. The U.S. Department of Justice Antitrust Division invites 
input from market participants and other interested persons with views 
on the likely competitive impact of the proposed standard. Interested 
persons may contact the Antitrust Division at 
[email protected] on or before the date specified in the DATES 
section. Please indicate in the ``Subject'' line of your email the 
title and Docket Number of this proposed rulemaking.

FOR FURTHER INFORMATION CONTACT: 
    Mr. Lucas Adin, U.S. Department of Energy, Office of Energy 
Efficiency and Renewable Energy, Building Technologies Office, EE-5B, 
1000 Independence Avenue SW, Washington, DC 20585-0121. Telephone: 
(202) 287-5904. Email: [email protected].
    Mr. Eric Stas, U.S. Department of Energy, Office of the General 
Counsel, GC-33, 1000 Independence Avenue SW, Washington, DC 20585-0121. 
Telephone: (202) 586-4798. Email: [email protected].
    For further information on how to submit a comment, review other 
public comments and the docket, or participate in the public meeting 
(if one is held), contact the Appliance and Equipment Standards Program 
staff at (202) 287-1445 or by email: 
[email protected].

SUPPLEMENTARY INFORMATION:

Table of Contents

I. Synopsis of the Proposed Rule
II. Introduction
    A. Authority
    B. Background
    1. Current Standards
    2. History of Standards Rulemaking for ACUACs and ACUHPs
    3. 2022-2023 ASRAC ACUAC/HP Working Group Recommended Standard 
Levels
III. Proposed Standards
    A. Benefits and Burdens of TSLs Considered for ACUAC and ACUHP 
Standards
    B. Annualized Benefits and Costs of the Proposed Standards
IV. Public Participation
    A. Submission of Comments
    B. Public Meeting

[[Page 43771]]

V. Procedural Issues and Regulatory Review
    A. Review Under the Regulatory Flexibility Act
VI. Approval of the Office of the Secretary

I. Synopsis of the Proposed Rule

    The Energy Policy and Conservation Act, Public Law 94-163, as 
amended (``EPCA''),\1\ authorizes the DOE to regulate the energy 
efficiency of a number of consumer products and certain industrial 
equipment. (42 U.S.C. 6291-6317, as codified) Title III, Part C \2\ of 
EPCA established the Energy Conservation Program for Certain Industrial 
Equipment. (42 U.S.C. 6311-6317) This covered equipment includes small, 
large, and very large commercial package air conditioning and heating 
equipment. (42 U.S.C. 6311(1)(B)-(D)) Such equipment includes as 
equipment categories air-cooled commercial unitary air conditioners 
with a rated cooling capacity greater than or equal to 65,000 Btu/h 
(``ACUACs'') and air-cooled commercial unitary heat pumps with a rated 
cooling capacity greater than or equal to 65,000 Btu/h (``ACUHPs''), 
which are the subject of this proposed rulemaking.\3\ The current 
energy conservation standards for the subject equipment are found in 
the Code of Federal Regulations (``CFR'') at 10 CFR 431.97(b).
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    \1\ All references to EPCA in this document refer to the statute 
as amended through the Energy Act of 2020, Public Law 116-260 (Dec. 
27, 2020), which reflect the last statutory amendments that impact 
Parts A and A-1 of EPCA.
    \2\ For editorial reasons, upon codification in the U.S. Code, 
Part C was re-designated Part A-1.
    \3\ While ACUACs and ACUHPs with rated cooling capacity less 
than 65,000 Btu/h are included in the broader category of commercial 
unitary air conditioners and heat pumps (``CUACs and CUHPs''), they 
are not addressed in this NOPR. The standards for ACUACs and ACUHPs 
with rated cooling capacity less than 65,000 Btu/h have been 
addressed in a separate rulemaking (see Docket No. EERE-2022-BT-STD-
0008). Accordingly, all references within this NOPR to ACUACs and 
ACUHPs exclude equipment with rated cooling capacity less than 
65,000 Btu/h.
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    In accordance with the authority provided by 42 U.S.C. 6295(p)(4) 
and 42 U.S.C. 6316(b)(1), DOE is proposing this rule establishing and 
amending the energy conservation standards for ACUACs and ACUHPs and is 
concurrently issuing a direct final rule published elsewhere in this 
issue of the Federal Register.\4\ DOE will proceed with this notice of 
proposed rulemaking only if it determines it must withdraw the direct 
final rule pursuant to the criteria provided in 42 U.S.C. 6295(p)(4). 
The amended standards levels in both this NOPR and that DFR reflect the 
culmination of a negotiated rulemaking that included the following 
document and stakeholder comments thereon: May 2020 energy conservation 
standards request for information (``May 2020 ECS RFI'') (85 FR 27941 
(May 12, 2020)); May 2022 test procedure (``TP'')/ECS RFI (87 FR 31743 
(May 25, 2022)); and the 2022 Appliance Standards and Rulemaking 
Federal Advisory Committee (``ASRAC'') commercial unitary air 
conditioners and heat pumps working group negotiations, hereinafter 
referred to as ``the 2023 ECS Negotiations'' (87 FR 45703 (July 29, 
2022)). Participants in the 2023 ECS Negotiations included stakeholders 
representing manufacturers, energy-efficiency and environmental 
advocates, States, and electric utility companies. See section II.B.2 
of this document for a detailed history of the current rulemaking.
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    \4\ See 42 U.S.C. 6316(b) (applying 42 U.S.C. 6295(p)(4) to 
energy conservation standard rulemakings involving a variety of 
industrial equipment, including ACUACs and ACUHPs).
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    The consensus reached by the ACUAC/HP ASRAC Working Group 
(hereinafter referred to as ``the ACUAC/HP Working Group'') on amended 
energy conservation standards (``ECS'') is outlined in the ASRAC 
Working Group Term Sheet (hereinafter referred to as ``the ACUAC/HP 
Working Group ECS Term Sheet''). (ASRAC Working Group ECS Term Sheet, 
Docket No. EERE-2022-BT-STD-0015, No. 87) As discussed in more detail 
in the accompanying direct final rule and in accordance with the 
provisions at 42 U.S.C. 6295(p)(4), DOE has tentatively determined that 
the recommendations contained in the ACUAC/HP Working Group ECS Term 
Sheet are compliant with the requirements of 42 U.S.C. 6313(a)(6)(B).
    In accordance with these and other statutory provisions discussed 
in this document, DOE proposes amended energy conservation standards 
for ACUACs and ACUHPs. The standards for ACUACs and ACUHPs are 
expressed in terms of the new integrated ventilation, economizing and 
cooling (``IVEC'') and integrated ventilation and heating efficiency 
(``IVHE''), as determined in accordance with the ACUAC/ACUHP test 
procedure set forth a final rule amending the test procedure for ACUACs 
and ACUHPs.\5\ The newly adopted DOE test procedure for ACUACs and 
ACUHPs appears at 10 CFR part 431, subpart F, appendix A1 (appendix 
A1).
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    \5\ The final rule amending the test procedure can be found at 
www.regulations.gov under docket number EERE-2023-BT-TP-0014.
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    Table I.1 presents the proposed amended standards for ACUACs and 
ACUHPs. The proposed standards are the same as those recommended by the 
ACUAC/HP Working Group. These proposed standards would apply to all 
equipment listed in Table I.1 and manufactured in, or imported into the 
United States starting on January 1, 2029, as recommended by the ACUAC/
HP Working Group.

[[Page 43772]]

[GRAPHIC] [TIFF OMITTED] TP20MY24.297

II. Introduction

    The following section briefly discusses the statutory authority 
underlying this proposed rule, as well as some of the relevant 
historical background related to the establishment of energy 
conservation standards for ACUACs and ACUHPs.

A. Authority

    EPCA, Public Law 94-163, as amended, authorizes DOE to regulate the 
energy efficiency of certain consumer products and industrial 
equipment. Title III, Part C of EPCA, added by Public Law 95-619, Title 
IV, section 441(a) (42 U.S.C. 6311-6317, as codified), established the 
Energy Conservation Program for Certain Industrial Equipment, which 
sets forth a variety of provisions designed to improve energy 
efficiency. This equipment includes ACUACs and ACUHPs, which are a 
category of small, large, and very large commercial package air 
conditioning and heating equipment and the subject of this rulemaking. 
(42 U.S.C. 6311(1)(B)-(D)) EPCA prescribed initial standards for this 
equipment. (42 U.S.C. 6313(a)(1)-(2))
    Pursuant to EPCA, DOE must amend the energy conservation standards 
for certain types of commercial and industrial equipment, including the 
equipment at issue in this document, whenever ASHRAE amends the 
standard levels or design requirements prescribed in ASHRAE Standard 
90.1, ``Energy Standard for Buildings Except Low-Rise Residential 
Buildings'' (``ASHRAE Standard 90.1''). DOE must adopt the amended 
ASHRAE Standard 90.1 levels for these equipment (hereafter ``ASHRAE 
equipment''), unless the Secretary of Energy (``the Secretary'') 
determines by rule published in the Federal Register and supported by 
clear and convincing evidence that adoption of a more-stringent uniform 
national standard would result in significant additional conservation 
of energy and is technologically feasible and economically justified. 
(42 U.S.C. 6313(a)(6)(A)-(B))
    In addition, EPCA contains a review requirement for this same 
equipment (the six-year-lookback review), which requires DOE to 
consider the need for amended standards every six years. To adopt more-
stringent standards under that provision, DOE must once again have 
clear and convincing evidence to show that such standards would be 
technologically feasible and economically justified and would save a 
significant additional amount of energy. (42 U.S.C. 6313(a)(6)(C)); see 
id. 6313(a)(6)(A)(ii)(II) & (a)(6)(B)(i))
    In deciding whether a more-stringent standard is economically 
justified, under either the provisions of 42 U.S.C. 6313(a)(6)(A) or 42 
U.S.C. 6313(a)(6)(C), DOE must determine whether the benefits of the 
standard exceed its burdens. DOE must make this determination after 
receiving comments on the proposed standard, and by considering, to the 
maximum extent practicable, the following seven factors:
    (1) The economic impact of the standard on manufacturers and 
consumers of equipment subject to the standard;
    (2) The savings in operating costs throughout the estimated average 
life of the covered equipment in the type (or class) compared to any 
increase in the price, initial charges, or maintenance expenses for the 
covered equipment that are 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 the utility or the performance of the covered 
equipment likely to result from the standard;
    (5) The impact of any lessening of competition, as determined in 
writing by the Attorney General, that is likely to result from the 
standard;
    (6) The need for national energy conservation; and
    (7) Other factors the Secretary of Energy considers relevant.

(42 U.S.C. 6313(a)(6)(B)(ii)(I)-(VII))

    The energy conservation program under EPCA, consists essentially of 
four parts: (1) testing; (2) labeling; (3) the establishment of Federal 
energy conservation standards, and (4) certification and enforcement 
procedures. Relevant provisions of the EPCA specifically include 
definitions (42 U.S.C. 6311), energy conservation standards (42 U.S.C. 
6313), test procedures (42 U.S.C. 6314), labeling provisions (42 U.S.C. 
6315), and the authority to require information and reports from 
manufacturers (42 U.S.C. 6316; 42 U.S.C. 6296(a), (b) and (d)).
    Federal energy efficiency requirements for covered equipment 
established under EPCA generally

[[Page 43773]]

supersede State laws and regulations concerning energy conservation 
testing, labeling, and standards. (42 U.S.C. 6316(a) and (b); 42 U.S.C. 
6297) DOE may, however, grant waivers of Federal preemption for 
particular State laws or regulations, in accordance with the procedures 
and other provisions set forth under EPCA. (42 U.S.C. 6316(b)(2)(D))
    Under 42 U.S.C. 6314, EPCA sets forth the criteria and procedures 
DOE is required to follow when prescribing or amending test procedures 
for covered equipment. EPCA requires that any test procedure prescribed 
or amended under this section must be reasonably designed to produce 
test results which reflect energy efficiency, energy use, or estimated 
annual operating cost of covered equipment during a representative 
average use cycle and requires that the test procedure not be unduly 
burdensome to conduct. (42 U.S.C. 6314(a)(2)) Manufacturers of covered 
equipment must use the Federal test procedures as the basis for 
certifying to DOE that their equipment complies with the applicable 
energy conservation standards adopted pursuant to EPCA (42 U.S.C. 
6316(b); 42 U.S.C. 6296) and when making representations about the 
efficiency of that equipment (42 U.S.C. 6314(d)). Similarly, DOE uses 
these test procedures to determine whether the equipment complies with 
relevant standards promulgated under EPCA. The current DOE test 
procedure for ACUACs and ACUHPs appear at 10 CFR part 431, subpart F, 
appendix A.
    EPCA also contains what is known as an ``anti-backsliding'' 
provision, which prevents the Secretary from prescribing any amended 
standard that either increases the maximum allowable energy use or 
decreases the minimum required energy efficiency of a covered product. 
(42 U.S.C. 6313(a)(6)(B)(iii)(I)) Also, the Secretary may not prescribe 
an amended or new standard if interested persons have established by a 
preponderance of the evidence that the standard is likely to result in 
the unavailability in the United States in any covered equipment type 
(or class) of performance characteristics (including reliability), 
features, sizes, capacities, and volumes that are substantially the 
same as those generally available in the United States. (42 U.S.C. 
6313(a)(6)(B)(iii)(II)(aa))
    Finally, the Energy Independence and Security Act of 2007 (``EISA 
2007''), Public Law 110-140, amended EPCA, in relevant part, to grant 
DOE authority to directly issue a final rule (hereinafter referred to 
as a ``direct final rule'' or ``DFR'') establishing an energy 
conservation standard on receipt of a statement submitted jointly by 
interested persons that are fairly representative of relevant points of 
view (including representatives of manufacturers of covered products/
equipment, States, and efficiency advocates), as determined by the 
Secretary, that contains recommendations with respect to an energy or 
water conservation standard that are in accordance with the provisions 
of 42 U.S.C. 6295(o). (42 U.S.C. 6316(b)(1); 42 U.S.C. 6295(p)(4)) 
Pursuant to 42 U.S.C. 6295(p)(4), the Secretary must also determine 
whether a jointly-submitted recommendation for an energy or water 
conservation standard satisfies 42 U.S.C. 6295(o) or 42 U.S.C. 
6313(a)(6)(B), as applicable.
    A NOPR that proposes an identical energy efficiency standard must 
be published simultaneously with the direct final rule, and DOE must 
provide a public comment period of at least 110 days on this proposal. 
(42 U.S.C. 6316(b)(1); 42 U.S.C. 6295(p)(4)(A)-(B)) While DOE typically 
provides a comment period of 60 days on proposed energy conservation 
standards, for a NOPR accompanying a direct final rule, DOE provides a 
comment period of the same length as the comment period on the direct 
final rule--i.e., 110 days. Based on the comments received during this 
period, the direct final rule will either become effective, or DOE will 
withdraw it not later than 120 days after its issuance if: (1) one or 
more adverse comments is received, and (2) DOE determines that those 
comments, when viewed in light of the rulemaking record related to the 
direct final rule, may provide a reasonable basis for withdrawal of the 
direct final rule under 42 U.S.C. 6295(o), 42 U.S.C. 6313(a)(6)(B), or 
any other applicable law. (42 U.S.C. 6316(b)(1); 42 U.S.C. 
6295(p)(4)(C)) Receipt of an alternative joint recommendation may also 
trigger a DOE withdrawal of the direct final rule in the same manner. 
(Id.) After withdrawing a direct final rule, DOE must proceed with the 
notice of proposed rulemaking published simultaneously with the direct 
final rule and publish in the Federal Register the reasons why the 
direct final rule was withdrawn. Id.
    DOE has previously explained its interpretation of its direct final 
rule authority. In a final rule amending the Department's ``Procedures, 
Interpretations and Policies for Consideration of New or Revised Energy 
Conservation Standards for Consumer Products'' at 10 CFR part 430, 
subpart C, appendix A, DOE noted that it may issue standards 
recommended by interested persons that are fairly representative of 
relative points of view as a direct final rule when the recommended 
standards are in accordance with 42 U.S.C. 6295(o) or 42 U.S.C. 
6313(a)(6)(B), as applicable. 86 FR 70892, 70912 (Dec. 13, 2021). But 
the direct final rule provision in EPCA does not impose additional 
requirements applicable to other standards rulemakings, which is 
consistent with the unique circumstances of rules issued as consensus 
agreements under DOE's direct final rule authority. Id. DOE's 
discretion remains bounded by its statutory mandate to adopt a standard 
that results in the maximum improvement in energy efficiency that is 
technologically feasible and economically justified--a requirement 
found in 42 U.S.C. 6313(a)(6)(B). As such, DOE's review and analysis of 
the Joint Agreement is limited to whether the recommended standards 
satisfy the criteria in 42 U.S.C. 6313(a)(6)(B).

B. Background

1. Current Standards
    In a direct final rule published in the Federal Register on January 
15, 2016 (``January 2016 Direct Final Rule''), DOE prescribed the 
current energy conservation standards for ACUACs and ACUHPs 
manufactured on and after January 1, 2023. 81 FR 2420. These standards 
are set forth in DOE's regulations at 10 CFR 431.97(b) and are repeated 
in Table II.1.

[[Page 43774]]

[GRAPHIC] [TIFF OMITTED] TP20MY24.298

2. History of Standards Rulemaking for ACUACs and ACUHPs
    Since publication of the January 2016 Direct Final Rule, ASHRAE 
published an updated version of ASHRAE Standard 90.1 (``ASHRAE 90.1-
2019''), which updated the minimum efficiency levels for ACUACs and 
ACUHPs to align with those adopted by DOE in the January 2016 Direct 
Final Rule (i.e., specifying two tiers of minimum levels for ACUACs and 
ACUHPs, with a January 1, 2023 compliance date for the second tier). 
ASHRAE published another version of ASHRAE Standard 90.1 in January 
2023 (``ASHRAE 90.1-2022''), which includes the same minimum efficiency 
levels for ACUACs and ACUHPs as those included in ASHRAE Standard 90.1-
2019.
    On May 12, 2020, DOE began its six-year-lookback review with for 
ACUACs and ACUHPs by publishing in the Federal Register the May 2020 
ECS RFI.\6\ 85 FR 27941. The May 2020 ECS RFI sought information to 
help DOE inform its decisions, consistent with its obligations under 
EPCA. DOE received multiple comments from interested stakeholders in 
response to the May 2020 ECS RFI, which prompted DOE to publish the May 
2022 TP/ECS RFI in the Federal Register on May 25, 2022, to investigate 
additional aspects of the ACUAC and ACUHP TP and standards. 87 FR 
31743. In the latter document, DOE identified several issues that it 
determined would benefit from further comment. DOE discussed these 
topics (including any comments received in response to the May 2020 ECS 
RFI that are related to these topics) in the May 2022 TP/ECS RFI. Once 
again, DOE received a number of written comments from interested 
parties related to standards for CUACs and CUHPs in response to the May 
2020 ECS RFI and the May 2022 TP/ECS RFI. DOE considered these comments 
in preparation of this NOPR and the direct final rule, and they are 
discussed in further detail in the direct final rule published 
elsewhere in this issue of the Federal Register.
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    \6\ The May 2020 ECS RFI also addressed commercial warm-air 
furnaces, a separate type of covered equipment which was 
subsequently handled in a different rulemaking proceeding (see 
Docket No. EERE-2019-BT-STD-0042 in www.regulations.gov).
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    On July 29, 2022, DOE published in the Federal Register a notice of 
intent to establish a working group for commercial unitary air 
conditioners and heat pumps to negotiate proposed test procedures and 
amended energy conservation standards for this equipment (``July 2022 
Notice of Intent''). 87 FR 45703. The ACUAC/HP Working Group was 
established under ASRAC in accordance with the Federal Advisory 
Committee Act (``FACA'') (5 U.S.C. App 2) and the Negotiated Rulemaking 
Act (``NRA'') (5 U.S.C. 561-570, Pub. L. 104-320). The purpose of the 
ACUAC/HP Working Group was to discuss, and if possible, reach consensus 
on recommended amendments to the test procedures and energy 
conservation standards for ACUACs and ACUHPs. The ACUAC/HP Working 
Group consisted of 14 voting members, including DOE. (See appendix A, 
Working Group Members, Document

[[Page 43775]]

No. 65 in Docket No. EERE-2022-BT-STD-0015) On December 15, 2022, the 
ACUAC/HP Working Group signed a Term Sheet (``ACUAC/HP Working Group TP 
Term Sheet'') of recommendations regarding ACUAC and ACUHP test 
procedures, including two new efficiency metrics: IVEC and IVHE. (See 
Id.)
    The ACUAC/HP Working Group met five times to discuss energy 
conservation standards for ACUACs and ACUHPs. These meetings took place 
on February 22-23, March 21-22, April 12-13, April 26-27, and May 1, 
2023. As a result of these efforts, the ACUAC/HP Working Group 
successfully reached consensus on recommended energy conservation 
standards in terms of the new IVEC and IVHE metrics for CUACs and 
CUHPs. On May 1, 2023, the ACUAC/HP Working Group signed the ACUAC/HP 
Working Group ECS Term Sheet outlining its recommendations which ASRAC 
approved on October 17, 2023. These recommendations are discussed 
further in section II.B.3 of this NOPR.
3. 2022-2023 ASRAC ACUAC/HP Working Group Recommended Standard Levels
    This section summarizes the standard levels recommended in the Term 
Sheet submitted by the ACUAC/HP Working Group for ACUAC/HP energy 
conservation standards and the subsequent procedural steps taken by 
DOE. Recommendation #1 of the ACUAC/HP Working Group ECS Term Sheet 
recommends standard levels for ACUACs and ACUHPs with a recommended 
compliance date of January 1, 2029. (ASRAC Term Sheet, No. 87 at p. 2) 
These recommended standard levels are presented in Table II.2. 
Recommendation #2 of the ACUAC/HP Working Group ECS Term Sheet 
recommends revising existing certification requirements to support the 
new metrics and standards presented in Table II.2, specifically 
requesting that manufacturers be required to certify the following 
information publicly to DOE for each basic model: (1) crankcase heat 
wattage for each compressor stage, and (2) 5 [deg]F heating capacity 
and COP, if applicable. DOE will address recommendation #2 regarding 
certification in a separate rulemaking.
[GRAPHIC] [TIFF OMITTED] TP20MY24.299

    After carefully considering the consensus recommendations for 
amending the energy conservation standards for ACUACs and ACUHPs 
submitted by the ACUAC/HP Working Group and adopted by ASRAC, DOE has 
tentatively determined that these recommendations are in accordance 
with the statutory requirements of 42 U.S.C. 6295(p)(4) and 42 U.S.C. 
6316(b)(1) for the issuance of a direct final rule. The following 
paragraphs explain DOE's rationale in making this tentative 
determination.
    First, with respect to the requirement that recommended energy 
conservation standards be submitted by interested persons that are 
fairly representative of relevant points of view, DOE notes that the 
ACUAC/HP Working Group ECS Term Sheet was signed and submitted by a 
broad cross-section of interests, including the manufacturers who 
produce the subject equipment. To satisfy this requirement, DOE has 
generally found that the group submitting a joint statement must, where 
appropriate, include larger concerns and small businesses in the 
regulated industry/manufacturer community, energy advocates, energy 
utilities, consumers, and States. However, the Department has explained 
that it will be necessary to evaluate the meaning of ``fairly 
representative'' on a case-by-case basis, subject to the circumstances 
of a particular rulemaking, to determine whether additional parties 
must be part of a joint statement beyond the required ``manufacturers 
of covered products, States, and efficiency advocates'' specifically 
called out by EPCA at 42 U.S.C. 6295(p)(4)(A). In this case, in 
addition to manufacturers, the ACUAC/HP Working Group ECS Term Sheet 
also included environmental and energy-efficiency advocacy 
organizations, and electric utility companies. Although States were not 
direct signatories to the ACUAC/HP Working Group ECS Term Sheet, the 
ASRAC Committee approving the ACUAC/HP Working Group's recommendations 
included at least two members representing States--one representing the 
State of New York and one representing the State of California. As a 
result, DOE has tentatively determined that these recommendations were 
submitted by interested persons who are fairly representative of 
relevant points of view on this matter, including those specifically 
identified by Congress: manufacturers of covered equipment, States, and 
efficiency advocates. (42 U.S.C. 6295(p)(4)(A); 42 U.S.C. 6316(b)(1))
    Pursuant to 42 U.S.C. 6295(p)(4), the Secretary must also determine 
whether a jointly-submitted recommendation for an energy or water 
conservation standard satisfies 42 U.S.C. 6295(o) or 42 U.S.C. 
6313(a)(6)(B), as applicable. In making this determination, DOE 
conducted an analysis to evaluate

[[Page 43776]]

whether the potential energy conservation standards under consideration 
achieve significant energy savings and are technologically feasible and 
economically justified. The evaluation is similar to the comprehensive 
approach that DOE typically conducts whenever it considers potential 
new or amended energy conservation standards for a given type of 
product or equipment. DOE applies the same principles to any consensus 
recommendations it may receive to satisfy its statutory obligations. 
Upon review, the Secretary tentatively determined that the ACUAC/HP 
Working Group ECS Term Sheet comports with the standard-setting 
criteria set forth under 42 U.S.C. 6313(a)(6)(B).
    Accordingly, DOE published a direct final rule establishing amended 
energy conservation standards for the subject ACUACs and ACUHPs 
published elsewhere in this issue of the Federal Register, which 
includes the consensus-recommended efficiency levels as the 
``recommended trial standard level (``TSL'') for ACUACs and ACUHPs.
    For further background information on these proposed standards and 
the supporting analyses, please see the direct final rule published 
elsewhere in this issue of the Federal Register, including section V.A 
of the DFR which provides a description of all the considered TSLs. 
That document and the accompanying technical support document (``TSD'') 
contain an in-depth discussion of the analyses conducted in evaluating 
the ACUAC/HP Working Group ECS Term Sheet, the methodologies DOE used 
in conducting those analyses, and the analytical results.
    In sum, the Secretary has tentatively determined that the relevant 
criteria under 42 U.S.C. 6295(p)(4) and 42 U.S.C. 6316(b)(1) have been 
satisfied, such that it is appropriate to propose the consensus-
recommended amended energy conservation standards for ACUACs and ACUHPs 
through this NOPR, based on the clear and convincing evidence, as 
discussed in section III.A of this document.

III. Proposed Standards

    As noted previously, EPCA specifies that, for any commercial and 
industrial equipment addressed under 42 U.S.C. 6313(a)(6)(A)(i), DOE 
may prescribe an energy conservation standard more stringent than the 
level for such equipment in ASHRAE Standard 90.1, as amended, only if 
``clear and convincing evidence'' shows that a more-stringent standard 
would result in significant additional conservation of energy and is 
technologically feasible and economically justified. (42 U.S.C. 
6313(a)(6)(A)(ii)(II)) For this proposed rule, DOE considered the 
impacts of amended standards for ACUACs and ACUHPs at each TSL, 
beginning with the maximum technologically feasible (``max-tech'') 
level, to determine whether that level was economically justified. 
Where the max-tech level was not justified, DOE then considered the 
next most efficient level and undertook the same evaluation until it 
reached the highest efficiency level that is both technologically 
feasible and economically justified and saves a significant amount of 
energy.
    To aid the reader as DOE discusses the benefits and/or burdens of 
each TSL, tables in this section present a summary of the results of 
DOE's quantitative analysis for each TSL. In addition to the 
quantitative results presented in the tables, DOE also considers other 
burdens and benefits that affect economic justification. These include 
the impacts on identifiable subgroups of consumers who may be 
disproportionately affected by a national standard and impacts on 
employment.

A. Benefits and Burdens of TSLs Considered for ACUAC and ACUHP 
Standards

    Table III.1 and Table III.2 summarize the quantitative impacts 
estimated for each TSL for ACUACs and ACUHPs. The national impacts are 
measured over the lifetime of ACUACs and ACUHPs purchased in the 30-
year period that begins in the anticipated year of compliance with 
amended standards (2029-2058). The energy savings, emissions 
reductions, and value of emissions reductions refer to full-fuel-cycle 
(``FFC'') results. DOE is presenting monetized benefits of greenhouse 
gas (``GHG'') emissions reductions in accordance with the applicable 
Executive Orders, and DOE would reach the same conclusion presented in 
this document in the absence of the social cost of greenhouse gases, 
including the Interim Estimates presented by the Interagency Working 
Group (``IWG''). The efficiency levels contained in each TSL are 
described in section V.A of the direct final rule published elsewhere 
in this issue of the Federal Register.

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[GRAPHIC] [TIFF OMITTED] TP20MY24.301

    DOE first considered TSL 4, which represents the max-tech 
efficiency levels. The max-tech efficiency levels for all equipment 
classes would require complete redesigns of almost all models currently 
available on the market to be optimized around the new test procedure 
and energy efficiency metrics to provide better field performance. TSL 
4 could necessitate using a combination of numerous design options, 
including the most efficient compressors, fans, and motor designs, 
more-efficient heat exchangers, and/or advanced controls. TSL 4 would 
save an estimated 14.8 quads of energy, an amount DOE considers 
significant. Under TSL 4, the NPV of consumer net benefit would be $1.5 
billion using a discount rate of 7 percent, and $21.7 billion using a 
discount rate of 3 percent.
    The cumulative emissions reductions at TSL 4 are 291.4 Mt of 
CO2, 67.7 thousand tons of SO2, 496.0 thousand 
tons of NOX, 0.45 tons of Hg, 2,268.2 thousand tons of 
CH4, and 2.2 thousand tons of N2O. The estimated 
monetary value of the climate benefits from reduced GHG emissions 
(associated with the average SC-GHG at a 3-percent discount rate) at 
TSL 4 is $12.6 billion. The estimated monetary value of the health 
benefits from reduced SO2 and NOX emissions at 
TSL 4 is $7.8 billion using a 7-percent discount rate and $23.2 billion 
using a 3-percent discount rate.
    Using a 7-percent discount rate for consumer benefits and costs, 
health benefits from reduced SO2 and NOX 
emissions, and the 3-percent discount rate case for climate benefits 
from reduced GHG emissions, the estimated total NPV at TSL 4 is $21.9 
billion. Using a 3-percent discount rate for all benefits and costs, 
the estimated total NPV at TSL 4 is $57.5 billion. The estimated total 
NPV is provided for additional information; however, DOE primarily 
relies upon the NPV of consumer benefits when determining whether a 
potential standard level is economically justified.
    At TSL 4, the average LCC impact is a savings of $242 for small 
ACUACs, $3,880 for large ACUACs, and $12,766 for very large ACUACs. The 
simple payback period is 10 years for small ACUACs and seven years for 
large and very large ACUACs. The fraction of consumers experiencing a 
net LCC cost is 60 percent for small ACUACs, 31 percent for large 
ACUACs, and 24 percent for very large ACUACs. On a shipment-weighted 
average basis, the average LCC impact is a savings of $2,379, the 
simple payback period is 9 years, and the fraction of consumers 
experiencing a net LCC cost is 49 percent.
    At TSL 4, the projected change in INPV ranges from a decrease of 
$1,550.6 million to a decrease of $830.1 million, which corresponds to 
decreases of 58.4 percent to 31.3 percent, respectively. DOE estimates 
that industry would need to invest $1,891 million to comply with 
standards set at TSL 4. DOE estimates that approximately 2 percent of 
small ACUAC and ACUHP models, 10 percent of large ACUAC and ACUHP 
models, and 1 percent of very large ACUAC and ACUHP models currently 
available for purchase meet the efficiency levels that would be 
required at TSL 4 after testing using the amended test procedure and 
when represented in the new metric. Very few manufacturers produce 
equipment at TSL 4 efficiency levels at this time. DOE estimates that 
only three of the nine manufacturers of small ACUACs and ACUHPs 
currently offer models that meet the efficiency levels that would be 
required for small ACUACs and ACUHPs at TSL 4. DOE estimates that only 
two of the eight manufacturers of large ACUACs and ACUHPs offer models 
that meet the efficiency levels that would be required for large ACUACs 
and ACUHPs at TSL 4. DOE estimates that only one of the eight 
manufacturers of very large

[[Page 43779]]

ACUACs and ACUHPs offer models that meet the efficiency level that 
would be required for very large ACUACs and ACUHPs at TSL 4.
    At TSL 4, DOE understands that all of the manufacturers would need 
to utilize significant engineering resources to redesign their current 
offerings to bring them into compliance with TSL 4 efficiencies. All 
manufacturers would have to invest heavily in their production 
facilities and source more-efficient components for incorporation into 
their designs. One of the challenges that certain members of the ACUAC/
HP Working Group expressed was ensuring the footprint of the large and 
very large ACUACs and ACUHPs did not grow to a level that was not 
suitable for existing retrofits. While there was some uncertainty 
surrounding what those footprints might look like, most manufacturers 
were generally concerned that TSL 4 could require such increases, 
especially for very large models. DOE understands that to meet max-tech 
IVEC levels, a high fraction of models would need larger cabinet 
footprints to accommodate the increased size of efficiency-improving 
design options, which would require substantial investment in retooling 
as well as redesign engineering efforts.
    DOE estimates that at TSL 4, most manufacturers would be required 
to redesign every ACUAC and ACUHP model offering covered by this 
rulemaking. Some manufacturers may not have the engineering capacity to 
complete the necessary redesigns within the compliance period. If 
manufacturers were unable to redesign all their covered ACUAC and ACUHP 
models within the compliance period, they would likely prioritize 
redesigns based on model sales volume. In such case, model offerings of 
large and very large ACUACs and ACUHPs might decrease, given that there 
are many capacities offered for large and very large ACUACs and ACUHPs 
and comparatively fewer shipments across which to distribute conversion 
costs. Furthermore, DOE recognizes that a standard set at max-tech 
could greatly limit equipment differentiation in the ACUAC and ACUHP 
market.
    Based upon the previous considerations, the Secretary tentatively 
concludes that at TSL 4 for ACUACs and ACUHPs, the benefits of energy 
savings, positive NPV of consumer benefits, emission reductions, and 
the estimated monetary value of the emissions reductions would be 
outweighed by the impacts on manufacturers, including the large 
conversion costs, profit margin impacts that could result in a large 
reduction in INPV, and the scale and magnitude of the redesign efforts 
needed for manufacturers to bring their current equipment offerings 
into compliance at this TSL. DOE is concerned that manufacturers may 
narrow their equipment offerings and focus on high-volume models to 
meet the standard within the compliance window. DOE is also concerned 
with the potential footprint implications, especially for very large 
ACUAC and ACUHP models, as manufacturer optimize around the new test 
procedure and metric for the largest of ACUAC and ACUHP models. 
Consequently, DOE has tentatively concluded that it is unable to make a 
determination, supported by clear and convincing evidence, that TSL 4 
is economically justified.
    DOE then considered TSL 3 (the Recommended TSL), which represents 
efficiency levels 4, 2, and 1 for small, large, and very large ACUACs 
and ACUHPs, respectively. At TSL 3 efficiency levels, DOE understand 
that manufacturers would likely need to implement fewer design options 
than needed for TSL 4. These design options could include increasing 
outdoor and/or indoor coil size, modifying compressor staging, and 
improving fan and/or fan motor efficiency in order to meet these 
levels. These technologies and design paths are familiar to 
manufacturers as they produce equipment today that can meet TSL 3 
efficiency levels, but they are not optimized around the new test 
procedure and metrics, which are more representative of field 
performance. The Recommended TSL would save an estimated 5.5 quads of 
energy, an amount DOE considers significant. Under TSL 3, the NPV of 
consumer net benefit would be $4.4 billion using a discount rate of 7 
percent, and $15.3 billion using a discount rate of 3 percent.
    The cumulative emissions reductions at the Recommended TSL are 
108.7 Mt of CO2, 25.3 thousand tons of SO2, 185.1 
thousand tons of NOX, 0.2 tons of Hg, 845.6 thousand tons of 
CH4, and 0.8 thousand tons of N2O. The estimated 
monetary value of the climate benefits from reduced GHG emissions 
(associated with the average SC-GHG at a 3-percent discount rate) at 
the Recommended TSL is $4.86 billion. The estimated monetary value of 
the health benefits from reduced SO2 and NOX 
emissions at the Recommended TSL is $3.0 billion using a 7-percent 
discount rate and $8.8 billion using a 3-percent discount rate.
    Using a 7-percent discount rate for consumer benefits and costs, 
health benefits from reduced SO2 and NOX 
emissions, and the 3-percent discount rate case for climate benefits 
from reduced GHG emissions, the estimated total NPV at TSL 3 is $12.3 
billion. Using a 3-percent discount rate for all benefits and costs, 
the estimated total NPV at TSL 3 is $29.0 billion. The estimated total 
NPV is provided for additional information; however, DOE primarily 
relies upon the NPV of consumer benefits when determining whether a 
potential standard level is economically justified.
    At the Recommended TSL, the average LCC impact is a savings of 
$1,380 for small ACUACs, $2,488 for large ACUACs, and $6,431 for very 
large ACUACs. The simple payback period is six years for small ACUACs, 
3.5 years for large ACUACs, and 1 year for very large ACUACs. The 
fraction of consumers experiencing a net LCC cost is 26 percent for 
small ACUACs, 4 percent for large ACUACs, and 1 percent for very large 
ACUACs. On a shipment-weighted average basis, the average LCC impact is 
a savings of $2,154, the simple payback period is 4.8 years, and the 
fraction of consumers experiencing a net LCC cost is 18 percent.
    At the Recommended TSL, TSL 3, the projected change in INPV ranges 
from a decrease of $193.9 million to a decrease $79.5 million, which 
correspond to decreases of 7.3 percent and 3.0 percent, respectively. 
DOE estimates that industry must invest $288 million to comply with 
standards set at the Recommended TSL. The ACUAC/HP Working Group 
manufacturers were more comfortable with TSL 3 efficiency levels, 
because the technologies anticipated to be used are the same as 
technologies employed in the commercially-available products today. In 
some cases, manufacturers believed existing cabinets could be 
maintained, while in other cases, investments would be needed to modify 
production equipment for new cabinet designs to optimize fan design and 
accommodate other changes. DOE estimates that at TSL 3 efficiency 
levels, manufacturers might likely utilize staging of the compressor 
instead of moving the entire market to variable-speed compressors. 
However, DOE understands that both of these are options that 
manufacturers may choose to improve efficiency for those models needing 
redesign. While DOE estimates that there are currently few shipments at 
the Recommended TSL, particularly for small ACUACs/HPs (as discussed in 
section IV.F.8 of the direct final rule published elsewhere in this 
issue of the Federal Register), DOE estimates that approximately 37 
percent of small ACUAC and ACUHP models, 50 percent of large ACUAC and

[[Page 43780]]

ACUHP models, and 64 percent of very large ACUAC and ACUHP models 
currently available would have the capability of meeting the efficiency 
levels required at TSL 3 without being redesigned. This indicates that 
there is already a significant number of models available on the market 
that would meet the Recommended TSL when represented in the new 
metrics, and that the technology to meet these standards is readily 
available. Manufacturers understand the design pathways and have 
significant experience with the existing technologies needed to bring 
the remaining models into compliance within the timeframe given. DOE 
estimates that five of the nine manufacturers of small ACUACs and 
ACUHPs offer models that would meet the efficiency level required at 
TSL 3. DOE estimates that six of the eight manufacturers of large 
ACUACs and ACUHPs offer models that meet the efficiency level required 
at TSL 3. DOE estimates that six of the eight manufacturers of very 
large ACUACs and ACUHPs offer models that meet the efficiency level 
required at TSL 3. Given the support expressed by the ACUAC/HP Working 
Group for TSL 3 (the Recommended TSL), DOE has tentatively concluded 
that all manufacturers of ACUACs/HPs will be able to redesign their 
model offerings in the compliance timeframe.
    After considering the analysis and weighing the benefits and 
burdens, the Secretary has tentatively concluded that the Recommended 
TSL (TSL 3) for ACUACs and ACUHPs is in accordance with 42 U.S.C. 
6313(a)(6)(B), which contains provisions for adopting a uniform 
national standard more stringent than the amended ASHRAE Standard 90.1 
\7\ for the equipment considered in this document. Specifically, the 
Secretary has tentatively determined, supported by clear and convincing 
evidence as described in a direct final rule published elsewhere in 
this issue of the Federal Register and accompanying TSD, that such 
adoption would result in significant additional conservation of energy 
and is technologically feasible and economically justified. In 
determining whether the recommended standards are economically 
justified, the Secretary has tentatively determined that the benefits 
of the recommended standards exceed the burdens. At this TSL, the 
average LCC savings for consumers of ACUACs is positive. An estimated 
18 percent of ACUAC consumers experience a net cost. The FFC national 
energy savings are significant, and the NPV of consumer benefits is 
positive using both a 3-percent and 7-percent discount rate. Notably, 
the benefits to consumers vastly outweigh the cost to manufacturers. At 
the Recommended TSL, the NPV of consumer benefits, even measured at the 
more conservative discount rate of 7 percent, is over 47 times higher 
than the maximum estimated manufacturers' loss in INPV. The economic 
justification for standard levels at the Recommended TSL is clear and 
convincing even without weighing the estimated monetary value of 
emissions reductions. When those emissions reductions are included--
representing $4.9 billion in climate benefits (associated with the 
average SC-GHG at a 3-percent discount rate), and $9.0 billion (using a 
3-percent discount rate) or $3.0 billion (using a 7-percent discount 
rate) in health benefits--the rationale becomes stronger still.
---------------------------------------------------------------------------

    \7\ As discussed in section II.B.2 of this document, ASHRAE 
Standard 90.1-2019 updated the minimum efficiency levels for ACUACs 
and ACUHPs to align with those adopted by DOE in the January 2016 
Direct Final Rule (i.e., ASHRAE Standard 90.1-2019 includes minimum 
efficiency levels that are aligned with the current Federal energy 
conservation standards). ASHRAE Standard 90.1-2022 includes the same 
minimum efficiency levels for ACUACs and ACUHPs as ASHRAE Standard 
90.1-2019.
---------------------------------------------------------------------------

    Accordingly, the Secretary has tentatively concluded, supported by 
clear and convincing evidence, that the Recommended TSL (TSL 3) would 
offer the maximum improvement in efficiency that is technologically 
feasible and economically justified and would result in the significant 
additional conservation of energy. As stated, DOE conducts the walk-
down analysis to determine the TSL that represents the maximum 
improvement in energy efficiency that is technologically feasible and 
economically justified as required under EPCA. The walk-down is not a 
comparative analysis, as a comparative analysis would result in the 
maximization of net benefits instead of energy savings that are 
technologically feasible and economically justified, which would be 
contrary to the statute. See 86 FR 70892, 70908 (Dec. 13, 2021). 
Although DOE has not conducted a comparative analysis to select the 
amended energy conservation standards, DOE notes that compared to TSL 
4, the Recommended TSL results in shorter payback periods and fewer 
consumers with net cost and results in a lower maximum decrease in INPV 
and lower manufacturer conversion costs.
    Although DOE considered amended standard levels for ACUACs and 
ACUHPs by grouping the efficiency levels for each equipment class into 
TSLs, DOE evaluates all analyzed efficiency levels in its analysis. 
Although there are ELs for each equipment class above those of TSL 3, 
the previously discussed uncertainty around the economic justification 
to support amended standards at TSL 4 applies for all efficiency levels 
higher than those of the Recommended TSL. As discussed, there is 
substantial uncertainty as to which combinations of design options 
manufacturers may employ to achieve high IVEC levels (i.e., those above 
the Recommended TSL), which may result in very high product conversion 
costs. In addition, manufacturers' capacity to redesign all models that 
do not meet the amended standard levels is constrained by resources 
devoted to the low-GWP refrigerant transition and becomes increasingly 
difficult as minimum efficiency levels increases above the Recommended 
TSL. Also, similar to TSL 4, many more cabinets would need to be 
redesigned at efficiency levels above those at TSL 3, which would 
require substantial investment in design and retooling. For small 
ACUACs and ACUHPs, adopting an efficiency level above that at TSL 3 
would result in nearly 50 percent of purchasers experiencing a net 
cost. For large and very large ACUACs and ACUHPs, higher ELs could 
potentially result in reduced configuration and model availability due 
to large jumps in failing model counts, high cost of redesign, high 
conversion costs, and lower shipment volumes (as compared to small 
ACUACs and ACUHPs) across which to distribute conversion costs. 
Therefore, DOE has tentatively concluded that it is unable to make a 
determination, supported by clear and convincing evidence, that 
efficiency levels above TSL 3 are economically justified.
    However, at the Recommended TSL, there are substantially more model 
offerings currently available on the market, and significantly less 
redesign would be required than for higher efficiency levels. 
Additionally, the efficiency levels at TSL 3 result in positive LCC 
savings for all equipment classes and with far fewer consumers 
experiencing a net LCC cost, and mitigate the impacts on INPV and 
conversion costs to the point where DOE has tentatively concluded they 
are economically justified, as discussed for the Recommended TSL in the 
preceding paragraphs.
    The proposed amended energy conservation standards for ACUACs and 
ACUHPs, which are expressed as minimum efficiency values in terms of

[[Page 43781]]

IVEC and IVHE, are shown in Table III.3.
[GRAPHIC] [TIFF OMITTED] TP20MY24.302

B. Annualized Benefits and Costs of the Proposed Standards

    The benefits and costs of the proposed standards can also be 
expressed in terms of annualized values. The annualized net benefit is: 
(1) the annualized national economic value (expressed in 2022$) of the 
benefits from operating equipment that meet the proposed standards 
(consisting primarily of operating cost savings from using less energy, 
minus increases in equipment purchase costs, and (2) the annualized 
monetary value of the climate and health benefits from emission 
reductions.
    Table III.4 shows the annualized values for ACUACs and ACUHPs under 
the Recommended TSL (TSL 3), expressed in 2022$. The results under the 
primary estimate are as follows.
    Using a 7-percent discount rate for consumer benefits and costs and 
health benefits from reduced NOX and SO2 
emissions, and the 3-percent discount rate case for climate benefits 
from reduced GHG emissions, the estimated cost of the proposed 
standards for ACUACs and ACUHPs is $481.3 million per year in increased 
equipment costs, while the estimated annual benefits are $944.7 million 
in reduced equipment operating costs, $279.2 million in climate 
benefits, and $317.1 million in health benefits. In this case, the net 
benefit would amount to $1.1 billion per year.
    Using a 3-percent discount rate for all benefits and costs, the 
estimated cost of the proposed standards for ACUACs and ACUHPs is 
$493.2 million per year in increased equipment costs, while the 
estimated annual benefits are $1371.6 billion in reduced operating 
costs, $279.2 million in climate benefits, and $507.9 million in health 
benefits. In this case, the net benefit would amount to $1.7 billion 
per year.

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[[Page 43783]]


[GRAPHIC] [TIFF OMITTED] TP20MY24.304

IV. Public Participation

A. Submission of Comments

    DOE will accept comments, data, and information regarding this 
proposed rule unit the date provided in the DATES section at the 
beginning of this proposed rule. Interested parties may submit 
comments, data, and other information using any of the methods 
described in the ADDRESSES section at the beginning of this document. 
Comments relating to the direct final rule published elsewhere in this 
issue of the Federal Register should be submitted as instructed 
therein.
    Submitting comments via www.regulations.gov. The 
www.regulations.gov web page will require you to provide your name and 
contact information. Your contact information will be viewable to DOE 
Building Technologies staff only. Your contact information will not be 
publicly viewable except for your first and last names, organization 
name (if any), and submitter representative name (if any). If your 
comment is not processed properly because of technical difficulties, 
DOE will use this information to contact you. If DOE cannot read your 
comment due to technical difficulties and cannot contact you for 
clarification, DOE may not be able to consider your comment.
    However, your contact information will be publicly viewable if you 
include it in the comment itself or in any documents attached to your 
comment. Any information that you do not want to be publicly viewable 
should not be included in your comment, nor in any document attached to 
your comment. Otherwise, persons viewing comments will see only first 
and last names, organization names, correspondence containing comments, 
and any documents submitted with the comments.
    Do not submit to www.regulations.gov information for which 
disclosure is restricted by statute, such as trade secrets and 
commercial or financial information (hereinafter referred to as 
Confidential Business Information (``CBI'')). Comments submitted 
through www.regulations.gov cannot be claimed as CBI. Comments received 
through the website will waive any CBI claims for the information 
submitted. For information on submitting CBI, see the Confidential 
Business Information section.
    DOE processes submissions made through www.regulations.gov before 
posting. Normally, comments will be posted within a few days of being 
submitted. However, if large volumes of comments are being processed 
simultaneously, your comment may not be viewable for up to several 
weeks. Please keep the comment tracking number that www.regulations.gov 
provides after you have successfully uploaded your comment.
    Submitting comments via email, hand delivery/courier, or postal 
mail. Comments and documents submitted via email, hand delivery/
courier, or postal mail also will be posted to www.regulations.gov. If 
you do not want your personal contact information to be publicly 
viewable, do not include it in your comment or any accompanying 
documents. Instead, provide your contact information in a cover letter. 
Include your first and last names, email address, telephone number, and 
optional mailing address. The cover letter will not be publicly 
viewable as long as it does not include any comments.
    Include contact information each time you submit comments, data, 
documents, and other information to DOE. If you submit via postal mail 
or hand delivery/courier, please provide all items on a CD, if 
feasible, in which case it is not necessary to submit printed copies. 
No telefacsimiles (``faxes'') will be accepted.
    Comments, data, and other information submitted to DOE 
electronically should be provided in PDF (preferred), Microsoft Word or 
Excel, WordPerfect, or text (ASCII) file format. Provide documents that 
are not secured, that are written in English, and that are free of any 
defects or viruses. Documents should not contain special characters or 
any form of encryption and, if possible, they should carry the 
electronic signature of the author.
    Campaign form letters. Please submit campaign form letters by the 
originating organization in batches of between 50 to 500 form letters 
per PDF or as one form letter with a list of supporters' names compiled 
into one or more PDFs. This reduces comment processing and posting 
time.
    Confidential Business Information. 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 via 
email two well-marked copies: one copy of the document marked 
``confidential'' including all the information believed to be 
confidential, and one copy of the document marked ``non-confidential'' 
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.
    It is DOE's policy that all comments may be included in the public 
docket, without change and as received, including any personal 
information provided in the comments (except information deemed to be 
exempt from public disclosure).

[[Page 43784]]

B. Public Meeting

    As stated previously, if DOE withdraws the direct final rule 
published elsewhere in this issue of the Federal Register pursuant to 
42 U.S.C. 6316(b)(1) and 42 U.S.C. 6295(p)(4)(C), DOE will hold a 
public meeting to allow for additional comment on this proposed rule. 
DOE will publish notice of any meeting in the Federal Register.

V. Procedural Issues and Regulatory Review

    The regulatory reviews conducted for this proposed rule are 
identical to those conducted for the direct final rule published 
elsewhere in this issue of the Federal Register. Please see the direct 
final rule for further details.

A. Review Under the Regulatory Flexibility Act

    The Regulatory Flexibility Act (5 U.S.C. 601 et seq.) requires 
preparation of an initial regulatory flexibility analysis (``IRFA'') 
and a final regulatory flexibility analysis (``FRFA'') for any rule 
that by law must be proposed for public comment, unless the agency 
certifies that the rule, if promulgated, will not have a significant 
economic impact on a substantial number of small entities. As required 
by E.O. 13272, ``Proper Consideration of Small Entities in Agency 
Rulemaking,'' 67 FR 53461 (August 16, 2002), DOE published procedures 
and policies on February 19, 2003, to ensure that the potential impacts 
of its rules on small entities are properly considered during the 
rulemaking process. 68 FR 7990. DOE has made its procedures and 
policies available on the Office of the General Counsel's website 
(www.energy.gov/gc/office-general-counsel).
    For manufacturers of ACUACs and ACUHPs, the Small Business 
Administration (``SBA'') has set a size threshold, which defines those 
entities classified as ``small businesses'' for the purposes of the 
statute. DOE used the SBA's small business size standards to determine 
whether any small entities would be subject to the requirements of the 
rule. (See 13 CFR part 121.) The size standards are listed by North 
American Industry Classification System (``NAICS'') code and industry 
description and are available at www.sba.gov/document/support--table-size-standards. Manufacturing of ACUACs and ACUHPs is classified under 
NAICS 333415, ``Air Conditioning and Warm Air Heating Equipment and 
Commercial and Industrial Refrigeration Equipment Manufacturing.'' The 
SBA sets a threshold of 1,250 employees or fewer for an entity to be 
considered as a small business for this category.
    To estimate the number of companies that could be small business 
manufacturers of ACUACs and ACUHPs, DOE conducted a market survey using 
public information and subscription-based company reports to identify 
potential small business manufacturers. DOE reviewed its Compliance 
Certification Database,\8\ the California Energy Commission's 
Modernized Appliance Efficiency Database System,\9\ the ENERGY STAR 
Product Finder dataset,\10\ individual company websites, import/export 
logs (e.g., ImportYeti \11\), and equipment specifications to create a 
list of companies that manufacture, produce, import, or private label 
the equipment covered by this proposed rulemaking. DOE further relied 
on public information and market research tools (e.g., reports from Dun 
and Bradstreet \12\) to determine company structure, location, 
headcount, and annual revenue. DOE screened out companies that do not 
offer the equipment covered by this proposed rulemaking, do not meet 
the SBA's definition of a ``small business,'' or are foreign-owned and 
operated.
---------------------------------------------------------------------------

    \8\ U.S. Department of Energy's Compliance Certification 
Database is available at regulations.doe.gov/certification-data 
(last accessed March 30, 2023).
    \9\ California Energy Commission's Modernized Appliance 
Efficiency Database System is available at 
cacertappliances.energy.ca.gov/Pages/Search/AdvancedSearch.aspx 
(last accessed Nov. 28, 2023).
    \10\ ENERGY STAR Product Finder is available at 
www.energystar.gov/productfinder (last accessed Nov. 28, 2023).
    \11\ ImportYeti login is available at www.importyeti.com/ (last 
accessed Jan. 11, 2024).
    \12\ The Dun & Bradstreet subscription login is available at 
app.dnbhoovers.com (last accessed Jan. 11, 2024).
---------------------------------------------------------------------------

    DOE identified nine original equipment manufacturers (``OEMs'') 
that sell ACUACs and ACUHPs in the United States. Of these nine OEMs, 
DOE determined none of them qualify as a domestic small business 
manufacturer of ACUACs or ACUHPs. Given the lack of small domestic OEMs 
with a direct compliance burden, DOE tentatively concludes and 
certifies that this proposed rule would not have ``a significant impact 
on a substantial number of small entities,'' and that the preparation 
of an IRFA is not warranted.
    DOE will transmit the certification and supporting statement of 
factual basis to the Chief Counsel for Advocacy of the Small Business 
Administration for review under 5 U.S.C. 605(b).

VI. Approval of the Office of the Secretary

    The Secretary of Energy has approved publication of this notice of 
proposed rulemaking.

List of Subjects in 10 CFR Part 431

    Administrative practice and procedure, Confidential business 
information, Energy conservation, Reporting and recordkeeping 
requirements.

Signing Authority

    This document of the Department of Energy was signed on April 12, 
2024, by Jeffrey Marootian, Principal Deputy Assistant Secretary for 
Energy Efficiency and Renewable Energy, pursuant to delegated authority 
from the Secretary of Energy. That document with the original signature 
and date is maintained by DOE. For administrative purposes only, and in 
compliance with requirements of the Office of the Federal Register, the 
undersigned DOE Federal Register Liaison Officer has been authorized to 
sign and submit the document in electronic format for publication, as 
an official document of the Department of Energy. This administrative 
process in no way alters the legal effect of this document upon 
publication in the Federal Register.

    Signed in Washington, DC, on April 17, 2024.
Treena V. Garrett,
Federal Register Liaison Officer, U.S. Department of Energy.

    For the reasons set forth in the preamble, DOE proposes to amend 
part 431 of chapter II, subchapter D, of title 10 of the Code of 
Federal Regulations, as set forth below:

PART 431--ENERGY EFFICIENCY PROGRAM FOR CERTAIN COMMERCIAL AND 
INDUSTRIAL EQUIPMENT

0
1. The authority citation for part 431 continues to read as follows:

    Authority:  42 U.S.C. 6291-6317; 28 U.S.C. 2461 note.

0
2. Revise Sec.  431.97 to read as follows:


Sec.  431.97   Energy efficiency standards and their compliance dates.

    (a) All basic models of commercial package air conditioning and 
heating equipment must be tested for performance using the applicable 
DOE test procedure in Sec.  431.96, be compliant with the applicable 
standards set forth in paragraphs (b) through (i) of this section, and 
be certified to the Department under 10 CFR part 429.

[[Page 43785]]

    (b) Each air-cooled commercial package air conditioning and heating 
equipment (excluding air-cooled equipment with cooling capacity less 
than 65,000 Btu/h and double-duct air conditioners or heat pumps) 
manufactured on or after January 1, 2023, and before January 1, 2029, 
must meet the applicable minimum energy efficiency standard level(s) 
set forth in table 1 to this paragraph (b). Each air-cooled commercial 
package air conditioning and heating equipment (excluding air-cooled 
equipment with cooling capacity less than 65,000 Btu/h and double-duct 
air conditioners or heat pumps) manufactured on or after January 1, 
2029, must meet the applicable minimum energy efficiency standard 
level(s) set forth in table 2 to this paragraph (b). Each water-cooled 
commercial package air conditioning and heating equipment manufactured 
on or after the compliance date listed in table 3 to this paragraph (b) 
must meet the applicable minimum energy efficiency standard level(s) 
set forth in table 3. Each evaporatively-cooled commercial air 
conditioning and heating equipment manufactured on or after the 
compliance date listed in table 4 to this paragraph (b) must meet the 
applicable minimum energy efficiency standard level(s) set forth in 
table 4. Each double-duct air conditioner or heat pump manufactured on 
or after January 1, 2010, must meet the applicable minimum energy 
efficiency standard level(s) set forth in table 5 to this paragraph 
(b).

 Table 1 to Paragraph (b)--Minimum Efficiency Standards for Air-Cooled Commercial Package Air Conditioning and Heating Equipment With a Cooling Capacity
                                                          Greater Than or Equal to 65,000 Btu/h
                                                 [Excluding double-duct air-conditioners and heat pumps]
--------------------------------------------------------------------------------------------------------------------------------------------------------
  Air-Cooled Commercial Package Air Conditioning and Heating Equipment with a Cooling Capacity Greater Than or Equal to 65,000 Btu/h (Excluding Double-
                                                          Duct Air Conditioners and Heat Pumps)
---------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                   Supplementary heating                                  Compliance date:  equipment
          Cooling capacity                   Subcategory                   type              Minimum efficiency \1\      manufactured starting on . . .
--------------------------------------------------------------------------------------------------------------------------------------------------------
>=65,000 Btu/h and <135,000 Btu/h..  AC.........................  Electric Resistance     IEER = 14.8................  January 1, 2023.
                                                                   Heating or No Heating.
>=65,000 Btu/h and <135,000 Btu/h..  AC.........................  All Other Types of      IEER = 14.6................  January 1, 2023.
                                                                   Heating.
>=65,000 Btu/h and <135,000 Btu/h..  HP.........................  Electric Resistance     IEER = 14.1................  January 1, 2023.
                                                                   Heating or No Heating. COP = 3.4..................
>=65,000 Btu/h and <135,000 Btu/h..  HP.........................  All Other Types of      IEER = 13.9................  January 1, 2023.
                                                                   Heating.               COP = 3.4..................
>=135,000 Btu/h and <240,000 Btu/h.  AC.........................  Electric Resistance     IEER = 14.2................  January 1, 2023.
                                                                   Heating or No Heating.
>=135,000 Btu/h and <240,000 Btu/h.  AC.........................  All Other Types of      IEER = 14.0................  January 1, 2023.
                                                                   Heating.
>=135,000 Btu/h and <240,000 Btu/h.  HP.........................  Electric Resistance     IEER = 13.5................  January 1, 2023.
                                                                   Heating or No Heating. COP = 3.3..................
>=135,000 Btu/h and <240,000 Btu/h.  HP.........................  All Other Types of      IEER = 13.3................  January 1, 2023.
                                                                   Heating.               COP = 3.3..................
>=240,000 Btu/h and <760,000 Btu/h.  AC.........................  Electric Resistance     IEER = 13.2................  January 1, 2023.
                                                                   Heating or No Heating.
>=240,000 Btu/h and <760,000 Btu/h.  AC.........................  All Other Types of      IEER = 13.0................  January 1, 2023.
                                                                   Heating.
>=240,000 Btu/h and <760,000 Btu/h.  HP.........................  Electric Resistance     IEER = 12.5................  January 1, 2023.
                                                                   Heating or No Heating. COP = 3.2..................
>=240,000 Btu/h and <760,000 Btu/h.  HP.........................  All Other Types of      IEER = 12.3................  January 1, 2023.
                                                                   Heating.               COP = 3.2..................
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ See section 3 of appendix A to this subpart for the test conditions upon which the COP standards are based.


 Table 2 to Paragraph (b)--Updated Minimum Efficiency Standards for Air-Cooled Commercial Package Air Conditioning and Heating Equipment With a Cooling
                                                     Capacity Greater Than or Equal to 65,000 Btu/h
                                                 [Excluding double-duct air-conditioners and heat pumps]
--------------------------------------------------------------------------------------------------------------------------------------------------------
  Air-Cooled Commercial Package Air Conditioning and Heating Equipment with a Cooling Capacity Greater Than or Equal to 65,000 Btu/h (Excluding Double-
                                                          Duct Air Conditioners and Heat Pumps)
---------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                   Supplementary heating                                  Compliance date:  equipment
          Cooling capacity                   Subcategory                   type                Minimum efficiency        manufactured starting on . . .
--------------------------------------------------------------------------------------------------------------------------------------------------------
>=65,000 Btu/h and <135,000 Btu/h..  AC.........................  Electric Resistance     IVEC = 14.3................  January 1, 2029.
                                                                   Heating or No Heating.
>=65,000 Btu/h and <135,000 Btu/h..  AC.........................  All Other Types of      IVEC = 13.8................  January 1, 2029.
                                                                   Heating.
>=65,000 Btu/h and <135,000 Btu/h..  HP.........................  All Types of Heating..  IVEC = 13.4................  January 1, 2029.
                                                                                          IVHE = 6.2.................
>=135,000 Btu/h and <240,000 Btu/h.  AC.........................  Electric Resistance     IVEC = 13.8................  January 1, 2029.
                                                                   Heating or No Heating.
>=135,000 Btu/h and <240,000 Btu/h.  AC.........................  All Other Types of      IVEC = 13.3................  January 1, 2029.
                                                                   Heating.
>=135,000 Btu/h and <240,000 Btu/h.  HP.........................  All Types of Heating..  IVEC = 13.1................  January 1, 2029.
                                                                                          IVHE = 6.0.................
>=240,000 Btu/h and <760,000 Btu/h.  AC.........................  Electric Resistance     IVEC = 12.9................  January 1, 2029.
                                                                   Heating or No Heating.
>=240,000 Btu/h and <760,000 Btu/h.  AC.........................  All Other Types of      IVEC = 12.2................  January 1, 2029.
                                                                   Heating.
>=240,000 Btu/h and <760,000 Btu/h.  HP.........................  All Types of Heating..  IVEC = 12.1................  January 1, 2029.
                                                                                          IVHE = 5.8.................
--------------------------------------------------------------------------------------------------------------------------------------------------------


[[Page 43786]]


     Table 3 to Paragraph (b)--Minimum Cooling Efficiency Standards for Water-Cooled Commercial Package Air
                                             Conditioning Equipment
----------------------------------------------------------------------------------------------------------------
                           Water-Cooled Commercial Package Air Conditioning Equipment
-----------------------------------------------------------------------------------------------------------------
                                      Supplementary                                 Compliance date: equipment
         Cooling capacity              heating type        Minimum efficiency     manufactured starting on . . .
----------------------------------------------------------------------------------------------------------------
<65,000 Btu/h....................  All................  EER = 12.1..............  October 29, 2003.
>=65,000 Btu/h and <135,000 Btu/h  No Heating or        EER = 12.1..............  June 1, 2013.
                                    Electric
                                    Resistance Heating.
>=65,000 Btu/h and <135,000 Btu/h  All Other Types of   EER = 11.9..............  June 1, 2013.
                                    Heating.
>=135,000 Btu/h and <240,000 Btu/  No Heating or        EER = 12.5..............  June 1, 2014.
 h.                                 Electric
                                    Resistance Heating.
>=135,000 Btu/h and <240,000 Btu/  All Other Types of   EER = 12.3..............  June 1, 2014.
 h.                                 Heating.
>=240,000 Btu/h and <760,000 Btu/  No Heating or        EER = 12.4..............  June 1, 2014.
 h.                                 Electric
                                    Resistance Heating.
>=240,000 Btu/h and <760,000 Btu/  All Other Types of   EER = 12.2..............  June 1, 2014.
 h.                                 Heating.
----------------------------------------------------------------------------------------------------------------


 Table 4 to Paragraph (b)--Minimum Cooling Efficiency Standards for Evaporatively-Cooled Commercial Package Air
                                             Conditioning Equipment
----------------------------------------------------------------------------------------------------------------
                       Evaporatively-Cooled Commercial Package Air Conditioning Equipment
-----------------------------------------------------------------------------------------------------------------
                                      Supplementary                                 Compliance date: equipment
         Cooling capacity              heating type        Minimum efficiency     manufactured starting on . . .
----------------------------------------------------------------------------------------------------------------
<65,000 Btu/h....................  All................  EER = 12.1..............  October 29, 2003.
>=65,000 Btu/h and <135,000 Btu/h  No Heating or        EER = 12.1..............  June 1, 2013.
                                    Electric
                                    Resistance Heating.
>=65,000 Btu/h and <135,000 Btu/h  All Other Types of   EER = 11.9..............  June 1, 2013.
                                    Heating.
>=135,000 Btu/h and <240,000 Btu/  No Heating or        EER = 12.0..............  June 1, 2014.
 h.                                 Electric
                                    Resistance Heating.
>=135,000 Btu/h and <240,000 Btu/  All Other Types of   EER = 11.8..............  June 1, 2014.
 h.                                 Heating.
>=240,000 Btu/h and <760,000 Btu/  No Heating or        EER = 11.9..............  June 1, 2014.
 h.                                 Electric
                                    Resistance Heating.
>=240,000 Btu/h and <760,000 Btu/  All Other Types of   EER = 11.7..............  June 1, 2014.
 h.                                 Heating.
----------------------------------------------------------------------------------------------------------------


                          Table 5 to Paragraph (b)--Minimum Efficiency Standards for Double-Duct Air Conditioners or Heat Pumps
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                       Double-Duct Air Conditioners or Heat Pumps
---------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                   Supplementary heating                                  Compliance date:  equipment
          Cooling capacity                   Subcategory                   type              Minimum efficiency \1\      manufactured starting on . . .
--------------------------------------------------------------------------------------------------------------------------------------------------------
>=65,000 Btu/h and <135,000 Btu/h..  AC.........................  Electric Resistance     EER = 11.2.................  January 1, 2010.
                                                                   Heating or No Heating.
>=65,000 Btu/h and <135,000 Btu/h..  AC.........................  All Other Types of      EER = 11.0.................  January 1, 2010.
                                                                   Heating.
>=65,000 Btu/h and <135,000 Btu/h..  HP.........................  Electric Resistance     EER = 11.0.................  January 1, 2010.
                                                                   Heating or No Heating. COP = 3.3..................
>=65,000 Btu/h and <135,000 Btu/h..  HP.........................  All Other Types of      EER = 10.8.................  January 1, 2010.
                                                                   Heating.               COP = 3.3..................
>=135,000 Btu/h and <240,000 Btu/h.  AC.........................  Electric Resistance     EER = 11.0.................  January 1, 2010.
                                                                   Heating or No Heating.
>=135,000 Btu/h and <240,000 Btu/h.  AC.........................  All Other Types of      EER = 10.8.................  January 1, 2010.
                                                                   Heating.
>=135,000 Btu/h and <240,000 Btu/h.  HP.........................  Electric Resistance     EER = 10.6.................  January 1, 2010.
                                                                   Heating or No Heating. COP = 3.2..................
>=135,000 Btu/h and <240,000 Btu/h.  HP.........................  All Other Types of      EER = 10.4.................  January 1, 2010.
                                                                   Heating.               COP = 3.2..................
>=240,000 Btu/h and <300,000 Btu/h.  AC.........................  Electric Resistance     EER = 10.0.................  January 1, 2010.
                                                                   Heating or No Heating.
>=240,000 Btu/h and <300,000 Btu/h.  AC.........................  All Other Types of      EER = 9.8..................  January 1, 2010.
                                                                   Heating.
>=240,000 Btu/h and <300,000 Btu/h.  HP.........................  Electric Resistance     EER = 9.5..................  January 1, 2010.
                                                                   Heating or No Heating. COP = 3.2..................
>=240,000 Btu/h and <300,000 Btu/h.  HP.........................  All Other Types of      EER = 9.3..................  January 1, 2010.
                                                                   Heating.               COP = 3.2..................
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ See section 3 of appendix A to this subpart for the test conditions upon which the COP standards are based.

    (c) Each water-source heat pump manufactured starting on the 
compliance date listed in table 6 to this paragraph (c) must meet the 
applicable minimum energy efficiency standard level(s) set forth in 
this paragraph (c).

[[Page 43787]]



 Table 6 to Paragraph (c)--Minimum Efficiency Standards for Water-Source
                               Heat Pumps
                       [Water-to-air, water-loop]
------------------------------------------------------------------------
           Water-Source Heat Pumps (Water-to-Air, Water-Loop)
-------------------------------------------------------------------------
                                                        Compliance date:
                                                            equipment
       Cooling capacity           Minimum efficiency      manufactured
                                                         starting on . .
                                                                .
------------------------------------------------------------------------
<17,000 Btu/h.................  EER = 12.2............  October 9, 2015.
                                COP = 4.3.............
>=17,000 Btu/h and <65,000 Btu/ EER = 13.0............  October 9, 2015.
 h.                             COP = 4.3.............
>=65,000 Btu/h and <135,000     EER = 13.0............  October 9, 2015.
 Btu/h.                         COP = 4.3.............
------------------------------------------------------------------------

    (d) Each non-standard size packaged terminal air conditioner (PTAC) 
and packaged terminal heat pump (PTHP) manufactured on or after October 
7, 2010, must meet the applicable minimum energy efficiency standard 
level(s) set forth in table 7 to this paragraph (d). Each standard size 
PTAC manufactured on or after October 8, 2012, and before January 1, 
2017, must meet the applicable minimum energy efficiency standard 
level(s) set forth in table 7. Each standard size PTHP manufactured on 
or after October 8, 2012, must meet the applicable minimum energy 
efficiency standard level(s) set forth in table 7. Each standard size 
PTAC manufactured on or after January 1, 2017, must meet the applicable 
minimum energy efficiency standard level(s) set forth in table 8 to 
this paragraph (d).

                    Table 7 to Paragraph (d)--Minimum Efficiency Standards for PTAC and PTHP
----------------------------------------------------------------------------------------------------------------
                                                                                     Compliance date:  products
     Equipment type           Category        Cooling capacity        Minimum        manufactured on and after .
                                                                     efficiency                  . .
----------------------------------------------------------------------------------------------------------------
PTAC...................  Standard Size.....  <7,000 Btu/h......  EER = 11.7.......  October 8, 2012.\2\
                                             >=7,000 Btu/h and   EER = 13.8-(0.3 x  October 8, 2012.\2\
                                              <=15,000 Btu/h.     Cap \1\).
                                             >15,000 Btu/h.....  EER = 9.3........  October 8, 2012.\2\
                         Non-Standard Size.  <7,000 Btu/h......  EER = 9.4........  October 7, 2010.
                                             >=7,000 Btu/h and   EER = 10.9-(0.213  October 7, 2010.
                                              <=15,000 Btu/h.     x Cap \1\).
                                             >15,000 Btu/h.....  EER = 7.7........  October 7, 2010.
PTHP...................  Standard Size.....  <7,000 Btu/h......  EER = 11.9.......  October 8, 2012.
                                                                 COP = 3.3........
                                             >=7,000 Btu/h and   EER = 14.0-(0.3 x  October 8, 2012.
                                              <=15,000 Btu/h.     Cap \1\).
                                                                 COP = 3.7-(0.052
                                                                  x Cap \1\)..
                                             >15,000 Btu/h.....  EER = 9.5........  October 8, 2012.
                                                                 COP = 2.9........
                         Non-Standard Size.  <7,000 Btu/h......  EER = 9.3........  October 7, 2010.
                                                                 COP = 2.7........
                                             >=7,000 Btu/h and   EER = 10.8-(0.213  October 7, 2010.
                                              <=15,000 Btu/h.     x Cap \1\).
                                                                 COP = 2.9-(0.026
                                                                  x Cap \1\)..
                                             >15,000 Btu/h.....  EER = 7.6........  October 7, 2010.
                                                                 COP = 2.5........
----------------------------------------------------------------------------------------------------------------
\1\ ``Cap'' means cooling capacity in thousand Btu/h at 95 [deg]F outdoor dry-bulb temperature.
\2\ And manufactured before January 1, 2017. See table 8 to this paragraph (d) for updated efficiency standards
  that apply to this category of equipment manufactured on and after January 1, 2017.


                     Table 8 to Paragraph (d)--Updated Minimum Efficiency Standards for PTAC
----------------------------------------------------------------------------------------------------------------
                                                                                     Compliance date:  products
     Equipment type           Category        Cooling capacity        Minimum        manufactured on and after .
                                                                     efficiency                  . .
----------------------------------------------------------------------------------------------------------------
PTAC...................  Standard Size.....  <7,000 Btu/h......  EER = 11.9.......  January 1, 2017.
                                             >=7,000 Btu/h and   EER = 14.0-(0.3 x  January 1, 2017.
                                              <=15,000 Btu/h.     Cap \1\).
                                             >15,000 Btu/h.....  EER = 9.5........  January 1, 2017.
----------------------------------------------------------------------------------------------------------------
\1\ ``Cap'' means cooling capacity in thousand Btu/h at 95 [deg]F outdoor dry-bulb temperature.

    (e)(1) Each single package vertical air conditioner and single 
package vertical heat pump manufactured on or after January 1, 2010, 
but before October 9, 2015 (for models >=65,000 Btu/h and <135,000 Btu/
h), or October 9, 2016 (for models >=135,000 Btu/h and <240,000 Btu/h), 
must meet the applicable minimum energy conservation standard level(s) 
set forth in this paragraph (e)(1).

[[Page 43788]]



   Table 9 to Paragraph (e)(1)--Minimum Efficiency Standards for Single Package Vertical Air Conditioners and
                                       Single Package Vertical Heat Pumps
----------------------------------------------------------------------------------------------------------------
                                                                                            Compliance date:
        Equipment type          Cooling capacity     Subcategory      Efficiency level  products manufactured on
                                                                                             and after . . .
----------------------------------------------------------------------------------------------------------------
Single package vertical air     <65,000 Btu/h...  AC...............  EER = 9.0........  January 1, 2010.
 conditioners and single                          HP...............  EER = 9.0........  January 1, 2010.
 package vertical heat pumps,                                        COP = 3.0........
 single-phase and three-phase.
Single package vertical air     >=65,000 Btu/h    AC...............  EER = 8.9........  January 1, 2010.
 conditioners and single         and <135,000     HP...............  EER = 8.9........  January 1, 2010.
 package vertical heat pumps.    Btu/h.                              COP = 3.0........
Single package vertical air     >=135,000 Btu/h   AC...............  EER = 8.6........  January 1, 2010.
 conditioners and single         and <240,000     HP...............  EER = 8.6........  January 1, 2010.
 package vertical heat pumps.    Btu/h.                              COP = 2.9........
----------------------------------------------------------------------------------------------------------------

    (2) Each single package vertical air conditioner and single package 
vertical heat pump manufactured on and after October 9, 2015 (for 
models >=65,000 Btu/h and <135,000 Btu/h), or October 9, 2016 (for 
models >=135,000 Btu/h and <240,000 Btu/h), but before September 23, 
2019, must meet the applicable minimum energy conservation standard 
level(s) set forth in this paragraph (e)(2).

   Table 10 to Paragraph (e)(2)--Minimum Efficiency Standards for Single Package Vertical Air Conditioners and
                                       Single Package Vertical Heat Pumps
----------------------------------------------------------------------------------------------------------------
                                                                                            Compliance date:
        Equipment type          Cooling capacity     Subcategory      Efficiency level  products manufactured on
                                                                                             and after . . .
----------------------------------------------------------------------------------------------------------------
Single package vertical air     <65,000 Btu/h...  AC...............  EER = 9.0........  January 1, 2010.
 conditioners and single                          HP...............  EER = 9.0........  January 1, 2010.
 package vertical heat pumps,                                        COP = 3.0........
 single-phase and three-phase.
Single package vertical air     >=65,000 Btu/h    AC...............  EER = 10.0.......  October 9, 2015.
 conditioners and single         and <135,000     HP...............  EER = 10.0.......  October 9, 2015.
 package vertical heat pumps.    Btu/h.                              COP = 3.0........
Single package vertical air     >=135,000 Btu/h   AC...............  EER = 10.0.......  October 9, 2016.
 conditioners and single         and <240,000     HP...............  EER = 10.0.......  October 9, 2016.
 package vertical heat pumps.    Btu/h.                              COP = 3.0........
----------------------------------------------------------------------------------------------------------------

    (3) Each single package vertical air conditioner and single package 
vertical heat pump manufactured on and after September 23, 2019, must 
meet the applicable minimum energy conservation standard level(s) set 
forth in this paragraph (e)(3).

 Table 11 to Paragraph (e)(3)--Updated Minimum Efficiency Standards for Single Package Vertical Air Conditioners
                                     and Single Package Vertical Heat Pumps
----------------------------------------------------------------------------------------------------------------
                                                                                            Compliance date:
        Equipment type          Cooling capacity     Subcategory      Efficiency level  products manufactured on
                                                                                             and after . . .
----------------------------------------------------------------------------------------------------------------
Single package vertical air     <65,000 Btu/h...  AC...............  EER = 11.0.......  September 23, 2019.
 conditioners and single                          HP...............  EER = 11.0.......  September 23, 2019.
 package vertical heat pumps,                                        COP = 3.3........
 single-phase and three-phase.
Single package vertical air     >=65,000 Btu/h    AC...............  EER = 10.0.......  October 9, 2015.
 conditioners and single         and <135,000     HP...............  EER = 10.0.......  October 9, 2015.
 package vertical heat pumps.    Btu/h.                              COP = 3.0........
Single package vertical air     >=135,000 Btu/h   AC...............  EER = 10.0.......  October 9, 2016.
 conditioners and single         and <240,000     HP...............  EER = 10.0.......  October 9, 2016.
 package vertical heat pumps.    Btu/h.                              COP = 3.0........
----------------------------------------------------------------------------------------------------------------

    (f)(1) Each computer room air conditioner with a net sensible 
cooling capacity less than 65,000 Btu/h manufactured on or after 
October 29, 2012, and before May 28, 2024 and each computer room air 
conditioner with a net sensible cooling capacity greater than or equal 
to 65,000 Btu/h and less than 760,000 Btu/h manufactured on or after 
October 29, 2013, and before May 28, 2024 must meet the applicable 
minimum energy efficiency standard level(s) set forth in this paragraph 
(f)(1).

[[Page 43789]]



          Table 12 to Paragraph (f)(1)--Minimum Efficiency Standards for Computer Room Air Conditioners
----------------------------------------------------------------------------------------------------------------
                                                                                       Minimum SCOP efficiency
                 Equipment type                     Net sensible cooling capacity   ----------------------------
                                                                                        Downflow        Upflow
----------------------------------------------------------------------------------------------------------------
Air-Cooled.....................................  <65,000 Btu/h.....................            2.20         2.09
                                                 >=65,000 Btu/h and <240,000 Btu/h.            2.10         1.99
                                                 >=240,000 Btu/h and <760,000 Btu/h            1.90         1.79
Water-Cooled...................................  <65,000 Btu/h.....................            2.60         2.49
                                                 >=65,000 Btu/h and <240,000 Btu/h.            2.50         2.39
                                                 >=240,000 Btu/h and <760,000 Btu/h            2.40         2.29
Water-Cooled with Fluid Economizer.............  <65,000 Btu/h.....................            2.55         2.44
                                                 >=65,000 Btu/h and <240,000 Btu/h.            2.45         2.34
                                                 >=240,000 Btu/h and <760,000 Btu/h            2.35         2.24
Glycol-Cooled..................................  <65,000 Btu/h.....................            2.50         2.39
                                                 >=65,000 Btu/h and <240,000 Btu/h.            2.15         2.04
                                                 >=240,000 Btu/h and <760,000 Btu/h            2.10         1.99
Glycol-Cooled with Fluid Economizer............  <65,000 Btu/h.....................            2.45         2.34
                                                 >=65,000 Btu/h and <240,000 Btu/h.            2.10         1.99
                                                 >=240,000 Btu/h and <760,000 Btu/h            2.05         1.94
----------------------------------------------------------------------------------------------------------------

    (2) Each computer room air conditioner manufactured on or after May 
28, 2024, must meet the applicable minimum energy efficiency standard 
level(s) set forth in this paragraph (f)(2).

     Table 13 to Paragraph (f)(2)--Updated Minimum Efficiency Standards for Floor-Mounted Computer Room Air
                                                  Conditioners
----------------------------------------------------------------------------------------------------------------
                                      Downflow and upflow ducted          Upflow non-ducted and horizontal flow
                              ----------------------------------------------------------------------------------
                                                     Minimum NSenCOP                          Minimum NSenCOP
        Equipment type                                 efficiency          Net sensible         efficiency
                                 Net sensible   ------------------------     cooling     -----------------------
                               cooling capacity                Upflow        capacity       Upflow    Horizontal
                                                  Downflow     ducted                     non-ducted     flow
----------------------------------------------------------------------------------------------------------------
Air-Cooled...................  <80,000 Btu/h...        2.70        2.67  <65,000 Btu/h..        2.16        2.65
                               >=80,000 Btu/h          2.58        2.55  >=65,000 Btu/h         2.04        2.55
                                and <295,000                              and <240,000
                                Btu/h.                                    Btu/h.
                               >=295,000 Btu/h         2.36        2.33  >=240,000 Btu/h        1.89        2.47
                                and <930,000                              and <760,000
                                Btu/h.                                    Btu/h.
Air-Cooled with Fluid          <80,000 Btu/h...        2.70        2.67  <65,000 Btu/h..        2.09        2.65
 Economizer.
                               >=80,000 Btu/h          2.58        2.55  >=65,000 Btu/h         1.99        2.55
                                and <295,000                              and <240,000
                                Btu/h.                                    Btu/h.
                               >=295,000 Btu/h         2.36        2.33  >=240,000 Btu/h        1.81        2.47
                                and <930,000                              and <760,000
                                Btu/h.                                    Btu/h.
Water-Cooled.................  <80,000 Btu/h...        2.82        2.79  <65,000 Btu/h..        2.43        2.79
                               >=80,000 Btu/h          2.73        2.70  >=65,000 Btu/h         2.32        2.68
                                and <295,000                              and <240,000
                                Btu/h.                                    Btu/h.
                               >=295,000 Btu/h         2.67        2.64  >=240,000 Btu/h        2.20        2.60
                                and <930,000                              and <760,000
                                Btu/h.                                    Btu/h.
Water-Cooled with Fluid        <80,000 Btu/h...        2.77        2.74  <65,000 Btu/h..        2.35        2.71
 Economizer.
                               >=80,000 Btu/h          2.68        2.65  >=65,000 Btu/h         2.24        2.60
                                and <295,000                              and <240,000
                                Btu/h.                                    Btu/h.
                               >=295,000 Btu/h         2.61        2.58  >=240,000 Btu/h        2.12        2.54
                                and <930,000                              and <760,000
                                Btu/h.                                    Btu/h.
Glycol-Cooled................  <80,000 Btu/h...        2.56        2.53  <65,000 Btu/h..        2.08        2.48
                               >=80,000 Btu/h          2.24        2.21  >=65,000 Btu/h         1.90        2.18
                                and <295,000                              and <240,000
                                Btu/h.                                    Btu/h.
                               >=295,000 Btu/h         2.21        2.18  >=240,000 Btu/h        1.81        2.18
                                and <930,000                              and <760,000
                                Btu/h.                                    Btu/h.
Glycol-Cooled with Fluid       <80,000 Btu/h...        2.51        2.48  <65,000 Btu/h..        2.00        2.44
 Economizer.
                               >=80,000 Btu/h          2.19        2.16  >=65,000 Btu/h         1.82        2.10
                                and <295,000                              and <240,000
                                Btu/h.                                    Btu/h.
                               >=295,000 Btu/h         2.15        2.12  >=240,000 Btu/h        1.73        2.10
                                and <930,000                              and <760,000
                                Btu/h.                                    Btu/h.
----------------------------------------------------------------------------------------------------------------


  Table 14 to Paragraph (f)(2)--Minimum Efficiency Standards for Ceiling-Mounted Computer Room Air Conditioners
----------------------------------------------------------------------------------------------------------------
                                                                                       Minimum SCOP efficiency
                 Equipment type                     Net sensible cooling capacity   ----------------------------
                                                                                         Ducted       Non-ducted
----------------------------------------------------------------------------------------------------------------
Air-Cooled with Free Air Discharge Condenser...  <29,000 Btu/h.....................            2.05         2.08
                                                 >=29,000 Btu/h and <65,000 Btu/h..            2.02         2.05
                                                 >=65,000 Btu/h and <760,000 Btu/h.            1.92         1.94
Air-Cooled with Free Air Discharge Condenser     <29,000 Btu/h.....................            2.01         2.04
 and Fluid Economizer.
                                                 >=29,000 Btu/h and <65,000 Btu/h..            1.97            2
                                                 >=65,000 Btu/h and <760,000 Btu/h.            1.87         1.89
Air-Cooled with Ducted Condenser...............  <29,000 Btu/h.....................            1.86         1.89

[[Page 43790]]

 
                                                 >=29,000 Btu/h and <65,000 Btu/h..            1.83         1.86
                                                 >=65,000 Btu/h and <760,000 Btu/h.            1.73         1.75
Air-Cooled with Fluid Economizer and Ducted      <29,000 Btu/h.....................            1.82         1.85
 Condenser.
                                                 >=29,000 Btu/h and <65,000 Btu/h..            1.78         1.81
                                                 >=65,000 Btu/h and <760,000 Btu/h.            1.68          1.7
Water-Cooled...................................  <29,000 Btu/h.....................            2.38         2.41
                                                 >=29,000 Btu/h and <65,000 Btu/h..            2.28         2.31
                                                 >=65,000 Btu/h and <760,000 Btu/h.            2.18          2.2
Water-Cooled with Fluid Economizer.............  <29,000 Btu/h.....................            2.33         2.36
                                                 >=29,000 Btu/h and <65,000 Btu/h..            2.23         2.26
                                                 >=65,000 Btu/h and <760,000 Btu/h.            2.13         2.16
Glycol-Cooled..................................  <29,000 Btu/h.....................            1.97            2
                                                 >=29,000 Btu/h and <65,000 Btu/h..            1.93         1.98
                                                 >=65,000 Btu/h and <760,000 Btu/h.            1.78         1.81
Glycol-Cooled with Fluid Economizer............  <29,000 Btu/h.....................            1.92         1.95
                                                 >=29,000 Btu/h and <65,000 Btu/h..            1.88         1.93
                                                 >=65,000 Btu/h and <760,000 Btu/h.            1.73         1.76
----------------------------------------------------------------------------------------------------------------

    (g)(1) Each variable refrigerant flow air conditioner or heat pump 
manufactured on or after the compliance date listed in table 15 to this 
paragraph (g)(1) and prior to January 1, 2024, must meet the applicable 
minimum energy efficiency standard level(s) set forth in this paragraph 
(g)(1).

          Table 15 to Paragraph (g)(1)--Minimum Efficiency Standards for Variable Refrigerant Flow Multi-Split Air Conditioners and Heat Pumps
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                           Compliance date: equipment
          Equipment type               Cooling capacity       Heating type \1\              Efficiency level             manufactured on and after . . .
--------------------------------------------------------------------------------------------------------------------------------------------------------
VRF Multi-Split Air Conditioners    >=65,000 Btu/h and     No Heating or          11.2 EER............................  January 1, 2010.
 (Air-Cooled).                       <135,000 Btu/h.        Electric Resistance
                                                            Heating.
                                                           All Other Types of     11.0 EER............................  January 1, 2010.
                                                            Heating.
                                    >=135,000 Btu/h and    No Heating or          11.0 EER............................  January 1, 2010.
                                     <240,000 Btu/h.        Electric Resistance
                                                            Heating.
                                                           All Other Types of     10.8 EER............................  January 1, 2010.
                                                            Heating.
                                    >=240,000 Btu/h and    No Heating or          10.0 EER............................  January 1, 2010.
                                     <760,000 Btu/h.        Electric Resistance
                                                            Heating.
                                                           All Other Types of     9.8 EER.............................  January 1, 2010.
                                                            Heating.
VRF Multi-Split Heat Pumps (Air-    >=65,000 Btu/h and     No Heating or          11.0 EER, 3.3 COP...................  January 1, 2010.
 Cooled).                            <135,000 Btu/h.        Electric Resistance
                                                            Heating.
                                                           All Other Types of     10.8 EER, 3.3 COP...................  January 1, 2010.
                                                            Heating.
                                    >=135,000 Btu/h and    No Heating or          10.6 EER, 3.2 COP...................  January 1, 2010.
                                     <240,000 Btu/h.        Electric Resistance
                                                            Heating.
                                                           All Other Types of     10.4 EER, 3.2 COP...................  January 1, 2010.
                                                            Heating.
                                    >=240,000 Btu/h and    No Heating or          9.5 EER, 3.2 COP....................  January 1, 2010.
                                     <760,000 Btu/h.        Electric Resistance
                                                            Heating.
                                                           All Other Types of     9.3 EER, 3.2 COP....................  January 1, 2010.
                                                            Heating.
VRF Multi-Split Heat Pumps (Water-  <17,000 Btu/h........  Without Heat Recovery  12.0 EER............................  October 29, 2012.
 Source).                                                                         4.2 COP.............................  October 29, 2003.
                                                           With Heat Recovery...  11.8 EER............................  October 29, 2012.
                                                                                  4.2 COP.............................  October 29, 2003.
                                    >=17,000 Btu/h and     All..................  12.0 EER, 4.2 COP...................  October 29, 2003.
                                     <65,000 Btu/h.
                                    >=65,000 Btu/h and     All..................  12.0 EER, 4.2 COP...................  October 29, 2003.
                                     <135,000 Btu/h.
                                    >=135,000 Btu/h and    Without Heat Recovery  10.0 EER, 3.9 COP...................  October 29, 2013.
                                     <760,000 Btu/h.
                                                           With Heat Recovery...  9.8 EER, 3.9 COP....................  October 29, 2013.
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ VRF multi-split heat pumps (air-cooled) with heat recovery fall under the category of ``All Other Types of Heating'' unless they also have electric
  resistance heating, in which case it falls under the category for ``No Heating or Electric Resistance Heating.''

    (2) Each variable refrigerant flow air conditioner or heat pump 
(except air-cooled systems with cooling capacity less than 65,000 Btu/
h) manufactured on or after January 1, 2024, must meet the applicable 
minimum energy efficiency standard level(s) set forth in this paragraph 
(g)(2).

[[Page 43791]]



Table 16 to Paragraph (g)(2)--Updated Minimum Efficiency Standards for Variable Refrigerant Flow Multi-Split Air
                                           Conditioners and Heat Pumps
----------------------------------------------------------------------------------------------------------------
        Equipment type          Size category                Heating type                  Minimum efficiency
----------------------------------------------------------------------------------------------------------------
VRF Multi-Split Air            >=65,000 and     All..................................  15.5 IEER.
 Conditioners (Air-Cooled).     <135,000 Btu/h.
                               >=135,000 and    All..................................  14.9 IEER.
                                <240,000 Btu/h.
                               >=240,000 Btu/h  All..................................  13.9 IEER.
                                and <760,000
                                Btu/h.
VRF Multi-Split Heat Pumps     >=65,000 and     Heat Pump without Heat Recovery......  14.6 IEER, 3.3 COP.
 (Air-Cooled).                  <135,000 Btu/h.
                                                Heat Pump with Heat Recovery.........  14.4 IEER, 3.3 COP.
                               >=135,000 and    Heat Pump without Heat Recovery......  13.9 IEER, 3.2 COP.
                                <240,000 Btu/h. Heat Pump with Heat Recovery.........  13.7 IEER, 3.2 COP.
                               >=240,000 Btu/h  Heat Pump without Heat Recovery......  12.7 IEER, 3.2 COP.
                                and <760,000    Heat Pump with Heat Recovery.........  12.5 IEER, 3.2 COP.
                                Btu/h.
VRF Multi-Split Heat Pumps     <65,000 Btu/h..  Heat Pump without Heat Recovery......  16.0 IEER, 4.3 COP.
 (Water-Source).                                Heat Pump with Heat Recovery.........  15.8 IEER, 4.3 COP.
                               >=65,000 and     Heat Pump without Heat Recovery......  16.0 IEER, 4.3 COP.
                                <135,000 Btu/h. Heat Pump with Heat Recovery.........  15.8 IEER, 4.3 COP.
                               >=135,000 and    Heat Pump without Heat Recovery......  14.0 IEER, 4.0 COP.
                                <240,000 Btu/h. Heat Pump with Heat Recovery.........  13.8 IEER, 4.0 COP.
                               >=240,000 Btu/h  Heat Pump without Heat Recovery......  12.0 IEER, 3.9 COP.
                                and <760,000    Heat Pump with Heat Recovery.........  11.8 IEER, 3.9 COP.
                                Btu/h.
----------------------------------------------------------------------------------------------------------------

    (h) Each direct expansion-dedicated outdoor air system manufactured 
on or after the compliance date listed in table 17 to this paragraph 
(h) must meet the applicable minimum energy efficiency standard 
level(s) set forth in this paragraph (h).

   Table 17 to Paragraph (h)--Minimum Efficiency Standards for Direct Expansion-Dedicated Outdoor Air Systems
----------------------------------------------------------------------------------------------------------------
                                                                                      Compliance date: equipment
        Equipment category              Subcategory           Efficiency level        manufactured starting on .
                                                                                                 . .
----------------------------------------------------------------------------------------------------------------
Direct expansion-dedicated         (AC)--Air-cooled      ISMRE2 = 3.8..............  May 1, 2024.
 outdoor air systems.               without ventilation
                                    energy recovery
                                    systems.
                                   (AC w/VERS)--Air-     ISMRE2 = 5.0..............  May 1, 2024.
                                    cooled with
                                    ventilation energy
                                    recovery systems.
                                   (ASHP)--Air-source    ISMRE2 = 3.8..............  May 1, 2024.
                                    heat pumps without   ISCOP2 = 2.05.............
                                    ventilation energy
                                    recovery systems.
                                   (ASHP w/VERS)--Air-   ISMRE2 = 5.0..............  May 1, 2024.
                                    source heat pumps    ISCOP2 = 3.20.............
                                    with ventilation
                                    energy recovery
                                    systems.
                                   (WC)--Water-cooled    ISMRE2 = 4.7..............  May 1, 2024.
                                    without ventilation
                                    energy recovery
                                    systems.
                                   (WC w/VERS)--Water-   ISMRE2 = 5.1..............  May 1, 2024.
                                    cooled with
                                    ventilation energy
                                    recovery systems.
                                   (WSHP)--Water-source  ISMRE2 = 3.8..............  May 1, 2024.
                                    heat pumps without   ISCOP2 = 2.13.............
                                    ventilation energy
                                    recovery systems.
                                   (WSHP w/VERS)--Water- ISMRE2 = 4.6..............  May 1, 2024.
                                    source heat pumps    ISCOP2 = 4.04.............
                                    with ventilation
                                    energy recovery
                                    systems.
----------------------------------------------------------------------------------------------------------------

    (i) Air-cooled, three-phase, commercial package air conditioning 
and heating equipment with a cooling capacity of less than 65,000 Btu/h 
and air-cooled, three-phase variable refrigerant flow multi-split air 
conditioning and heating equipment with a cooling capacity of less than 
65,000 Btu/h manufactured on or after the compliance date listed in 
tables 18 and 19 to this paragraph (i) must meet the applicable minimum 
energy efficiency standard level(s) set forth in this paragraph (i).

   Table 18 to Paragraph (i)--Minimum Efficiency Standards for Air-Cooled, Three-Phase, Commercial Package Air
   Conditioning and Heating Equipment With a Cooling Capacity of Less Than 65,000 Btu/h and Air-Cooled, Three-
    Phase, Small Variable Refrigerant Flow Multi-Split Air Conditioning and Heating Equipment With a Cooling
                                       Capacity of Less Than 65,000 Btu/h
----------------------------------------------------------------------------------------------------------------
                                                                                            Compliance date:
        Equipment type           Cooling capacity     Subcategory          Minimum       equipment manufactured
                                                                         efficiency         starting on . . .
----------------------------------------------------------------------------------------------------------------
Commercial Package Air          <65,000 Btu/h....  Split-System.....  13.0 SEER.......  June 16, 2008.\1\
 Conditioning Equipment.
Commercial Package Air          <65,000 Btu/h....  Single-Package...  14.0 SEER.......  January 1, 2017.\1\
 Conditioning Equipment.
Commercial Package Air          <65,000 Btu/h....  Split-System.....  14.0 SEER; 8.2    January 1, 2017.\1\
 Conditioning and Heating                                              HSPF.
 Equipment.
Commercial Package Air          <65,000 Btu/h....  Single-Package...  14.0 SEER; 8.0    January 1, 2017.\1\
 Conditioning and Heating                                              HSPF.
 Equipment.
VRF Air Conditioners..........  <65,000 Btu/h....  .................  13.0 SEER.......  June 16, 2008.\1\
VRF Heat Pumps................  <65,000 Btu/h....  .................  13.0 SEER; 7.7    June 16, 2008.\1\
                                                                       HSPF.
----------------------------------------------------------------------------------------------------------------
\1\ And manufactured before January 1, 2025. For equipment manufactured on or after January 1, 2025, see table
  19 to this paragraph (i) for updated efficiency standards.


[[Page 43792]]


 Table 19 to Paragraph (i)--Updated Minimum Efficiency Standards for Air-Cooled, Three-Phase, Commercial Package
 Air Conditioning and Heating Equipment With a Cooling Capacity of Less Than 65,000 Btu/h and Air-Cooled, Three-
    Phase, Small Variable Refrigerant Flow Multi-Split Air Conditioning and Heating Equipment With a Cooling
                                       Capacity of Less Than 65,000 Btu/h
----------------------------------------------------------------------------------------------------------------
                                                                                            Compliance date:
        Equipment type           Cooling capacity     Subcategory          Minimum       equipment manufactured
                                                                         efficiency         starting on . . .
----------------------------------------------------------------------------------------------------------------
Commercial Package Air          <65,000 Btu/h....  Split-System.....  13.4 SEER2......  January 1, 2025.
 Conditioning Equipment.
Commercial Package Air          <65,000 Btu/h....  Single-Package...  13.4 SEER2......  January 1, 2025.
 Conditioning Equipment.
Commercial Package Air          <65,000 Btu/h....  Split-System.....  14.3 SEER2; 7.5   January 1, 2025.
 Conditioning and Heating                                              HSPF2.
 Equipment.
Commercial Package Air          <65,000 Btu/h....  Single-Package...  13.4 SEER2; 6.7   January 1, 2025.
 Conditioning and Heating                                              HSPF2.
 Equipment.
Space-Constrained Commercial    <=30,000 Btu/h...  Split-System.....  12.7 SEER2......  January 1, 2025.
 Package Air Conditioning
 Equipment.
Space-Constrained Commercial    <=30,000 Btu/h...  Single-Package...  13.9 SEER2......  January 1, 2025.
 Package Air Conditioning
 Equipment.
Space-Constrained Commercial    <=30,000 Btu/h...  Split-System.....  13.9 SEER2; 7.0   January 1, 2025.
 Package Air Conditioning and                                          HSPF2.
 Heating Equipment.
Space-Constrained Commercial    <=30,000 Btu/h...  Single-Package...  13.9 SEER2; 6.7   January 1, 2025.
 Package Air Conditioning and                                          HSPF2.
 Heating Equipment.
Small-Duct, High-Velocity       <65,000 Btu/h....  Split-System.....  13.0 SEER2......  January 1, 2025.
 Commercial Package Air
 Conditioning.
Small-Duct, High-Velocity       <65,000 Btu/h....  Split-System.....  14.0 SEER2; 6.9   January 1, 2025.
 Commercial Package Air                                                HSPF2.
 Conditioning and Heating
 Equipment.
VRF Air Conditioners..........  <65,000 Btu/h....  .................  13.4 SEER2......  January 1, 2025.
VRF Heat Pumps................  <65,000 Btu/h....  .................  13.4 SEER2; 7.5   January 1, 2025.
                                                                       HSPF2.
----------------------------------------------------------------------------------------------------------------

[FR Doc. 2024-08545 Filed 5-17-24; 8:45 am]
BILLING CODE 6450-01-P