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

SUPPLEMENTARY INFORMATION:

Table of Contents

I. Authority

II. Air-Cooled Commercial Unitary Air Conditioners and Heat Pumps Direct Final Rule

A. Background

III. Comments on the Direct Final Rule

A. General Comments

B. Certification

IV. Impact of Any Lessening of Competition

V. Conclusion

I. Authority

The Energy Policy and Conservation Act, Public Law 94-163, as amended (“EPCA”), authorizes DOE to issue a direct final rule establishing an energy conservation standard for covered equipment 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 equipment, States, and efficiency advocates), as determined by the Secretary of Energy (“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) or 42 U.S.C. 6313(a)(6)(B), as applicable. (42 U.S.C. 6316(b)(1); 42 U.S.C. 6295(p)(4))

The direct final rule must be published simultaneously with a notice of proposed rulemaking (“NOPR”) that proposes an energy or water conservation standard that is identical to the standard established in 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)) Not later than 120 days after issuance of the direct final rule, DOE shall withdraw the direct final rule if: (1) DOE receives one or more adverse public comments relating to the direct final rule or any alternative joint recommendation; and (2) based on the rulemaking record relating to the direct final rule, DOE determines that such adverse public comments or alternative joint recommendation may provide a reasonable basis for withdrawing the direct final rule. (42 U.S.C. 6316(b)(1); 42 U.S.C. 6295(p)(4)(C)) If DOE makes such a determination, DOE must proceed with the NOPR published simultaneously with the direct final rule and publish in the Federal Register the reasons why the direct final rule was withdrawn. ( Id.)

After review of comments received, DOE has determined that it did not receive any adverse comments providing a basis for withdrawal described above for the direct final rule that is the subject of this document. As such, DOE did not withdraw this direct final rule and allowed it to become effective. Although not required under EPCA, where DOE does not withdraw a direct final rule, DOE customarily publishes a summary of the comments received during the 110-day comment period and its responses to those comments. This document contains such a summary, as well as DOE's responses to the comments.

II. Air-Cooled Commercial Unitary Air Conditioners and Heat Pumps Direct Final Rule

A. Background

Small, large, and very large commercial package air conditioning and heating equipment are covered equipment under EPCA. (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 and less than 760,000 Btu/h (“ACUACs”) and air-cooled commercial unitary heat pumps with a rated cooling capacity greater than or equal to 65,000 Btu/h and less than 760,000 Btu/h (“ACUHPs”) (excluding double-duct air conditioners and heat pumps), which are the subject of this rulemaking.

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 title 10 of the Code of Federal Regulations (“CFR”) section 431.97(b).

DOE's current energy conservation standards are expressed in terms of integrated energy efficiency ratio (“IEER”) for the cooling efficiency of ACUACs and ACUHPs, and in terms of coefficient of performance (“COP”) for the heating efficiency of ACUHPs. ( See10 CFR 431.97(b)) To demonstrate compliance with the current energy conservation standards, manufacturers must use the test procedure provided at 10 CFR part 431, subpart F, appendix A (“appendix A”), Uniform Test Method for the Measurement of Energy Consumption of Commercial Package Air Conditioning and Heating Equipment (Excluding Air-Cooled Equipment With a Cooling Capacity Less Than 65,000 Btu/h).

Since publication of the January 2016 Direct Final Rule, the American Society of Heating, Refrigerating, and Air-Conditioning Engineers (“ASHRAE”) published an updated version of ASHRAE Standard 90.1 (“ASHRAE Standard 90.1-2016”), which updated the minimum efficiency levels for ACUACs and ACUHPs to align with the first tier of minimum efficiencies adopted by DOE in the January 2016 Direct Final Rule (which had a compliance date of January 1, 2018). ASHRAE subsequently published another updated version of ASHRAE Standard 90.1 (“ASHRAE Standard 90.1-2019”), which updated the minimum efficiency levels for ACUACs and ACUHPs to align with both tiers 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).

On May 12, 2020, DOE began its six-year-lookback review for ACUACs and ACUHPs by publishing in the Federal Register an energy conservation standards (“ECS”) request for information (“RFI”) (referred to hereafter as the “May 2020 ECS RFI”). 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 a test procedure and energy conservation notice RFI (referred to hereafter as the “May 2022 TP/ECS RFI”) in the Federal Register on May 25, 2022, to investigate additional aspects of the ACUAC and ACUHP test procedure and energy conservation standards. 87 FR 31743.

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 Appliance Standards and Rulemaking Federal Advisory Committee (“ASRAC”) established the ASRAC ACUAC/HP Working Group (hereinafter referred to as “the ACUAC/HP Working Group”) 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 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: integrated ventilation, economizing, and cooling (“IVEC”) and integrated ventilation and heating efficiency (“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 ACUACs and ACUHPs. On May 1, 2023, the ACUAC/HP Working Group signed a term sheet (“ACUAC/HP Working Group ECS Term Sheet”) outlining its recommendations regarding ACUAC and ACUHP standards in terms of the new efficiency metrics, IVEC and IVHE, which ASRAC approved on October 17, 2023.

DOE determined that the ACUAC/ACUHP Working Group statement containing recommendations with respect to energy conservation standards for ACUACs and ACUHPs were in accordance with the statutory requirements of 42 U.S.C. 6295(p)(4)(A); 42 U.S.C. 6316(b)(1) for the issuance of a direct final rule and published a direct final rule in the Federal Register on May 20, 2024 (“May 2024 Direct Final Rule”). 89 FR 44052, 44064-44065. DOE simultaneously published a final rule in the Federal Register amending the current test procedure, Appendix A, to incorporate by reference the most recent version of the industry test procedure, AHRI 340/360-2022, for ACUACs, ACUHPs, evaporatively-cooled commercial unitary air conditioners (“ECUACs”), and water-cooled commercial unitary air conditioners (“WCAUCs”) and establishing a new test procedure appendix A1 to subpart F of 10 CFR 431.96 (“appendix A1”) referencing a new industry test procedure, AHRI 1340-2023, for any standards denominated in terms of IVEC and IVHE. (“May 2024 TP Final Rule”). 89 FR 43986 (May 20, 2024). Accordingly, DOE adopted the recommended efficiency levels for ACUACs and ACUHPs as the amended standard levels in the May 2024 Direct Final Rule. 89 FR 44052, 44135 (May 20, 2024).

The standards adopted in the May 2024 Direct Final Rule apply to the equipment classes listed in table II.1 and that are manufactured in, or imported into, the United States starting on January 1, 2029. The May 2024 Direct Final Rule provides a detailed discussion of DOE's analysis of the benefits and burdens of the amended standards pursuant to the criteria set forth in EPCA. Id. at 89 FR 44124-44134.