CHAPTER 1. INTRODUCTION

TABLE OF CONTENTS

1.1 PURPOSE OF THE DOCUMENT

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- 1 1.2 PROCESS FOR AMENDED ENERGY CONSERVATION STANDARDS FOR ASHRAE EQUIPMENT

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- 1 1.3 STRUCTURE OF THIS DOCUMENT

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- iCHAPTER 1. INTRODUCTION

1.1 PURPOSE OF THE DOCUMENT

This technical support document (TSD) is a stand

- alone report that documents the technical analyses and results supporting the information presented in the Notice of Proposed Rulemaking (NOPR) for establishing amended energy conservation standards for certain commercial and industrial equipment covered by the American National Standards Institute (ANSI)/ American S ociety of Heating, Refrigerating and Air

- Conditioning Engineers (ASHRAE)/ Illuminating Engineering Society of Nort h America (IESNA) Standard 90.1 2013 Energy Standard for Buildings Except Low

- Rise Residential Buildings (ASHRAE Standard 90.1 2013 ).

1.2 PROCESS FOR AMENDED ENERGY CONSERVATION STANDARDS FOR ASHRAE EQUIPMENT

Title III of the Energy Policy and Conservation Act (EPCA), Pub. L. 94

- 163, as amended, sets forth a variety of provisions concerning energy efficiency. Part C 1 of Title III created the energy conservation program for “Certain Industrial Equipment.” (42 U.S.C. 6311

- 6317)

. Of particular relevance for this rulemaking is 42 U.S.C 6313(a)(6) which directs DOE, in the event that ASHRAE Standard 90.1 is amended for a c ertain type of commercial and industrial equipment, to adopt that efficiency level unless clear and convincing evidence supports a determination that adopting a more stringent level would produce significant additional energy savings and is technologically feasible and economically justified.

On October 9, 201 3 , American Society of Heating, Refrigeration and Air

- Conditioning Engineers (ASHRAE) officially released the ANSI/ASHRAE/IESNA Standard 90.1

- 201 3 (hereinafter referred to as ASHRAE Standard 90.1

- 201 3 ), which addressed efficiency levels for certain categories of commercial heating, ventilating , and air

- conditioning (HVAC) and water heating equipment covered by EPCA. The new ASHRAE Standard 90.1 revised the efficiency levels of the previous ASHRAE Stan dard 90.1

- 20 10 for certain equipment, including s mall three

- phase commercial air

- cooled air conditioners (single package only) and heat pumps (single package and split system) less than 65,000 Btu/h ; water

- source heat pumps ; oil

- fired storage water heaters ; single package vertical units; and packaged terminal air conditioners

.

P ursuant to the EISA 2007 amendments to EPCA, under 42 U.S.C. 6313(a)(6)(C), the agency must periodically review its already

- established energy conservation standards for ASHRAE eq uipment. In December 2012, this provision was further amended by the American

1 This Part was subsequently redesignated as Part A

- 1 for editorial reasons after Part C of Title III of EPCA was repealed by Pub. L. 109

- 58.
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- 1Energy Manufacturing Technical Corrections Act (AEMTCA) to clarify that DOE’s periodic review of ASHRAE equipment must occur “[e]very six years.” (42 U.S.C. 6313(a)(6)(C)(i)) D OE was triggered by ASHRAE for 3

- phase air

- cooled single package air conditioners less than 65,000 Btu/h, but not the split system variant, even though both types of units were included in a
more comp rehensive DOE equipment class. DOE is acting to prevent confusion by proposing to

re

- create separate product classes for the two types of systems, and DOE has decided to now consider amended standards for 3

- phase air

- cooled split system air conditioners less than 65,000 Btu/h under this 6

- year lookback authorit y.
EPCA also requires DOE to amend the test procedures for certain ASHRAE equipment , which manufacturers are required to use in order to certify compliance with energy conservation standards mandated under EPCA, to be consistent with the amended industr y test procedure in ASHRAE Standard 90.1 unless clear and convincing evidence suggests that the test procedure does not reflect the energy efficiency, energy use, and estimated operating costs of the equipment and is unduly burdensome to conduct (42 U.S.C 6314(a)(2)

- (4)). Additionally, EISA 2007 amended EPCA to require that at least once every 7 years, DOE must conduct an evaluation of the test procedures for all covered equipment and either amend test procedures (if the Secretary determines that amended te st procedures would more accurately or fully comply with the requirements of 42 U.S.C. 6314(a)(2)

- (3)) or publish notice in the Federal Register of any determination not to amend a test procedure. (42 U.S.C. 6314(a)(1)(A))

D OE has already amended its test procedures to adopt most changes in industry test procedures specified by ASHRAE 90.1

- 2013 th at affect DOE’s test procedures. However, DOE is proposing to incorporate by reference ANSI (American National Standards Institute) Z21.47

- 2012, Standard for Gas

- Fired Central Furnace , for its commercial warm

- air furnace test procedure as specified by ASHRAE 90.1

- 2013

. In addition, DOE is proposing to update the citations and incorporations by reference in DOE’s regulations for commer cial warm

- air furnaces to the most recent version of ASHRAE 103

- 2007, Method of Testing for Annual Fuel Utilization Efficiency of Residential Central Furnaces and Boiler

, under the 7 year look back.

On April 11 , 201 4 , DOE published a notice of data availa bility ( April 2014 NODA) and request for public comment in the Federal Register as a preliminary step pursuant to EPCA’s requirements for DOE to consider amended energy conservation standards for certain types of commercial equipment covered by ASHRAE Stan dard 90.1. 7 9 FR 20114 . Specifically, the April 2014 NODA presented for public comment DOE’s analysis of the potential energy savings estimates for amended national energy conservation standards for types of commercial equipment based on: (1) the modified efficiency levels contained within ASHRAE Standard 90.1

- 201 3 ; and (2) more

- stringent efficiency levels. DOE has described these analyses and preliminary conclusions and sought input from interested parties, including the submission of data and other releva nt information

.

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- 2After receiving public comment on the April 2014 NODA, DOE revised its analysis for certain of the ASHRAE equipment under review ( i.e., small three

- phase commercial air

- cooled air conditioners and heat pumps with less than 65,000 Btu/h coo ling capacity and water

- source heat pumps with less than 135,000 Btu/h cooling capacity ). For oil

- fired storage water heaters , DOE determined that the potential for energy savings from adopting more

- stringent levels than the ASHRAE Standard 90.1 levels was not significant, and, thus, DOE is proposing to adopt the ASHRAE Standard 90.1 levels without further analysis. For single package vertical units and packaged terminal air conditioners, DOE is perfo rming economic analyses in separate rulemakings that were previously ongoing. 2

The revised assumptions and analysis results for small three

- phase commercial air cooled air conditioners and heat pumps and water

- source heat pumps are present ed in this TSD. In the NODA, DOE did not conduct analysis on split system air conditioners because ASHRAE did not propose more stringent standards for that equipment. After reviewing comments in response to the NODA, DOE has decided to review split system ai r conditioners under the 6 year look back

. Therefore this TSD also includes assumption and analysis results for split system air conditioners. For all equipment classes of small three

- phase commercial air

- cooled air conditioners and heat pumps with less th an 65,000 Btu/h cooling capacity and water

- source heat
pumps , DOE also conducted several additional analyses in preparation for publishing this notice of proposed rulemaking (NOPR) and TSD for the ASHRAE equipment under review . A list of the analyses and the corresponding c hapter number is presented in the next section.

1.3 STRUCTURE OF THIS DOCUMENT

This NO PR TSD outlines the analytical approaches used in this rulemaking and presents the analysis results . The TSD consists of 11 chapters with appendices :
Chapter 1 Introduction: Provides an overview of the process to amend energy conservation standards for ASHRAE equipment and outlines the structure of the document.

Chapter 2 Market Assessment: Characterizes the market for small three

- phase commercial air

- cooled air conditioners and heat pumps, and water

source heat pumps

.

2 See Packaged Terminal Air Condition ers and Heat Pumps Standards Rulemaking webpage: www1.eere.energy.gov/buildings/appliance_standards/rulemaking.aspx/ruleid/64 a nd Single Package Vertical Ai r Conditioners and Heat Pumps Standards Rulemaking webpage : www1.eere.energy.gov/buildings/appliance_standards/rulemaking.aspx?ruleid=107

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- 3Chapter 3 Engineering Analysis: Discusses the methods used for developing the manufacturer cost

- efficiency relationship for small three

- phase commercial air

- cooled air conditioners and heat pumps, and water

source heat pumps

. Chapter 4 Energy Use Analysis : Discusses the process used for generating energy use estimates for small three

- phase commercial air

- cooled air conditioners and heat pumps, and water

- source heat pumps a t the consider ed efficiency levels

. Chapter 5 Markups for Product Price Determination : Discusses the methods used for establishing markups for converting manufacturer prices to customer equipment prices

Appendix 5A Detailed Data for Equipment Price Markups

Chapter 6 Life

- Cycle Cost and Payback Period Analysi s: Discusses the economic effects of standards on commercial customers and users of the equipment and compares the LCC and PBP of equipment with and without higher efficiency standards.

Chapter 7 Shipments: Discus ses the methods used for projecting shipments with and without higher efficiency standards.

Chapter 8 National Impact Analysis: Discusses the methods used for project ing national energy savings and national economic impacts based on annual equipment shipm ents and estimates of future equipment efficiency distributions in the absence and presence of higher energy efficiency standards.

Appendix 8A Full Fuel Cycle

Appendix 8B National Net Present Value of Customer Benefits Using Alternative Equipment Price Projections and Economic Growth Scenarios

Chapter 9 Emissions Analysis : Discusses the environmental effect of amended energy conservation standards, including the impact on emissions of six pollutants or greenhouse gases: sulfur dioxide (SO2), nitrogen ox ides (NOx), carbon dioxide (CO2), mercury (Hg), methane (CH4), and nitrous oxide (N2O).

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- 4Chapter 10 Monetization of Emission Reductions Benefits : Discusses the monetization of reductions in CO 2 and NO X emissions.

Appendix 10A Social Cost of Carbon for Regulatory Impact Analysis Under Executive Order 12866

Appendix 10B Technical Update of Social Cost of Carbon for Regulatory Impact Analysis Under Executive Order 12866

Chapter 11 Utility Impact Analysis: Discusses the effects o f standards on the installed generation capacity of electric utilities

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