CHAPTER 1. INTRODUCTION

TABLE OF CONTENTS

1.1 PURPOSE OF THE DOCUMENT ................................................................................. 1-1

1.2 PROCESS FOR AMENDED ENERGY CONSERVATION STANDARDS FOR 

ASHRAE EQUIPMENT ................................................................................................. 1-1

1.3 STRUCTURE OF THIS DOCUMENT .......................................................................... 1-3

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CHAPTER 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 Society of Heating, Refrigerating and Air-Conditioning Engineers 

(ASHRAE)/ Illuminating Engineering Society of North 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 C1 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 certain 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, 2013, American Society of Heating, Refrigeration and Air-Conditioning 

Engineers (ASHRAE) officially released the ANSI/ASHRAE/IESNA Standard 90.1-2013

(hereinafter referred to as ASHRAE Standard 90.1-2013), 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 Standard 90.1-2010 for certain equipment, including small 

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. 

Pursuant 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 equipment. 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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Energy 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))

DOE 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 comprehensive 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 authority. 

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 industry 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 test 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))

DOE has already amended its test procedures to adopt most changes in industry test 

procedures specified by ASHRAE 90.1-2013 that 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 commercial 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, 2014, DOE published a notice of data availability (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 Standard 90.1. 79 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 

90.1-2013; 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 relevant information.

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After 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 cooling 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 performing 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 presented 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 air 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 than 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 chapter number is presented in the next section.

1.3 STRUCTURE OF THIS DOCUMENT

This NOPR 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 watersource heat pumps.

2 See Packaged Terminal Air Conditioners and Heat Pumps Standards Rulemaking webpage:

www1.eere.energy.gov/buildings/appliance_standards/rulemaking.aspx/ruleid/64 and Single Package Vertical Air 

Conditioners and Heat Pumps Standards Rulemaking webpage: 

www1.eere.energy.gov/buildings/appliance_standards/rulemaking.aspx?ruleid=107.

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Chapter 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 watersource 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 at the 

considered 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 Analysis: 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: Discusses the methods used for projecting shipments with 

and without higher efficiency standards.

Chapter 8 National Impact Analysis: Discusses the methods used for projecting 

national energy savings and national economic impacts based on annual 

equipment shipments 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 oxides 

(NOx), carbon dioxide (CO2), mercury (Hg), methane (CH4), and 

nitrous oxide (N2O).

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Chapter 10 Monetization of Emission Reductions Benefits: Discusses the 

monetization of reductions in CO2 and NOX 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 of standards on the 

installed generation capacity of electric utilities

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