```

[Federal Register Volume 80, Number 117 (Thursday, June 18, 2015)]
[Proposed Rules]
[Pages 34843-34855]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-15001]

========================================================================
Proposed Rules
                                                Federal Register
________________________________________________________________________

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.

========================================================================


Federal Register / Vol. 80, No. 117 / Thursday, June 18, 2015 / 
Proposed Rules

[[Page 34843]]

DEPARTMENT OF ENERGY

Office of Energy Efficiency and Renewable Energy

10 CFR Part 430

[Docket Number EERE-2014-BT-STD-0059]

Energy Conservation Program: Energy Conservation Standards for 
Room Air Conditioners; Request for Information

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

ACTION: Request for Information (RFI).

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

SUMMARY: The U.S. Department of Energy (DOE) is initiating an effort to 
determine whether to amend the current energy conservation standards 
for room air conditioners (room ACs). According to the Energy Policy 
and Conservation Act's 6-year review requirement, DOE must publish by 
April 8, 2017 a notice of proposed rulemaking (NOPR) to propose new 
standards for room ACs or a notice of determination that the existing 
standards do not need to be amended. This RFI seeks to solicit 
information from the public to help DOE determine whether amended 
standards for room ACs would result in a significant amount of 
additional energy savings and whether those standards would be 
technologically feasible and economically justified. In addition, DOE 
has identified several issues associated with the currently applicable 
test procedure for room ACs on which DOE is particularly interested in 
receiving comment.

DATES: Written comments and information are requested on or before 
August 3, 2015.

ADDRESSES: Interested parties are encouraged to submit comments 
electronically. However, comments may be submitted by any of the 
following methods:
     Federal eRulemaking Portal: www.regulations.gov. Follow 
the instructions for submitting comments.
     Email: RoomAC2014STD0059@ee.doe.gov. Include docket number 
EERE-2014-BT-STD-0059 in the subject line of the message. All comments 
should clearly identify the name, address, and, if appropriate, 
organization of the commenter. Submit electronic comments in Word 
Perfect, Microsoft Word, PDF, or ASCII file format, and avoid the use 
of special characters or any form on encryption.
     Postal Mail: Ms. Brenda Edwards, U.S. Department of 
Energy, Building Technologies Office, Mailstop EE-5B, Request for 
Information for Energy Conservation Standards for Room Air 
Conditioners, Docket No. EERE-2014-BT-STD-0059, 1000 Independence 
Avenue SW., Washington, DC 20585-0121. Please submit one signed paper 
original.
     Hand Delivery/Courier: Ms. Brenda Edwards, U.S. Department 
of Energy, Building Technologies Office, Sixth Floor, 950 L'Enfant 
Plaza SW., Washington, DC 20024. Please submit one signed paper 
original.
    Instructions: All submissions received must include the agency name 
and docket number for this rulemaking. No telefacsimiles (faxes) will 
be accepted.
    Docket: The docket is available for review at www.regulations.gov, 
including Federal Register notices, comments, and other supporting 
documents/materials. 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. A link to the docket Web page can be found at: 
http://www.regulations.gov/#!docketDetail;D=EERE-2014-BT-STD-0059. This 
Web page contains a link to the docket for this notice on the 
www.regulations.gov Web site. The www.regulations.gov Web page contains 
simple instructions on how to access all documents, including public 
comments, in the docket.

FOR FURTHER INFORMATION CONTACT: Direct requests for additional 
information may be sent to:

Mr. Bryan Berringer, 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: 
202-586-0371. Email: room_air_conditioners@ee.doe.gov.
Ms. Sarah Butler, U.S. Department of Energy, Office of the General 
Counsel, GC-33, 1000 Independence Avenue SW., Washington, DC 20585-
0121. Telephone: (202) 586-1777. Email: Sarah.Butler@hq.doe.gov.

    For information on how to submit or review public comments, contact 
Ms. Brenda Edwards, U.S. Department of Energy, Office of Energy 
Efficiency and Renewable Energy, Building Technologies Program, 
Mailstop EE-5B, 1000 Independence Avenue SW., Washington, DC 20585-
0121. Telephone: (202) 586-2945. Email: Brenda.Edwards@ee.doe.gov.

SUPPLEMENTARY INFORMATION: 

Table of Contents

I. Introduction
    A. Authority and Background
    B. Rulemaking Process
II. Request for Information and Comments
    A. Products Covered by this Rule
    B. Test Procedure
    1. Background
    2. Updated Energy Efficiency Metric
    3. Test Method for Cooling Mode
    4. Test Method for Heating Mode
    5. Test Method for Part Load Performance
    6. Test Methods for Products that Operate on Mutliple Voltages
    7. Test Methods for ``Connected Products''
    C. Market and Technology Assessment
    1. Product Classes
    2. Technology Assessment
    D. Screening Analysis
    1. Weight Limits
    2. Chassis size Limits
    3. Acoustic Noise
    E. Engineering Analysis
    1. Baseline Models
    2. Baseline Efficiency Levels
    3. Higher Efficiency Levels
    F. Markups Analysis
    G. Energy Use Analysis
    H. Life-Cycle Cost and Payback Period Analysis
    I. Shipments Analysis
    J. National Impact Analysis
    K. Manufacturer Impact Analysis
III. Submission of Comments

I. Introduction

A. Authority and Background

[[Page 34844]]

    Title III, Part B \1\ of the Energy Policy and Conservation Act of 
1975 (EPCA or the Act), Public Law 94-163, (42 U.S.C. 6291-6309, as 
codified) sets forth a variety of provisions designed to improve energy 
efficiency and established the Energy Conservation Program for Consumer 
Products Other Than Automobiles, a program covering major household 
appliances (collectively referred to as ``covered products''), 
including room ACs.\2\ EPCA authorizes DOE to establish technologically 
feasible, economically justified energy conservation standards for 
covered products that would be likely to result in significant national 
energy savings. (42 U.S.C. 6295(o)(2)(B)(i)(I)-(VII))
---------------------------------------------------------------------------

    \1\ For editorial reasons, upon codification in the U.S. Code, 
Part B was re-designated Part A.
    \2\ All references to EPCA in this document refer to the statute 
as amended through the Energy Efficiency Improvement Act of 2015, 
Public Law 114-11 (April 30, 2015).
---------------------------------------------------------------------------

    The National Appliance Energy Conservation Act of 1987 (NAECA), 
Public Law 100-12, amended EPCA to establish prescriptive standards for 
room ACs manufactured on or after January 1, 1990, and directed DOE to 
conduct two cycles of rulemakings to determine if more stringent 
standards were justified. (42 U.S.C. 6295(c)(1)-(2))
    DOE undertook the first cycle of these rulemakings and published a 
final rule on September 24, 1997 (hereafter the September 1997 Final 
Rule), revising the energy conservation standards for room ACs 
manufactured on or after October 1, 2000. 62 FR 50122. For the second 
cycle of rulemakings, DOE published a direct final rule on April 21, 
2011 (hereafter the April 2011 Direct Final Rule), amending the energy 
conservation standards for room ACs manufactured on or after April 21, 
2014. 76 FR 22454. DOE published a final rule amending the compliance 
dates for energy conservation standards for residential room air 
conditioners. 76 FR 52852 (Aug. 24, 2011). In a separate notice, also 
on August 24, 2011, DOE confirmed the adoption of these energy 
conservation standards in a notice of effective date and compliance 
dates for the direct final rule published on August 24, 2011 (76 FR 
52854), which also adopted compliance dates which were set forth in a 
proposed rule published on May 9, 2011 (76 FR 26656). The current 
energy conservation standards apply to room ACs manufactured on or 
after June 1, 2014.
    EPCA requires that, not later than 6 years after the issuance of a 
final rule establishing or amending a standard, DOE publish a NOPR 
proposing new standards or a notice of determination that the existing 
standards do not need to be amended. (42 U.S.C. 6295(m)(1)) Based on 
this provision, DOE must publish by April 8, 2017, either a NOPR 
proposing amended standards for room ACs or a notice of determination 
that the existing standards do not need to be amended. This notice 
represents the initiation of the mandatory review process imposed by 
EPCA and seeks input from the public to assist DOE with its 
determination on whether amended standards pertaining to room ACs are 
warranted. In making this determination, DOE must evaluate whether more 
stringent standards would (1) yield a significant savings in energy use 
and (2) be both technologically feasible and economically justified. 
(42 U.S.C. 6295(o)(3)(B))

B. Rulemaking Process

    DOE must follow specific statutory criteria for prescribing new or 
amended standards for covered products. EPCA requires that any new or 
amended energy conservation standard be designed to achieve the maximum 
improvement in energy or water efficiency that is technologically 
feasible and economically justified. To determine whether a standard is 
economically justified, EPCA requires that DOE determine whether the 
benefits of the standard exceed its burdens by considering, to the 
greatest extent practicable, the following:
    1. The economic impact of the standard on the manufacturers and 
consumers of the affected products;
    2. The savings in operating costs throughout the estimated average 
life of the product compared to any increases in the initial cost, or 
maintenance expense;
    3. The total projected amount of energy and water (if applicable) 
savings likely to result directly from the imposition of the standard;
    4. Any lessening of the utility or the performance of the products 
likely to result from the imposition of 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 
imposition of the standard;
    6. The need for national energy and water conservation; and
    7. Other factors the Secretary of Energy (Secretary) considers 
relevant. (42 U.S.C. 6295 (o)(2)(B)(i))
    DOE fulfills these and other applicable requirements by conducting 
a series of analyses throughout the rulemaking process. Table I.1 shows 
the individual analyses that are performed to satisfy each of the 
requirements within EPCA.

       Table I.1--EPCA Requirements and Corresponding DOE Analysis
------------------------------------------------------------------------
            EPCA requirement                Corresponding DOE analysis
------------------------------------------------------------------------
Technological Feasibility..............   Market and Technology
                                          Assessment.
                                          Screening Analysis.
                                          Engineering Analysis.
Economic Justification:
    1. Economic impact on manufacturers   Manufacturer Impact
     and consumers.                       Analysis.
                                          Life-Cycle Cost and
                                          Payback Period Analysis.
                                          Life-Cycle Cost
                                          Subgroup Analysis.
                                          Shipments Analysis.
    2. Lifetime operating cost savings    Markups for Product
     compared to increased cost for the   Price Determination.
     product.                             Energy and Water Use
                                          Determination.
                                          Life-Cycle Cost and
                                          Payback Period Analysis.
    3. Total projected energy savings..   Shipments Analysis.
                                          National Impact
                                          Analysis.
    4. Impact on utility or performance   Screening Analysis.
                                          Engineering Analysis.
    5. Impact of any lessening of         Manufacturer Impact
     competition.                         Analysis.
    6. Need for national energy and       Shipments Analysis.
     water conservation.                  National Impact
                                          Analysis.

[[Page 34845]]

 
    7. Other factors the Secretary        Emissions Analysis.
     considers relevant.                  Utility Impact
                                          Analysis.
                                          Employment Impact
                                          Analysis.
                                          Monetization of
                                          Emission Reductions Benefits.
                                          Regulatory Impact
                                          Analysis.
------------------------------------------------------------------------

    As detailed throughout this RFI, DOE is specifically publishing 
this notice as the first step in the analysis process and is 
specifically requesting input and data from interested parties to aid 
in the development of the technical analyses.

II. Request for Information and Comments

    In the next section, DOE has identified a variety of questions that 
DOE would like to receive input on to aid in the development of the 
technical and economic analyses regarding whether new standards for 
room ACs may be warranted. In addition, DOE welcomes comments on other 
issues relevant to the conduct of this rulemaking that may not 
specifically be identified in this notice.

A. Products Covered by This Rulemaking

    DOE defines ``room air conditioner'' under EPCA as ``a consumer 
product, other than a ``packaged terminal air conditioner,'' which is 
powered by a single phase electric current and which is an encased 
assembly designed as a unit for mounting in a window or through the 
wall for the purpose of providing delivery of conditioned air to an 
enclosed space. It includes a prime source of refrigeration and may 
include a means for ventilating and heating. (10 CFR 430.2) DOE intends 
to address energy conservation standards for all room ACs.
    DOE notes that other consumer products, including portable ACs and 
residential dehumidifiers, are self-encased, powered by a single phase 
electric current, refrigeration-based, and provide delivery of 
conditioned air to an enclosed space. Portable ACs also provide 
connection through ducting to a window mounting bracket. DOE believes, 
however, that the requirement in the room AC definition that the 
encased assembly be designed as a unit for mounting in a window refers 
to the product in its entirety, and not just to duct connections. For 
this reason, DOE is not proposing to update the definition of ``room 
air conditioner'' to exclude other consumer products.
    DOE is aware that room ACs may provide additional consumer-oriented 
functions besides cooling, heating, and ventilation. Certain units may 
offer an air circulation feature, in which the room air is circulated 
without the addition of any outside air. In addition, certain units may 
provide an air cleaning function by means of electrostatic filtration, 
ultraviolet radiation, or ozone generators. DOE requests feedback from 
interested parties on the suitability of adding references to air 
circulation, air cleaning, or other functions to the room air 
conditioner definition.
    Issue A.1 DOE requests comment on the definition of room ACs and 
the consideration of energy conservation standards for all room ACs.

B. Test Procedure

1. Background
    Prior to June 1, 2014, room AC performance was certified using the 
energy efficiency ratio (EER). EER is expressed in British thermal 
units (Btu) per watt-hour (Wh), and is the quotient of: (1) The cooling 
capacity in Btu per hour, divided by: (2) The electrical input power in 
watts (W). (10 CFR 430.23(f)(2))
    The Energy Independence and Security Act of 2007 (EISA 2007), 
Public Law 110-140, amended EPCA to require that standby mode and off 
mode energy consumption be integrated into the overall energy 
efficiency, energy consumption, or other energy descriptor unless the 
Secretary determines that (i) the current test procedures for a covered 
product already fully account for and incorporate standby mode and off 
mode energy consumption of the covered product; or (ii) such an 
integrated test procedure is technically infeasible for a particular 
covered product, in which case the Secretary shall prescribe a separate 
standby mode and off mode energy use test procedure for the covered 
product, if technically feasible. (42 U.S.C. 6295(gg)(2)(A))
    On January 6, 2011, DOE published in the Federal Register a final 
rule for a room air AC test procedure rulemaking (January 2011 RAC TP 
Final Rule), in which DOE determined it is technically feasible to 
incorporate standby mode and off mode energy consumption into overall 
energy consumption. As a result, DOE adopted new methods to calculate 
room AC standby and off mode energy use and the new measure of energy 
efficiency, Combined Energy Efficiency Ratio (CEER), that integrates 
standby and off mode energy use with the active mode energy use. 76 FR 
972, 991-992 (Jan. 6, 2011)
    In the January 2011 RAC TP Final Rule, DOE incorporated by 
reference into the room AC test procedures specific clauses from 
International Electrotechnical Commission (IEC) Standard 62301, 
``Household electrical appliances--Measurement of standby power'', 
First Edition, 2005-06 (IEC Standard 62301 First Edition) regarding 
test conditions and test procedures for measuring standby and off mode 
power consumption. DOE also incorporated definitions of ``active 
mode,'' ``standby mode,'' and ``off mode'' that are based on the 
definitions provided in IEC Standard 62301, ``Household electrical 
appliances--Measurement of standby power'', Second Edition, Committee 
Draft for Vote (IEC Standard 62301 CDV). Further, DOE adopted language 
to clarify the application of clauses from IEC Standard 62301 First 
Edition and the mode definitions from IEC Standard 62301 CDV for 
measuring standby and off mode power consumption. 76 FR 972, 979-987 
(Jan. 6, 2011). Also as part of the January 2011 RAC TP Final Rule, DOE 
amended the room AC test procedure to update the references to industry 
test standards to the versions applicable at that time: (1) American 
National Standards Institute (ANSI)/Association of Home Appliance 
Manufacturers (AHAM) RAC-1-2008, ``Room Air Conditioners'' (ANSI/AHAM 
RAC-1-2008); \3\ and (2) ANSI/American Society of Heating, 
Refrigerating, and Air-Conditioning Engineers Standard (ASHRAE) 16-1983 
(RA2009), ``Method of Testing for Rating Room Air Conditioners and 
Packaged Terminal Air Conditioners'' (ANSI/ASHRAE Standard 16-1983 
(RA2009)),\4\

[[Page 34846]]

respectively. 76 FR 972, 1016-1017 (Jan. 6, 2011).
---------------------------------------------------------------------------

    \3\ AHAM standards are available for purchase online at: 
www.aham.org/ht/d/Store/name/STANDARDS/pid/5132.
    \4\ ASHRAE standards are available for purchase online at: 
www.techstreet.com/ashrae/.
---------------------------------------------------------------------------

2. Updated Energy Efficiency Metric
    On February 25, 2015, DOE published a test procedure NOPR for 
portable ACs that proposes the use of a revised CEER metric that 
accounts for energy consumption in each of the identified active, 
standby, and off modes: Cooling mode, heating mode, off-cycle mode, 
inactive mode, and off mode (hereafter referred to as the February 2015 
PAC TP NOPR). 80 FR 10212. As discussed in section II.A of this notice, 
DOE is requesting input on including definitions for different 
operating modes in the definitions for room ACs. If such additional 
modes are included, DOE would also consider whether to revise the 
current room AC CEER metric to account for the energy use in them. In 
particular, DOE is interested in feedback on whether to consider 
including in the room AC CEER metric the same modes proposed for the 
portable AC metric, because of the similarity between the two products.
    As a possible approach, DOE could consider the proposal in the 
February 2015 PAC TP NOPR, in which average power in each mode would be 
measured and then individually multiplied by the annual operating hours 
for its respective mode.

AECi = Pi x hi x k

Where:

AECi is the annual energy consumption in each mode, in 
kilowatt-hours (kWh)/year;
Pi is the average power in each mode, in W;
hi is the number of annual operating hours in each mode;
i designates the operating mode (``c'' cooling, ``h'' heating, 
``oc'' off-cycle, and ``ia'' inactive or ``om'' off mode); and
k is 0.001 kWh/Wh conversion factor for Wh to kWh.

80 FR 10211, 10234 (Feb. 25, 2015).

    In order to calculate AECi, DOE would need to define the 
annual operating hours for each mode. The current room AC test 
procedure specifies 750 hours for active cooling mode, and a total of 
5,115 hours for inactive and off mode. (10 CFR part 430 appendix F to 
subpart B). DOE established these values in the January 2011 RAC TP 
Final Rule. DOE seeks input on mode hours for the complete set of 
operating modes that may be defined for room ACs.
    To incorporate the new operating modes into a revised CEER metric, 
the February 2015 PAC TP NOPR proposed defining the new term; 
``combined cooling mode EER'' (CEERC).
[GRAPHIC] [TIFF OMITTED] TP18JN15.000

Where:

CEERC is the combined energy efficiency ratio in cooling 
mode, in Btu/Wh.
ACC is the adjusted cooling capacity, in Btu/h.
AECT is the total annual energy consumption attributed to 
all modes except cooling and heating, in kWh/year.
t is the number of hours per year, 8,760.
k is 0.001 kWh/Wh conversion factor for watt-hours to kilowatt-
hours.

80 FR 10211, 10234 (Feb. 25, 2015).

    The CEERC would be calculated for all units, including 
those with only cooling function and those with both cooling and 
heating functions. For units with cooling and heating functions, the 
metric would be calculated assuming heating mode is not used and 
therefore, the operating hours that would have been attributed to 
heating mode and other associated operating modes during the heating 
season would be neglected. In the February 2015 PAC TP NOPR, DOE 
proposed that the resulting CEERC is a meaningful metric for 
portable ACs without a heating function, and a basis for comparing 
cooling mode efficiency for units that include heating function, as 
well as a metric that could be compared to other cooling products, such 
as room ACs. Id.
    To calculate the overall energy efficiency metric for portable ACs 
without a heating function, the February 2015 PAC TP NOPR proposed that 
the revised CEER would be directly equal to the unit's calculated 
CEERC. However, for units with both cooling and heating 
mode, the revised overall CEER would be calculated as follows.
[GRAPHIC] [TIFF OMITTED] TP18JN15.001

Where:

CEER is the combined energy efficiency ratio, in Btu/Wh.
ACC is the adjusted cooling capacity, in Btu/h.
AHC is the adjusted heating capacity, in Btu/h.
AECT is the total annual energy consumption attributed to 
all modes except cooling and heating, in kWh/year.
hc and hh are the cooling and heating mode 
operating hours, respectively.
t is the number of hours per year, 8,760.
k is 0.001 kWh/Wh conversion factor for watt-hours to kilowatt-
hours.

80 FR 10211, 10234-35 (Feb. 25, 2015).

    Issue B.1 DOE seeks comment on the merits and/or limitations of 
revising the room AC test procedure and efficiency metric to account 
for energy consumption in various modes, which may include cooling 
mode, heating mode, off-cycle mode, inactive mode, off mode, or others.
    Issue B.2 DOE requests data on annual operating hours for the room 
AC operating modes.
    Issue B.3 DOE seeks comment on revising the room AC test procedure 
to require calculation of CEERC for all units, including 
those with only cooling function, and those with both cooling and 
heating functions.
    Issue B.4 DOE seeks comment on revising the definition of CEER for 
room ACs to be consistent with definitions proposed in the February 
2015 PAC TP NOPR.
3. Test Methods for Cooling Mode
    The current room AC test procedure specifies that cooling mode 
performance be tested in accordance with the methods and conditions in 
ANSI/AHAM RAC-1-2008 and ANSI/ASHRAE 16-1983 (RA2009). (10 CFR part 
430, appendix F to subpart B)

[[Page 34847]]

ANSI/ASHRAE reaffirmed the test standard 16-1983 most recently in 2014. 
ANSI/ASHRAE 16-1983 (R2014) specifies measuring cooling performance 
using a calorimeter method. DOE is aware, however, that ASHRAE is 
currently undertaking a revision to ANSI/ASHRAE 16-1983 (R2014) that is 
expected to allow cooling performance to be measured using an air 
enthalpy method similar to that specified in ANSI/ASHRAE 37-2009 
``Methods of Testing for Rating Electrically Driven Unitary Air-
Conditioning and Heat Pump Equipment'' (ANSI/ASHRAE 37-2009).
    Issue B.5 DOE seeks comment on the possible use of an air enthalpy 
method as an alternative to the current calorimeter method to measure 
cooling performance in the room AC test procedure.
    Issue B.6 DOE requests test data comparing the performance and 
accuracy of the current calorimeter method to the air enthalpy method 
being considered in a revision to ANSI/ASHRAE 16-1983 (R2014).
    Issue B.7 DOE requests information on the burdens associated with 
testing cooling performance using an air enthalpy method. Specifically 
DOE is interested in data related to the required capital investment 
costs, per-test costs, and testing time associated with air enthalpy 
testing. DOE is also interested in how these costs compare to those for 
the existing calorimeter method, and whether the burden for air 
enthalpy testing would disproportionately impact certain businesses.
4. Test Methods for Heating Mode
    If DOE revises the room AC test procedure to require calculation of 
CEERh for models with reverse cycle, DOE would need to 
define a method for measuring heating performance. DOE is currently 
evaluating test methods that have been developed (or are proposed) for 
other residential or light commercial space cooling/heating appliances, 
such as portable ACs, packaged terminal ACs (PTACs), and packaged 
terminal heat pumps (PTHPs).
    In the February 2015 PAC TP NOPR DOE proposed using an air enthalpy 
method to measure portable AC heating performance. The proposed method 
is based on AHAM PAC-1-2014 ``Portable Air Conditioners'' (AHAM PAC-1), 
which references test methods established in ANSI/ASHRAE Standard 37-
2009. 80 FR 10211, 10217-10231 (Feb. 25, 2015). For this method, DOE 
proposed standard rating conditions for the evaporator (room) side and 
condenser (outdoor) side of dual-duct portable ACs as shown in Table 
II.1. DOE considers the test conditions in Table II.1 to be the most 
representative of typical heating mode use for portable ACs, which are 
likely used as supplemental or low-capacity heaters when a central 
heating system isn't necessary or operating. DOE notes that the terms 
``evaporator'' and ``condenser'' refer to the heat exchanger 
configuration in cooling mode, not the reverse-cycle heating mode.

 Table II.1--Standard Rating Conditions for Dual Duct PACs--Heating Mode
------------------------------------------------------------------------
    Evaporator inlet air degrees          Condenser inlet air [deg]F
  Fahrenheit ([deg]F) ([deg]Celsius                ([deg]C)
                (C))                 -----------------------------------
-------------------------------------
     Dry Bulb           Wet Bulb          Dry Bulb          Wet Bulb
------------------------------------------------------------------------
    70.0 (21.1)        60.0 (15.6)        47.0 (8.33)       43.0 (6.11)
------------------------------------------------------------------------

    In the current PTAC and PTHP test procedure (10 CFR 431.96), DOE 
also uses an air enthalpy method to measure heating mode performance. 
For this test procedure, DOE incorporates by reference in total the 
American Refrigeration Institute (ARI) Standard 310/380-2004 ``Standard 
for Packaged Terminal Air-Conditioners And Heat Pumps'' (ARI 310/380-
2004).\5\ ARI 310/380-2004 in turn references ANSI/ASHRAE Standard 58-
1999 ``Methods of Testing Rating Room Air Conditioner and Packaged 
Terminal Air Conditioner Heating Capacity'' (ANSI/ASHRAE 58-1999) to 
rate the heating performance of both PTACs and PTHPs. AHR 310/380-2004 
specifically notes that ``standard ratings relating to cooling capacity 
and heating capacity shall be net values, including the effects of 
circulating fan heat, but not including supplementary heat. Standard 
input ratings shall be the total power input to the compressor(s) and 
fans, plus controls and other items included as part of the model 
number(s).'' AHR 310/380-2004 provides methods to calculate heat pump 
heating capacities and energy consumption at both ``high-temperature'' 
and ``low-temperature'' operating conditions, but specifies that EER 
and coefficient of performance (COP) are only calculated for the high-
temperature condition. Table II.2 summarizes the rating conditions for 
high- and low-temperature conditions.
---------------------------------------------------------------------------

    \5\ ARI 310/380-2004 is available online at: www.ari.org/App_Content/ahri/files/standards%20pdfs/ANSI%20standards%20pdfs/ANSI.AHRI.CSA%20Standard%20310_380-2004.pdf.

     Table II.2--Standard Rating Conditions for PTHPs and PTACs With Reverse Cycle Capability--Heating Mode
----------------------------------------------------------------------------------------------------------------
                                          Evaporator inlet air [deg]F ([deg]C)      Condenser inlet air [deg]F
                                       ------------------------------------------            ([deg]C)
          Operating condition                                                    -------------------------------
                                           Dry Bulb             Wet Bulb             Dry Bulb        Wet Bulb
----------------------------------------------------------------------------------------------------------------
High-Temperature......................     70.0 (21.1)  60.0 (15.6) max.........      47.0 (8.3)      43.0 (6.1)
Low-Temperature.......................     70.0 (21.1)  60.0 (15.6) max.........     17.0 (-8.3)     15.0 (-9.4)
----------------------------------------------------------------------------------------------------------------

    Issue B.8 DOE seeks comment on appropriate test methods, external 
standards, and operating conditions for measuring heating performance 
in room ACs with reverse cycle. Specifically, DOE seeks comment on the 
high-temperature operating conditions specified in Table II.2. DOE also

[[Page 34848]]

welcomes suggestions and supporting data for alternative methods.
    Issue B.9 DOE requests information on the burdens associated with 
testing heating performance, using methods similar to ANSI/ASHRAE 58-
1999 or ANSI/ASHRAE 37-2009, or other methods. Specifically DOE is 
interested in data related to the required capital investment costs, 
per-test costs, and testing time associate with sound testing. DOE also 
requests comment on whether this burden would disproportionately impact 
certain businesses.
5. Test Methods for Part Load Performance
    In the January 2011 RAC TP Final Rule, DOE discussed that the test 
procedure established in that rule does not measure the benefits of 
technologies that improve part-load performance. 76 FR 972, 1016 (Jan. 
6, 2011). The current room AC test procedure measures only the full-
load performance at outdoor ambient conditions of 95 [deg]F dry-bulb 
and 75 [deg]F wet-bulb. Therefore, technologies that improve part-load 
performance, such as multiple-speed compressors and variable-opening 
expansion devices, will not improve the rated performance of a room AC 
under the current test procedure. In contrast, central ACs and heat 
pumps are rated with a seasonal energy efficiency ratio (SEER) 
descriptor, but the test procedure consists of multiple rating points 
at different conditions that add time and expense when rating the 
product.
    DOE concluded in the January 2011 RAC TP Final Rule that widespread 
use of part-load technology in room ACs would not likely be stimulated 
by the development of a part-load metric at this time, and therefore, 
the significant effort required to develop an accurate part-load metric 
is not likely to be warranted by the expected minimal energy savings. 
76 FR 972, 1016 (Jan. 6, 2011.
    For the current test procedure rulemaking, DOE again intends to 
investigate the merits and limitations of revising the current room AC 
test procedure to account for any benefits of technologies that improve 
part-load performance. As part of this investigation, DOE expects to 
research the availability of room ACs on the market in the United 
States that incorporate variable speed compressors and other components 
and controls that would enable implementation of part-load operation.
    Issue B.10 DOE seeks comment on the merits and/or limitations of 
revising the current room AC test procedure to account for benefit of 
technologies that improve part-load performance, and welcomes 
suggestions and supporting information for test methods that measure 
part-load operation.
    Issue B.11 DOE seeks data and information on the prevalence of room 
ACs in the U.S. market that are capable of part-load operation.
6. Test Methods for Products That Operate on Multiple Voltages
    DOE is aware that there are room ACs available in the United States 
that can operate on multiple voltages for the input power. These 
products may have a different capacity measured at each operating 
voltage. As a result, a single product may be categorized into two 
different product classes and therefore be required to comply with two 
different energy conservation standards, depending on which voltage is 
used to test the product. Currently, the room AC test procedure does 
not specify which voltage a product should be tested at, if it is 
capable of operating with multiple voltages.
    Issue B.12 DOE seeks comment on how to test and certify products 
that may operate on multiple voltages. Specifically, DOE is interested 
in comment on how to treat products that may be categorized into two 
different product classes, depending on operating voltage.
7. Test Methods for ``Connected Products''
    On February 20, 2015, the U.S. Environmental Protection Agency 
(EPA) published the Final Version 4.0 ``ENERGY STAR Product 
Specification for Room Air Conditioners.'' \6\ Along with revised 
efficiency criteria, EPA specified an optional connected criteria for 
room ACs designed to provide enhanced functionality to consumers, such 
as alerts/messages, remote control, and energy information, as well as 
new demand response capabilities to support future smart grid 
interconnection. Products that meet these optional criteria and are 
certified using a future test method to validate the demand response 
capabilities could take advantage of a 5-percent energy use allowance 
for ENERGY STAR rating qualification.
---------------------------------------------------------------------------

    \6\ Available online at www.energystar.gov/products/spec/room_air_conditioner_specification_version_4_0_pd.
---------------------------------------------------------------------------

    DOE anticipates that the revised ENERGY STAR specification may 
increase the market penetration of ``connected products.'' It is 
possible that connected products may consume a significant amount of 
energy while performing these connected functions. As such, DOE is 
considering whether to amend the room AC test procedure and energy 
conservation standards to account for the energy consumed while the 
product performs connected functions.
    Issue B.13 DOE requests information on ``connected'' room ACs that 
are already on the market in the United States. Specifically, DOE is 
interested in the available ``connected'' features, as well as the 
energy consumption while these features are active or awaiting 
commands.
    Issue B.14 DOE request information on the current and anticipated 
market penetration of ``connected products.''

C. Market and Technology Assessment

    The market and technology assessment provides information about the 
room AC industry that will be used throughout the rulemaking process. 
For example, this information will be used to determine whether the 
existing product class structure requires modification based on the 
statutory criteria for setting such classes and to explore the 
potential for technological improvements in the design and 
manufacturing of such products. DOE uses qualitative and quantitative 
information to characterize the structure of the room AC industry and 
market. DOE will identify and characterize the manufacturers of room 
ACs, estimate market shares and trends, address regulatory and non-
regulatory initiatives intended to improve energy efficiency or reduce 
energy consumption, and explore the potential for technological 
improvements in the design and manufacturing of room ACs. DOE will also 
review product literature, industry publications, and company Web 
sites. Additionally, DOE will consider conducting interviews with 
manufacturers to assess the overall market for room ACs.
1. Product Classes
    As required by EPCA, the criteria for separation into different 
classes are: (1) Type of energy used, or (2) capacity or other 
performance-related features such as those that provide utility to the 
consumer or others deemed appropriate by the Secretary that would 
justify the establishment of a separate energy conservation standard. 
(42 U.S.C. 6295 (q))
    For room ACs, the NAECA amendments to EPCA, initially specified 12 
product classes which were applicable to units designed for single-hung 
or double-hung window installation or through-thewall installation and 
based on the following

[[Page 34849]]

criteria: (1) cooling capacity, in Btu/h; (2) the presence of louvered 
sides (LS); and (3) the capability of reverse cycle. (42 U.S.C. 
6295(c)(1)). In the September 1997 Final Rule, DOE established an 
updated set of performance standards (effective October 1, 2000) which 
included four additional product classes. 62 FR 50122 (Sept. 24, 1997). 
In the April 2011 Direct Final Rule, DOE split Product Classes 5 and 8 
into two product classes each. Former Product Class 5 (louvered, non-
reverse-cycle, capacity of 20,000 Btu/h and higher) was split into 
Product Class 5A (louvered, non-reverse-cycle, capacity of 20,000 to 
27,999 Btu/h) and Product Class 5B (louvered, non-reverse-cycle, 
capacity of 28,000 Btu/h and higher). Former Product Class 8 (non-
louvered, non-reverse-cycle, capacity of 8,000 to 13,999 Btu/h) was 
split into Product Class 8A (non-louvered, non-reverse-cycle, capacity 
of 8,000 to 10,999 Btu/h) and Product Class 8B (nonlouvered, non-
reverse-cycle, capacity of 11,000 to 13,999 Btu/h). 76 FR 22454 (Apr. 
21, 2011). Table II.3 lists the current 18 product classes for room 
ACs.

        Table II.3--Current Room Air Conditioner Product Classes
------------------------------------------------------------------------
 
-------------------------------------------------------------------------
              Without reverse cycle and with louvered sides
------------------------------------------------------------------------
1. Less than 6,000 Btu/h.
2. 6,000 to 7,999 Btu/h.
3. 8,000 to 13,999 Btu/h.
4. 14,000 to 19,999 Btu/h.
5A. 20,000 to 27,999 Btu/h.
5B. 28,000 Btu/h or more.
------------------------------------------------------------------------
            Without reverse cycle and without louvered sides
------------------------------------------------------------------------
6. Less than 6,000 Btu/h.
7. 6,000 to 7,999 Btu/h.
8A. 8,000 to 10,999 Btu/h.
8B. 11,000 to 13,999 Btu/h.
9. 14,000 to 19,999 Btu/h.
10. 20,000 Btu/h or more
------------------------------------------------------------------------
                           With reverse cycle
------------------------------------------------------------------------
11. With louvered sides and less than 20,000 Btu/h.
12. Without louvered sides and less than 14,000 Btu/h.
13. With louvered sides and 20,000 Btu/h or more.
14. Without louvered sides and 14,000 Btu/h or more.
------------------------------------------------------------------------
                                Casement
------------------------------------------------------------------------
15. Casement-Only.
16. Casement-Slide.
------------------------------------------------------------------------

    Issue C.1 DOE requests feedback on the current room AC product 
classes and seeks information regarding any other product classes it 
should consider for inclusion in its analysis.
2. Technology Assessment
    DOE uses information about existing and past technology options and 
prototype designs to help identify technologies that manufacturers 
could use to meet and/or exceed energy conservation standards. In 
consultation with interested parties, DOE intends to develop a list of 
technologies to consider in its analysis. Initially, this list will 
include a subset of the technology options considered during the most 
recent room AC energy conservation standards rulemaking. These 
technologies are listed in Table II.4.
    DOE is aware that certain technologies listed in Table II.4 may 
have progressed since the April 2011 Direct Final Rule. Specifically, 
at the time of that analysis, the room AC industry was responding to 
the EPA-mandated phase-out of HFC-22 refrigerant. 74 FR 66412, 66418 
(Dec. 15, 2009). This rule led to an industry changeover to R-410A 
refrigerant. Manufacturers expressed concern at the time over the 
availability of R-410A compressors, stating that production capacity of 
compressor suppliers had not fully rebounded and compressor suppliers 
had yet to offer the same range of compressor capacities and efficiency 
tiers (See chapter 12 of the direct final rule technical support 
document (TSD).). Consequently, DOE plans to investigate improvements 
in R-410A compressors that may have come available since the April 2011 
Direct Final Rule.
    Additionally, in the April 2011 Direct Final Rule, DOE investigated 
the technological feasibility of the alternative refrigerant R-407C. 76 
FR 22490 (April 21, 2011). For this rulemaking, DOE may reevaluate R-
407C, as well as other hydrofluorocarbon (HFC) and hydrocarbon (HC) 
refrigerants.
    Furthermore, DOE is aware that three new refrigerants have been 
approved for use in room air conditioners by the EPA under the 
Significant New Alternatives Program (SNAP), subject to certain use 
conditions: R-290, R-441A and R-32.80 FR 19454 (Apr. 10, 2015). For 
this rulemaking, DOE plans to investigate the technological feasibility 
of these refrigerants.

        Table II.4--Technology Options for Room Air Conditioners
------------------------------------------------------------------------
                                                 Technology passed to
                                             screening analysis in April
                                               2011 direct final rule?
------------------------------------------------------------------------
                  Increased heat transfer surface area
------------------------------------------------------------------------
1. Increased frontal coil area.............  Yes.
2. Increased depth of coil (add tube rows).  Yes.
3. Increased fin density...................  Yes.
4. Add subcooler to condenser coil.........  Yes.
------------------------------------------------------------------------
                  Increased Heat Transfer Coefficients
------------------------------------------------------------------------
5. Improved fin design.....................  Yes.
6. Improved tube design....................  Yes.
7. Hydrophilic-film coating on fins........  Yes.

[[Page 34850]]

 
8. Spray condensate onto condenser coil....  Yes.
9. Microchannel heat exchangers............  Yes.
------------------------------------------------------------------------
                         Component Improvements
------------------------------------------------------------------------
10. Improved indoor blower and outdoor fan   Yes.
 efficiency.
11. Improved blower/fan motor efficiency...  Yes.
12. Improved compressor efficiency.........  Yes.
------------------------------------------------------------------------
                    Part-Load Technology Improvements
------------------------------------------------------------------------
13. Two-speed, variable-speed, or            Yes.
 modulating-capacity compressors.
14. Thermostatic or electronic expansion     Yes.
 valves.
15. Thermostatic cyclic controls...........  Yes.
------------------------------------------------------------------------
                       Standby Power Improvements
------------------------------------------------------------------------
16. Switching Power Supply.................  Yes.
------------------------------------------------------------------------
                      Refrigeration System Options
------------------------------------------------------------------------
17. Alternative Refrigerants (R-407C)......  No.
18. Suction-Line Heat Exchanger............  No.
------------------------------------------------------------------------

    Issue C.2 DOE seeks information related to the technologies listed 
in Table II.4 or other technologies as to their applicability to the 
current market and how these technologies improve efficiency of room 
ACs as measured according to the DOE test procedure.
    Issue C.3 DOE seeks information related to efficiency improvements 
in R-410A compressors since the April 2011 Direct Final Rule, their 
applicability and/or penetration in the current market, and how the 
compressors improve efficiency of room ACs as measured according to the 
DOE test procedure.
    Issue C.4 DOE seeks information related to the alternative HFC and 
HC refrigerants, including propane. Specifically, DOE seeks information 
on the availability of such refrigerants, and, their applicability and/
or penetration in the current market, and how these refrigerants 
improve efficiency of room ACs as measured according to the DOE test 
procedure.

D. Screening Analysis

    The purpose of the screening analysis is to evaluate the 
technologies that improve equipment efficiency to determine which 
technologies will be eliminated from further consideration and which 
will be passed to the engineering analysis for further consideration.
    Appendix A to subpart C of Title 10 of the Code of Federal 
Regulations, Part 430 (10 CFR part 430), ``Procedures, Interpretations 
and Policies for Consideration of New or Revised Energy Conservation 
Standards for Consumer Products'' (the Process Rule), sets forth 
procedures to guide DOE in its consideration and promulgation of new or 
revised equipment energy conservation standards. These procedures 
elaborate on the statutory criteria provided in 42 U.S.C. 6295(o) and, 
in part, eliminate problematic technologies early in the process of 
prescribing or amending an energy efficiency standard. In particular, 
sections 4(b)(4) and 5(b) of the Process Rule guide DOE in determining 
whether to eliminate from consideration any technology that presents 
unacceptable problems with respect to the following criteria:
    (1) Technological feasibility. Technologies incorporated in 
commercial equipment or in working prototypes will be considered 
technologically feasible.
    (2) Practicability to manufacture, install, and service. If mass 
production of a technology in commercial equipment and reliable 
installation and servicing of the technology could be achieved on the 
scale necessary to serve the relevant market at the time of the 
effective date of the standard, then that technology will be considered 
practicable to manufacture, install, and service.
    (3) Impacts on equipment utility or equipment availability. If a 
technology is determined to have significant adverse impact on the 
utility of the equipment to significant subgroups of consumers, or 
result in the unavailability of any covered equipment type with 
performance characteristics (including reliability), features, sizes, 
capacities, and volumes that are substantially the same as equipment 
generally available in the United States at the time, it will not be 
considered further.
    (4) Adverse impacts on health or safety. If it is determined that a 
technology will have significant adverse impacts on health or safety, 
it will not be considered further.
    Technology options developed in the technology assessment are 
evaluated against these criteria using DOE analyses and inputs from 
manufacturers, trade organizations, and energy efficiency advocates. 
Technologies that pass through the screening analysis are referred to 
as ``design options'' in the engineering analysis. Technology options 
that fail to meet one or more of the four criteria are eliminated from 
consideration.
    As a part of the screening analysis, DOE has identified three 
specific

[[Page 34851]]

consumer-oriented issues that it seeks input on. These issues are 
weight limits, chassis size limits, and acoustic noise. The following 
three subsections provide further details on these issues.
1. Weight Limits
    In the April 2011 Direct Final Rule analysis DOE limited the total 
weight of the Product Class 1 (as defined in Table II.3) baseline unit 
to 50 pounds, to avoid exceeding Occupational Safety and Health 
Administration (OSHA) and National Institute of Occupational Safety and 
Health (NIOSH) guidelines for single-person lifting.\7\ DOE did not 
consider limiting the weight of the other analyzed product classes 
because baseline units in those product classes already exceeded this 
weight limit.
---------------------------------------------------------------------------

    \7\ NIOSH guideline: http://www.cdc.gov/niosh/docs/2007-131/.
    OSHA guideline: https://www.osha.gov/SLTC/etools/electricalcontractors/materials/heavy.html.
---------------------------------------------------------------------------

    Issue D.1 DOE seeks input on the merits and/or limitations of 
maintaining a 50-pound limit for room ACs in Product Class 1. DOE also 
welcomes suggestions and supporting analysis for alternative weight 
limits.
    Issue D.2 DOE seeks input on whether to consider weight limits for 
product classes other than Product Class 1 in the room AC analysis. DOE 
also welcomes suggestions and data for additional product class-
specific weight limits.
2. Chassis Size Limits
    In the April 2011 Direct Final Rule analysis, DOE used a 
methodology that established maximum chassis widths and heights for 
each product class, when considering a baseline unit. DOE established 
these limits based on the dimensions of the largest R-410A room AC in 
each product class on the market. DOE did not set a limit for maximum 
chassis depth in that analysis.
    Issue D.3 DOE seeks input on potentially establishing chassis size 
limits as part of a design option analysis. DOE also welcomes 
suggestions and supporting analysis for alternative chassis size 
limits.
    Issue D.4 DOE seeks input on any factors that may help define 
chassis dimension limits beyond the dimensions of room ACs currently on 
the market in the United States. Specifically DOE welcomes data on the 
distribution of window widths and heights in U.S. residences.
3. Acoustic Noise
    DOE understands that increased noise levels might occur as room ACs 
attain higher levels of efficiency. Certain technology options, such as 
higher speed fans, can facilitate increased heat transfer and improved 
efficiency, but may result in increased acoustic noise. As a part of 
the screening analysis, DOE intends to investigate this relationship, 
specifically as it relates to impacts on consumer utility. As such DOE 
seeks input on test methods appropriate to objectively evaluate 
acoustic noise in room ACs.
    DOE is aware that the European Union (EU), through its EcoDesign 
regulations, recently instituted maximum sound power levels for room 
ACs assessed under EN 12102:2013 ``Air Conditioners, liquid chilling 
packages, heat pumps and dehumidifiers with electrically driven 
compressors for space heating and cooling--Measurement of airborne 
noise--Determination of sound power levels'' (EN 12102:2013). Under the 
new EU regulation, room ACs may not exceed indoor sound power levels of 
60 decibels (dB)(A) and outdoor sound power levels of 60dB(A).
    Similarly, the October 28, 2014 EPA Draft 1 of Version 4.0 ``ENERGY 
STAR Product Specification for Room Air Conditioners'' \8\ proposed 
that measured indoor sound power level shall not exceed 60dB(A), as 
measured using EN 12102:2013. In response to stakeholder comment, the 
EPA chose to remove the sound performance criteria in its February 20, 
2015 Final Version 4.0 of ``ENERGY STAR Product Specification for Room 
Air Conditioners.'' \9\ Stakeholders identified the lack of 
availability of test chambers and the burden of both building capacity 
for testing and sound power testing as one barrier to the inclusion of 
sound performance in an ENERGY STAR specification.
---------------------------------------------------------------------------

    \8\ Available online at www.energystar.gov/products/spec/room_air_conditioner_specification_version_4_0_pdf.
    \9\ Id.
---------------------------------------------------------------------------

    Issue D.5 DOE requests suggestions for test methods that are 
appropriate to objectively evaluate acoustic noise in room ACs.
    Issue D.6 DOE requests information on the relationship between 
acoustic noise, in dB(A), or other appropriate units, and consumer 
satisfaction.
    Issue D.7 DOE requests feedback and data on how the design options 
presented in section II.C impact room AC acoustic noise.

E. Engineering Analysis

    The engineering analysis estimates the cost-efficiency relationship 
of products at different levels of increased energy efficiency 
(``efficiency levels''). This relationship serves as the basis for the 
cost-benefit calculations for consumers, manufacturers, and the nation. 
In determining the cost-efficiency relationship, DOE estimates the 
change in manufacturer cost associated with increasing the efficiency 
of products above the baseline, up to the maximum technologically 
feasible (``max-tech'') efficiency level for each product class.
    DOE historically has used the following three methodologies to 
generate incremental manufacturing costs and establish efficiency 
levels (ELs) for analysis: (1) The design-option approach, which 
provides the incremental costs of adding to a baseline model design 
options that will improve its efficiency; (2) the efficiency-level 
approach, which provides the relative costs of achieving increases in 
energy efficiency levels, without regard to the particular design 
options used to achieve such increases; and (3) the cost-assessment (or 
reverse engineering) approach, which provides ``bottom-up'' 
manufacturing cost assessments for achieving various levels of 
increased efficiency, based on detailed data as to costs for parts and 
material, labor, shipping/packaging, and investment for models that 
operate at particular efficiency levels.
1. Baseline Models
    For each established product class, DOE selects a baseline model as 
a reference point against which any changes resulting from energy 
conservation standards can be measured. The baseline model in each 
product class represents the characteristics of common or typical 
products in that class. Typically, a baseline model is one that meets 
the current minimum energy conservation standards.
2. Baseline Efficiency Levels
    DOE tentatively plans to consider the current minimum energy 
conservations standards (which went into effect June 1, 2014) to 
establish the baseline efficiency levels for each product class. Table 
II.5 presents the current energy conservation standards for room ACs. 
If DOE amends the room AC test procedure to provide an efficiency 
metric other than the current CEER, DOE will adjust the CEER baseline 
levels to account for the new metric.

[[Page 34852]]

     Table II.5--Current Energy Conservation Standards for Room Air
                              Conditioners
------------------------------------------------------------------------
                                                               CEER,
                                                           effective as
                      Product class                         of June 1,
                                                               2014
------------------------------------------------------------------------
1. Without reverse cycle, with louvered sides, and less             11.0
 than 6,000 Btu/h.......................................
2. Without reverse cycle, with louvered sides, and 6,000            11.0
 to 7,999 Btu/h.........................................
3. Without reverse cycle, with louvered sides, and 8,000            10.9
 to 13,999 Btu/h........................................
4. Without reverse cycle, with louvered sides, and                  10.7
 14,000 to 19,999 Btu/h.................................
5A. Without reverse cycle, with louvered sides, and                  9.4
 20,000 to 27,999 Btu/h.................................
5B. Without reverse cycle, with louvered sides, and                  9.0
 28,000 Btu/h or more...................................
6. Without reverse cycle, without louvered sides, and               10.0
 less than 6,000 Btu/h..................................
7. Without reverse cycle, without louvered sides, and               10.0
 6,000 to 7,999 Btu/h...................................
8A. Without reverse cycle, without louvered sides, and               9.6
 8,000 to 10,999 Btu/h..................................
8B. Without reverse cycle, without louvered sides, and               9.5
 11,000 to 13,999 Btu/h.................................
9. Without reverse cycle, without louvered sides, and                9.3
 14,000 to 19,999 Btu/h.................................
10. Without reverse cycle, without louvered sides, and               9.4
 20,000 Btu/h or more...................................
11. With reverse cycle, with louvered sides, and less                9.8
 than 20,000 Btu/h......................................
12. With reverse cycle, without louvered sides, and less             9.3
 than 14,000 Btu/h......................................
13. With reverse cycle, with louvered sides, and 20,000              9.3
 Btu/h or more..........................................
14. With reverse cycle, without louvered sides, and                  8.7
 14,000 Btu/h or more...................................
15. Casement-Only.......................................             9.5
16. Casement-Slider.....................................            10.4
------------------------------------------------------------------------

    Issue E.1 DOE requests comment on approaches that it should 
consider when determining the baseline efficiency levels for each 
product class, including information regarding the merits and/or 
limitations of such approaches.
3. Higher Efficiency Levels
    For each product class, DOE will define efficiency levels beyond 
the baseline and develop incremental manufacturing cost data for each 
efficiency level. To define the efficiency levels, DOE tentatively 
plans to evaluate potential efficiency improvements from available 
design options and consider voluntary certification program levels such 
as ENERGY STAR and Consortium for Energy Efficiency's (CEE) Super 
Efficient Home Appliance Initiative (SEHA). The current ENERGY STAR and 
CEE voluntary certification levels are presented in Table II.6.

                  Table II.6--Current ENERGY STAR and CEE SEHA Levels for Room Air Conditioners
----------------------------------------------------------------------------------------------------------------
                                                               Oct. 2013
                                                                 ENERGY     Oct. 2013    SEHA  Tier   SEHA  Tier
                        Product class                             STAR        ENERGY     1  (EER) *   2  (EER) *
                                                                 (CEER)    STAR  (EER)
----------------------------------------------------------------------------------------------------------------
1. Without reverse cycle, with louvered sides, and less than         11.0         11.2         11.2         11.6
 6,000 Btu/h................................................
2. Without reverse cycle, with louvered sides, and 6,000 to          11.0         11.2         11.2         11.6
 7,999 Btu/h................................................
3. Without reverse cycle, with louvered sides, and 8,000 to          11.2         11.3         11.3         11.8
 13,999 Btu/h...............................................
4. Without reverse cycle, with louvered sides, and 14,000 to         11.1         11.2         11.2         11.6
 19,999 Btu/h...............................................
5a. Without reverse cycle, with louvered sides, and 20,000            9.8          9.8     [dagger]     [dagger]
 to 27,999 Btu/h............................................                                    9.8         10.2
5b. Without reverse cycle, with louvered sides, and 28,000            9.8          9.8     [dagger]     [dagger]
 Btu/h or more..............................................                                    9.8         10.2
6. Without reverse cycle, without louvered sides, and less           10.2         10.4  ...........  ...........
 than 6,000 Btu/h...........................................
7. Without reverse cycle, without louvered sides, and 6,000          10.2         10.4  ...........  ...........
 to 7,999 Btu/h.............................................
8a. Without reverse cycle, without louvered sides, and 8,000          9.7          9.8  ...........  ...........
 to 10,999 Btu/h............................................
8b. Without reverse cycle, without louvered sides, and                9.7          9.8  ...........  ...........
 11,000 to 13,999 Btu/h.....................................
9. Without reverse cycle, without louvered sides, and 14,000          9.7          9.8  ...........  ...........
 to 19,999 Btu/h............................................
10. Without reverse cycle, without louvered sides, and             ** 9.7       ** 9.8  ...........  ...........
 20,000 Btu/h or more.......................................
11. With reverse cycle, with louvered sides, and less than           10.3         10.4  ...........  ...........
 20,000 Btu/h...............................................
12. With reverse cycle, without louvered sides, and less              9.7          9.8  ...........  ...........
 than 14,000 Btu/h..........................................
13. With reverse cycle, with louvered sides, and 20,000 Btu/          9.8          9.8  ...........  ...........
 h or more..................................................
14. With reverse cycle, without louvered sides, and 14,000            9.1          9.2  ...........  ...........
 Btu/h or more..............................................
15. Casement-Only...........................................          9.9           10  ...........  ...........
16. Casement-Slider.........................................         10.8         10.9  ...........  ...........
----------------------------------------------------------------------------------------------------------------
* Note that CEE SEHA does not specify tier levels in CEER, and tier levels are only specified for units in
  classes 1-5b.
** ENERGY STAR requires that units with cooling capacity greater or equal 28,000 Btu/h achieve 9.8 CEER. The
  aforementioned capacity range is part of product class 10 in the current rule.\10\
[dagger] The CEE SEHA room air conditioner specification defines two capacity ranges that cover the same range
  as product classes 5a and 5b: 20,000 Btu/h to 24,999 Btu/h or greater than 25,000 Btu/h. These do not match
  the capacity ranges defined by DOE: 20,000 Btu/h to 27,999 Btu/h or greater than 28,000 Btu/h.\11\

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

    \10\ ENERGY STAR guidelines are available at: 
www.energystar.gov/sites/default/files/specs/ENERGY%20STAR%20Version%203.1%20Room%20Air%20Conditioner%20Program%20Requirements.pdf.
    \11\ CEE SEHA room air conditioner guidelines are available at: 
http://library.cee1.org/sites/default/files/library/9296/CEE_ResApp_RoomAirConditionerSpecification_2003_Updated_Again.pdf.
---------------------------------------------------------------------------

    Issue E.2 DOE seeks input concerning efficiency levels to analyze 
for room ACs. Specifically, DOE seeks

[[Page 34853]]

information that may guide the definition of efficiency levels, 
including any additional voluntary certification programs or relevant 
foreign standards or programs.
    Issue E.3 DOE seeks input on appropriate maximum technologically 
feasible efficiency levels and the basis for why those levels should be 
selected.

F. Markups Analysis

    To carry out the life-cycle cost (LCC) and payback period (PBP) 
calculations, DOE needs to determine the cost to the residential 
consumer of baseline products that satisfies the currently applicable 
standards, and the cost of the more-efficient unit the consumer would 
purchase under potential amended standards. By applying a multiplier 
called a ``markup'' to the manufacturer's selling price, DOE is able to 
estimate the residential consumer's price.
    For the April 2011 Direct Final Rule, DOE based the distribution 
channels on data from AHAM. For room ACs, the main actors are 
manufacturers and retailers. Thus, DOE analyzed a manufacturer-to-
consumer distribution channel consisting of three parties: (1) The 
manufacturers producing the products; (2) the retailers purchasing the 
products from manufacturers and selling them to consumers; and (3) the 
consumers who purchase the products. DOE plans to use the same approach 
in the current rulemaking.
    As was done in the last rulemaking and consistent with the approach 
followed for other energy consuming products, DOE will determine an 
average manufacturer markup by examining the annual Securities and 
Exchange Commission (SEC) 10-K reports filed by publicly traded 
manufacturers of appliances whose product range includes room ACs. DOE 
will determine an average retailer markup by analyzing both economic 
census data from the U.S. Census Bureau and the annual SEC 10-K reports 
filed by publicly traded retailers.
    In addition to developing manufacturer and retailer markups, DOE 
will develop and include sales taxes to calculate appliance retail 
prices. DOE will use an Internet source, the Sales Tax Clearinghouse, 
to calculate applicable sales taxes.
    Issue F.1 DOE seeks input from stakeholders on whether the 
distribution channels described above are still relevant for room ACs. 
DOE also welcomes comments concerning its proposed approach to 
developing estimates of markups for room ACs.
    Issue F.2 DOE seeks recent data to establish the markups for the 
parties involved with the distribution of the product addressed in this 
notice.

G. Energy Use Analysis

    The purpose of the energy use analysis is to assess the energy 
savings potential of different product efficiencies. DOE uses the 
annual energy consumption and energy-savings potential in the LCC and 
PBP analyses to establish the savings in consumer operating costs at 
various product efficiency levels. In contrast to the DOE test 
procedure, which provides a measure of the energy use, energy 
efficiency or annual operating cost of a covered product during a 
representative average use cycle, the energy use analysis seeks to 
capture the range of operating conditions for room ACs in U.S. homes.
    To determine the field energy use of products that would meet 
possible standard levels, DOE proposes to use data from the Energy 
Information Administration's (EIA's) 2009 Residential Energy 
Consumption Survey (RECS), or the most recent such survey available 
from EIA.\12\ RECS is a national sample survey of housing units that 
collects statistical information on the consumption of and expenditures 
for energy in housing units along with data on energy-related 
characteristics of the housing units and occupants.
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    \12\ For information on RECS, see http://www.eia.doe.gov/emeu/recs/.
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    For the April 2011 Direct Final Rule, DOE used the data reported by 
RECS on the annual energy consumption (field energy consumption) for 
room air conditioning. The reported end-use quantities were not based 
on metering of individual appliances; rather, EIA used a regression 
technique to estimate how much of the total annual electricity 
consumption for each household can be attributed to each end-use 
category. The reported field energy consumption refers to the 
consumption of all of the room ACs in a home. RECS also reports the 
number of room ACs in the home. To estimate the energy consumption of a 
single room AC for this rulemaking, DOE divided the room AC energy use 
reported in RECS by the reported number of room ACs. For houses with 
both central air conditioning and room air conditioning, DOE scaled the 
energy use by using a relative use factor. Although in reality the 
utilization of each of the room ACs in a home may vary, the RECS data 
does not allow DOE to estimate such variation.
    In the April 2011 Direct Final Rule, DOE estimated that, based on 
stakeholder input, 12-percent of room AC shipments were utilized in 
commercial building applications. The Energy Information 
Administration's Commercial Buildings Energy Consumption Survey (CBECS) 
\13\ does not report annual energy consumption for room air 
conditioning, so DOE estimated the energy consumption using variables 
specific to each building in the sample and data on cooling degree-
days. For this rulemaking, DOE is considering using the same 
methodology to estimate energy use in commercial building applications.
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    \13\ For information on CBECS, see http://www.eia.gov/consumption/commercial/about.cfm.
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    DOE requests comment or seeks input from stakeholders on the 
following issues pertaining to the energy use analysis:
    Issue G.1 DOE requests stakeholder input regarding the impact of 
changes in CEER on cooling energy savings.
    Issue G.2 Data sources that DOE can use to characterize the 
variability in annual energy consumption of room ACs.
    Issue G.3 DOE requests stakeholder comment on whether a significant 
enough percentage of residential room ACs are utilized in commercial 
buildings to warrant considering their use in commercial applications.

H. Life-Cycle Cost and Payback Period Analysis

    The purpose of the LCC and PBP analysis is to analyze the effects 
of potential amended energy conservation standards on consumers of 
residential room AC products by determining how a potential amended 
standard affects the consumers' operating expenses (usually decreased) 
and total installed costs (usually increased).
    DOE intends to analyze data input variability and uncertainty by 
performing the LCC and PBP calculations on a representative sample of 
households from RECS and commercial buildings from CBECS for the 
considered product classes using Monte Carlo simulation and probability 
distributions. The analysis results are a distribution of results 
showing the range of LCC savings and PBPs for a given efficiency level 
relative to the baseline level.
    Inputs to the LCC and PBP analysis are categorized as: (1) Inputs 
for establishing the purchase expense, otherwise known as the total 
installed cost, and (2) inputs for calculating the operating expense. 
The primary inputs for establishing the total installed cost are the 
baseline consumer price, standard-level consumer price increases, and 
installation costs. Baseline consumer prices and standard-

[[Page 34854]]

level consumer price increases will be determined by applying markups 
to manufacturer price estimates. The installation cost is added to the 
consumer price to arrive at a total installed cost.
    In the April 2011 Direct Final Rule, DOE derived the installation 
costs from room AC data in RS Means. 76 FR 22454 (Apr. 21, 2011). DOE 
plans to use similar data sources for this rulemaking, with adjustments 
to reflect current-day labor and material prices as well as to scale 
installation cost for higher-efficiency products based on equipment 
weight and/or dimensions.
    Issue H.1 DOE seeks input on whether room AC installation costs 
will scale with equipment weight and/or dimensions.
    The primary inputs for calculating the operating costs are product 
energy consumption, product efficiency, electricity prices and 
forecasts, maintenance and repair costs, product lifetime, and discount 
rates.
    Repair costs are associated with repairing or replacing components 
that have failed in the appliance, whereas maintenance costs are 
associated with maintaining the operation of the equipment. In the 
April 2011 Direct Final Rule, DOE assumed a maintenance increase for 
the higher-capacity units due to more expensive product cost but no 
maintenance differences with higher efficiency units. 76 FR 22454 (Apr. 
21, 2011).
    Issue H.2 DOE seeks stakeholder input on the appropriateness to 
assume that changes in maintenance costs will be negligible for more-
efficient products.
    Repair costs are costs associated with a major repair during the 
lifetime of the product. In the April 2011 Direct Final Rule, DOE 
determined the costs of major repairs (e.g., compressor replacement) 
from RS Means and industry literature. 76 FR 22454 (Apr. 21, 2011). DOE 
also assumed that repair costs vary in direct proportion with the 
product price at higher efficiency levels as replacement costs for 
more-efficient components are likely to be greater than components in 
baseline products. Id.
    Issue H.3 DOE seeks stakeholder comment on the assumption that 
repair costs vary in direct proportion to product price and unit 
capacity.
    DOE measures LCC and PBP impacts of potential standard levels 
relative to a base case that reflects the market in the absence of 
amended standards. DOE plans to develop market-share efficiency data 
(i.e., the distribution of product shipments by efficiency) for the 
product classes DOE is considering, for the year in which compliance 
with any amended or new standards would be required. By accounting for 
consumers who already purchase more efficient products, DOE avoids 
overstating the potential benefits from potential standards.
    Issue H.4 DOE seeks stakeholder input and data on the fraction of 
room ACs that are sold above the minimum energy efficiency standards. 
DOE also requests information on expected trends in product efficiency 
over the next 5 years.

I. Shipments Analysis

    DOE uses shipment projections by product class and efficiency level 
in its analysis of the national impacts of potential standards, as well 
as in the manufacturer impact analysis.
    In the April 2011 Direct Final Rule, DOE developed a shipments 
model for room ACs driven by historical shipments data, which were used 
to build up a product stock and calibrate the shipments model. 76 FR 
22454 (Apr. 21, 2011). Shipments of each product class were projected 
for two market sectors that use these products: residential and 
commercial sectors.
    Issue I.1 DOE seeks stakeholder input and data showing the 
distribution of shipments by product class, and market sector.
    In the April 2011 Direct Final Rule, DOE modeled the decision to 
repair or replace equipment for existing owners and the impact that 
decision would have on the shipments model. 76 FR 22454 (Apr. 21, 
2011). DOE investigated how increases in product purchase price and 
decreases in product operating costs due to standards impact product 
shipments.
    Issue I.2 DOE seeks input and data on factors that influence a 
consumer's decisions to repair or replace failed products. In 
particular, DOE is seeking historical repair cost data as a function of 
efficiency.

J. National Impact Analysis

    The purpose of the national impact analysis (NIA) is to estimate 
aggregate impacts of potential efficiency standards at the national 
level. Impacts reported by DOE include the national energy savings 
(NES) from potential standards and the national net present value (NPV) 
of the total consumer benefits. The NIA considers lifetime impacts of 
potential standards on room ACs shipped in a 30-year period that begins 
with the expected compliance date for new or amended standards.
    To develop the NES, DOE calculates annual energy consumption of 
products in residential and commercial building stock for the base case 
and each standards case. To develop the national NPV of consumer 
benefits from potential standards, DOE calculates national annual 
energy expenditures and annual product expenditures for the base case 
and the standards cases. DOE calculates total annual energy 
expenditures using data on annual energy consumption in each case, 
forecasted average annual energy prices, and shipment projections. The 
difference each year between operating cost savings and increased 
product expenditures is the net savings or net costs.
    A key component of DOE's estimates of NES and NPV is the product 
energy efficiency forecasted over time for the base case and for each 
of the standards cases. In the April 2011 Direct Final Rule, DOE based 
projections of base-case shipment-weighted efficiency (SWEF) for the 
room AC product classes on growth rates determined from historical data 
provided by AHAM. 76 FR 22454 (Apr. 21, 2011). For this rulemaking, DOE 
plans on considering recent trends in efficiency and input from 
stakeholders to update product energy efficiency forecasts.
    Issue J.1 DOE seeks historical SWEF data for room ACs by product 
class and stakeholder input regarding future trends in efficiency.

K. Manufacturer Impact Analysis

    The purpose of the manufacturer impact analysis (MIA) is to 
estimate the financial impact of potential energy conservation 
standards on manufacturers of room ACs and to evaluate the potential 
impact of such standards on employment and manufacturing capacity. The 
MIA includes both quantitative and qualitative aspects. The 
quantitative part of the MIA primarily relies on the Government 
Regulatory Impact Model (GRIM), an industry cash-flow model used to 
estimate a range of potential impacts on manufacturer profitability. 
The qualitative part of the MIA addresses a proposed standard's 
potential impacts on manufacturing capacity and industry competition, 
as well as factors such as product characteristics, impacts on 
particular subgroups of firms, and important market and product trends.
    As part of the MIA, DOE intends to analyze impacts of potential 
energy conservation standards on small business manufacturers of 
covered products. DOE intends to use the Small Business 
Administration's (SBA) small business size standards to determine 
whether manufacturers qualify as small businesses. The size standards 
are listed by North American Industry Classification System (NAICS) 
code and

[[Page 34855]]

industry description.\14\ Manufacturing of room ACs can be classified 
under either NAICS 333415, ``Air-Conditioning and Warm Air Heating 
Equipment and Commercial and Industrial Refrigeration Equipment 
Manufacturing'' or NAICS 335228, ``Other Major Household Appliance 
Manufacturing.'' The SBA sets a threshold of 750 or 500 employees or 
less for an entity to be considered as a small business for these 
categories. These employee threshold would include all employees in a 
business's parent company and any other subsidiaries.
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    \14\ Available online at: www.sba.gov/sites/default/files/Size_Standards_Table.pdf.
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    DOE used publically available information to attempt to identify 
any small business that manufactures room ACs. DOE cross-referenced the 
manufacturers listed in DOE's Compliance Certification Management 
System (CCMS) with individual company Web sites and market research 
tools (e.g., Hoovers reports). DOE's initial research indicates that no 
small businesses currently manufacture room ACs.
    Issue K.1 DOE requests comment on any small business manufacturers 
of room ACs that it should consider in its analysis.

III. Submission of Comments

    DOE invites all interested parties to submit in writing by August 
3, 2015, comments and information on matters addressed in this notice 
and on other matters relevant to DOE's consideration of new or amended 
energy conservations standards for room ACs. After the close of the 
comment period, DOE will begin collecting data, conducting the 
analyses, and reviewing the public comments, as needed. These actions 
will be taken to aid in the development of a NOPR for room ACs if DOE 
decides to amend the standards for such products.
    DOE considers public participation to be a very important part of 
the process for developing test procedures and energy conservation 
standards. DOE actively encourages the participation and interaction of 
the public during the comment period in each stage of the rulemaking 
process. Interactions with and between members of the public provide a 
balanced discussion of the issues and assist DOE in the rulemaking 
process. Anyone who wishes to be added to the DOE mailing list to 
receive future notices and information about this rulemaking or would 
like to request a public meeting should contact Ms. Brenda Edwards at 
(202) 586-2945, or via email at Brenda.Edwards@ee.doe.gov.

    Issued in Washington, DC, on June 9, 2015.
Kathleen B. Hogan,
Deputy Assistant Secretary for Energy Efficiency, Energy Efficiency and 
Renewable Energy.
[FR Doc. 2015-15001 Filed 6-17-15; 8:45 am]
 BILLING CODE 6450-01-P
```