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UNITED STATES OF AMERICA

+ + + + +

DEPARTMENT OF ENERGY

+ + + ++

FRAMEWORK PUBLIC MEETING FOR RESIDENTIAL

CENTRAL AIR CONDITIONERS AND HEAT PUMPS

+ + + + +

Thursday, June 12, 2008

+ + + + +

 The meeting came to order at 9:00 a.m.

in Room 1E-245 of 1000 Independence Avenue,

S.W., Washington, D.C. Douglas Brookman,

Facilitator, presiding.

PRESENT:

WES ANDERSON US DEPARTMENT OF ENERGY

MICHAEL KIDO US DEPARTMENT OF ENERGY

ANDREW DELASKI APPLIANCE STANDARDS

 AWARENESS PROJECT

ANITRA GASSETT MITSUBISHI ELECTRIC

BILL MCCULLOUGH LENNOX INTERNATIONAL,

 INC.

BRIAN DOUGHERTY NATIONAL INSTITUTE OF

 STANDARDS AND TECHNOLOGY

BRICE BOWLEY GENERAL ELECTRIC

 APPLIANCES

CARL BERGT RHEEM MANUFACTURING CO.

CHARLIE MCCRUDDEN AIR-CONDITIONING

 CONTRACTORS OF AMERICA

CRAIG MESSMER UNICO INC.

DANIEL J. ARNOLD NORDYNE

DONALD M. BRUNDAGE P.E. SOUTHERN COMPANY

DOUGLAS BROOKMAN FACILITATOR

EDWARD SCHMIDT NORTHEAST ENERGY

 EFFICIENCY PARTNERSHIPS

ERIC STAS US DEPARTMENT OF ENERGY

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PRESENT (continued):

FRED J. KELLER CONSULTANT FOR

 CARRIER CORPORATION

GARY FERNSTROM PACIFIC GAS AND ELECTRIC

 COMPANY

GREGORY ROSENQUIST ERNEST ORLANDO LAURENCE

 BERKELEY NATIONAL

 LABORATORY

HARVEY SACHS AMERICAN COUNCIL FOR AN

 ENERGY EFFICIENT ECONOMY

ANDREW HOLLIDAY AIR-CONDITIONING

 CONTRACTORS OF AMERICA

HUNG PHAM EMERSON CLIMATE

 TECHNOLOGIES, INC.

JAMES RABA US DEPARTMENT OF ENERGY

JAMES WALTERS AIR-CONDITIONING,

 HEATING, AND

 REFRIGERATION INSTITUTE

JAMES LYONS NEWPORT PARTNERS, LLC

JIM CRAWFORD TRANE

JOHN FOX UNICO, INC.

JOHN MANDYCK CARRIER CORPORATION 

JOSEPH MATTINGLY AIR-CONDITIONING,

 HEATING, & 

 REFRIGERATION INSTITUTE

KARIM AMRANE AIR-CONDITIONING,

 HEATING, & REFRIGERATION

 INSTITUTE

KEN SAGAN NATIONAL ASSOCIATION OF

 HOME BUILDERS

KYLE GILEY LENNOX INTERNATIONAL

 INC.

LANCE DELAURA SOUTHERN CALIFORNIA GAS

 COMPANY 

LANE BURT NATIONAL RESOURCES

 DEFENSE COUNCIL

LAURA VAN WIE MCGRORY ERNEST ORLANDO LAWRENCE

 BERKELEY NATIONAL

 LABORATORY

MARK STANGA DAIKIN INDUSTRIES, LTD

MICHAEL CHRISTOPHER NAVIGANT CONSULTING

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PRESENT (continued):

MICHAEL W. WOODFORD AIR-CONDITIONING,

 HEATING & REFRIGERATION

 INSTITUTE

MICHAEL MCCABE US DEPARTMENT OF ENERGY

MIKE RIVEST NAVIGANT CONSULTING

PATRICK O'CONNOR KENT & O'CONNOR

 INCORPORATED

PAUL DOPPEL MITSUBISHI ELECTRIC

PAUL KYLLO SOUTHERN CALIFORNIA

 EDISON

ROBERT WILKINS DANFOSS, INC.

RONALD LEWIS US DEPARTMENT OF ENERGY

SRIRAM SOMASUNDERAM PACIFIC NORTHWEST

 NATIONAL LABORATORY

STEVE ROSENSTOCK EDISON ELECTRIC

 INSTITUTE

TALBOT GEE HEATING, AIR-

 CONDITIONING &

 REFRIGERATION

 DISTRIBUTORS

 INTERNATIONAL

TED POPE ENERGY SOLUTIONS

TIMOTHY BALLO EARTHJUSTICE

TOM ROBERTS CFM DISTRIBUTORS

VINCE MUCCIOLA NATIONAL COMFORT

 PRODUCTS

W. VANCE PAYNE INSTITUTE OF STANDARDS

 AND TECHNOLOGY

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C-O-N-T-E-N-T-S

AGENDA ITEM PAGE

Welcome . . . . . . . . . . . . . . . . . . . .5

Introduction and Agenda Review. . . . . . . . .7

Opening Remarks from Interested 

 Parties. . . . . . . . . . . . . . . . . . . 13

Rulemaking Overview . . . . . . . . . . . . . 63

Test Procedures . . . . . . . . . . . . . . .104

Market and Technology Assessment, 

 Screening Analysis, Engineering 

 Analysis, and Preliminary 

 Manufacturer Impact Analysis. . . . . . . .141

Lunch . . . . . . . . . . . . . . . . . . . .209

Energy Use Analysis, Markups for

 Equipment Price Determination, and

 Life-Cycle Cost and Payback Period

 Analysis. . . . . . . . . . . . . . . . . .265

Shipments Analysis and National

 Impact Analysis . . . . . . . . . . . . . .346

Notice of Proposed Rulemaking Analysis. . . .380

Discussion of Issues and

 Closing Remarks . . . . . . . . . . . . . .382

Adjourn

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1 P R O C E E D I N G S

2 (9:03 a.m.)

3 WELCOME

4 MR. BROOKMAN: Good morning,

5 everybody. Welcome. 

6 This is the framework public

7 meeting for residential central air

8 conditioners and heat pumps. 

9 My name is Doug Brookman, and I'll

10 be helping to facilitate this meeting along

11 with all of you. 

12 We are fortunate this morning to

13 have many representatives from the Department

14 of Energy. Thanks to all of you for being

15 here on time so we can get a start on time. 

16 Do you wish to make welcoming

17 remarks here at the outset? 

18 Ron Lewis.

19 MR. LEWIS: Good morning, everyone,

20 and thank you for being here. 

21 First I want to note that in

22 trying to accommodate some requests to be sure

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1 to get this done before the ASHRAE conference,

2 when everybody would be tied up with that, we

3 hurried as best we could, and it didn't give

4 you much notice by the time we got it out the

5 door, and we apologize for that. 

6 We were doing our best trying to

7 accommodate the requests, and unfortunately it

8 didn't leave as much advance notice time as we

9 would like. And sorry for that; I apologize

10 for that. 

11 But we are glad you are here. And

12 we're glad we've got such good turnout. And

13 this is a very important rulemaking, and we

14 are very interested in your input, and getting

15 everything that you can give us for input to

16 make the right decision. And we look forward

17 to a very active day and good dialogue. 

18 And we again thank you for being

19 here. 

20 MR. BROOKMAN: Okay. So it's our

21 tradition to ask each person to introduce him

22 or herself. And say your name and

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1 organizational affiliation. 

2 And not all of this will be

3 captured in the record, but we have a

4 registration list, so we will know who is

5 here. 

6 But if you'd simply, I'm going to

7 go around the room, say your name and

8 organizational affiliation please. 

9 (Attendees introduce themselves)

10 INTRODUCTION AND AGENDA REVIEW

11 MR. BROOKMAN: Thank you. 

12 Okay, thanks again to all of you

13 for being here on time, and for showing up at

14 this meeting. 

15 The Department of Energy counts on

16 this kind of consultation and participation to

17 figure out what to do, how to get this right. 

18 And so they really appreciate your being here,

19 as do I. 

20 All of you have a copy of the

21 agenda in your packet. In the packet also is

22 a whole series of very colorful descriptive

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1 slides. We are going to be going through

2 those as the day proceeds here. 

3 There are also some statements,

4 some submissions for the record from

5 individuals for your consideration. 

6 I am going to take a quick run

7 through the agenda here, and then we are going

8 to proceed with the day. 

9 I'm doing the first element there,

10 introduction and agenda review, right now. 

11 Following this agenda review, I am going to

12 provide, we are going to provide, an

13 opportunity for any individual that wishes to

14 do so to make brief opening remarks about

15 issues that are of key concern to you. 

16 We hope you will keep them brief. 

17 We don't intend for you to read a lengthy

18 statement into the record. There are other

19 avenues to do that. And I guess four or five

20 individuals, six individuals, have asked the

21 department to speak, so we are going to

22 recognize those individuals first. Then any

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1 others that wish to chime in, we'll ask you to

2 do so at that point. 

3 Following those opening remarks,

4 we will have a rulemaking overview, and then

5 we will go from there to a description of test

6 procedures. We'll take a break mid-morning,

7 around about 10:45 or so. 

8 Following the mid-morning break

9 we'll have market and technology assessment

10 screening analysis, engineering analysis, and

11 preliminary manufacturing impact analysis

12 descriptions. And all that information will

13 be in the packet that is provided to you,

14 those colorful slides. 

15 We'll have lunch today around

16 about noon. And you are on your own for

17 lunch. When we get to it, we'll describe that

18 more fully. 

19 Following lunch, energy use

20 analysis; markups for equipment price

21 determination and lifecycle costs and payback

22 period analysis; and other series of detailed

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1 descriptions on these analyses, plural. 

2 And following that, shipments

3 analysis, national impact analysis. We'll

4 take a break mid-afternoon. And then we'll

5 also have more description on the notice of

6 proposed rulemaking analyses collectively. 

7 Round about 3:30 this afternoon,

8 if we get there that fast þ there is a lot of

9 content here þ if we get there that fast,

10 there is yet another opportunity for any of

11 you to make closing summary kind of remarks,

12 things you wish to emphasize to the

13 department's benefit. 

14 Questions and comments about the

15 agenda? 

16 I'd ask for your consideration, as

17 we go along today, what I think is not much

18 more than common courtesy really. Please

19 speak one at a time. Please say your name for

20 the record. You don't need to say your

21 organizational affiliation every time. You

22 can just say your name, that will be enough. 

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1 This gentleman here, Eric, will

2 have a complete transcript of this meeting,

3 court reporter present. So please say your

4 name for the record. 

5 Keep the focus here if you would

6 please. Turn your cell phones on silent, if

7 you would. If you need to have a conversation

8 with someone next to you that is going to last

9 more than about 20 or 30 seconds, please take

10 it out of the room. It's disruptive. 

11 And I'm going to ask you as best

12 you can to be concise, to share the air time. 

13 There are a lot of people here, and there are

14 a lot of things people want to say. We want

15 to hear all of it. 

16 I hope that you seize this

17 opportunity today. This is your opportunity

18 to start to influence these proceedings in a

19 way that benefits you. So please do that. 

20 And finally I'm going to be cuing

21 people to speak as best I can by name. I also

22 wish to encourage follow on comments. It is

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1 helpful for the department to hear the point

2 and counterpoint. So that is a little bit

3 challenging for me and for you, but we can

4 make it work. 

5 So please help me to make that

6 work. We are going to be both cuing people

7 this week, and encouraging follow on comments

8 as well. 

9 I think that's all I've got here

10 at the outset. I already said that the

11 general format is as follows. These slides,

12 which you have copies of, we will have a lead

13 presenter, and that lead presenter will be

14 going through the slides one by one, and

15 occasionally there is a pause with specific

16 questions. 

17 So there is an opportunity for

18 question, answer and comment as we go along,

19 and that will be obvious as we look at the

20 slides. 

21 Questions, comments, here at the

22 outset?

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1 OPENING REMARKS FROM INTERESTED PARTIES

2 MR. BROOKMAN: Okay, do you have

3 the list? So these individuals have asked to

4 speak here at the outset, brief introductory

5 remarks, perhaps summary remarks about issues

6 that matter to you. 

7 And the department has listed them

8 alphabetically. And Karim Amrane is the

9 first person. 

10 MR. AMRANE: Good morning. My name

11 is Karim Amrane, and I am vice president of

12 regulatory and research at The Air13 Conditioning, Heating and Refrigeration

14 Institute. 

15 The AHRI is a national trade

16 association of manufacturers of residential

17 and commercial HVAC equipment. HR 350 member

18 companies account for more than 90 percent of

19 the residential and commercial air20 conditioning, space heating, water heating and

21 commercial refrigeration equipment

22 manufactured in North America. 

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1 AHRI appreciates the opportunity

2 to provide input on the framework document for

3 residential central air-conditioners and heat

4 pump. 

5 Our members have worked very hard

6 over the past 20 years to improve the energy

7 efficiency of residential central air8 conditioners and heat pumps. Today central

9 air-conditioners and heat pumps are over 50

10 percent more efficient than what they were in

11 the early `80s. 

12 These achievements are remarkable,

13 and gives credit to an industry that has been

14 pro-active in addressing environmental issues

15 such as ozone depletion and global warming,

16 global climate change. 

17 AHRI looks forward to a full and

18 open rulemaking process. We believe that the

19 advanced notice of proposed rule is an

20 important step that should be included in the

21 rulemaking process as it offers an early

22 opportunity for stakeholders to provide

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1 feedback, comments and data to DOE.

2 We also look forward to a more

3 thorough and rigorous analysis by DOE. We

4 have seen anomalies during the last rulemaking

5 on residential central air and heat pumps that

6 if not corrected for this rulemaking would

7 result in a flawed standard. 

8 DOE needs to step back and review

9 past analysis to understand where improvements

10 need to be made. For example there is

11 evidence that the incremental cost of $335

12 between the 10 and 13th SEER, suite air13 conditioner, and DOE predicted was severely

14 underestimated. 

15 Further, industry data shows that

16 equipment sales were down by 79 percent in

17 2007, while part sales increased significantly

18 suggesting that many consumers have opted to

19 repair older equipment rather than purchase

20 new products. 

21 At the same time sales of full

22 air-conditioners have significantly increased

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1 since 2006 when the 13 SEER standard became

2 effective. 

3 These are indications that the

4 last energy conservation standard for

5 residential central air and heat pumps were

6 not economically justified for many consumers.

7 It also means that the energy

8 saving estimated by the DOE were probably

9 overstated as well. 

10 AHRI intends to submit for the

11 record data that will support its claims. 

12 In moving forward we urge the

13 department to fully consider the impact of

14 climate change legislation being debated on

15 Capitol Hill. The bill before the Senate

16 would set a hydrofluorocarbon HFC cap at 267

17 million metric tons CO2 equivalent in 2016

18 when this rule takes effect, some 39 percent

19 below estimated industry demand. 

20 On the other hand, higher energy

21 efficiency, air-conditioners and heat pump,

22 require more refrigerant charge because of

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1 large operators and condensers. 

2 As an example new 13 SEER products

3 require on average 20 to 30 percent more

4 refrigerant charge than the 10 SEER unit that

5 they have replaced. Therefore it is

6 imperative that DOE carefully study the impact

7 of climate change legislation on the

8 availability and price of HFC refrigerants. 

9 There is a real possibility that price will

10 skyrocket, and that not enough refrigerants

11 would be available to meet the new energy

12 conservation standard. 

13 Finally if adopted by DOE,

14 regional standard for central air-conditioners

15 and heat pump would present unique enforcement

16 challenges. While the current minimum

17 national standard has been effectively

18 enforced since the enactment of NAECA by the

19 industry, through its voluntary certification

20 program, the same will not be possible if

21 regional standards are promulgated. 

22 Any regional standard above the

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1 base national standard will require

2 enforcement of product distribution and

3 installation. It is critical for the

4 development of a successful enforcement plan

5 that all interested parties such as

6 manufacturers, distributors, contractors, and

7 code officials be involved in the discussion. 

8 AHRI looks forward to working with

9 the department and others in establishing a

10 workable and credible enforcement plan. 

11 Thank you for the opportunity to

12 present our views. We will provide more

13 detailed comments in writing. 

14 MR. BROOKMAN: Thank you. And the

15 department of course appreciates details and

16 specifics just as you describe there. That is

17 helpful today. 

18 Paul, Paul Doppel, Mitsubishi

19 Electric. 

20 MR. DOPPEL: As þ speaking today,

21 I'm speaking on behalf of Mitsubishi Electric

22 and the ductless products that we offer to the

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1 marketplace. 

2 Three things that are important

3 for us in this rulemaking. One is, we would

4 still like to have consideration for a

5 separate product class for the ductless one to

6 one products. Again, they are significantly

7 different in application from the central air8 conditioning systems. 

9 There is another sort of caveat to

10 that in that most of the ductless products

11 today have incorporated an advanced technology

12 in compressors with inverter-driven

13 compressors, which was not on the list of

14 technologies being looked at by DOE, I think

15 it was on page 29 of the framework document. 

16 We believe that the inverters and

17 compressors add a whole new dimension to how

18 comfort is provided. I went into a lot more

19 detail on that in my written comments. 

20 But because of this inverter21 driven compressor technology, testing should

22 be considered to be done in a different

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1 fashion. We have not explored this with any

2 test laboratories yet, but one concept that we

3 have is maybe a continuous test, changing the

4 temperatures in the test rooms, and allowing

5 the system to adjust to the temperature

6 changes, thereby using its own controls to

7 change the environment. 

8 Currently, there are a lot of

9 inconsistencies in the test procedures. In

10 one test procedure ductless products are

11 required to do a pre-purge and a post-purge,

12 which central air conditioners are not

13 required to do. 

14 All the controls of the ductless

15 products are disenabled, and the products are

16 forced to be run like a simple unitary on and

17 off system, when these products are made to

18 run over a continuous span. So if there is

19 not a separate test procedure, then these

20 inconsistencies need to be corrected. 

21 The multi-splits are a different

22 class. They have been incorporated in the

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1 1230 standard with the variable refrigerant

2 flow products. And those products, because of

3 the way their capacities and the way they can

4 be applied are more comparable to the central

5 air conditioning systems. 

6 However, there is one very severe

7 penalty that they have to go through with

8 testing, and that is that they are required to

9 turn off one of the indoor units anytime the

10 test is þ or the compressor is run at minimum

11 speed. 

12 If you compare this to if you had

13 a central air-conditioning system that was

14 also variable speed, there is no requirement

15 for that central air-conditioning system to

16 block any part of the coil, to do anything

17 other than run the system at normal. 

18 But you have a multi-split, and

19 again it is required to turn one of the indoor

20 units off. So you are þ it's being tested

21 unfairly compared to another system. And we

22 feel that this inconsistency needs to be

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1 corrected. 

2 And we can provide information on

3 the differences we have seen on the testing

4 previously, and with this new requirement. So

5 we think that needs to be corrected also. 

6 So just quickly in summary, we

7 still would like to see a separate product

8 class for the one to ones. We'd like to see

9 the testing inconsistencies done away with in

10 that. 

11 We'd like more consideration being

12 given to the converter-driven compressor

13 systems, and testing inconsistencies for the

14 multi-splits, we'd like to see that corrected

15 also. 

16 MR. BROOKMAN: Thank you. 

17 MR. DOPPEL: Thank you. 

18 MR. BROOKMAN: Talbot?

19 MR. GEE: Sure. Since the written

20 copies were provided, we'll spare everybody a

21 line by line reading of our comments. 

22 I'm vice president of HARDI, which

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1 is the Heating-air-conditioning-refrigeration

2 distributors, international. We represent

3 over 1,000 companies, 450 of which are

4 domestic. Wholesale distributors of heating,

5 ventilation, air-conditioning, refrigeration

6 products, accessory supplies, and controls

7 too; a pretty diverse group. 

8 And frankly this is a pretty

9 unprecedented involvement for us, which is

10 part of the reason why our comments were made

11 a little longer, because we felt somewhat the

12 need to introduce ourselves to anybody who may

13 be seeing those. 

14 But unprecedented due to the fact

15 that HARDI or its members have not been overly

16 involved in these rulemaking proceedings

17 before, but never before have we seen one that

18 maybe so directly could affect our segment of

19 the channel. 

20 We feel it's important to point

21 out that our members recently polled showed an

22 average of 46 percent increase in base unitary

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1 prices of central air-conditioning and heat

2 pump equipment since the last increase in the

3 standard. And while that is attributed to a

4 whole lot of different things, the fact

5 remains that, that is a significant increase

6 in base model prices. 

7 Over that same time there has been

8 an average 12 percent decrease in unitary

9 sales by our members. And as referenced by

10 AHRI, we are seeing an increased business in

11 repairs of existing systems as versus

12 replacement. 

13 Throwing that all in, our biggest

14 concern is that the DOE fully considers what

15 we've already seen in our industry before

16 making any drastic changes going forward,

17 because we are already having enough barriers

18 and obstacles to selling new higher efficiency

19 HVAC systems right now, and we have serious

20 concerns that are effectively getting closer

21 and closer to pricing out the average American

22 consumer, homeowner. The base level prices

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1 have increased so much, and the complexity of

2 the installations have gotten more involved,

3 too, to where there are serious disincentives

4 to replacing systems, and keeping on line long

5 old systems, legacy systems that are obviously

6 much less efficient than anything we've rolled

7 off the assembly line recently. 

8 We have serious concerns about the

9 limitless unknowns and our belief that there

10 is a major enforcement issue with any efforts

11 to regionalize these standards. 

12 We have worked very closely with

13 contractors organizations, and NATE, the

14 technical organizations, to try to help raise

15 the professionalism and the stature of the

16 best installers in this industry. And our

17 concern is, regionalizing in an unenforceable

18 environment will actually encourage all of

19 their competitors who may not be following all

20 the letters of the law. And it would really

21 set up an opportunity for bootlegging and

22 other activities that are frankly market

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1 driven, because consumers will be demanding

2 lower cost, lower installation cost. And to

3 some they would view that they were serving

4 their customers by working maybe outside of

5 what the written law may be at that given

6 point in time. 

7 Secondly, we have some concerns

8 about what the ramifications of

9 regionalization might be on incentive

10 programs, not the least of which would be

11 Energy Star. How would these programs adapt

12 to a regional system where currently right now

13 14 SEER and 8.2 Energy Star levels, but if

14 those are not þ if there are higher minimums

15 in certain regions, what does Energy Star do

16 to address that?

17 Our members have benefitted

18 greatly from the Energy Star label, and do

19 everything we can to try to maintain the

20 integrity of that Energy Star label, and we do

21 have serious concerns that that integrity

22 could be in question if you regionalize it. 

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1 And there are actually different Energy Star

2 labels across the country. 

3 I would also say too that the

4 implications very specific to wholesale

5 distributors with unitary central AC products

6 relates back to the physical size of the

7 products. As they get higher in efficiency,

8 they increase in size. 

9 There are basic logistic issues

10 that our distributors have had to deal with,

11 and it's added cost to the channel, not to

12 mention difficulties oftentimes for the

13 installers as well. So we also want to

14 reinforce that for the DOE's consideration,

15 because any look at increasing the standard or

16 anything like that is going to relate back to

17 an increase in the physical size, increase raw

18 materials, increase refrigerant charge, and we

19 do have concerns about long-term availability

20 of our new replacement refrigerants. 

21 So in summary, we are happy to be

22 here. We are anxious to be involved in all of

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1 this. But we felt it was important to kind 

2 of introduce ourselves somewhat because we

3 have not done this before, and we look forward

4 to working to highlight the very unique issues

5 to wholesale distributors in the middle of

6 this channel.

7 Thank you. 

8 MR. BROOKMAN: Thank you. 

9 The next person that requested to

10 speak is Charley McCrudden. 

11 MR. McCRUDDEN: In the interests of

12 brevity I think I am going to just quickly

13 review my comments. 

14 ACCA, we support the ANOPR phase

15 as part of this process. We feel that is

16 critical to finding the best possible solution

17 that is out there. 

18 And secondly I just want to say

19 that we are very concerned with the

20 implementation and enforcement of regional

21 standards. This is one that will come down on

22 our members. We are the last people touching

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1 the box. And as Talbot highlighted, we are

2 concerned with moonlighters with illegal

3 contractors who can bring what is essentially

4 a perfectly legal product outside an imaginary

5 border, and undercutting, and playing on an

6 unlevel playing field against our members. 

7 We are very hopeful that we can

8 find þ we can come to a good responsible

9 conclusion to this rulemaking on time. 

10 And we are happy to be here, and

11 looking forward to making contributions to

12 this process.

13 MR. BROOKMAN: Thank you very much.

14 Patrick O'Connor. 

15 MR. O'CONNOR: Thank you. 

16 MR. BROOKMAN: Thank you. 

17 MR. O'CONNOR: Thank you very much. 

18 I appreciate the opportunity to speak for a

19 couple of minutes. 

20 I represent the American Supply

21 Association. ASA is a national organization

22 serving wholesale distributors and their

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1 suppliers in the plumbing, heating, cooling

2 and pipe valve and fitting industries. Our

3 members are the distributors and manufacturers

4 and manufacturers' reps of many products that

5 DOE regulates, including central air6 conditioning systems and the heat pumps. 

7 Our two principal concerns, issues

8 that we'll be commenting on in writing in

9 response to the framework document and

10 throughout the rulemaking, is the impact of

11 the regional standards on the distribution

12 channel. 

13 The framework document recognizes

14 that there are three different distribution

15 channels essentially that move products from

16 manufacturers to consumers. Our feeling is

17 that regional standards are going to create

18 distortions in those distribution channels. 

19 Currently we have what I would

20 call a national distribution channel, three

21 national channels. With regional standards,

22 we create now a series of sub-distribution

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1 channels. 

2 Those channels are going to be

3 subject to price sensitivities. Because

4 regional standards are going to be based on

5 what I would call artificial state boundaries,

6 there is nothing to prevent product from

7 moving across those state boundaries, moving

8 from one region into another region. 

9 Particularly there are price sensitivities. 

10 We would hope that DOE would look

11 at those price sensitivities. 

12 There is also the issue of

13 enforcement. Regional standards do not ensure

14 that there will be enforcement of those

15 standards within a region. We would expect,

16 for example, say in the Northeast, that there

17 will be some states in New England that will

18 choose not to enforce a regional standard in

19 those states. 

20 Lack of enforcement again creates

21 distortions in the distribution channel. And

22 we would hope that DOE would look at that in

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1 your economic analysis of regional standards. 

2 We will be trying to assist you with that in

3 the comments that we submit. 

4 I will say that we will be under

5 the gun in trying to meet your July deadline

6 to comment on the framework document. 

7 Therefore I would echo the earlier document

8 that we would support the ANOPR process, to

9 provide for a more thorough robust addressing

10 of some of these key economic issues. 

11 Thank you very much. 

12 MR. BROOKMAN: Thank you very much.

13 Tom Roberts. 

14 MR. ROBERTS: Tom Roberts with cfm

15 Distributors. I'm sure some of you are

16 probably wondering where is there a

17 distributor here. Why is there a small

18 distributor from the Midwest here. 

19 But I guess maybe that is the most

20 interesting part is that this proposed

21 rulemaking affects people like me as you have

22 heard from my counterparts possibly as much or

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1 more than anyone else. 

2 I also serve as chair of the HVAC

3 systems council for HARDI right now. So I

4 represent also those people. 

5 And the demographics or the size

6 description of our company just happens to

7 about hit the average distributor in the U.S.

8 who performs this function. 

9 And I too am going to summarize my

10 comments so I don't torture you with a slow

11 reading. But several things that really occur

12 to us are that the role of distribution,

13 whether it's an independent distributor or a

14 company owned distribution function, performs

15 that function of the dissemination of the

16 equipment; the proper matchup of the

17 equipment; and in effect the application of

18 split-system components. 

19 And that role is somewhat complex,

20 and although we pride ourselves on having

21 relatively fast moving product through our

22 channel, we have long tails of slow moving

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1 items that last in the channel, and for us to

2 transmit the change to the contractor base is

3 always expensive, and it's always a cost that

4 seems to get overlooked. 

5 The distribution role, and the

6 change effect in that role. So those costs I

7 think really need to get properly accounted

8 for. 

9 Then we are also concerned, very

10 concerned, about the impact of the potential

11 for climate change legislation on the

12 availability of refrigerants, and what that

13 does to higher efficiency equipment. 

14 We are very concerned about

15 regional standards. I think they make just

16 about as much sense as a state-by-state CAF

17 requirement. Why not have a corporate average

18 fuel requirement for each state?

19 It just þ it's one of those ideas

20 that sounds like a good idea until you look at

21 a climate change map and realize that the

22 shapes on that map are a whole lot different

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1 than the state borders. 

2 So we would like to find an

3 alternative to that because we don't believe

4 that is workable for all the reasons that Lou

5 stated previously. 

6 And then the price, the pure

7 price. I go out on projects everyday with my

8 contractor customers, and I'm customers of

9 most of the manufacturers here. And I can

10 tell you that consumers are making bad choices

11 today. It's not possibly solely the cause of

12 the previous rulemakings, but because of the,

13 in our case, 45 percent increase in base model

14 costs, there are consumers that are making the

15 decision to continue to use a product that but

16 for that cost increase they would have

17 replaced with a much more efficient system at

18 a lower cost. And they are prohibited for

19 doing that for obvious reasons with their

20 household budget or business budget. 

21 And so they are continuing to use

22 a product that while on paper it may look like

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1 that old 9 SEER or 8 SEER or 10 SEER unit, it

2 isn't that bad. That 16-year-old 8 SEER, or

3 9 SEER or 10 SEER unit may be operating at 5

4 SEER or 6 SEER or 7 SEER. 

5 So when you really drill down to

6 the street level and see what's happening, we

7 put people in the position to make bad

8 decisions if we are not careful. And that

9 concerns me a lot. 

10 And unfortunately, the people who

11 can least afford to pay those continuing

12 energy bills are the ones that are making the

13 worst decisions. 

14 We look for ways to sell high

15 efficiency equipment. There is no one in the

16 channel that wants to sell high efficiency

17 equipment more than the distribution side. We

18 make higher gross margins on higher efficiency

19 equipment, so why wouldn't we? 

20 However, we see this tradeoff. 

21 I'll give you one specific example. One of

22 the more popular systems right now for the

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1 clever consumer or contractor is a hybrid

2 system utilizing an electric heat pump and a

3 fossil fuel backup source. 

4 And yet if you take þ if you look

5 at the example of making a minimum efficiency

6 requirement or a regional standard that

7 increases the efficiency of say the furnace

8 from an 80 percent to a 90 percent furnace,

9 even though that is not the subject of this

10 rulemaking, that may preclude the customer

11 from putting the hybrid system in if he only

12 has a choice of a higher cost component, a

13 minimum efficiency standard within the system.

14 So he is back to putting in a

15 system that actually will use more energy

16 because he has priced himself out þ the

17 regional standard or national standard has

18 priced him out from putting in a flexible fuel

19 system. And that we're really concerned

20 about, because that system has become very

21 popular and in the absence of a national

22 energy policy having a consumer make their own

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1 energy policy based on flexibility is a really

2 important decision. 

3 So again, we are interested in

4 being a part of the process, and we know that

5 the desire for higher standards is well

6 intended. But we think that there are

7 unintended consequences of these decisions

8 that aren't fully understood at the

9 policymaking level. 

10 Thank you. 

11 MR. BROOKMAN: Thank you. 

12 Those are all the individuals that

13 told the department in advance that they wish

14 to speak. 

15 We want to provide also an

16 opportunity to others to do so. 

17 Yes, why don't you come forward to

18 the microphone. And I'll start, though, with

19 Jim first. 

20 Please say your name, everybody

21 that speaks for the record. 

22 MR. CRAWFORD: This is Jim

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1 Crawford, Training Company. And I did request

2 in advance. 

3 MR. BROOKMAN: Sorry, we didn't get

4 your name. 

5 Jim, go ahead. 

6 MR. CRAWFORD: The point I'd like

7 to make, several points I'd like to make. 

8 One is, the fact that we are in a

9 period of unparalleled uncertainty and

10 political volatility and we need somehow

11 collectively to work much more closely

12 together than we have in the past. There has

13 been a lot of þ here's an analysis. Throw it

14 over the wall in the past. 

15 And that simply is not going to

16 work, and I won't go into details on that. I

17 think it is fairly obvious. 

18 I will cite now a few facts, and I

19 will give the reporter these notes so he's got

20 the website links to some assertions that I'm

21 making. 

22 The bills in Congress have been

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1 mentioned, and that simply cannot be

2 overstated that the impact of Lieberman3 Warner, Boxer, Marky, can have on this

4 industry. And they will come home to roost at

5 exactly the time that this process will be

6 going into force. 

7 If we look at some of the examples

8 of the volatility, aluminum prices are up two

9 to one in the last five years. It makes it

10 very difficult to make precise estimates of

11 the cost of a product. 

12 Copper prices are up four to one

13 in the last five years. There is a national

14 epidemic of stealing condensing units to

15 recover the copper from the coils. 

16 Natural gas prices for the

17 electric utilities are up by 50 percent in the

18 last five years. They are up about two to one

19 in the last six years. 

20 Coal prices, coal being the

21 principal energy source for generation of

22 electricity, coal prices are up three to one

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1 over the last five years. 

2 Additional factors, the decoupling

3 of utility sales and earnings makes future

4 utility rates and consumer savings from

5 reduced energy consumption very uncertain. At

6 least seven states have considered or are

7 experimenting with decoupling. Others are

8 engaged in discussions through NARUC and

9 elsewhere. 

10 So the volatility that we are

11 facing requires a very realistic view to the

12 precision that one can achieve with analyses,

13 and running wild guesses through a crystal

14 ball just gives you a crystal ball view of

15 wild guesses. And in the past that has been

16 treated as, oh, somehow or other an additional

17 dimension of precision came out of that

18 process, and it doesn't. 

19 Thank you. 

20 MR. BROOKMAN: Thank you. 

21 Please. 

22 MR. BRUNDAGE: Don Brundage,

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1 Southern Company. The last time we gathered

2 for this four-year round of fun, one of my

3 major concerns was the effect of higher

4 standards on the dehumidification capability

5 in hot humid climates. Those concerns are

6 even stronger now with some of the proposed

7 changes in building codes. The proposed IECC

8 2010 standard would dramatically improve the

9 requirements for windows and for building

10 envelope, reducing sensible load, providing a

11 much poorer sensible latent ratio. 

12 And the fact is standard minimum

13 efficiency equipment will not þ with a home

14 built to those sorts of standards þ be able to

15 maintain proper humidity conditions without a

16 supplemental dehumidification system, which if

17 you built a second system in there rather than

18 an integrated piece of equipment that is well

19 designed, it is going to use much more energy

20 than a system specifically designed for it. 

21 But your current test standard þ I'm not an

22 expert on this, but I think your manufacturers

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1 would have a difficult time with the current

2 SEER test procedure the way it is written,

3 designing something with good dehumidification

4 capability that could meet the SEER 13

5 standard. 

6 I would be much more þ I'm

7 officially neutral right now on regional

8 standards. I'd be much more enthusiastic if

9 Congress had in its wisdom allowed other

10 performance standards requirements other than

11 SEER, such as latent capacity in the bill. 

12 But coming out of this process needs to be

13 products that are functional and work in hot

14 humid climates, which the current path we've

15 been on in the past just doesn't happen. 

16 This is a complex issue, and I

17 don't know all the answers to it, but it would

18 appear to me that regional standards would

19 provide a good opportunity to address these

20 specific issues. 

21 I know the manufacturers and

22 distributors have spoken a lot about the

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1 problems of that. To some extent it's sort of

2 like locks sort of keep honest people out. If

3 you have a state that enforces building codes,

4 and does their job properly, this will not be

5 a problem, because something that doesn't meet

6 the regional standard will not get a building

7 permit. 

8 States that don't, maybe that's an

9 incentive for them to start enforcing what

10 they ought to do for public health and welfare

11 better. 

12 There are a number of other issues

13 related to this that I will address in

14 comments, but one way or another, whether

15 through original standard or through a single

16 national standard, the humidity issues in hot

17 humid climates need to be addressed better

18 than they are currently. 

19 Thank you. 

20 MR. BROOKMAN: Thank you. 

21 Please. 

22 MR. FERNSTROM: I'm Gary Fernstrom,

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1 consultant to the Pacific Gas & Electric

2 Company. And I'd like to compliment the

3 industry for the 50 percent improvement in

4 efficiency of these products that has been

5 accomplished over the last 20 years. 

6 However, in opening remarks I

7 heard a number of reasons why the current

8 standards or for that matter more rigorous

9 future standards are not merited. 

10 These included lack of cost

11 effectiveness, and a number of other reasons. 

12 So I would just like to agree with

13 the comments of the Southern Company, and say

14 out in California, we have a serious need for

15 a hot dry climate air conditioner, and we

16 believe regional standards are the only way to

17 get there. 

18 We also believe that California

19 has done a good job of enforcing its building

20 standards. 

21 So for the millions of consumers

22 that we serve, that have trouble paying their

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1 electric and gas bills, we believe there

2 should be more emphasis on improved

3 efficiency, and focus on the operational cost

4 of this equipment, rather than simply the

5 first cost. 

6 If we expect to meet California's

7 climate change goals, and make our customers

8 able to afford to use the air conditioning

9 equipment they purchase, we are going to need

10 to find a way to make it more efficient. 

11 MR. BROOKMAN: Thank you. 

12 Steve Rosenstock. 

13 MR. ROSENSTOCK: Steve Rosenstock,

14 Edison Electric Institute. 

15 I just wanted to, again,

16 appreciate the department for its openness and

17 all the information that they are trying to

18 provide as soon as they can. 

19 One issue that I know that we'll

20 be discussing that will be of concern to

21 utilities, it came up last time, is the issue

22 of the connection between SEER and EER. 

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1 For many utilities SEER gives a

2 great annual type of information in terms of

3 energy usage, electric usage. But then there

4 is the EER issue, which at that test condition

5 is really kind of a better indicator of what

6 is happening on those peak days.

7 And for many utilities that are

8 planning or deciding about, what does the

9 future look like in terms of their needs for

10 generation if they are vertically integrated,

11 or if they are working with the regional ISOs

12 in terms of, there's regional planning in

13 terms of what are the region's needs in terms

14 of new generation. 

15 The issue of EER, and the

16 connection or disconnection as it were between

17 higher SEERs and EERs is important to many

18 member companies, and I know that Energy Star

19 now has one of the metrics is not only SEER

20 and HSPF, but it's also EER for the Energy

21 Star heat pumps. 

22 And I know that by law that DOE is

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1 required to look at SEERs and HSPFs as we look

2 at higher and higher SEERs, and if there is

3 disconnect, where higher SEER units have flat

4 or even lower EERs, it might be time to

5 consider looking at EER requirements as part

6 of this. 

7 Again, I don't want to add any

8 burdens or costs, but from an industry

9 perspective, we need to kind of keep track of

10 what is going on with EERs as you raise the

11 SEER levels. 

12 Thank you very much. 

13 MR. MANDYCK: Let me see, Lance

14 Delaura.

15 MR. DELAURA: Just very briefly, I

16 wanted to say the two separate energy utility

17 companies, Southern California Gas Company and

18 STG&E are fully supportive of the regional

19 standards concept, for all of the reasons that

20 Gary Fernstrom mentioned. 

21 We also think it is very important

22 to include the EER as was just mentioned a

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1 minute ago. That is very important to us with

2 peak demand. It's a very large issue in

3 California. We think it's going to be an

4 issue for others across the country. 

5 We think there are ways þ and we

6 can explore this as we discuss today þ there

7 are ways to strike a balance between the

8 regional standard. I definitely hear the

9 concerns of the manufacturers, and we work

10 with all of you guys, and we depend on you,

11 and I think to a certain extent you depend on

12 us. And my hope is that we can find a way to

13 make this work in everybody's best interest,

14 but I do think that the regional standards are

15 the right thing to do. 

16 Thank you. 

17 MR. MANDYCK: Thank you. 

18 Harvey Sachs. Please speak close

19 to the microphone. 

20 MR. SACHS: Harvey Sachs, ACEEE,

21 worrying about tipping my empty coffee cup

22 here. 

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1 First I'd like to acknowledge the

2 process here and to thank everybody. 

3 Second I'd like to echo the

4 comments of my friend and colleague, Jim

5 Crawford of TRANE, that the assumption that

6 analytical precision tracks with accuracy has

7 proven poorly founded, and it is important for

8 us to work on a process that gets us speaking

9 the same language and driving toward results

10 that will work for everyone. We are certainly

11 open to that. 

12 I'd like to raise þ well,

13 secondly, we certainly support the concept of

14 regional standards. We have been thinking

15 about this for a number of years. 

16 But I'd like to make two comments

17 in that regard. The first is, the test method

18 is busted. If we try to do this without

19 thinking about the test method, I believe we

20 are going to get ourselves further and further

21 into trouble. 

22 Among other things it plays on

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1 both hot dry and hot humid, is the strong

2 difference between fuel-determined, fuel3 measured external static pressures and those

4 assumed in the test. 

5 And among other things, we are

6 imposing a major challenge on the

7 manufacturers to produce equipment that both

8 works well on the test and rates well, and

9 actually serves customer needs in the field,

10 where we have typically 2-1/2 to perhaps 4

11 times as much external flow resistance as is

12 assumed in the rating method. 

13 There are a lot of other problems

14 with it. We don't have to go into them now. 

15 And I think I want to stop at that 

16 þ well, one other little thought which is

17 just, if we are thinking in terms of the

18 rating method as the underlying foundation, we

19 open ourselves to consideration of regional

20 standards that reduce to regional rating

21 formulas, regional weighting changes that can

22 be normalized to a national SEER level,

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1 whether that is 13, 14, 19 or some other

2 number, and thereby preserve the ability of

3 manufacturers and incentive programs to market

4 nationally, while giving us the regional

5 differences in design and performance that

6 will matter in delivering efficiency including

7 necessary health and safety precautions for

8 all regions of the country. 

9 Thank you. 

10 MR. BROOKMAN: Thank you. 

11 Other comments here at the outset? 

12 Andrew Delaski.

13 MR. DELASKI: Andrew Delaski,

14 Appliance Standards Awareness Project. 

15 Is this one?

16 MR. BROOKMAN: I think so. Mikes

17 are working better than normal today, for some

18 reason. 

19 MR. DELASKI: You must know me as a

20 regular here. 

21 First of all I want to

22 congratulate DOE on getting the fuel measuring

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1 off the ground. I know it's a busy time for

2 the office, for the building technology

3 program, and particularly for the standards

4 program. 

5 I think Ron told me that there are

6 now 35 rulemakings underway. What's the

7 latest count, Ron? Is it up from that? But

8 it's a busy time. 

9 MR LEWIS: It's like 37 projects;

10 they are not all rulemakings. There are some

11 other things. 

12 MR. DELASKI: One of your ways to

13 consult and make the work go more smoothly is

14 to consolidate your projects into one

15 rulemaking. 

16 So I want to congratulate DOE on

17 doing a good job of sticking with its

18 schedule. I know meeting the schedule

19 deadlines are an imperative that has been

20 impressed upon the agency and upon staff from

21 very high up in the agency. I think it is

22 doing a commendable job. 

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1 Both with respect to those items

2 that are þ all the items int eh schedule,

3 those that are subject to the consent decree,

4 and those that are subject to more recent

5 congressional deadlines. 

6 I also want to take a couple of

7 minutes to provide my perspective and a little

8 bit of context for this particular rulemaking.

9 This is an extraordinarily

10 important rulemaking. Among the work the

11 department is currently undertaking in the

12 standards program, this rulemaking ranks among

13 the one or two top priorities in my view, and

14 to the impact on the nation potentially in

15 energy savings, energy consumption. 

16 There are a lot of reasons why the

17 potential impact is big for the nation as well

18 as for the industry. You've heard discussion

19 of climate change legislation, and there are

20 very broad far-reaching potential impacts on

21 this rulemaking. 

22 It stands to reason, I think we

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1 all know, I don't have the data in front of

2 me, but air conditioners are a very large

3 portion of national energy consumption. 

4 Residential central air conditioners remain,

5 I don't have the data in front of me as I

6 said, but I think it remains the single

7 largest residential electric consumption, and

8 it's certainly one of the top one, two or

9 three residential energy electricity consuming

10 products. 

11 At the national level it rolls up

12 into a considerable portion of national

13 electrical consumption goes to air

14 conditioners. 

15 It's also, as you have heard from

16 utilities that just spoke, a very important

17 contributor to peak demand. Central air

18 conditioners define summer peak. Anybody who

19 is on the north þ on the East Coast last week

20 knows that. 

21 In my local paper they reported

22 the other day that the peak in NSTAR service

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1 territory was 4,100 megawatts on Tuesday, up

2 from our normal peak of 3,300 megawatts. 

3 And that was because it was 98

4 degrees in Boston. 

5 Air conditioners define summer

6 peak. It is incredibly important rulemaking

7 for addressing the peak level of demand in the

8 country which relates to the need to build new

9 power plants, the need to improve our

10 transmission and distribution systems, NERC,

11 the National Electrical Reliability Council,

12 has put out the call. We have an electrical

13 reliability crisis in this country over the

14 next 20 years as we look at how are we going

15 to address the need of increased peak demand

16 to address the need for increased transmission

17 and distribution. 

18 Efficiency is a big part of that

19 solution. Air conditioners are the chief

20 contributor to peak electrical demand. This

21 will make a unique opportunity and play a key

22 role in how are we as a nation going to

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1 address this electrical reliability challenge

2 as NERC has defined it. 

3 We've made tremendous progress in

4 air conditioner efficiency. Gary pointed out

5 a 50 percent improvement over the last 20

6 years, and that improvement goes, I think lays

7 at the doorstep of the engineers of the air8 conditioner manufacturers, who have improved

9 products tremendously over the past 20 years. 

10 Standards have played a key role

11 in driving that forward. It's clear that the

12 manufacturers care a lot about efficiency. 

13 They care a lot about climate change; they

14 care a lot about the environment. 

15 Look at their marketing materials. 

16 Look at their websites. It's clearly part þ

17 unlike many other products, the efficiency is

18 a defining characteristic of air conditioners;

19 it's how you sell the product in significant

20 measure. 

21 Not true for many other products

22 regulated by the department. 

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1 So but at the same time

2 manufacturers have to meet the needs of

3 consumers for comfort, for cooling, to

4 broadcast and deliver the comfort needs, as

5 Southern Company pointed out; and they also

6 have to meet the builders' market, or that

7 part of the market that focuses primarily in

8 most instances on give me the thing that costs

9 the least; price remains a very important

10 driver in the marketplace, one that often

11 works at odds with improved efficiency. 

12 The SEER 13 standard established

13 in 2001 was the result of the last rulemaking

14 on this product effective in 2006 made a big

15 contribution. We advocated strongly for that

16 standard, the coalition that I work with. It

17 was þ the industry came to embrace it. The

18 manufacturing side of the industry came to

19 embrace it first, Goodman supporting the

20 standard initially, the second largest

21 manufacturer by volume. Then the other

22 manufacturers in time, in the fullness of

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1 time, came to support that standard. In the

2 industry now as a whole, we today have the

3 standard in place, and it's making significant

4 contributions to energy savings. 

5 Subsequent to promulgation of SEER

6 13, the industry has deployed a range of

7 efficient products, and I congratulate you on

8 that; it's a significant improvement. 

9 Sine then the Energy Star program

10 is working. We are seeing products with SEERs

11 as high as 21. 

12 As has been noted, the test method

13 is broken. It's not clear what the limits are

14 in terms of the current SEER test method, and

15 where that can take us. 

16 The final reason I want to

17 emphasize why this rulemaking is particularly

18 important is that it's the first rulemaking in

19 which the DOE will consider using the

20 authority to establish regional standards as

21 established by ESA 2007. 

22 Some argued for regional standards

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1 in the last rulemaking. The Consumer

2 Federation of America for one argued for the

3 notion that we should have had regional

4 standards coming out of the last air

5 conditioner rulemaking. 

6 Many of us argued for regional

7 standards in the furnace docket. Now thanks

8 to in very large parts to the actions of

9 Chairman Boucher, Chairman Dingell, the

10 ranking members on the Republican side,

11 Chairman Bingaman and his counterpart on the

12 Republican side, we now have regional

13 standards authority in the law in DOE. It's

14 incumbent on DOE to act on that authority in

15 this rulemaking to consider regional

16 standards. 

17 Also that language specifically

18 was hammered out between the manufacturing

19 industry and ACEEE. The authority in the law

20 is now clear, and DOE has to act on that

21 authority to consider regional standards. 

22 So in summary, we've made in my

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1 view we've made tremendous progress in air

2 conditioner efficiency thanks in considerable

3 part to standards, but certainly not

4 exclusively to standards. 

5 And we look very much forward to

6 participation in this process as we determine

7 where to go to next. 

8 MR. BROOKMAN: Thank you. 

9 MR. DELASKI: I also have a comment

10 on process, but maybe that is appropriate for

11 later. 

12 MR. BROOKMAN: We will get to that

13 later, yes. 

14 Other comments? I see I'm going

15 to let everybody go through first, then we

16 will return. 

17 Other comments from individuals

18 who wish to emphasize a point or two at the

19 outset?

20 Okay, Jim, do you want to make

21 another comment? Jim Crawford. 

22 MR. CRAWFORD: Yes, Jim Crawford. 

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1 In response to a few comments about regional

2 performance of air conditioners, quite simply

3 some of the assertions made are not consistent

4 with the facts of how air conditioners

5 operate, and I think that collectively we have

6 got to run this thing to ground, because

7 otherwise we are going to be proceeding on

8 false premises. 

9 Air conditioners have a remarkable

10 ability that they automatically without any

11 controls adjust themselves thermodynamically

12 in response to the load, providing higher

13 latent capacity when there is a high latent

14 load, and providing no latent capacity when

15 the indoor relative humidity is very low. 

16 And that has to be recognized as

17 very important. Which is a different point

18 than part of what Don said, because there are

19 very definite changes taking place in building

20 loads, due to for example super insulation. 

21 MR. BROOKMAN: Okay. So then let's

22 proceed then with the rulemaking overview. 

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1 The slides, you have them in your possession

2 here, and Wes Anderson is going to lead off. 

3 RULEMAKING OVERVIEW

4 MR. ANDERSON: Good morning, ladies

5 and gentlemen, my name is Wes Anderson. 

6 I'm the project manager for this

7 particular rulemaking. And this is the first

8 of a series of public meetings. 

9 And as I would like to emphasize,

10 we are looking for your comments, as some of

11 you have spoken so far. 

12 What we are going to do today is

13 to give you our broad overview of our

14 analytical approach, methodologies, and on

15 energy conservation standards and residential

16 central air conditioners and heat pumps. 

17 This is a forum for public

18 comment, so it should be a 60-40, 60 you, 40

19 us, to encourage you guys to þ we also want to

20 get your input as far as data, as some of you

21 have promised, your analysis, and some of your

22 hypotheses. 

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1 As Doug mentioned earlier, in the

2 framework document as well as in this

3 presentation you will see blue boxes that will

4 be time for þ we'll present questions to you. 

5 And we want your inputs, get your thoughts,

6 and on the issues for that specific question,

7 so that helps us organize our input data from

8 you. 

9 Feedback: when you want to submit

10 comments, please, there is an email address

11 here. Also you can mail it by snail mail to

12 Ms. Brenda Edwards, who mostly views mail

13 already, and as far as notice, there are two

14 different addresses for courier, if you want

15 to have a courier deliver it, versus snail

16 mail or email. 

17 With email if there is a comment,

18 please have a signature in there, so it's

19 proof of submission. 

20 The docket number needs to be

21 placed for the RIN, or the Regulatory

22 Identification Number, needs to be on there to

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1 keep our records straight. 

2 Very important, the comment period

3 of July 7th is also a holiday weekend, so be

4 cognizant of that, if you are doing

5 information through the post office. 

6 This is another þ this is our

7 agenda for the day. 

8 This slide talks about the reasons

9 why we are doing this. I want to emphasize

10 that this is a backlog rule-making. It's

11 under consent decree, so the schedule has to

12 be maintained. 

13 The second bullet addresses the

14 historical statutory statements, and the final

15 paragraph gives you why we are doing it now. 

16 This slide is sort of to give you

17 a correlation of how our analysis relates to

18 the EPCA requirements that were set forth for

19 DOE to look into.

20 For instance, the impact on

21 utility performance would be done in the

22 engineering analysis, and screening analysis. 

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1 Each one of these seven factors will be

2 addressed on the right today. We will give

3 you, like I said, the overview so you will

4 have some understanding of what our approach

5 is. 

6 Today, as I said, this framework

7 document presentation, this is a kickoff. 

8 There will be subsequent meetings to this. 

9 The reason for it is to give

10 notice to the public, and availability of

11 framework. Also the framework is on the web

12 page previously.

13 But there is, at the end of the

14 slide, there will be the web page address. 

15 And if you have any questions or concerns,

16 some of you have called me about that, and we

17 are going to make those adjustments later on. 

18 The presentation will be placed on

19 the web page as well as the minutes subsequent

20 to this meeting. 

21 The web page is at the bottom of

22 this slide. 

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1 These are the dates, the

2 milestones that we are trying to reach, or we

3 will reach. July 7th is the close of the

4 comment period, the advanced notice of

5 proposed rulemaking published in the fall of

6 2009. The ANOPR will be in the late fall of

7 2010, for final rule publication on June 2011.

8 And for which the effective date

9 is five years hence. 

10 MR. CRAWFORD: Jim Crawford. Is

11 there any flexibility on that July 7th date? 

12 That is very short notice for us to respond to

13 the many, many questions that are posed in the

14 framework document. 

15 MR. BROOKMAN: Ron Lewis.

16 MR. LEWIS: As you know, Jim, we

17 are on a real tight schedule to try to get a

18 lot of things done, and this is only the

19 framework document. 

20 So we established a date, and

21 trying to encourage everybody to get their

22 input in by then. Certainly if we get some

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1 input in after that we are not going to ignore

2 it. It's trying to þ in trying to keep the

3 urgency to this, and encourage people to get

4 things in in a hurry, we have set those dates.

5 And in some cases, to move

6 forward, to get all the analysis done and get

7 all the reviews and approvals and all the

8 rest, those dates become important to have. 

9 We can't do the analysis

10 significantly until we've got the input from

11 people, the analytical or the framework

12 document is theþ just the starting point. So

13 it's not as critical as it is when we get

14 further down the stream. When we get into

15 like the NOPR, if there have been any delays

16 we'd have very little time to adjust to it. 

17 It's really to be able to consider

18 the input, and put it into our analysis. And

19 if we startedþ we don't have the time to do

20 re-analysis a whole lot if we get input that

21 changes directions. So we are trying to

22 encourage everybody to get the input in as

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1 early as possible. And as we get later down

2 into like the NOPR, we are going to have to be

3 pretty strict about it. 

4 But on this phase, and looking at

5 the short time available, we certainly would

6 not ignore something that came in shortly

7 thereafter. 

8 MR. CRAWFORD: Do you know the

9 people will be out of the office during this

10 time, for a week to 10 days, between now and

11 then, for the ASHRAM meeting? 

12 MR. BROOKMAN: We have several

13 additional people who I think wish to comment

14 on this. 

15 Tom and then John and then back to

16 Harvey briefly.

17 MR. BRUNDAGE: You mean Don?

18 MR. BROOKMAN: Yes. 

19 MR. BRUNDAGE: Don Brundage,

20 Southern Company. 

21 MR. BROOKMAN: Thank you, Don. 

22 MR. BRUNDAGE: I echo the comments

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1 of Mr. Crawford, because I'm in a lot of the

2 same meetings. 

3 Also I'd like to make the point

4 that 10 days notice from the time of the

5 notice in the Federal Register to having a

6 meeting is just not acceptable, especially for

7 those of us who are not in the Washington

8 area. This is incurring significant

9 additional costs to my company for making last

10 minute travel arrangements. I would request

11 you go back to the usual 30 days notice on

12 meeting arrangements. 

13 MR. BROOKMAN: Thank you. 

14 John Mandyck.

15 MR. MANDYCK: I would just like to

16 þ John Mandyck from Carrierþ echo theþ I

17 appreciate, Ron, your offer of flexibility on

18 that date, and just echo the fact that the

19 department gave us less than 10 days notice

20 for 55 major questions that affect the future

21 of this industry. I can tell you our industry

22 will not be able to respond by July 7th. And

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1 so we do need that flexibility to give you the

2 thoughtfulness and the data that is required

3 to answer the questions that you asked at the

4 thing.

5 MR. BROOKMAN: Thank you. 

6 Harvey. 

7 MR. SACHS: I also would support þ

8 Harvey Sachs þ I also would support modest

9 relaxation of that date, given the factors

10 that have been mentioned above, noting that

11 you are offering 1.5 months from Federal

12 Register notice to final remarks due, and then

13 a subsequent 15 months for your ANOPR

14 analysis. 

15 That is striking only because in

16 the work that this industry has been doing on

17 commission of buildings we increasingly find

18 that a front-end investment of time in getting

19 a better understanding of everyone's

20 objectives has more than paid off in high

21 quality, better results, and more likelihood

22 of keeping the time span. 

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1 So we think that there is some

2 transferability from lessons, from the complex

3 project management of construction to this

4 process, and again for that analogy we would

5 support some extension. 

6 MR. BROOKMAN: Ron Lewis.

7 MR. LEWIS: I appreciate all those

8 remarks. And I again offer apologies for the

9 short notice. We were working desperately to

10 get this out before the ASHRAY meetings, which

11 were requested by many people, so that you

12 could have that opportunity also to gather

13 together and collectively share your thoughts

14 and concerns in that group format. 

15 So the delays along the way were

16 not intentional, and we did our very best, and

17 it was a close call whether we were going to

18 hold this or not, and we decided at the last

19 minute that we would try to do that, and

20 certainly connected to that, then, extending

21 the comment period would be a rational thing

22 to do. 

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1 So we don't have any problem with

2 considering that, and we may publish another

3 date or just the email list that we've got, we 

4 may notify people of another date. 

5 But it's a kind of issue where we

6 want to maintain a sense of urgency, and to

7 Harvey's point, we realize doing it right at

8 first, that is our preference as well. The

9 problem we have, especially in the backlog and

10 consent decree area, is it's a date certain we

11 have to deliver by, and any delays on the

12 front end, the cumulative build-up effect,

13 it's a tremendous effort to get these things

14 out the door by the time that is required. 

15 So we are trying to keep the sense

16 of urgency in everybody's face as it is in

17 ours, because we are held under court order to

18 deliver these. 

19 MR. ANDERSON: And also make sure

20 we get your information; that's very

21 important, especially your email address. 

22 MR. BROOKMAN: I want to ask Ron,

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1 do you think you might know whether it would

2 be possible to extend the deadline by the end

3 of the day today, orþ 

4 MR. LEWIS: Yes. 

5 MR. BROOKMAN: Yes? Okay, that's

6 good to know. 

7 So then I'll just go right down

8 the line here: you first, and then toþ 

9 MR. DOPPEL: Ron, how is it

10 possible to know for sure that we are on your

11 email list?

12 MR. LEWIS: I guessþ I was just

13 talking to the general counsel here. We will

14 have to do a short announcement in the Federal

15 Register as well. But the more time effective

16 is to email everybody. So just make sure that

17 your email address is at the table here. Make

18 sure you leave your card and your email

19 address there. 

20 MR. BROOKMAN: So that was Paul

21 speaking, and now Hung. 

22 MR. PHAM: Hung Pham, Emerson

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1 Climate Technologies. Considering ANOPR is

2 not until fall `09 I wonder if we could

3 request a little change in the procedure, is 

4 that you know it would be more collaborative

5 if DOE could publish the comments after the

6 July receipt of those. 

7 Traditionally we don't get to

8 review those until the ANOPR or even later. 

9 MR. LEWIS: We will take that as

10 input, and then we'll have to make some

11 decisions back here, soþ 

12 MR. BROOKMAN: A lot of these

13 process features are pretty well mapped out. 

14 Kyle. 

15 MR. GILLEY: I support the comments

16 made regarding the July 7th deadline. But I

17 also wanted to bring up one other date that is

18 of great concern to our industry, and that is

19 the effective date of the standard being June

20 of 2016. 

21 June is not at all appropriate as

22 far as implementing an AC heat pump new

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1 standard in the marketplace. We are in the

2 middle of a summer season, we're in the peak

3 season for air conditioners and heat pumps. 

4 There needs to be some consideration given to

5 changing that June date. 

6 MR. LEWIS: What would you

7 suggest?

8 MR. GILLEY: Certainly in the past

9 we have gone with a January date. I can't

10 speak for our side, but that seems to be more

11 reasonable from a Lenox perspective, not

12 something in the middle of peak summer season.

13 MR. BROOKMAN: Thank you. Andrew,

14 and then I'm coming to this side of the room

15 next. 

16 Yes. 

17 MR. DELASKI: So a few comments on

18 some of these process issues, I want to go

19 back to. 

20 MR. BROOKMAN: Yes. These are

21 important, yes. 

22 MR. DELASKI: Regarding the date, I

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1 think it's fine to extend the date a week or 

2 two. I think it's critical that the

3 department extend the date formally. I think

4 this sort of open, get-them-in-when-you-can

5 kind of notion, we are open to hearing your

6 comments whenever we can get them, I think

7 that doesn't serve the public and it doesn't

8 serve the department. There needs to be a

9 firm deadline. 

10 MR. BROOKMAN: You want a formal

11 submission in the Federal Register or

12 something like that?

13 MR. DELASKI: That is my second

14 point. Which is that email lists don't

15 substitute for the Federal Register notice. 

16 There are people who would like to be here

17 today who are not here, okay? Not everybody

18 is on your list. I don't know who is on your

19 list. It's not a matter of public record. 

20 The email listþ I appreciate the

21 notice; I got the notice last Tuesdayþ some of

22 the folks in the room got the notice tooþ but

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1 some folks here I think didn't get the notice. 

2 There are a lot of folks who are not in this

3 room today who might have been here, if they

4 had had adequate notice. 

5 So the email list is great; I

6 appreciate the early heads-up for those of us

7 who are on the inside, and we are all sitting

8 on the inside right hereþ that is useful. 

9 But there are manyþ it's a public process, as

10 a matter of good public process, I think it's

11 a problem to not use the Federal Register.

12 That's why it exists. 

13 So I would really strongly

14 recommend that you publishþ if you are going

15 to revise the dates, just revise the firm

16 date. The department is obligated to look at

17 those comments, and if you get in beyond that,

18 then you are kind of taking a risk, I think. 

19 MR. BROOKMAN: Okay, Pat, and then

20 I'm coming back to thisþ 

21 MR. DELASKI: I have a couple more,

22 Doug, but you can come back to me if you'd

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1 like. 

2 MR. BROOKMAN: Well, I'm sorry. 

3 No, go ahead, say it now. 

4 MR. DELASKI: On the issue of the

5 notice for this workshop, by my count it was

6 six days notice in the Federal Register. It

7 came out last Friday. That is not much

8 notice. I mean, it's better than we get on

9 the lamp proceeding, where the notice came out

10 after the workshop. 

11 (Laughter)

12 MR. DELASKI: So you all should

13 count yourself lucky you're not a part of the

14 lamp industry. 

15 But I would mention that my

16 understanding is that in that particular

17 docket, the department got two comments, one

18 from a group of advocates that I work with,

19 and one from the industry. Not exactly broad

20 public participation at that particular

21 juncture, and that was in the ANOPR phase of

22 the rulemaking. 

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1 Now the department in the

2 framework document note, outlines as a

3 commitment to an open public process, and we

4 all agree with that. An open public process

5 is critical to this. But I don't think that

6 six days' notice achieves that objective of an

7 open public process designed to, as you ask

8 for in the framework document, to facilitate

9 and encourage participation. 

10 I think thatþ for instance, I

11 spoke with staff from two states, state of

12 California staff, and public officials from

13 the state of California and the state of New

14 York. They would have liked to have been here

15 today, they told me, but they could not be

16 here today, because of travel restrictions. 

17 If you are a state employee in California, and

18 you say, "Hey boss, I want to go to Washington

19 with three days' notice, the fares are

20 $2,000," the answer is, you can't. The

21 governor could approve it, but we are not

22 getting that kind of staff. As a civil

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1 servant at the DOE you understand the

2 restrictions that the state employees face on

3 travel. It's a financial burden to a utility

4 company, but for state government officials,

5 you set up a burden that is insurmountable

6 with this kind of notice. 

7 And that framework workshop, you

8 know, is a problem. But I suggest that at the

9 ANOPR or NOPR stage, I think we are talking

10 about really aþ something that is not

11 reasonable in terms of the definition of what

12 would be a reasonable public process, for what

13 as we've all talked about, a very important

14 rule-making. Those have got to be fixed.

15 I have a couple of ideas on how it

16 could it be fixed. One idea was that you

17 could have noticed this workshop two months

18 ago. Don't lose time on the schedule; notice

19 the workshop two months ago, notice it on

20 April 12th. I know the framework document

21 wasn't ready yet, but the framework document

22 didn't go into the Federal Register. Notice

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1 the workshop, you have to stick to your

2 schedules, that would be one notion of how you

3 could do it.

4 Another suggestion would be the

5 same as Don's suggestion, which is just give

6 30 days' minimum notice. I don't think it

7 would have set us back that far, the

8 department back that far, if we had 30 days'

9 notice, and this workshop had occurred 21 days

10 from now, or 24 days from now, other than

11 today. And I think you would have had much

12 better participation from a broader set of

13 stakeholders. 

14 My next comment, Doug, I'm

15 shifting topics here, but I have another one

16 for the 2015 date. 

17 MR. BROOKMAN: Let's stay on this

18 frame, please. 

19 Yes, Pat. 

20 MR. O'CONNOR: Yes, just one

21 question. 

22 MR. BROOKMAN: Say your name, Pat,

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1 for the record. 

2 MR. O'CONNOR: Excuse me?

3 MR. BROOKMAN: Say your name for

4 the record.

5 MR. O'CONNOR: Oh, Pat O'Connor,

6 American Supply Association. Sorry. 

7 Is there an electronic docket set

8 up for the framework document? And if so will

9 the comments that are submitted to the

10 framework document be available electronically

11 through that docket?

12 MR. ANDERSON: That was one of the

13 earlier questions. We are going to talk about

14 putting access to the comments. Generally we

15 justþ we'll talk about that later, but there

16 is a web page that has all the information

17 that you would want to find either on the

18 public meetings, the announcements, the

19 framework document or the Federal Register

20 note. 

21 Everything that goes into the

22 Federal Register goes to this web page. It

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1 says at the bottom of the page here. 

2 MR. O'CONNOR: I understand that. 

3 I want to know there will be electronic access

4 to all the comments. 

5 MR. ANDERSON: Not all the

6 comments, no. 

7 MR. O'CONNOR: Why?

8 MR. ANDERSON: That's justþ

9 generally we don't address all the comments,

10 even in the final rule. We address the

11 comments. 

12 MR. O'CONNOR: I'm not talking

13 about addressing the comments. I'm talking

14 about access to the actual comments. 

15 MR. BROOKMAN: Yes, the ones that

16 are submitted. 

17 MR. O'CONNOR: The ones that are

18 submitted. Will they be electronicallyþ 

19 MR. BROOKMAN: Let me recognize Ron

20 Lewis. 

21 MR. LEWIS: We have never done that

22 to date. We are working to try to do that. 

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1 We have not done that. We are not set up at

2 this point. We are working towards that

3 endpoint, and I can't promise you when that

4 is going to happen, but we are working

5 towards that as part of our activities right

6 now. 

7 So we take your input and your

8 desire, and we note that, we agree with that,

9 and we are working towards that. 

10 MR. BROOKMAN: Hey Ron, some people

11 are new to this proceeding it seems to me. 

12 Maybe you could describe briefly what your

13 standard practice has been. 

14 You respond toþ selectively, to

15 major comments, typicallyþ as the process

16 goes on; is that correct?

17 MR. LEWIS: Yes, the comments are

18 all considered. They are all looked at. 

19 Most frequently they are aggregated together

20 where there is a commonality, where there are

21 things that fit together. They are addressed

22 many times, because they are duplicative,

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1 where there are several people with the same

2 comment. 

3 And there is consideration given

4 to those thematically, rather than by the

5 person giving that input, and they are

6 addressed in the narrative in the ANOPR. 

7 There are occasions when there is

8 a single commenter that has an issuer that no

9 one else has commented on, and that's noted. 

10 Normally there is an attribution

11 in there of where comments have come form. 

12 Mike Rivest from Navigant has been here for a

13 long time. I don't know if there is anything

14 else, Mike, that youþ 

15 MR. BROOKMAN: Mike Rivest.

16 MR. RIVEST: I think the question

17 pertains to the availability of comments for 

18 other commenters to see what each other have

19 written about. And that's typically been a

20 hard copy docket here at the department. 

21 MR. BROOKMAN: Are all comments

22 that are received by the department, are they

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1 available in hard copy through the

2 department?

3 MR. RIVEST: Yes, they are. 

4 MR. BROOKMAN: They are? Okay. 

5 I want to stay on these process

6 issues. You go ahead, follow on and say your

7 name please. 

8 MR. POPE: Ted Pope. Ron, if I

9 could just put a sharper point on it, and I

10 think following up on what Pat was trying to

11 say, I understand you are working on probably

12 a formal process for access to the comments

13 on the website. But it seems to me it would

14 take very little effort for Brenda or

15 somebody on staff to simply circulate

16 informally the comments electronically

17 through the email list. 

18 And I realize that is not the full

19 public process Andrew is talking about, but

20 as an interim solution until you get a more

21 formal process, I don't see why that couldn't

22 be done with virtually no effort at all, and

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1 I do agree with those folks that have made

2 the comment that we need to work together. 

3 This is getting more complicated every time

4 we go through this cycle, and if we can see

5 each other's comments in real time I think it

6 will accelerate the discourse and result in a

7 better product sooner. 

8 MR. BROOKMAN: I want to stick with

9 these process issues right now until we have

10 exhausted this comment. 

11 Charley and then to Andrew. 

12 MR. McCRUDDEN: Charlie McCrudden,

13 Air Conditioning Contractors of America. 

14 Last week's heat wave sort of

15 drives home for my members, July 7th date is

16 going to be very tough. This is our busy

17 time, and my members don't sit in offices. 

18 They are pretty much in vans going house to

19 house. So for them to provide me with their

20 comments on these 55 questions is something

21 they are going to have to do at night. 

22 Then on Kyle's point about the

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1 June 2006 effective date, it's going to be

2 very awkward for my members to sell one

3 system one day in the middle of the busy

4 season, and then a much more expensive system

5 the next day. Because the questions that we

6 all solve here impact really my members,

7 because they are the face of the industry. 

8 They are the ones handing the bill to the

9 homeowner. If they are forced to sayþ if a

10 consumer says to them, "My cousin just bought

11 a system last week, and only paid for the

12 basic system this much; what happened?" 

13 It's my member who has to say,

14 "Well, there is this long process that

15 started back in 2008, and here is where we

16 are, and this is what happens." 

17 So I think that there is probably

18 a much more appropriate date to make the

19 transition. I think in the middle of the

20 very busiest time of the year for us is much

21 þ 

22 MR. BROOKMAN: Ron Lewis. 

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1 MR. LEWIS: If you look at the

2 date, the mathematics, it was simply five

3 years from the time that it is required, that

4 we are required to deliver this, and that was

5 the time it said in the prior rule for

6 effective date. So we will certainly

7 reconsider that and take a look at it. 

8 MR. BROOKMAN: Okay. Andrew, and

9 then I will come back to the two of you. I

10 want to see if we can summarize these

11 comments here. 

12 MR. DELASKI: On the issue of

13 making the material on the website, on the

14 department's website, I think it's a great

15 idea. 

16 I think it's important that the

17 department follow the principle that all the

18 public gets equal access to the material the

19 department is producing. I think using the

20 email list for notices is a fine mechanism. 

21 If there is some delay for everyone to see

22 it, that is fine. But sending stuff just to

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1 some select group of stakeholders I think is

2 probably a problem from a public process

3 point of view. 

4 It also strikes me that putting

5 PDFs up on a website isn't rocket science. 

6 And I know you have internal processes that

7 are þ you can't just do things willy-nilly,

8 you have to go figure out who in the

9 department should process that. And I think

10 it's also notþ the technology, you put up

11 this framework document probably pretty

12 quickly, I guess putting up another 20 to 30

13 documents as PDFs is fine for the framework.

14 MR. BROOKMAN: Ron Lewis. 

15 MR. LEWIS: I'm not going to go

16 into great detail of all the things going on

17 at DOE. But there are a lot of things that

18 we do with websites and securityþ there are

19 things that are complicating this. I have a

20 contractor looking at, that they're getting

21 comments off that we are working towards

22 that, integrating that with other larger

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1 initiatives along the way... I totally agree

2 with the desirability and the efficacy of

3 having those available. We are working

4 towards that. 

5 MR. BROOKMAN: Robert, and then

6 Paul. 

7 PARTICIPANT: Well, I tell you, one

8 convenience of having not been engaged in the

9 previous ones wasþ previous rule-makings on

10 this is, we didn't know that this incredibly

11 tight schedule was unusual. Because we had

12 real concerns about that, and we want to

13 point out not only the extension for these

14 initial comments, but also the effective

15 date, but specifically when you are talking

16 about regional standards, where you are not

17 looking at an existing bit of regulation that

18 you are tweaking, but really starting from

19 scratch, for us it's a whole new world as far

20 as how to pull up the analysis on that. 

21 So thatþ I don't see how we could

22 possibly meet that July deadline either. 

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1 But that effective date, I want to

2 tie into that that all the members of the

3 channel coordinate their marketing and sales

4 programs well in advance for that peak

5 season, and our members have to forecast

6 their inventoring and stocking requirements,

7 and so that even extends out the requirements

8 for that þ to happen even earlier. 

9 And we already had matching

10 component system issues with the 13th SEER

11 transition which happened at the end of

12 January, so you can only imagine what it'd be

13 like during peak season. So then you may be

14 able to get the new standard condensing

15 system, but you may not have access to the

16 necessary matching components. 

17 So again, we echo Kyle's and

18 others comments that that effective date

19 needs to be in off-peak times. 

20 MR. BROOKMAN: Okay, thank you.

21 Paul. 

22 MR. DOPPEL: Paul Doppel. Two

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1 thoughts on the implementation date,

2 effective date. That date in the past has

3 been for the manufacturers to change what

4 they're manufacturing, and not the consumer

5 or the contractor. The contractor doesn't

6 have to make that change from one day to the

7 next; the product is made before that. 

8 So that's going to be the same? 

9 Okay. 

10 The second point, those of us who

11 import products would like to have

12 consideration given also to products

13 manufactured on the date could still be

14 brought into the country after, because with

15 things that go on in the ports, the last time

16 we had to have the product in country on the

17 effective date, andþ 

18 MR. LEWIS: To that point. 

19 MR. BROOKMAN: Ron Lewis. 

20 MR. LEWIS: I'll have to check with

21 the general counsel. I believe we need to

22 refer to the definition of manufacture. I

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1 think it's a clearly broad definition that

2 includes importation. So we'll have to check

3 that. 

4 MR. DOPPEL: Well, and the last

5 time we did have to have the product in

6 country before January 1st, and again, we lose

7 control of that in being able to bring things

8 into ports, if there is a ports record,

9 things like that, then we could be severely

10 impacted on that. So we'd like 

11 consideration given to that. 

12 MR. BROOKMAN: So we are moving

13 towards the kind of content that we are going

14 to cover as a natural course as we proceed

15 here and during the course of this workshop. 

16 And I just want to get these

17 overview comments on process issues and

18 limitations now, and then we will proceed

19 with the content that's stacked and

20 scheduled. 

21 Harvey. I would like to make

22 these as brief as possible so we can move on.

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1 MR. SACHS: I would like to thank

2 our colleague for the suggestion that

3 comments be posted. And Ron, this really

4 winds up being a major bureaucratic issue for

5 the department. I think some of us will urge

6 you to post a link to an external site where

7 we can work to have all our comments posted.

8 We would much rather have you do

9 that, because we think it's much more

10 appropriate. 

11 Since the hope has offered this,

12 and since the general has asked for greater

13 collaboration. 

14 MR. BROOKMAN: Karim, and then Pat.

15 MR. AMRANE: I just wanted to

16 respond to Paul on the issue of importation. 

17 It's really vague as part of the language. 

18 So I think... it's really for importaters...

19 at the same time.

20 MR. BROOKMAN: Pat, you're next. 

21 Thank you. 

22 Final comments then on these

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1 process issues? The department I guess is

2 going to try then to give you an answer by

3 the end of the day on the submission date for

4 the comment related to this meeting, and

5 perhaps other things. 

6 And then Andrew. 

7 MR. DELASKI: I want to comment on

8 the effective date. 

9 MR. BROOKMAN: Yes. 

10 MR. DELASKI: Can you put back a

11 couple of slides please, Wes, to the slide

12 that shows the authority in NOPR where this

13 will be conducted. Can you give a citation? 

14 MR. BROOKMAN: It's slide 12.

15 MR. DELASKI: We want the citation. 

16 The slide #10. 

17 So this will make me, as I

18 understand it, is being conducted under 42 US

19 Code 69-5(e)(3)(b). So this is the second

20 required rule-making under NACA for central

21 air conditioners. 

22 I just want to read from that,

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1 this (e)(3)(b) section. It's very short,

2 Doug, I promise.. 

3 MR. BROOKMAN: Go ahead. 

4 MR. DELASKI: The secretary shall

5 publish a final rule after January 1st, 1994,

6 and no later than January 1st, 2001, to

7 determine whether the standards in effect for

8 central air conditioners and central air9 conditioning heat pumps should be amended. 

10 Such rule shall provide that any amendment

11 shall apply to products manufactured on or

12 after January 1st, 2006. 

13 Now I just want to highlight this,

14 so this is not confused with the rule that

15 was completed in 2001. The rule that was

16 completed in 2001 is that required under

17 paragraph A. So this is the language in

18 which we are operating. 

19 So my question for the department

20 is, where is January þ where does June, 2016

21 come from as your effective date on this

22 slide?

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1 MR. BROOKMAN: Maybe we should

2 give the department a chance to figure out

3 how to respond to that, and thenþ and they

4 can do that a little later on in the day,

5 because they don't seem to have an answer at

6 this very moment. 

7 Eric Stas. 

8 MR. STAS: Eric Stas. I think the

9 answer from what you read there, Congress had

10 prescribed a five-year lead time. And

11 obviously you didn't hit the initial target

12 of the statute, that's why we're in the fact

13 of the situation. So this, what we propose

14 here reflects maintaining that five-year lead

15 time. 

16 MR. DELASKI: I see. So it's a

17 question of interpretation. It doesn't say

18 five-year lead time. That's not what the

19 language says. It says 2001. You are just

20 taking that five-year lag, and you are saying

21 "Well, we missed it by a decade. We are

22 going to go ahead and push this one forward

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1 by a decade as well."

2 MR. STAS: Right, but what it says

3 is, we shall issue an effective date or

4 whatever, it's five years. 

5 MR. DELASKI: The lag, it doesn't

6 say five years, it specifies 2006. But I

7 think the point I'm trying to make here is

8 that you are not, under the plain meaning of

9 the law, you are not bound to any particular

10 date when this rule would go into effect. 

11 Since January 1st, 2006, has gone by. 

12 So myþ I think you have some

13 flexibility here to go to January start date. 

14 I also think that the lag time between the

15 final rule and the effective date is a matter

16 that has to be inserted in this rule-making

17 to meet the criteria of 320.50. That is,

18 that you need to meet the criteria, taking

19 into account how are you going to maximize

20 energy savings, cost effective energy

21 savings, taking into account effective date,

22 and minimize manufacturing impact. We've

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1 heard a lot about manufacturing impacts being

2 high for the June date. So you'd have to

3 meet the NACA criteria, using date as a

4 variable. 

5 And that may mean four-and-a-half

6 year lead time or five-and-a-half year lead

7 time, it may be a three-year lead time. I

8 think the department has to be open to

9 looking at what the appropriate lead time

10 would be to help you meet the NACA criteria.

11 MR. BROOKMAN: So one obvious

12 question would be, does the consent decree

13 stipulate, mandate, this stuff? Or is it not

14 mandated, stipulated? Ron Lewis. 

15 MR. LEWIS: The issuance is

16 stipulated. The effective date is up to the

17 interpretation by general counsel. So we are

18 not going to answer that today. And most of

19 these issues, by the way, we are taking your

20 input, and there are things that we still

21 don't have the answers for, and we are going

22 to have to get back to you. 

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1 MR. DELASKI: I think the good news

2 on this is that it gives you flexibility to

3 address some of the concerns that you are

4 hearing today about minimizing some impacts

5 on the industry.

6 MR. LEWIS: That's why we have our

7 crack legal staff here, to hear your input. 

8 MR. STAS: Eric Stas, DOE. We want

9 to encourage everyone to give us their

10 comments or detailed comments on this issue,

11 and what your flexibility is. Is it a

12 January 1 date that is best? Is it something

13 in the spring, do you want to move closer to

14 that five-year period or some other period?

15 MR. BROOKMAN: Thanks to all of

16 you for commenting. This is useful, useful

17 comment for the department to hear. 

18 Now then let's proceed with the

19 slides. 

20 PARTICIPANT: Shall we go to test

21 procedures with Sriram's source on it?

22 MR. BROOKMAN: Yes, let's do that. 

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1 Sriram is up next. 

2 TEST PROCEDURES

3 MR. SOMASUNDERAM: Good morning. 

4 My name is Sriram Somasundaram. 

5 As with any products standards rulemaking, we

6 have to make sure that the product has a

7 relevant and updated test procedure in the

8 books. 

9 For this particular covered

10 product of central air conditioners and heat

11 pumps there was a test procedure final rule

12 published last Octoberþ October 22nd, 2007,

13 and the test procedure itself is listed in 10

14 CFR 430, subpart B, appendix M. 

15 Since then, EISA 2007, the Energy

16 Independence and Security Act, amended EPCOT 

17 to direct DOE to consider updated test

18 procedures for any products whose standards

19 were going to be revised or updated before

20 2010, or by 2010. 

21 And therefore this product falls

22 under that amendment, and EISA requires DOE

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1 to include standby mode and off-mode energy

2 consumption within the test procedure. 

3 It also directs DOE to include

4 these criteria in the standard þ in the

5 efficiency descriptor itself while setting

6 the standards, or independently as a separate

7 measure of the standard rule-making. 

8 DOE understands that the standby

9 mode and off mode energy consumption for the

10 case of the central air conditioners and 

11 heat pumps means it is the energy consumed by

12 the equipment when essentially the equipment

13 is off, turned off, or on a standby mode,

14 which means that when the equipment is not

15 providing heating, cooling, or ventilation. 

16 Finally, I wanted to say that DOE

17 expects to propose an amendment to the test

18 procedure as required by the amendment to

19 EPCOT, and as you know, the timeline for test

20 procedures final rule is before the NOPR,

21 before the standards rule-making is

22 published, which as you saw in the timeline

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1 slide, was fall of 2010. 

2 So what I wanted to clarify here

3 on the last bullet was that DOE expects to

4 publish a proposed rule for test procedure

5 later in 2009, and then a final rule by

6 October 2010, so it'll precede the NOPR

7 publication of the standards rule-making. 

8 MR. BROOKMAN: Okay, Karim on this

9 point first, and then to Don. 

10 MR. AMRANE: Karim Amrane, HOI. 

11 We have a very different

12 understanding of the Energy Policy Act with

13 respect to standby power for central air. 

14 In fact there is no mention of

15 central air in the Energy Policy Act. So I

16 guess I'm not sure why DOE is interpreting

17 the legislation as being mandated to look at

18 standby power where they are not listed at

19 all. 

20 And I hope that my friend, Harvey,

21 will support me here, because we worked

22 together at removing central air from the

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1 language in the bill. 

2 MR. BROOKMAN: Thank you. 

3 I see we are looking at the

4 statute here. 

5 Do we have other comments of this

6 ilk while we are doing our research over

7 here? Please, Don, and then I'll come to

8 you, Ted, I believe.

9 MR. BRUNDAGE: Don Brundage,

10 Southern Company. 

11 Just a quick comment on the test

12 procedure issue. I was ready to jump up and

13 object after reading this text here. 

14 What you just described on what

15 you are going to do for test procedure is

16 very reasonable, but it is not what you have

17 on the slide, what is itþ can this bullet be

18 corrected on the version that is posted on

19 the DOE website? 

20 Because youþ it really makes no

21 sense to have a test procedure that is not

22 integrated, and part of the NOPR. Because

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1 that is the definitionþ that is the ruler for

2 measuring efficiency, and that needs to be

3 done by the new test procedure in the NOPR. 

4 And that's not what this bullet says. It

5 says you are going to propose amendments by

6 October, 2010, not have a finished test

7 procedure that you extend the NOPR for to the 

8 fall of 2010.

9 MR. BROOKMAN: I believe Sriram

10 said a proposed amendment by 2009, and then þ

11 MR. SOMASUNDARAM: Final rule.

12 MR. BROOKMAN: þ a final rule by

13 2010. 

14 (Simultaneous voices)

15 MR. SOMASUNDARAM: We'll correct

16 it. 

17 MR. BROOKMAN: So we will correct

18 that slide. Thank you for calling that to

19 our attention. 

20 Other comments on this slide, #16? 

21 Yes, Ted, please. 

22 MR. POPE: Ted Pope. I just want

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1 to confirm my understanding that EISA 2007,

2 that DOE is required to assess the full test

3 method, and not just the standby mode

4 component. I think that is what the slide

5 says, but while you are looking at the

6 language I just want to be clear on that.

7 MR. BROOKMAN: Can you respond to

8 that one?

9 MR. SOMASUNDARAM: Yes. You mean

10 the EISA requirement? The EISA requirement

11 is specifically to look at this aspect into

12 any of the covered products. And the

13 relevant test procedures. In other words to

14 specifically address the standby mode and

15 off-mode energy consumption as a factor. 

16 MR. BROOKMAN: So I see Michael

17 Kido.

18 MR. KIDO: Yes, there is actually,

19 if you look at EISAþ I can give you precise

20 citationþ 

21 MR. BROOKMAN: You can't hear him?

22 Michael, you've got to speak up a little bit.

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1 MR. KIKO: All right, can you hear

2 me now? 

3 MR. BROOKMAN: Yes, that's good. 

4 MR. KIKO: If you go to EISA, there

5 isþ if you looked at 121 stack 1562, that's

6 the precise site, there is a section covering

7 test procedures, and itþ there is a section

8 in there that basically states that standby

9 mode and off-night energy consumption have to

10 be considered as part of the test procedure

11 measurements. 

12 So if you would like, I can show

13 it to you right now. 

14 MR. SOMASUNDARAM: I have the

15 document here. And actually if you go

16 further down there is a section that talks

17 about deadlines, and then lists the product

18 for which DOE has to do theþ has to look at

19 the standby power, and they list the dates by

20 which DOE has to issue a final rule on test

21 procedures. 

22 And central air are not listed.

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1 MR. KIDO: That is correct. Those

2 are specific deadlines for those specific

3 products. But there's still the requirement

4 that standby mode and off-mode be considered

5 as part of the test procedures that the

6 department promulgates. 

7 So that isþ 

8 MR. BROOKMAN: For all covered

9 products. 

10 MR. KIKO: Right, for all covered

11 products. This is an outgrowth of that

12 particular provision. 

13 MR. BROOKMAN: Maybe since there is

14 a statutory interpretation and text involved,

15 the two of you could put your heads together

16 at the break, the coffee break, and anybody

17 who wishes to join you can huddle right over

18 here next to the door, and maybe you can

19 arrive at a shared interpretation at that

20 point. 

21 Hung, and then to Harvey.

22 MR. PHAM: Hung Pham, Emerson

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1 Climate. 

2 Again, that issue, I thought the

3 test procedures today does have an on-off

4 cyclic test, and I think it does reflect that

5 today, because when we run those tests today

6 it's measured. 

7 I wonder if the department has

8 looked at that?

9 MR. BROOKMAN: Can you respond to

10 that one, Sriram?

11 MR. SOMASUNDARAM: I am not sure of

12 the particular intricacies.

13 MR. BROOKMAN: Your tests show that

14 those features are included?

15 MR. PHAM: Yes. 

16 MR. BROOKMAN: Karim.

17 MR. AMRANE: This is Karim again,

18 and I second what Hung is just saying. 

19 That's correct, it is. And maybe Brian

20 Dougherty from NIST can here also testify to

21 that as well, because he writes with this

22 procedure. 

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1 MR. BROOKMAN: Brian, do you want

2 toþ just find a microphone, and let us know

3 what you got.

4 Brian, your name please. 

5 MR. DOUGHERTY: They are correct.

6 Brian Dougherty at NIST. There is a cyclic

7 test procedure to give the C sub D value, and

8 that is 20 percent on, 80 percent off. So

9 that standby period of that 80 percent is

10 accounted for in the C sub D.

11 MR. BROOKMAN: Thank you. 

12 MR. DOUGHERTY: So it's

13 incorporated into SEER and into HSPS. 

14 MR. BROOKMAN: Explain to us what

15 the confusion is. Where are people confused? 

16 I'm serious. 

17 MR. DOUGHERTY: I mean standby

18 power is a big issue. So it just gets

19 globally thrown across. But certain test

20 procedures do cover it, and this is one case

21 that it is. 

22 MR. BROOKMAN: Your name, this

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1 gentleman first, and then we'll go around. 

2 This gentleman here. 

3 MR. McCULLOUGH: Bill McCullough

4 with Lenox. 

5 One of the points of confusion I

6 think is for an air conditioner, many times

7 the standby power is in the furnace, and

8 there is a transformer that provides power

9 for the control side. 

10 This is focused on air

11 conditioning and heat pumps, and so that part

12 gets hidden. 

13 MR. BROOKMAN: Okay, your name,

14 please?

15 MR. KELLER: Fred Keller, Carrier. 

16 And I think part of the confusion is that the

17 current standard includes the standby power

18 when the unit is in the operating mode. So

19 the unit can cycle on and off, the control

20 system is still powered. But it does not

21 include the power for like the heating period

22 of time when you are in theþ if it's the

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1 heating mode, you have got the cooling system

2 completely turned off. It doesn't include

3 that power in the number. 

4 MR. BROOKMAN: Okay, Andrew. 

5 MR. DELASKI: It strikes me that if

6 the test method includes standby and includes

7 the documentation, that the department would

8 come to the conclusion that no revision is

9 needed for the test method. 

10 So this is simplyþ it strikes me

11 as being a data question that could be

12 answered just through analysis. But the

13 department under the law is compelled to

14 answer that question. 

15 MR. BROOKMAN: Harvey, I dropped

16 you out of the queue. I'm sorry, you're

17 next. 

18 We have specific questions we wish

19 to put up, some of which will lead us towards

20 these answers. But Harvey go ahead, and then

21 we'll move on. 

22 MR. SACHS: I want to defer getting

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1 þ this is Harvey Sachsþ I want to defer

2 getting back to Karim on his question to me

3 about last year's conversations. But in the

4 meantime, what strikes me about the test

5 procedure questions, and this goes on what

6 Don and Hung I think both have alluded to is,

7 the test procedure, the rating method, is

8 absolutely key for the analysis. It is the

9 yardstick, and this is intimately tied up

10 with the regional questions. 

11 If we are going to do a hot dry,

12 which is shifting the bin hour waiting to

13 some economic value, that is absolutely key

14 for any further analysis, and I just do not

15 understand why the department has not

16 included this in its framework.

17 MR. BROOKMAN: So let's then, in

18 your comments, if you would, please, make

19 sure and describe fully how the departments

20 should sequence these things. 

21 Gary. 

22 MR. SACHS: Oh, we will address

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1 that in large type, sir. Thank you. 

2 MR. FERNSTROM: So Gary Fernstrom

3 for PG&E. I'd absolutely like to agree with

4 Harvey. Harvey stated earlier the test

5 procedure was broken, and we need to

6 reevaluate it in order to get the information

7 to determine the performance of this

8 equipment in the various climate zones that

9 we would like to see its efficiency improved.

10 MR. BROOKMAN: Karim. 

11 MR. AMRANE: Karim Amrane, HOI. If

12 you want to re-evaluate the test procedures

13 the way you want to re-evaluate, Harvey, I

14 mean this is going to requireþ it's not going

15 to require one month or two months; it's

16 going to require years. So I don't see how

17 you will be able to finish this rule-making

18 in three years, honestly. 

19 So let's stop the discussion and

20 make sure that we understand what we are

21 talking about here. We are talking about the

22 revamp of the test procedures; we are talking

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1 about years. 

2 So if you want to do that, then we

3 are not going to come up with new efficiency

4 standard by 2016. I mean it's not going to

5 happen. 

6 MR. BROOKMAN: Harvey. 

7 MR. SACHS: I appreciate Karim's

8 comments. I think that we have a lot of

9 variables to consider, including lead time

10 for design, including the rating method, to

11 arrive at 2016. 

12 If the benefits are important

13 enough we might think that late 2016 works. 

14 But I think that these issues are important,

15 and to defer this may give us the wrong

16 outcome in terms of stringency versus waiting

17 methods, where we are thinking stringency

18 will satisfy hot dry needs or hot unit

19 issues, when they are just not related as far

20 as I can tell to a higher SEER. 

21 So I think that I speak for a

22 number of people in believing that if we

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1 don't address the rating methods in some way,

2 and understand their impact, we are really

3 beating our drums, and not going to achieve

4 any meaningful gains either for the

5 manufacturers or the energy budget. 

6 MR. BROOKMAN: I want to recognize

7 Ron Lewis. But I'm thinking at this point

8 that perhaps some of you are more empathetic

9 towards the department's positions. 

10 Ron. 

11 MR. LEWIS: I just wanted to

12 correct that the focus date is not 2016; it's

13 2011, because that's in the consent decree. 

14 That's when we have to issue this by, so

15 that's what our eye is on, is delivering

16 that, the effective date with the help of GC,

17 we will find out what our flexibility is

18 there. But that has no impact on what we

19 have to accomplish by 2011 in issuing it. 

20 The test procedure on AC has been

21 updated probably more frequently and more

22 recently than almost anything else that we

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1 have got, and there has been input on that. 

2 MR. SACHS: And we were invited not

3 to participate, if I might interrupt, in the

4 test procedure update, last round. Harvey

5 Sachs. 

6 MR. BROOKMAN: So Ron, please. 

7 MR. LEWIS: So what would be most

8 helpful is, in this dialogue that has been

9 going on here, is specifics of what people

10 feel are necessary and not just a general

11 kind of approach, but if there are things

12 that you think are missing, or things that

13 you think we need to do specifically, to give

14 it to us in specifics and not generalities. 

15 MR. BROOKMAN: Just to confirm,

16 Ron, you anticipate that the timetable that

17 Sriram laid out is doable?

18 MR. LEWIS: The time that we have

19 that's limited, and I think it's been

20 reinforced here that in order to move forward

21 with a standard, you need to know the test

22 procedure, and that the tradition over the

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1 last 10 years, I guess, maybe longer than

2 that, I don't know before that, was to have

3 the test procedure, the final rule, done

4 before the NOPR, before the standard was

5 done. And that was the model that we're

6 working by, and that is in the report to

7 Congress, I believe. 

8 So that is the model that is up

9 there, to have that accomplished by then. So

10 to get that accomplished, to have time to put

11 out a NOPR on a test procedure, get comments,

12 be able to respond to that and get a final

13 rule out in time, we are in a crunch. There

14 is not a whole lot of time to look at. 

15 So if you have issues, you have

16 specifics, it's very important that you lay

17 those out early, because we have such limited

18 time. 

19 MR. BROOKMAN: Okay, so I have

20 several people who wish to speak. Lance and

21 then Paul and then Jim.

22 MR. DELAURA: This is Lance. I

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1 absolutely agree with what was said in terms

2 of the test procedure being updated. It's

3 really the essence for each of the regions. 

4 There really needs to be a specific testing

5 method that matches the regions. 

6 We will file more about this in

7 our written comments, but a couple of

8 thoughts. We mentioned EER earlier, that we

9 think that is essential. The test protocols

10 should accommodate other technologies beyond

11 air-cooled expansion unitary equipment. 

12 We think the protocols should

13 reflect a more realistic static pressure. 

14 And then there is a whole series

15 of issues in terms of rates for the area that

16 this is going to be considered. So are there

17 time-of-use rates in effect for those areas? 

18 California is one of the areas that is

19 working with time-of-use rates that creates a

20 different scenario. 

21 There is the time value of energy

22 that is to be considered. Is energy on-peak,

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1 off-peak, those sorts of things. So there is

2 a lot of detail to get into. 

3 But we will submit, I think the

4 other California utilities will do the same,

5 detailed explanations and recommendations

6 along these lines. 

7 MR. BROOKMAN: Thank you. 

8 Paul.

9 MR. DOPPEL: Paul Doppel. And

10 while we are on test procedures I'd just like

11 to reiterate that there are several issues

12 where the ductless mini splits and multi13 splits have inconsistencies with central air

14 conditioning products in the test procedure

15 that need to be corrected by the 2010.

16 MR. BROOKMAN: Thank you. And so

17 the department really requests specifics, and

18 specifically the fixes, I think. 

19 MR. DOPPEL: Those will be

20 provided.

21 MR. BROOKMAN: Jim.

22 MR. CRAWFORD: Jim Crawford. I

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1 want to agree with what I thought Harvey was

2 saying earlier, and the first thing is, if

3 these changes we are talking about, if these

4 are changes that are going to affect how one

5 measures and establishes the efficiency

6 performance under the law, then they are

7 going to impact every aspect of the analysis

8 process. 

9 And if we went so far as to

10 incorporate some of the thoughts that the

11 last speaker suggests, we probably could be

12 working on this for another 10 or 15 years. 

13 And until such time as we know

14 what changes the department is proposing on

15 the test procedure, it's virtually impossible

16 for us to intelligently comment on those

17 changes. 

18 And that has got to be resolved

19 before, again, before you can go very far

20 with the analysis process. If you take the

21 discussion that has been floating around here

22 for the last 20 or 30 minutes, if all those

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1 factors have to be considered, you need to

2 haveþ you need to be at your final rule on

3 the test procedure probably two to three

4 years before your final rule on the product

5 itself.

6 MR. BROOKMAN: So let's leave it to

7 the department, then, to define looking

8 ahead, how they intend to address the test

9 procedure issue, what their timetable would

10 be, what the steps they are going to take

11 are, and I'm going to suggest that we move to

12 the next slide, and try and answer the

13 question so we stay fairly much on track here

14 this morning. 

15 And Sriram, you have a comment

16 before we move to 17?

17 MR. SOMASUNDARAM: Yes. Just to

18 add to what Ron Lewis was saying earlier, DOE

19 has contracted with NIST toþ and Brian

20 addressed this issue earlierþ to help us get

21 the updates to the test procedure done in

22 time. 

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1 So we do have a task for NIST to

2 give us all the updates, both from the

3 industry standpoint, and also from the

4 regulatory standpoint, and it needs to be

5 addressed. 

6 MR. BROOKMAN: Ron, and to address

7 this issue, DOE will lay out a schedule or a

8 set of steps that it intends to follow? Or

9 is it just something that NIST is going to

10 do?

11 MR. LEWIS: We will take theþ NIST

12 is working in a support role to help us to do

13 what we are responsible for. So it's not

14 NIST's responsibility to do this. And we

15 will þ we have to have a plan to act to. So

16 we are taking all the input, and although

17 this is very helpful, a lot of the input, we

18 are not going to have the answers to

19 everything right away. We are going to take

20 all the input and go back and re-huddle, and

21 take a look at what we have heard today, and

22 take a look at where we are and where we go

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1 from here. 

2 So there are a lot of things that

3 are variable. That is the reason for this

4 public meeting is to get this input, so we

5 can go back and take a look at it, and get

6 comments on what weþ our starting point. 

7 This is the starting point, and

8 the starting point only. So we have laid out

9 what our thoughts are right now, we are

10 getting input, and then the natural process

11 is to go back, consider all the comments

12 given, and devise our plan from here forward.

13 MR. BROOKMAN: Thank you. 

14 Okay, so then, Don, final comment

15 before we move to slide #17.

16 MR. BRUNDAGE: Yes, Don Brundage,

17 Southern Company. 

18 This is one of those things that

19 it's hard to figure out where to fit in but

20 may simplify the discussion of test procedure

21 changes. 

22 One of the comments in discussing

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1 this issue in the state of Florida, and I

2 have discussed it with Andrew also, is that

3 if you haveþ for health and safety reasons

4 a local jurisdiction wants to establish a

5 minimum sensible ratio for equipment sold in

6 the area, not to try to pre-empt NACA on

7 efficiency, but to set performance standards

8 to make sure that public health and safety is

9 protected, is that allowed under NACA? Could

10 a state not allow certain NACA limited

11 products as part of its building code that

12 did not have, say, adequate dehumidification

13 capability?

14 If the department would clarify

15 that, some of the need for dramatically

16 changing the test procedure might go away if

17 the states were provided flexibility to not

18 allow equipment that is still suited to meet

19 the cooling needs in the local jurisdiction. 

20 MR. BROOKMAN: Okay, thank you,

21 Don. 

22 Now on to slide #17. As you look

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1 at these items, we will start with 1.1, and

2 it's a rather, a couple of very specific

3 questions. 

4 Sriram, do you want to read them

5 so we have them in the record? 

6 MR. SOMASUNDARAM: Right. So these

7 are the first three questions that we are

8 requesting feedback on. 

9 And they also appear in the

10 framework document under Section 1. 

11 So the item 1.1 is specifically

12 requesting comment and feedback on how DOE

13 might address the standby power modes and the

14 magnitudes of the standby power consumption

15 when the unit is turned off or on standby

16 mode. 

17 Item 1.2þ 

18 MR. BROOKMAN: Let's do one at a

19 time. 

20 MR. SOMASUNDARAM: Sorry. 

21 MR. BROOKMAN: Comments on that one

22 first. I want to establish some momentum

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1 here. Comments on power modes and magnitudes

2 of standby power consumption.

3 MR. ROBERTS: This is Tom Roberts. 

4 That is adequately addressed by the current

5 standard. Tom Roberts.

6 MR. BROOKMAN: Other comments with

7 respect to this? Karim.

8 MR. AMRANE: Karim Amrane. I wish

9 we had done the homework here. I mean those

10 are addressed in the test procedure, and very

11 strange that DOE is asking questions on its

12 own test procedures that apparently DOE

13 doesn't know it covers already. 

14 MR. BROOKMAN: Okay. Craig, you

15 want to add on?

16 MR. MESSMER: Craig Messmer. Are

17 you looking for like specific wattage when

18 the fans are turned off? Transformers?

19 MR. SOMASUNDARAM: In terms of the

20 control systems, what may be turned onþ or

21 what may remain on when the compressor is not

22 providingþ the compressor or the fanþ is not

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1 providing any airflow for cooling, heating or

2 ventilation. 

3 MR. BROOKMAN: So Craig, can you

4 address that?

5 MR. MESSMER: Well, we make fan

6 coil units, and I know that some of our

7 circuit boards are under 10 - 12 watts. So

8 you want to use that number, that's what we

9 would have. 

10 MR. BROOKMAN: Yes, Jim. 

11 MR. CRAWFORD: Doug, I think that

12 if there is a question here of merit, it

13 needs to be fleshed out and submitted to the

14 industry so that considered responses can be

15 made rather than knee-jerk responses sitting

16 around the table.

17 MR. BROOKMAN: You think this is

18 too specific, and the answer requires

19 consultation inside the industry?

20 MR. CRAWFORD: I think it's not

21 specific enough. 

22 MR. BROOKMAN: I see. 

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1 MR. CRAWFORD: I don't think the

2 question is specific enough. And I don't

3 think that the answers that we would give

4 today would be a legitimate basis for any

5 decisions. 

6 MR. BROOKMAN: What about the

7 second question? DOE invites comments on

8 whether it would be technically feasible to

9 incorporate standby power consumption into

10 the SCER metric, or whether it instead 

11 should be considered as a stand-alone measure

12 for this rule-making. 

13 MR. CRAWFORD: Until I see the

14 question for 1.1, it's kind of difficult to

15 measure 1.2, to answer 1.2. But any presumed

16 power consumption that is added to the test

17 procedure without adding cooling capacity to

18 go along with it is automatically going to

19 suppress the performance rating number. 

20 That creates all kinds of rather

21 difficult problems throughout the industry

22 where today it's a 13 and tomorrow it's a

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1 12.5. That'sþ I'm concerned that we are

2 changing the yardstick, and the public has

3 gotten pretty well accustomed to a yardstick. 

4 It doesn't say that maybe it shouldn't be

5 some other measure. 

6 MR. BROOKMAN: Let's hear from a

7 few others. Gary and then Andrew. 

8 MR. FERNSTROM: Okay, from PG&E's

9 point of view, when we assess the energy

10 efficiency performance of a product, we need

11 to know what power that product is demanding

12 each of 8,760 hours a year. 

13 So it would be important for us to

14 know what the standby power is, irrespective

15 of what cooling that product may or may not

16 be delivering. 

17 MR. BROOKMAN: Andrew. 

18 MR. DELASKI: Gary addressed the

19 part I wanted to say. But also I think with

20 respect to a change in the questions, if we

21 suddenly begin taking into account modes that

22 are not currently reflected in the energy, in

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1 the current test method, my understanding of

2 the law is that DOE is obligated to true-up

3 test methods, or true-up the standard in a

4 way that things that comply today, a machine

5 that complies with standards today complies

6 tomorrow, so we are not changing the standard

7 by changing the test method. 

8 I think that I just wanted to

9 confirm that. 

10 MR. BROOKMAN: Lance. 

11 MR. DELAURA: Just a quick comment. 

12 Standby power loss is in quick comment. 

13 Standby power loss is in general, regardless

14 of the type of equipment. It's a large focus

15 for California and the California Energy

16 Commission which unfortunately because of the

17 timing was not able to be here today so I

18 guess I'll speak for them, that we don't want

19 to ignore that issue. It's very large, and

20 it impacts demand. It impacts the peak load.

21 MR. BROOKMAN: So will they or you

22 or somebody submit those as comments to the

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1 department?

2 MR. DELAURA: Yes, we will make

3 sure that the California Energy Commission is

4 aware of what is discussed here today, and

5 they will make their own independent

6 comments. 

7 And when I say I'm speaking for

8 them, I am speaking as an observer of their

9 process. 

10 MR. BROOKMAN: Thanks for

11 clarifying that as well. 

12 I'm going to go then to Kyle, and

13 then to Brice. Please.

14 MR. McCULLOUGH: Bill McCullough. 

15 One of the things, there is more to the

16 question that we can't answer here but we

17 would need to consider in this for an air

18 conditioner when in the off cycle if there is

19 a call for heating in a gas furnace

20 technically it would not have any standby

21 usage. And what percent of the time would

22 that period be?

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1 MR. BROOKMAN: Okay. 

2 MR. McCULLOUGH: And so that would

3 need to be considered in exactly do you

4 account for the transformer off power, you

5 could get the VA of that differently from a

6 heat pump to an air conditioner. 

7 MR. BROOKMAN: Okay. Brice. 

8 MR. BOWLEY: Brice Bowley, General

9 Electric. I think part of the question is,

10 is really what is standby power. I think

11 that is why the cycle portion of the test

12 method has been included with evaluating

13 these units, it's really the unit isn't

14 performing its intended function whenever

15 it's turned on, which is why you need to

16 address these different modes and energy

17 usage, at the hope, during the entire

18 operation of the unit. 

19 I think the question is, you could

20 design a unit such that the fan runs

21 continuously, so is there really a standby

22 mode in that unit? Again, I think it's much

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1 better to address it with the test method as

2 it is with the cyclic portion. 

3 MR. BROOKMAN: Harvey Sachs? Jim,

4 did I drop you out? I think I dropped Jim

5 out. Go ahead, Jim, and then Harvey. 

6 MR. CRAWFORD: The question sort of

7 touched on here is what is standby. And one

8 of the things that is not recognized,

9 certainly on Capitol Hill, and maybe in this

10 building, is that there is a reason for the

11 power consumption for transformers, for

12 thermostats and controls. 

13 And a principal reason is personal

14 safety and fire safety. The most egregious

15 example of standby power is doorbells. That

16 little transformer sits there and sucks up

17 watts, 8,760 hours a year, and gets pushed

18 three times a year for about two seconds. 

19 Why do you do that? You do that

20 to avoid line voltage switching. You do that

21 in an HVAC system to avoid line voltage

22 thermostats, which are notoriously

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1 unreliable, notoriously wide dead bands. 

2 That power supply is providing a

3 useful function every hour of every day of

4 the year. It's notþ it doesn't know it's in

5 standby, because it's working. 

6 MR. BROOKMAN: Gary, follow on, and

7 then I'm coming to Harvey. 

8 MR. FERNSTROM: Okay, just a real

9 quick comment. There is no dispute there. 

10 These transformers are impedance protected,

11 and that's a safety issue. That's why they

12 have the standby mode they do. 

13 However, that usefulness that

14 utility could be provided more efficiently

15 with a different type of product other than a

16 magnetic transformer. 

17 So what we are looking at in

18 California is how the efficiency of that

19 service can be improved. And I think there

20 is an enormous opportunity to improve

21 doorbell transformer efficiency. 

22 (Laughter)

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1 MR. BROOKMAN: Harvey Sachs. 

2 MR. SACHS: I only want to ask two

3 questions, one is that given that the service

4 of continuous ventilation is being provided,

5 and used in a reasonable fraction of houses,

6 we are again back to the so-called furnace

7 fan issue of where the efficiency of that

8 service provision is to be evaluated. 

9 And I state that as a question. 

10 The other one that is much more

11 important to me today is what I call item

12 1.4, that we have not asked forþ given any

13 request for feedback on what, if anything,

14 has to be done to the rating method to enable

15 the department to adequately consider

16 regional standards?

17 I mean we've got this 800-pound

18 gorilla sitting over in the corner of the

19 room, and we are worrying about the mice.

20 MR. BROOKMAN: So Harvey and

21 others, if you could advise the department of

22 what that information would be, I'm certain

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1 they would appreciate that. 

2 MR. SACHS: I assure you, we will

3 require no second invitation. 

4 MR. BROOKMAN: Thank you. 

5 I want to provide an opportunity

6 to comment on item 1.3. I also want to

7 provide an opportunity shortly for us to take

8 a break. So take a peek at it. DOE also

9 invites comments on the necessary changes to

10 the existing DOE test procedure for central

11 air conditioners and heat pumps to account

12 for standby power consumption and its

13 measurement. 

14 I think we have touched on this

15 considerably already, but final comments

16 before we move on? 

17 Okay, we have made good progess. 

18 We have had really very straightforward and

19 effective dialogue already today. 

20 It's 10 minutes after 11:00. I'm

21 going to suggest we take a break. We will

22 resume at 11:25. 

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1 While you are walking in this

2 building, make sure to wear your building

3 pass, and also we are likely now since we are

4 taking a late coffee break to work at least

5 until 12:30 before we break for lunch. So if

6 that means you need a banana for your blood

7 sugar, go get it. 

8 (Whereupon at 11:10 a.m. the

9 proceeding in the above-entitled

10 matter went off the record toe

11 return on the record at 11:28

12 a.m.)

13 MR. BROOKMAN: Okay, let's start. 

14 So we are proceeding as the agenda

15 lays out, and next we are going to hear

16 market and technology assessments, screening

17 analysis, engineering analysis, and

18 preliminary manufacturing impact analysis

19 from Mike Christopher. 

20 Hey, folks, let's settle down

21 please. Mike Christopher is our next

22 presenter.

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1 MARKET AND TECHNOLOGY ASSESSMENT, SCREENING

2 ANALYSIS, ENGINEERING ANALYSIS, AND

3 PRELIMINARY MANUFACTURER IMPACT ANALYSIS

4 MR. CHRISTOPHER: Thank you, Doug. 

5 I'm Mike Christopher with Navigant

6 Consulting. And the next few chunks of the

7 agenda we are devoting to the analyses that

8 will be conducted for ANOPR, the Advanced

9 Notice of Proposed Rulemaking. 

10 Those analyses will begin

11 following the conclusion of the comment

12 period for the framework whenever that may

13 be, and will finish in the fall of next year.

14 So the first four analyses in

15 this, that are conducted for the ANOPR, are

16 market technology, screening, engineering and

17 a preliminary manufacturing impact analysis. 

18 The first of these, the market and

19 technology, is a collection of data by DOE to

20 characterize the industry and the market for

21 residential central air conditioners and heat

22 pumps, and also is a chance to identify those

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1 technologies and designs that can improve the

2 efficiency of these products. 

3 So what DOE does is looks at data

4 such as shipments, trends in the market and

5 forecasts, looks at regulatory and

6 nonregulatory initiatives that may also have

7 impacts on efficiency; and as I mentioned,

8 identifies the technologies that can be used

9 to improve efficiency. 

10 This is just a general request for

11 feedback, item 3.1. DOE is looking for any

12 information that stakeholders can provide

13 that would assist in developing this

14 characterization and this list of

15 technologies.

16 MR. BROOKMAN: Yes, please, Kyle.

17 MR. GILLEY: Kyle Gilley. Just a

18 clarifying question. When we talk about

19 market trends, does that also include things

20 like repair versus replacement phenomenon

21 that we've been seeing in the marketplace?

22 MR. CHRISTOPHER: That is typically

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1 looked at I believe in the LCC analysis. 

2 Shipments analysis and LCC; so that would be

3 a different analysis.

4 MR. GILLEY: So that goes into the

5 shipment analysis?

6 MR. CHRISTOPHER: Yes.

7 MR. BROOKMAN: Which comes later. 

8 Which comes later. 

9 MR. CHRISTOPHER: We will talk

10 about that later in the day.

11 MR. BROOKMAN: Gary.

12 MR. FERNSTROM: So there is a broad

13 range of technologies, some of which have

14 been identified to us from the California

15 Cooling Technology Center, which we work

16 closely with. They are going to be

17 submitting some comments regarding that. But

18 one I'd like to mention right now is, we

19 should definitely be looking at water cooled

20 condensers. 

21 MR. BROOKMAN: Thank you. 

22 So other comments on information

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1 sources?

2 Karim, thank you. 

3 MR. AMRANE: Karim Amrane, AHRI. I

4 believe that water cooled condensers are

5 outside of the scope of this rulemaking. I

6 think we are talking about air conditioned

7 cooling only.

8 MR. BROOKMAN: Okay. What about

9 the other products, Karim? 

10 MR. AMRANE: Water cooled

11 condensers are covered under a different part

12 of the regulation.

13 MR. BROOKMAN: Just to follow on,

14 Gary, but I want to return to Karim in a

15 moment. 

16 Go ahead. 

17 MR. FERNSTROM: Well, my responding

18 question would be why this type of equipment

19 is available in California in residential

20 models which are within the scope of this

21 rulemaking. 

22 MR. BROOKMAN: That was Gary. 

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1 Go ahead. 

2 MR. CHRISTOPHER: I don't want to

3 quote the CFR without it in front of me, but

4 if anyone has the definition on hand of what

5 a central air conditioner is, I believe it's

6 air cooled.

7 MR. BROOKMAN: Yes, Ted.

8 MR. POPE: Would that also apply to

9 a system that uses evaporatively cooled air

10 to cool the coil?

11 MR. CHRISTOPHER: I don't have an

12 answer to that. 

13 MR. FERNSTROM: Gary from PG&E. If

14 we exclude water cooled condensers simply

15 because they are deemed to be outside of the

16 scope, we are foreclosing a look at a

17 significant energy efficiency improvement

18 opportunity here. 

19 It would seem to me that would be

20 a mistake.

21 MR. BROOKMAN: Thank you. 

22 Jim Crawford.

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1 MR. CRAWFORD: I guess as a

2 manufacturer of water cooled equipment, I

3 want to thank the gentleman for his promotion

4 of water cooled equipment. But this is an

5 air cooled air conditioner heat pump standard

6 that we are dealing with. And if we want to

7 open it up and try to put all kinds of

8 equipment under one rating system, we will be

9 here when the youngest of you retires. 

10 MR. BROOKMAN: Thank you. Yes, let

11 me go with Don and then Harvey.

12 MR. BRUNDAGE: A quick comment. 

13 It's not all a disadvantage if this is not

14 within the scope. Because if it's not within

15 the scope of the NACo rulemaking, then that

16 leaves it free for your local jurisdiction to

17 set its own standards, which in the case of

18 California tends to be a preferable route

19 anyway. 

20 MR. BROOKMAN: Let me let Karim

21 follow on there. 

22 MR. AMRANE: Karim Amrane from

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1 AHRI. No, I mean water cooled, a culvert for

2 example, and actually I think they are

3 covered. It's not like they are not. 

4 (Simultaneous voices)

5 MR. BROOKMAN: Okay, Harvey.

6 MR. SACHS: Harvey Sachs. Just for

7 the record I get the sense we are compounding

8 two classes of equipment, water cooled

9 equipment versus water sprayed evaporative

10 condensive units. And I think that

11 distinction is important, and I believe that

12 Gary Fernstrom was referring to the former,

13 and Ted Pope to an indirect form of an

14 evaporative cooled condenser, not to water to

15 refrigerant heat exchange.

16 MR. BROOKMAN: Okay, thank you for

17 that clarification. 

18 I am going to suggest we move on

19 to slide #22 then, current product classes

20 and standards. 

21 MR. CHRISTOPHER: The current

22 product classes which I'm sure most of you

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1 are familiar with, and the current standard

2 levels are here. They include split and

3 single package, air conditioners and heat

4 pumps; small duct high velocity systems

5 currently have their own product class; as

6 well as space constrained air conditioners

7 and heat pumps; and currently through the

8 wall systems, both split and package, have

9 their own product class. However, the

10 definition of through the wall products is

11 such that this product class ceases to exist

12 on January 23rd, 2010. And we will talk a

13 little bit more in a minute as to the

14 implications of that. 

15 Another note to make here is that

16 although small duct high velocity systems

17 have a standard that is codified in the CFR

18 of 13 SEER 7.7 HSPF, there currently is

19 exceptional relief in place for the three

20 manufacturers that have applied for that in

21 the form of standards at 11 SEER and 6.8

22 HSPF. 

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1 DOE intends to look at these

2 product classes, in this rulemaking,

3 maintaining split and single package air

4 conditioners, heat pumps, as well as small

5 duct high velocity systems. 

6 And continuing with space

7 constrained air conditioners and heat pumps. 

8 And there are two items for feedback here,

9 the first of which DOE is looking for

10 feedback on these product classes. And item

11 3.3 would like to know, are there other

12 classes that DOE should look at, and should

13 all of these classes be considered. 

14 MR. BROOKMAN: Don first. 

15 MR. BRUNDAGE: Don Brundage,

16 Southern Company. There are products under

17 development which are not really commercial

18 now, but likely would be by the time of the

19 final rule to independently control humidity

20 and space cooling, either through residential 

21 systems for things like hot gas reheat from

22 GHP AC system. 

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1 My question is, would that fall

2 under one of the existing product classes as

3 defined, and if not, should it potentially

4 have a separate class? My concern is that,

5 and this is all the chicken or the egg issue

6 because of test procedure, if you have

7 something that directly goes after humidity

8 control and doesn't produce more sensible

9 cooling, it's going to show þ it's going to

10 do very poorly under the current test

11 procedure, and probably would have trouble

12 making SEER 13. 

13 If it does fall under the

14 definition with existing product classes, I

15 would suggest that it might be useful to

16 carve out a separate class for a premium

17 separate controller, humidity þ

18 dehumidification, and space cooling to

19 prevent restrictions on this product entering

20 the market. 

21 The manufacturers could probably

22 answer better on this than I could, but the

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1 numbers I have seen, these things use

2 substantially more energy for the same amount

3 of sensible cooling. But they dehumidify

4 quite well.

5 MR. CRAWFORD: But SEER and EER

6 are not predicated just on sensible cooling. 

7 It's total cooling. 

8 MR. BROOKMAN: That was Jim

9 Crawford.

10 MR. CRAWFORD: And latent cooling

11 is often actually more efficient than

12 sensible cooling. 

13 MR. CRAWFORD: I guess my question

14 is, is it a different enough product in

15 characteristics and performance that it

16 deserves a separate product class.

17 MR. BROOKMAN: Yes, please, your

18 name for the record. 

19 MR. ARNOLD: Dan Arnold of

20 Nordyne. I'd like DOE's legal counsel to

21 comment on whether my interpretation of NACA 

22 is incorrect. Because I believe that NACA

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1 prohibits consideration of technologies that

2 are currently not available in the market. 

3 So in other words the standard

4 cannot be set for something that is in

5 development or is conceivable but not

6 commercially currently available. 

7 MR. BROOKMAN: Eric Stas. 

8 MR. STAS: Eric Stas, DOE. DOE has

9 traditionally looked at things which are a

10 working prototype for example that could be

11 brought into the commercial realm, things

12 that are strictly R&D we haven't considered.

13 MR. BROOKMAN: Don Brundage. 

14 MR. BRUNDAGE: Don Brundage, I want

15 to clarify þ I'm not suggesting setting a

16 standard for it. I'm suggesting defining the

17 product classes to not unduly prohibit these

18 products when they come into the market. 

19 I think it'd be premature to set a

20 standard, but I don't want to have the way

21 the product classes are defined, it'd be a

22 barrier when they are introduced. But by

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1 forcing them into one of the existing classes

2 þ 

3 MR. BROOKMAN: So is there a simple

4 answer to this question? Yes, Karim. 

5 MR. AMRANE: Karim Amrane, I think

6 the answer is the waiver process. I mean

7 they can always file a waiver if they cannot

8 meet the standards. 

9 MR. BROOKMAN: Okay, so then the

10 questions that are on the table here now are

11 these product classes, what you think of

12 them, and should there be other product

13 classes considered. 

14 Paul and then to Harvey. 

15 MR. DOPPEL: For the ductless

16 products, again we would recommend that

17 consideration be given to the ductless mini18 splits as a separate product class, because

19 they are installed differently; they cover a

20 different market segment than central air

21 conditioning; and their general size usage,

22 their average size usage in the industry is

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1 somewhere around between 12 - 15,000 bTUs, as

2 compared to the larger central air

3 conditioning systems, and also the variable

4 refrigerant flow products have sort of

5 included the ductless multi-splits, and we

6 feel that the BRF products need to have a

7 separate product class also. 

8 MR. BROOKMAN: Thank you. 

9 Harvey. 

10 MR. SACHS: The comment would just

11 be on Mr. Brundage's request for alternative

12 ways to deal with the enhanced

13 dehumidification products. And one of those

14 would be a rating method change which might

15 involve moving from 8067, interim conditions,

16 to some other set, and there are a lot of

17 ways, and this is not the place nor time to

18 get into the details, but to suggest that an

19 alternative rating route might be a

20 possibility for that class of products. 

21 MR. BROOKMAN: Is that what you

22 would suggest for the department to consider?

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1 MR. SACHS: Darn straight I want to

2 consider it. I'm not sure it's the answer. 

3 MR. BROOKMAN: Okay, please, your

4 name for the record. 

5 MR. MUCCIOLA: Vince Mucciola.

6 MR. BROOKMAN: If you would please

7 use the microphone. This is fully recorded

8 here. 

9 MR. MUCCIOLA: Vince Mucciola,

10 National Comfort Products. 

11 We are the only member of AHRI

12 that is a through-the-wall condensing unit

13 and heat pump, and I would like to see us be

14 able to continue that through-the-wall

15 classification in these planning states.

16 MR. BROOKMAN: Thank you. 

17 MR. CHRISTOPHER: Just a quick

18 comment. We will look at that in a couple of

19 slides, and any comments you have then we'd

20 appreciate. 

21 MR. BROOKMAN: Okay, Mike then Jim.

22 MR. CRAWFORD: The point has been

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1 made twice that VRF is something new and

2 unique. Variable refrigerant load

3 implemented in various ways has been in the

4 market for well over 30 years, and the

5 current test procedures accommodate that and

6 recognize it and have for over 20 years. 

7 MR. BROOKMAN: Okay, so it's Bill.

8 MR. McCULLOUGH: Bill McCullough

9 with Lenox. I guess I would second Jim's

10 comment on the VR, variable refrigerant

11 volume units, and for many splits, while they

12 are installed differently, the consumer uses

13 them still for the same purpose, and I think

14 they should remain in the same product class,

15 much as air conditioning in single package

16 units are in the same product class. 

17 MR. BROOKMAN: Okay, thank you. 

18 Did you have a comment? Is it

19 Brice? No? Okay. So then additional

20 comments on, are these the product classes

21 that the department should use? Should there

22 be others?

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1 I guess we've heard þ Harvey. 

2 MR. SACHS: Bill, Bill McCullough,

3 the comment you made is most interesting in

4 terms of defining product classes by

5 consumers' view of service. And I guess it's

6 intriguing, because it would argue for

7 example for integrating the ground-source

8 heat pump rating method with the one at issue

9 today.

10 It's seen as providing the same

11 service by the consumer. 

12 MR. BROOKMAN: You wish to expand

13 to that class as well, Harvey?

14 MR. SACHS: I don't think that that

15 is going to enable us to get this proceeding

16 done within two lifetimes, but I'm just

17 trying to suggest that the service argument

18 while being important is one that the

19 industry itself has resisted in conjunction

20 with other categories of equipment. 

21 MR. BROOKMAN: Yes, Hung. 

22 MR. PHAM: Hung Pham, Emerson

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1 Climate. I just listening to the comments

2 here have a concern relative to whether DOE

3 needs to relook at what the intent is for the

4 efficiency and test procedure standard. 

5 Looking back 20 years ago it came

6 about as a means to compare different

7 equipment under the same conditions, as much

8 as possible. 

9 The intention is for the consumer

10 to be able to buy equipment A and equipment B

11 and know that a 14 SEER is X percent better

12 than a 13 SEER. 

13 I think we are now raising

14 questions that are not along the line of the

15 uniform test standard. We are talking about

16 DOE coming up with an application standard,

17 something that can reflect two refrigerators,

18 one in a home here and I open the door 10

19 times, and the other guy only opens it three

20 times, and I want to reflect that energy

21 savings. 

22 I think we need to realize that

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1 there is a limit on how far DOE can go with

2 that, time of use, and heat loading, and all

3 of those things. I think if we continue to

4 want to handle those, it may have to be a

5 very different approach, meaning DOE may have

6 to modularize this somehow so there is a

7 platform, and then somebody else can take it

8 and plug in different numbers, whatever. But

9 then it will lose the meaning of the national

10 standard. 

11 MR. BROOKMAN: Lance first. 

12 MR. DELAURA: This is my soapbox

13 statement. I think that this is our chance

14 to get it right, as a group, and this is

15 going to be difficult no matter what we do. 

16 And I think to make the right choices, and to

17 look at all the embedded elements that are

18 going to be affected by this, not only now

19 but for the foreseeable future, is extremely

20 important. So if there is extra pain, now is

21 the time to do it. 

22 MR. BROOKMAN: Paul, Gary, this

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1 gentleman, and then Karim as briefly as

2 possible.

3 MR. DOPPEL: Okay, just to þ Paul

4 Doppel þ just to clarify what we are

5 referring to as variable refrigerant flow, or

6 VRF systems, the definition from the draft

7 standard at ARI 1230, an engineered direct

8 exchange multi-split system incorporating at

9 least one variable speed compressor, variable

10 capacity compressor, distributing refrigerant

11 through a piping network to multiple indoor

12 fan coil units each capable of individual

13 zone temperature control, to proprietary zone

14 temperature control devices and common

15 communications network. 

16 And those are þ there are two

17 further subcategories, VRF multi-split, and

18 VRF heat recovery and multi-split systems,

19 and these types of systems are newly

20 introduced to the U.S. market within the last

21 six years. 

22 MR. BROOKMAN: And your citation

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1 again is what?

2 MR. DOPPEL: This is the ARI draft

3 standard 1230.

4 MR. BROOKMAN: So I'm not sure I

5 got it there. So what are you saying about

6 the product classes and this list. 

7 MR. DOPPEL: This is what þ there

8 was some exception taken to my call for a

9 separate product class, and just to make sure

10 that everyone understands what we are calling

11 VRF, this defines what VRF is. 

12 MR. FERNSTROM: So Gary Fernstrom,

13 I'd like to go back to the application issue

14 briefly. We have--for automobiles--city and

15 highway mileage rating. I don't think it's

16 at all unreasonable to have for air

17 conditioning equipment two or three different

18 application relative ratings.

19 MR. BROOKMAN: Thank you. 

20 Your name, please?

21 MR. ARNOLD: Dan Arnold of Nordyne. 

22 I'm glad you brought up the automotive

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1 analogy, because that, as an engineer who

2 works and lives with this test procedure

3 everyday, people ask me, how do I describe

4 SEER in layman's terms, and I tell them it's

5 basically like city miles per gallon, cyclic

6 measurement of energy efficiency of the unit,

7 and EER, now that we have that published and

8 available, is the steady state; it's like

9 your highway miles per gallon, but Hung

10 Pham's point, I'm not quite agreeing with the

11 fact that the test procedure is broken. I

12 don't really understand the assault on the

13 test procedure. It does serve as a

14 comparison for consumers to compare one unit

15 to another unit. In my 25 years in the

16 industry we have done our own analysis

17 internally that shows the energy efficiency

18 that was represented by SEER is fairly

19 accurate as a general rule. 

20 We do publish extended performance

21 ratings. All manufacturers do it different,

22 different conditions, different wet bulb/dry

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1 bulb conditions, they are available on

2 websites. People do use them, so if you want

3 to compare an air conditioner other than the

4 standard 8067 indoor test procedure rating

5 point, that information is freely out there

6 for dealers and contractors to use. 

7 So I just am not agreeing that the

8 test procedure is broken. I think it served

9 us pretty well over the years. 

10 Karim and then Paul. Go ahead,

11 Paul.

12 MR. DOPPEL: As a result of the

13 October 22nd final rule, the multi-split

14 products now carry three different efficiency

15 ratings, SEER ratings, one for ducted

16 combinations, one for non-ducted

17 combinations, and one for a mixed

18 combination. 

19 So if we were to do this by

20 regional, then that would multiply that to

21 probably nine different þ possibly nine

22 different ratings for those products. 

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1 MR. BROOKMAN: Gary, go ahead. 

2 MR. FERNSTROM: Gary Fernstrom. 

3 I'd like to go back to the highway and city

4 analogy again. You know we in effect have

5 the supercongestion of high humidity in the

6 south, and we have the ultra hot temperature

7 in the California central valley, with low

8 humidity, which might be the super highway

9 with a high speed limit.

10 So I think it all has to do with

11 the temperature and humidity issues that we

12 are taking the measurements out. 

13 MR. BROOKMAN: Jim Crawford. 

14 MR. CRAWFORD: Jim Crawford. I

15 guess two points or two things floating

16 around here. 

17 One is, I think the department

18 needs to very promptly identify what measures

19 are legitimately under consideration,

20 consistent with the law so that we can see

21 how far these horizons are spreading. 

22 We are talking about a lot of

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1 things that are fine at the philosophical

2 level, but are they consistent with the law? 

3 MR. BROOKMAN: You say measures,

4 you mean the stuff that þ 

5 MR. CRAWFORD: The SEER, EER,

6 whatever, hot and dry, hot and wet, all these

7 various measures that we've talked about, do

8 they have anything to do with the law? And

9 if not, perhaps this is not the venue for

10 discussion. 

11 The second point, I will come back

12 to the VRF issue, a Japanese manufacturer not

13 present here today, Daikin, imported VRF

14 systems back about 25 years ago. They were

15 multi-splits, and they were modulated in

16 terms of refrigerant flow. It was nothing

17 new. 

18 MR. BROOKMAN: Dave. You'll pass?

19 Lance?

20 MR. DELAURA: I think just a quick

21 comment. The very essence that we are going

22 to have really three regions, if two

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1 additional regions are adopted, is the real

2 reason that all of these technical issues are

3 being discussed. 

4 If there was a one-size-fits-all

5 approach, you wouldn't have two additional

6 regions. It would be the same old same old. 

7 You've got two new regions which is going to

8 make three; it is going to be a complicated

9 process. And as I said before, I think it is

10 our opportunity to get it right. If we are

11 going to have the regions, the rigor needs to

12 be there to ensure that having those regions

13 is reasonable, and that it actually makes

14 sense, and that it makes sense for consumers.

15 MR. BROOKMAN: So what is your þ

16 what would you be advocating with respect to

17 these measures?

18 MR. DELAURA: I think it's the same

19 thing we said before. Depending on the

20 region that you have the standard for, there

21 are going to be intricacies. And at some

22 point we should talk about that as well. 

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1 What are those regions? What do they look

2 like? And that is going to drive a lot of

3 those processes. If the regions look very

4 similar, which they won't, then the test

5 procedures will be similar. The fact that

6 they will be different, there is going to be

7 different dictates in terms of what the

8 elements are.

9 MR. BROOKMAN: Kyle.

10 MR. GILLEY: Just a couple of

11 clarifications there. DOE has the authority

12 to make it up to two regions. The other is,

13 there has to be justification for doing so. 

14 That statement implied that it's just a

15 foregone conclusion, that there is

16 justification for regional standards, which

17 will be a debated point throughout this

18 entire discussion.

19 The other thing I would point out

20 as it relates to regional standards, is that

21 it was a political solution brought about by

22 Congress in reaching a compromise during the

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1 legislative discussion. 

2 So to assume that there is any

3 technical justification whatsoever for

4 regional standards is a stretch.

5 MR. BROOKMAN: Okay, I want to

6 return to final comments with respect to

7 these product classes, and then we are going

8 to move on. 

9 Yes. 

10 MR. ROBERTS: Tom Roberts, and this

11 is kind of a carry over question, but I had

12 to get this in. The regional discussion is

13 interesting. We hear a lot about California. 

14 So just for a real layman here, could you

15 just tell me what region California is in,

16 and is it hot and dry or is it average?

17 MR. DELAURA: It is undefined yet. 

18 MR. ROBERTS: But could it be?

19 MR. DELAURA: It could þ part of it

20 could be. 

21 MR. ROBERTS: Part of the state?

22 MR. DELAURA: Yes, the coastal

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1 portion maybe not. But yes. 

2 MR. ROBERTS: I think that is a

3 perfect answer. 

4 MR. BROOKMAN: Let's move on then. 

5 Michael, 24. 

6 MR. CHRISTOPHER: So we wanted to

7 call attention to a couple of these products,

8 one of which is the SDHV systems, and as I've

9 noted, the three manufacturers that have

10 filed for exception relief have received that

11 in the form of standards at 11 SEER and 6.8

12 HSPF.

13 This was effective January 23rd,

14 `06, and remains effective until DOE issues a

15 new standard if any. 

16 So in this rulemaking DOE is

17 considering keeping SDHV a separate class,

18 and conducting an analysis to determine what

19 the most appropriate standard level for the

20 system is. 

21 And to that end, DOE is looking

22 for feedback in particular on SDHV systems

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1 including the information that is listed here

2 in NM 34.

3 MR. BROOKMAN: Yes, Craig. 

4 MR. MESSMER: Craig Messmer with

5 Unico. It looks like I'm the only SDHV

6 manufacturer here today. 

7 Absolutely we want to continue the

8 separate product class. We do have a

9 separate product test standard, and it is

10 considerably different than the normal

11 products that you have, and we also think

12 that that is probably one of the criteria of

13 having a separate product class of any type

14 is to have a separate test standard. 

15 DOE did an analysis on SDHV in

16 2002. We have þ we thought that was an

17 excellent analysis. Unfortunately it didn't

18 get done in time to be included before the 13

19 SEER rule. We would love to see some kind of

20 legislative action that would allow the

21 separate product class to actually have an

22 official minimum standard instead of the

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1 exception process. 

2 That's not anything that DOE can

3 do, we understand that. But we strongly

4 encourage them to do some kind of analysis or

5 whatever is appropriate for this product

6 class, if the standards do change. We

7 certainly would work with the department in

8 establishing what an appropriate standard

9 would be for this class. So we'll submit

10 information on that. 

11 MR. BROOKMAN: Thank you. 

12 Yes, Harvey. 

13 MR. SACHS: ACEEE supported the

14 waiver for these terms under the proviso that

15 a firewall was erected. That firewall was a

16 change in the rating method to 1.25 inches

17 ESP.

18 This effectively limits the

19 possibilities of this class being sold into

20 conventional markets, as a way of þ that and

21 the economics as a way of subverting 13 SEER

22 in the mainstream market. 

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1 We think that is an example of the

2 use of rating methods, and if that is more

3 easily done with the appropriate firewalls as

4 a separate class, we are okay with that. 

5 MR. BROOKMAN: Okay. Other

6 comments with respect to SDHV systems, and

7 particularly you see what the department is

8 asking for þ market shares, shipments, cost

9 and performance data, design specifications. 

10 Craig?

11 MR. MESSMER: Since we are the only

12 ones in this room, I would hope that we could

13 get more data than just our company on that. 

14 So I would encourage the DOE to contact the

15 other manufacturers the same, since they are

16 not here today. 

17 MR. BROOKMAN: Okay, Karim, is that

18 data you would gather, or you have gathered?

19 MR. AMRANE: We have really two

20 manufacturers within the þ

21 MR. MESSMER: Three. There are

22 three. 

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1 MR. AMRANE: There are three. So

2 far we can gather the information. 

3 MR. MESSMER: That would be great. 

4 And the department would greatly appreciate

5 that. Thank you. 

6 MR. CHRISTOPHER: To your knowledge

7 are there any other manufacturers of SDHV?

8 MR. AMRANE: I believe that's about

9 it. 

10 MR. CHRISTOPHER: Okay. So as I

11 mentioned, we would come back to through the

12 wall þ 

13 MR. LEWIS: Before you proceed. 

14 MR. BROOKMAN: Ron Lewis. 

15 MR. LEWIS: Just looking at the

16 time and the number of pages and where we

17 are, we are way way way behind schedule, and

18 if there are ways to be more succinct, it is

19 important that we get your input, and if we

20 want to put in a placeholder and say you've

21 got a concern and express an interest, and

22 promise to submit comments, if there is a way

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1 that we can get through it. Nobody wants to

2 be here until midnight tonight, and we want

3 to cover all the topics. 

4 So it's just a request that as we

5 move forward, if we would be conscious that

6 we have lost a lot of ground here. It's good

7 time spent, and a lot of good input, but just

8 be conscious of that as we move forward. 

9 MR. CHRISTOPHER: A lot of the

10 comments, a lot of the issues raised in this

11 section are really looking for written

12 feedback and data. So it's not necessary to

13 make a comment unless there is a serious

14 concern, you can put that forward. 

15 MR. BROOKMAN: That's good. That's

16 helpful. 

17 MR. CHRISTOPHER: Okay. So I

18 mentioned we come back to these through-the19 wall products. These include two main types,

20 the split systems which are condensers that

21 use conventional air handler, and package

22 systems which are similar to package terminal

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1 air conditioners and heat pumps; however the

2 air is ducted to the interior space as

3 opposed to being a ductless system. 

4 There are currently standards that

5 are the result of an engineering analysis

6 that was conducted several years ago, I don't

7 know the exact year. Split systems currently

8 at 10.9 SEER, 7.1 HSPF, and package are at

9 10.6 SEER, 7.0 HSPF. 

10 And as I mentioned before, this

11 class in the definition there is a provision

12 often referred to as the sunset provision,

13 where this class is no longer in existence as

14 of January 23rd, 2010. And in review of the

15 previous rulemakings and the discussion that

16 went on leading up to the final rules of the

17 13 SEER, it's our understanding that these

18 through-the-wall products were originally

19 part of the so-called space-constrained

20 products, and therefore the intent is that

21 they become part of the overall space

22 constraining class, when that sunset

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1 provision is reached. 

2 And therefore DOE will assume þ

3 and because that provision expires in 2010,

4 standards would be effective 2016, that's

5 when the analysis assumes the þ it's in our

6 analysis, that's when we assume all the

7 factors. DOE will assume a 12 SEER baseline,

8 7.7 HSPF, or 7.4 HSPF for the through-the9 wall systems. 

10 So we are looking for feedback on

11 that, and any available data that are for

12 through-the-wall products, or any other

13 space-constrained products. And it's item

14 3.5 here. 

15 MR. BROOKMAN: Yes, Jim. 

16 MR. CRAWFORD: Jim Crawford, Trane. 

17 And I would cite page 26 of the framework

18 document, which makes the point that these

19 products are being used in new construction,

20 and I find it strangely inconsistent that we

21 have various product classes that don't meet

22 the performance of the mainstream products

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1 and we are preparing apparently to continue

2 to let that situation exist far into the

3 future.

4 I don't understand why we can

5 allow 10s and 12s in a market that requires a

6 minimum of 13, and talk about þ and we are

7 going to continue that practice in the

8 future. 

9 MR. BROOKMAN: Thank you. 

10 Please, Tom.

11 MR. ROBERTS: Was there þ I was

12 trying þ I'm stumped by that too. Is there

13 any meat on that bone? Is there some logic

14 to it? I guess it was replacement logic

15 possibly at the beginning. 

16 I agree with Tom, that it goes

17 into new construction an awful lot. It's the

18 chosen system because it does dive under the

19 rate. 

20 MR. BROOKMAN: Okay, thanks for

21 that comment. 

22 Kyle.

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1 MR. GILLEY: As a manufacturer of

2 this equipment that has a very special

3 application, we will file formal comments on

4 it. 

5 MR. BROOKMAN: Okay. 

6 Other comments on through-the-wall

7 air conditioners and heat pumps. 

8 Yes, your name again, please. 

9 MR. MUCCIOLA: Vince Mucciola,

10 National Comfort Products. I understand the

11 concern about the new construction, but we

12 are really turning our backs to existing

13 openings that would be catastrophic for

14 people to do replacements, high rises and

15 what have you, and we are turning our backs

16 to the public who would have to incur those

17 costs to try to change openings on the 20th

18 floor, or look for other ways to provide air

19 conditioning. 

20 It only leads back to the question

21 that we had about repairing old systems, that

22 these old systems that are out there are 4,

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1 5, 6 SEER units by today's standards, and at

2 least it gives them efficiencies that are

3 better than what they had before. 

4 MR. BROOKMAN: Thank you. 

5 MR. CRAWFORD: But that is no

6 reason to permit its use in new construction

7 in the future. 

8 MR. MUCCIOLA: We didn't say

9 anything about new construction. We said we

10 could have a new construction unit, but we

11 should still continue to look at, what do we

12 do about existing openings out there. 

13 MR. CRAWFORD: I refer you to the

14 framework document. 

15 MR. BROOKMAN: So those last few

16 comments from Jim Crawford. 

17 Okay, final comments on this

18 subject?

19 All right. Yes, one more, and

20 your name please for the record. 

21 MR. STANGA: My name is Mark

22 Stanga, and actually I am here for Daikin

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1 Industries. I am here just to þ I'm afraid

2 that maybe we've moved a couple of slides

3 past where the last reference to Daikin came

4 up, and I wanted to set the record straight

5 about that. 

6 Daikin in fact did have a

7 distributor selling multi-split modular

8 refrigerant flow systems of some type some

9 years ago, but Daikin has not had any

10 equipment for sale in the U.S. that is

11 inverter driven of the kind that as Paul

12 Doppel from Mitsubishi mentioned is within

13 the scope of the new AHRI draft standard

14 1230. 

15 I just wanted to make that clear. 

16 MR. BROOKMAN: Thanks for that

17 clarification. 

18 Okay. 

19 MR. CHRISTOPHER: Thank you Doug.

20 Okay, the last type of product that we want

21 to call attention to are the ductless split

22 systems. We have had some comments and

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1 discussion on already. These include both

2 mini-splits, the one-to-one, and the multi3 splits. 

4 And it's our understanding they

5 still represent just a small bit of the

6 market, the domestic market. 

7 And in the final rule for the test

8 procedures that was in August of last year,

9 DOE did state that it believes the ductless

10 splits compete primarily with the

11 conventional split systems. Therefore in

12 this rulemaking DOE is considering keeping

13 those as part of the conventional product

14 split system product class. I think we have

15 heard some comments already contrary to that,

16 and we appreciate those. 

17 Again, item 3.6 is asking for any

18 information data that relates to ductless

19 splits.

20 MR. BROOKMAN: Yes, Paul.

21 MR. DOPPEL: Question for DOE. 

22 What þ you mentioned there that it is a small

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1 fraction of the domestic market. At what

2 point of market share would we become more

3 significant? What is the threshold, 1

4 percent, 2 percent?

5 MR. BROOKMAN: Lewis.

6 MR. LEWIS: Not only are we not

7 prepared to answer that question right now,

8 but I'm not sure that it's the kind of

9 question that adds to clarification right

10 now. 

11 I think what we want to do is we

12 are putting up a straw man of what our

13 understanding is right now. And if somebody

14 has other data that counters it or says you

15 are wrong, to show us different. 

16 I don't know that there is a

17 definition or an exact percentage or

18 something, but evidently the data we have

19 does not show it to be significant in large

20 portions. So if you would have data that

21 would help us to better understand that, the

22 plea will go out several times today, please

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1 to help us to see more clearly on issues. 

2 So it's a matter of, we are

3 dealing with the data we've got right now,

4 and anybody that has other information that

5 could help us to see more clearly it would be

6 beneficial.

7 MR. DOPPEL: Okay, Paul Doppel

8 again. We will try to provide what we can

9 within ARI guidelines, and just for further

10 clarification, we would concede that multi11 splits would compete with central air

12 conditioning systems, but not the mini13 splits. Mini-splits should be a separate

14 product class, because there again they are

15 used for room air conditioning, and not

16 central air conditioning. 

17 MR. BROOKMAN: Additional comments? 

18 Let's move on to technology assessment. 

19 MR. CHRISTOPHER: Okay, so the

20 other part of the market, technology

21 assessment, is the technology assessment. 

22 This is where DOE identifies different

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1 technologies that can be used to improve the

2 efficiency of air conditioners and heat

3 pumps. We have received several comments

4 today so far on this. 

5 I am not going to list all of

6 these. But just for example, as you know,

7 increased evaporator-condenser coil area;

8 higher efficiency compressors; and

9 evaporator-condenser fan motors for example. 

10 And general requests for comment,

11 what technologies or design options if any

12 should DOE add to or remove from this list? 

13 And please provide any rationale.

14 MR. BROOKMAN: Tom Roberts. 

15 MR. ROBERTS: Tom Roberts What is

16 the nature of the request? I don't

17 understand it. I mean the standard is really

18 a prescriptive standard, and I don't

19 understand the specific reference or the need

20 to include the specific technologies. 

21 MR. CHRISTOPHER: Well, the

22 standard is actually not a prescriptive

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1 standard. 

2 MR. ROBERTS: No, I'm sorry, I said

3 it the opposite way. In other words, why the

4 specific use of technologies? I don't

5 understand it. 

6 MR. CHRISTOPHER: Well, we'll get

7 to an engineering analysis, that we are

8 primarily taking an efficiency level

9 approach. But we still conduct a screening

10 analysis and a technology assessment just as

11 we do with every rule, and that information

12 will supplement that efficiency level

13 approach as we are looking at how

14 manufacturers þ what it means to go from a 13

15 SEER to a 14 SEER, and does that involve a

16 particular technology, or are there many

17 different ways to go about it. 

18 MR. BROOKMAN: So you can see the

19 list, and what do you think? Should there be

20 technology approaches that should be added? 

21 Or should some of these items be removed from

22 the list? 

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1 Bill. 

2 MR. McCULLOUGH: I would say one of

3 the things that needs to be considered in

4 this, and someone mentioned earlier a view,

5 is this currently on the market, close to the

6 market, or is it a research mode? And I am

7 jumping ahead a bit here to slide #30,

8 because the cost difference of that would be

9 strikingly different if it is available now

10 on the market versus something that may

11 become available on the market. Things like

12 fuel cells. Can you do it? Sure, but is it

13 þ does it provide a good cost benefit for the

14 consumer? Probably not. 

15 So it was both a comment and a

16 question: is there going to be consideration

17 given to what stage that we believe this

18 technology is in? And then will that be

19 considered.

20 MR. BROOKMAN: Ron Lewis. 

21 MR. LEWIS: One of the analyses

22 that we do is engineering analysis, and there

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1 is a screening analysis that is done that

2 looks at the feasibility and availability and

3 other things. There is a tight focus given

4 to the practicality and what is available. 

5 It is þ we are required, one of the first

6 slides that we showed were the seven factors

7 that Congress requires us to consider. 

8 And they require us to start at

9 max tech and work our way down and go through

10 the feasibility of things. They have to be

11 economically justified, I always get the two

12 of them confused, and technologically

13 feasible. 

14 And in going through that, we go

15 out of our way to try to know as much as we

16 can about the universe of the products that

17 are available; what is their state; and then

18 go through the consideration. That then

19 further gets into the lifecycle costs and all

20 that. 

21 So there is a lot of detail gone

22 into looking at þ we don't just go on the

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1 promise of something to come, and its

2 potential. We need to get some substance to

3 try to back up what we are considering. 

4 So it's not to rule it out. We

5 are required to start at max tech, the way

6 max tech has been looked at before is, it's

7 something that is not R&D. It's something

8 that is close to commercialization, or in the

9 stream right now, something that has been

10 validated, and is here and real. It's not

11 conceptual. 

12 So the process is pretty robust in

13 all those considerations. 

14 MR. BROOKMAN: Ted. 

15 MR. POPE: Ted Pope. Particularly

16 assuming that there is ongoing discussions of

17 regional standards, PG&E and I'm sure the

18 other utilities, and energy commission and so

19 forth, in the West, would strongly recommend

20 consideration of evaporatively precooled air

21 conditioning systems.

22 MR. BROOKMAN: Thank you. 

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1 Other candidates for adds or

2 subtracts from this list? 

3 Jim Crawford.

4 MR. CRAWFORD: What is a dual port

5 expansion valve?

6 MR. CHRISTOPHER: I don't have a

7 technical definition for you.

8 MR. CRAWFORD: Well, unless you can

9 define it, I suggest you take it off the

10 list. 

11 MR. BROOKMAN: Harvey. 

12 MR. SACHS: Harvey Sachs. I would

13 just ask Mr. Lewis for the definition of

14 "here." In terms of these technology

15 options. Does "here" mean available in U.S.

16 products, or available in substantial scale

17 of the global market, and particularly it

18 might refer to things like modulated

19 compressors that are here niche products, and

20 very high in premium products, and may be

21 more common as a fraction of the market in

22 some other countries. So they are listed.

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1 They are listed, but Mr. Lewis

2 brought up the term "here". 

3 MR. LEWIS: I take your challenge

4 to add greater precision to that. I am not

5 going to do it right here. There's the word,

6 here, again. I will take into consideration

7 your sensitivity to that, of what is the

8 geography or the universe it's in. So thank

9 you for that question. 

10 MR. BROOKMAN: Fred. 

11 MR. KELLER: Fred Keller. I would

12 just suggest that DOE adopt the NASA

13 technology readiness levels, and have a level

14 of TRL-7 or greater as a technology being

15 included. It's a fairly well documented

16 method of rating technologies for their

17 readiness to go to market. 

18 MR. BROOKMAN: Thank you. 

19 MR. LEWIS: Excuse me, is there a

20 place where that is on their website?

21 MR. KELLER: I think you can just

22 Google massive technology readiness levels,

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1 and you will get a wealth of information. 

2 MR. BROOKMAN: Thank you. 

3 So other comments, final comments

4 perhaps, on this list, what should stay in,

5 what should be supplemented, what should be

6 removed?

7 MR. CHRISTOPHER: This goes to what

8 Ron was talking about, the screening

9 analysis. So in technology's estimate, we

10 sort of take an all-encompassing view of

11 everything that is out there. And there are

12 these four factors, that really come from the

13 seven factors in APCA that requires you to

14 look at the technological feasibility,

15 practicability of manufacturing still in

16 service, any impacts on product utility, or

17 availability to consumers, and impacts on

18 health or safety. 

19 And so from this all-encompassing

20 list of technologies, if one of these factors

21 is not met, then DOE does not look at it any

22 further. 

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1 So typically what that means is

2 that technologies that are not commercially

3 available or not close to commercialization

4 are not typically included. 

5 So following the screening

6 analysis with this filtered down list of

7 technologies, DOE conducts the engineering

8 analysis. And the purpose of the engineering

9 analysis is to construct what we call a cost

10 efficiency or a manufacturer's selling price

11 efficiency curve, which is really just the

12 relationship of price or cost to the SEER or

13 HSPF level, and this relationship is used in

14 the analyses that are conducted downstream,

15 including LCC and payback period,

16 manufacturer impact analysis, employment

17 impact analysis. 

18 It's a methodology that DOE will

19 follow in conducting these curves, these

20 cost-efficiency curves, will be to first

21 establish a baseline, and in this rulemaking

22 that's fairly simple. DOE will use the

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1 current standards in each product class. 

2 From establishing a baseline, do

3 you estimate the cost of these baseline

4 units, and that will be done through a

5 reverse engineering approach, also called the

6 tear-down approach, through which you

7 estimate the costs of products in each class

8 at a representative capacity. 

9 Once the cost of baseline units is

10 established, you will look at the cost of

11 units above that baseline up to and including

12 the max tech, which runs both to what we said

13 earlier, and then DOE will document the

14 results including supplementing with any data

15 or information from any manufacturer

16 catalogs, websites, trade publications, and

17 other sources. 

18 So there are three items here for

19 comment. In general DOE is looking for

20 feedback on the use of an efficiency level

21 approach, and this approach is used in the

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1 efficiency relationship. 

2 Item 5.3 is looking for feedback

3 on what appropriate representative capacity

4 to use for each product class. And for the

5 conventional split and single package product

6 classes, DOE will typically use a three-time

7 unit. 

8 But DOE is also looking for

9 information on how it could consider the

10 limitations of products that are not at the

11 representative capacity. Those are at much

12 smaller and much larger capacities, and how

13 it can take that into account as well. 

14 MR. BROOKMAN: Several specific

15 questions. 

16 Yes, Lance.

17 MR. DELAURA: This sort of goes to

18 the point about the time-of-use rates, when

19 you talk about payback and lifecycle, why it

20 would be important if you were considering

21 the regional standard, let's say in

22 California, where there are those types of

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1 economics, it will make the economics of

2 payback look very different for high

3 efficiency units. 

4 MR. BROOKMAN: Thank you. 

5 Andrew. 

6 MR. DELASKI: Can you back up a

7 slide, please?

8 MR. CHRISTOPHER: Sure. 

9 MR. DELASKI: So on your third

10 chevron there, estimate costs of units above

11 baseline, could you just elaborate a bit on

12 how you make those estimates?

13 MR. CHRISTOPHER: Sure, well some

14 of that comes from physical tear downs. Some

15 of that comes from just knowledge of our

16 experts in determining what it costs to

17 increase the surface area of a coil for

18 example. And then some of that comes from

19 data on specific design options like motors,

20 and things like that. 

21 MR. DELASKI: My memory is getting

22 a little bit fuzzy here, but I think in the

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1 last rulemaking we ended up with three sets

2 of costs, costs that were submitted by the

3 manufacturers, that were then published along

4 with costs that were developed by DOE, which

5 led to a lot of confusion. I hope we can

6 avoid that in this particular rulemaking, but

7 I wonder how does manufacturing input to your

8 process in how you come up with these costs?

9 MR. CHRISTOPHER: The intent here

10 is to do the cost estimation through DOE and

11 its contractors. 

12 MR. BROOKMAN: Karim.

13 MR. AMRANE: Karim Amrane, AHRI. 

14 As I stated this morning, I think there is

15 evidence that whatever those cost efficiency

16 curves þ and it's not just the curve, it's

17 the markup and everything else that comes up

18 with that, ended up underestimating literally

19 the cost of a 13 SEER unit today. As Andrew

20 was saying, we provided data last time that

21 was at the end of the process not taken into

22 consideration.

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1 But we believe that our data was

2 much closer to reality than what DOE came up

3 with. 

4 So I guess while not opposing DOE

5 doing what DOE wants to do, in terms of using

6 its own reverse engineering analysis. But we

7 believe you need to step back and look at

8 what you've done, and assess where things

9 need to be improved. 

10 MR. BROOKMAN: Thank you. 

11 MR. DELASKI: I support the notion

12 of some sort of retrospective analysis to see

13 how good a job did you do last time in coming

14 up with cost estimates?

15 The challenge, and I think Jim

16 Crawford did an excellent job early on of

17 saying þ talking þ stepping us through what

18 had happened to commodity prices over the

19 past five years or so. The challenge is

20 going to be to disentangle the impact of the

21 standards from things that are happening on

22 the market independently of the standard. 

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1 But knowing þ having some

2 retrospective analysis would be very, very

3 valuable. 

4 MR. BROOKMAN: Fred. 

5 MR. KELLER: I agree with the need

6 for retrospective analysis, and I think it

7 should include more than just the cost

8 estimate. It should also look at the

9 technology assumptions that were made in the

10 prior rulemaking. It said higher efficiency

11 compressors were going to be available; et

12 cetera, et cetera. I think you ought to look

13 at all of those and see how many of those

14 actually became reality. 

15 MR. BROOKMAN: Thank you. 

16 Yes, Talbot.

17 MR. GEE: Yes, Talbot Gee with

18 Hardy. From the distributor's standpoint, I

19 don't know if this was considered in previous

20 cost evaluations too, but the total system

21 cost, not just the condensing unit, but

22 everything else that is required to achieve

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1 that rating, that performance, which has been

2 a telling point to our members who have tried

3 to fulfill this upgrade.

4 MR. BROOKMAN: Tom.

5 MR. ROBERTS: And just real

6 quickly, the last go round seemed like it was

7 a theoretical addition of components. When

8 you can jump to the end and say, really it's

9 all about what the consumer cost difference

10 is. 

11 And that's the thing where we lost

12 þ left out lots of components. The

13 additional freight cost due to larger units,

14 et cetera, et cetera, et cetera. 

15 And I don't know how you could do

16 that other than to get better interaction

17 from manufacturers' distribution and

18 contractors to give you a landed cost to the

19 consumer to use real numbers. Then when we

20 do the next retrospective, I think you would

21 be much closer. 

22 MR. BROOKMAN: Thank you. 

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1 Bill. 

2 MR. McCULLOUGH: Bill McCullough. 

3 I would also ask that one of the things that

4 I'm not sure was considered with the April

5 23rd, 2006 NACA, to consider the cost of the

6 units, as the SEER goes higher, the units get

7 bigger, manufacturers can ship less product

8 on trucks. That therefore drives the cost

9 up, and that is a very real cost. 

10 MR. BROOKMAN: Thank you.

11 Additional comments: efficiency

12 level approach, representative cooling

13 capacity, and very small and very large

14 capacities, all three. 

15 Jim Crawford. 

16 MR. CRAWFORD: Jim Crawford, item

17 5.3, I think that for some of your products,

18 one capacity may not be adequate to get the

19 variabilities that they have to deal with. 

20 In particular as you get into the larger

21 residential product there are physical

22 constraints that you deal with that cause

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1 that to be not well represented. 

2 And one example today would be in

3 inverters. A compressor inverter, to drive a

4 five-ton unit, you are in a totally different

5 price curve or cost curve than you would be

6 for say a two or three-ton unit.

7 MR. BROOKMAN: Thank you. 

8 Yes, Andrew. 

9 MR. DELASKI: I wanted to just

10 briefly come back to this issue of a

11 retrospective. I mean the reason to do a

12 retrospective isn't so much to beat up on

13 somebody one way or the other on how well did

14 we estimate the last time. It's obviously to

15 inform doing a better þ can we get closer

16 this time in doing the DOE estimates. 

17 I think it's a mistake though to

18 go back and say, well, did manufacturers

19 build it the way that we thought would be

20 most cost effective? Because the answer is

21 going to be no. No. You had a performance

22 standard, and the manufacturers go about

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1 their business of meeting that performance

2 standard, the best that they can, as cost3 effectively as they can. 

4 Once they put their engineering

5 expertise to it, it far outdistances the

6 engineering expertise the department could

7 apply to it. 

8 So I think you are going to find

9 that, no, it wasn't complied with the way DOE

10 thought they might comply with it, at least

11 cost basis. It would have been complied

12 quite differently, maybe differently by

13 different manufacturers, though. 

14 I would look at the overall cost

15 impact you estimated, and how close was that,

16 as opposed to, did we get each step of the

17 process right. 

18 MR. BROOKMAN: Yes please, Ron

19 Lewis.

20 MR. LEWIS: I was going to try to

21 sum up this great exchange of inputs here. 

22 But it's one thing to say you got it wrong,

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1 but to have any sense of pointing to the

2 areas where it was wrong, and what was wrong

3 to your observation--that sense of precision

4 can save us time, and I'm going to stress

5 throughout the day, we are under court order. 

6 We've got a delivery date certain that

7 anything that you can give us that gives us

8 clarity versus just a general request to go

9 back and revisit something which just can

10 gobble up a lot of time, and we may not come

11 to the same conclusion you do after that. 

12 So if you want to make your point,

13 you want us to see through your perspective,

14 I just recommend highly that in a timely

15 basis you give us the most specific input you

16 can, so we take another look at it through

17 that perspective, and understand what your

18 concerns are. 

19 Just in general to go back and

20 redo it may not serve either of us very well.

21 MR. BROOKMAN: Jim Crawford. 

22 MR. CRAWFORD: To elaborate just a

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1 little bit on the point that Andrew was

2 making, there are design technologies that

3 are brought up repeatedly by the department,

4 and for which they paid for studies on and

5 off about the last 35 years having to do with

6 air movement. 

7 And the conclusions that they come

8 up with are always wrong. They want us to

9 use backward inclined fans, and they want us

10 to use air coil blades on prop fans, and

11 we've been aware of those technologies. 

12 We in our industry are well aware

13 of various fan technologies. Some of us

14 manufacture big backward inclined fans with

15 airfoil blades. We know about those things,

16 and they simply don't work in cost-effective

17 residential product. 

18 MR. BROOKMAN: So let's then

19 provide a final opportunity for comment on

20 the questions you see on slide #32 related to

21 the efficiency level approach first, and

22 representative cooling capacity, we have

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1 heard a comment or two on that one. And I

2 don't think we've heard much yet on very

3 small versus very large capacities, and very

4 large capacities, and the limitations on

5 those. 

6 Paul.

7 MR. DOPPEL: Paul Doppel on the

8 representative cooling capacity. What may be

9 typical for a central air conditioning system

10 would be somewhere in the range of around

11 30,000. However, for ductless mini-splits

12 it's 12,000, so again, that's a need for a

13 possible separate class, a prior class for

14 those. Because again the typical size is so

15 much smaller, and the application is

16 different. 

17 MR. BROOKMAN: Hung. 

18 MR. PHAM: Hung Pham, Emerson

19 Climate. I think in the last round I believe

20 DOE probably didn't treat the indoor section

21 more explicitly. 

22 I think as we went through the

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1 higher SEER that turned out to be a much

2 bigger impact, particularly to the point that

3 Jim brought up there about two-ton, three4 ton, five-ton indoor size is really a factor

5 I think, may need to be looked at very

6 carefully. 

7 MR. BROOKMAN: Yes, thank you.

8 Craig. 

9 MR. MESSMER: Craig Messmer. We

10 absolutely have to consider the smallest and

11 the largest. If you look into the directory

12 today, you will find almost no one-ton split13 system units, heat bumps. If you look at the

14 higher efficiency units, they have again

15 missing capacity tonnages. So this has to þ

16 you can't just pick the middle size which is

17 representative. That's the easiest perhaps. 

18 But we are going to be faced with

19 the phasing out of certain capacity units if

20 we continue to increase efficiencies without

21 regard to capacity.

22 MR. BROOKMAN: Okay. Thank you. 

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1 So final comments on this set of

2 slides? I think we have pretty much covered

3 it. 

4 Then I am going to suggest we take

5 lunch. Before we go to lunch, though, we

6 have an announcement. 

7 Ron Lewis. 

8 MR. LEWIS: I realize that a lot of

9 times that the meeting carries on for longer

10 than some people had planned, and they are

11 trying to make airplanes, et cetera. So

12 rather than wait until the end of the day, we

13 did discuss the options on getting comments

14 in, and we will in a Federal Register notice,

15 announce that we will extend the date from

16 the current date for comments of July 9th to

17 the end of the month, July 31st, giving 3-1/2

18 more weeks. So we appreciate that input. We

19 don't want to put you in an uncomfortable

20 position. 

21 We are just asking that if you

22 would, please, our history has been that most

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1 people take all the time available, and we

2 get all the comments in like the last 24

3 hours. 

4 If you do have the comments early,

5 if you have them done, we are extending the

6 time, but we would appreciate your getting

7 them to us as soon as you can so we can

8 thoroughly put the attention to your

9 comments, before we are just flooded with

10 everybody's. 

11 Thank you. 

12 MR. BROOKMAN: We are a little bit

13 behind schedule, but we will make it up when

14 we return from lunch. It's pretty hard to do

15 lunch in less than an hour here. So it's now

16 12:30. I'm going to suggest that we return

17 at 1:30 and resume promptly at that point. 

18 This room will be locked, so you

19 can leave stuff in it. Please wear your

20 badge here in the building. 

21 How many of you, is this your

22 first trip here to Forrestal? A few of you. 

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1 There is a cafeteria, a sandwich kind of a

2 place, and some hot food, just one floor

3 below where you got your coffee. Most

4 everybody will be trooping en masse

5 underneath, down one floor and all the way

6 over to the cafeteria on the far side. So

7 follow the crowd, and we will resume at 1:30.

8 (Whereupon at 12:32 p.m. the

9 proceeding in the above-entitled

10 matter went off the record to

11 return on the record at 1:32 p.m.)

12 MR. BROOKMAN: Thanks for being

13 back here on time. We're a little bit

14 behind, but none of us are going to be here

15 at seven o'clock this evening. So we'll see

16 if we can stay as focused on the content and

17 the comment as possible.

18 As I understand it, Brenda, at the

19 break you're going to hand out a list of

20 participants today so that we'll have that

21 available to people as well.

22 So, Mike, are you ready to go? 

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1 Not quite? Close?

2 I appreciate this morning. There

3 was a lot of good exchange, and that's very

4 helpful to the department. So let's keep

5 that up and also stay focused at the same

6 time.

7 MR. CHRISTOPHER: Okay. I'm

8 ready.

9 MR. BROOKMAN: Okay.

10 MR. CHRISTOPHER: All right. So

11 DOE will look at baseline all the way up to

12 mass tech and a number of levels in between. 

13 These are some of those, not all inclusive,

14 but some of the ones that DOE will look at

15 are the Energy Star and the Consortium for

16 Energy Efficiency Levels. These are listed

17 here.

18 For example, for split system air

19 conditioners, Energy Star which corresponds

20 to CE-01s, 14 SEER, CEE Tier 2, 15 SEER, et

21 cetera.

22 The maximum available that DOE has

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1 identified in the three ton size is 21 SEER

2 for split and 16.6 SEER, I should say, for

3 packaged. 

4 For heat pumps, the maximum

5 available DOE has identified is 19 and a half

6 SEER and 10.8 HSPF and 16.4 SEER and 9.0 HSPF

7 for packaged.

8 MR. DOPPEL: If I may --

9 MR. BROOKMAN: Paul.

10 MR. DOPPEL: Paul Doppel.

11 There are ductless products that

12 are at the 23 SEER level for the heat pump.

13 MR. CHRISTOPHER: Okay. Thank

14 you.

15 MR. BROOKMAN: Thank you.

16 MR. CHRISTOPHER: So as I

17 mentioned, DOE is going to look at the levels

18 that we listed, but there may be other levels

19 analyzed, and DOE is required to look at the

20 maximum technology level. However, that does

21 not necessarily correspond to the maximum

22 available, those four that I just listed.

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1 So there's two items for feedback

2 here. DOE is looking for input on the

3 efficiency level of the plants to use, and is

4 also seeking input on what appropriate mass

5 tech levels are for each product class.

6 And then DOE is also looking for

7 what are appropriate levels for SDHV systems

8 and space constrained products.

9 MR. BROOKMAN: Okay. Yes, please. 

10 Hung first and then Karim.

11 MR. PHAM: Hung Pham, Emerson

12 Climate.

13 One concern I have about the mass

14 tech is that it is a variable speed

15 technology. That is a new technology that

16 I'm not sure that we have all looked at the

17 impact of how the power is measured with

18 inversion and all of that. If we're going to

19 go to talk about millions units and like

20 that, I think there is probably some need for

21 defining the measurement a little bit better.

22 I'm not talking about the test

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1 procedure. I'm talking about the power

2 measurement.

3 MR. BROOKMAN: Let's let Don

4 follow on, Karim.

5 Are you following his stream of

6 comment?

7 MR. BRUNDAGE: I have a separate

8 comment.

9 MR. BROOKMAN: Okay. Karim then. 

10 Thanks, Don.

11 MR. AMRANE: Karim Amrane, HRI.

12 I guess the level that you're

13 looking at, for example, you're picking the C

14 level. I mean, why is it that you're picking

15 the C level? Is it because they're out

16 there?

17 MR. CHRISTOPHER: They're there. 

18 They're out there, yes.

19 MR. AMRANE: I know they are out

20 there, but is there any particular reason?

21 Because we are assuming here, yes,

22 you are assuming that, for example, on heat

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1 pumps that whatever the 15 SEER, 8.5 HSPF is

2 something that makes sense, and it might not

3 make sense.

4 MR. CHRISTOPHER: It may not be

5 cost effective. It may not work.

6 MR. AMRANE: It might not be cost

7 effective. It might not even make sense. I

8 mean, the fact that CE came up with those

9 levels doesn't mean that they are really

10 something that you need to look at.

11 I think specifically heat pumps,

12 you look at the relationship between CR and

13 HSPF like you did, for example, in the

14 previous rulemaking --

15 MR. CHRISTOPHER: That is

16 something that --

17 MR. AMRANE: -- to be sure that

18 there is correspondence between the SEER and

19 the HSPF.

20 MR. CHRISTOPHER: Okay, and that's

21 something that we intend to do, and we

22 started to look at it.

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1 MR. BROOKMAN: Mike, so these are

2 products that you know are generally

3 available and they're listed and they're in

4 catalogues and they're being sold?

5 MR. CHRISTOPHER: Yeah, and AHRI

6 has a database of products that we've looked

7 at that we can use to look at the

8 relationship such as SEER and HSPF.

9 MR. BROOKMAN: Okay, okay. Don.

10 MR. BRUNDAGE: Just to clarify,

11 you say you're going to look at 14, 15, 16

12 and 21 for split systems. You're also

13 looking at the base level of 13, aren't you?

14 MR. CHRISTOPHER: Correct.

15 MR. BRUNDAGE: Okay. Because the

16 way this is written implies that 13 isn't

17 even on the table on this rulemaking. So

18 that may be something that needs -- to just

19 take a base level in this chart may make it

20 clarify things.

21 MR. BROOKMAN: Thank you. Thank

22 you.

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1 Lance.

2 MR. DELAURA: Just a quick comment

3 on CE as a CE number. These may not be the

4 right levels, but CE does look at the

5 national perspective when they're setting

6 program standards, and they do look at the

7 availability of equipment, and they certainly

8 don't just look at a particular state. They

9 look at what's out there, what customers

10 demand, and what they can provide rebates on.

11 So generally the CE levels are

12 pretty good in terms of a proxy of what sells

13 in the marketplace.

14 MR. BROOKMAN: Thank you.

15 Yes, Jim.

16 MR. CRAWFORD: Jim Crawford,

17 Trane.

18 I'm not sure exactly what point

19 Hung Pham was making, but I think I know, and

20 it's a point that maybe deserves a little bit

21 of elaboration. Some of the technologies

22 that we are going to consider do not draw

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1 sinusoidal currents from sinusoidal way

2 forms, and as a consequence they generate

3 lots of harmonics, and those harmonics can be

4 managed to a degree, but those harmonics are

5 of concern to the utilities, legitimate

6 concern to the utilities.

7 And if you get into a situation

8 where you were to have a very large installed

9 population of those, then those air

10 conditioners would begin to look like a bunch

11 of battery chargers, and the battery charger

12 is a very unpleasant load to the electric

13 utility.

14 Maybe that should be monetized in

15 some way also.

16 MR. BROOKMAN: That's interesting.

17 MR. PHAM: Thank you, Jim.

18 MR. BROOKMAN: Yes, please.

19 MR. ARNOLD: Dan Arnold. 

20 I just want to make sure that

21 what's included in the analysis is the fact

22 that I think we can all agree in this room

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1 that it would be preferable to sell a heat

2 pump to a straight air conditioner with

3 electric resistance back-up heat. So the

4 consumer does have a choice when they go to

5 either install a heat pump or replace a heat

6 pump, and that is an air conditioner with

7 electric resistance back-up heat.

8 I know it was discussed at the

9 last rulemaking. I'm not sure how to capture

10 it in the analysis, but it should be

11 considered.

12 MR. BROOKMAN: Thank you. Thank

13 you.

14 And what about the second item,

15 SDHV and space constrained products? Yes,

16 Craig.

17 MR. MESSMER: Craig Messmer of

18 UNICO.

19 All of the SDHV product

20 manufacturers do not make enough for a unit,

21 and we believe that whatever minimum

22 efficiency for conventional systems, whatever

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1 condensing units, heat pumps come out of that

2 rule would be used as the baseline for

3 analyzing the SDHV product line. So we'd

4 start there and then work up.

5 Certainly having the mass

6 technology relooked at again would be useful,

7 but I wouldn't like to see any statements

8 based on that.

9 MR. BROOKMAN: What is suggested

10 as mass tech in the table above, does that

11 comport with your view of reality?

12 MR. MESSMER: No, no. There's a

13 separate document that DOE published in 2002

14 that shows the mass technology for SDHV

15 that's not on this chart, but they showed, I

16 believe, 13.4, and that's assuming a 14 SEER

17 nominally sized outdoor unit. 

18 Certainly it might be a higher

19 maximum today, but we don't believe that SDHV

20 should be required to have two-stage

21 condensing units when the minimal for

22 conventional might be single stage, for

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1 example.

2 So anyway, we probably would have

3 to have a separate chart for efficiency

4 levels to be looked at, but since it's such a

5 small product class, we would agree they

6 would just start with the baseline and

7 consider that the outdoor unit.

8 MR. BROOKMAN: John.

9 MR. MANDYCK: John Mandyck with

10 Carrier.

11 Is there anything compelling DOE

12 to look at whole numbers only in the analysis

13 for the SEER standard?

14 MR. CHRISTOPHER: The short answer

15 is simplicity, but if there's compelling

16 reason to look at fractional SEER, you know,

17 we'd like to hear your opinions on that.

18 MR. BROOKMAN: John, do you think

19 there's a benefit in that?

20 MR. MANDYCK: I was just curious

21 as to why there were only whole numbers here.

22 MR. BROOKMAN: Yes, please, Fred.

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1 MR. KELLER: I would just

2 elaborate. Is it possible that DOE would set

3 a SEER minimum, a fractional number rather

4 than a whole number?

5 MR. CHRISTOPHER: It's certainly

6 possible. I think DOE would not be precluded

7 from doing that for any reason. 

8 MR. BROOKMAN: Yes, Talbot.

9 MR. GEE: Yes, Talbot Gee.

10 One thing just for consideration

11 is when you're looking at market penetrations

12 at these various levels and everything like

13 that into the cost analysis, take into

14 consideration that a lot of these levels are

15 incented in some way, shape or form, that

16 should this become a new minimum, it might be

17 reasonable to assume that those incentives

18 might not any longer exist.

19 So I'm not sure exactly how you

20 get to that endpoint, but take into

21 consideration what role current incentives

22 might have had in the market adoption at

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1 these levels and the effect of there

2 potentially not being any incentives at these

3 levels should a minimum raise any of these

4 points.

5 MR. BROOKMAN: Okay. Lance.

6 MR. DELAURA: Just to go back to

7 the CE point and also from a utility

8 perspective, the levels rise on efficiency

9 for many different pieces of equipment, and

10 the utilities and others that provide rebates

11 continually look at this. There's going to

12 be a new baseline established whenever the

13 regional standards and the national standard

14 goes into effect, and it will be measured

15 against that.

16 So typically what we see with CEE

17 is CE becomes Energy Star at some point. 

18 Energy Star moves up. The bar just keeps

19 getting raised, assuming equipment is

20 available that you can rebate, and you just

21 keep raising the bar. It's the cycle of

22 doing this that's been going on for nearly 30

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1 years.

2 So I wouldn't be as concerned

3 about the rebates or the incentives to

4 customers going away. It will just be at

5 different levels for different pieces of

6 equipment.

7 MR. BROOKMAN: Go ahead. Follow

8 on.

9 MR. GEE: Yeah, I guess I should

10 go farther and say the concern is the

11 percentage of that rebate or that incentive

12 has to grow in alignment with the increased

13 cost of product. So if the minimum SEER goes

14 up, then you can't just take that same level

15 of rebate and push it up.

16 And our concern is that those

17 funds are finite, and you get to a point of

18 diminishing returns.

19 MR. DELAURA: I think that's a

20 good point, but the rebates are typically

21 provided for the energy saved. It's not so

22 much based on what the cost of equipment is. 

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1 It's looking at what the energy savings are.

2 So assuming that savings is there,

3 there will be the analysis that will back

4 rebates that will go with that.

5 MR. BROOKMAN: Okay. Jim.

6 MR. CRAWFORD: Jim Crawford. 

7 I'm just going to state the

8 obvious. As we go to higher and higher SEERs

9 and HSPFs, we are in a territory of

10 significantly decreasing return. For every

11 point that you make, you get less than you

12 did for the point before, and in the

13 territory that we seem to be headed for,

14 that's a very significant factor.

15 MR. BROOKMAN: Some final comments

16 on this slide? I'm going to keep pressing us

17 ahead.

18 Andrew.

19 MR. DELASKI: Yeah, I just want to

20 reiterate for this slide the point that I was

21 going to make earlier about the

22 appropriateness of SEER as a regional metric;

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1 that these levels appear to be appropriate to

2 evaluate for the base national standard, but

3 the right levels to consider for the regional

4 standards that should be considered at the

5 point, I think, could very well be different

6 depending on what that metric is, or looking

7 at alternate metrics, and EER brought up

8 earlier today potentially a useful metric for

9 determining performance in a hot, dry

10 climate.

11 I mean, let's just be real clear. 

12 It doesn't make sense to measure efficiency

13 in Phoenix the same way using the climate of

14 Chicago. So looking at a regional standard

15 that puts Phoenix -- and these aren't the

16 right levels. We should be looking at

17 something else that tells us how that air

18 conditioner operates in Phoenix.

19 MR. BROOKMAN: So how would you

20 suggest the department modify it?

21 MR. DELASKI: Well, one suggestion

22 that has been brought up earlier today would

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1 be to look at the EER levels for the hot, dry

2 climate. That was a suggestion that I think

3 should be considered.

4 MR. BROOKMAN: Yeah, I figured

5 we'd get some push-back on that.

6 Karim.

7 MR. AMRANE: Karim Amrane with

8 HRI.

9 I think we've been there before on

10 this EER issue, and the last time we looked

11 at it, DOE decided not to adopt an EER

12 because of concerns that we won't be getting

13 the savings that we would be getting with a

14 SEER rating only.

15 So, again, I mean, what you're

16 asking, Andrew, and what others are asking as

17 far as the test procedures is something that

18 maybe as a group here we could look at, but

19 we're talking about two different things. 

20 We're talking about test procedures versus

21 minimum energy efficiency standard, and if we

22 want to link the two together, we need first

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1 to address the test procedures, and that on

2 its own will require much more time than

3 three years that DOE has to finish this

4 rulemaking.

5 MR. BROOKMAN: Okay.

6 MR. DELASKI: Yeah, a middle

7 ground, I guess, might be to get EER-95,

8 which is the current test method. You're

9 right, Karim. Many of the advocates

10 recommended in the last rulemaking that the

11 department set a standard which would have

12 two parts, a minimum SEER and then a minimum

13 EER that would be a median value of products

14 meeting that SEER to assure performance.

15 The department at the time said we

16 could do that, but they choose not to in

17 large part -- there were several reasons, but

18 one reason was that SEER and the EER

19 correlated quite well after CR-13.

20 But the department also showed

21 that once you got past CR-13, the correlation

22 broke down and that peak performance as you

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1 get to the higher and higher temperatures if

2 the SEER goes up it can be a significant

3 concern.

4 So the determination in the last

5 rulemaking, I think, doesn't tell where this

6 natural median might go.

7 MR. BROOKMAN: Okay. Jim.

8 MR. CRAWFORD: Jim Crawford.

9 And I think that this little bit

10 of discussion highlights the fact that one of

11 the things that the department should be

12 doing first is defining what metrics they are

13 authorized to require in this rulemaking, and

14 out of that range, whatever that set of

15 metrics is, whether it be one or ten, which

16 metrics they are going to use for the

17 national standard and what metrics they would

18 use for regional standards. Because without

19 that, we're in a game here where nobody knows

20 the players or the cast.

21 MR. BROOKMAN: So let me note that

22 the next slide refers to regional standards.

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1 Briefly, Don.

2 MR. BRUNDAGE: Yeah, I think to

3 clarify a little, what I would like I realize

4 it's way too early to say what regional

5 standards ought to be, but some sort of legal

6 statements from DOE on what the rules are and

7 how much flexibility they have on regional

8 standards and what the metrics can be because

9 I've set in this room several times before

10 and heard from DOE that SEER is the only

11 thing you can measure air conditioners on. 

12 That's the only thing you can use, and we

13 hear different things.

14 And just state plainly and not

15 make you look through court cases on what are

16 the ground rules we're operating under.

17 MR. BROOKMAN: Okay. Thank you.

18 Let's proceed. This is 35.

19 MR. CHRISTOPHER: Okay. I think

20 we're all pretty familiar with the

21 requirement in the EISA 2007's regional

22 standard in Section 306, and it does permit

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1 DOE to establish standards for one or two

2 regions on top of a base national standard. 

3 So effectively that would be like three

4 regions.

5 The standards for the additional

6 regions are intended to be more restrictive

7 than the base national standard, and the

8 boundaries that DOE, the Secretary can define

9 are contiguous states only, and Alaska and

10 Hawaii can be included in one of those

11 regions.

12 So Doug, I don't know if you want

13 to flip a few back again, but these questions

14 cover a lot of what we've already talked

15 about so far today.

16 MR. BROOKMAN: Yeah, exactly, a

17 good portion of this, but maybe people could

18 be more specific about the first question: 

19 what would be appropriate regions. Maybe

20 there's a map somewhere or something that you

21 could point us to, Pat.

22 MR. O'CONNOR: Yeah. When the

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1 legislation was being considered on the Hill,

2 we tried to convince without success to the 

3 Congress to make sure that the regions do not

4 split a metropolitan area. Neither the

5 manufacturers nor the ACEEE would agree with

6 us on that.

7 But we're very concerned if you

8 split a metropolitan area, for example, and

9 this isn't a good example, but you've got

10 northern Virginia, Washington, D.C., and

11 Maryland. It's a metropolitan area, actually

12 consolidated statistical metropolitan area. 

13 For the distribution channel, that whole area

14 product moves back and forth across the

15 river. To split that metropolitan area would

16 have significant competitive impact,

17 particularly if there's a price difference

18 between the higher efficiency unit and the

19 national unit.

20 This is not a good example. 

21 Better examples are other states where you

22 have smaller metropolitan areas, but still

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1 significant areas. Several hundred thousand

2 people, I think, in the Quad Cities area,

3 Illinois and Iowa, some of the Kansas4 Missouri areas.

5 We would hope that DOE would look

6 very closely at that because that really

7 impacts Item 1-6 because if you split

8 metropolitan area, you are going to have an

9 impact on distribution and distributors and

10 installers in those metropolitan areas.

11 So I hope regardless of the fact

12 that Congress in its wisdom didn't see fit to

13 write that into the bill, that you would look

14 at that very carefully.

15 MR. BROOKMAN: Thank you.

16 And I'm hoping in this

17 conversation we're about to have about

18 regional standards that we're not going to

19 re-trod the ground we already went over this

20 morning.

21 Harvey.

22 MR. SACHS: I very much appreciate

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1 that comment, and I believe that ACEEE's

2 position was to be supportive of giving the

3 Secretary authority to consolidate a region,

4 a metropolitan area into one of the two

5 contiguous regions that it touched.

6 MR. BROOKMAN: So we want

7 additional comment on how this might get

8 configured by the department.

9 Gary.

10 MR. FERNSTROM: Gary Fernstrom.

11 So a point that I hadn't raised

12 previously with respect to California is that

13 we have coastal regions as well as hot,

14 central valley regions, and if the regional

15 standards are implemented through the states

16 or if they're enforced through the states, I

17 believe California would want to have the

18 option of requiring the more rigorous

19 standards in the climate zones where they

20 make sense and not in the coastal climate

21 zones where perhaps they don't make so much

22 sense.

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1 MR. BROOKMAN: Okay. John

2 Mandyck.

3 MR. MANDYCK: This is John

4 Mandyck, Carrier.

5 That question was resolved in the

6 legislation. I mean, that was debated over

7 and over. So that decision has been made.

8 MR. BROOKMAN: And what was the

9 resolution?

10 MR. MANDYCK: That the whole

11 states can be (speaking from an unmiked

12 location.)

13 MR. BROOKMAN: Thank you.

14 Steve Rosenstock.

15 MR. ROSENSTOCK: Steve Rosenstock.

16 Yeah, I guess as a follow-up, it's

17 interesting if you look at the climate mass,

18 and you discussed it earlier, I assume. 

19 California, 16 climate zones; so, you know,

20 to have 16 separate regulations within

21 California might not make too much sense

22 unfortunately, and other areas. I know

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1 someone was talking about Phoenix. Well,

2 Flagstaff, Arizona has a similar climate zone

3 to parts of Idaho. So there's actually other

4 data just to see kind of how the climate

5 zones all kind of go, and that might have an

6 impact on some of your analysis.

7 Thanks.

8 MR. BROOKMAN: Charlie.

9 MR. McCRUDDEN: Charlie McCrudden,

10 Air Conditioning Contractors.

11 Let me just to sum up what I was

12 going to say, everywhere that Pat said

13 distribution channel or referred to

14 wholesalers or distributors, insert the word

15 "contractors" because we have the exact same

16 concerns, whether it be with a metropolitan

17 area or how this all works.

18 I'm anticipating your next

19 question, which is: what is the solution? 

20 And I don't know what the solution is in part

21 because I don't know precedent that we can

22 look to that we can sort of model the

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1 solution after. Maybe there is one that

2 exists on another product. I don't think

3 there's one under NECA. I don't know.

4 And I think that stresses the

5 importance of doing this very carefully,

6 because this is precedent setting.

7 MR. BROOKMAN: Lance.

8 MR. DELAURA: One potential

9 solution for California would be to have the

10 national standard, whatever it is, as the

11 coastal standard so that you don't have the

12 coastal residents paying the extra cost for a

13 benefit that they wouldn't receive, and then

14 for those hot or more extreme climates have

15 that be the regional, if you will, standard.

16 MR. GILLEY: Again, we don't

17 believe DOE has the authority.

18 MR. BROOKMAN: Kyle, please, say

19 your name for the record.

20 MR. GILLEY: Kyle Gilley.

21 I mean, based on the statute, we

22 don't believe DOE has the authority to do

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1 that.

2 MR. BROOKMAN: I see John and

3 Karim. Both of you go ahead.

4 MR. AMRANE: Exactly same.

5 MR. BROOKMAN: The same response,

6 John, yes.

7 Andrew, gop ahead.

8 MR. DELASKI: I guess I just

9 wanted to make the point. I agree. The law

10 is pretty clear. It says state boundaries. 

11 I think it's pretty clear on that point.

12 The point that I wanted to make

13 though is that when you have a one size fits

14 all national standard, it applies to every

15 climate zone in the United States. Regional

16 standards create the opportunity to have

17 greater cost effectiveness for consumers by

18 breaking the U.S. up into having one base

19 national standard and two regional standards.

20 I would submit that boundaries

21 should be drawn in a way that maximize cost

22 effective energy savings as required by the

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1 statute for the buyers and users of the

2 product.

3 MR. BROOKMAN: Craig.

4 MR. MESSMER: Craig Messmer.

5 I'm going to agree with what he

6 just said sort of. Instead of thinking about

7 climate zones, we should be thinking about

8 hours of operation and how they may closely

9 align with one another, but really we're

10 talking about, I think, justifying the cost

11 justification of an air conditioner. So

12 generally the northern regions don't operate

13 an air conditioner as long as they do in the

14 south. So that maybe should be the way the

15 map is drawn rather than by climate. 

16 Something to consider.

17 MR. BROOKMAN: Pat.

18 MR. O'CONNOR: Pat O'Connor,

19 American Supply Association.

20 I hope when DOE looks at drawing

21 these boundaries it takes into account the

22 willingness of the state when forced the

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1 standard. We have some history with this

2 back with water heater standards in the late

3 '80s and '90s, where states had the

4 opportunity to set their own standards. 

5 The State of New York had a heater

6 standard, a very efficient heater standard,

7 but chose not to enforce it. Entities like

8 the State Housing Authority of New York were

9 contracting with out of state vendors to

10 provide nonefficient heaters because the

11 state was choosing not to enforce it.

12 We went to the Attorney General of

13 New York and his Secretary of Energy at the

14 time and were not able to compel compliance

15 by the State of New York.

16 So I hope as you draw these

17 boundaries you consider the willingness of a

18 state to enforce the standard that's applied

19 to it. Again, we would guess that there are

20 some states, using New England as an example

21 within the New England region, that will

22 probably just choose not to enforce it

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1 because it's against their traditional values

2 to enforce it.

3 So there are benefits to these

4 higher efficiency standards. I'll concede

5 that, but those benefits only accrue if

6 there's a true enforcement mechanism, and to

7 just rely on the goodwill of consumer as the

8 enforcement entity, I don't think that makes

9 sense.

10 So, please, DOE, as you go forward

11 look carefully at establishing some metrics

12 to determine if the states want to

13 participate or not. I understand California

14 does. The State of New York probably does,

15 but other states I don't know.

16 MR. BROOKMAN: Please say your

17 name.

18 MR. SCHMIDT: Ed Schmidt,

19 Northeast Energy Efficiency Partnerships.

20 I would encourage as we look at

21 regions and as we look at, again, the issue

22 of EER that we also look at wholesale

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1 electric markets and think about how many

2 hours of peak we're talking about and the

3 impact of a very few number of hours of peak

4 on prices at the retail level both for the

5 consumer as well as the manufacturer and

6 distributor up and down the supply chain.

7 A case in point would be New

8 England where it was 98 degrees Tuesday in

9 Hartford, and there was a lot of humidity and

10 there was a lot of air going. It will be 45

11 degrees tonight. EER in that region and

12 defining that region based on these dynamics

13 is huge.

14 MR. BROOKMAN: Thank you.

15 Joe Mattingly.

16 MR. MATTINGLY: Joe Mattingly,

17 AHRI.

18 We don't want to get into it here. 

19 It would be a big argument, but we had the

20 issue of enforcement of federal standards by

21 a state in previously litigation with the

22 California Energy Commission, and I think the

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1 result of that taken by all the parties, and

2 certainly I would maintain that states, in

3 fact, do not have legal authority to enforce

4 federal standards.

5 MR. BROOKMAN: I guess you've

6 gotten a rise out of Andrew first and then

7 we'll go to Don.

8 Let's try and make this brief

9 here.

10 MR. DELASKI: Yeah, I'll make it

11 real brief. I think we need to look at the

12 law. I think it was negotiated as part of

13 the regional standards compromise that states

14 could adopt a regional standard into the

15 building codes, but I'll look at the

16 language.

17 MR. BROOKMAN: That would be

18 helpful and supply that language to the

19 department. We're not going to put a fine

20 point on legal interpretation here today I

21 don't think.

22 Ted and then I'll come back to

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1 Don.

2 MR. POPE: Ted Pope.

3 I'm not a lawyer, and I'm not sure

4 PG&E's lawyers have looked at this in detail

5 yet, but I think I want to make sure we're

6 being clear. We agree that the statute says

7 the lines are drawn on the state boundaries,

8 but what I think we're suggesting now is that

9 we'd like DOE to look at when it crafts the

10 rules for state implementation and

11 enforcement or compliance that there's an

12 allowance for states to enforce the regional

13 standard in some places and the base federal

14 standard in others. I think that's what

15 we're looking for and not trying to rewrite

16 the federal law.

17 MR. BROOKMAN: Thank you.

18 Don.

19 MR. BRUNDAGE: I just want to make

20 a point that for the hot, humid climate

21 standard the driving force is not going go be

22 degree days. It's going to be humidity. 

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1 What I would like to see out of a hot, humid

2 standard is something that is a requirement

3 that better meets the needs of hot, humid

4 climates.

5 MR. BROOKMAN: And that would be?

6 MR. BRUNDAGE: Some to find a way

7 to require better humidity control, and maybe

8 it's as simple as going to CR-14, and that by

9 default tends to get variable speed, which

10 helps a lot, but there needs to be some way.

11 The most important criteria to us

12 is to have equipment that works, not

13 something that on paper is a little more

14 efficient.

15 MR. BROOKMAN: Let me direct your

16 attention, folks, if you would, to Item 1.5

17 and 1.6 on Slide 36. That's why I want to

18 make sure I give you a final chance to

19 comment should you have something additional

20 that's not been said already.

21 Tom.

22 MR. ROBERTS: Just briefly, the

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1 micro climate consideration in California is

2 duplicated throughout the United States, and

3 you'd have to address micro climates

4 everywhere. For example, in Missouri, we

5 have the Ozarks, a very hot, humid

6 environment around a bunch of lakes. There

7 contractors recommend and select different

8 systems, and the consumers generally choose

9 humidity control systems.

10 However, the answer to it, I

11 think, is definitely not raising the SEER

12 standard to 14 because no one is going ot get

13 a variable speed, two stage product at 14

14 because we're all going to reengineer to the

15 least common price point at 14.

16 So I think we mistake standards

17 with choice, and the comment about systems in

18 Phoenix and systems in Chicago, we don't

19 design those the same way. The contractors

20 don't select them and offer them the same

21 way, and the consumers don't choose them the

22 same way.

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1 So there's already an awful lot of

2 choice going on.

3 MR. BROOKMAN: Okay, Bill. Go

4 ahead.

5 MR. McCULLOUGH: One item that I

6 think is going to be very important to this,

7 and it's really your Item 1-6, is who

8 enforces these standards. We have customers

9 that regard us -- I mean, I can't imagine

10 that a regional standard with some region,

11 there's not going to be a dealer or a

12 customer or a contractor that's not going to

13 wind up serving both areas.

14 So who enforces and looks at and

15 verifies that that product installed meets

16 that standard? And it becomes very complex

17 even now, today. It's very confusing for

18 consumers. With the energy guide label we

19 say the unit is 13, and we install it with

20 variable speed, and it may get 14, or we

21 install a unit that it says for higher SEER

22 it has to be installed with a variable speed,

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1 but yet it doesn't.

2 So that's a key part of this, and

3 who owns this, how is it going to be

4 enforced, and what's the penalty for not

5 following the law.

6 MR. BROOKMAN: Okay. So then a

7 final comment from Talbot, but I do want to

8 encourage all of you to make very detailed

9 comments and submit them to the department

10 because we're moving on.

11 MR. GEE: Right, and frankly, I

12 think Harvey just wanted to kind of re13 address the basic assumption here. We're

14 kind of jumping ahead assuming that this

15 region were this standard, this region were

16 that standard.

17 I think there's still a question

18 as to just simply raising the standard, be it

19 federally or regionally. Does that directly

20 lead to energy savings? I think there's a

21 concern there because we've seen the increase

22 in the repair business of existing systems.

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1 So the assumption that this is all

2 based on is that if you raise the standard

3 you're automatically going to save energy,

4 and we're not necessarily convinced that's

5 true federally or regionally.

6 MR. BROOKMAN: Okay. Then on to

7 37.

8 MR. CHRISTOPHER: Okay. I'm going

9 to try and go through these a little faster.

10 In engineering analysis, one of

11 the things we do is we look at the

12 manufacturing markup, and this is a way to

13 convert the production cost that the tear14 down analysis, the reverse engineering

15 analysis develops to a manufacturer selling

16 price, and that selling price is what goes

17 forward to the down stream analyses where

18 other markups are applied throughout the

19 distribution channels.

20 So components of manufacturer

21 production costs are listed and manufacturing

22 markup as well. The way that DOE goes about

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1 developing the markup is looking at perfectly

2 available reports, such as SEC filings,

3 company annual reports, and then some private

4 reports.

5 In a minute I'm going to discuss

6 the preliminary manufacturer impact analysis,

7 and during those interviews DOE discussed 

8 this information with manufacturers to

9 refine, clarify.

10 So DOE is looking for feedback on

11 this planned approach for developing an

12 estimate of the manufacturing markup.

13 MR. BROOKMAN: John Mandyck.

14 MR. MANDYCK: John Mandyck.

15 Where is transportation and

16 warehousing accounted for in your analysis?

17 MR. CHRISTOPHER: Transportation

18 as in freight?

19 MR. MANDYCK: Yes.

20 MR. CHRISTOPHER: That would be

21 part of the distribution chain and the

22 markups analysis. So that's a separate

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1 analysis. This goes up through looking at

2 what the --

3 MR. MANDYCK: But the manufacturer

4 has to ship it to a warehouse and then

5 warehouse it, and there's an impact on that

6 from a standard chain. So if you have larger

7 units, we have to put more trucks on the road

8 and get bigger warehousing space before it

9 even leaves our premises to go to the next

10 step in the distribution chain.

11 So I'm wondering where that's

12 factored into your manufacturer impact

13 analysis.

14 MR. CHRISTOPHER: Okay. Well, I

15 can't comment as to whether that's

16 specifically included in the shipments

17 analysis. I don't know if it's going to be

18 addressed later today -- or the markups

19 analysis.

20 MR. ROSENQUIST: It's in the

21 manufacturing (speaking from an unmiked

22 location).

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1 MR. BROOKMAN: So the comment was

2 that it's in the manufacturer's markup.

3 MR. ROSENQUIST: In the production

4 class.

5 MR. BROOKMAN: Please say your

6 name again.

7 MR. ROSENQUIST: Greg Rosenquist,

8 Laurence Berkeley.

9 MR. BROOKMAN: Greg Rosenquist. 

10 Okay. We got it.

11 MR. MANDYCK: I guess a follow-on

12 question. Was that included in the 13 SEER

13 analysis? The impact of the standard on the

14 transportation warehousing, was that included

15 in the 13 SEER analysis?

16 MR. BROOKMAN: I'm not sure we

17 know the answer to that question right now.

18 MR. DELASKI: We can get back to

19 you on that.

20 MR. BROOKMAN: Okay. Karim.

21 MR. AMRANE: Karim Amrane, HRI.

22 It was not included. We made

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1 those comments during the last rulemaking. 

2 We disagreed with the markups. Actually we

3 provided you with markups, and in the end we

4 opted not to use our numbers.

5 So we had a lot of disagreement

6 with the analysis that DOE did last time on

7 the markups, and I'm hoping that this time

8 you will listen a little bit more to the

9 industry.

10 MR. BROOKMAN: Okay. Thank you.

11 Yes, Charlie.

12 MR. McCRUDDEN: And I think if you

13 can extrapolate those comments to beyond

14 manufacturers, to the distributors and to the

15 contractors, I've heard stories about my guys

16 who had to buy trucklifts because the higher

17 SEER products were so much bigger. They had

18 to buy different trucks, and also have two

19 people to make deliveries.

20 So it's not just going to be on

21 the manufacturers, and I may be jumping ahead

22 of myself on where this analysis is done,

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1 but that's something that I think is also of

2 concern.

3 MR. BROOKMAN: Final comments on

4 markups. Tom.

5 MR. ROBERTS: Tom Roberts.

6 Not to jump ahead, but on the

7 manufacturing side now that we have been

8 through this a couple of times, the

9 manufacturers have a much better idea as to

10 obsolescence, obsolescence and work in

11 process, obsolescence of finished goods, and

12 transitional costs associated with change,

13 such as loss of economies of scale in certain

14 sizes. 

15 I'd just like for those to be

16 included since we all know retroactively now

17 about what those are.

18 MR. BROOKMAN: So then the

19 department would really like to see that

20 information, you know. Make sure that's

21 there for them.

22 Talbot.

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1 MR. GEE: And does this -- Talbot

2 Gee -- does this also include the indoor

3 components that are required to achieve a

4 certain given SEER level?

5 MR. CHRISTOPHER: Yes.

6 MR. GEE: It does?

7 MR. CHRISTOPHER: Yes.

8 MR. BROOKMAN: So then on to

9 proprietary designs.

10 MR. CHRISTOPHER: So the

11 department may encounter proprietary designs

12 when it's looking at particular technologies

13 that are used to increase efficiency, and it

14 will evaluate those that are available in a

15 working prototype.

16 However, proprietary designs that

17 are the only path to a given efficiency level

18 will not be considered, and that's to protect

19 manufacturers that don't have access to those

20 designs.

21 And any discussions of proprietary

22 designs, of course, confidentiality will be

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1 maintained.

2 And Item 5A asks are there any

3 proprietary designs that DOE should be aware

4 of and, if so, how should DOE go about

5 acquiring any cost data necessary to evaluate

6 those designs?

7 MR. BROOKMAN: Harvey Sachs.

8 MR. SACHS: I would just like to

9 note the superficial irony of being willing

10 to consider proprietary designs, but not the

11 problem of well established Western tradition

12 of water cooled evaporators.

13 MR. BROOKMAN: Other comments on

14 proprietary designs?

15 Charlie, we didn't get that. 

16 Pardon me.

17 MR. SACHS: I said it was on --

18 MR. BROOKMAN: Harvey, we didn't

19 get it.

20 MR. SACHS: I'm sorry. I used the

21 word "ironic," not "moronic."

22 (Laughter.)

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1 MR. BROOKMAN: So I guess we'll

2 let that one pass. Okay. So no comments,

3 additional comments, on proprietary designs.

4 Keep going.

5 MR. CHRISTOPHER: Yeah, thanks. 

6 As part of the engineering we also looked at

7 outside regulatory changes, and these are --

8 I guess the big example would be the phase9 out of refrigerants, obviously the big one

10 being R-22. Manufacturers are currently

11 transitioning R-410A.

12 The ban on R-22 is beginning in

13 early 2010, and because this falls before the

14 final rule for this rulemaking, DOE's

15 assumption is that manufacturers will be

16 fully transitioned to some new refrigerant by

17 the time standards become effective, and the

18 clear alternative to R-22 at this point is R19 410A.

20 DOE understands there are other

21 issues here, such as the reduced availability

22 of R-22 and the price, slightly increases in

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1 prices. So DOE is looking for feedback on

2 central impacts of reduced availability of R3 22 and any other outside regulatory changes

4 that DOE needs to consider.

5 MR. BROOKMAN: Perhaps we can

6 consider these together. Hung first and then

7 Lance.

8 MR. PHAM: I think we talk a

9 little about R-22, but actually the concern

10 is R-410A that we are trying to transition

11 into. We are barely switching into it, and

12 we already get faced with Lieberman bill and

13 everything trying to phase it out again.

14 So I think those are the big

15 factors that I think DOE needs to consider. 

16 Even the supply of the new refrigerant might

17 be in question, let alone R-22.

18 MR. BROOKMAN: Thank you.

19 Lance.

20 MR. DELAURA: This isn't a

21 refrigerant comment. It's a time of use

22 rates comment, that we think it would be

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1 appropriate in this section to have a comment

2 about that. We'll submit written comments.

3 MR. BROOKMAN: Okay. Okay. Thank

4 you.

5 Charlie.

6 MR. McCRUDDEN: Charlie

7 McCrudden. I don't know the answer to this

8 question. So I'm curious. Is this

9 considered a major rule? And if so, does the

10 Small Business Administration chime in with

11 the impacts on small businesses and such?

12 MR. BROOKMAN: Mike Kiddo.

13 MR. KIDDO: Yeah, it's my

14 understanding that this would be a

15 significant rule.

16 MR. BROOKMAN: Louder, Mike.

17 MR. KIDDO: It's my understanding

18 that this is a significant rulemaking, and

19 with respect to the SBA, they may provide

20 some kind of comment, but that would probably

21 be during the NOPR process, not here.

22 MR. BROOKMAN: Fred.

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1 MR. KELLER: Yes, just a comment. 

2 The question 5.9 you have in your

3 presentation is not the same as the question

4 5.9 --

5 MR. CHRISTOPHER: I understand.

6 MR. KELLER: -- in the framework

7 document.

8 MR. CHRISTOPHER: Right, yeah.

9 MR. KELLER: Which refers to R10 410A, not R-22.

11 MR. CHRISTOPHER: Right.

12 MR. ROBERTS: Tom Roberts.

13 It needs to be both.

14 MR. CHRISTOPHER: It should be

15 both.

16 MR. ROBERTS: There's a

17 transitional shortfall in the gap on 210 for

18 22, but definitely it will affect that.

19 MR. BROOKMAN: Thanks for that

20 clarification. So then it should reflect

21 both.

22 MR. CHRISTOPHER: Yes.

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1 MR. BROOKMAN: Okay. Good. 

2 Thanks. That's helpful.

3 Tom.

4 MR. CRAWFORD: Jim Crawford.

5 MR. BROOKMAN: Jim Crawford.

6 MR. CRAWFORD: I just wanted to

7 underscore the fact that in his opening

8 remarks Dr. Amrane provided some quantitative

9 information on this availability issue for

10 the HFC refrigerants. This is by far the

11 most serious issue facing our industry, and

12 the corresponding changes the most serious

13 issue facing our society.

14 MR. BROOKMAN: Thank you.

15 Okay. Then let's --

16 MR. CHRISTOPHER: Let's move on.

17 MR. BROOKMAN: -- move on.

18 MR. CHRISTOPHER: So the fourth

19 analysis that I'm speaking about today is the

20 manufacturer impact analysis, and the MIA has

21 three main phases. 

22 The first phase is conducted for

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1 the ANOPR and phases two and three are

2 conducted for the NOPR, and in phase one DOE

3 looks at conduct industry profile and

4 conducts preliminary manufacturer impacts or

5 -- sorry -- preliminary MIA interviews.

6 The industry profile is intended

7 to evaluate the structure and market

8 characteristics, and this has some overlap

9 with the market technology assessment.

10 Produces an industry profile

11 report with aggregated findings and

12 characteristics and identifies any critical

13 issues that require special consideration. 

14 Examples are types of subgroups of

15 manufacturers, access to technology,

16 potential regulatory scenarios.

17 And when DOE conducts MIA

18 interviews, these occur during the

19 engineering analysis and include topics such

20 as shipments projections, conversion costs,

21 cumulative regulatory burden, for example. 

22 So we don't have any specific

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1 items of feedback on the preliminary MIA, but

2 at this point, Doug, do you want to? I'm

3 ready to hand off to Sriram. I don't know if

4 you want to.

5 MR. GILLEY: One clarifying

6 question.

7 MR. BROOKMAN: Kyle, please.

8 MR. GILLEY: This says preliminary

9 manufacturer impact analysis, but given that

10 you're also looking at regional standards, it

11 appears to me that this also should include

12 everyone in the distribution channel. Some

13 of these things apply to our friends in the

14 distributor and contracting community, and

15 they will incur a burden that needs to be

16 analyzed in this rulemaking.

17 MR. BROOKMAN: Do you wish to

18 respond?

19 MR. CHRISTOPHER: It's taken into

20 consideration, but the idea of the analysis

21 is to look at impacts on manufacturers.

22 MR. GILLEY: It's a flawed

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1 analysis if you're looking at regional

2 standards and you don't include everything in

3 the distribution channel.

4 MR. BROOKMAN: Talbot.

5 MR. GEE: Well, and I actually

6 hadn't brought up because I thought I had

7 heard you say that there was a section -- I

8 haven't peeked ahead -- a section on

9 distribution impacts. If that's true, then

10 just make sure that that point is expressly

11 included.

12 MR. ROBERTS: Sorry, Talbot. This

13 is Tom.

14 I did peek ahead, and that point

15 is very well taken because the downstream

16 portion is way over simplified, and you need

17 to consider the total channel impact, meaning

18 factory driveway to consumer driveway all the

19 way through with the whole broad scope of the

20 project to get an accurate --

21 MR. BROOKMAN: Since you peeked

22 ahead, where is it about?

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1 MR. ROBERTS: It's the

2 distribution channel discussion.

3 MR. BROOKMAN: Okay. So let's

4 make sure we land on that when we get there.

5 yes, Paul.

6 MR. DOPPEL: I'd like to recommend

7 that you add some consideration to

8 manufacturers who import product. There

9 should be an impact analysis.

10 MR. BROOKMAN: So how would you

11 suggest that gets addressed?

12 MR. DOPPEL: The time and cost it

13 takes to bring products in. It's just talked

14 about shipment and other types of things. So

15 manufacturers who make overseas and then

16 bring into the U.S. face some different

17 issues.

18 MR. BROOKMAN: Pat.

19 MR. O'CONNOR: Pat O'Connor. 

20 Could you give us a little bit of

21 feedback as to what the rationale would be

22 for not including the entire supply chain in

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1 the manufacturer's impact analysis to help us

2 focus our comments on the framework document?

3 MR. CHRISTOPHER: This is a

4 question on the process of the rulemaking,

5 and I don't know. You know, that's not a

6 question that I'm prepared to answer.

7 MR. BROOKMAN: Okay. Then I'm

8 going to suggest we move on to the next

9 slide, and Sriram is our presenter.

10 MR. SOMASUNDARAM: Can you hear me

11 now?

12 The next few steps of the analysis

13 are the energy use analysis, the markups. We

14 will get to that in the next step, and then

15 the life cycle costs and payback period

16 analyses are the next three analyses steps.

17 So in the energy use analysis,

18 essentially this is the step where DOE

19 determines the annual energy consumed by

20 these equipment, and we then multiply that by

21 the electricity price to get the energy cost

22 or the annual operating cost of the equipment

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1 to feed into the life cycle cost and payback

2 period analysis.

3 And we also are able to capture

4 the energy savings potential of products with

5 increased efficiencies in this step.

6 For households or for residential

7 buildings, we propose to develop residential

8 building samples or household samples from

9 RECS data. RECS is the residential energy

10 consumption survey data, and in terms of what

11 the latest available source for RECS data is,

12 it's the 2001 survey data that is available

13 right now.

14 Unfortunately, the 2005 survey

15 data may not be completed and available for

16 our use at least in the ANOPR stages of the

17 rulemaking. So we suspect that given that,

18 we may have to use the RECS 2001 data.

19 Now, in combination with the RECS

20 data, we will also be using the efficiency

21 levels and the cost curves that the

22 engineering analysis produces to develop the

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1 annual energy use for these households.

2 To elaborate this a little

3 further, I thought I'll show you a graphic

4 representation of how we intend to capture

5 the annual energy use from utility bill data

6 that is available as part of the RECS survey. 

7 Combine that with the SEER of the stock

8 equipment within the households.

9 We then scale the annual energy

10 consumption of the household by the higher

11 SEER levels that the engineering analysis

12 would propose us to develop costs for. So we

13 will have scaled up the unit energy

14 consumption that is REC here for every

15 efficiency level per household.

16 And that's the final figure in the

17 right extreme box that we will use to assess

18 the energy consumption of the unit, and this

19 will be done for each product class, each

20 representative unit of a product class.

21 So at this point I'd like to pause

22 and say DOE seeks comments on this particular

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1 methodology to be used. This is essentially

2 the same methodology that was used for

3 previous rulemaking. So there's nothing

4 different about it, except for the date of

5 the RECS data.

6 MR. BROOKMAN: I'll start with

7 Lance and then go to Tom.

8 MR. DELAURA: Yeah, just a quick

9 comment. The same comment that I made

10 before, that the time of use rates are really

11 going to be critical to use to do the

12 appropriate calculation not only for

13 California, but if there are any other parts

14 of the country that have time of use to make

15 sure that gets plugged into the analysis

16 region specific.

17 MR. SOMASUNDARAM: And that will

18 be addressed in a subsequent presentation.

19 MR. BROOKMAN: Thank you.

20 Tom.

21 MR. ROBERTS: Tom Roberts.

22 Am I correct in assuming that

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1 you're going to look at savings potential

2 versus 2001 actual data? Savings potential

3 versus 2001 actual Census data?

4 MR. SOMASUNDARAM: I'm not sure

5 what you're referring to, Census data.

6 MR. ROBERTS: Well, here's the

7 point. The point is our products last an

8 average of 17 years. We're using seven year

9 old data. So the installed population is 40

10 percent replaced off of the data that we're

11 looking at, referencing. So the potential

12 for savings is a lot less than what it looks

13 like if you're using 2001 baseline data.

14 MR. BROOKMAN: Jim.

15 MR. SOMASUNDARAM: If I understand

16 your question correctly, what I meant to say

17 way we will use the utility bill data from

18 the 2001 survey that was completed by

19 DOE/EIA, but will scale up the consumption

20 for the efficiency levels that we'll be

21 analyzing.

22 So we'll simply be saying that

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1 whatever the SEER of the existing unit in the

2 household is, we will assume that that has

3 been scaled up to the SEER level that we are

4 analyzing and hence what the energy

5 consumption will be for that SEER of that

6 equipment.

7 MR. ROBERTS: But do you

8 understand my point, that since then about 30

9 to 40 percent of those units have been

10 replaced.

11 MR. SOMASUNDARAM: That's correct.

12 MR. ROBERTS: And so the

13 assumption is invalid.

14 MR. BROOKMAN: Okay. Jim.

15 MR. CRAWFORD: Jim Crawford.

16 I had a question. I notice in the

17 framework document you make reference to the

18 RECS, CBECS and the American housing survey. 

19 Do you have access to those in a level of

20 detail deeper than what we do?

21 MR. SOMASUNDARAM: Yes. The RECS

22 and CBECS, I believe we do have detailed

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1 access to their survey data, but that's the

2 one that may not be available for the 2005

3 survey data.

4 MR. CRAWFORD: I understand that,

5 but my point is that it seems in the

6 framework document that you make reference to

7 some finer grain data than I think I have

8 access to.

9 MR. SOMASUNDARAM: That's right.

10 MR. CRAWFORD: And that makes it

11 very difficult for those around the table to

12 try to shadow the analysis to see whether or

13 not we concur.

14 MR. BROOKMAN: Harvey.

15 MR. SACHS: May we return to Slide

16 47 for just a second?

17 MR. SOMASUNDARAM: yes.

18 MR. SACHS: I'm concerned about

19 the lower text in the left-hand bullet, SEER

20 per household deduced from equipment age, et

21 cetera. And my concern is that the energy

22 used at high temperature bin hours is higher

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1 in ways that SEER may not completely reflect.

2 MR. SOMASUNDARAM: That's correct.

3 MR. SACHS: And so I'm curious

4 about the details. When you say SEER, are

5 you assuming that equipment operates at high

6 temperatures as estimated by SEER or are you

7 actually looking at the degradation of

8 performance as perhaps reflected by EER?

9 MR. SOMASUNDARAM: Neither of the

10 above. We simply deduce the SEER number, the

11 number, the SEER level of that piece of

12 equipment in that household from the RECS

13 survey results, and that will be based on the

14 vintage data that they provide us.

15 There is no way of knowing exactly

16 what equipment goes into which household.

17 MR. SACHS: But that seems to be

18 assuming that the SEER rating, the back

19 computed SEER rating with a piece of

20 equipment in the central valley of California

21 or in Mobile, Alabama is reflected by or

22 related to in some significant way SEER, and

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1 that goes to the heart of this question of

2 regional standards.

3 MR. BROOKMAN: A follow-on and

4 then I'm coming to you next.

5 PARTICIPANT: I think on a volume

6 weighted basis it should all wash out because

7 you're going to have --

8 MR. SOMASUNDARAM: These are just

9 representative.

10 PARTICIPANT: -- some of those

11 units that are going to be located in St.

12 Louis, which is close to where your national

13 average is. Some are located in Minnesota. 

14 Some of them are in a hot, dry climate.

15 So I think overall when you're

16 using SEER and then looking at this big

17 population of units, it should wash that.

18 MR. SOMASUNDARAM: yeah, we're

19 only capturing the representative households. 

20 I don't want to get into details here, but

21 it's a representative household for around

22 the country. And then we'll do a population

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1 weight for doing a state-by-state calculation

2 of the energy consumption. So it's all on a

3 national level. That's the SEER metric

4 that --

5 MR. BROOKMAN: Your name, please.

6 MR. WILKINS: I'm Robert Wilkins

7 with Danfoss.

8 I think your approach on the cost

9 analysis is good, assuming that you have all

10 of the factors from the manufacturers through

11 the distribution channel, and these

12 industries can help you with that.

13 However, keep in mind that about

14 one-third of the market for central air

15 conditioning is new housing, and this is

16 probably the appropriate analysis for that. 

17 Two-thirds of the market approximately is

18 replacement, and that's where I'm missing a

19 point because those consumers have a choice,

20 and it creates an elasticity of demand, and

21 as we raise the cost of high efficiency

22 equipment to 13, 14, 15, 16, it becomes

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1 increasingly attractive to replace that old

2 compressor so that you have a unit at five,

3 six, seven, eight, and we miss a huge

4 opportunity to save energy when that occurs.

5 And I would urge the department to

6 look at that elasticity to see what happens

7 to those consumers in two-thirds of the

8 market that have a choice, that can repair

9 that old, inefficient piece of equipment.

10 MR. BROOKMAN: Thank you.

11 Don.

12 MR. BRUNDAGE: A more subtle

13 comment on the energy analysis approach, and

14 I went back and looked at the TSD from 2001

15 on this. As best I can tell, and correct me

16 if I'm wrong, the department is assuming that

17 the SEER of a unit is the same from the time

18 it is installed until the time perhaps 17 or

19 20 years later that it is scrapped and

20 replaced, and there is no degradation of

21 performance during that time.

22 Is that a correct assumption about

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1 your analysis?

2 MR. SOMASUNDARAM: Yes. There's

3 no way of capturing the degradation

4 information at all.

5 MR. BRUNDAGE: It's not possible

6 to know it accurately, but it does exist, and

7 some sort of realistic assumption, even if

8 it's a one percent per year degradation would

9 be better than the overly optimistic implicit

10 assumption that you have.

11 MR. AMRANE: Karim Amrane, HRI.

12 But, Don, the same is true when

13 they forecast saving the future as well. DOE

14 doesn't assume that the new standard will

15 degrade over time.

16 So I think, you know, if you want

17 to do it that way, you have to be consistent

18 all the way.

19 MR. BRUNDAGE: Oh, I agree. 

20 You're overstating the savings by not

21 figuring the degradation.

22 MR. AMRANE: Yes.

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1 MR. BROOKMAN: Talbot.

2 MR. GEE: I was curious as to what

3 consideration is made for increases in

4 building code improvement, envelope

5 improvements that might affect sizing,

6 equipment, obviously energy consumption. 

7 Therefore if you're basing it on, say, '01, I

8 mean, there are significant changes that will

9 happen between '01 and this rule.

10 MR. SOMASUNDARAM: Going forward,

11 we're going to talk about shipment analysis

12 and efficiency related shipments in a

13 subsequent presentation. Greg will address

14 that.

15 But going backward, there is,

16 again, no way of knowing how the building has

17 changed or how the usage has changed. So the

18 only way we're going to account for that is

19 by assuming that the SEER level is scaled up

20 to the present analysis levels.

21 MR. BROOKMAN: Charlie.

22 MR. McCRUDDEN: Charlie McCrudden.

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1 Do the life cycle costs and

2 payback period analysis consider rebates, tax

3 incentives and other things out there

4 available to the consumer?

5 MR. SOMASUNDARAM: That's actually

6 captured in a separate analysis at the NOPR

7 stage called the regulatory or nonregulatory

8 approaches to the regulation that we are

9 looking out right now.

10 So options such as incentives and

11 rebates and Energy Star kind of incentive

12 programs, impacts of that are considered in

13 that step.

14 MR. BROOKMAN: Jim. Final

15 comments now on the DOE's proposed approach. 

16 Jim.

17 MR. CRAWFORD: Jim Crawford.

18 I think that the point that

19 Southern California Gas made is an important

20 point, and I would urge the PNNL staff to

21 have the right hand talk to the left hand

22 because the international energy conversation

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1 code center of expertise is PNNL, and they

2 perhaps could give you reasonable estimates

3 as to what is happening relative to load

4 reduction on new construction as we go

5 forward.

6 You know, we're talking about a

7 period here that's the latter half of the

8 next decade.

9 MR. SOMASUNDARAM: Absolutely, and

10 some of the same people are involved.

11 MR. BROOKMAN: Don.

12 MR. BRUNDAGE: I would like to see

13 just as a sensitivity analysis to run these

14 numbers on what you get out of a new

15 building, such as the 2010 IECC, because it

16 seems like there's an awful lot of assumption

17 of what happens when you stick in an old,

18 inefficient building with some of the new

19 changes in building code standards. Some

20 comparison of what it would be for a very

21 well insulated building would be useful.

22 MR. BROOKMAN: Let's press on to

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1 rebound effect.

2 MR. SOMASUNDARAM: Yes. This step

3 is referred to in several sections of the

4 framework document if you noticed. The first

5 time it occurs is in the energy use analysis,

6 and essentially this is one of a statement

7 that DOE will consider this effect in the

8 determination of the annual energy

9 consumption.

10 And for those of you who are not

11 familiar with this effect, it essentially

12 occurs when more efficient equipment is used

13 more extensively. In other words, it's run

14 longer or it's operated longer.

15 So the projected energy savings

16 may not be realized in the analysis, and the

17 literature out there that suggests that this

18 rebound effect may vary all the way from zero

19 to 50 percent for space cooling equipment,

20 and therefore, we're asking you for comments

21 that you might have on how DOE might consider

22 the rebound effect in this step of the

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1 analysis.

2 MR. BROOKMAN: Steve Rosenstock.

3 MR. ROSENSTOCK: Steve Rosenstock,

4 Edison Electric Institute.

5 A lot of utilities have run rebate

6 programs for high efficiency air conditioners

7 and heat pumps. I know what I'm going to do. 

8 I'm going to ask member companies if they run

9 programs have they done some sort of load

10 research analysis for those customers in

11 house every couple of years before, couple of

12 years after, if they've noticed rebound

13 effect after the high efficiency equipment

14 has been installed.

15 So hopefully there will be some

16 data for you to look at to do your analysis.

17 MR. BROOKMAN: Thank you.

18 Other comments on rebound effect

19 and how that might be anticipated,

20 calculated?

21 Jim.

22 MR. CRAWFORD: I'm against the

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1 opinion of some of us that that effect is so

2 small it's not worth bothering to calculate. 

3 I'm facing putting in a new air conditioner,

4 and I don't think it's going to change my

5 criteria or my wife's criteria for the

6 standard of comfort. I just don't see us

7 changing the thermostat setting because we

8 got a new unit. 

9 MR. BROOKMAN: Other comments? 

10 Okay.

11 MR. SOMASUNDARAM: There's ten

12 percent of shipments of these equipment, the

13 central air conditioners and heat pumps, that

14 get installed in commercial buildings. 

15 That's the assumption that was used in the

16 previous rulemaking for this product, that

17 ten percent was the figure.

18 Here on this slide we're basically

19 saying that if DOE decides to do a separate

20 analysis for those ten percent of their

21 shipments that get installed in commercial

22 buildings, we intend to determine the energy

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1 consumption, annual energy consumption, those

2 buildings, using a whole building simulation

3 approach and using a small office building

4 prototype that has already been doubled up

5 for some of our other work for DOE and

6 conducting that simulation over different

7 climate zones and using the CVEX data here to

8 characterize the small office building

9 prototype and then to determine the annual

10 energy consumption from that, using the

11 simulation approach.

12 So the questions on the next slide

13 are essentially two questions. One is

14 whether the ten percent number is still a

15 pretty accurate estimate of the products that

16 go into small commercial buildings, and the

17 second question is what do you all think

18 about the approach that we have proposed here

19 for this particular analysis.

20 MR. BROOKMAN: Jim.

21 MR. CRAWFORD: The first

22 observation is that if you're going to start

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1 delving in this area, you need to separate

2 split systems from packaged goods. I think

3 you're going to find that there's a

4 significantly higher percentage of package

5 that will be in the commercial application

6 than you will for split systems.

7 And you may find that there are

8 some classes of equipment that may be single

9 phase that you're not even considering, like

10 the package system with a strip heat or gas

11 heat in the package system.

12 MR. BROOKMAN: Thank you.

13 Other comments on these two

14 questions, particularly the ten percent

15 estimate? No endorsement, no refute?

16 (No response.)

17 MR. BROOKMAN: Okay, and what

18 about the second item, 6-5?

19 MR. CRAWFORD: This gets back to

20 the question I asked earlier about whether or

21 not you're looking at information in greater

22 depth than we have available to us when we go

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1 on the EIA Website. It's my use of that

2 Website which is fairly frequent. They don't

3 cut it very fine, and almost anything would

4 fit in almost any of their classifications.

5 So if you've got a definition that

6 you'd like us to evaluate, then write the

7 definition down and we'll evaluate it.

8 MR. BROOKMAN: Okay. 

9 MR. SOMASUNDARAM: Okay. So now

10 we do come to the markups. This is the stage

11 at which the economic information will be

12 generated to go into the life cycle cost

13 analysis. So the engineering analysis would

14 give us the manufacturer's selling price. In

15 other words, as the equipment leaves the dock

16 of the manufacturer, that's the price that we

17 have at this stage.

18 And at this step of the analysis

19 is when we calculate the individual markups

20 as the equipment goes through the

21 distribution chain, through the

22 wholesaler/distributor to a contractor and

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1 eventually to a consumer. And so we do need

2 to develop these data in order to get the

3 total installed cost of the equipment, which

4 goes into the life cycle cost analysis, and

5 this slide basically says the data sources

6 that we will be using to obtain some of these

7 markups.

8 The next slide, shows the proposed

9 distribution channels that we will be using

10 for this particular analysis. As you can

11 see, the Channel 1 goes through the steps of

12 manufacturer, distributor to a dealer or

13 contractor and eventually to a customer.

14 Channel 2 is slightly different in

15 the sense that the dealer-contractor is

16 replaced by a builder, a spec builder or a

17 custom builder that interfaces with the

18 wholesaler of the equipment and sells it or

19 installs it in the house for the customer to

20 use.

21 The third channel is unique in the

22 sense that it goes directly from the

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1 manufacturer to a large retailer, as in Sears

2 or Home Depot, and the customer basically has

3 the store install it in their households, and

4 so it's a shorter step to getting to the

5 product.

6 MR. BROOKMAN: Tom.

7 MR. ROBERTS: Yeah, Tom Roberts.

8 I think if you apply the Slide 43

9 to this slide and you really understood how

10 the market works, and if you sort of change

11 Slide 43 from manufacturer impact analysis to

12 market impact analysis, you know that

13 distribution Channel 3 virtually doesn't

14 exist. It's meaningless really, and

15 distribution Channel 2, at least the way you

16 portray it -- now, there's something that

17 looks like that, but it has all the same

18 functions as distribution Channel 1, and

19 distribution Channel 2 actually looks kind of

20 like distribution Channel 2, but it really is

21 distribution Channel 1 again.

22 So if you did Slide 43 and really

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1 understand the way our whole distribution

2 channel works, you'll see that there's just a

3 need for one model for the most part, and it

4 will give you much better, accurate costs.

5 MR. BROOKMAN: Okay. Thank you.

6 Other comments on these

7 distribution channels? Yes, Pat.

8 MR. O'CONNOR: Pat O'Connor.

9 I agree with what you said about

10 that there's probably just one distribution

11 channel if you drilled down into it, but that

12 being said, this slide assumes that there's

13 one national supply chain distribution

14 channel because there's a national standard.

15 I think DOE has to look at the

16 geographical distinctions that will be added

17 to the distribution channel with regional

18 standards. When I say "geographical," you

19 may have a distributor in Richmond who is

20 distributing product to contractors in a

21 number of different states. Why? Because

22 Richmond is on the axis of I-64 and I-95.

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1 So you really have to factor in

2 the geographical distinctions of regional

3 standards, and in the slide before that when

4 you said the DOE will characterize

5 distribution channels, we will certainly

6 submit written comments as to how you should

7 characterize those distribution channels, but

8 we would hope that we would be invited in,

9 whoever would like to, would be invited in to

10 sit down with you and talk through the

11 distribution channels because otherwise you

12 may not understand our written comments, and

13 I think a sit-down session would be much more

14 productive because, again, the distribution

15 channel is going to be distorted because of

16 the regional standards.

17 MR. SOMASUNDARAM: Two responses. 

18 One is the characterization of the

19 distribution channels is what would be kind

20 of described here as a kind of proposal,

21 proposed picture that DOE has presently.

22 The regional differences comment

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1 is very appropriate because that's the last

2 question of Item 7-1, in fact. Are there any

3 regional differences in the distribution

4 channels? And we would very much like to

5 hear if there are differences and what they

6 are.

7 And going back to the previous

8 comment, I was going ot say that, in fact, we

9 would, if you would look at Item 7-2, we, in

10 fact, ask for specific fractions of shipments

11 that occur through each of the three channels

12 described earlier. In other words, if you

13 think that most of the shipments occurred

14 through Channel 1, then we want you to

15 comment on that, and not so much through

16 three or vice versa.

17 MR. BROOKMAN: Go ahead, Pat. 

18 Keep going.

19 MR. O'CONNOR: Yeah, to follow up

20 on that, I think first we need an agreement

21 between industry and DOE as to what the

22 distribution channel is. If we disagree that

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1 there are three different distribution

2 channels, then it's kind of senseless for us

3 to try to tel you what percent of product

4 flows in which one of those channels.

5 We have to come to some agreement

6 or agree to disagree before we really can

7 help you identify what's coming through the

8 channel.

9 MR. BROOKMAN: Okay. Tom.

10 MR. ROBERTS: He said it.

11 MR. BROOKMAN: Okay. Talbot.

12 MR. GEE: Well, and I think I'd

13 expand on our dear distributor colleague

14 across the table that I think this needs to

15 be two separate analyses basically. Frankly,

16 there is the one based on the single national

17 standard, and then, frankly, a whole

18 different analysis on a regionalize standard. 

19 They're really apples and oranges, the type

20 of analysis.

21 And, frankly, I think our opinion

22 looking back, and it's our own fault for not

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1 having been engaged more in the front end the

2 last time, but this whole segment has been

3 under characterized in the national

4 discussion. So I don't know if we can even

5 get past a national discussion to a regional

6 discussion until this part is done.

7 The second part to it is there's

8 varying models within distribution that, you

9 know, I mean, I think there are worthy

10 discussions about central distribution

11 systems versus localized distribution

12 systems, which I mean, that of itself could

13 be a discussion that could go for a very,

14 very long time.

15 MR. BROOKMAN: Harvey.

16 MR. SACHS: Two observations. One

17 of them is that this proposal misses two

18 distribution channels that have been

19 mentioned today. One of them is the dealer

20 direct model used by at least one of the

21 major manufacturers which rolls up the

22 distribution and manufacturing, and the other

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1 is the import model.

2 And given that and the

3 difficulties of this analysis, the question

4 comes whether cutting straight to the chase

5 of looking at a retail price survey, which is

6 a difficult thing because of the way

7 different contractors price the markup on the

8 equipment versus the installation, but

9 looking strictly at the retail and perhaps

10 the manufacturer costs, the manufacturer's

11 free on board price and not worrying about

12 the details and what happens within the

13 distribution network might be adequate, might

14 allow us to more easily look at the regional

15 questions, and might be more honest. Don't

16 know, but it is a question that I would like

17 to raise.

18 MR. BROOKMAN: Tom.

19 MR. ROBERTS: I completely

20 disagree with that. You might as well use

21 $335.

22 MR. SACHS: It's okay with me.

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1 MR. ROBERTS: It's the essence of

2 the whole thing, and until you get into the

3 texture of it, the two models you just

4 mentioned, importing, for example, primarily

5 goes through the same distributor-contractor

6 thing, and to my worthy brand competitor who

7 operates the one-step thing, he has the same

8 buildings with the same people driving fork

9 lifts. The functionality is all the same. 

10 So until you get into a full

11 understanding of the market impact analysis,

12 you don't accurately get a good idea of the

13 cost and so your whole payback analysis is

14 flawed.

15 MR. SACHS: Let me just follow

16 that if I might with a question, and it will

17 put you on the spot a little bit.

18 MR. ROBERTS: Perfect.

19 MR. SACHS: You believe DOE is

20 capable of carrying out the analysis you

21 requested.

22 MR. ROBERTS: I couldn't hear that

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1 question.

2 MR. SACHS: You believe that DOE is

3 capable of carrying out the analysis you've

4 requested.

5 MR. ROBERTS: Oh, yes, I do, with

6 our help because we would offer -- I can

7 honestly say this -- we look forward to

8 offering or providing a benchmark for you to

9 check against, a series of chain -- of

10 distribution markup multipliers that you

11 could check your results from.

12 MR. BROOKMAN: -- in that you can

13 provide the beginnings of those comments in

14 writing, and then DOE certainly will follow

15 up with you to get a more complete

16 understand.

17 Yes, Jim.

18 MR. CRAWFORD: I don't know

19 whether I'm close to an understanding or not. 

20 Certainly I think everybody in the room who

21 is in the industry agrees with the comments

22 that are coming from the distributors here

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1 about there being basically one model, and it

2 would be kind of nice to hear DOE say that

3 they at least think that that might be

4 possible and might be right so that we know

5 where we're going. 

6 Because until we know that, as was

7 just pointed out, we're looking at a chart

8 that's got three months and there aren't

9 three.

10 MR. BROOKMAN: Yeah.

11 MR. CRAWFORD: And we can spend

12 the rest of the day talking about why there

13 aren't three.

14 MR. BROOKMAN: No need to do that. 

15 I think we've covered it adequately here.

16 Go ahead, Talbot.

17 MR. GEE: Well, and I want to

18 reinforce Pat's statement, too, that I don't

19 think we can accomplish this solely by

20 written comment alone.

21 MR. BROOKMAN: Yeah, right. No, I

22 think that DOE acknowledges that and

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1 appreciates your willingness to sit down with

2 them, discuss this, find a way to get enough

3 information for them to have an accurate

4 representation of the primary distribution

5 chain.

6 MR. GEE: You can even include the

7 single step guys.

8 MR. BROOKMAN: Yeah, okay. So

9 then I'm going to suggest we move on.

10 MR. SOMASUNDARAM: Okay. One

11 other I forgot to mention was somebody

12 mentioned U.S.' replacement products. That,

13 again, is as we understand a different

14 market. We need to develop markups and

15 distribution channels for not only the new

16 products, but also replacement products. So

17 that's where probably the chain stores come

18 in to Channel 3.

19 MR. GILLEY: I didn't understand

20 what you just said.

21 MR. SOMASUNDARAM: Where the

22 customer goes to purchase a replacement

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1 product, it may be a different way of getting

2 their product.

3 MR. GILLEY: That customer still

4 goes through a dealer.

5 PARTICIPANT: Yeah, and a

6 wholesalers.

7 MR. GILLEY: That customer may

8 physically go into a retailer outlet, but

9 that dealer still makes a home visit for

10 himself.

11 MR. SOMASUNDARAM: No, they don't.

12 MR. BROOKMAN: Because of the

13 installation requirement and all of that.

14 MR. ROBERTS: But they do.

15 MR. GILLEY: Yes, they do. That's

16 the business model. Yes, they do.

17 MR. ROBERTS: There's a

18 misunderstanding there. That serves as the

19 place where you can walk in and meet someone

20 who will come out to your place, but there is

21 no place where you can go buy a retail

22 replacement system. I mean, it looks like

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1 it. It would seem that you're going into the

2 big orange store and buying an air

3 conditioner, but actually the people come out

4 in blue trucks.

5 MR. CRAWFORD: And I know who --

6 Jim Crawford -- I know who supplies them.

7 (Laughter.)

8 MR. CRAWFORD: The orange door,

9 and what he's saying is right.

10 MR. BROOKMAN: Okay. John

11 Mandyck, go ahead.

12 MR. MANDYCK: This is John Mandyck

13 from Carrier.

14 I know the outfit that supplies

15 Sears, and it's the same model.

16 (Laughter.)

17 MR. BROOKMAN: Okay. I'm glad

18 we've got some people that know some things

19 in this room. That's good. Okay.

20 MR. SOMASUNDARAM: And there were

21 two more questions of use of baseline

22 incremental markups. The difference between

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1 the two is the baseline markup applies to the

2 baseline efficiency equipment, and to that we

3 apply and to the higher efficiency equipment

4 we apply what's called incremental markup. 

5 In other words, what is a cost markup for

6 higher efficiency equipment beyond baseline

7 efficiency?

8 And so any comments, written,

9 pertaining to these questions are welcome.

10 MR. BROOKMAN: Yes, Talbot.

11 MR. GEE: I just suggest we may

12 find that those aren't exactly increment.

13 MR. SOMASUNDARAM: Pardon?

14 MR. GEE: As you go up in

15 efficiency levels.

16 MR. SOMASUNDARAM: Right. They're

17 not incremental. That's right.

18 MR. BROOKMAN: Okay.

19 MR. SOMASUNDARAM: So can I go

20 into life cycle cost and payback period

21 analysis?

22 MR. BROOKMAN: Yes.

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1 MR. SOMASUNDARAM: Okay. This

2 particular step, again, assesses in a

3 spreadsheet format. We calculate what life

4 cycle cost of having the equipment installed

5 as well as operating the equipment over the

6 year is, and we determine this based on

7 several inputs and we're going to talk about

8 each of the inputs separately during the

9 course of the next five or six slides.

10 But as part of the LCC analysis,

11 we also report a simple payback in the number

12 of years it takes to pay back the investment. 

13 The general approach is to use a Monte Carlo

14 type stochastic analysis to consider not only

15 variability in the input variables but also

16 to look at different scenarios of the input

17 variables.

18 And for each product class we will

19 develop one analysis spreadsheet in the

20 workbook in the Excel format.

21 This particular graphic

22 illustrates the various inputs that go into

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1 this particular analysis. This is ultimately

2 the economic impact analysis. Having gone

3 through the process of the engineering and

4 the energy use used by the equipment, we

5 ultimately have to determine whether the

6 standard is economically justified, and this

7 is one of the ways of doing that.

8 And as you can see in this

9 graphic, there are inputs all the way from

10 engineering analysis, which gave us the

11 manufacturer's selling price to which the

12 markups are multiplied including sales tax to

13 get to a equivalent price to the customer.

14 We also develop the installation

15 cost as an input to the LCC analysis, which

16 we then obtain the total installed cost of

17 the equipment.

18 From the bottom half of the figure

19 we obtained the energy consumption multiplied

20 by the electricity price to get the annual

21 energy expense or operating expense of the

22 equipment, to which we input the repair and

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1 maintenance cost to get the annual operating

2 expense over the year's operation.

3 At that point then the lifetime

4 discount rate and future electricity and

5 future electricity price trends or

6 projections of how the electricity prices

7 might change over the analysis period are

8 further inputs to the LCC analysis, which

9 then gives us the lifetime operating expense

10 that we have to use for the LCC analysis.

11 And each of the steps, each of the

12 yellow boxes that are on the right side of

13 the diagram we will explain individually.

14 And now I'll call upon Greg

15 Rosenquist to talk about electricity price

16 and discount rate assumptions.

17 MR. ROSENQUIST: Okay. Thank you,

18 Sriram. 

19 I'm Greg Rosenquist from Lawrence

20 Berkeley National Laboratory. I'll be

21 talking about two of the inputs to the LCC

22 and payback period analysis, and that's the

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1 electricity prices and the discount rates. 

2 I'll first be starting with the electricity

3 prices.

4 They are used to convert the

5 energy consumption data from the energy use

6 analysis into energy costs, and DOE intends

7 to use marginal electricity prices in this

8 analysis to come up with the energy cost

9 savings. The marginal price is the price

10 paid by the customer for the last kilowatt

11 hour of electricity purchased.

12 For residential electricity

13 prices, because typically, now, typically

14 they consist only of energy use charges and

15 not demand charges or time of use rates. 

16 Simpler methods can be used which are

17 sufficiently accurate for developing marginal

18 prices. The department proposes two

19 approaches for doing this based upon two

20 different data sources.

21 One is the residential energy

22 consumption survey, or RECS. It provides

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1 utility bill data by households. So you can

2 plot the monthly bill data against monthly

3 consumption data, fit a line to those points,

4 which actually you'd be surprised. On a

5 household basis that linear fit is pretty

6 good, and that slope is the marginal price

7 for that particular household.

8 Again, the problem with it, as

9 Sriram has pointed out earlier, is that all

10 we have is RECS 2001 data at this point, and

11 if the RECS 2005 isn't available, that means

12 if DOE decides to go forward with the RECS

13 data, we'll be dealing with seven year old

14 data.

15 The other option is to use data

16 from the Edison Electric Institute. EEI

17 produces typical summer and winter reports

18 where they produce monthly bills for

19 residential, commercial, and industrial

20 customers. And for residential customers,

21 their usage or their bills are provided at

22 three different usage levels for

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1 approximately 180 different utilities. 

2 So a marginal price can be deduced

3 between the two consumption levels. The most

4 recent data is from 2007, and so the benefit

5 of using this data is that it's very recent.

6 Another alternative, of course, is

7 to take the 2007 data and to scale up the

8 data from RECS 2001, and the advantage to

9 that is we can keep things at the household

10 level.

11 MR. BROOKMAN: You had a comment

12 now. Steve Rosenstock.

13 MR. ROSENSTOCK: Hi. Steve

14 Rosenstock, Edison Electric Institute.

15 By all means feel free to use the

16 EEI data. It's publicly available data, and

17 it's published. We do it twice a year, the

18 summer and then the wintertime. So as you go

19 through the analysis the data will be updated

20 basically annually in terms of the summer

21 usage.

22 I just wanted to say one caveat

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1 though is that the EI data only covers, as

2 far as I know, just the investor owned

3 utility segment of the marketplace. So

4 that's covering, let's say, about 72 percent

5 of the population. Our data does not include

6 that information for municipals and co-ops.

7 So, again, it's covering 70

8 percent. It's not covering 100 percent. The

9 RECS data might be more representative of 100

10 percent of the data that's out there. So my

11 suggestion, use the EI data as you wish as a

12 supplement, not as the only data set I would

13 suggest.

14 Thank you.

15 MR. BROOKMAN: Thank you. thank

16 you very much.

17 Yes, Gary.

18 MR. CRAWFORD: Jim Crawford. 

19 Two points. One is the when you

20 are considering regional standards, I don't

21 see how you can do that without considering

22 much more fine grained utility cost

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1 structure. I mean, the national average

2 figure is useless.

3 The second point that I would make

4 is that I think that if DOE, if the right

5 hand would talk to the left hand, EIA

6 publishes costs, I believe, on a monthly

7 basis. So you don't have to go back to 2001. 

8 You may have to go back to 2001 for an

9 estimate of use, but you don't have to go

10 back to 2001 for the price.

11 MR. ROSENQUIST: Can I make a

12 comment about that data? That data provides

13 sales and usage by utility. So you can

14 deduce an average electricity price from that

15 data, but you can't derive a marginal price

16 from it.

17 MR. CRAWFORD: Well, you know,

18 back in the dark ages when we did this

19 before, there was a massive analysis

20 undertaken by a noted West Coast laboratory

21 comparing marginal prices and average prices,

22 and I seem to recall that after 20 man-years

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1 of work, you came to the conclusion that

2 there wasn't a heck of a lot of difference.

3 And within the precision of this

4 whole process that we're talking about, the

5 difference is insignificant.

6 MR. BROOKMAN: So Gary.

7 MR. FERNSTROM: Well, when we

8 consider regional standards, it seems to me

9 imperative that we use regional prices, and

10 at least for our utility, PG&E, there is

11 quite a bit of difference between the

12 marginal cost and the average cost. This is

13 because of the current tiered rate structure,

14 and for that matter, as Lance has pointed out

15 several times, the time of use cost behind

16 that rate structure and the movement in

17 California toward time dependent pricing.

18 I don't think your methodology for

19 determining marginal price necessarily works,

20 given our rate structure.

21 MR. DELAURA: Can I just add on

22 something?

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1 MR. BROOKMAN: Lance, please do. 

2 And if you can suggest the way that this gets

3 fixed, that would be helpful.

4 MR. DELAURA: Just to add onto

5 what Gary said, in California certainly

6 within the time frame of this rulemaking,

7 when the rule actually goes into effect,

8 there will be time of use rates for

9 customers, and so this notion of the marginal

10 rate for a customer is going to be very

11 different, and the value of energy is going

12 to be treated very differently.

13 And so I guess this all goes back

14 to the regions. If we know there's going to

15 be a specific region that's considered, at

16 least, if not adopted, and California happens

17 to be a part of that, then I think what we

18 can do is we can have our rate design people

19 and certainly people from the California

20 Energy Commission would be happy to work with

21 you in doing that specific potential regions

22 analysis.

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1 But I agree with Gary completely

2 that to assume that we're going to take an

3 average of a marginal cost and assume that's

4 reflective of California is absolutely

5 incorrect.

6 MR. ROSENQUIST: Can I make a

7 couple of comments in response?

8 MR. BROOKMAN: Go ahead. Please

9 do.

10 MR. ROSENQUIST: First Jim's. 

11 We've looked at that EEI data from 2007, and

12 you're exactly right. The average prices

13 actually for every region, every Census

14 division in a large state, with one of the

15 large states being California, the average

16 price is greater than the marginal price.

17 In California though, the marginal

18 price is significantly greater than the

19 average price. So it would be interesting to

20 see, and once the time of use rates do come

21 out, whether that current difference that

22 we're seeing in California with the current

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1 rate structure basically reflects what would

2 happen under a TOU rate structure.

3 MR. BROOKMAN: Yes, please.

4 MR. WILKINS: Robert Wilkins with

5 Danfoss.

6 I am a little concerned about

7 using the average of 180 or 200 utilities,

8 the marginal cost of 180 or 200 utilities. 

9 From my own experience a few years ago in the

10 electric utility industry I saw there's a

11 wide variation in rates from low to high.

12 So I would urge you if you look at

13 that average -- I'll just pull a number out,

14 ten cents per kilowatt hour, 12, whatever it

15 is now -- also do a test to see what effect

16 your decision would have on those that were

17 actually paying six cents per kilowatt hour

18 or those that were paying 15 cents per

19 kilowatt hour, and take that into

20 consideration as a sensitivity analysis.

21 Now, in fact, the consumer who's

22 paying that higher rate has the ability to

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1 choose. He can always buy a more efficient

2 piece of equipment. That consumer that's

3 paying the six cents and might not be able to

4 justify whatever is justifiable at the

5 national average, we don't leave him any

6 choice. So he gets penalized.

7 And I just urge the department to

8 look at that on a sensitivity analysis basis.

9 MR. ROSENQUIST: Can I just

10 respond to that real quickly?

11 A point of clarification. On the

12 EI data, again, we can develop a marginal

13 price for each one of those 180 utilities,

14 and so when I said that the EI data shows

15 that the average price is greater than the

16 marginal price everywhere except California,

17 what I'm saying is that we've aggregated the

18 prices for all of those utilities in the

19 particular regions based upon the number of

20 customers that they serve.

21 So we can reduce that back down to

22 the utility level.

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1 MR. WILKINS: But I'm not speaking

2 of the average versus the marginal cost. I'm

3 speaking of the average of the average across

4 the 180 utilities, that we're basing the

5 whole thing base on that one number, which

6 is, let's say, to illustrate ten cents per

7 kilowatt hour, but there are millions of

8 Americans that are paying 15 to 18, and there

9 are also millions that are paying five and

10 six.

11 MR. BROOKMAN: Steve Rosenstock.

12 MR. WILKINS: And we'll be able to

13 test that.

14 MR. BROOKMAN: Okay. Or John. Go

15 ahead, John.

16 MR. MANDYCK: I think to some

17 extent we're losing perspective on this. 

18 This is a rule that doesn't go into effect

19 until 2016, and when you figure getting

20 enough of the product on the market subject

21 to the new rule to have much impact, you're

22 talking the biggest effect is 2020 and later.

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1 You can make some broad

2 assumptions based on EIA forecasts of what

3 overall electricity or gas prices will be

4 then, which will be wrong, but we'll at least

5 have some quasi-logical basis on which they

6 came up with it.

7 But the difference between

8 marginal and average price is subject to

9 things like whether you're in a dereg market

10 or a regulated market, the regulatory whims

11 and fads of the day, and we are talking about

12 things that are 14 or 15 years from now.

13 It's also speculative. There's

14 more important parts of the analysis to spend

15 a lot of time on.

16 Thank you.

17 MR. BROOKMAN: Thank you. 

18 Final comment, Steve Rosenstock.

19 MR. ROSENSTOCK: Just, again, just

20 in terms of trends, I think, you know, there

21 was talking about time dependent and time of

22 use, and there are several utilities that are

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1 dealing with residential customers I'll say

2 dead ahead real time pricing and critical

3 peak pricing.

4 What the future rates are going to

5 be, it's anybody's guess when you get right

6 down to it, and I'm not trying to complicate

7 the analysis. I'm just saying that if you're

8 trying to incorporate it, what you have to do

9 is incorporate what I call rate chaos

10 because, you know, there are some years

11 during the summer a residential customer

12 might be paying as much as, you know, during

13 a, quote, peak hour, as much as 50 cents a

14 kilowatter hour, but the next summer even if

15 it's hotter, they might only be paying ten

16 cents a kilowatt hour because of different

17 supply conditions or they've cut back.

18 And on the other hand, as well, is

19 that customers do respond such that that

20 could change the consumption patterns quite

21 dramatically as well. So you know, all of

22 these things could make it quite a bit more

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1 difficult, but let's try to use as good data

2 as we have.

3 MR. BROOKMAN: Did you cover the

4 slide on commercial?

5 MR. ROSENQUIST: Not yet.

6 MR. BROOKMAN: Yeah, go ahead,

7 Gary. Go ahead.

8 MR. FERNSTROM: Gary Fernstrom.

9 One quick, last comment. You

10 asked for recommendations. California uses

11 time dependent valuation. That assigns a

12 marginal cost to a kilowatt hour in a

13 particular climate region for every hour of

14 the year, and that would be a good

15 methodology for getting at this for

16 California anyway.

17 MR. BROOKMAN: thank you.

18 I want to see Slide 62, commercial

19 electricity prices, and then I want to ask

20 you after he's reviewed this and you've

21 commented whether you want to take a break or

22 not.

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1 go ahead.

2 MR. ROSENQUIST: Okay. In the

3 event that we do airlines, the commercial

4 applications of central air conditioners and

5 heat pumps, and it seems like we will be,

6 we're going to have to develop commercial

7 electricity prices, and the commercial

8 electricity prices are at least today much

9 more complex than residential prices. They

10 include demand charges, and typically a lot

11 of tariffs these days characterize those

12 demand charges as what I call hours charges,

13 where the energy use charges are a function

14 of the customer's demand.

15 In any case, we can use electric

16 utility tariffs to characterize marginal

17 electricity prices, and all the tariff is is

18 just the sort of rules that utilities use to

19 calculate the customer bills.

20 In coming up with the marginal

21 price, we determined the bills associated at,

22 let's say, a particular baseline level and

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1 then standard level, and then we come up with

2 the marginal cost savings, and those are

3 calculated by taking the marginal energy

4 price and multiplying it by the energy

5 savings, then adding the demand charges times

6 the demand reduction.

7 Now, this relationship between

8 marginal cost savings and marginal energy

9 price, demand price, energy savings and

10 demand savings have all been rolled up into a

11 relationship for two prior DOE standards

12 rulemakings, one on commercial unitary

13 conditioners and one on distribution

14 transformers.

15 And what it does is it rolled up

16 the demand charges and energy charges into

17 what's called an effective marginal price,

18 which is a function of what's called a

19 marginal load factor. The marginal load

20 factor, which is a value between zero and

21 one, represents the demand savings from the

22 particular efficiency measure to the average

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1 energy savings.

2 So for an end use like air

3 conditioning, which is relatively peaky, the

4 value is like between 0.1 to 0.3. In other

5 words, it means that the demand charges

6 represent more of the cost of the bill than

7 the energy charges, and since demand charges

8 are more costly, that means that the relative

9 marginal energy price is much higher or

10 significantly higher than the average

11 electricity price.

12 So this relationship has been

13 built upon 2004 tariffs, and we can go ahead

14 and use this in the central AC analysis,

15 assuming that prices haven't changed

16 significantly since then.

17 MR. BROOKMAN: Steve Rosenstock.

18 MR. ROSENSTOCK: Steve Rosenstock,

19 EEI.

20 I've looked at the analysis, and

21 I've learned to live with it basically. I'm

22 not exactly totally convinced about it, but

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1 one thing I want to say especially for this

2 rulemaking, and again, it was discussed

3 earlier -- forgive me if I was out -- in the

4 last analysis when there's a nice correlation

5 between SEER and EER both going up at the

6 same time, I don't have a problem with it.

7 But now, based on what I've heard

8 and what I've seen where there's a disconnect

9 between SEER and EER as you get up the SEER

10 chain above 14, 15, et cetera, there is a

11 possibility, a very high possibility if,

12 depending on your modeling, if you say the

13 EER stays flat or decreases as you increase

14 the SEER. It's not marginal demand savings. 

15 It's marginal demand costs to the customer.

16 You have energy savings. You have

17 energy costs go down, but demand costs go up,

18 and I believe that, again, it depends on how

19 you model and what the availability of the

20 equipment is out there, but in the commercial

21 side it's very easy to get energy savings at

22 demand costs by doing this.

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1 Thank you.

2 MR. BROOKMAN: Thank you.

3 MR. ROSENQUIST: And the

4 commercial electricity prices would reflect

5 that. If there wasn't a reduction in demand

6 from a particular SEER level, again, that

7 would be reflected in the commercial prices.

8 MR. ROSENSTOCK: And if there was

9 an increase in demand, would that also be --

10 MR. ROSENQUIST: Yes, certainly.

11 MR. ROSENSTOCK: Okay.

12 MR. BROOKMAN: Let me ask the

13 presenters, Wes and Sriram and Greg. We have

14 at least another hour at this pace, right,

15 before we're concluded? I'm going to suggest

16 we take a short break, and the coffee shop is

17 now closed. However, downstairs on the

18 opposite side of the hall there are a whole

19 bunch of Coke machines, soft drink machines. 

20 Okay?

21 So let's try just for ten minutes

22 so as best we can, which means we're going to

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1 resume at about 3:25.

2 (Whereupon, the foregoing matter

3 went off the record at 3:16 p.m.

4 and went back on the record at

5 3:26 p.m.)

6 MR. BROOKMAN: So Greg is back on. 

7 Let's stay focused here if we can.

8 Okay. Go.

9 MR. ROSENQUIST: Okay. I'm going

10 to move on to the price forecasts. So after

11 we've developed marginal electricity prices

12 for a specific year, then issue then is how

13 do you forecast that out into the future, and

14 the way DOE plans to do that is by using the

15 Energy Information Administration's annual

16 energy outlook.

17 And the AEO has several price

18 projections, but what's typically used in

19 these analyses are the reference case and the

20 high and low growth economic cases.

21 So at this point I'll stop and see

22 if you have any comments on using the AEO to

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1 forecast a marginal price out into the

2 future.

3 MR. BROOKMAN: Ted, and what the

4 supplements or replacements might be. Ted.

5 MR. POPE: I don't know what year

6 AEO that you're using, but I think it was

7 2007 I looked at last, and I may have looked

8 at it wrong, but it looked to me like that

9 forecast showed electricity in real terms not

10 coming back to the cost of 2006 until several

11 -- a decade and a half or two decades in the

12 future, and that just struck a lot of us in

13 California as a fairly improbably outlook,

14 given the probability of cap in trade in that

15 sort of policy framework in the future.

16 MR. BROOKMAN: Thank you.

17 MR. SACHS: Havey Sachs, ACEEE.

18 Given the historical record of the

19 EIA forecasts, I've come to the conclusion

20 that there are others who ought to have their

21 votes weighed as well. There are a number of

22 private sector forecasts. EIA has been

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1 consistently low for the last five years or

2 so, and we would recommend that the

3 department pay attention to forecasts from

4 other nationally acknowledged organizations.

5 MR. BROOKMAN: Thanks, Harvey.

6 Other comments? Because I'm eager

7 for us to keep moving rapidly. 

8 (No response.)

9 MR. BROOKMAN: We're moving ahead

10 then.

11 MR. ROSENQUIST: Okay. The next

12 input is the life cycle cost and payback

13 period analysis that I'll discuss is the

14 discount rate, and discount rates are used to

15 convert streams of annual cost savings to a

16 present value. 

17 And for residential discount

18 rates, the plan is to use a similar approach

19 to what's used for most fairly recent

20 residential product rulemakings that DOE has

21 conducted. It's based upon deriving

22 estimates of the finance cost of purchasing

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1 the appliance, and that finance cost is based

2 upon one of two things, either the cost of

3 debt that's used to purchase the appliance or

4 the opportunity cost associated with equity

5 that can be pulled from things like savings

6 accounts and money market funds to purchase

7 the appliance.

8 The Federal Reserve Board's survey

9 of consumer finances has most of the data

10 that allows DOE to calculate, again, the

11 discount rates associated with the equity and

12 debt that's used to purchase these products.

13 Again, assuming we're going to be

14 doing commercial applications on this

15 product, we'll have to come up with

16 commercial discount rates, and again, the

17 plan is to use a purchase that had been used

18 in prior DOE rulemakings, specifically to use

19 this technique called the weighted average

20 cost of capital, and what that does is

21 determined the equity in debt that firms that

22 purchased this product use to finance the

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1 purchase of acquiring the particular product.

2 MR. BROOKMAN: So comments on this

3 means of estimating discount rates. Steve

4 first.

5 MR. ROSENSTOCK: Steve Rosenstock,

6 EEI. 

7 Just for that last part in terms

8 of weighted average cost of capital, for the

9 last rulemaking, was that basically just for

10 small businesses that most likely are the

11 same entities that are likely to use this

12 product rather than all small versus

13 including weighting in the Wal-Marts and the

14 large entities that are going to have lower

15 costs of capital?

16 MR. ROSENQUIST: The attempt will

17 be made to try to specifically identify the

18 types of firms that buy these products. So

19 they could be small firms, and they could be

20 the large firms that you're talking about

21 like Wal-Mart.

22 Granted we're going to try to be

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1 somewhat consistent with what's being done in

2 the energy use analysis where there a small

3 office prototype is being used to

4 characterize the type of buildings that are

5 using this product.

6 MR. ROSENSTOCK: I was going to

7 say the Wal-Marts aren't going to use these

8 products.

9 MR. ROSENQUIST: Right.

10 MR. ROSENSTOCK: So if you can

11 discount those out of your calculation.

12 MR. BROOKMAN: Tom and then Jim.

13 MR. ROBERTS: Quickly, if you're

14 going to use the incremental, if you're

15 trying to be consistent with your energy use

16 and use incremental, last unit numbers, why

17 don't you do that with credit? Why aren't

18 you using the incremental rate to the

19 consumer?

20 MR. ROSENQUIST: Simply because

21 we just don't have enough data to indicate

22 what the last type of debt or equity based

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1 vehicle that consumers used to purchase the

2 product.

3 So instead we just look at the

4 full breadth of debt and equity holdings that

5 they have to figure out a distribution.

6 MR. BROOKMAN: Jim.

7 MR. CRAWFORD: Well, I'm going to

8 have to record this myself so that I can play

9 it back each meeting. The average consumer

10 debt is what, somewhere now around $8,000,

11 per capita that is carried on short-term

12 credit? That means that we do know the

13 marginal rate. The marginal rate is the

14 price of plastic, and that's what is going to

15 be the cost of this whether they buy it on

16 plastic or whether they buy something else on

17 plastic and use some other resource for this. 

18 The cost for these purchases is the price of

19 plastic.

20 MR. BROOKMAN: Ted.

21 MR. POPE: I'm trying to recall. 

22 Greg do you -- Ted Pope -- do you factor in

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1 default rates on credit cards as a negative

2 interest rate when you're calculating credit

3 card interest rates and in your factor?

4 MR. ROSENQUIST: No, we don't.

5 MR. POPE: Then we would recommend

6 you consider that.

7 MR. BROOKMAN: Thank you.

8 Are there comments on these

9 methods? And also other comments related to

10 discount rates.

11 (No response.)

12 MR. BROOKMAN: Okay.

13 MR. ROSENQUIST: Okay. I'm going

14 to turn it over now to Sriram to talk about

15 the rest of the inputs to the LCC analysis.

16 MR. SOMASUNDARAM: Two other

17 inputs to the LCC analysis. The first is the

18 maintenance repair.

19 Now, the two bullets are the

20 assumptions we are proposing to make, and

21 that is DOE believes that routine repair and

22 maintenance costs may increase with more

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1 efficient equipment simply because it may

2 incorporate technologies that are not

3 currently available and, therefore, may

4 require a more sophisticated maintenance

5 routine to account for that.

6 And the second assumption is that

7 installation costs we assume are not going to

8 change because of higher efficiency

9 equipment, and so on what are those

10 assumptions DOE seeks feedback? Whether it

11 is correct to assume that changes in

12 maintenance repair costs are warranted and

13 whether we can assume that the installation

14 costs would remain the same with high

15 efficiency equipment.

16 MR. BROOKMAN: Yes, Karim.

17 MR. AMRANE: Karim Amrane, HRI.

18 Well, you seek feedback on that at

19 the last rulemaking, and we provided comments

20 to you, and we disagree with this assumption,

21 and you opted to again reject our comments. 

22 So we disagree. Those installation costs

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1 will increase with bigger units just because

2 of the fact that transportation will increase

3 and things like that.

4 So, again, we've made those

5 comments, but you've decided last time to

6 ignore them. So hopefully we'll make those

7 comments again and this time you will accept

8 them.

9 MR. BROOKMAN: Thank you.

10 Harvey.

11 MR. SACHS: Karim, be prepared. 

12 I'm going to largely agree with you.

13 (Laughter.)

14 MR. BROOKMAN: There was a

15 qualifier in that statement.

16 MR. SACHS: For those

17 manufacturers who are not adopting micro

18 channel heat exchangers, but on the other

19 side of this, it's not clear whether the new

20 technologies will lead to higher maintenance

21 costs when those new technologies look to us,

22 from reading the literature and talking to

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1 manufacturers, include a great deal of

2 foregone advanced diagnostics and automated

3 diagnostics. That should lead to smarter

4 machinery that will be to some extend self5 correcting and to some extent will notify the

6 maintenance technician what to bring and what

7 to do.

8 So it's not at all clear that you

9 might not have it backwards.

10 MR. BROOKMAN: Talbot.

11 MR. GEE: I think just a

12 noticeable difference would probably between

13 the last rulemaking and this one when it

14 comes to maintenance cost could be the

15 potential price of refrigerant, especially

16 when you're talking the higher efficiencies

17 that require larger charge sizes and

18 potential scenarios where that refrigerant

19 could possibly even exceed the value of the

20 warranty on the product.

21 MR. BROOKMAN: Gary.

22 MR. FERNSTROM: Gary Fernstrom.

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1 So the higher efficiency equipment

2 we've found, anyway, tends to maintain its

3 actual field performance better over a range

4 of charge, and it would seem to me that as

5 the equipment may lose charge, it may

6 continue to perform fairly well, which would

7 tend to reduce the cost of maintenance.

8 So I think there are indicators

9 going both ways with respect to the cost of

10 maintenance.

11 MR. BROOKMAN: Steve Rosenstock.

12 MR. ROSENSTOCK: Steve Rosenstock,

13 EEI.

14 MR. BROOKMAN: Well, wait, wait.

15 Gary, so how do they address that? 

16 If it's going both ways, how does the

17 department approach that?

18 MR. FERNSTROM: I don't know that

19 I have a specific recommendation other than

20 we think to the maximum extent possible DOE

21 ought to consider field performance issues in

22 its investigation.

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1 MR. BROOKMAN: Does California

2 have that data?

3 MR. FERNSTROM: We do have data on

4 that. John Proctor and others have done

5 extensive study on the state of charge and

6 the opportunity associated with maintenance

7 in the field.

8 MR. BROOKMAN: So you'll send us

9 that?

10 MR. FERNSTROM: So we'll be

11 submitting it.

12 MR. BROOKMAN: Thank you.

13 Steve.

14 MR. ROSENSTOCK: Steve Rosenstock

15 EEI.

16 I know this came up last time, but

17 especially the size issue and space

18 constrained areas, especially in multi-family

19 buildings where HVAC equipment and water are

20 shoved in the smallest closet possible. So

21 if you need to retrofit and there's a bigger

22 size, then the installation costs, you know,

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1 there is a dramatic -- you almost have to

2 build a new closet.

3 I'm not an expert. We have

4 experts here. Hopefully they can provide

5 information to the department about what

6 about those retrofit cases going from ten to

7 13 or 14 in space constrained areas. What

8 kind of impact was it on the installation

9 costs? Hopefully they can provide

10 information to DOE because that will be good

11 data.

12 MR. BROOKMAN: Charlie.

13 MR. McCRUDDEN: Yeah, and we do

14 plan on providing that data. 

15 My question, not a comment, but a

16 question. On the two bullet points you have

17 there, is there a place where you lay out

18 your assumptions or describe your assumptions

19 so that they can be commented on?

20 MR. SOMASUNDARAM: We will when we

21 present the ANOPR analysis.

22 MR. McCRUDDEN: That will layout

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1 the assumptions that you're making already?

2 MR. SOMASUNDARAM: The assumptions

3 and the specific figures, yeah.

4 MR. BROOKMAN: Thank you.

5 Please, Tom.

6 MR. ROBERTS: Quick question about

7 do you have something in your model for --

8 MR. BROOKMAN: This is Tom

9 speaking.

10 MR. ROBERTS: I'm sorry. Tom

11 Roberts.

12 Do you have anything in the model

13 that takes into account the degradation for

14 noncompliant installations, like, for

15 example, now we have a lot. We know they're

16 units, 13 SEER units being installed on

17 improperly matched evaporators, especially to

18 multi-family, to your point, and I don't know

19 how to get data on it, but does the model

20 have a C sub D for noncompliant

21 installations?

22 MR. SOMASUNDARAM: I don't believe

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1 so.

2 MR. ROBERTS: Well, it really

3 should because it's a larger number than a

4 lot of the other things we've discussed.

5 MR. BROOKMAN: Could you estimate

6 that for the department?

7 MR. ROBERTS: I would.

8 MR. BROOKMAN: That would be

9 helpful.

10 MR. ROBERTS: It will be

11 anecdotal, but I'd be happy to.

12 MR. BROOKMAN: That would be okay. 

13 That's a start.

14 Bill.

15 MR. McCULLOUGH: Bill McCullough.

16 On the first comment about the

17 repairs is DOE assumes that the maintenance

18 repair and installation costs will be

19 negligible for more efficient product. What

20 we have seen is higher efficiency product,

21 because of the price of it, is driving more

22 repairs of older product, and also higher

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1 efficiency product, as we've mentioned here

2 many times before, is in many cases much

3 larger and clogged coils have a bigger effect

4 than they would have in the past because it's

5 so important for that difference.

6 And the other one, somebody

7 mentioned micro channel. While that may or

8 may not have made smaller units in R-22, the

9 court is still in session about smaller unit

10 for R-410A, and then if you do have a leak in

11 that, then you're replacing probably the

12 entire coil, which gets back to the first

13 item that the replacement costs would be

14 driven up.

15 MR. BROOKMAN: Jim.

16 MR. CRAWFORD: Jim Crawford.

17 Relative to maintenance costs,

18 part of the analysis will certainly get into

19 the range where modulation will be used. 

20 We'll be using ECMs on blowers, fans, and

21 possibly on compressors, and I would urge the

22 department to go out and get some replacement

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1 part costs of induction motors versus ECM

2 motors, and the conventional contact for

3 mechanical control board versus the

4 electronic control board, and I don't think

5 that you will come to the conclusion that you

6 can service those at the same cost as you can

7 an electromechanical system. 

8 MR. BROOKMAN: Thank you.

9 Equipment lifetime.

10 MR. SOMASUNDARAM: Yes. The last

11 input of the LCC analysis is the equipment

12 lifetime assumption, and we assume that the

13 lifetime will be the same for both baseline

14 and higher efficiency units.

15 In the last rulemaking, DOE used

16 an average lifetime of 18.4 years as the

17 assumption, and DOE seeks comments on this

18 particular input factor.

19 MR. BROOKMAN: Yes, go ahead.

20 MR. CRAWFORD: I think the 18.4

21 years is not supportable, and I think that

22 the Census data and RECS support something

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1 more like about 11 or 12 years, and I think

2 that the model that you're using, as I recall

3 last time you used a model that kind of said

4 they all survived until about 18 years, and

5 then died that way. That's not the way

6 things happen.

7 You have an exponential loss with

8 a constant hazard function. So by the time

9 that you are out to the average life, you

10 have lost just under two-thirds of the

11 population.

12 MR. BROOKMAN: Karim.

13 MR. AMRANE: Karim Amrane, HRI.

14 And, again, this question, we

15 submitted comments last time, and we pointed

16 out that others like ASHRAE, for example,

17 goes for 15 years, something like that, and

18 you rejected our comments, too.

19 So we will be submitting comments

20 again and hopefully this time you will take

21 our comments.

22 MR. BROOKMAN: Looking at this, at

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1 equipment that is at higher levels of

2 efficiency, that doesn't change any of the

3 assumptions and the way it plays out.

4 Yes.

5 MR. MESSMER: Craig Messmer. 

6 I think when you do the equipment

7 lifetime you should also put a factor in

8 there for equipment warranty. It has been my

9 observation that some of these repairs are so

10 expensive and the warranty doesn't justify

11 doing it. So people would rather just

12 replace the whole unit. So I'm not sure if

13 the assumption that we have one compressor

14 change-out in a lifetime is really an

15 accurate way to look at it.

16 MR. BROOKMAN: Okay. Robert.

17 MR. WILKINS: I presume you're

18 getting to the end of the section that had to

19 do with the analysis and the approach.

20 MR. BROOKMAN: Yes.

21 MR. WILKINS: And just one further

22 comment going back to your flow chart, I

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1 think this flow chart is on target for

2 selecting the possibilities when the unit is

3 going to be replaced, especially for new

4 housing. But keep in mind the homeowner has

5 another choice as we've learned in the past

6 two or three years in the replacement market,

7 which is two-thirds of the market, and that

8 is to replace that compressor and not put a

9 new until in there.

10 So I'd urge you to look at not

11 only what's the best option when you replace

12 it, but trade that off against the consumer

13 repairing that old, outdated piece of

14 equipment.

15 MR. BROOKMAN: Harvey Sachs.

16 MR. SACHS: Thank you. Harvey

17 Sachs.

18 I'm awe of the opportunity to sit

19 here with some of the best technical people

20 in the country from industry, as well as the

21 department's analysts. What I have heard

22 today, and particularly in this discussion of

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1 life cycle analysis is an enormous amount of

2 anecdote and opinion, and I submit that the

3 entire life cycle analysis approach is two

4 steel beams floating on quicksand.

5 The department has shown a

6 tendency to use the life cycle analysis as

7 the driving agent to make its determination

8 when there's incredible uncertainty in every

9 one of the assumptions we've made, from

10 service life to the trajectory of electricity

11 prices. Life cycle analysis is the servant. 

12 It's not the master, and I believe the

13 department has an obligation, and this really

14 builds on something that Jim Crawford said,

15 to let us know what window is considered to

16 be equal life cycle costs.

17 We saw in a recent proceeding life

18 cycle cost differences much less than a half

19 percent, $13 on a huge number for all of the

20 options considered. This is meaningless, and

21 I think the department owes itself and the

22 industry some statement on how life cycle

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1 analysis is used because it's getting in our

2 way when we use trivial differences to make

3 important judgments, trivial and

4 unsubstantiatable differences that are

5 compounded through the analysis to draw

6 important legal conclusions.

7 Thank you.

8 I think Jim would have said the

9 same thing, but with different worlds. No?

10 MR. BROOKMAN: No need for you to

11 say the same thing.

12 MR. CRAWFORD: As long as you

13 weren't referring to my stuff as the

14 anecdotal.

15 (Laughter.)

16 MR. BROOKMAN: Okay. So we got

17 good comment on equipment lifetime. Are we

18 ready to move on? Here we go.

19 MR. SOMASUNDARAM: So the last and

20 final step is shipments and NIA analysis that

21 Greg will talk about.

22 MR. ROSENQUIST: Okay. We come to

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1 the last two components of the ANOPR

2 analyses, which are, again, the shipment

3 analysis and the national impact analysis.

4 Both outputs from the life cycle

5 cost analysis and life cycle cost and payback

6 period analysis and the shipment analysis fed

7 into the national impact analysis.

8 First, let's start with the

9 shipments analysis. Its purpose is simply. 

10 It's basically to quantify the impact of

11 standards on product shipments. The method

12 relies on developing a shipments model, which

13 relies on various data sources, but most

14 importantly historical shipments data.

15 The model only considers shipments

16 of the covered products, that is, of central

17 air conditioners and heat pumps, and again,

18 this shipment model that's developed is

19 intended to forecast shipments over the

20 forecast period from the assumed effective

21 date, 2016, out 30 years to 2046.

22 The first part of the shipment

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1 analysis is to develop what's called a base

2 case shipments forecast, and this is the

3 shipments forecast when no new standards are

4 adopted.

5 And for residential shipments, we

6 characterize two markets primarily for where

7 shipments are going to, product sales to new

8 construction and product sales to units that

9 have failed and need replacement. DOE will

10 use this general approach to characterize the

11 shipments to split systems into single packet

12 systems.

13 For new construction systems, the

14 basic method is to take housing starts and

15 multiply it by the saturation rate or product

16 ownership rates in that new housing. The

17 forecasts of new housing come from the Annual

18 Energy Outlook, while the saturation rates

19 come from the U.S. Census Bureau in a report

20 called "Characteristics of New Housing."

21 Both sets of data are at the

22 national level and also disaggregated down to

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1 the census region level. Census regions are

2 the four main regions of the U.S., the

3 northeast, the midwest, the south and the

4 west, and so at least for new construction we

5 can characterize shipments possibly down to

6 the regional level, that census regional

7 level.

8 For replacement shipments the

9 methodology is to use a retirement function

10 that's built on the lifetime estimates in the

11 LCC and payback period analysis and apply

12 that to an existing stock of central air

13 conditioners and heat pumps, and that

14 existing stock is built up from historical

15 shipments data. So we will be asking

16 stakeholders, particularly industry, for that

17 historical shipments data.

18 And since we're intending to do

19 this at the product class level, we're hoping

20 to receive that shipments data at the product

21 class level. And because we also may need to

22 do it at the census region level, we'll also

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1 be asking for that data at the census region

2 level as well.

3 The next step then is to finally

4 calibrate the model, and we'll be looking at

5 the historical forecasts or what I like to

6 call back casts to the actually historical

7 shipments data, and any discrepancy will be

8 attributed to existing households that don't

9 already own the appliance. And so we will be

10 looking at trying to develop an historical

11 adoption rate in these households, and then

12 once we do, we'll carry that forward to

13 forecast future shipments.

14 Now, one thing that isn't in this

15 list that's come up in the course of today's

16 discussions is the issue of how standards

17 will impact replacements versus repairs, and

18 again, just to maybe hold off on any

19 questions you have on that topic. I'll

20 hopefully get to that on the next slide.

21 MR. BROOKMAN: Jim.

22 MR. CRAWFORD: Jim Crawford.

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1 You mentioned the use of census

2 regions, and that shows up several times in

3 the framework document. The census regions

4 are nowhere near fine grained enough if

5 you're going to start trying to establish

6 regions along state boundaries.

7 As you said, there are four census

8 regions. There are 50 states, and there's no

9 reason a priori to assume that the census

10 boundaries are appropriate boundaries for

11 regions for HVAC.

12 MR. BROOKMAN: Let's let him

13 finish and then we'll take every comment

14 following the next slide.

15 MR. ROSENQUIST: This continues

16 the discussion of base case shipments

17 forecast, but again, for the commercial

18 sector, and again, this is under the

19 assumption that the analysis will have to be

20 done for commercial applications of central

21 air conditioners and heat pumps.

22 The methodology for calculating

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1 commercial shipments is basically identical

2 to that for residential, and I don't know if

3 I needed to go through each one of these

4 bullets, but it's basically, again, to

5 characterize the shipments, the new

6 construction, determine the shipments as

7 replacements to failed units, and then also

8 characterize the shipments to existing

9 commercial buildings that don't already have

10 the appliance.

11 Finally, we come to the other

12 product classes, which aren't the primary

13 ones, which aren't the split systems and

14 single package systems, but the small duct,

15 high velocity systems in the space

16 constrained units. And here the plan is not

17 to use a detailed shipments model that I just

18 described, but just extrapolate off

19 historical trends because the assumption here

20 is that the shipments are not that great.

21 And of course, to be able to do

22 that, we're going to need that historical

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1 shipments data from stakeholders.

2 So at this point there's a request

3 for comment or actually a request for data

4 from stakeholders for historical shipments

5 data down to the product class level, and

6 also down to the census region level, and if

7 needed, to go down to even a finer level of

8 disaggregation, possibly to the state level.

9 MR. BROOKMAN: So has AHRI

10 supplied that information previously? And

11 can you do it again this time?

12 Karim.

13 MR. AMRANE: Karim Amrane, HRI.

14 I believe we did supply some of

15 the information in the past and probably we

16 will. Again, we'll have to consult with the

17 membership first, but I don't see why we

18 shouldn't.

19 No, you're asking much more

20 information than you used to in the past. As

21 far as the product classes, duct through the

22 wall, and small duct, high velocity system,

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1 I'm not sure that we have historical data. 

2 They were lumped within the rest before. So

3 I don't know. It's something we'll have to

4 look into and see whether we can do it.

5 Now, the regional data, it's also

6 something we'll have to see what we can do

7 here.

8 MR. BROOKMAN: Okay. Yes, please,

9 Talbot.

10 MR. GEE: I would also add --

11 Talbot Gee -- I'd add another level of what

12 we're going to have to help supply, and not

13 to speak for the contractors, but

14 contractors, too, because shipments simply

15 out of manufacturer docks even to where they

16 get shipped to still won't answer your

17 question. You're going to need to know

18 final, if you can, where units are going, and

19 then also have some account, frankly, for the

20 stuff that gets made and purchased, but

21 doesn't actually ever end up getting

22 installed, too.

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1 MR. BROOKMAN: Paul.

2 MR. DOPPEL: Paul Doppel. We're

3 going to try to get some information on the

4 ductless products so that we can show that

5 we're a little bit bigger than a small

6 fraction of the market.

7 MR. BROOKMAN: Good. Thank you. 

8 That's helpful.

9 Okay. Additional comments on

10 this, on the shipments forecast and the

11 approach?

12 (No response.)

13 MR. ROSENQUIST: Okay. I'll go on

14 to the next slide, which is after we've

15 developed our base case shipments forecast,

16 we have to do it now for the standard case

17 shipments forecast, and that's the case where

18 energy efficiency standards are imposed on

19 the product.

20 The exact same data is used to

21 develop the standards case shipments

22 forecast. With the exception of one

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1 important exception, here we try to take into

2 account the effect that standards have on

3 purchase price and also on operating costs to

4 figure out the sensitivity of sales, of

5 purchases of this equipment based upon what

6 the standards do to purchase price and what

7 they do to the operating cost.

8 And typically what we try to do is

9 we search the literature to see whether or

10 not there's any information on the

11 sensitivity to purchase price and operating

12 costs, but many times it's very difficult to

13 get that information. There's not a lot of

14 data out there.

15 So DOE may for this rulemaking

16 forecast specific shipments drops associated

17 with specific standard levels, and of course,

18 we'll be looking for input from stakeholders

19 on that possible approach.

20 The other thing that will be

21 considered in coming up with these shipments

22 forecasts is the effect of market pull

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1 programs, things like manufacturer tax

2 credits, consumer tax credits, and the Energy

3 Star program.

4 And finally, for heat pumps and

5 only for heat pumps, DOE will consider fuel

6 and equipment switching. So if a standard is

7 determined to drop the sales of heat pumps,

8 what we plan to do is to allocate that drop

9 in sales to increases in shipments of fossil

10 fuel fired furnaces, as well as electric

11 resistance furnaces.

12 Now, we realize that this is sort

13 of a maximum impact situation. But with this

14 maximum scenario what we want to do is carry

15 this forward into the national impact

16 analysis to see what sort of maximum effect

17 could happen to the national energy savings

18 associated with a particular heat pump

19 standard level and also with the effect on

20 national consumer economic benefits.

21 Now, again, one thing I haven't

22 covered in these bullets is the possible

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1 effect of standards on extending the repair

2 of units that would have failed if a new

3 standard hadn't been imposed, and this is

4 something that we considered in the last

5 rulemaking, and we made some very basic

6 assumptions about that.

7 We assumed a particular

8 sensitivity to purchase price, and we also

9 assumed that the equipment would last another

10 six years after the repair. So if we're

11 going to incorporate that into our models, we

12 would certainly like input on sensitivity to

13 purchase price and operating cost savings, on

14 a consumer's decision to extend the unit if

15 it was going to fail, but they choose to

16 repair it instead, and how much longer that

17 unit would last.

18 MR. BROOKMAN: Steve Rosenstock.

19 MR. ROSENSTOCK: Steve Rosenstock,

20 Edison Electric Institute.

21 I think for this one you are good

22 that you're trying to look at substitution

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1 and repair. So based on what I heard

2 earlier, I think you might need to track for

3 central air conditioners and heat pumps just

4 room air conditioner sales. If people are

5 substituting room air conditioners for

6 central air conditioners because they think

7 it's too expensive to repair or replace, if

8 that's happening, I think DOE needs to

9 account for it somehow.

10 And then there was talk of the

11 hybrid systems. Again, I don't know what

12 percentage of sales those are in certain

13 regions, but, again, I don't know in terms of

14 substitution, but they might play a role.

15 And then in terms of the

16 resistance, I'm pretty sure I remember from

17 last time in Florida it's not necessarily

18 furnaces. It can be baseboard heat or even

19 just basically room heaters, portable room

20 heaters just like I'll all it the warm room

21 effect, that maybe especially in Florida. 

22 They just heat up one or two rooms, and

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1 that's all they care about in the wintertime

2 when they have the freak cold snap.

3 So I'm just saying that's another

4 possible substitution in certain parts of the

5 country that you need to look at. So, yeah,

6 and you have some data now. I mean, I think

7 you're going to get data from what happened

8 starting in 2006 in terms of some of the

9 substitutions. So you can use that as well.

10 MR. BROOKMAN: Robert.

11 MR. WILKINS: Yes. Robert

12 Wilkins, Danfoss.

13 2006 central air conditioning

14 sales in the U.S. dropped by two million

15 units a year and remained flat in 2007. At

16 the same time, room air conditioning sales

17 increased by two million units a year and

18 remain flat in 2007.

19 So you've got curves that are

20 consistently going along together that

21 sharply diverged in 2006.

22 The other interesting statistic

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1 is, and several of my colleagues and the

2 equipment manufacturers have told me very

3 consistently that sales of replacement

4 compressors have jumped from 25 to 30 percent

5 in the year 2006.

6 So there's strong evidence that

7 people aren't replacing them. They're

8 repairing them or they're working around

9 them, and I think that simply needs to be

10 included in the evaluation.

11 MR. BROOKMAN: Thank you.

12 MR. CRAWFORD: Doug, just very

13 quickly.

14 MR. BROOKMAN: Yeah.

15 MR. CRAWFORD: Jim Crawford.

16 If you're willing to replace

17 parts, there's no intrinsic life limit to a

18 condensing unit. Every part of a condensing

19 unit is replaceable, the same as an

20 automobile. I mean, as long as the thing

21 doesn't rust out, you can just keep on

22 replacing the compressors, motors, fans,

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1 coils, cabinet panels, anything.

2 MR. BROOKMAN: Okay. Thank you.

3 Additional comments on standards

4 impacts on shipments?

5 MR. ROSENQUIST: This slide is

6 just a couple of items from the framework

7 document they were looking for input on. The

8 first is that impact of standards on

9 shipments. That's a very important aspect of

10 doing the standard case shipments forecast,

11 and so as part of the preliminary

12 manufacturer impact analysis, there will be

13 requests made to manufacturers on what they

14 believe the impact of standards would be on

15 shipments.

16 And of course, DOE will also

17 accept any input from any other stakeholders

18 that want to chime in on that subject.

19 The other item is the effect of

20 market pull programs at affecting change in

21 the market and promoting more efficient

22 central air conditioners and heat pumps and

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1 how that may play in a situation where you

2 have new standards.

3 MR. BROOKMAN: Harvey Sachs.

4 MR. SACHS: Harvey Sachs.

5 One difference of this standard

6 relative to the 2006 transition is that it

7 will take place after the refrigerant

8 transition to 410A or other alternatives. As

9 I understand it, these require a very

10 different class of refrigerant lubricants,

11 and consequently it would seem to me the

12 department would want to pay attention to the

13 feasibility of doing component replacements

14 rather than system replacements when you're

15 trying to move from an R-22 system that may

16 well have been capped to the expansion device

17 to a 410A system that is using different

18 lubricant, using different refrigerant and

19 quite likely using different controls.

20 I don't have the answer, but I

21 think it's a study area that's very germane

22 given the concerns that have been brought up

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1 about the replacements following 2006.

2 MR. BROOKMAN: Thank you.

3 Kyle.

4 MR. GILLEY: Just one echo of

5 concern, to address a concern in one of

6 Harvey's statements. That was that we would

7 fully transition to 410A, and that would be

8 different from the last go-around. That's

9 not necessarily the case, given the

10 uncertainties around climate change

11 legislation and potential regulation. We

12 could definitely be going through another

13 refrigerant change at the same time this new

14 rulemaking is effective.

15 MR. BROOKMAN: Thank you, Kyle.

16 MR. SACHS: Thank you.

17 MR. BROOKMAN: Any comments on

18 market pull programs?

19 MR. SACHS: We support them.

20 (Laughter.)

21 MR. GILLEY: Well, and a passing

22 through on them is Robert just gave you some

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1 numbers as what's happened to the industry

2 since 13 SEER. In effect, those same pool

3 programs were in place during that

4 transition.

5 MR. BROOKMAN: Okay. 

6 MR. ROSENQUIST: Okay. I'll now

7 talk about the national impact analysis, and

8 the purpose of this is to determine the

9 national energy savings and the national

10 consumer economic benefits or burdens from

11 the energy efficiency standards are going to

12 be analyzed.

13 The method is developed from

14 looking at annual time series of annual

15 energy consumption for the stock of

16 appliances that are in the market and also

17 looking at the annual time series of the

18 associated operating costs and increased

19 equipment cost of that stock.

20 What the model does then that we

21 use is it accumulates all of those values,

22 and then it takes the difference between a

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1 base case and a standards case to come up

2 with the impact from the standards case.

3 The model that we developed for

4 the NIA utilizes the shipments model that I

5 talked about earlier. Again, that shipments

6 model provides us with a shipments forecast,

7 and again, from those forecasts we build up a

8 stock or inventory of units which we track by

9 vintage.

10 Another aspect of it is that we

11 utilize many inputs from the LCC and payback

12 period analysis, specifically the per unit

13 total installed cost increase due to a

14 particular efficiency standard as well as the

15 per unit operating cost savings and per unit

16 annual energy savings.

17 We take those per unit values and

18 then aggregate the up to national values in

19 the NIA analysis. 

20 We report energy savings in terms

21 of quads or quadrillion BTUs or ten to the

22 15th BTUs, and while in the LCC analysis

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1 things are done at the site, that is, where

2 the unit is being used, at the particular

3 household or building, for this analysis we

4 do things at the source or at the primary,

5 which takes into account the transmission and

6 distribution of the electricity, as well as

7 the efficiency of the power plants.

8 National net present value is

9 determined in dollars, and again, it's an

10 annual time series of the effect, and what we

11 do is we use discount rates or discount

12 factors to get those annual time series of

13 money back down to a present value.

14 This flow diagram gives you a

15 conceptual idea of what we do when we

16 calculate the national energy savings. We

17 start with the shipments analysis, which

18 provides us with base case and shipments

19 case, shipments projections.

20 In the case of the base case,

21 those shipments projections are used to build

22 up, again, a stock or inventory of air

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1 conditioning and heat pump units that are

2 serving the nation, and we calculate the

3 associated annual energy consumption of that

4 stock for every year from the assumed

5 effective date of the standard all the way

6 out to 2046.

7 We do the exact same thing on the

8 standards case side, and then we assimilate

9 both the base case and the standards case

10 energy consumption, apply our site to source

11 conversion factors to convert the site energy

12 consumption into source energy consumption,

13 and the difference between the two is the

14 national energy savings due to the standard.

15 This flow diagram gives you,

16 again, a conceptual framework of what we do

17 when we calculate the national net present

18 value, and again, starting with the shipments

19 analysis, we use it to provide us with both

20 base case and standards case forecasts of

21 shipments.

22 In the case of the base case, we

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1 use that, again, to build up the stock of

2 units, and we calculate the associated

3 electricity cost, the associated repair and

4 maintenance cost, and also the equipment cost

5 associated with that stock.

6 We do the exact same thing on the

7 standards case side. We then accumulate the

8 energy electricity cost and maintenance costs

9 associated with that stock for both the base

10 case and standards case and take the

11 difference between the two, and that gives us

12 our operating cost savings to the nation from

13 the standard.

14 We do the same thing with the

15 equipment cost, and so the difference between

16 the standards case and the base case is the

17 increase in equipment cost to the nation of

18 the particular standard that we're looking

19 at.

20 We apply discount rates, of

21 course, to get this back down to a present

22 value, and we take the difference between the

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1 two. If the operating cost savings are

2 higher than the equipment cost increases,

3 we've got a net present value which is a net

4 benefit to the nation. If it's ten other way

5 around where the installed costs are greater

6 than the operating cost savings, then we have

7 a net burden to the nation from the standard.

8 This next slide talks about a very

9 important input to the analysis, which is the

10 shipment weighted efficiency data, and the

11 reason why it's important is because many of

12 the inputs to the analysis coming from the

13 life cycle costs and payback period analysis

14 are dependent upon efficiency.

15 So in the case of determining

16 national energy savings, we rely on the LCC

17 to give us the per unit annual energy

18 savings, and again, that's dependent upon the

19 efficiency of the product.

20 The same thing with the

21 determination of NPV, which is based upon the

22 per unit installed cost and the per unit

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1 operating cost savings. Again, both of those

2 are dependent upon efficiency.

3 In the past we've gotten

4 historical trends of efficiency from AHRI,

5 and these trends, these historical trends,

6 are used to forecast what happens in the base

7 case, that is, the case without standards, to

8 figure out how the various per unit energy

9 consumptions and per unit costs change in the

10 future, again, with efficiency.

11 And you can see this figure here

12 shows you the historical data for unitary air

13 conditioners as a whole and heat pumps as a

14 whole. We're hoping to get this type of data

15 at the product class level and also hoping to

16 get it at some level of regional

17 disaggregation.

18 And this next slide talks about

19 the impacts of standards on efficiency,

20 particularly the impacts of standards on the

21 distribution of product efficiencies, also

22 called the market share efficiency data, and

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1 again, we use this historical market share

2 efficiency data to tell us how a particular

3 standard will impact product efficiency

4 distributions in the year the standard takes

5 effect.

6 So what you see here are two

7 figures, which correspond to two types of

8 scenarios that DOE has used in the past. The

9 first on the left is the roll-up scenario,

10 and what you see there with the blue bars is

11 the current distribution of products

12 according to the number of models available.

13 And under a roll-up scenario, what

14 happens is that that 13 SEER product rolls up

15 to the standard that I'm hypothetically

16 considering here, a 14 SEER. So you see that

17 big bump-up as indicated by the yellowish18 green bar.

19 Under the roll-up though, none of

20 the products after 14 SEER are affected. In

21 the shift scenario what happens is you

22 basically shift your current distribution,

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1 reorient it, if you will, to around the new

2 minimum efficiency standard. In this case

3 we're looking at a hypothetical of 14 SEER.

4 So you're retaining the same

5 efficiency distribution. Now, you may ask

6 what's so important about this. Well, the

7 resulting shipment energy efficiency that you

8 get from these two scenarios has a definite

9 impact on what you estimate in terms of the

10 national energy savings and the impacts of

11 the consumer economics from that standard.

12 And then after we've developed the

13 impact in the year that standards become

14 effective, then we forecast that out into the

15 future basically with the same efficiency

16 trend that we use for the base case.

17 MR. BROOKMAN: Robert.

18 MR. WILKINS: The data I've seen

19 from the standards in the early 1990s was the

20 first case happened immediately in that you

21 had the -- what did you call it? -- the roll22 up phenomenon to take place, but then after a

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1 year or two it tended to spread back out

2 again, if I recall, Karim.

3 And I suspect though that it's

4 actually the roll-up case because we were in

5 an increasing mode anyway, and after a year

6 or two of being under the 10 SEER, it started

7 moving on up following its natural market and

8 technology shift patterns.

9 MR. BROOKMAN: Thank you.

10 MR. WILKINS: For what it's worth.

11 MR. BROOKMAN: Thank you.

12 Yes, Steve Rosenstock.

13 MR. ROSENSTOCK: Steve Rosenstock,

14 EEI.

15 And I mentioned this last time

16 because as I recall there was the pipeline

17 effect of the ones that met the previous

18 standard. Back then it was like eight SEER

19 and then it was bumped up to ten SEER. Even

20 after 1992, there were still eight SEERs

21 being sold on the market for X months or X

22 years after the standard took effect. So

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1 that also had an impact on any sort of

2 national energy savings.

3 It has happened twice, you know. 

4 Ten SEERs were sold after January of 2006. 

5 It did happen. That's a fact. So, again,

6 this time I think there should be some sort

7 of modeling to the effect that I'll just say

8 pipeline effect or time lag effect for the

9 units that met the previous standard being

10 sold after the standards become effective.

11 MR. BROOKMAN: Harvey.

12 MR. SACHS: I'd just like to take

13 a slightly different perspective on these

14 excellent, illustrative graphics. The left15 hand diagram roll-up would probably be called

16 by some people the co-modification model of

17 the market's transition. The one on the

18 right is what I consider to be one of the

19 principal goals of the voluntary programs, to

20 maintain the pull for the higher efficiency

21 products, the differentiated products.

22 Now, I'm not sure exactly how that

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1 folds into your analysis, Greg, but it is

2 something I will probably be using in our

3 community to illustrate one of the goals.

4 MR. BROOKMAN: Okay. Thank you.

5 Additional comments on these two

6 scenarios? Yes, please.

7 MR. BURT: Lane Burt, NRDC.

8 I would just also like to point

9 out that the time frame when this standard is

10 going to take into effect is going to be a

11 good deal different than previous standards,

12 and you have a lot of pressures that are

13 going to -- we talked about the pressures

14 that forced the roll-up scenario. There's

15 also going to be some corresponding pressures

16 that will force it toward the shift scenario

17 in terms of primary legislation and increased

18 market pull programs.

19 MR. BROOKMAN: Thank you.

20 Yes, please, and your name for the

21 record.

22 MR. BERGT: Yes. Carl Bergt.

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1 Question: how the standards

2 impact or shipment analysis that may take

3 into account room air conditioners and

4 replacement air conditioners. What I don't

5 see is when you do your national energy

6 savings document, what's the negative impact

7 of that. It's like you've totally discounted

8 that impact, the negative impact, that those

9 would have because you only look at what was

10 shipped, not actually what the impact is on

11 energy.

12 MR. ROSENQUIST: Yeah. I mean,

13 first of all, let me talk about the possible

14 equipment switch to room air conditioners. 

15 If that actually does happen, if we get

16 inputs from stakeholders who say that will

17 happen, then that will be modeled and the

18 energy consumption associated with those room

19 air conditioners will be taken into account.

20 So that will be a drag, in other

21 words, on the national energy savings that

22 you would get from a prospective standard.

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1 MR. BROOKMAN: Tom.

2 MR. ROBERTS: Yes, just to

3 clarify, I think we heard that very clearly,

4 that room air sales are up the two million,

5 that central systems were town two millions. 

6 You're saying that needs to be submitted in

7 writing?

8 MR. ROSENQUIST: Well, of course,

9 we're going to have to look at the data

10 ourselves, as well, right? And since it's

11 now part of the official record, it's going

12 to be part of the public transcript. It

13 becomes an official comment.

14 But anything you could do to

15 clarify that particular comment further would

16 be greatly appreciated.

17 MR. BROOKMAN: Okay. Thank you.

18 So additional comments on these

19 two scenarios? And I want to refer also to

20 the next slide.

21 Jim.

22 MR. CRAWFORD: In the discussion

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1 associated with, oh, 79, I guess it was, and

2 some of those earlier charts, Greg was

3 describing a level of disaggregation of data

4 that I don't think he's going to get because

5 I think I got my product class, my efficiency

6 level. It didn't say my capacity, but you

7 can't go very far without that by geography.

8 That level of data may or may not

9 exist in the industry, but once that data is

10 available, it tells altogether too much to

11 competitors about what's happening in the

12 market, and that's a level of disaggregation

13 that you're just not going to get. I don't

14 think I could.

15 MR. BROOKMAN: Karim.

16 MR. AMRANE: Karim Amrane, AHRI.

17 Again, as I said, subject to

18 approval from the members, this is something

19 that we might or might not, you know,

20 proceed. I mean, I think we will have to

21 discuss it amongst ourselves and see whether

22 it's something that we can.

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1 MR. ROSENQUIST: I mean, if you

2 can't provide us with actual data, then maybe

3 some guidance as to maybe if we do things

4 regionally, for example, how things may shift

5 between different regions of the country.

6 MR. BROOKMAN: So scan through. 

7 Greg, do you want to just set up 10-1, 10-2

8 and 10-3?

9 MR. ROSENQUIST: Yeah, yeah. Item

10 10-1 talks about, again, our request for

11 historical shipment weight efficiency data by

12 product class and by some level of regional

13 disaggregation, and also if there's any

14 market share data out there as well, it can

15 even be provided at an aggregate level for

16 all product classes. That better than

17 nothing would be greatly appreciated.

18 Item 10-2 talks about comments

19 that we would like to have on, you know, the

20 use of these different scenarios to --

21 MR. BROOKMAN: We have had comment

22 on those already.

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1 MR. ROSENQUIST: Okay, and

2 finally, just any general comments you might

3 have on the NIA analysis approach.

4 MR. BROOKMAN: So are there

5 additional comments on the NIA analysis, the

6 approach therein?

7 (No response.)

8 MR. BROOKMAN: Okay. I don't see

9 any. 

10 Wes handed me a note about 15, 20

11 minutes ago suggesting that maybe on this

12 occasion since people are starting to leave

13 and it's 4:20 in the afternoon, that we might

14 be able to skip the Notice of Proposed

15 Rulemaking analyses today. Do you want to

16 talk about that?

17 MR. ANDERSON: This is Wes

18 Anderson, DOE.

19 If everybody is in agreement with

20 this, sine the ANOPR is in 18 months and the

21 NOPR is in 2010, that we skip a detailed

22 discussion on that and table that for the

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1 ANOPR presentation. If someone has some

2 comments on the different subject matters, if

3 they'd turn to Slide 83, page 42, and if you

4 haven't spoken yet on those and you want to

5 speak on those particular issues, we can take

6 that time now to do that.

7 First, let me ask: are we in

8 agreement with that?

9 MR. BROOKMAN: Since there's so

10 much time looking ahead before we get to the

11 NOPR analyses and there will be other

12 workshops.

13 MR. SACHS: There's one exception.

14 MR. BROOKMAN: Harvey Sachs.

15 MR. SACHS: Environmental impact

16 analysis, do you want comments on issues like

17 that? I'm sure we're going to go through the

18 whole number.

19 MR. ANDERSON: Yeah, instead of

20 going through, if you want to make comments

21 on the particular bullet items or the

22 chevrons on the page, I would say go ahead

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1 and make your point now, if everybody's in

2 agreement with trying to end this early

3 without going into detail with the NOPR.

4 I don't want to force upon the

5 public that we're trying to skip over your

6 issues.

7 MR. BROOKMAN: Yes, Talbot.

8 MR. GEE: Another suggestion, that

9 manufacturer impact analysis just be adjusted

10 to channel impact analysis.

11 MR. BROOKMAN: Okay. Yeah, there

12 was suggested that it become market impact

13 analysis to reflect the entire distribution

14 chain.

15 Please, Lane.

16 MR. BURT: Lane Burt.

17 To speak about the environmental

18 impact analysis and specifically the

19 monetization of CO2 question, there really

20 needs to be considered in terms of the

21 financial side in the life cycle costs and

22 net present value. We've commented on this

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1 before, but we see that by the time this

2 ruling takes effect, there's going to be a

3 price on carbon, and refusing to set a price

4 on carbon and put it into the analysis is

5 effectively speculating a zero cost, which is

6 going to be very incorrect.

7 MR. GILLEY: I would just ask for

8 support from our friends from NRDC that,

9 again, this makes the case that there needs

10 to be some balance in this rulemaking to what

11 we do from a refrigerant standpoint. If

12 you're asking for that on CO2, there needs to

13 be some consideration given in the process of

14 this rulemaking to the impact climate change

15 is going to have on the refrigerants we use.

16 MR. BROOKMAN: So that was Kyle

17 speaking, and now here to Harvey.

18 MR. SACHS: We look forward to

19 those conversations. I think our record is

20 pretty clear in terms of T-WEE (phonetic) and

21 concepts like this. We very much look

22 forward to that.

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1 MR. BROOKMAN: Don Brundage.

2 MR. BRUNDAGE: Just make a comment

3 that while it is likely there would be

4 factors like this included, you're changing

5 parts of analysis and not others, and the

6 Annual Energy Outlook makes assumptions of no

7 changes in regulation after the date that it

8 is issued.

9 So making those sorts of changes

10 unless it's just separately in an

11 environmental impact, you need to be careful

12 that you're not inconsistent in the way

13 you're -- if you did just an environmental

14 impact, it's one thing, but to put it in the

15 depths of a study, you're running into

16 inconsistencies because the other things in

17 the forecast are not done that way.

18 MR. BROOKMAN: Okay. Thank you.

19 Tom.

20 MR. ROBERTS: And one quick thing

21 will be the carbon equivalent monetization of

22 the increased cost of the carbon footprint of

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1 the higher efficiency units on the credit

2 side.

3 MR. BROOKMAN: Thank you.

4 Steve.

5 MR. ROSENSTOCK: A couple of

6 things since we're skipping ahead. Twenty7 six states have RPS mandates. Four states

8 have RPS goals. That's probably going to

9 increase over time. So that should be

10 accounted for in this analysis.

11 Number two, there's another slide

12 since we're --

13 MR. BROOKMAN: Yes.

14 MR. ROSENSTOCK: -- going ahead to

15 utility impact analysis. It says method,

16 energy savings translated to a reduction in

17 the electrical demand faced by the utility

18 systems over time. If EERs try to go down,

19 no way to do that. I'm sorry. That's a

20 totally incorrect modeling, totally incorrect

21 analysis.

22 Again, based on if EERs stay flat

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1 or go down.

2 MR. BROOKMAN: Okay.

3 MR. ROSENSTOCK: You can't do

4 that. I'm sorry.

5 MR. BROOKMAN: Okay. Thanks,

6 thanks.

7 So, yeah. I appreciate those of

8 you taking advantage of this opportunity to

9 talk about issues that matter to you, and

10 let's make sure everybody gets a chance to do

11 that. So any other comments that are

12 presently in the slides incorporated in the

13 NOPR section?

14 Wes.

15 MR. ANDERSON: I just want to make

16 clear that even though we did not cover this

17 -- this is Wes Anderson, DOE -- that we did

18 not cover this, you can still submit your

19 comments to the questions that are in the

20 framework documents.

21 MR. BROOKMAN: Their detailed

22 comments.

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1 MR. ANDERSON: Their very detailed

2 comments. We want as much detail as

3 possible.

4 Thank you.

5 MR. BROOKMAN: Okay. So the last

6 item on the agenda, we still want to provide

7 an opportunity for anybody to raise an

8 additional issue, perhaps something you

9 didn't cover today. Anything else left over

10 that needs to be stated at the end of the day

11 here today?

12 Steve Rosenstock.

13 MR. ROSENSTOCK: Again, Steve

14 Rosenstock.

15 Again, I apologize. I was out of

16 the meeting. Any change on the due date for

17 comments? July 31st?

18 MR. ANDERSON: This is Wes

19 Anderson, DOE.

20 To reiterate Ron's, let's go to

21 the last page. Everyone has the handouts.

22 MR. BROOKMAN: And since some of

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1 you are heading for the door, let me note

2 also that past after the packet is the

3 evaluation form. Please take a minute to

4 fill it out. The department reads them

5 carefully.

6 MR. ANDERSON: We have

7 instructions on how to submit comments. I

8 talked about those earlier. And the date has

9 changed to July 31st, 2008, for deadline on

10 comments.

11 MR. BROOKMAN: Ron Lewis also

12 requested if it's possible to send them in

13 not all on July 31st, that would be a good

14 thing. A whole rath of comments come in, and

15 so they can start being read as soon as they

16 show up at DOE.

17 Yes, Karim.

18 MR. AMRANE: Karim Amrane, HRI.

19 I guess I have a question about

20 process here. I mean, what's going to happen

21 between now and the ANOPR? What, a year, 

22 15 months more time lag?

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1 MR. ANDERSON: Yeah.

2 MR. AMRANE: Is there any plan

3 from DOE to interact with stakeholders to see

4 where you are? I don't know. I mean, I

5 think we need to.

6 MR. ANDERSON: Right now we're

7 going to rely on the comment period, and if

8 we do have questions or you have questions

9 for us, please submit those as well on the

10 process. We will address the comments at

11 this point, and there will be some

12 interaction.

13 MR. CHRISTOPHER: Mike Christopher

14 with Navigant Consulting.

15 Karim, there is at least the

16 preliminary manufacturer impact interviews. 

17 So that's an opportunity to work face to face

18 with manufacturers, and we do make an effort

19 to ask.

20 MR. AMRANE: Karim Amrane again.

21 I think I'm find with that, but I

22 think in addition to that, I think I would

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1 like to suggest that maybe we do halfway

2 through have maybe like a form conference

3 call. I don't know. Something we did in the

4 past on the commercial side where DOE will

5 update us on what we have done.

6 I think it would be very helpful

7 to everybody.

8 MR. BROOKMAN: Thanks for that

9 process note. Thank you.

10 Wes.

11 MR. ANDERSON: This is Wes.

12 I want to hold off on committing

13 right now. We'll get back to you on that. 

14 If you want to submit that as a comment, but

15 we'd like to keep all of our communications

16 open to the public, not just to the

17 manufacturers and that kind of thing. So

18 that's one of the reasons why we're hesitant

19 to talk.

20 MR. AMRANE: I was not suggesting

21 just for the manufacturers. I was suggesting

22 for the entire group.

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1 MR. BROOKMAN: Okay. Thank you.

2 Yes, Don.

3 MR. BRUNDAGE: One of the areas

4 that's so glaring in that there's uncertainty

5 in what DOE can and can't do is regional

6 standards. It's hard to even make comments

7 at this point on regional standards. 

8 I've made a number of questions to

9 DOE which I presume will get answered when

10 the ANOPR is issued on what the limitations

11 are on regional standards, but it would

12 appear to me that unless we're going to not

13 really address whether there's going to be

14 regional standards until the ANOPR set of

15 hearings starts, at some point after some of

16 these short-term legal questions on what DOE

17 feels it can and can't do, I think you need

18 to have a whole other meeting just on

19 regional standards so that we can hash those

20 out because that has not been adequately

21 addressed today because there's so much

22 uncertainty on what DOE thinks it can and

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1 can't do.

2 It's just very speculative, and

3 it's hard to even comment on the merits of it

4 at this point.

5 MR. BROOKMAN: And what would you

6 suggest the form for that would be?

7 MR. BRUNDAGE: to have a day

8 meeting like this after some of the legal

9 questions on what DOE feels its flexibility

10 is and what it can and can't do, and we can

11 discuss some basic issues like which states

12 ought to be hot, humid, which ones ought to

13 be hot, dry, and which ones ought to be in

14 the everybody else.

15 I mean there are just a lot of

16 issues related to this, and it hasn't been

17 addressed adequately, and without some

18 answers from the DOE and some interaction, I

19 don't see how it can be.

20 MR. BROOKMAN: Jim Crawford.

21 MR. CRAWFORD: A follow-on to

22 Don's point. I would certainly add there

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1 whether or not that type of classification

2 that he just iterated is even the right

3 classification at all for regions. It was

4 mentioned earlier that heat in degree-days or

5 cooling degree-days may be the more

6 appropriate measurement.

7 And I think that we have

8 articulated during the day numerous areas

9 where there is not a common understanding,

10 much less a common viewpoint, on central

11 issues in this entire analytical process.

12 In my opening remarks, I suggested

13 that we consider periodic workshops, open

14 workshops to everybody here and everybody

15 that should have been here, so that we can

16 begin to nail these things down.

17 And in the area of establishing

18 regional regions, the very first thing is

19 what's the criteria, and we have not had

20 that. this framework document is written to

21 elicit from us a data dump, and with the

22 implication that the DOE and the contractors

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1 will then go off and do their analysis, and

2 then they'll throw it over the wall.

3 And that's simply not the way to

4 get the kind of results that I think you want

5 and we want.

6 MR. BROOKMAN: Robert.

7 MR. WILKINS: Yeah, in a lot of

8 ways I'd like to reiterate that. I think

9 that's a great point. I think we had very

10 open discussion today, which will prove quite

11 fruitful. We had great exchanges, resolved

12 some things, I think, and I think the idea of

13 continuing to having open workshops is a

14 great idea. We can build on the cooperation

15 that we've had here today and move forward

16 together.

17 MR. BROOKMAN: Kyle.

18 MR. GILLEY: I would defer to my

19 friends from the distributor and contracting

20 community, but even before you start having

21 discussions about appropriate regions and

22 things of that nature, I think you ought to

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1 address the enforcement issue. It's

2 meaningless unless there can be some

3 enforcement in regional standards. It's

4 almost you need an entire workshop just to

5 talk about enforcement because if you can't

6 develop an enforcement mechanism, it's a

7 meaningless exercise.

8 And in all due respect to my

9 friends from California, we're starting to

10 see that in that market now where CDC has

11 been very active in a number of fronts

12 resulting in, you know, meaningful benefit to

13 well intentioned benefits from the rules.

14 Unfortunately they've ignored

15 enforcement and now it is starting to

16 manipulate the marketplace in California. 

17 You don't want to do that on a regional basis

18 with this rulemaking.

19 MR. BROOKMAN: Paul.

20 MR. DOPPEL: I'd again like to

21 thank DOE for the good discussion today and

22 having this meeting. Probably the most

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1 disappointing thing today was not having any

2 more idea about what the regional standard is

3 going to be based on, and just to augment

4 also what Mr. Crawford was saying, that you

5 know, that could be very important to how

6 products are designed in the future, and

7 right now we don't know if DOE is going to

8 establish what those regional standards are

9 or what they mean, if you're going to do that

10 in the dark, if you're going to invite more

11 comments from industry.

12 So we'd like to encourage, as was

13 suggested, having, you know, maybe another

14 meeting, a collaborative type meeting to help

15 orchestrate some sort of definition about

16 what the regions are and what the impacts of

17 those are going to be.

18 MR. BROOKMAN: Okay. Yes.

19 MR. McCRUDDEN: To Kyle's point,

20 you know, on a workshop or something on

21 enforcement, you know, the language that you

22 ended up getting from Congress says that not

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1 later than 90 days after the date of the

2 issuance of the final rule that establishes

3 regional standards, the Secretary shall

4 initiate a rulemaking and develop and

5 implement and effective enforcement plan.

6 I mean, that's the cart before the

7 horse. How do we know it's going to work if

8 we don't know what's going to work?

9 So I think that's a very

10 appropriate workshop to host at some point in

11 the near future.

12 MR. BROOKMAN: So Talbot and then

13 I'll go to Tom. 

14 So I think the department welcomes

15 now in these final comments your thoughts on

16 process issues and other issues if you'd

17 queue up for them to consider looking ahead.

18 MR. GEE: And I would just say

19 that HUD has spent the entire summer of the

20 energy bill debate trying to figure out a

21 potentially workable way in any type of

22 regional stance, and frankly, we were stumped

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1 to do so because of the enforcement issues

2 primarily.

3 So I'm not trying to sound like

4 we're punting here, but I don't think you'll

5 see from us a proposal for how these regions

6 would be established because we couldn't

7 figure that out a year ago. So I'm not sure

8 why we'd be able to figure that out now.

9 So the strong proponents of a

10 regionalization format already have ideas of

11 how they might want to draw these lines and

12 enforce them. Then let's perhaps see those

13 and debate those in these discussions.

14 MR. BROOKMAN: Tom.

15 MR. ROBERTS: Tom Roberts.

16 The only thing we know is we know

17 the grain of the regional standard is state

18 sizes, right? So starting with that, then to

19 really do this right we'd have to do all the

20 work we're talking about doing today state by

21 state, 50 studies like this; then mix them

22 and match them in a huge matrix the size of

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1 the state of Philadelphia or Pennsylvania --

2 sorry -- and then we'd have some answers.

3 But that doesn't seem realistic to

4 even study what this possible implication of

5 regionality could because the climate has yet

6 to choose to align itself over state lines.

7 So if we could punch through that

8 and see what is it beneath regional standards

9 that people are looking for, like better

10 functioning systems in hot, dry, better

11 functioning systems in warm, humid, and other

12 possibly EER considerations, then maybe we

13 could make real progress.

14 MR. BROOKMAN: Harvey.

15 MR. SACHS: To some extent I bear

16 some blame for articulating this question,

17 and I'm happy to circulate through Brenda a

18 manuscript that several of us worked on that

19 really does have a strawman, a point at which

20 we can begin the discussion. 

21 There will be some conversation on

22 this at the ASHRAE meeting at Salt Lake City

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1 on Tuesday morning. You're certainly invited

2 to that as well.

3 I would offer that strawman not as

4 the answer, but as one place to start from,

5 and I would join with Jim and with others in

6 the suggestion that we do need to have some

7 collaborative effort. We do need to have

8 some talk. We can't do this stuff in the

9 dark and expect it to be accepted. We have

10 precedent for that in the furnaces

11 electricity workshop that Gammel organized a

12 number of years ago, and even though we'll be

13 out gunned and out personed and everything

14 else by industry, we still believe that

15 having this kind of iterative, collaborative

16 work is likely to be beneficial to the

17 process.

18 And finally, with respect to the

19 issue of whether the regulatory mechanism

20 ought to come first or last, I think the law

21 is fairly clear. We may as well just work

22 within in that and see if the savings are

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1 worth pursuing by developing a regulatory

2 mechanism, and that's something which we can

3 do together with some simulations and some

4 discussion and move from that to the

5 questions that are much harder because they

6 involve people and laws and regulations.

7 Thank you.

8 MR. BROOKMAN: Thank you.

9 Final comments? This last

10 discussion I think has been very useful from

11 the department's perspective.

12 Lance.

13 MR. DELAURA: Just a quick

14 comment. I agree with the notion that we

15 really need to tie up the ends on the

16 regions. I heard what Harvey just said, and

17 that makes a lot of sense to me, but at some

18 point, it would make sense to have all of

19 these players involved in the discussion that

20 speaks specifically to those regions. Is it

21 a state? Is it five states joined together? 

22 Is it the West, the East, you know, wherever

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1 it might be?

2 The two elements, I mean, it's one

3 of the key elements, and it's sort of the

4 chicken and the egg. Which one comes first? 

5 You do the technical analysis, and then you

6 get to this or do you get to this and then do

7 the technical analysis?

8 That isn't so important, but I

9 think what is important is that everyone at

10 this table and in this room has a chance to

11 give input on what those regions, if there

12 are to be regions, what they look like and

13 what the rationale is and why, and if there's

14 one region, two, three, whatever it ends up

15 being the base case plus two, everyone buys

16 into that or at least everyone gets a chance

17 to express their thoughts and feelings and

18 that they can walk away and go back to their

19 respective companies and say this is it and

20 here's why. Here's the rationale for it.

21 MR. BROOKMAN: Talbot.

22 MR. GEE: Is there an opportunity

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1 to use the two-plus year old increase of 13

2 SEER to try to see maybe if that was

3 justified and if so where as maybe the

4 starting point? Because, frankly, I think

5 that's a big question mark, too.

6 So before you're thinking about if

7 the number was even higher, maybe use what

8 data might already be there based on 13 and

9 see maybe if there were place where it was

10 justified that could even open the discussion

11 about raising it in those areas.

12 PARTICIPANT: It is aggregated

13 national into winners and losers.

14 MR. BROOKMAN: Jim.

15 MR. CRAWFORD: Jim Crawford.

16 Just to reiterate a point I made

17 earlier, and that is that the whole issue of

18 metrics has to be resolved pretty quickly. 

19 What metrics does DOE feel that they're

20 authorized to use in this process, and we

21 start there because until we know that, a lot

22 of what we've talked about today may be

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1 totally academic.

2 MR. BROOKMAN: Okay. Thank you.

3 So then from my perspective, I

4 just thank all of you for what I thought was

5 a very productive exchange today, and I'll

6 turn it back to Wes for closing remarks.

7 MR. ANDERSON: Wes Anderson, DOE.

8 I would like to thank you guys for

9 coming out, ladies and gentlemen for coming

10 out and expressing your opinion. Contrary to

11 popular belief, this is not a data dump. We

12 really want your specific, detailed responses

13 to our questions. We will take that. We do

14 listen; we will listen, and so I want to

15 enforce that request. Please, please, please

16 get your comments in as soon as possible, as

17 early as possible to help us so we can help

18 you.

19 Thank you.

20 MR. BROOKMAN: Save travel to

21 everyone.

22 (Applause.)

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1 MR. BROOKMAN: Please turn in your

2 evaluation forms. That helps us.

3 (Whereupon, at 4:40 p.m., the

4 meeting in the above-entitled matter was

5 concluded.)

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approve 80:21

approximately

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April 81:20 200:4

area 70:8 73:10

121:15 127:6

184:7 195:17

231:4,8,11,12,13

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203:2 231:22

232:1,4,10 234:22

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336:7 391:3 393:8

403:11

argue 157:6

argued 59:22 60:2,6

argument 157:17

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ARI 160:7 161:2

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arrangements

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arrive 110:19

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articulated 393:8

articulating 399:16

artificial 31:5

ASA 29:21

ASHRAE 6:1

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ASHRAM 69:11

ASHRAY 72:10

asked 8:20 13:3

71:3 96:12 138:12

284:20 317:10

asking 129:11 172:8

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226:16,16 280:20

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asks 255:2

aspect 108:11 123:7

361:9 365:10

assault 162:12

assembly 25:7

assertions 39:20

62:3

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197:8 267:17

assesses 301:2

assessment 4:9 9:9

141:1 183:18,21

183:21 185:10

261:9

assessments 140:16

assigns 317:11

assimilate 367:8

assist 32:2 142:13

associated 253:12

318:21 326:4,11

335:6 355:16

356:18 364:18

367:3 368:2,3,5,9

376:18 378:1

association 2:17

13:16 29:21 83:6

238:19

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176:6,7 221:17

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assumed 51:4,12

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367:4

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288:12 338:17

assuming 188:16

213:21,22 219:16

222:19 224:2

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assumption 50:5

247:13 248:1

256:15 270:13

275:22 276:7,10

279:16 282:15

331:6,20 340:12

340:17 342:13

350:19 351:19

assumptions 198:9

303:16 315:2

330:20 331:10

336:18,18 337:1,2

342:3 344:9 357:6

384:6

assure 139:2 227:14

attempt 327:16

Attendees 7:9

attention 107:19

169:7 180:21

208:8 244:16

325:3 362:12

Attorney 239:12

attractive 275:1

attributed 24:3

349:8

attribution 86:10

augment 396:3

August 181:8

authority 59:20

60:13,14,19,21

97:12 167:11

233:3 236:17,22

239:8 242:3

authorized 228:13

403:20

automated 333:2

automatically 62:10

131:18 248:3

automobile 360:20

automobiles 161:14

automotive 161:22

availability 17:8

27:19 34:12 66:10

86:17 187:2

191:17 216:7

256:21 257:2

260:9 321:19

available 17:11 69:5

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balance 49:7 383:10

ball 41:14,14

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ban 256:12

banana 140:6

bands 137:1

bar 222:18,21

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barely 257:11

barrier 152:22

barriers 24:17

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base 18:1 23:22

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192:21 193:2,3,9

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269:13 299:21

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basic 27:9 89:12

247:13 347:14

357:5 392:11

basically 109:8

162:5 282:18

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291:15 296:1

306:20 312:1

320:21 327:9

346:10 351:1,4

358:19 371:22

372:15

basing 277:7 314:4

basis 131:4 202:11

203:15 273:6

305:5 308:7 313:8

315:5 395:17

battery 217:11,11

beams 344:4

bear 399:15

beat 201:12

beating 118:3

beginning 177:15

256:12

beginnings 295:13

behalf 18:21

belief 25:9 404:11

believe 14:18 19:16

35:3 45:16,18 46:1

50:19 94:21 106:8

107:9 120:7 143:1

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147:11 151:22

173:8 186:17

197:1,7 205:19

218:21 219:16,19

233:1,17 236:17

236:22 270:22

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308:6 321:18

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352:14 361:14

400:14

believes 181:9

330:21

believing 117:22

benchmark 295:8

beneath 399:8

beneficial 183:6

400:16

benefit 10:13

186:13 220:19

236:13 306:4

369:4 395:12

benefits 11:19

117:12 240:3,5

356:20 364:10

395:13

benefitted 26:17

Bergt 1:20 375:22

375:22

Berkeley 2:5,22

251:8 303:20

best 6:3,6 11:11,21

25:16 28:16 49:13

72:16 102:12

202:2 275:15

322:22 343:11,19

better 44:11,17 47:5

52:17 71:19,21

79:8 82:12 88:7

136:1 150:22

158:11 179:3

182:21 199:16

201:15 212:21

231:21 244:3,7

253:9 276:9 288:4

334:3 379:16

399:9,10

beyond 78:17

121:10 252:13

300:6

big 54:17 56:18

58:14 112:18

204:14 241:19

256:8,9 257:14

273:16 299:2

371:17 403:5

bigger 200:7 206:2

250:8 252:17

332:1 335:21

339:3 354:5

biggest 24:13

314:22

bill 1:17 16:15

43:11 89:8 106:1

113:3 134:14

156:7,8 157:2,2

186:1 200:1,2

232:13 246:3

257:12 267:5

269:17 305:1,2

320:6 338:14,15

397:20

bills 36:12 39:22

46:1 305:18,21

318:19,21

bin 115:12 271:22

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bit 12:2 54:8 92:17

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block 21:16

blood 140:6

blowers 339:20

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border 29:5

borders 35:1

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brief 8:14,16 13:4

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137:6 138:1,20

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143:21 144:8,13

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151:8,17 152:7,13

153:3,9 154:8,21

155:3,6,16,21

156:7,17 157:12

157:21 159:11,22

160:22 161:4,19

164:1,13 165:3,18

166:15 167:9

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176:15 177:9,20

178:5 179:4,15

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186:20 188:14,22

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191:2 194:14

195:4 196:12

197:10 198:4,15

199:4,22 200:10

201:7 202:18

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208:12 209:12

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212:9 213:3,9

215:1,9,21 216:14

217:16,18 218:12

219:9 220:8,18,22

221:8 222:5 223:7

224:5,15 225:19

226:4 227:5 228:7

228:21 229:17

230:16 232:15

233:6 234:1,8,13

235:8 236:7,18

237:2,5 238:3,17

240:16 241:14

242:5,17 243:17

244:5,15 246:3

247:6 248:6

249:13 251:1,5,9

251:16,20 252:10

253:3,18 254:8

255:7,13,18 256:1

257:5,18 258:3,12

258:16,22 259:19

260:1,5,14,17

262:7,17 263:4,21

264:3,10,18 265:7

268:6,19 269:14

270:14 271:14

273:3 274:5

275:10 277:1,21

278:14 279:11,22

281:2,17 282:9

283:20 284:12,17

285:8 287:6 288:5

290:17 291:9,11

292:15 293:18

295:12 296:10,14

296:21 297:8

298:12 299:10,17

300:10,18,22

306:11 307:15

309:6 310:1 311:8

312:3 314:11,14

315:17 317:3,6,17

320:17 322:2,12

323:6 324:3,16

325:5,9 327:2

328:12 329:6,20

330:7,12 331:16

332:9,14 333:10

333:21 334:11,14

335:1,8,12 336:12

337:4,8 338:5,8,12

339:15 340:8,19

341:12,22 342:16

342:20 343:15

345:10,16 349:21

350:12 352:9

353:8 354:1,7

357:18 359:10

360:11,14 361:2

362:3 363:2,15,17

364:5 372:17

373:9,11 374:11

375:4,19 377:1,17

378:15 379:6,21

380:4,8 381:9,14

382:7,11 383:16

384:1,18 385:3,13

386:2,5,21 387:5

387:22 388:11

390:8 391:1 392:5

392:20 394:6,17

395:19 396:18

397:12 398:14

399:14 401:8

402:21 403:14

404:2,20 405:1

brought 94:14

152:11 161:22

167:21 190:2

204:3 206:3 225:7

225:22 263:6

362:22

Brundage 1:23

41:22,22 69:17,19

69:19,22 106:9,9

126:16,16 146:12

149:15,15 152:13

152:14,14 213:7

215:10,15 229:2

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building 42:7,9 44:3

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buildings 71:17

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283:2,16 294:8

328:4 335:19

351:9

builds 344:14

build-up 73:12

built 42:14,17

320:13 348:10,14

bulb 163:1

bulb/dry 162:22

bullet 65:13 105:3

106:17 107:4

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bullets 330:19 351:4

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bumped 373:19

bumps 206:13

bump-up 371:17

bunch 217:10 245:6

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burden 81:3,5

261:21 262:15

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Bureau 347:19

bureaucratic 96:4

Burt 2:21 375:7,7

382:16,16

busiest 89:20

business 24:10

35:20 202:1

247:22 258:10

298:16

businesses 258:11

327:10

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busy 53:1,8 88:16

89:3

buy 158:10 252:16

252:18 298:21

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329:15,16

buyers 238:1

buying 299:2

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cabinet 361:1

CAF 34:16

cafeteria 209:1,6

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285:19 301:3

318:19 326:10

366:16 367:2,17

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calculated 281:20

319:3

calculating 330:2

350:22

calculation 268:12

274:1 328:11

calibrate 349:4

California 2:19 3:6

45:14,18 48:17

49:3 80:12,13,17

121:18 122:4

133:15,15 134:3

137:18 143:14

144:19 146:18

164:7 168:13,15

194:22 233:12,17

234:19,21 236:9

240:13 241:22

245:1 268:13

272:20 278:19

309:17 310:5,16

310:19 311:4,15

311:17,22 313:16

317:10,16 324:13

335:1 395:9,16

California's 46:6

call 30:20 31:5

56:12 72:17

134:19 138:11

161:8 169:7

180:21 192:9

303:14 316:9

318:12 349:6

372:21 390:3

called 66:16 193:5

278:7 300:4

319:17,18 326:19

347:1,20 370:22

374:15

calling 107:18

161:10

candidates 189:1

cap 16:16 324:14

capability 42:4 43:4

127:13

capable 160:12

294:20 295:3

capacities 21:3

194:12 200:14

205:3,4

capacity 43:11

62:13,14 131:17

160:10 193:8

194:3,11 200:13

200:18 204:22

205:8 206:15,19

206:21 378:6

capita 329:11

capital 326:20

327:8,15

Capitol 16:15 136:9

capped 362:16

capture 218:9 266:3

267:4

captured 7:3 278:6

capturing 273:19

276:3

carbon 383:3,4

384:21,22

card 74:18 330:3

cards 330:1

care 57:12,13,14

359:1

careful 36:8 384:11

carefully 17:6 206:6

232:14 236:5

240:11 388:5

Carl 1:20 375:22

Carlo 301:13

carried 329:11

Carrier 2:2,13

113:15 220:10

234:4 299:13

Carrierþ 70:16

carries 207:9

carry 163:14 168:11

349:12 356:14

carrying 294:20

295:3

cart 397:6

carve 150:16

case 35:13 104:10

112:20 146:17

241:7 318:15

323:19 347:2

350:16 354:15,16

354:17,21 361:10

363:9 365:1,1,2

366:18,19,20,20

367:8,9,9,20,20,22

367:22 368:7,10

368:10,16,16

369:15 370:7,7

372:2,16,20 373:4

383:9 402:15

cases 68:5 229:15

323:20 336:6

339:2

cast 228:20

casts 349:6

catalogs 193:16

catalogues 215:4

catastrophic 178:13

categories 157:20

cause 35:11 200:22

caveat 19:9 306:22

CBECS 270:18,22

CDC 395:10

CE 214:8 216:3,3,4

216:11 222:7,17

ceases 148:11

CEE 210:20 222:16

cell 11:6

cells 186:12

census 269:3,5

311:13 340:22

347:19 348:1,1,6

348:22 349:1

350:1,3,7,9 352:6

center 143:15 279:1

central 1:6 5:7 14:3

14:7,8 15:5 16:5

17:14 19:7 20:12

21:4,13,15 24:1

27:5 30:5 55:4,17

63:16 97:20 98:8,8

103:10 104:10

105:13,15,22

109:22 122:13

139:10 141:21

145:5 153:20

154:2 164:7

183:11,16 205:9

233:14 257:2

272:20 274:14

282:13 292:10

318:4 320:14

346:16 348:12

350:20 358:3,6

359:13 361:22

377:5 393:10

cents 312:14,17,18

313:3 314:6

316:13,16

certain 26:15 49:11

73:10 112:19

127:10 138:22

203:6 206:19

253:13 254:4

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cetera 198:12,12

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cfm 3:17 32:14

CFR 103:14 145:3

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chain 241:6 249:21

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321:10 382:14

chair 33:2

Chairman 60:9,9

60:11

challenge 51:6 57:1

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challenging 12:3

chance 99:2 141:22

159:13 244:18

386:10 402:10,16

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34:11,21 46:7

54:19 57:13 75:3

94:3,6 132:20

154:14 171:6,16

178:17 253:12

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361:20 363:10,13

370:9 383:14

387:16

changed 277:17,17

320:15 388:9

changes 20:6 24:16

42:7 51:21 62:19

68:21 123:3,4,14

123:17 126:21

139:9 256:7 257:3

260:12 277:8

279:19 331:11

384:7,9

change-out 342:14

changing 20:3 76:5

127:16 132:2

133:6,7 282:7

384:4

channel 23:19 27:11

28:6 30:12,20

31:21 33:22 34:1

36:16 93:3 231:13

235:13 262:12

263:3,17 264:2

274:11 286:11,14

286:21 287:13,15

287:18,19,20,21

288:2,11,14,17

289:15 290:14,22

291:8 297:18

332:18 339:7

382:10

channels 30:15,18

30:21 31:1,2

248:19 286:9

288:7 289:5,7,11

289:19 290:4,11

291:2,4 292:18

297:15

chaos 316:9

characteristic 57:18

characteristics

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347:20

characterization

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characterize 141:20

283:8 289:4,7

318:11,16 328:4

347:6,10 348:5

351:5,8

characterized 292:3

charge 16:22 17:4

27:18 333:17

334:4,5 335:5

charger 217:11

chargers 217:11

charges 304:14,15

318:10,12,12,13

319:5,16,16 320:5

320:7,7

Charley 28:10

88:11

Charlie 1:21 88:12

235:8,9 252:11

255:15 258:5,6

277:21,22 336:12

chart 215:19 219:15

220:3 296:7

342:22 343:1

charts 378:2

chase 293:4

check 94:20 95:2

295:9,11

chevron 195:10

chevrons 381:22

Chicago 225:14

245:18

chicken 150:5 402:4

chief 56:19

chime 9:1 258:10

361:18

choice 37:12 218:4

245:17 246:2

274:19 275:8

313:6 343:5

choices 35:10

159:16

choose 31:18 227:16

239:22 245:8,21

313:1 357:15

399:6

choosing 239:11

chose 239:7

chosen 177:18

Christopher 2:24

140:19,21 141:4,5

142:22 143:6,9

145:2,11 147:21

155:17 169:6

173:6,10 174:9,17

180:19 183:19

184:21 185:6

189:6 191:7 195:8

195:13 196:9

210:7,10 211:13

211:16 213:17

214:4,15,20 215:5

215:14 220:14

221:5 229:19

248:8 249:17,20

250:14 254:5,7,10

256:5 259:5,8,11

259:14,22 260:16

260:18 262:19

265:3 389:13,13

chunks 141:6

circuit 130:7

circulate 87:15

399:17

citation 97:13,15

160:22

citationþ 108:20

cite 39:18 176:17

Cities 232:2

city 161:14 162:5

164:3 399:22

civil 80:22

claims 16:11

clarification 147:17

180:17 182:9

183:10 259:20

313:11

clarifications

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clarify 105:2 127:14

152:15 160:4

215:10,20 229:3

249:9 377:3,15

clarifying 134:11

142:18 262:5

clarity 203:8

class 19:5 20:22

22:8 148:5,9,11

150:4,16 151:16

153:18 154:7,20

156:14,16 157:13

161:9 169:17

170:8,13,21 171:6

171:9,19 172:4

175:11,13,22

181:14 183:14

193:1,7 194:4

205:13,13 212:5

220:5 251:4

267:19,20 301:18

348:19,21 352:5

362:10 370:15

378:5 379:12

classes 147:8,19,22

149:2,10,12,13

150:2,14 152:17

152:21 153:1,11

153:13 156:20

157:4 161:6 168:7

176:21 194:6

284:8 351:12

352:21 379:16

classification

155:15 393:1,3

classifications

285:4

clear 57:11 59:13

60:20 108:6

180:15 225:11

237:10,11 243:6

256:18 332:19

333:8 383:20

386:16 400:21

clearly 57:16 95:1

183:1,5 377:3

clever 37:1

climate 2:8 14:16

16:14 17:7 34:11

34:21 45:15 46:7

54:19 57:13 75:1

111:1 116:8 158:1

205:19 212:12

225:10,13 226:2

233:19,20 234:17

234:19 235:2,4

237:15 238:7,15

243:20 245:1

273:14 283:7

317:13 363:10

EERE-2008-BT-STD-0006 COMMENT 13
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close 49:18 67:3

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closed 322:17

closely 25:12 39:11

143:16 232:6

238:8

closer 24:20,21

102:13 197:2

199:21 201:15

closet 335:20 336:2

closing 4:20 10:11

404:6

coal 40:20,20,22

coalition 58:16

Coast 55:19 308:20

coastal 168:22

233:13,20 236:11

236:12

code 18:7 97:19

127:11 277:4

279:1,19

codes 42:7 44:3

242:15

codified 148:17

coffee 49:21 110:16

140:4 209:3

322:16

cognizant 65:4

coil 21:16 130:6

145:10 160:12

184:7 195:17

204:10 339:12

coils 40:15 339:3

361:1

Coke 322:19

cold 359:2

collaboration 96:13

collaborative 75:4

396:14 400:7,15

colleague 50:4 96:2

291:13

colleagues 360:1

collection 141:19

collectively 10:6

39:11 62:5 72:13

colorful 7:22 9:14

combination 163:18

266:19

combinations

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Combine 267:7

come 28:21 29:8

38:17 40:4 78:22

86:11 90:9 98:21

106:7 114:8 117:3

152:18 165:11

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188:1 191:12

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324:19 326:15

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347:17,19 349:15

351:11 365:1

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comes 143:7,8

195:14,15,18

196:17 293:4

333:14 402:4

comfort 3:18 19:18

58:3,4 155:10

178:10 282:6

coming 43:12 60:4

76:14 78:20 137:7

158:16 197:13

273:4 291:7

295:22 318:20

324:10 355:21

369:12 404:9,9

commendable

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comment 12:18

32:6 61:9,21 63:18

64:17 65:2 67:4

69:13 72:21 82:14

86:2 88:2,10 97:4

97:7 102:17

106:11 123:16

124:15 126:14

128:12 133:11,12

137:9 139:6

141:11 146:12

151:21 154:10

155:18 156:10,18

157:3 165:21

174:13 177:21

184:10 186:15

193:19 204:19

205:1 209:17

213:6,8 216:2

233:1,7 244:19

245:17 247:7

250:15 251:1

257:21,22 258:1

258:20 259:1

268:9,9 275:13

289:22 290:8,15

296:20 306:11

308:12 315:18

317:9 336:15

338:16 342:22

345:17 350:13

352:3 377:13,15

379:21 384:2

389:7 390:14

392:3 401:14

commented 86:9

317:21 336:19

382:22

commenter 86:8

commenters 86:18

commenting 30:8

102:16

comments 10:14

11:22 12:7,21 15:1

18:13 19:19 22:21

23:10 28:13 32:3

33:10 44:14 45:13

50:4,16 52:11

61:14,17 62:1

63:10 64:10 69:22

75:5,15 76:17 77:6

78:17 79:17 83:9

83:14 84:4,6,9,11

84:13,14 85:15,17

86:11,17,21 87:12

87:16 88:5,20

90:11 91:21 92:14

93:18 95:17 96:3,7

96:22 102:10,10

106:5 107:20

115:18 117:8

120:11 121:7

126:6,11,22

128:21 129:1,6

131:7 133:22

134:6 139:9,15

143:17,22 155:19

156:20 158:1

168:6 172:6

173:22 174:10

178:3,6 179:16,17

180:22 181:15

183:17 184:3

191:3,3 200:11

207:1,13,16 208:2

208:4,9 224:15

247:9 252:1,13

253:3 255:13

256:2,3 258:2

265:2 267:22

278:15 280:20

281:18 282:9

284:13 288:6

289:6,12 295:13

295:21 300:8

311:7 323:22

325:6 327:2 330:8

330:9 331:19,21

332:5,7 340:17

341:15,18,19,21

354:9 361:3

363:17 375:5

377:18 379:18

380:2,5 381:2,16

381:20 386:11,19

386:22 387:2,17

388:7,10,14

389:10 391:6

396:11 397:15

401:9 404:16

commercial 13:17

13:19,21 149:17

152:11 282:14,21

283:16 284:5

305:19 317:4,18

318:3,6,7 319:12

321:20 322:4,7

326:14,16 350:17

350:20 351:1,9

390:4

commercialization

188:8 192:3

commercially 152:6

192:2

commission 71:17

133:16 134:3

188:18 241:22

310:20

commitment 80:3

committing 390:12

commodity 197:18

common 10:18

160:14 189:21

245:15 393:9,10

commonality 85:20

communications

160:15 390:15

community 262:14

375:3 394:20

companies 13:18

23:3 47:18 48:17

281:8 402:19

company 1:23 2:4

2:20 33:6,14 39:1

42:1 45:2,13 48:17

58:5 69:20 70:9

81:4 106:10

126:17 149:16

172:13 249:3

comparable 21:4

compare 21:12

158:6 162:14

163:3

compared 21:21

154:2

comparing 308:21

EERE-2008-BT-STD-0006 COMMENT 13
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279:20

compel 239:14

compelled 114:13

compelling 220:11

220:15

compete 181:10

183:11

competitive 231:16

competitor 294:6

competitors 25:19

378:11

complete 11:2

295:15

completed 98:15,16

266:15 269:18

completely 114:2

272:1 293:19

311:1

complex 33:19

43:16 72:2 246:16

318:9

complexity 25:1

compliance 239:14

243:11

complicate 316:6

complicated 88:3

166:8

complicating 91:19

complied 202:9,11

complies 133:5,5

compliment 45:2

comply 133:4

202:10

component 37:12

93:10 108:4

362:13

components 33:18

93:16 199:7,12

248:20 254:3

346:1

comport 219:11

compounded 345:5

compounding 147:7

compressor 19:21

21:10 22:12

129:21,22 160:9

160:10 201:3

275:2 342:13

343:8

compressors 19:12

19:13,17 184:8

189:19 198:11

339:21 360:4,22

compromise 167:22

242:13

computed 272:19

concede 183:10

240:4

conceivable 152:5

concept 20:2 48:19

50:13

concepts 383:21

conceptual 188:11

366:15 367:16

concern 8:15 24:14

25:17 46:20 75:18

150:4 158:2

173:21 174:14

178:11 212:13

217:5,6 223:10,16

228:3 247:21

253:2 257:9

271:21 363:5,5

concerned 28:19

29:2 34:9,10,14

37:19 132:1 223:2

231:7 271:18

312:6

concerns 24:20 25:8

26:7,21 27:19 30:7

36:9 42:3,5 49:9

66:15 72:14 92:12

102:3 203:18

226:12 235:16

362:22

concise 11:12

concluded 322:15

405:5

conclusion 29:9

114:8 141:11

167:15 203:11

309:1 324:19

340:5

conclusions 204:7

345:6

concur 271:13

condenser 147:14

condensers 17:1

143:20 144:4,11

145:14 174:20

condensing 40:14

93:14 155:12

198:21 219:1,21

360:18,18

condensive 147:10

condition 47:4

conditioned 144:6

conditioner 15:13

45:15 57:4,8 60:5

61:2 113:6 134:18

135:6 145:5 146:5

163:3 218:2,6

225:18 238:11,13

282:3 299:3 358:4

conditioners 1:6 5:8

14:8 20:12 55:2,4

55:14,18 56:5,19

57:18 62:2,4,9

63:16 76:3 97:21

98:8 103:10

104:10 139:11

141:21 148:3,6

149:4,7 175:1

178:7 184:2

210:19 217:10

229:11 281:6

282:13 318:4

319:13 346:17

348:13 350:21

358:3,5,6 361:22

370:13 376:3,4,14

376:19

conditioning 3:12

13:13,20 19:8 21:5

30:6 46:8 88:13

98:9 113:11

122:14 153:21

154:3 156:15

161:17 178:19

183:12,15,16

188:21 205:9

235:10 274:15

320:3 359:13,16

367:1

conditions 42:15

154:15 158:7

162:22 163:1

316:17

conduct 185:9

261:3

conducted 97:13,18

141:8,15 175:6

192:14 260:22

261:2 325:21

conducting 169:18

192:19 283:6

conducts 192:7

261:4,17

conference 6:1

390:2

confidentiality

254:22

configured 233:8

confirm 108:1

119:15 133:9

confused 98:14

112:15 187:12

confusing 246:17

confusion 112:15

113:5,16 196:5

congratulate 52:22

53:16 59:7

Congress 39:22

43:9 99:9 120:7

167:22 187:7

231:3 232:12

396:22

congressional 54:5

conjunction 157:19

connected 72:20

connection 46:22

47:16

conscious 174:5,8

consent 54:3 65:11

73:10 101:12

118:13

consequence 217:2

consequences 38:7

consequently

362:11

conservation 16:4

17:12 63:15

consider 16:13 48:5

59:19 60:15,21

68:17 103:17

117:9 126:11

134:17 138:15

154:22 155:2

187:7 194:9 200:5

206:10 216:22

220:7 225:3

238:16 239:17

255:10 257:4,6,15

263:17 278:2

280:7,21 301:14

309:8 330:6

334:21 356:5

374:18 393:13

397:17

considerable 55:12

61:2

considerably

139:15 170:10

consideration 8:5

10:16 19:4 22:11

27:14 51:19 76:4

86:3 94:12 95:11

152:1 153:17

164:19 186:16

187:18 188:20

190:6 196:22

221:10,14,21

245:1 261:13

262:20 264:7

277:3 312:20

383:13

considerations

188:13 399:12

considered 19:22

41:6 85:18 109:10

110:4 121:16,22

124:1 130:14

131:11 135:3

149:13 152:12

153:13 186:3,19

198:19 200:4

218:11 225:4

226:3 231:1

254:18 258:9

EERE-2008-BT-STD-0006 COMMENT 13
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Neal R. Gross and Co., Inc.

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considering 73:2

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considers 24:14

346:15

consist 304:14

consistent 62:3

164:20 165:2

276:17 328:1,15

consistently 325:1

359:20 360:3

consolidate 53:14

233:3

consolidated 231:12

Consortium 210:15

constant 341:8

constrained 148:6

149:7 212:8

218:15 335:18

336:7 351:16

constraining 175:22

constraints 200:22

construct 192:9

construction 72:3

176:19 177:17

178:11 179:6,9,10

279:4 347:8,13

348:4 351:6

consult 53:13

352:16

consultant 2:2 45:1

consultation 7:16

130:19

Consulting 2:24 3:4

141:6 389:14

consumed 104:11

265:19

consumer 24:22

37:1,22 41:4 60:1

89:10 94:4 156:12

157:11 158:9

186:14 199:9,19

218:4 240:7 241:5

263:18 278:4

286:1 312:21

313:2 326:9

328:19 329:9

343:12 356:2,20

364:10 372:11

consumers 15:18

16:6 26:1 30:16

35:10,14 45:21

58:3 157:5 162:14

166:14 191:17

237:17 245:8,21

246:18 274:19

275:7 329:1

consumer's 357:14

consuming 55:9

consumption 41:5

54:15 55:3,7,13

104:2,9 108:15

109:9 128:14

129:2 131:9,16

136:11 139:12

266:10 267:10,14

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270:5 274:2 277:6

280:9 283:1,1,10

302:19 304:5,22

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consumptions

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contact 172:14

340:2

content 10:9 95:13

95:19 209:16

context 54:8

contiguous 230:9

233:5

continually 222:11

continue 35:15

155:14 159:3

170:7 177:1,7

179:11 206:20

334:6

continued 2:1 3:1

continues 350:15

continuing 35:21

36:11 149:6

394:13

continuous 20:3,18

138:4

continuously

135:21

contracted 124:19

contracting 239:9

262:14 394:19

contractor 34:2

35:8 37:1 91:20

94:5,5 246:12

285:22 286:13

contractors 1:21

2:8 18:6 25:13

29:3 88:13 163:6

196:11 199:18

235:10,15 245:7

245:19 252:15

288:20 293:7

353:13,14 393:22

contrary 181:15

404:10

contribution 58:15

contributions 29:11

59:4

contributor 55:17

56:20

control 95:7 113:9

113:19 129:20

149:19 150:8

160:13,14 244:7

245:9 340:3,4

controller 150:17

controls 20:6,14

23:6 62:11 136:12

362:19

convenience 92:8

conventional

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181:11,13 194:5

218:22 219:22

340:2

conversation 11:7

232:17 278:22

399:21

conversations 115:3

383:19

conversion 261:20

367:11

convert 248:13

304:4 325:15

367:11

converter-driven

22:12

convince 231:2

convinced 248:4

320:22

cool 145:10

cooled 143:19 144:4

144:10 145:6,9,14

146:2,4,5 147:1,8

147:14 255:12

cooling 30:1 58:3

104:15 114:1

127:19 130:1

131:17 132:15

143:15 144:7

149:20 150:9,18

151:3,6,7,10,12

200:12 204:22

205:8 280:19

393:5

cooperation 394:14

coordinate 93:3

copies 12:12 22:20

copper 40:12,15

copy 7:20 86:20

87:1

corner 138:18

corporate 34:17

CORPORATION

2:2,13

correct 85:16

107:15,17 110:1

111:19 112:5

118:12 215:14

268:22 270:11

272:2 275:15,22

331:11

corrected 15:6

20:20 22:1,5,14

106:18 122:15

correcting 333:5

correctly 269:16

correlated 227:19

correlation 65:17

227:21 321:4

correspond 211:21

371:7

correspondence

214:18

corresponding

260:12 375:15

corresponds 210:19

cost 4:15 15:11 26:2

26:2 27:11 34:3

35:16,18 37:12

40:11 45:10 46:3,5

100:20 172:8

186:8,13 192:9,12

193:3,9,10,22

196:10,15,19

197:14 198:7,20

198:21 199:9,13

199:18 200:5,8,9

201:5,20 202:2,11

202:14 214:5,6

221:13 223:13,22

236:12 237:17,21

238:10 248:13

255:5 264:12

265:21,22 266:1

266:21 274:8,21

285:12 286:3,4

294:13 300:5,20

301:4 302:15,16

303:1 304:8

307:22 309:12,12

309:15 311:3

312:8 314:2

317:12 319:2,8

320:6 324:10

325:12,15,22

326:1,2,4,20 327:8

329:15,18 333:14

334:7,9 340:6

344:18 346:5,5

355:7 357:13

364:19 365:13,15

368:3,4,4,8,12,15

368:17 369:1,2,6

369:22 370:1

EERE-2008-BT-STD-0006 COMMENT 13
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Neal R. Gross and Co., Inc.

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253:12 261:20

265:15 267:12

278:1 288:4

293:10 304:6

308:6 321:15,17

321:17,22 327:15

330:22 331:7,12

331:14,22 332:21

335:22 336:9

338:18 339:13,17

340:1 344:16

355:3,12 364:18

368:8 369:5,13

370:9 382:21

cost-effective

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cost-efficiency

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council 2:6,21 33:3

56:11

counsel 74:13 94:21

101:17 151:20

count 53:7 79:5,13

counterpart 60:11

counterparts 32:22

counterpoint 12:2

counters 182:14

countries 189:22

country 27:2 49:4

52:8 56:8,13 94:14

94:16 95:6 268:14

273:22 343:20

359:5 379:5

counts 7:15

couple 29:19 54:6

78:21 81:15 97:11

121:7 128:2

155:18 167:10

169:7 180:2 253:8

281:11,11 311:7

361:6 385:5

courier 64:14,15

course 18:15 95:14

95:15 254:22

301:9 306:6

349:15 351:21

355:17 361:16

368:21 377:8

court 11:3 73:17

203:5 229:15

339:9

courtesy 10:18

cousin 89:10

cover 95:14 112:20

153:19 174:3

230:14 317:3

386:16,18 387:9

covered 103:9

108:12 110:8,10

144:11 147:3

207:2 296:15

346:16 356:22

covering 109:6

307:4,7,8

covers 129:13 307:1

co-modification

374:16

co-ops 307:6

CO2 16:17 382:19

383:12

CR 214:12

crack 102:7

crafts 243:9

Craig 1:22 129:14

129:16 130:3

170:3,4 172:10

206:8,9 218:16,17

238:3,4 342:5

Crawford 2:12

38:22 39:1,6 50:5

61:21,22,22 67:10

67:10 69:8 70:1

122:22,22 130:11

130:20 131:1,13

136:6 145:22

146:1 151:5,9,10

151:13 155:22

164:13,14,14

165:5 176:16,16

179:5,13,16 189:3

189:4,8 197:16

200:15,16,16

203:21,22 216:16

216:16 224:6,6

228:8,8 260:4,4,5

260:6 270:15,15

271:4,10 278:17

278:17 281:22

283:21 284:19

295:18 296:11

299:5,6,8 307:18

307:18 308:17

329:7 339:16,16

340:20 344:14

345:12 349:22,22

360:12,15,15

377:22 392:20,21

396:4 403:15,15

create 30:17,22

237:16

creates 31:20

121:19 131:20

274:20

credible 18:10

credit 14:13 328:17

329:12 330:1,2

385:1

credits 356:2,2

crisis 56:13

criteria 100:17,18

101:3,10 104:4

170:12 244:11

282:5,5 393:19

critical 18:3 28:16

68:13 77:2 80:5

261:12 268:11

316:2

crowd 209:7

crunch 120:13

crystal 41:13,14

CR-13 227:19,21

CR-14 244:8

cuing 11:20 12:6

culvert 147:1

cumulative 73:12

261:21

cup 49:21

curious 220:20

258:8 272:3 277:2

current 17:16 42:21

43:1,14 45:7 59:14

113:17 129:4

133:1 147:19,21

148:1 150:10

156:5 193:1

207:16 221:21

227:8 309:13

311:21,22 371:11

371:22

currently 20:8

26:12 30:19 44:18

54:11 132:22

148:5,7,18 152:2,6

175:4,7 186:5

256:10 331:3

currents 217:1

curve 192:11

196:16 201:5,5

curves 192:19,20

196:16 266:21

359:19

custom 286:17

customer 37:10

51:9 246:12

286:13,19 287:2

297:22 298:3,7

302:13 304:10

310:10 316:11

318:19 321:15

customers 26:4 35:8

35:8 46:7 216:9

223:4 246:8

281:10 305:20,20

310:9 313:20

316:1,19

customer's 318:14

cut 285:3 316:17

cutting 293:4

CVEX 283:7

cycle 88:4 113:19

134:18 135:11

222:21 265:15

266:1 278:1

285:12 286:4

300:20 301:4

325:12 344:1,3,6

344:11,16,18,22

346:4,5 369:13

382:21

cyclic 111:4 112:6

136:2 162:5

C-O-N-T-E-N-T-S

4:1

D

D 5:1 112:7,10

337:20

Daikin 2:23 165:13

179:22 180:3,6,9

Dan 151:19 161:21

217:19

Danfoss 3:8 274:7

312:5 359:12

DANIEL 1:22

dark 308:18 396:10

400:9

Darn 155:1

data 15:1,15 16:11

55:1,5 63:20 64:7

71:2 114:11

141:19 142:3

172:9,13,18

174:12 176:11

181:18 182:14,18

182:20 183:3

193:14 195:19

196:20 197:1

235:4 255:5 266:9

266:10,11,12,15

266:18,20 267:5

268:5 269:2,3,5,9

269:10,13,17

271:1,3,7 272:14

281:16 283:7

286:2,5 304:5,20

305:1,2,3,10,13,14

305:15 306:4,5,7,8

306:16,16,19

307:1,5,9,10,11,12

308:12,12,15

311:11 313:12,14

317:1 326:9

EERE-2008-BT-STD-0006 COMMENT 13
202-234-4433

Neal R. Gross and Co., Inc.

Page 417

328:21 335:2,3

336:11,14 337:19

340:22 346:13,14

347:21 348:15,17

348:20 349:1,7

352:1,3,5 353:1,5

354:20 355:14

359:6,7 369:10

370:12,14,22

371:2 372:18

377:9 378:3,8,9

379:2,11,14

393:21 403:8

404:11

database 215:6

date 67:8,11,20

70:18 71:9 73:3,4

73:10 75:17,19

76:5,9,22 77:1,3

78:16 82:16 84:22

88:15 89:1,18 90:2

90:6 92:15 93:1,18

94:1,2,2,13,17

97:3,8 98:21 100:3

100:10,13,15,21

101:2,3,16 102:12

118:12,16 203:6

207:15,16 268:4

346:21 367:5

384:7 387:16

388:8 397:1

dates 67:1 68:4,8

78:15 109:19

Dave 165:18

day 6:17 8:2,8 55:22

65:7 74:3 89:3,5

94:6 97:3 99:4

137:3 143:10

203:5 207:12

296:12 315:11

387:10 392:7

393:8

days 47:6 69:10

70:4,11,19 79:6

80:6,19 82:6,8,9

82:10 243:22

318:11 397:1

dead 137:1 316:2

deadline 32:5 74:2

75:16 77:9 92:22

388:9

deadlines 53:19

54:5 109:17 110:2

deal 27:10 154:12

200:19,22 333:1

375:11

dealer 246:11

286:12 292:19

298:4,9

dealers 163:6

dealer-contractor

286:15

dealing 146:6 183:3

305:13 316:1

dear 291:13

debate 397:20

398:13

debated 16:14

167:17 234:6

debt 326:3,12,21

328:22 329:4,10

decade 99:21 100:1

279:8 324:11

decades 324:11

decided 72:18

226:11 332:5

decides 282:19

305:12

deciding 47:8

decision 6:16 35:15

38:2 234:7 312:16

357:14

decisions 36:8,13

38:7 75:11 131:5

decoupling 41:2,7

decrease 24:8

decreases 321:13

decreasing 224:10

decree 54:3 65:11

73:10 101:12

118:13

deduce 272:10

308:14

deduced 271:20

306:2

deemed 145:15

deeper 270:20

default 244:9 330:1

DEFENSE 2:21

defer 114:22 115:1

117:15 394:18

define 55:18 56:5

124:7 189:9 230:8

defined 57:2 150:3

152:21

defines 161:11

defining 57:18

152:16 157:4

212:21 228:12

241:12

definite 62:19 372:8

definitely 49:8

143:19 245:11

259:18 363:12

definition 81:11

94:22 95:1 145:4

148:10 150:14

160:6 175:11

182:17 189:7,13

285:5,7 396:15

definitionþ 107:1

degradation 272:7

275:20 276:3,8,21

337:13

degrade 276:15

degree 217:4 243:22

degrees 56:4 241:8

241:11

degree-days 393:4,5

dehumidification

42:4,16 43:3

127:12 150:18

154:13

dehumidify 151:3

Delaski 1:15 52:12

52:13,13,19 53:12

61:9 76:17,22

77:13 78:21 79:4

79:12 90:12 97:7

97:10,15 98:4

99:16 100:5 102:1

114:5 132:18

195:6,9,21 197:11

201:9 224:19

225:21 227:6

237:8 242:10

251:18

Delaura 2:19 48:14

48:15 120:22

133:11 134:2

159:12 165:20

166:18 168:17,19

168:22 194:17

216:2 222:6

223:19 236:8

257:20 268:8

309:21 310:4

401:13

delay 90:21

delays 68:15 72:15

73:11

deliver 58:4 64:15

73:11,18 90:4

deliveries 252:19

delivering 52:6

118:15 132:16

delivery 203:6

delving 284:1

demand 16:19 49:2

55:17 56:7,15,20

133:20 216:10

274:20 304:15

318:10,12,14

319:5,6,9,10,16,21

320:5,7 321:14,15

321:17,22 322:5,9

385:17

demanding 26:1

132:11

demographics 33:5

department 1:3,14

1:14,25 2:9 3:4,8

5:13 7:15 8:21

12:1 13:7 16:13

18:9,15 38:13

46:16 54:11 57:22

70:19 77:3,8 78:16

79:17 80:1 82:8

86:20,22 87:2

90:17,19 91:9 96:5

97:1 98:19 99:2

101:8 102:17

110:6 111:7 114:7

114:13 115:15

122:17 123:14

124:7 127:14

134:1 138:15,21

154:22 156:21

164:17 171:7

172:7 173:4 202:6

204:3 210:4

225:20 227:11,15

227:20 228:11

233:8 242:19

247:9 253:19

254:11 275:5,16

304:18 313:7

325:3 334:17

336:5 338:6

339:22 344:5,13

344:21 362:12

388:4 397:14

departments

115:19

department's 10:13

90:14 118:9

343:21 401:11

depend 49:10,11

dependent 309:17

315:21 317:11

369:14,18 370:2

depending 166:19

225:6 321:12

depends 321:18

depletion 14:15

deployed 59:6

Depot 287:2

depth 284:22

depths 384:15

dereg 315:9

derive 308:15

deriving 325:21

describe 9:17 18:16

85:12 115:19

162:3 336:18

described 106:14

289:20 290:12

351:18

describing 378:3

description 9:5 10:5

EERE-2008-BT-STD-0006 COMMENT 13
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Neal R. Gross and Co., Inc.

Page 418

33:6

descriptions 9:12

10:1

descriptive 7:22

descriptor 104:5

deserves 151:16

216:20

design 52:5 117:10

135:20 172:9

184:11 195:19

204:2 245:19

310:18

designed 42:19,20

80:7 396:6

designing 43:3

designs 142:1 254:9

254:11,16,20,22

255:3,6,10,14

256:3

desirability 92:2

desire 38:5 85:8

desperately 72:9

detail 19:19 91:16

122:2 187:21

243:4 270:20

382:3 387:2

detailed 9:22 18:13

102:10 122:5

247:8 270:22

351:17 380:21

386:21 387:1

404:12

details 18:15 39:16

154:18 272:4

273:20 293:12

determination 4:14

9:21 228:4 280:8

344:7 369:21

determine 61:6 98:7

116:7 169:18

193:22 240:12

282:22 283:9

301:6 302:5 351:6

364:8

determined 318:21

326:21 356:7

366:9

determines 265:19

determining 195:16

225:9 309:19

369:15

develop 266:7,22

267:12 286:2

297:14 301:19

302:14 313:12

318:6 347:1

349:10 354:21

395:6 397:4

developed 196:4

323:11 346:18

354:15 364:13

365:3 372:12

developing 142:13

249:1,11 304:17

346:12 401:1

development 18:4

149:17 152:5

develops 248:15

device 362:16

devices 160:14

devise 126:12

devoting 141:7

diagnostics 333:2,3

diagram 303:13

366:14 367:15

374:15

dialogue 6:17 119:8

139:19

dictates 167:7

died 341:5

difference 51:2

186:8 199:9

231:17 299:22

309:2,5,11 311:21

315:7 333:12

339:5 362:5

364:22 367:13

368:11,15,22

differences 22:3

52:5 289:22 290:3

290:5 344:18

345:2,4

different 19:7,22

20:21 24:4 27:1

30:14 34:22 62:17

64:14 105:11

121:20 135:16

137:15 143:3

144:11 151:14

153:20 158:6

159:5,8 161:17

162:21,22,22

163:14,21,22

167:6,7 170:10

182:15 183:22

185:17 186:9

195:2 201:4

202:13 205:16

222:9 223:5,5

225:5 226:19

229:13 245:7

252:18 264:16

268:4 283:6

286:14 288:21

291:1,18 293:7

297:13 298:1

301:16 304:20

305:22 306:1

310:11 316:16

345:9 362:10,17

362:18,19 363:8

374:13 375:11

379:5,20 381:2

differentiated

374:21

differently 135:5

153:19 156:12

202:12,12 310:12

difficult 40:10 43:1

131:14,21 159:15

271:11 293:6

317:1 355:12

difficulties 27:12

293:3

dimension 19:17

41:17

diminishing 223:18

Dingell 60:9

direct 103:17 160:7

244:15 292:20

directions 68:21

directly 23:18 150:7

247:19 286:22

directory 206:11

directs 104:3

disadvantage

146:13

disaggregated

347:22

disaggregation

352:8 370:17

378:3,12 379:13

disagree 290:22

291:6 293:20

331:20,22

disagreed 252:2

disagreement 252:5

disappointing 396:1

disconnect 48:3

321:8

disconnection 47:16

discount 303:4,16

304:1 325:14,14

325:17 326:11,16

327:3 328:11

330:10 366:11,11

368:20

discounted 376:7

discourse 88:6

discrepancy 349:7

discuss 49:6 207:13

249:5 297:2

325:13 378:21

392:11

discussed 127:2

134:4 166:3 218:8

234:18 249:7

321:2 338:4

discussing 46:20

126:22

discussion 4:19 18:7

54:18 116:19

123:21 126:20

165:10 167:18

168:1,12 175:15

181:1 228:10

264:2 292:4,5,6,13

343:22 350:16

377:22 380:22

394:10 395:21

399:20 401:4,10

401:19 403:10

discussions 41:8

188:16 254:21

292:10 349:16

394:21 398:13

disenabled 20:15

disentangle 197:20

disincentives 25:3

dispute 137:9

disruptive 11:10

dissemination

33:15

distinction 147:11

distinctions 288:16

289:2

distorted 289:15

distortions 30:18

31:21

distributing 160:10

288:20

distribution 18:2

30:11,14,18,20

31:21 33:12,14

34:5 36:17 56:10

56:17 199:17

231:13 232:9

235:13 248:19

249:21 250:10

262:12 263:3,9

264:2 274:11

285:21 286:9

287:13,15,18,19

287:20,21 288:1,7

288:10,13,17

289:5,7,11,14,19

290:3,22 291:1

292:8,10,11,18,22

293:13 295:10

297:4,15 319:13

329:5 366:6

370:21 371:11,22

372:5 382:13

distributions 371:4

distributor 32:17

32:18 33:7,13

180:7 241:6

262:14 286:12

288:19 291:13

394:19

EERE-2008-BT-STD-0006 COMMENT 13
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Page 419

distributors 3:13,17

18:6 23:2,4 27:5

27:10 28:5 29:22

30:3 32:15 43:22

232:9 235:14

252:14 295:22

distributor's 198:18

distributor-contr...

294:5

dive 177:18

diverged 359:21

diverse 23:7

division 311:14

doable 119:17

dock 285:15

docket 60:7 64:20

79:17 83:7,11

86:20

docks 353:15

document 14:2

19:15 30:9,13 32:6

32:7 64:2 66:7

67:14,19 68:12

80:2,8 81:20,21

83:8,10,19 91:11

109:15 128:10

176:18 179:14

193:13 219:13

259:7 265:2

270:17 271:6

280:4 350:3 361:7

376:6 393:20

documentation

114:7

documented 190:15

documents 91:13

386:20

DOE 15:1,3,8,13

16:8 17:6,13 19:14

24:14 30:5 31:10

31:22 47:22 52:22

53:16 59:19 60:13

60:14,20 65:19

75:5 81:1 91:17

102:8 103:17,22

104:3,8,16 105:3

105:16 106:19

108:2 109:18,20

124:18 125:7

128:12 129:11,12

131:7 133:2 139:8

139:10 141:19

142:3,11 149:1,9

149:12 152:8,8

158:2,16 159:1,5

167:11 169:14,16

169:21 170:15

171:2 172:14

176:2,7 181:9,12

181:21 183:22

184:12 190:12

191:21 192:7,18

192:22 193:13,19

194:6,8 196:4,10

197:2,4,5 201:16

202:9 205:20

210:11,14,22

211:5,17,19 212:2

212:6 219:13

220:11 221:2,6

226:11 227:3

229:6,10 230:1,8

232:5 236:17,22

238:20 240:10

243:9 248:22

249:7,10 252:6

255:3,4 256:20

257:1,4,15 261:2

261:17 265:18

267:22 276:13

280:7,21 282:19

283:5 288:15

289:4,21 290:21

294:19 295:2,14

296:2,22 304:6

305:12 308:4

319:11 323:14

325:20 326:10,18

330:21 331:10

334:20 336:10

338:17 340:15,17

347:9 355:15

356:5 358:8

361:16 371:8

380:18 386:17

387:19 388:16

389:3 390:4 391:5

391:9,16,22 392:9

392:18 393:22

395:21 396:7

403:19 404:7

DOE's 27:14 151:20

256:14 278:15

DOE/EIA 269:19

doing 6:6 8:9 35:19

53:17,22 65:4,9,15

71:16 73:7 106:6

167:13 197:5

201:15,16 221:7

222:22 228:12

236:5 274:1 302:7

304:19 310:21

321:22 326:14

342:11 361:10

362:13 398:20

dollars 366:9

domestic 23:4 181:6

182:1

Don 41:22 62:18

69:17,19,21 105:9

106:7,9 115:6

126:14,16 127:21

146:11 149:14,15

152:13,14 213:3

213:10 215:9

229:1 242:7 243:1

243:18 275:11

276:12 279:11

384:1 391:2

DONALD 1:23

Don's 82:5 392:22

door 6:5 73:14

110:18 158:18

299:8 388:1

doorbell 137:21

doorbells 136:15

doorstep 57:7

Doppel 3:6 18:18,20

22:17 74:9 93:22

93:22 95:4 122:9,9

122:19 153:15

160:3,4 161:2,7

163:12 180:12

181:21 183:7,7

205:7,7 211:8,10

211:10 264:6,12

354:2,2 395:20

doubled 283:4

Doug 5:9 64:1 78:22

82:14 98:2 130:11

141:4 180:19

230:12 262:2

360:12

Dougherty 1:18

111:20 112:5,6,12

112:17

Douglas 1:12,23

downs 195:14

downstairs 322:17

downstream 192:14

263:15

Dr 260:8

draft 160:6 161:2

180:13

drag 376:20

dramatic 336:1

dramatically 42:8

127:15 316:21

drastic 24:16

draw 216:22 239:16

345:5 398:11

drawing 238:20

drawn 237:21

238:15 243:7

drill 36:5

drilled 288:11

drink 322:19

drive 167:2 201:3

driven 19:21 26:1

180:11 339:14

driver 58:10

drives 88:15 200:8

driveway 263:18,18

driving 50:9 57:11

243:21 294:8

338:21 344:7

drop 136:4 356:7,8

dropped 114:15

136:4 359:14

drops 355:16

drums 118:3

dry 45:15 51:1

115:11 117:18

165:6 168:16

225:9 226:1

273:14 392:13

399:10

dual 189:4

duct 148:4,16 149:5

351:14 352:21,22

ducted 163:15

175:2

ductless 18:22 19:5

19:10 20:10,14

122:12 153:15,17

154:5 175:3

180:21 181:9,18

205:11 211:11

354:4

due 23:14 62:20

71:12 199:13

365:13 367:14

387:16 395:8

dump 393:21

404:11

duplicated 245:2

duplicative 85:22

dynamics 241:12

D.C 1:12 231:10

E

e 5:1,1 98:1

eager 325:6

earlier 32:7 64:1

83:13 93:8 116:4

121:8 123:2

124:18 186:4

193:13 224:21

225:8,22 234:18

284:20 290:12

305:9 321:3 358:2

365:5 378:2 388:8

393:4 403:17

earlierþ 124:20

early 14:11,21 69:1

78:6 120:17

197:16 208:4

229:4 256:13

372:19 382:2

404:17

EERE-2008-BT-STD-0006 COMMENT 13
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Neal R. Gross and Co., Inc.

Page 420

earnings 41:3

EARTHJUSTICE

3:16

easiest 206:17

easily 172:3 293:14

East 55:19 401:22

easy 321:21

echo 32:7 50:3

69:22 70:16,18

93:17 363:4

ECM 340:1

ECMs 339:20

economic 32:1,10

115:13 285:11

302:2 323:20

356:20 364:10

economically 16:6

187:11 302:6

economics 171:21

195:1,1 372:11

economies 253:13

ECONOMY 2:6

Ed 240:18

Edison 3:7,10 46:14

281:4 305:16

306:14 357:20

EDWARD 1:24

Edwards 64:12

EEI 305:16 306:16

311:11 320:19

327:6 334:13

335:15 373:14

EER 46:22 47:4,15

47:20 48:5,22

121:8 151:5 162:7

165:5 225:7 226:1

226:10,11 227:13

227:18 240:22

241:11 272:8

321:5,9,13 399:12

EERs 47:17 48:4,10

385:18,22

EER-95 227:7

effect 16:18 33:17

34:6 42:3 73:12

98:7 100:10

121:17 164:4

222:1,14 280:1,7

280:11,18,22

281:13,18 282:1

310:7 312:15

314:18,22 339:3

355:2,22 356:16

356:19 357:1

358:21 361:19

364:2 366:10

371:5 373:17,22

374:7,8,8 375:10

383:2

effective 16:2 58:14

67:8 74:15 75:19

89:1 90:6 92:14

93:1,18 94:2,17

97:8 98:21 100:3

100:15,20,21

101:16 118:16

139:19 169:13,14

176:4 201:20

214:5,7 237:22

256:17 319:17

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microphone 38:18

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mileage 161:15

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milestones 67:2

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modify 225:20

modular 180:7

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month 116:15

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network 160:11,15

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NEWPORT 2:12

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NIA 345:20 365:4

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nice 296:2 321:4

niche 189:19

night 88:21

nine 163:21,21

NIST 111:20 112:6

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NIST's 125:14

NM 170:2

nominally 219:17

noncompliant

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nonregulatory

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noon 9:16

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normal 21:17 52:17

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normalized 51:22

Normally 86:10

north 13:22 55:19

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NSTAR 55:22

number 44:12 45:7

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291:9,11 293:22

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301:1 303:17

314:14 318:2

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325:11 330:12,13

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345:16,22 353:8

354:9,13 361:2

364:5,6 375:4

377:17 380:1,8

382:11 384:18

386:2,5 387:5

391:1 396:18

404:2

old 25:5 36:1 166:6

166:6 178:21,22

269:9 275:1,9

279:17 305:13

343:13 403:1

older 15:19 338:22

once 193:9 202:4

227:21 311:20

349:12 378:9

ones 22:8 36:12

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172:12 210:14

351:13 373:17

392:12,13

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one-step 294:7

one-third 274:14

one-ton 206:12

one-to-one 181:2

ongoing 188:16

on-off 111:3

on-peak 121:22

onþ 129:20

open 14:18 50:11

51:19 77:4,5 80:3

80:4,7 101:8 146:7

158:18 390:16

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403:10

opening 4:5 8:14

9:3 13:1 45:6

260:7 393:12

openings 178:13,17

179:12

openness 46:16

opens 158:19

operate 62:5 238:12

operated 280:14

operates 225:18

272:5 294:7

operating 36:3

98:18 113:18

229:16 265:22

301:5 302:21

303:1,9 355:3,7,11

357:13 364:18

365:15 368:12

369:1,6 370:1

operation 135:18

238:8 303:2

operational 46:3

operators 17:1

opinion 282:1

291:21 344:2

404:10

opinions 220:17

opportunity 8:13

10:10 11:17,17

12:17 14:1,22

18:11 25:21 29:18

38:16 43:19 56:21

72:12 137:20

139:5,7 145:18

166:10 204:19

237:16 239:4

275:4 326:4 335:6

343:18 386:8

387:7 389:17

402:22

opposed 175:3

202:16

opposing 197:4

opposite 185:3

322:18

opted 15:18 252:4

331:21

optimistic 276:9

option 233:18

305:15 343:11

options 184:11

189:15 195:19

207:13 278:10

344:20

orange 299:2,8

oranges 291:19

orchestrate 396:15

order 1:10 73:17

116:6 119:20

203:5 286:2

organization 29:21

organizational 7:1

7:8 10:21

organizations 25:13

25:14 325:4

organize 64:7

organized 400:11

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outcome 117:16

outdated 343:13

outdistances 202:5

outdoor 219:17

220:7

outfit 299:14

outgrowth 110:11

outlet 298:8

outlines 80:2

outlook 323:16

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outputs 346:4

outset 5:17 12:10,22

13:4 52:11 61:19

outside 26:4 29:4

144:5 145:15

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overall 175:21

202:14 273:15

315:3

overlap 261:8

overlooked 34:4

overly 23:15 276:9

overseas 264:15

overstated 16:9

40:2

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overview 4:7 9:4

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owned 33:14 307:2

ownership 347:16

owns 247:3

Ozarks 245:5

ozone 14:15

o'clock 209:15

O'Connor 3:5,5

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Pacific 2:3 3:9 45:1

package 148:3,8

149:3 156:15

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packaged 211:3,7

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190:9 230:18

234:5 235:19

247:17 251:12,17

257:17 258:8

259:2,3 262:6

265:4,6 269:16

270:16 273:1

283:17 284:20

290:2 293:3,16

294:16 295:1

336:15,16 337:6

341:14 353:17

376:1 382:19

388:19 399:16

403:5

questions 10:14

12:16,21 64:4

66:15 67:13 70:20

71:3 83:13 88:20

89:5 114:18 115:5

115:10 128:3,7

129:11 132:20

138:3 153:10

158:14 194:15

204:20 230:13

283:12,13 284:14

293:15 299:21

300:9 349:19

386:19 389:8,8

391:8,16 392:9

401:5 404:13

queue 114:16

397:17

quick 8:6 106:11

133:11,12 137:9

146:12 155:17

165:20 216:2

268:8 317:9 337:6

384:20 401:13

quickly 22:6 28:12

91:12 199:6

313:10 328:13

360:13 403:18

quicksand 344:4

quite 62:2 151:4

162:10 202:12

210:1 227:19

309:11 316:20,22

362:19 394:10

quote 145:3 316:13

R

R 5:1 256:18 257:2

259:9

RABA 2:9

raise 25:14 48:10

50:12 222:3 248:2

274:21 293:17

387:7

raised 174:10

222:19 233:11

raising 158:13

222:21 245:11

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ramifications 26:8

range 59:6 143:13

205:10 228:14

334:3 339:19

ranking 60:10

ranks 54:12

rapidly 325:7

rate 177:19 303:4

303:16 309:13,16

309:20 310:10,18

312:1,2,22 316:9

325:14 328:18

329:13,13 330:2

347:15 349:11

rates 41:4 51:8

121:15,17,19

194:18 257:22

268:10 304:1,15

310:8 311:20

312:11 316:4

325:14,18 326:11

326:16 327:3

330:1,3,10 347:16

347:18 366:11

368:20

rath 388:14

rating 51:12,18,20

115:7 117:10

118:1 131:19

138:14 146:8

154:14,19 157:8

161:15 163:4

171:16 172:2

190:16 199:1

226:14 272:18,19

ratings 161:18

162:21 163:15,15

163:22

ratio 42:11 127:5

rational 72:21

rationale 184:13

264:21 402:13,20

raw 27:17

reach 67:2,3

reached 176:1

reaching 167:22

read 8:17 97:22

99:9 128:4 388:15

readiness 190:13,17

190:22

reading 22:21 33:11

106:13 332:22

reads 388:4

ready 81:21 106:12

209:22 210:8

262:3 345:18

real 17:9 67:17 88:5

92:12 137:8 166:1

168:14 188:10

199:5,19 200:9

225:11 242:11

313:10 316:2

324:9 399:13

realistic 41:11

121:13 276:7

399:3

reality 197:2 198:14

219:11

realize 34:21 73:7

87:18 158:22

207:8 229:3

356:12

realized 280:16

really 7:18 10:18

25:20 33:11 34:7

36:5 37:19 38:1

47:5 68:17 78:13

81:10 89:6 92:18

96:3,17,18 106:20

118:2 121:3,4

122:17 135:10,13

135:21 139:18

149:17 162:12

165:22 172:19

174:11 178:12

184:17 191:12

192:11 199:8

206:4 214:9 232:6

238:9 246:7

253:19 268:10

287:9,14,20,22

289:1 291:6,19

338:2 342:14

344:13 382:19

391:13 398:19

399:19 401:15

404:12

realm 152:11

reason 23:10 52:18

54:22 59:16 66:9

126:3 136:10,13

166:2 179:6

201:11 213:20

220:16 221:7

227:18 350:9

369:11

reasonable 76:11

81:11,12 106:16

138:5 166:13

221:17 279:2

reasons 35:4,19

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reflective 311:4

reflects 99:14 312:1

refrigerant 16:22

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383:11

refrigerants 17:8,10

27:20 34:12 256:9

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2:15,16 3:2,12

13:13,21 23:5

refrigerators

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refusing 383:3

refute 284:15

regard 50:17

206:21 246:9

regarding 75:16

76:22 143:17

regardless 133:13

232:11

region 31:8,8,15

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233:3 239:21

241:11,12 246:10

247:15,15 268:16

310:15 311:13

317:13 348:1,22

349:1 352:6

402:14

regional 17:14,21

17:22 26:12 28:20

30:11,17,21 31:4

31:13,18 32:1

34:15 37:6,17 43:7

43:18 44:6 45:16

47:11,12 48:18

49:8,14 50:14

51:19,20,21 52:4

59:20,22 60:3,6,12

60:15,21 62:1

92:16 115:10

138:16 163:20

167:16,20 168:4

168:12 188:17

194:21 222:13

224:22 225:3,14

228:18,22 229:4,7

229:21 232:18

233:14 236:15

237:15,19 242:13

242:14 243:12

246:10 262:10

263:1 273:2

288:17 289:2,16

289:22 290:3

292:5 293:14

307:20 309:8,9

348:6,6 353:5

370:16 379:12

391:5,7,11,14,19

393:18 395:3,17

396:2,8 397:3,22

398:17 399:8

regionality 399:5

regionalization

26:9 398:10

regionalize 25:11

26:22 291:18

regionalizing 25:17

regionally 247:19

248:5 379:4

regions 26:15 52:8

121:3,5 165:22

166:1,6,7,11,12

167:1,3,12 230:2,4

230:6,11,19 231:3

233:5,13,14

238:12 240:21

310:14,21 313:19

348:1,2 350:2,3,6

350:8,11 358:13

379:5 393:3,18

394:21 396:16

398:5 401:16,20

402:11,12

region's 47:13

Register 70:5 71:12

74:15 77:11,15

78:11 79:6 81:22

83:19,22 207:14

registration 7:4

regular 52:20

regulated 57:22

315:10

regulates 30:5

regulation 92:17

144:12 278:8

363:11 384:7

regulations 234:20

401:6

regulatory 13:12

64:21 125:4 142:5

256:7 257:3

261:16,21 278:7

315:10 400:19

401:1

reheat 149:21

reinforce 27:14

296:18

reinforced 119:20

reiterate 122:11

224:20 387:20

394:8 403:16

reject 331:21

rejected 341:18

relate 27:16

related 44:13 97:4

117:19 204:20

272:22 277:12

330:9 392:16

relates 27:6 56:8

65:17 167:20

181:18

relationship 192:12

192:13 194:1

214:12 215:8

319:7,11 320:12

relative 62:15 158:2

161:18 279:3

320:8 339:17

362:6

relatively 33:21

320:3

relaxation 71:9

relevant 103:7

108:13

reliability 56:11,13

57:1

relief 148:19 169:10

relies 346:12,13

relook 158:3

relooked 219:6

rely 240:7 369:16

389:7

remain 55:4 129:21

EERE-2008-BT-STD-0006 COMMENT 13
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represent 23:2

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representation

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representative

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request 39:1 70:10

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requesting 128:8,12

requests 5:22 6:7

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18:1 116:15,16

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required 20:11,13

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73:14 90:3,4 97:20

98:16 104:18

108:2 187:5 188:5

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22:4 34:17,18 37:6

108:10,10 110:3

229:21 244:2

298:13

requirements 42:9

43:10 48:5 65:18

93:6,7

requires 41:11

103:22 130:18

177:5 187:7

191:13

requireþ 116:14

requiring 233:18

research 13:12

106:6 186:6

281:10

Reserve 326:8

residential 1:5 5:7

13:16,19 14:3,7

15:5 16:5 55:4,7,9

63:15 141:21

144:19 149:20

200:21 204:17

266:6,7,9 304:12

304:21 305:19,20

316:1,11 318:9

325:17,20 347:5

351:2

residents 236:12

resistance 51:11

218:3,7 356:11

358:16

resisted 157:19

resolution 234:9

resolved 123:18

234:5 394:11

403:18

resource 329:17

RESOURCES 2:21

respect 54:1 105:13

129:7 132:20

166:16 168:6

172:6 233:12

258:19 334:9

395:8 400:18

respective 402:19

respond 67:12

70:22 85:14 96:16

99:3 108:7 111:9

120:12 262:18

313:10 316:19

responding 144:17

response 30:9 62:1

62:12 237:5

284:16 311:7

325:8 330:11

354:12 380:7

responses 130:14,15

289:17 404:12

responsibility

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responsible 29:8

125:13

rest 68:8 296:12

330:15 353:2

restrictions 80:16

81:2 150:19

restrictive 230:6

result 15:7 58:13

88:6 163:12 175:5

242:1

resulting 372:7

395:12

results 50:9 71:21

193:14 272:13

295:11 394:4

resume 139:22

208:17 209:7

323:1

retail 241:4 293:5,9

298:21

retailer 287:1 298:8

retaining 372:4

retirement 348:9

retires 146:9

retroactively

253:16

retrofit 335:21

336:6

retrospective

197:12 198:2,6

199:20 201:11,12

return 61:16 140:11

144:14 168:6

208:14,16 209:11

224:10 271:15

returns 223:18

revamp 116:22

reverse 193:5 197:6

248:14

review 4:4 7:10

8:10,11 15:8 28:13

75:8 175:14

reviewed 317:20

reviews 68:7

revise 78:15,15

revised 103:19

revision 114:8

revisit 203:9

rewrite 243:15

re-analysis 68:20

re-evaluate 116:12

116:13

re-huddle 125:20

re-trod 232:19

RHEEM 1:20

Richmond 288:19

288:22

right 6:16 7:17 8:10

24:19 26:12 33:3

36:22 43:7 49:15

66:2 73:7 74:7

78:8 85:5 88:9

100:2 109:1,13

110:10,17 125:19

126:9 128:6

143:18 159:14,16

166:10 179:19

182:7,9,13 183:3

188:9 190:5

202:17 210:10

216:4 225:3,16

227:9 247:11

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rooms 20:4 358:22

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354:13 361:5

364:6 376:12

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234:14,15,15

281:2,3,3 306:12

306:13,14 314:11

315:18,19 320:17

320:18,18 322:8

322:11 327:5,5

328:6,10 334:11

334:12,12 335:14

335:14 357:18,19

357:19 373:12,13

373:13 385:5,14

386:3 387:12,13

387:14

round 10:7 42:2

119:4 199:6

205:19

route 146:18 154:19

routine 330:21

331:5

RPS 385:7,8

rule 14:19 16:18

67:7 84:10 90:5

98:5,10,14,15

100:10,15 103:11

104:20 105:4,5

107:11,12 109:20

120:3,13 124:2,4

149:19 162:19

163:13 170:19

181:7 185:11

188:4 219:2

256:14 258:9,15

277:9 310:7

314:18,21 397:2

rulemaking 4:7,18

6:13 9:4 10:6

14:18,21 15:4,6

19:3 23:16 29:9

30:10 32:21 37:10

53:15 54:8,10,12

54:21 56:6 58:13

59:17,18 60:1,5,15

62:22 63:3,7 67:5

79:22 103:5 141:9

144:5,21 146:15

149:2 169:16

181:12 192:21

193:22 196:1,6

198:10 214:14

215:17 218:9

227:4,10 228:5,13

252:1 256:14

258:18 262:16

265:4 266:17

268:3 282:16

310:6 321:2 327:9

331:19 333:13

340:15 355:15

357:5 363:14

380:15 383:10,14

395:18 397:4

rulemakings 35:12

53:6,10 175:15

319:12 325:20

326:18

ruler 107:1

rules 175:16 229:6

229:16 243:10

318:18 395:13

rule-making 65:10

81:14 97:20

100:16 104:7,21

105:7 116:17

131:12

rule-makings 92:9

ruling 383:2

run 8:6 20:16,18

21:10,17 62:6

111:5 279:13

280:13 281:5,8

running 41:13

384:15

runs 135:20 193:12

rust 360:21

R&D 152:12 188:7

R-22 256:10,12,18

256:22 257:9,17

259:10 339:8

362:15

R-410A 256:11

257:10 339:10

S

S 5:1

Sachs 2:6 49:18,20

49:20 71:7,8 96:1

114:22 115:22

117:7 119:2,5

136:3 138:1,2

139:2 147:6,6

154:10 155:1

157:2,14 171:13

189:12,12 232:22

255:7,8,17,20

271:15,18 272:3

272:17 292:16

293:22 294:15,19

295:2 324:17,17

332:11,16 343:15

343:16,17 362:3,4

362:4 363:16,19

374:12 381:13,14

381:15 383:18

399:15

Sachsþ 115:1

safety 52:7 127:3,8

136:14,14 137:11

191:18

SAGAN 2:17

sale 180:10

sales 15:16,17,21

24:9 41:3 93:3

302:12 308:13

347:7,8 355:4

356:7,9 358:4,12

359:14,16 360:3

377:4

Salt 399:22

samples 266:8,8

sandwich 209:1

satisfy 117:18

saturation 347:15

347:18

save 203:4 248:3

275:4 404:20

saved 223:21

saving 16:8 276:13

savings 41:4 54:15

59:4 100:20,21

158:21 224:1,2

226:13 237:22

247:20 266:4

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saying 99:20 111:18

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sayþ 89:9

SBA 258:19

scale 189:16 253:13

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scenarios 261:16

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schedule 53:18,18

54:2 65:11 67:17

81:18 92:11 125:7

173:17 208:13

scheduled 95:20

schedules 82:2

Schmidt 1:24

240:18,18

science 91:5

scope 144:5,20

145:16 146:14,15

180:13 263:19

scrapped 275:19

scratch 92:19

screening 4:10 9:10

65:22 140:16

141:1,16 185:9

187:1 191:8 192:5

SDHV 169:8,17,22

170:5,15 172:6

173:7 212:7

218:15,19 219:3

219:14,19

search 355:9

Sears 287:1 299:15

season 76:2,3,12

89:4 93:5,13

SEC 249:2

second 42:17 50:3

58:20 65:13 77:13

94:10 97:19

111:18 131:7

139:3 156:9

165:11 218:14

271:16 283:17

284:18 292:7

308:3 331:6

secondly 26:7 28:18

50:13

seconds 11:9 136:18

secretary 98:4

230:8 233:3

239:13 397:3

section 98:1 109:6,7

109:16 128:10

174:11 205:20

229:22 258:1

263:7,8 342:18

386:13

sections 280:3

sector 324:22

350:18

Security 103:16

securityþ 91:18

see 22:7,8,14 36:6

36:20 48:13 61:14

64:3 86:18 87:21

88:4 90:10,21

92:21 99:16 106:3

108:16 116:9,16

130:22 131:13

155:13 164:20

170:19 172:7

183:1,5 185:18

197:12 198:13

203:13 204:20

209:15 219:7

222:16 232:12

235:4 237:2 244:1

253:19 271:12

275:6 279:12

282:6 286:11

288:2 302:8

307:21 311:20

312:15 317:18

323:21 352:17

353:4,6 355:9

356:16 370:11

371:6,10,16 376:5

378:21 380:8

383:1 389:3

392:19 395:10

398:5,12 399:8

400:22 403:2,9

seeing 23:13 24:10

59:10 142:21

311:22

seek 331:18

seeking 212:4

seeks 267:22 331:10

340:17

seen 15:4 22:3

23:17 24:15 151:1

157:10 247:21

321:8 338:20

372:18

SEER 15:12 16:1

17:2,4 26:13 36:1

36:1,1,2,3,3,4,4,4

43:2,4,11 46:22

47:1,19 48:3,11

51:22 58:12 59:5

59:14 93:10

112:13 117:20

148:18,21 150:12

151:5 158:11,12

162:4,18 163:15

165:5 169:11

170:19 171:21

175:8,9,17 176:7

179:1 185:15,15

192:12 196:19

200:6 206:1

210:20,20 211:1,2

211:6,6,12 214:1

214:18 215:8

219:16 220:13,16

221:3 223:13

224:22 226:14

227:12,14,18

228:2 229:10

245:11 246:21

251:12,15 252:17

254:4 267:7,11

270:1,3,5 271:19

272:1,4,6,10,11,18

272:19,22 273:16

274:3 275:17

277:19 321:5,9,9

321:14 322:6

337:16 364:2

371:14,16,20

372:3 373:6,18,19

403:2

SEERs 47:17 48:1,2

59:10 224:8

373:20 374:4

segment 23:18

153:20 292:2

307:3

seize 11:16

select 91:1 245:7,20

selecting 343:2

selectively 85:14

self 333:4

sell 36:14,16 57:19

89:2 218:1

selling 24:18 180:7

192:10 248:15,16

285:14 302:11

sells 216:12 286:18

Senate 16:15

send 335:8 388:12

sending 90:22

sense 34:16 73:6,15

106:21 147:7

166:14,14 203:1,3

214:2,3,7 225:12

233:20,22 234:21

240:9 286:15,22

401:17,18

senseless 291:2

sensible 42:10,11

127:5 150:8 151:3

151:6,12

sensitivities 31:3,9

31:11

sensitivity 190:7

279:13 312:20

313:8 355:4,11

357:8,12

separate 19:5 20:19

22:7 48:16 104:6

150:4,16,17

151:16 153:18

154:7 161:9

169:17 170:8,9,13

170:14,21 172:4

183:13 205:13

213:7 219:13

220:3 234:20

249:22 278:6

282:19 284:1

291:15

separately 301:8

384:10

sequence 115:20

series 7:22 9:22

30:22 63:8 121:14

295:9 364:14,17

366:10,12

serious 24:19 25:3,8

26:21 45:14

112:16 174:13

260:11,12

EERE-2008-BT-STD-0006 COMMENT 13
202-234-4433

Neal R. Gross and Co., Inc.

Page 445

servant 81:1 344:11

serve 33:2 45:22

77:7,8 162:13

203:20 313:20

served 163:8

serves 51:9 298:18

service 55:22

137:19 138:3,8

157:5,11,17

191:16 340:6

344:10

serving 26:3 29:22

246:13 367:2

session 289:13

339:9

set 16:16 25:21

65:18 68:4 81:5

82:7,12 83:7 85:1

125:8 127:7

146:17 152:4,19

154:16 180:4

207:1 221:2

227:11 228:14

229:9 239:4

307:12 379:7

383:3 391:14

sets 196:1 347:21

setting 104:5 152:15

216:5 236:6 282:7

settle 140:20

seven 41:6 66:1

187:6 191:13

209:15 269:8

275:3 305:13

severe 21:6

severely 15:13 95:9

shadow 271:12

shape 221:15

shapes 34:22

share 11:12 72:13

182:2 370:22

371:1 379:14

shared 110:19

shares 172:8

sharper 87:9

sharply 359:21

shift 371:21,22

373:8 375:16

379:4

shifting 82:15

115:12

ship 200:7 250:4

shipment 143:5

264:14 277:11

346:2,6,18,22

369:10 372:7

376:2 379:11

shipments 4:17 10:2

142:4 143:2 172:8

250:16 261:20

277:12 282:12,21

290:10,13 345:20

346:9,11,12,14,15

346:19 347:2,3,5,7

347:11 348:5,8,15

348:17,20 349:7

349:13 350:16

351:1,5,6,8,17,20

352:1,4 353:14

354:10,15,17,21

355:16,21 356:9

361:4,9,10,15

365:4,5,6 366:17

366:18,19,21

367:18,21

shipped 353:16

376:10

shop 322:16

short 67:12 69:5

72:9 74:14 98:1

220:14 322:16

shorter 287:4

shortfall 259:17

shortly 69:6 139:7

short-term 329:11

391:16

shoved 335:20

show 109:12 111:13

150:9 182:15,19

267:3 354:4

388:16

showed 23:21 187:6

219:15 227:20

324:9

showing 7:13

shown 344:5

shows 15:15 97:12

162:17 219:14

286:8 313:14

350:2 370:12

side 36:17 58:18

60:10,12 76:10,14

113:9 209:6 253:7

303:12 321:21

322:18 332:19

367:8 368:7

382:21 385:2

390:4

signature 64:18

significant 24:5

57:19 59:3,8 70:8

145:17 182:3,19

224:14 228:2

231:16 232:1

258:15,18 272:22

277:8

significantly 15:17

15:22 19:6 68:10

224:10 284:4

311:18 320:10,16

silent 11:6

similar 167:4,5

174:22 235:2

325:18

simple 20:16 153:3

192:22 244:8

301:11

Simpler 304:16

simplicity 220:15

simplified 263:16

simplify 126:20

simply 7:6 39:15

40:1 46:4 62:2

87:15 90:2 145:14

204:16 247:18

269:22 272:10

328:20 331:1

346:9 353:14

360:9 394:3

simplyþ 114:10

simulation 283:2,6

283:11

simulations 401:3

Simultaneous

107:14 147:4

sine 59:9 380:20

single 44:15 55:6

86:8 148:3 149:3

156:15 194:5

219:22 284:8

291:16 297:7

347:11 351:14

sinusoidal 217:1,1

sir 116:1

sit 88:17 289:10

297:1 343:18

site 96:6 109:6

366:1 367:10,11

sits 136:16

sitting 78:7 130:15

138:18

situation 99:13

177:2 217:7

356:13 362:1

sit-down 289:13

six 8:20 40:19 79:6

80:6 160:21 275:3

301:9 312:17

313:3 314:10

357:10 385:7

size 27:6,8,17 33:5

153:21,22 205:14

206:4,16 211:1

237:13 335:17,22

398:22

sized 219:17

sizes 253:14 333:17

398:18

sizing 277:5

skip 380:14,21

382:5

skipping 385:6

skyrocket 17:10

slide 65:8,16 66:14

66:22 97:11,14,16

98:22 105:1

106:17 107:18,20

108:4 124:12

126:15 127:22

147:19 186:7

195:7 204:20

224:16,20 228:22

244:17 265:9

271:15 282:18

283:12 286:5,8

287:8,9,11,22

288:12 289:3

317:4,18 349:20

350:14 354:14

361:5 369:8

370:18 377:20

381:3 385:11

slides 8:1 9:14

12:11,14,20 63:1

97:11 102:19

155:19 180:2

187:6 207:2 301:9

386:12

slightly 256:22

286:14 374:13

slope 305:6

slow 33:10,22

small 32:17 148:4

148:16 149:4

181:5,22 200:13

205:3 220:5

258:10,11 282:2

283:3,8,16 327:10

327:12,19 328:2

351:14 352:22

354:5

smaller 194:12

205:15 231:22

339:8,9

smallest 206:10

335:20

smarter 333:3

smoothly 53:13

snail 64:11,15

snap 359:2

soapbox 159:12

society 260:13

soft 322:19

sold 127:5 171:19

215:4 373:21

374:4,10

solely 35:11 296:19

solution 28:16

56:19 87:20

167:21 235:19,20

EERE-2008-BT-STD-0006 COMMENT 13
202-234-4433

Neal R. Gross and Co., Inc.

Page 446

236:1,9

SOLUTIONS 3:15

solve 89:6

Somasundaram

103:4 107:11,15

108:9 109:14

111:11 124:17

128:6,20 129:19

265:10 268:17

269:4,15 270:11

270:21 271:9,17

272:2,9 273:8,18

276:2 277:10

278:5 279:9 280:2

282:11 285:9

289:17 297:10,21

298:11 299:20

300:13,16,19

301:1 330:16

336:20 337:2,22

340:10 345:19

SOMASUNDER...

3:9 103:3

somebody 87:15

133:22 159:7

182:13 201:13

297:11 339:6

somewhat 23:11

28:2 33:19 328:1

soon 46:18 208:7

388:15 404:16

sooner 88:7

sophisticated 331:4

sorry 6:9 39:3 79:2

83:6 114:16

128:20 185:2

255:20 261:5

263:12 337:10

385:19 386:4

399:2

sort 19:9 44:1,2

65:16 77:4 88:14

136:6 154:4

191:10 194:17

197:12 229:5

235:22 238:6

276:7 281:9

287:10 318:18

324:15 356:12,16

374:1,6 396:15

402:3

sorts 42:14 122:1

384:9

sound 398:3

sounds 34:20

source 37:3 40:21

102:21 266:11

366:4 367:10,12

sources 144:1

193:17 286:5

304:20 346:13

south 164:6 238:14

348:3

Southern 1:23 2:19

3:6 42:1 45:13

48:17 58:5 69:20

106:10 126:17

149:16 278:19

so-called 138:6

175:19

soþ 75:11

space 13:20 148:6

149:6,20 150:18

175:2,21 212:8

218:15 250:8

280:19 335:17

336:7 351:15

space-constrained

175:19 176:13

span 20:18 71:22

spare 22:20

speak 8:21 10:19

11:21 13:4 28:10

29:18 38:14 49:18

76:10 108:22

117:21 120:20

133:18 353:13

381:5 382:17

speaker 123:11

speaking 18:20,21

50:8 74:21 134:7,8

234:11 250:21

260:19 314:1,3

337:9 383:17

speaks 38:21 401:20

spec 286:16

special 178:2

261:13

specific 12:15 27:4

36:21 43:20 64:6

110:2,2 114:18

121:4 128:2

129:17 130:18,21

131:2 184:19,20

185:4 194:14

195:19 203:15

230:18 261:22

268:16 290:10

310:15,21 323:12

334:19 337:3

355:16,17 404:12

specifically 42:20

60:17 92:15

108:11,14 119:13

122:18 128:11

214:11 250:16

326:18 327:17

365:12 382:18

401:20

specifications 172:9

specifics 18:16

119:9,14 120:16

122:17

specifies 100:6

speculating 383:5

speculative 315:13

392:2

speed 21:11,14

160:9 164:9

212:14 244:9

245:13 246:20,22

spend 296:11

315:14

spent 174:7 397:19

split 148:2,8 149:3

174:20 175:7

180:21 181:11,14

194:5 206:12

210:18 211:2

215:12 231:4,8,15

232:7 284:2,6

347:11 351:13

splits 122:12,13

153:18 156:11

181:3,10,19

183:11,13

split-system 33:18

spoke 55:16 80:11

spoken 43:22 63:11

381:4

spot 294:17

sprayed 147:9

spread 373:1

spreading 164:21

spreadsheet 301:3

301:19

spring 102:13

Sriram 3:9 103:1,4

107:9 111:10

119:17 124:15

128:4 262:3 265:9

303:18 305:9

322:13 330:14

Sriram's 102:21

St 273:11

stack 109:5

stacked 95:19

staff 53:20 80:11,12

80:22 87:15 102:7

278:20

stage 81:9 186:17

219:22 245:13

278:7 285:10,17

stages 266:16

stakeholders 14:22

82:13 91:1 142:12

348:16 352:1,4

355:18 361:17

376:16 389:3

stance 397:22

standard 15:7 16:1

16:4 17:12,14,17

17:22 18:1 21:1

24:3 27:15 31:18

37:6,13,17,17 42:8

42:12,21 43:5 44:6

44:15,16 49:8

58:12,16,20 59:1,3

75:19 76:1 85:13

93:14 104:4,7

113:17 117:4

119:21 120:4

129:5 133:3,6

146:5 148:1,17

152:3,16,20 158:4

158:15,16 159:10

160:7 161:3 163:4

166:20 169:15,19

170:9,14,22 171:8

180:13 184:17,18

184:22 185:1

194:21 197:22

201:22 202:2

220:13 222:13

225:2,14 226:21

227:11 228:17

229:22 230:2,7

236:10,11,15

237:14,19 239:1,6

239:6,18 242:14

243:13,14,21

244:2 245:12

246:10,16 247:15

247:16,18 248:2

250:6 251:13

276:14 282:6

288:14 291:17,18

302:6 319:1

354:16 355:17

356:6,19 357:3

361:10 362:5

365:14 367:5,14

368:13,18 369:7

371:3,4,15 372:2

372:11 373:18,22

374:9 375:9

376:22 396:2

398:17

standards 1:15,18

3:21 17:21 25:11

28:21 30:11,17,21

31:4,13,15 32:1

34:15 38:5 42:4,14

43:8,10,18 45:8,9

45:16,20 48:19

49:14 50:14 51:20

52:14 53:3 54:12

57:10 59:20,22

60:4,7,13,16,21

61:3,4 63:15 92:16

EERE-2008-BT-STD-0006 COMMENT 13
202-234-4433

Neal R. Gross and Co., Inc.

Page 447

98:7 103:5,18

104:6,21 105:7

127:7 133:5

138:16 146:17

147:20 148:21

153:8 167:16,20

168:4 169:11

171:6 175:4 176:4

179:1 188:17

193:1 197:21

216:6 222:13

225:4 228:18,22

229:5,8 230:1,5

232:18 233:15,19

237:16,19 239:2,4

240:4 241:20

242:4,13 245:16

246:8 256:17

262:10 263:2

273:2 279:19

288:18 289:3,16

307:20 309:8

319:11 346:11

347:3 349:16

354:18,21 355:2,6

357:1 361:3,8,14

362:2 364:11

365:1,2 367:8,9,20

368:7,10,16 370:7

370:19,20 372:13

372:19 374:10

375:11 376:1

391:6,7,11,14,19

395:3 396:8 397:3

399:8

standby 104:1,8,13

105:13,18 108:3

108:14 109:8,19

110:4 112:9,17

113:7,17 114:6

128:13,14,15

129:2 131:9

132:14 133:12,13

134:20 135:10,21

136:7,15 137:5,12

139:12

standpoint 125:3,4

198:18 383:11

stands 54:22

stand-alone 131:11

Stanga 2:23 179:21

179:22

Star 26:11,13,15,18

26:20 27:1 47:18

47:21 59:9 210:15

210:19 222:17,18

278:11 356:3

start 5:15 11:18

38:18 44:9 100:13

128:1 140:13

187:8 188:5 219:4

220:6 268:6

283:22 338:13

346:8 350:5

366:17 388:15

394:20 400:4

403:21

started 89:15

214:22 373:6

startedþ 68:19

starting 68:12 92:18

126:6,7,8 304:2

359:8 367:18

380:12 395:9,15

398:18 403:4

starts 347:14

391:15

Stas 1:25 99:7,8,8

100:2 102:8,8

152:7,8,8

state 31:5,7 34:18

35:1 44:3 80:11,13

80:13,17 81:2,4

127:1,10 138:9

162:8 168:21

181:9 187:17

216:8 224:7

229:14 237:10

238:22 239:5,8,9

239:11,15,18

240:14 241:21

243:7,10 311:14

335:5 350:6 352:8

398:17,20,21

399:1,6 401:21

stated 35:5 116:4

196:14 387:10

statement 8:18

159:13 167:14

280:6 296:18

332:15 344:22

statements 8:3

65:14 219:7 229:6

363:6

states 1:1 31:17,19

41:6 44:8 80:11

109:8 127:17

155:15 230:9

231:21 233:15,16

234:11 237:15

239:3,20 240:12

240:15 242:2,13

243:12 245:2

288:21 311:15

350:8 385:7,7

392:11 401:21

state-by-state 34:16

274:1

static 51:3 121:13

statistic 359:22

statistical 231:12

stature 25:15

statute 99:12 106:4

236:21 238:1

243:6

statutory 65:14

110:14

stay 82:17 87:5

124:13 191:4

209:16 210:5

323:7 385:22

stays 321:13

steady 162:8

stealing 40:14

steel 344:4

step 14:20 15:8

197:7 202:16

250:10 265:14,18

266:5 278:13

280:2,22 285:18

287:4 297:7 301:2

345:20 349:3

stepping 197:17

steps 124:10 125:8

265:12,16 286:11

303:11

Steve 3:10 46:12,13

234:14,15 281:2,3

306:12,13 314:11

315:18 320:17,18

327:3,5 334:11,12

335:13,14 357:18

357:19 373:12,13

385:4 387:12,13

STG&E 48:18

stick 82:1 88:8

279:17

sticking 53:17

stipulate 101:13

stipulated 101:14

101:16

stochastic 301:14

stock 267:7 348:12

348:14 364:15,19

365:8 366:22

367:4 368:1,5,9

stocking 93:6

stop 51:15 116:19

323:21

store 287:3 299:2

stores 297:17

stories 252:15

straight 65:1 155:1

180:4 218:2 293:4

straightforward

139:18

strange 129:11

strangely 176:20

straw 182:12

strawman 399:19

400:3

stream 68:14 188:9

213:5 248:17

streams 325:15

street 36:6

stress 203:4

stresses 236:4

stretch 168:4

strict 69:3

strictly 152:12

293:9

strike 49:7

strikes 91:4 114:5

114:10 115:4

striking 71:15

strikingly 186:9

stringency 117:16

117:17

strip 284:10

strong 51:1 360:6

398:9

stronger 42:6

strongly 58:15

78:13 171:3

188:19

struck 324:12

structure 261:7

308:1 309:13,16

309:20 312:1,2

studies 204:4

398:21

study 17:6 335:5

362:21 384:15

399:4

stuff 90:22 101:13

165:4 208:19

345:13 353:20

400:8

stumped 177:12

397:22

sub 112:7,10 337:20

subcategories

160:17

subgroups 261:14

subject 31:3 37:9

54:3,4 179:18

314:20 315:8

361:18 378:17

381:2

submission 64:19

77:11 97:3

submissions 8:4

submit 16:10 32:3

64:9 122:3 133:22

171:9 173:22

237:20 247:9

258:2 289:6 344:2

386:18 388:7

389:9 390:14

submitted 83:9

EERE-2008-BT-STD-0006 COMMENT 13
202-234-4433

Neal R. Gross and Co., Inc.

Page 448

84:16,18 130:13

196:2 341:15

377:6

submitting 143:17

335:11 341:19

subpart 103:14

subsequent 59:5

66:8,19 71:13

268:18 277:13

substance 188:2

substantial 189:16

substantially 151:2

substitute 77:15

substituting 358:5

substitution 357:22

358:14 359:4

substitutions 359:9

subtle 275:12

subtracts 189:2

subverting 171:21

sub-distribution

30:22

success 231:2

successful 18:4

succinct 173:18

sucks 136:16

suddenly 132:21

sufficiently 304:17

sugar 140:7

suggest 76:7 81:8

124:11 139:21

147:18 150:15

154:18,22 157:17

189:9 190:12

207:4 208:16

225:20 264:11

265:8 297:9

300:11 307:13

310:2 322:15

390:1 392:6

suggested 219:9

382:12 393:12

396:13

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410A 256:19 259:10

362:8,17 363:7

42 97:18 381:3

43 287:8,11,22

430 103:14

45 35:13 241:10

450 23:3

46 23:22

47 271:16

5

5 4:3 36:3 179:1

5A 255:2

5.3 194:2 200:17

5.9 259:2,4

50 14:9 40:17 45:3

57:5 280:19

316:13 350:8

398:21

55 70:20 88:20

6

6 36:4 179:1

6-5 284:18

6.8 148:21 169:11

60 63:18

60-40 63:18

62 317:18

63 4:7

69-5(e)(3)(b) 97:19

7

7 4:4 36:4

7th 65:3 67:3,11

70:22 75:16 88:15

7-1 290:2

7-2 290:9

7.0 175:9

7.1 175:8

7.4 176:8

7.7 148:18 176:8

70 307:7

72 307:4

79 15:16 378:1

8

8 36:1,2

8,760 132:12 136:17

8.2 26:13

8.5 214:1

80 37:8 112:8,9

80s 14:11 239:3

800-pound 138:17

8067 154:15 163:4

83 381:3

9

9 36:1,3

9th 207:16

9.0 211:6

9:00 1:10

9:03 5:2

90 13:18 37:8 397:1

90s 239:3

98 56:3 241:8

EERE-2008-BT-STD-0006 COMMENT 13
EERE-2008-BT-STD-0006 COMMENT 13