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- i CHAPTER 1. INTRODUCTION

TABLE OF CONTENTS

1.1 PURPOSE OF THE DOCUMENT

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1.2 PROCESS FOR AMENDED ENERGY CONSERVATION STANDARDS FOR ASHRAE EQUIPMENT

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1.3 STRUCTURE OF THIS DOCUMENT

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- 1 1.1 PURPOSE OF THE DOCUMENT

This technical support document (TSD) is a stand

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

- Conditioning Engineers (ASHRAE)/ Illuminating Engineering Society of North America (IESNA) Standard 90.1

- 2010 Energy S tandard for Buildings Except Low

- Rise Residential Buildings (ASHRAE Standard 90.1

- 2010).

1.2 PROCESS FOR AMENDED ENERGY CONSERVATION STANDARDS FOR ASHRAE EQUIPMENT

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

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

- 6317) Of particular relevance for this rulemaking is 42 U.S.C 6313(a)(6) which dire cts DOE, in the event that ASHRAE Standard 90.1 is amended for certain types of commercial and industrial equipment, to adopt that efficiency level unless clear and convincing evidence supports a determination that adopting a more stringent level would pro duce significant additional energy savings and is technologically feasible and economically justified.

On October 29, 2010, American Society of Heating, Refrigeration and Air

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

- 2010 (hereinafter referred to as ASHRAE Standard 90.1

- 2010), which addressed efficiency levels for certain categories of commercial heating, ventilating
, and air

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

- 2007 for certain equipment, such as water

- cooled and evaporatively

- cooled air conditioning and heating equipment and water

- source variable refrigerant flow (VRF) systems with a cooling capacity less than 17,000 Btu/h. The standard also created new energy efficiency levels for water

- source VRF systems with a cooling capacity greater than or equal to 135,000 Btu/h and for air conditioners and condensing units serving computer room s 2 , which were previously uncovered by DOE’s energy conservation standards.

EPCA also requires DOE to amend the test procedures for certain ASHRAE equipment
, which manufacturers are required to use in order to certify compliance with energy conservation

1 This Part was subsequently redesignated as Part A

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

- 58. 2 ASHRAE Standard 90.1

- 2010 refers to this equipment as “air conditioners and condensing units serving computer

roo ms.” DOE refers to this equipment class “computer room air conditioners” throughout this document.1

- 2 s tandards mandated under EPCA, to be consistent with the amended industry test procedure in ASHRAE Standard 90.1 unless clear and convincing evidence suggests that the test procedure does not reflect the energy efficiency, energy use, and estimated operatin g costs of the equipment and is unduly burdensome to conduct (42 U.S.C 6314(a)(2)

- (4)).

ASHRAE Standard 90.1

- 2010 updated its referenced test procedure for small commercial package air conditioning and heating equipment (AHRI 210/240), large and very lar ge commercial package air conditioning and heating equipment (AHRI 340/360), commercial

warm

- air furnaces (Underwriters Laboratories (UL) 727 and ANSI Z21.47), and commercial water heaters (ANSI Z21.10.3). These test procedures were updated to the current version at the time of the publication of ASHRAE Standard 90.1

- 2010. ASHRAE also specifies AHRI 390

- 2003 as the test procedure for single package vertical air conditioner s and single package vertical hea t pumps, ASHRAE 127

- 2007 as the test procedure for th e new equipment class of air conditioners and condensing units serving computer rooms
, and AHRI 1230

- 2010 as the test procedure for VRF systems
, which were previously tested under AHRI 210/240 and AHRI 340/360.

The Energy Independence and Security Act of 2007 (EISA 2007) further amended EPCA by setting definitions and minimum energy conservation standards for single package vertical air conditioners (SPVACs) and single package vertical heat pumps (SPVHPs) (42 U.S.C

. 6313(a)(10)(B)). EISA 2007 also amended EPCA to include a provision specifically for these equipment classes (and no others), which required DOE to review the most recently published ASHRAE Standard 90.1 in accordance with the procedures established for ASHRAE products under paragraph 42 U.S.C. 63131(a)(6). (42 U.S.C. 6313(a)(10)(B)) . DOE is currently analyzing SPVACs and SPVHPs as part of a separate rulemaking; t hus, although they are ASHRAE equipment, they are not discussed further in this document

. On May 5, 2011, DOE published a notice of d ata availability (May 2011 NODA) and request for public comment in the Federal Register as a preliminary step pursuant to EPCA’s requirements for DOE to consider amended energy conservation standards for certain types of commercial equipment covered by ASH RAE Standard 90.1. 76 FR 25622. Specifically, the May 2011 NODA presented for public comment DOE’s analysis of the potential energy savings estimates for amended national energy conservation standards for types of commercial equipment based on: (1) the mod ified efficiency levels contained within ASHRAE Standard 90.1

- 2010; and (2) more

- stringent efficiency levels. DOE has described these analyses and preliminary conclusions and sought input from interested parties, including the submission of data and other relevant information. Also, the May 2011 NODA presented DOE’s analysis about the changes for the new and amended test procedures for ASHRAE equipment and asked for comment from the stakeholders about the potential effects of these changes.1

- 3 After receiving public comment on the May 2011 NODA, DOE revised its analysis for the ASHRAE equipment under review (water

- cooled and evaporatively

- cooled air conditioning and heating equipment, water

- source VRF heat pumps with a cooling capacity less than 17,000 Btu/h, water

- source VRF heat pumps with a cooling capacity greater than or equal to 135,000 Btu/h, and computer room air conditioners) used in the NODA and summarized the assumptions and presents the results in this TSD. In addition, DOE conducted several other a nalyses in preparation for publishing this notice of proposed rulemaking (NOPR) and TSD for the ASHRAE equipment under review . A list of the analyses and the corresponding c hapter number is presented in the next section.

1.3 STRUCTURE OF THIS DOCUMENT

This NO PR TSD outlines the analytical approaches used in this rulemaking. The TSD consists of 11 chapters:

Chapter 1 Introduction: Provides an overview of process to amend energy conservation standards for ASHRAE equipment and outlines the structure of the document.

Chapter 2 Market Assessment: Characterizes the market for water

- cooled and evaporatively

- cooled air cond itioners, water

- source variable refrigerant flow systems, and air conditioners and computer room air conditioners

. Chapter 3 Engineering Analysis: Discusses the methods used for developing the price

- efficiency relationship for computer room air conditione rs.
Chapter 4 Energy Use Characterization: Discusses the process used for generating energy use estimates for water

- cooled and evaporatively

- cooled air conditioners, variable refrigerant flow systems , and computer room air conditioners a t the current stan dard levels and at potential amended standard levels.

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

Chapter 6 Life

- Cycle Cost and Pay back Period Analysi s: Discusses the economic effects of standards on commercial customers and users of the equipment1

- 4 and compares the LCC and PBP of equipment with and without higher energy conservation standards.

Chapter 7 Shipments Analysis: Discusses t he methods used for forecasting shipments with and without higher energy conservation standards, including how equipment purchase decisions are economically influenced and modeled with econometric equations.

Chapter 8 National Impact Analysis: Discusses t he methods used for forecasting national energy consumption and national economic impacts based on annual equipment shipments and estimates of future equipment efficiency distributions in the absence and presence of higher energy conservation standards.

C hapter 9 Emissions Analysis : Discusses the environmental effect of amended energy conservation standards, including the impact on emissions of three pollutants: sulfur dioxide (SO2), nitrogen oxides (NOx), and carbon dioxide (CO2).

Chapter 10 Monetizat ion of Emission Reductions Benefits : Discusses the monetization analysis of potential emissions reductions resulting from higher energy conservation standards.

Chapter 11 Utility Impact Analysis: Discusses the effects of standards on the installed gene ration capacity of electric utilities