WHITE CONSOLIDATED INDUSTRIES, INC.

11770 BEREA ROAD

CLEVELAND, OHIO 44111-1688

TERRY V. THIELE

ASSOCIATE GENERAL COUNSEL 11 March 1999

Office of Hearings and Appeals

U.S. Department of Energy

1000 Independence Avenue, S.W.

Washington , DC 20585-0107

RE: Amana Appliances Petition for Exception Relief to the 7/1/01 Refrigerator/Freezer Energy Standards

Due to the Potential Unavailability of HFC-245fa

Dear Sir or Madam:

This is the preliminary response of White Consolidated Industries, Inc.' ("WCI"), to the Amana Appliances

("Amapa") petition submitted to the Office of Hearings and Appeals ("OHA") for exception-relief to the

7/1 /01 refrigerator/freezer energy standards promulgated by the Department of Energy under the National

Appliance Energy Conservation Act. Specifically, Amana has petitioned for relief in the form of a 10%

increase in allowable energy consumption for all classes of refrigerator/freezers under the pending energy

standards, found at 10 CFR Part 430. Amana seeks this relief from the effective date of those standards, 1

July 2001, until 1 January.2010. WCI, through its Frigidaire Home Products division, manufactures and

sells refrigerators and freezers governed by the aforementioned energy standards and, consequently, could

be aggrieved by the OHA action sought by Amana. WCI reserves the right to file additional comments at a

later date, as explained more fully below. WCI hereby certifies to the OHA our compliance with the

notification provisions of paragraph 1003.23(d).2

Amana petitions pursuant to 17 CFR Part 1003, which establishes procedures for authorizing an exception

from a Departmental rule or regulation, as provided for in § 504 (42 U.S.C. 7194) of the Department of

Energy Organization Act (42 U.S.C. 7101 et seq.), based on a demonstration of serious hardship, gross

inequity or unfair distribution of burdens. Amana claims that such a serious hardship will result from having

to comply with the aforementioned energy standards, given the unavailability of HFC-245fa. Amana argues

that the energy standard levels were justified upon the assumption that HFC-245fa would-be available and

that the Department agreed to entertain petitions for relief if the commercial availability of HFC-245fa was

delayed beyond 2003:

1 White Consolidated Industries, Inc., is a wholly owned subsidiary of AB Electrolux, headquartered in Stockholm, Sweden.

2 10 CFR Part 1003 - Sec. 1003 .23 Notice.

(a) The applicant shall send by United States mail a copy of the application and any subsequent amendments or other

documents relating to the application, or a copy from which confidential information has been deleted in accordance with §

1003.9(f), to each person who is reasonably ascertainable by the applicant as a person who would be aggrieved by the OHA

action sought.

(d) Any person submitting written comments to the 0HA with respect to an application filed under this subpart shall send a copy

of the comments, or a copy from which confidential information has been deleted in accordance with § 1003.9(f), to the applicant.

The person shall certify to the OHA that he has complied with the requirements of this paragraph. The OHA may notify other

persons participating in the proceeding of such comments and provide an opportunity for such persons to respond.

P.O. BOX 110036 • TELEPHONE (216) 252-8376 • FAX (216) 252-8158

 EE-RM-93-801 COMMENT 334

WHITE CONSOLIDATED INDUSTRIES, INC. 

11770 BEREA ROAD 

TERRY v. THIELE 

ASSOCIATE GENERAL COUNSEL 

Office of Hearings and Appeals 

U.S. Department of Energy 

1000 Independence Avenue, SW. 

Washington, DC 20585-0107 

CLEVEL.A..r-.;O, OHIO 44111-1688 

11 March 1999 

RE: Amana Appliances Petition for Exception Relief to the 7/1/01 Refrigerator/Freezer Energy Standards 

Due to the Potential Unavailability of HFC-245fa 

Dear Sir or Madam: 

This is the preliminary response of White Consolidated Industries, Inc.1 ("WC!") , to the Amana Appliances 

("Amana") petition submitted to the Office of Hearings and Appeals ("aHA") for exception" relief to the 

7/1/01 refrigerator/freezer energy standards promulgated by the Department of Energy under the National 

Appliance Energy Conservation Act. Specifically, Amana has petitioned for relief in the form of a 10% 

increase in allowable energy consumption for all classes of refrigerator/freezers under the pending energy 

standards, found at 10 CFR Part 430. Amana seeks this relief from the effective date of those standards, 1 

July 2001, until 1 January 2010. WCI, through its Frigidaire Home Products division, manufactures and 

sells refrigerators and freezers govemed by the aforementioned energy standards and, consequently, could 

be aggrieved by the aHA action sought by Amana. WCI reserves the right to file additional comments at a 

later date, as explained more fully below. WCI hereby certifies to the aHA our compliance with the 

notification provisions of paragraph 1003.23(d).2 

Amana petitions pursuant to 17 CFR Part 1003, which establishes procedures for authorizing an exception 

from a Departmental rule or regulation, as provided for in § 504 (42 U.S.C. 7194) of the Department of 

Energy Organization Act (42 U.S.C. 7101 et seq.), based on a demonstration of serious hardship,gross 

inequity or unfair distribution of burdens. Amana claims that such a serious hardship will result from having 

to comply with the aforementioned energy standards, given the unavailability of HFC-245fa. Amana argues 

• that the energy standard leve1s were justified upon the assumption that HFC-245fa would.be available and 

that the Department agreed to entertain petitions for relief if the commercial availability of HFC-245fa was 

delayed beyond 2003: 

, White Consolidated Industries, Inc., is a wholly owned subsidiary of AS Electrolux, headquartered in Stockholm, Sweden. 

210 CFR Part 1003· Sec. 1003.23 Notice. 

(a) The applicant shall send by United States mail a copy of the application and any subsequent amendments or other 

documents relating to the application, or a copy from which confidential information has been deleted in accordance with § 

1003.9(f), to each person who is reasonably ascertainable by the applicant as a person who would be aggrieved by the OHA 

action sought. 

(d) Any person submitting written comments to the OHA with respect to an application filed under this subpart shall send a copy 

of the comments, or a copy from which confidential information has been deleted in accordance with § 1003.9(f), to the applicant. 

The person shall certify to the OHA that he has complied with the requirements of this paragraph. The OHA may notify other 

persons partiCipating in the proceeding of such comments and provide an opportunity for such persons to respond. 

P.O. BOX 110036 • TELEPHONE (216) 252-8376 • FAX (216) 252-815B 

3 

.. ~ <'" 

-~ . 

...... 
WHITE CONSOLIDATED INDUSTRIES, INC.

DOE recognizes that some uncertainty still exists about the ultimate acceptability of HFC -245fa or

other comparable blowing agents, as well as some uncertainty regarding the timing of commercial

production of such a product.... Consequently, it is still possible ... that [HFC-245fa's]

commercial availability will be delayed beyond 2003 . Under such conditions, DOE may grant

manufacturers exception relief. Section 504 of the Department of Energy Organization Act

authorizes DOE to make adjustment of any rule or order issued under the Energy Policy and

Conservation Act, consistent with the other purposes of the Act, if necessary to prevent special

hardship , inequity , or unfair distribution of burdens . 42 U.S.C. Section 7194(a).

62 Fed . Reg. 23102 , 23108 (April 28, 1997).

WCI offers comments to the following statements made by Amana in support of its petition. We reserve the

right to offer additional comments as developments in the near future may warrant:

"HFC-245fa availability is at high risk. There is currently no manufacturing facility anywhere in the world

that has the capabilities to produce HFC-245fa."

We agree with this characterization of the current risk vis-a -vis HFC-245fa availability.

"Allied Signal, working through AHAM (Association of Home Appliance Manufacturers), is working to obtain

a commitment by 3/99 from the appliance industry such that Allied Signal can move forward and

commercialize HFC-245fa and start building a manufacturing facility to produce the chemical."

We agree with this statement.

"HFC-245fa would have a sole supplier (Allied Signal); and therefore, there would be no competition to

further drive the cost of this blowing agent downward as time continues to go along."

We agree with this statement.

"Allied Signal owns the license from Bayer. The license contract expiration from Bayer is unknown at this

time.

We agree with this statement.

"HFC-245fa would be produced in a single manufacturing facility (Allied Signal), and there is no backup

chemical that is easily converted in a refrigerator/freezer factory or from a product performance standpoint

if a natural disaster occurs such as a flood, tornado, fire, and so forth."

We infer that Amana is alluding to a disruption in supply of HFC-245fa resulting from a natural

disaster. Given that clarification , we agree with this statement.

"It is unlikely that the members of AHAM will sign up and agree to the business commitments or terms and

conditions that Allied Signal has presented to the AHAM members . The proposal is a long-term take or pay

contract which minimizes any risk to Allied Signal.

We submit that the veracity of this statement will be known within the next 30 days . However, it is

premature to draw such a conclusion as of this date.

"HFC-245fa price increases in the future are a possibility. The cost of HFC-245fa is extremely high now,

and price increases in the future would make it even more uneconomical. The increase in the cost of each

refrigerator would be approximately $9 to $12 depending upon the size of the refrigerator and the amount

2

 EE-RM-93-801 COMMENT 334

WHITE CONSOLIDATED INDUSTRIES, INC. 

DOE recognizes that some uncertainty still exists about the ultimate acceptability of HFC-245fa or 

other comparable blowing agents, as well as some uncertainty regarding the timing of commercial 

production of such a product. ... Consequently, it is still possible ... that [HFC-245fa's] 

commercial availability will be delayed beyond 2003. Under such conditions, DOE may grant 

manufacturers exception relief. Section 504 of the Department of Energy Organization Act 

authorizes DOE to make adjustment of any rule or order issued under the Energy Policy and 

Conservation Act, consistent with the other purposes of the Act, if necessary to prevent special 

hardship, inequity, or unfair distribution of burdens. 42 U.S.C. Section 7194(a). 

62 Fed. Beg. 23102, 23108 (April 28, 1997). 

WCI offers comments to the following statements made by Amana in support of its petition. We reserve the 

right to offer additional comments as developments in the near future may warrant: 

"HFC-245fa availability is at high risk. There is currently no manufacturing facility anywhere in the world 

that has the capabilities to produce HFC-245fa. If 

We agree with this characterization of the current risk vis-a-vis HFC-245fa availability. 

"Allied Signal, working through AHAM (Association of Home Appliance Manufacturers), is working to obtain 

a commitment by 3/99 from the appliance industry such that Allied Signal can move forward and 

commercialize HFC-245fa and start building a manufacturing facility to produce the chemical. n 

We agree with this statement. 

uHFC-245fa would have a sole supplier (Allied Signal); and therefore, there would be no competition to 

further drive the cost of this blowing agent downward as time continues to go along. n 

We agree with this statement. 

"Allied Signal owns the license from Bayer. The license contract expiration from Bayer is unknown at this 

time. n 

We agree with this statement. 

"HFC-245fa would be produced in a single manufacturing facility (Allied Signal), and there is no backup 

chemical that is easily converted in a refrigeratorlfreezer factory or from a product performance standpoint 

if a natural disaster occurs such as a flood, tomado, fire, and so forth. If 

We infer that Amana is alluding to a disruption in supply of HFC-245fa resulting from a natural 

disaster. Given that clarification, we agree with this statement. 

"It is unlikely that the members of AHAM will sign up and agree to the business commitments or terms and 

conditions that Allied Signal has presented to the AHAM members. The proposal is a long-term take or pay 

contract which minimizes any risk to Allied Signal. n 

We submit that the veracity of this statement will be known within the next 30 days. However, it is 

premature to draw such a conclusion as of this date. 

UHFC-245fa price increases in the future are a possibility. The cost of HFC-245fa is extremely high now, 

and price increases in the future would make it even more uneconomical. The increase in the cost of each 

refrigerator would be approximately $9 to $12 depending upon the size of the refrigerator and the amount 

2 
WHITE CONSOLIDATED INDUSTRIES, INC.

of foam insulation that is used in each specific refrigerator . This is approximately a 4% increase in the

standard manufacturing cost of a refrigerator. Price increases in the marketplace historically cannot be

passed on to the consumers, and the manufacturers profit margins have been declining also."

We agree with these statements.

"HFC-245fa is not commercially available yet in large quantities; and therefore, significant testing with large

quantities of product and field testing has not been trialed yet. Only small numbers of units have been

tested. "

We agree with this statement.

"There are some alternatives to HFC-245fa including HFC-134a, and cyclopentane. Neither of these

blowing agents are nearly as energy efficient as HFC-245fa."

We agree with this statement insofar as it characterizes the energy efficiency of HFC-134a and

cyclopentane. We note that the energy performance of other chemicals, such as R-22 or HCFC124, could present economically justifiable alternatives to HFC-245fa if long term accessibility to

such chemicals was guaranteed . We note that these chemicals are ozone depleting -substances,

the continued access to which is governed by the Environmental Protection Agency . To date, EPA

has declined to ensure long term access to these chemicals for refrigeration foam applications.

However, it is our understanding that EPA has grandfathered long term access for manufacturers

already using such chemicals (R-22).

"Internal volume is a significant market driver. For example , a 23 ft3 refrigerator provides more value to a

consumer than a 21 ft3 refrigerator, especially if the price at retail is equivalent."

We agree with this statement.

"Refrigerator manufacturers do NOT have the luxury of increasing the outside or external cabinet

dimensions. The kitchen cabinet openings in most instances limit the dimensions to 28", 30"Y 33" or 36"

wide and 62", 66" or 69" high.„

We agree with this statement.

"[A]s we use less efficient blowing agents in foam insulations, the adjusted volume will be significantly

reduced; and therefore, the allowable energy consumption will be reduced."

We agree with this statement.

"The lead time to qualify an alternate blowing agent is typically 3-6 years".

We agree with this statement as long as Amana 's definition of "qualify" includes the identification

and development of the blowing agent plus the installation of all necessary plant facilities..

"Other blowing agents such as HFC-236ea, HFC-365mfc, and others have been briefly evaluated but have

been unsuccessful due to poor thermal performance, chemical compatibility, cost, availability, toxicity, etc. r

We generally agree with this statement, with the exception of HCFC-124 and R-22.

"Other energy reduction opportunities available to the U.S. refrigerator/freezer manufacturers are not cost

effective and/or are not sufficiently reliable. These include, but not limited to, vacuum insulation panels

(VIP), ECM (electronically commutated motor) evaporator motors, ECM condenser motors, and PSC

(permanent split capacitor) condenser motors. . . . Catastrophic failure modes may occur when an

evacuated panel fails. Panels are not currently available commercially since Owens Corning ceased

manufacturing several months ago. Vacuum insulation panels historically have not been cost effective.

3

 EE-RM-93-801 COMMENT 334 .~ . 

WHITE CONSOLIDATED INDUSTRIES, INC. 

of foam insulation that is used in each specific refrigerator. This is approximately a 4% increase in the 

standard manufacturing cost of a refrigerator. Price increases in the marketplace historically cannot be 

passed on to the consumers, and the manufacturers profit margins have been declining also. " 

We agree with these statements. 

"HFC-245fa is not commercially available yet in large quantities; and therefore, significant testing with large 

quantities of product and field testing has not been trialed yet. Only small numbers of units have been 

tested. " 

We agree with this statement. 

"There are some alternatives to HFC-245fa including HFC-134a, and cyclopentane. NeIther of these 

blowing agents are nearly as energy efficient as HFC·245fa." 

We agree with this statement insofar as it characterizes the energy efficiency of HFC-134a and 

cyclopentane. We note that the energy performance of other chemicals, such as R-22 or HCFC124, could present economically justifiable alternatives to HFC-245fa If long term accessibility to 

such chemicals was guaranteed. We note that these chemicals are ozone depleting-substances, 

the continued access to which is governed by the Environmental Protection Agency. To date, EPA 

has declined to ensure long term access to these chemicals for refrigeration foam applications. 

However, it is our understanding that EPA has grandfathered long term access for manufacturers 

already using such chemicals (R-22). 

"Internal volume is a significant market driver. For example, a 23 ft3 refrigerator provides more value to a 

consumer than a 21 ft3 refrigerator, especially if the price at retail is equivalent. " 

We agree with this statement. 

"Refrigerator manufacturers do NOT have the lUXUry of increasing the outside or external cabinet 

dimensions. The kitchen cabinet openings in most instances limit the dimensions to 28", 30", 33" or 36" 

wide and 62", 66" or 69" high. " 

We agree with this statement. 

urAls we use less efficient blowing agents in foam insulations, the adjusted volume will be significantly 

reduced; and therefore, the allowable energy consumption will be reduced. " 

We agree with this statement. 

UThe lead time to qualify an altemate blowing agent is typically 3-6 years". 

We agree with this statement as long as Amana's definition of "qualify" includes the identification 

and development of the blowing agent plus the installation of all necessary plant facilities .. 

"Other blowing agents such as HFC-236ea, HFC-365mfc, and others have been briefly evaluated but have 

been unsuccessful due to poor thermal performance, chemical compatibility, cost, availability, toxicity, etc. n 

We generally agree with this statement, with the exception of HCFC-124 and R-22. 

"Other energy reduction opportunities available to the U.S. refrigeratorlfreezer manufacturers are not cost 

effective and/or are not sufficiently reliable. These include, but not limited to, vacuum insulation panels 

(VIP), ECM (electronically commutated motor) evaporator motors, ECM condenser motors, and PSC 

(permanent split capacitor) condenser motors. . .. Catastrophic failure modes may occur when an 

evacuated panel fails. Panels are not currently available commercially since Owens Corning ceased 

manufacturing several months ago. Vacuum insulation panels historically have not been cost effective. 

3 
WHITE CONSOLIDATED INDUSTRIES, INC.

"PSC evaporator motors are not currently available in the market that can withstand the environmental

requirements necessary to meet long-term reliability test standards.

"PSC condenser motors are available at a high cost ($5 premium per motor).... However, depending on

the allowable energy of the refrigerator and several other factors, the energy savings for a PSC motor is

typically only I% to 2%."

We agree with these statements.

Due to the fact that the EPA regulations only ban the use of HCFC-141b in the U.S.A. after 1/1/03, Amana

Appliance's competitors such as General Electric in Mexico, Whirlpool in Mexico, W.C. Wood in Canada,

and General Electric in Canada, have a significant competitive advantage since they can produce product

outside of the U.S.A. and export product into the U.S.A. until the year 2010 (or later) with a significantly

more cost effective and a significantly more energy efficient blowing agent in HCFC-141b. This puts

Amana Appliances at a tremendous competitive disadvantage when our competitors can build product

across the border and very easily ship product into the U.S.A. One can assume that more and more

refrigerators will be produced between now and the year 2010 and beyond in countries such as Mexico and

Canada, and significant employment could be lost in the U.S.A.

We agree with these statements.

We hope that our comments facilitate the OHA review of the Amana petition.

Very1ruly yours,

Terry V.'Thiele

Associate General Counsel

Copy to:

Alan F. Kessler, PE

Vice President, Engineering & Quality

Amana Appliances

2800 220th Trail

Amana, Iowa 52204-0001

4

 EE-RM-93-801 COMMENT 334

WHITE COT\'SOLIDATED INDUSTRIES, INC. 

"PSC evaporator motors are not currently available in the market that can withstand the environmental 

requirements necessary to meet long-term reliability test standards. 

"PSC condenser motors are available at a high cost ($5 premium per motor) . ... However, depending on 

the allowable energy of the refrigerator and several other factors, the energy savings for a PSC motor is 

typically only 1 % to 2%." 

We agree with these statements. 

Due to the fact that the EPA regulations only ban the use of HCFC-141b in the US.A. after 111103, Amana 

Appliance's competitors such as General Electric in Mexico, Whirlpool in Mexico, W.C. Wood in Canada, 

and General Electric in Canada, have a significant competitive advantage since they can produce product 

outside of the US.A. and export product into the U.S.A. until the year 2010 (or later) with a significantly 

more cost effective and a significantly more energy efficient .blowing agent in HCFC-141 b. This puts 

Amana Appliances at a tremendous competitive disadvantage when our competitors can build product 

across the border and very easily ship product into the U. S.A. One can assume that more and more 

refrigerators will be produced between now and the year 2010 and beyond in countries such as Mexico and 

Canada, and significant employment could be lost in the US.A. ~ 

We agree with these statements. 

We hope that our comments facilitate the OHA review of the Amana petition. 

Copy to: 

Alan F. Kessler, PE 

Vice President, Engineering & Quality 

Amana Appliances 

2800 220th Trail 

Amana, Iowa 52204-0001 

Very jruly yours, 

"1~V~ Terry V. Thiele 

Associate General Counsel 

4