The Honorable Dr. Steven Chu 

Secretary of Energy 

Department of Energy 

1000 Independence Ave., SW 

Washington, D.C. 20585 

October 20, 2011 

Re: Closing of loophole regarding HCFC-22 condensing units for air-conditioning systems 

Dear Secretary Chu: 

We, the undersigned companies, are writing regarding a significant loophole in current federal 

law regarding air-conditioning condensing units that use hydrochlorofluorocarbon-22 refrigerant 

("HCFC-22"). Using HCFC-22 as a refrigerant in air-conditioning systems harms the environment and 

prolongs the use of outdated, less efficient cooling systems. This HCFC-22 air-conditioning condensing 

unit loophole, if left unaddressed, could eliminate for a decade or more critical benefits from DOE 

energy efficiency regulations. 

In late 2009, the U.S. Environmental Protection Agency ("EPA") published a final rule that in 

relevant part bans, as of January 1, 2010, the sale or distribution of air-conditioning appliance 

components that are pre-charged with HCFC-22 at the time when they are manufactured in or imported 

into the United States.1 However, EPA did not apply the same prohibition to appliance components that 

are uncharged. Instead, a loophole allows air-conditioning components to be shipped without 

refrigerant and then installed and charged with refrigerant on-site. 

Of particular concern, this loophole allows new air-conditioning condensing units to be installed 

as "replacement" condensers in outdated HCFC-22 systems. Condensing units (the "outdoor" 

equipment in air-conditioning systems) are by far the largest component of air-conditioning systems, 

and they are in effect self-contained subsystems that incorporate compressors, fans, motors, heat 

exchanger coils and various valves. The sale or distribution of new HCFC-22 condensing units that are 

then shoe-horned together with existing evaporator coils effectively create new cooling systems, which 

are banned for pre-charged manufacturing. While smaller components in air-conditioning systems (such 

as fans and motors) may be replaced as part of the normal servicing of existing HCFC-22 air-conditioning 

systems, replacing entire condensing units does not represent typical servicing. This condensing unit 

loophole has resulted in the widespread installation of newly-manufactured HCFC-22 air-conditioning 

condensing units, which dramatically undercuts DOE energy efficiency regulations and increases leaked 

harmful emissions to the environment (as HCFC-22 is both an ozone depleting substance and a 

greenhouse gas). 

DOE should immediately communicate to EPA that this condensing unit loophole must be closed 

for both commercial and residential air-conditioning systems. Moreover, DOE should avoid issuing any 

1 Protection of Stratospheric Ozone: Ban on the Sale or Distribution of Pre-Charged Appliances, 74 Fed. Reg. 66,450 

(December 15, 2009). 
guidance that would exacerbate the problems created by this condensing unit loophole. While this 

loophole should be closed as soon as possible, in order to avoid stranding air-conditioning condensing 

units in inventory manufacturers should be given adequate notice ofthis phase-out so that they can 

stop production. 

On February 3, 2011, EPA received a formal petition to close this air-conditioning condensing 

unit loophole through an amendment to the EPA regulations that have already banned pre-charged 

HCFC-22 equipment. Furthermore, a broad cross-section of the industry has communicated to EPA the 

need for closing this loophole, including members of the undersigned companies. Our understanding is 

that EPA may rule on this petition imminently, so the need for DOE to communicate with EPA is urgent 

in order to preserve the benefits of DOE energy efficiency regulations. 

The sale of uncharged HCFC-22 air-conditioning condensing units through this loophole is 

dramatically proliferating, with significant adverse energy efficiency and environmental impacts. Third 

party estimates indicate that uncharged HCFC-22 condensing units represent up to 30% ofthe total 

condensing units currently sold by the industry. In the absence of a government intiated prohibition, 

DOE should consider these current estimates to only increase in the near term. 

Regarding energy efficiency impacts, HCFC-22 air-conditioning systems are less efficient than 

modern systems that use non-ozone depleting refrigerants. Furthermore, allowing the replacement of 

HCFC-22 condensing units results in unmatched outdoor and indoor system components that further 

degrade energy efficiency. For instance, studies have shown that 13 SEER HCFC-22 condensing units 

installed with older 10 SEER indoor coils result in cooling efficiency and capacity losses in the range of 37 

to 39%.2 Consequently, analysis provided by the Air-conditioning, Heating & Refrigeration Institute to 

EPA indicates that nearly 10% of all the efficiency gains from the DOE 13 SEER rule is forfeited when 

HCFC-22 units comprise 20% of the air-conditioning market, a threshold that estimates indicate has 

already been passed. In addition, the sale of uncharged HCFC-22 air-conditioning condensing units 

through this loophole has caused manufacturers to redirect resources from the development of new, 

more energy efficient solutions. If this loophole is not closed, we anticipate that this trend will continue 

and will result in slower development and market introductions of more energy efficient equipment. 

Given the useful life of dry-charged condensing units and the fact that units installed today may be used 

into the next decade, and also the diversion of engineering resources away from designing improved 

equipment and the lead times necessary to manufacture any such new equipment, this loophole's harm 

to critical DOE energy efficiency measures and the harm to related consumer benefits could last a 

decade or more. 

DOE issued draft guidance regarding residential split system air conditioners in October 2010 

that was titled "Testing of R-22 Systems" (Docket No EERE-2010-BT-TP-0038). Such DOE guidance 

should not be finalized as it would facilitate the use of mismatched equipment and endorse the 

installation of dry shipped condensing units, thus further prolonging the operation of less efficient 

cooling systems beyond their useful life. 

2 See e.g., comments of the Heating, Airconditioning and Refrigeration Distributors International (HARDI), Guidance 

Document for Testing of R-22 Residential Air-Conditioning and Heat Pump Systems (November 22, 2010). 
We do not believe the continuing availability of the HCFC-22 air-conditioning condensing unit 

loophole is what DOE, EPA and Administration policy support. Although EPA has recognized the harms 

caused by this loophole, it is unclear if the EPA is moving with urgency to close this loophole. Therefore, 

we respectfully request that DOE formally encourage EPA to endorse the pending petition that closes 

the current loophole (and at a minimum DOE should not issue guidance that would worsen the 

situation). We would welcome the opportunity to meet with you to discuss these important issues as 

soon as may be convenient for you. 

Lennox International 

Contact: Kyle Gilley 

kyle.gilley@Lennoxintl.com 

Johnson Controls 

Contact: Mark Wagner 

mark.f.wagner@jci.com 

Ingersoll Rand/Trane 

Contact: David Modi 

dmodi@irco.com 

cc: Dr. Henry Kelly 

Sean Lev 

Sincerely, 

Carrier Corporation 

Contact: John Mandyck 

john.m.mandyck@carrier.utc.com 

Daikin/McQuay International 

Contact: Bruce Dorey 

bruce.dorey@mcguay.com 
Secretary Chu 

From: 

Sent: 

To: 

Subject: 

Attachments: 

Gilley, Kyle [kyle.gilley@Lennoxintl.com] 

Thursday, October 20, 2011 2:09 PM 

Secretary Chu 

Industry Coalition Letter to DOE--Dry Shipped HCFC-22 Air-Conditioning 

Condensing Units 

Dry HCFC-221ndustry Letter to DOE (10 20 11).pdf 

Attached is an industry coalition letter requesting DOE take action to uphold energy efficiency standards for residential 

unitary air conditioners intended for use with HCFC-22 refrigerant. It is imperative that DOE encourage EPA to reverse 

their current policy permitting the installation of dry shipped air-conditioning condensing units. Installations of these 

units prolong the use of less efficient central air-conditioning systems and undermine DOE energy efficiency regulations. 

DOE inquiries regarding this letter should be directed to Kyle Gilley. Kyle can be reached at kyle.gilley@lennoxintl.com 

and 214-415-4564. 

Regards, 

Kyle E. Gilley 

Vice President, Government Affairs 

Lennox International 

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