CHAPTER 1. INTRODUCTION 

TABLE OF CONTENTS 

1.1 PURPOSE OF THE DOCUMENT ................................................................................. 1-1 

1.2 OVERVIEW OF COMMERCIAL EQUIPMENT STANDARDS................................. 1-1 

1.3 OVERVIEW OF COMMERCIAL REFRIGERATION EQUIPMENT STANDARDS 1-3 

1.4 STRUCTURE OF THE DOCUMENT............................................................................ 1-6 

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EERE-2006-BT-STD-0126 COMMENT 52.2 
 

CHAPTER 1. INTRODUCTION 

1.1 PURPOSE OF THE DOCUMENT 

This technical support document (TSD) is a stand-alone report that documents the 

technical analyses and results in support of the information presented in the final rule for 

establishing energy conservation standards for commercial ice-cream freezers; self-contained 

commercial refrigerators, commercial freezers, and commercial refrigerator-freezers without 

doors; and remote condensing commercial refrigerators, commercial freezers, and commercial 

refrigerator-freezers. Hereafter, this equipment is collectively referred to as commercial 

refrigeration equipment (CRE). 

1.2 OVERVIEW OF COMMERCIAL EQUIPMENT STANDARDS 

Part B of Title III of the Energy Policy and Conservation Act of 1975, Public Law 94-

163, as amended by the National Energy Conservation Policy Act of 1978 (NECPA), Public Law 

95-619; the National Appliance Energy Conservation Act of 1987 (NAECA), Public Law 100-

12; the National Appliance Energy Conservation Amendments of 1988 (NAECA 1988), Public 

Law 100-357; and the Energy Policy Act of 1992 (EPACT 1992), Public Law 102-486 (the Act 

or EPCA), established the Energy Conservation Program for Consumer Products other than 

Automobiles. (42 U.S.C. 6291-6309) Part 3 of Title IV of NECPA amended EPCA to add Part 

A-1 of Title III, which established an energy conservation program for Certain Industrial 

Equipment1. (42 U.S.C. 6311-6317) EPACT 1992 included amendments to EPCA that 

expanded Title III to include additional commercial equipment. The recent Energy Policy and 

Conservation Act of 2005 (EPACT 2005), Public Law 109-58, updates several existing standards 

and test procedures; prescribes definitions, standards, and test procedures for certain new 

consumer products and commercial equipment; and mandates that the Secretary of Energy (the 

Secretary) commence rulemakings to develop test procedures and standards for certain new 

consumer products and commercial equipment. 

In particular, section 136(c) of EPACT 2005 amends section 342 of EPCA by adding 

new subsection 342(c)(4)(A) (42 U.S.C. 6313(c)(4)(A)), which directs the Secretary to issue by 

rule, no later than January 1, 2009, energy conservation standards for commercial refrigeration 

equipment, manufactured on or after January 1, 2012. 

Under EPCA, when the U.S. Department of Energy (DOE) studies new or amended 

standards, it must consider to the greatest extent practicable, the following seven factors: 

(1) the economic impact of the standard on the manufacturers and consumers of the 

affected products; 

1

 This part was originally titled Part C. However, it was redesignated Part A-1 after Part B of Title III of EPCA was 

repealed by Pub. L. 109-58. 

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EERE-2006-BT-STD-0126 COMMENT 52.2 
(2) the savings in operating costs throughout the estimated average life of the product 

compared to any increases in the initial cost or maintenance expense; 

(3) the total projected amount of energy savings likely to result directly from the 

imposition of the standard; 

(4) any lessening of the utility or the performance of the products likely to result from the 

imposition of the standard; 

(5) the impact of any lessening of competition, as determined in writing by the Attorney 

General, that is likely to result from the imposition of the standard; 

(6) the need for national energy conservation; and 

(7) other factors the Secretary considers relevant (42 U.S.C. 6295 (o)(2)(B)(i) and 42 

U.S.C. 6316(e), added by section 136(h)(3) of EPACT 2005). 

Other statutory requirements are set forth in 42 U.S.C. 6295 (o)(1)–(2)(A), (2)(B)(ii)– 

(iii), and (3)–(4) and 42 U.S.C. 6316(a)(1)-(3), and (e). 

DOE considers stakeholder participation to be a very important part of the process for 

setting energy conservation standards. DOE actively encourages the participation and interaction 

of all stakeholders during the comment period in each stage of the rulemaking. Beginning with 

the framework document and during subsequent comment periods, interactions among 

stakeholders provide a balanced discussion of the information that is required for the standards 

rulemaking. 

Before DOE determines whether to adopt a proposed energy conservation standard, it 

must first solicit comments on the proposed standard. Any new or amended standard must be 

designed to achieve significant additional conservation of energy and be technologically feasible 

and economically justified. (42 U.S.C. 6295(o)(3)(B) as directed by 42 U.S.C. 6316(a)(1) 

through (3)) To determine whether economic justification exists, DOE must review comments 

on the proposal and determine that the benefits of the proposed standard exceed its burdens to the 

greatest extent practicable, weighing the seven factors listed above. 

Subsequent to the publication of the Framework Document, the standards rulemaking 

process involves three additional formal, major public notices, which are published in the 

Federal Register. The first of the rulemaking notices is an advanced notice of proposed 

rulemaking (ANOPR) that is designed to publicly vet the models and tools used in the 

rulemaking, and to facilitate public participation before the proposed rule stage. The second 

notice is a notice of proposed rulemaking (NOPR), which presents a discussion of comments 

received in response to the ANOPR; analysis of the impacts of standards on customers, 

manufacturers, and the Nation; DOE’s weighting of the impacts; and the proposed standards. 

The third notice is the final rule, which presents a discussion of comments received in response 

to the NOPR; the revised analysis of the impacts of standards; DOE’s weighting of the impacts; 

the standards adopted by DOE; and the effective dates of the standards. 

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1.3	 OVERVIEW OF COMMERCIAL REFRIGERATION EQUIPMENT 

STANDARDS 

As mentioned above, section 136(c) of EPACT 2005 amends section 342 of EPCA by 

adding new subsection 342(c)(4)(A) (42 U.S.C. 6313(c)(4)(A)), which directs the Secretary to 

issue by rule, no later than January 1, 2009, energy conservation standards for commercial 

refrigeration equipment manufactured on or after January 1, 2012. 

Additionally, section 136(f)(1)(B) of EPACT 2005 amends section 343 of EPCA (42 

U.S.C. 6314) by adding new subsection 343(a)(6)(A)-(D) (42 U.S.C. 6314(a)(6)(A)-(D)), which 

directs the Secretary to adopt test procedures and establish, by rule, appropriate rating 

temperatures for the above commercial refrigeration equipment. Accordingly, on December 8, 

2006, DOE published a final rule establishing test procedures and rating temperatures for 

commercial refrigeration equipment. 71 FR 71340. 

Section 136(a)(3) of EPACT 2005 amended section 340 of EPCA by replacing 

subsection 340(9) (42 U.S.C 6311(9)) with definitions for the following terms that describe 

commercial refrigeration equipment: 

“(9)(A) The term ‘commercial refrigerator, freezer, and refrigerator-freezer’ means 

refrigeration equipment that— 

(i) is not a consumer product (as defined in section 321); 

(ii) is not designed and marketed exclusively for medical, scientific, or research 

purposes; 

(iii) operates at a chilled, frozen, combination chilled and frozen, or variable 

temperature; 

(iv) displays or stores merchandise and other perishable materials horizontally, 

semivertically, or vertically; 

(v) has transparent or solid doors, sliding or hinged doors, a combination of hinged, 

sliding, transparent, or solid doors, or no doors; 

(vi) is designed for pull-down temperature applications or holding temperature 

applications; and 

(vii) is connected to a self-contained condensing unit or to a remote condensing unit. 

(B) The term ‘holding temperature application’ means a use of commercial refrigeration 

equipment other than a pull-down temperature application, except a blast chiller or 

freezer. 

* * * 

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EERE-2006-BT-STD-0126 COMMENT 52.2 
(D) The term ‘pull-down temperature application’ means a commercial refrigerator with 

doors that, when fully loaded with 12 ounce beverage cans at 90 degrees F, can cool 

those beverages to an average stable temperature of 38 degrees F in 12 hours or less. 

(E) The term ‘remote condensing unit’ means a factory-made assembly of refrigerating 

components designed to compress and liquefy a specific refrigerant that is remotely 

located from the refrigerated equipment and consists of one or more refrigerant 

compressors, refrigerant condensers, condenser fans and motors, and factory supplied 

accessories. 

(F) The term ‘self-contained condensing unit’ means a factory-made assembly of 

refrigerating components designed to compress and liquefy a specific refrigerant that is 

an integral part of the refrigerated equipment and consists of one or more refrigerant 

compressors, refrigerant condensers, condenser fans and motors, and factory supplied 

accessories.” 

In April 2006, DOE published a Rulemaking Framework for Commercial Refrigeration 

Equipment Including Ice-Cream Freezers; Self-Contained Commercial Refrigerators, Freezers, 

and Refrigerator-Freezers without doors; and Remote Condensing Commercial Refrigerators, 

Freezers, and Refrigerator-Freezers, describing the procedural and analytical approaches DOE 

anticipated using to evaluate the establishment of energy conservation standards for CRE. This 

document is available at 

http://www.eere.energy.gov/buildings/appliance_standards/commercial/pdfs/comml_refrig_fram 

ework.pdf. 

DOE held a public meeting on May 16, 2006, to discuss procedural and analytical 

approaches to the rulemaking, and to inform and facilitate stakeholders’ involvement in the 

rulemaking process. The analytical framework presented at the public meeting described 

different analyses, such as the engineering analysis and the life-cycle cost (LCC) and payback 

period (PBP) analyses, the methods proposed for conducting them, and the relationships among 

the various analyses. 

After the analytical framework public meeting, as part of the information gathering and 

sharing process for the preliminary manufacturer impact analysis, DOE organized and held 

interviews with CRE manufacturers. DOE selected companies that represented production of all 

types of commercial refrigeration equipment, ranging from small to large manufacturers, and 

included both Air-Conditioning and Refrigeration Institute (ARI) member companies and nonARI member companies. DOE had four objectives for these interviews: (1) solicit feedback on 

the draft engineering analysis (including methodology, production costs, manufacturing 

processes, and findings); (2) solicit feedback on topics related to the preliminary manufacturer 

impact analysis; (3) provide an opportunity, early in the rulemaking process, to express specific 

concerns to DOE; and (4) foster cooperation between the manufacturers and DOE. 

In July 2007, DOE published an Advanced Notice of Proposed Rulemaking for 

Commercial Refrigeration Equipment Including Ice-Cream Freezers; Self-Contained 

Commercial Refrigerators, Freezers, and Refrigerator-Freezers without doors; and Remote 

Condensing Commercial Refrigerators, Freezers, and Refrigerator-Freezers, to consider 

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EERE-2006-BT-STD-0126 COMMENT 52.2 
 

 

establishing energy conservation standards for CRE, and to announce a public meeting to receive 

comments on a variety of issues. This document is available at 

http://www.eere.energy.gov/buildings/appliance_standards/commercial/pdfs/comml_refrig_html. 

pdf 

DOE held a public meeting on August 23, 2007, to provide interested stakeholders the 

opportunity to comment on the proposed equipment classes DOE is considering; the analytical 

framework, models, and tools (e.g., LCC and national energy savings (NES) spreadsheets) that 

DOE has been using to perform analyses of the impacts of energy conservation standards; the 

results of the preliminary analyses; and the candidate energy conservation standard levels. 

After the publication of the ANOPR and the presentation of the ANOPR to stakeholders 

at the public meeting, DOE conducted interviews with CRE manufacturers as part of the 

manufacturer impact analysis for the NOPR. There were 13 general topics discussed during each 

of the interviews: (1) general key issues, (2) company overview and organizational 

characteristics, (3) company financial parameters, (4) production cost breakdown, (5) shipment 

projections and market shares, (6) equipment mixes, (7) conversion costs, (8) markups and 

profitability, (9) cumulative regulatory burden, (10) exports, foreign competition, and 

outsourcing, (11) direct employment impact assessment, (12) market consolidation, and (13) 

baseline products and different design options. 

DOE also developed spreadsheets to conduct the LCC, PBP and national impact analyses. 

The LCC spreadsheet calculates national distributions of life cycle cost savings at various 

energy-efficiency levels above the baseline. It can also provide LCC savings based on typical 

input values for several business types who use CRE. The national impact analysis spreadsheet 

calculates the NES and national net present values (NPVs) at various energy-efficiency levels. It 

also includes a model that forecasts shipments for the various equipment classes of commercial 

refrigeration equipment at different efficiency levels. 

In addition to the analyses, DOE reviewed the recommendations made on April 21, 1998, 

by the Advisory Committee on Appliance Energy Efficiency Standards. (Advisory Committee, 

No. 96)2

 DOE’s analysis implemented recommendations related to (1) defining a range of 

energy price futures for each fuel used in the economic analyses, and (2) defining a range of 

primary energy conversion factors and associated emission reductions based on the generation of 

energy and emissions that would be displaced by energy-efficiency standards for each 

rulemaking. 

In August 2008, DOE published a Notice of Proposed Rulemaking for Commercial 

Refrigeration Equipment Including Ice-Cream Freezers; Self-Contained Commercial 

Refrigerators, Freezers, and Refrigerator-Freezers without doors; and Remote Condensing 

Commercial Refrigerators, Freezers, and Refrigerator-Freezers, to propose energy conservation 

standards for CRE, and to announce a public meeting to receive comments on a variety of issues. 

This document is available at 

2

 Advisory Committee, No. 96 refers to the recommendations of the Advisory Committee on Energy 

Efficiency Standards and is available for inspection at the U.S. Department of Energy, Forrestal Building, 

Room 1J-018 (Resource Room of the Building Technologies Program) in the file under “Energy Conservation 

Program for Consumer Products: Procedures for Consideration of New or Revised Energy Conservation 

Standards for Consumer Products,” RIN [1904–AA83], as document number 96. 

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EERE-2006-BT-STD-0126 COMMENT 52.2 
http://www1.eere.energy.gov/buildings/appliance_standards/commercial/pdfs/cre_nopr_fr_final. 

pdf 

DOE held a public meeting on September 23, 2008, to provide interested stakeholders the 

opportunity to comment on the proposed standards, results of the analyses and the trial standard 

levels (TSL). 

After the publication of the NOPR and the presentation of the NOPR to stakeholders at 

the public meeting, DOE received more than 100 comments from a diverse set of parties, 

including manufacturers and their representatives, trade associations, wholesalers and 

distributors, energy conservation advocates, and electric utilities. Comments addressed DOE 

methodology, the information DOE used in its analyses, results of and inferences drawn from the 

analyses, impacts of standards, the merits of the different trial standard levels (TSLs), standards 

options DOE considered and other issues affecting adoption of standards for commercial 

refrigeration equipment. 

1.4 STRUCTURE OF THE DOCUMENT 

This Final Rule TSD outlines the analytical approaches used in this rulemaking. The 

TSD consists of 16 chapters, an environmental assessment, a regulatory impact analysis, and 

appendices. 

Chapter 1 Introduction: provides an overview of the appliance and equipment 

standards program and how it applies to the commercial refrigeration 

equipment rulemaking, and outlines the structure of the document. 

Chapter 2 Analytical Framework: describes the rulemaking process step by step. 

Chapter 3 Market and Technology Assessment: characterizes the commercial 

refrigeration equipment market and the technologies available for 

increasing equipment efficiency. 

Chapter 4 Screening Analysis: determines which technology options are viable for 

consideration in the engineering analysis. 

Chapter 5 Engineering Analysis: discusses the methods used for developing the 

relationship between increased manufacturer price and increased 

efficiency. 

Chapter 6 Markups to Determine Equipment Price: discusses the methods used for 

establishing markups for converting manufacturer prices to customer 

equipment prices. 

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EERE-2006-BT-STD-0126 COMMENT 52.2 
Chapter 7 Energy Use Characterization: discusses the process used for generating 

energy use estimates of commercial refrigeration equipment for a variety 

of equipment classes, climate locations, and standard levels. 

Chapter 8 Life-Cycle Cost and Payback Period Analyses: discusses the economic 

effects of standards on individual customers and users of the equipment 

and compares the LCC and PBP of equipment with and without higher 

efficiency standards. 

Chapter 9 Trial Standard Levels: discusses the trial standard levels and the methods 

used to derive the energy-efficiency equations corresponding to the 

proposed energy conservation standards. 

Chapter 10 Shipments Analysis: discusses the methods used for forecasting 

shipments with and without higher efficiency standards. 

Chapter 11 National Impact Analysis: discusses the 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 efficiency standards. 

Chapter 12 Life-Cycle Cost Sub-Group Analysis: discusses the effects of standards 

on a subgroup of commercial refrigeration equipment customers and 

compares the LCC and PBP of equipment with and without higher 

efficiency standards for these customers. 

Chapter 13 Manufacturer Impact Analysis: discusses the effects of standards on the 

finances and profitability of equipment manufacturers. 

Chapter 14 Utility Impact Analysis: discusses the effects of standards on the installed 

generation capacity of electric utilities. 

Chapter 15 Employment Impact Analysis: discusses the effects of standards on 

National employment. 

Chapter 16 Environmental Assessment for Commercial Refrigeration Equipment: 

discusses the effects of standards on air-borne emissions of electric 

utilities. 

Chapter 17 Regulatory Impact Analysis for Commercial Refrigeration Equipment: 

discusses the present regulatory actions as well as the impact of nonregulatory alternatives to setting energy efficiency standards. 

Appendix A User Instructions for Engineering Analysis Spreadsheet: accompanies 

Chapter 5, Engineering Analysis. 

Appendix B Engineering Data: accompanies Chapter 5, Engineering Analysis 

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EERE-2006-BT-STD-0126 COMMENT 52.2 
Appendix C Detailed Data for Equipment Price Markups: accompanies Chapter 6, 

Markups for Equipment Price Determination 

Appendix D Annual Energy Simulation Inputs and Results for Commercial 

Refrigeration Equipment: accompanies Chapter 7, Energy Use 

Characterization 

Appendix E User Instructions for Life-Cycle Cost Spreadsheet: accompanies Chapter 

8, Life-Cycle Cost and Payback Period Analyses 

Appendix F Mapping Between Engineering Analysis and Life-Cycle Cost Analysis 

Energy Efficiency Levels: accompanies Chapter 8, Life-Cycle Cost and 

Payback Period Analyses 

Appendix G Detailed Life-Cycle Cost Output: accompanies Chapter 8, Life-Cycle 

Cost and Payback Period Analyses 

Appendix H User Instructions for National Energy Savings and Net Present Value 

Spreadsheet: accompanies Chapter 11, National Impact Analysis 

Appendix I Detailed National Energy Savings and National Net Present Value Output: 

accompanies Chapter 11, National Impact Analysis 

Appendix J Government Regulatory Impact Model (GRIM): accompanies Chapter 13, 

Manufacturer Impact Analysis 

Appendix K Estimation of Utility and Environmental Results from NEMS-BT Output: 

accompanies Chapter 14, Utility Impact Analysis 

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