Edwards, Brenda

From: Raymond, Michael Sent: Wednesday, April 30, 2008 8:48 AM To: Edwards, Brenda Subject: CAC-021 Attachments: LG service list for Multi V waiver petition ( 42808).DOC; LG notice to indus try re Multi V waiver petition ( 42808) .DOC; LG certif ication of service for Multi V wa iver petition (42808) .DOC; LG revised waiver request for Multi V multi-splits .DOC Pa g e 1 of 2

5/4/2008 Michael Raymond Building Technologies Program Energy Efficiency and Renewable Energy Department of Energy Phone: (202) 586-9611 Fax: (202) 586-4617

From: Hodges, John [mailto:JH odges@wileyrein.com] Sent: Tuesday, April 29, 2008 10:45 AM To: Raymond, Michael Subject: privileged and confidential Michael, Per your request, here for your convenience in Word format is the revised LG Multi V multisplit waiver request, including the certifica tion, notice to industry, and service list.

John

JOHN A. HODGES Attorney At Law Wiley Rein LLP 1776 K Street NW Washington, DC 20006 Tel: 202.719.3377 | Fax: 202.719.7049 Email: jhodges@wileyrein.com www.wileyrein.com This message is intended only for the use of the addressee and may contain information that is PRIVILEGED and CONFID ENTIAL, and/or may contain ATTO RNEY WORK PRODUCT. If you are not the intended recipient, you are hereby notified that any dissemination of this communication is strictly prohibited. If you have received this communication in erro r, please erase all copies of the message and its attachments and no tify us immediately. Thank you.N OTICE: This message (including a ny attachments) from Wiley Rein LLP may constitute an attorneyclient communication and may contain information that is PRIVILEGED and CONFIDENTIAL and/or ATTORNEY WORK PRODUCT. If you are not an inte nded recipient, you are hereby notified that any dissemination of this message is strictly prohibited. If you have received this message in error, please do not read, copy or forward this message. Please perm anently delete all copies and any attachments and notif y the sender immediatel y b y sendin g an e-mail to Information @ wile y rein.com. Pa g e 2 of 2

5/4/2008April 28, 2008

To Whom It May Concern: Re: LG Electronics, Inc. Petition for Waiver and Application for Interim Waiver; Opportunity for Comment This is to notify you by next day delive ry of LG Electronics Inc.’s enclosed Petition for Waiver and Application for Interi m Waiver of the United States Department of Energy (DOE) regulations on energy conservati on test procedures. In accordance with DOE rules, we are also advising you of your opportunity to comment to DOE. The Assistant Secretary for Conservation and Re newable Energy will consider timely written comments. Comments are to be submitted to:

Assistant Secretary for Energy Efficiency and Renewable Energy U.S. Department of Energy 1000 Independence Avenue, SW Washington, DC 20585-0107 Pursuant to DOE’s rules, please prov ide us with a copy of any comments. Sincerely,

John I. Taylor Vice President, Government Relations LG Electronics USA, Inc. 1750 K Street NW Washington, DC 20006 Phone: 202-719-3490 Fax: 847-941-8177 Email: jtaylor@lge.com

### Certification This is to certify that LG Electronics, Inc. has se nt by next day delivery a copy of its petition for waiver and application for interim waiver for LG Multi V multi-split air conditioning systems, known to LG, of domestically marketed units of the same product type (as listed the Energy Po licy and Conservation Act, as amended, 42 U.S.C. § 6311). The cover letter to each person states th at the person may submit comments to DOE.

Attached are the names and addresses of each person to whom a copy of the petition and waiver was se nt by next day delivery.

Certified by:

John I. Taylor, Vice President, Government Relations LG Electronics USA, Inc. 1750 K Street NW Washington, DC 20006 Phone: 202-719-3490 Fax: 847-941-8177 Email: jtaylor@lge.com

Date: April 28, 2008April 28, 2008

The Honorable Alexander A. Karsner Assistant Secretary, Energy Effici ency and Renewable Energy United States Department of Energy Forrestal Building 1000 Independence Avenue, S.W. Washington, DC 20585

Re: Petition for Waiver and A pplication for Interim Waiver, LG Electronics Multi V Multi-Split Air Conditioning Systems

Dear Mr. Karsner: LG Electronics, Inc. (LG) respectf ully submits this Petition for Waiver and Application for Interim Waiver, pursuan t to 10 C.F.R. § 431.401, for LG Multi V multi-split air conditioning systems, specifi cally Multi V Plus II and Multi V Sync II

systems. 1 Among other things, the applicable test procedure does not provide a method for testing and rating a system th at utilizes so many indoor units; the applicable test procedure does not provide a method for rati ng systems where the type and capacity of the indoor unit can be mixed in the same system; and no testing laboratories can test products with so many indoor units.Waiver relief has been granted for many other comparable commercial multisplits, including Mitsubishi, Samsung, Fujitsu, Sanyo Fisher, and Daikin. See 69 Fed. Reg. 52660 (Aug. 27, 2004) (Mitsubishi); 71 Fed. Reg. 14858 (March 24, 2006)

1 This request is a revision of the reque st dated April 16, 2008. It adds some outdoor models and changes cer tain model numbers.April 28, 2008 Page 2

(Mitsubishi); 72 Fed. Reg. 17528 (April 9, 2007) (Mitsubishi ); 70 Fed. Reg. 9629 (Feb. 28, 2005) (Samsung); 72 Fed. Reg. 71387 (Dec. 17, 2007) (Samsung); 72 Fed. Reg. 71383 (Dec. 17, 2007 (Fujitsu); 73 Fed. Reg. 179 (Jan. 2, 2008) (Sanyo Fisher); 73 Fed. Reg. 1207, 1213 (Jan. 7, 2008) (Daikin). LG is a manufacturer of digital applia nces, as well as mobile communications, digital displays, and digital media products. Its appliances incl ude air-conditioners, washing machines, clothes dryers, refrigerators, refrigerator-freezers, air cleaners, ovens, microwave ovens, dishwashers, and vacuum cleaners and are sold worldwide, including in the United States. LG’s U.S. operati ons are LG Electronics USA, Inc., with headquarters at 1000 Sylvan Avenue, Engl ewood Cliffs, NJ 07632 (tel. 201-816-2000). Its worldwide headquarters are locat ed at LG Twin Towers 20, Yoido-dong, Youngdungpo-gu Seoul, Korea 150-721 (t el. 011-82-2-3777-1114) URL: http.www.LGE.com. LG’s principal brands include LG® and OEM brands, including GE® and Kenmore®. LG’s appliances are produced in Korea and Mexico. LG’s Multi V systems are beneficial pr oducts, each consisting of a single outdoor unit, using a scroll type inverter compressor with variable capacity, that can connect to multiple indoor units and that uses variable refrigerant flow and control systems. (In certain high capacity applications [152,900 Btu/h and above], a consumer can choose between a system using a single outdoor uni t and a system using two outdoor units.) These multi-splits are intended to be used in zoning systems where an outdoor unit can be connected with up to between 13 and 52 separate indoor units in a zoned system, which need not be the same models. The operatin g characteristics allo w each indoor unit to have a different set temperature and a differen t mode of operation (i.e., on/off/fan). AllApril 28, 2008 Page 3 of the indoor units are capable of operati ng independently, with their own temperature and fan speed setting. Based on those controls, the outdoor unit will then determine the cooling or heating capacity delivered into the zones. The system therefore offers great flexibility and convenience to the consum er, permitting precise space conditioning control throughout the building, and thus saving energy. The cooling capacities of the systems are between 76,400 and 310,000 Btu/h. There are 29 outdoor units and 70

indoor units. Model numbers and related desc riptions are set forth in Appendix A. The variable speed, constant speed or dual comp ressors and the associated system controls can direct refrigerant flow throughout the system to precisely meet the various heating or cooling loads required in the conditioned areas. The compressor is capable of reducing its operating capacity to as little as 10 percent of its rated capacity.

The outdoor fan motor also has a variable speed drive to properly match the outdoor

coil to indoor loads. Zone diversity enables the system to have a total connected indoor unit capacity of up to 130 percent of th e capacity of the outdoor unit. As discussed above, up to between 13 and 52 indoor units can be matched with each related outdoor unit. Thus, for each out door unit there is a multitude of possible

combinations of indoor units that can be matched in a system configuration. And since there are 29 outdoor units and 70 indoor units, there is an enormous total of possible

combinations.

A waiver and interim waiver for LG Mult i V systems are warra nted because test procedures under the Energy Policy and Cons ervation Act (EPCA), 42 U.S.C. § 6291 et seq., namely 10 C.F.R. § 431.96, evaluate the basic models in a manner so unrepresentative of their true energy cons umption characterist ics as to provideApril 28, 2008 Page 4

materially inaccurate comparative data, and/ or the basic models contain one or more design characteristics that prevent testi ng of the basic model according to the prescribed test procedures. In such circum stances DOE “will grant” waiver relief. 10 C.F.R. §§ 431.401(e)(3), (f)(4). In that regard: -- The test procedure provides for testing of a pair of indoor and outdoor assemblies making up a typical split system, but does not specify how LG Multi V systems, with so many combinations of i ndoor units for each outdoor unit, could be evaluated. The situation is further compli cated by the fact that there are 29 outdoor units. It is not practical to test each possible combin ation, and the test procedure provides no alternative rating method for genera ting efficiency ratings for systems with more than one indoor unit. Thus, the test procedure does not c ontemplate, and cannot practically be applied to, LG Multi V systems. -- Testing laboratories cannot test products with so many indoor units. In that regard, the testing of multi-splits when all indoor units are connected cannot be physically located in a single room. -- The test procedure provides for te sting “matched assemblies,” which does not apply to LG Multi V systems. Indoor and outdoor coils in split systems are typically balanced; that is, the capacity of the outdoor coil is equivalent to the capacity of the indoor coil. The test procedure' s application to "matched assemblies" contemplates such a balance between indoor and outdoor coil capacity. With the Multi V systems, however, the sum of the capacity of the indoor units connected into the system can be as much as 130 percent of the capacity of the outdoor coil. Such unbalanced combinations of LG indoor and outdoor units are permitted by the zoningApril 28, 2008 Page 5

characteristics of the system, the use of elect ronic expansion valves to precisely control refrigerant flow to each indoor coil, and th e system intelligence for overall system control. The test procedure designed for “matched assemblies” therefore does not contemplate or address testing for substantia lly unbalanced zoning systems such as the LG Multi V systems. -- The indoor units are designed to ope rate at many different external static pressure values, which compounds the difficulty of testing LG Multi V systems. A test facility could not maintain proper airflow at several different external static pressure values for the many indoor units that w ould be connected to the outdoor unit.

* * * For all of these reasons, the existi ng test procedures eval uate the LG Multi V systems in a manner so unrepresentativ e of their true energy consumption characteristics as to provide materially in accurate comparative data and/or the basic models contain one or more design character istics that prevent testing of the basic model according to the prescribed test pr ocedures. Therefore, DOE should grant a waiver for LG Multi V systems. See 10 C.F.R. § 431.401(a)(1). The waiver should continue until a test procedure can be developed and adopted that will provide the U.S. market with a fair and accurate assessment of the LG Multi V system energy consumption and efficiency levels. LG intends to work with DOE, stakeholders, and the Air-Conditioning and Refrigeration Institute (ARI) to develop the appropriate test procedure.April 28, 2008 Page 6

There are no alternative test proced ures known to LG that could evaluate these products in a representative manner (other than perhaps the pr ocedures provided by DOE in its waiver decisions for comparable products).

That a waiver is warranted is borne out by the fact that DOE has granted waiver relief to Mitsubishi, Samsung, Fujitsu, Sanyo Fisher, and Daikin for comparable commercial multi-splits.

Manufacturers of all other basic models ma rketed in the United States and known to LG to incorporate similar design charac teristics as found in the LG Multi V systems

include Mitsubishi Electric and Electronics USA, Mitsubishi Heavy Industries Climate Control, Inc., Samsung Air Conditioning, Fu jitsu General Limited, Sanyo Fisher (USA) Corp., and Daikin AC (Americas), Inc. LG also requests immediate relief by gran t of an interim waiver. Grant of an interim waiver is fully justified: -- The petition for waiver is likely to be granted, as evidenced not only by its merits, but also because DOE has already granted waiver re lief to Mitsubishi, Samsung, Fujitsu, Sanyo Fisher, and Daikin for their comme rcial multi-splits. In such instances, it is in the public interest to have similar pr oducts tested and rated for energy consumption on a comparable basis. -- Without waiver relief, LG will be at a compe titive disadvantage in the market and suffer economic hardship. LG would be placed in an untenable situation: the Multi V systems would be subj ect to a set of regulations that DOE already acknowledges should not apply to such a product, while at the same time other manufacturers are allowed to operate relieved from such regulations.April 28, 2008 Page 7

-- Significant investment has already been made in LG Multi V systems.

Lack of relief would not allow LG to r ecoup this investment and would deny LG anticipated sales revenue. This does not take into account signifi cant losses in goodwill and brand acceptance. -- The basic purpose of EPCA is to foster purchase of energy-efficient products, not hinder such purchases. LG Multi V systems produce a benefit to consumers and are in the public interest. To encourage and foster the availability of these products is in the public interest. Standards programs should not be used as a means to block innovative, improved designs. 2 DOE's rules shoul d accommodate and encourage -- not act to block -- such a product. -- Granting the interim waiver a nd waiver would also eliminate a non-tariff

trade barrier.

-- Grant of relief would also he lp enhance economi c development and employment, including not only LG Electronics USA’s operations in New Jersey, Illinois and Alabama, but also at major national re tailers and regional dealers that carry LG products. Furthermore, continued employ ment creation and ongoing investments in its marketing, sales and servicing activities wi ll be fostered by appr oval of the interim waiver. Conversely, denial of the requested re lief would harm the company and would be anticompetitive.

2 See FTC Advisory Opinion No. 457, TRRP 1718.20 (1971 Transfer Binder); 49 Fed. Reg. 32213 (Aug. 13, 1984); 52 Fed. Reg. 49141, 49147-48 (Dec. 30, 1987).April 28, 2008 Page 8

CONCLUSION

LG respectfully requests that DOE gr ant a waiver and interim waiver from existing test standards for LG Multi V multi-split systems until such time as a representative test procedure is deve loped and adopted for such products. We would be pleased to discuss this request with DOE and provide further

information as needed. We hereby certify that al l manufacturers of domestica lly marketed units of the same product type have been notified by letter of this petition and application, copies of which letters are attached (Appendix B).

Sincerely,

John I. Taylor Vice President, Government Relations LG Electronics USA, Inc. 1750 K Street NW Washington, DC 20006 Phone: 202–719-3490 Fax: 847-941-8177 Email: jtaylor@lge.com

Of counsel: John A. Hodges Wiley Rein LLP 1776 K Street NW Washington, DC 20006 Phone: 202-719-7000 Fax: 202-719-7049 Email: jhodges@wileyrein.comApril 28, 2008 Page 9

APPENDIX A

Multi V Series Outdoor Units Plus II 3Ø 460V 60 Hz models: ARUN076DT2, ARUN096DT2, ARUN115DT2, ARUN134DT2, ARUN 154DT2, ARUN173DT2, ARUN192DT2, ARUN211DT2, ARUN230DT2, ARUN250D T2, ARUN270DT2, ARUN290DT2, and ARUN310DT2 with nominally rated cooling capacities of 76,400, 95,900, 114,700, 133,800, 152,900, 172,000, 191,100, 211,000, 230,000, 250,000, 270,000, 290,000, and 310,000 Btu/h respectively. The maximum number of connectable indoor units is 13, 16, 20, 23, 26, 29, 32, 35, 39, 42, 49, and 52 respectively. Plus II 3Ø 230/208V 60 Hz models: ARUN076BT2, ARUN096BT2, ARUN115BT2, ARUN154BT2, ARUN173B T2, ARUN192BT2, ARUN211BT2, and ARUN230BT2 with nominally rated cooling capacities of 76,400, 95,900, 114,700, 152,900, 172,000, 191,100, 211,000, and 230,000 Btu/h respectively. The maximum number of connectable indoor units is 13, 16, 20, 26, 29, 32, 35, and 39 respectively. Sync II 3Ø 230/208V 60 Hz models: ARUB076BT2, ARUB096BT2, ARUB115BT2, ARUB154BT2, ARUB173B T2, ARUB192BT2, ARUB211BT2, and ARUB230BT2 with nominally rated cooling capacities of 76,400, 95,900, 114,700, 152,900, 172,000, 191,000, 211,000, and 230,000 Btu/h respectively. The maximum number of connectable indoor units is 13, 16, 20, 26, 29, 32, 35, and 39 respectively.

Compatible Indoor Units for th e Above-Listed Outdoor Units:

Wall Mounted: ARNU073SEL2, ARNU093SEL2, ARNU123SEL2, ARNU153SEL2, ARNU183S5L2, and ARNU243S5L2 with nominally rated cooling capacities of 7,500, 9,600, 12,300, 15,400, 19,100, a nd 24,200 Btu/h respectively. Art Cool Gallery: ARNU073SF*2, ARNU093SF*2, and ARNU123SF*2 with nominally rated cooling capacities of 7,500, 9,600, and 12,300 Btu/h respectively.

Art Cool Mirror: ARNU073SE*2, ARNU093SE*2, ARNU123SE*2, ARNU153SE*2, ARNU183S3*2, and ARNU243S3*2 with nominally rated cooling capacities of 7,500, 9,600, 12,300, 15,400, 19,100, a nd 24,200 Btu/h respectively. 4 Way Cassette: ARNU073TEC2, ARNU093TEC2, ARNU123TEC2, ARNU153TEC2, ARNU183TEC2, ARNU243T PC2, ARNU283TPC2, ARNU363TNC2, ARNU423TMC2, and ARNU483TMC2 with nomin ally rated cooling capacities of 7,500, 9,600, 12,300, 15,400, 19,100, 24,200, 28,000, 36,200, 42,000, and 48,100 Btu/h respectively.April 28, 2008 Page 10 2 Way Cassette: ARNU183TLC2 and ARNU243TLC2 with nominally rated capacities of 19,100 and 24,200 Btu/h respectively. 1 Way Cassette: ARNU073TJC2, ARNU093TJC2, and ARNU123TJC2 with nominally rated capacities of 7,500, 9,600, and 12,300 Btu/h respectively. Ceiling Concealed Duct - Low Static: ARNU073B1G2, ARNU093B1G2, ARNU123B1G2, ARNU153B1G2, ARNU183 B2G2, and ARNU243B2G2 with nominally rated capacities of 7,500, 9,600, 12,300, 15,400, 19,100, and 24,200 Btu/h respectively. Ceiling Concealed Duct - Built-in: ARNU073B3G2, ARNU093B3G2, ARNU123B3G2, ARNU153B3G2, ARNU183 B4G2, and ARNU243B4G2 with nominally rated capacities of 7,500, 9,600, 12,300, 15,400, 19,100, and 24,200 Btu/h respectively. Ceiling Concealed Duct - High Static: ARNU073BHA2, ARNU093BHA2, ARNU123BHA2, ARNU153BHA2, ARNU183BHA2, ARNU243BHA2, ARNU283BGA2, ARNU363BGA2, ARNU423BGA2, ARNU483BRA2, URNU763B8A2, and URNU963B8A2 with nom inally rated cap acities of 7,500, 9,600, 12,300, 15,400, 19,100, 24,200, 28,000, 36,200, 42,000, 48,100, 76,400, and 95,500 Btu/h respectively. Ceiling & Floor: ARNU093VEA2 and ARNU123VEA 2 with nominally rated capacities of 9,600 and 12,300 Btu/h respectively. Ceiling Suspended: ARNU183VJA2 and ARNU243VJA2 with nominally rated capacities of 19,100 and 24,200 Btu/h respectively. Floor Standing with Case: ARNU073CEA2, ARNU093CEA2, ARNU123CEA2, ARNU153CEA2, ARNU183 CFA2, and ARNU243CFA2 with nominally rated capacities of 7,500, 9,600, 12,300, 15,400, 19,100, and 24,200 Btu/h respectively. Floor Standing without Case: ARNU073CEU2, ARNU093CEU2, ARNU123CEU2, ARNU153CEU2, ARNU183 CFU2, and ARNU243CFU2 with nominally rated capacities of 7,500, 9,600, 12,300, 15,400, 19,100, and 24,200 Btu/h respectively.April 28, 2008 Page 11

APPENDIX BDaikin AC (Americas), Inc. 1645 Wallace Drive Suite 110 Carrollton, TX 75006 Attn: Yoshinobu Inoue, President Fujitsu General America, Inc. 353 Route 46 West Fairfield, NJ 07004 Attn: Roy Kuczera, Senior Vice President of HVAC Sales, and Arturo Thur De Koos, Engineering & Technical Support Mitsubishi Electric & Electronics USA, Inc. 4300 Lawrenceville-Suwanee Road Suwanee, GA 30024 Attn: S. William Rau, Senior Vice President and Genera l Manager, HVAC Advanced Products Division Mitsubishi Heavy Industrie s Climate Control Inc. 3030 E. Victoria Street Rancho Dominguez, CA 90221 Attn: Caesar Ceballos, Technical Support Manager Samsung Air Conditioning Samsung Electronics Products, LTD. 2865 Pellissier Pl. Whittier, CA 90601 Attn: John Miles, Director, E ngineering & Technical Support Sanyo Fisher (USA) Corp. 1690 Roberts Blvd. Suite 110 Kennesaw, GA 30144 Attn: Gary Nettinger, Vice President, Technical and Service Air-Conditioning and Refrig eration Institute 4100 North Fairfax Drive Suite 200 Arlington, VA 22203 Attn: Stephen R. Yurek, Esq., President