Agreement on Minimum Federa l Efficiency Standards, Smart Appliances, Federal Incentives and Related Matters for Specified Appliances

July 30, 2010

THIS AGREEMENT memorializes the commi tments made by the undersigned representatives of the orga nizations (the “Joint Stak eholders”) regarding joint recommendations for new energy and water cons ervation standards, test procedures, tax incentives and Energy Star criteria for speci fied major home appliances. The Joint Stakeholders will jointly submit to the United States Congress and the Administration (including, but not limited to the Departme nt of Energy (DOE) and the Environmental Protection Agency (EPA)) this Agreement a nd the specific recommendations herein in such form as will facilitate their adoption. The Joint Stakeholders agree to pursue a multi-pronged approach designed to ach ieve Congressional and regulatory implementation of all the elements contained in the agreement. Any changes to this agreement must be mutually agreed to by the joint Stakeholders.

1. The Joint Stakeholders will jointly subm it to Congress and, in good faith, proactively seek enactment of the energy and wate r conservation standards contained in Attachment I. The Joint Stakeholde rs will submit to Congress recommended amendments to the Energy Policy and C onservation Act enacting these standards (Attachment II). These amendments include revised standards for refrigerator/freezers, clothes washers, cl othes dryers, room air conditioners and dishwashers.

2. Not later than August 1, 2010, the Joint Stake holders shall submit this agreement to DOE. The Joint Stakeholders shall join tly propose that DOE issue final rules adopting each of the energy conservation stan dards contained in Attachm ent I and the amendments presented to Congress and will proactively advocate for DOE adoption of these standards. The Joint Stakeholders agree that the recommended standards address all of the statutory criteria that th e Department is require d to take into account in promulgating new energy and water c onservation standards for the affected products with respect to the spec ified efficiency criteria.

3. For refrigerators/freezers, clothes washers, room air conditioners and clothes dryers, the Joint Stakeholders sh all submit comments to each product’s DOE docket supporting the recommendations. For refriger ator/freezers, such comment shall be filed not later than August 10, 2010; for clot hes dryers and room air conditioners, not later than September 10, 2010 and for clot hes washers not later than October 31, 2010. In the case of dishwashers (for wh ich no rulemaking is currently underway) not later than September 15, 2010, the Join t Stakeholders shall petition DOE to initiate a rulemaking and to publish a final rule by September 2011.

4. The Joint Stakeholders have made no agr eement concerning the appropriate levels for standby or off mode energy c onsumption and agree that st akeholders will comment toDOE as they view appropriate during DOE ’s rulemaking process for each of the affected products, as applicable.

5. The Joint Stakeholders agree that pending amendments to test procedur es for the affected products should be completed by DOE , subject to input from all stakeholders and agree to recommend that DOE translate the standards contained in this agreement to equivalent levels specified under revised test procedures.

6. The Joint Stakeholders agree to join tly petition DOE to initiate a rulemaking by January 1, 2012 to be completed by Decembe r 31, 2012 to revise the test procedure for refrigerators/freezers to incorporate measured ice maker energy use. The Joint Stakeholders will make good faith efforts to work collaboratively through AHAM’s HRF-1 task force to arrive at a joint test procedure recommendation. AHAM will invite the non-manufacturer signers to this agreement to designate a participant for the task force only for the development of this initial test procedure for refrigerators/freezers to incorporate measured ice maker energy use. As part of the petition to be filed, the Joint Stakehol ders further agree to petition DOE for rulemaking to incorporate measured ice maker energy use into an amended refrigerator standard to be completed with in six months of a re vised test procedure incorporating measured ice maker energy use based on the procedure recommended by AHAM’s HRF-1 task force and to recomm end that this amended standard take effect three years after a final rule is published. This commitment to petition for rulemaking and standards revisions applie s whether a specific consensus test procedure is developed by AHAM ’s HRF-1 task force or not.

7. The Joint Stakeholders agree to submit the letters and attachm ents recommending certain modifications to the test procedures for refrigerator/freezers, clothes washers and clothes dryers contained in Attachme nt III, IV and V not later than August 1, 2010. The Joint Stakeholders agree that each party may advocate for any other modifications to the test procedures, provi ded such modification is not in direct contradiction to the attached recommendations.

8. The Joint Stakeholders will jointly subm it to Congress recommendations for extending the existing federal manufacturer tax credits for specified appliances as described in Attachment VI.

9. The Joint Stakeholders will in good faith jointly develop and proactively support the adoption of federal tax credits or other in centives for widespread deployme nt and effective integration of smart-grid enabled versions of applian ces subject to this agreement across the United States.

10. The Joint Stakeholders will jointly peti tion EPA and DOE no late r than September 30, 2010 to provide a 5% credit to the ener gy performance level required to meet ENERGY STAR eligibility criteria for smart-grid enabled appliances that are subject to this agreement.

211. Any filings, proposals or responses to DOE notices shall be consistent with this Agreement and the parties shall file rulemaki ng petitions, file comments or take other actions with respect to DOE or other re gulatory agencies cons istent with this Agreement.

12. The Joint Stakeholders agree to cooperate w ith each other in the preparation of press releases and public statements in support of this Agreement.

13. The Joint Stakeholders agree to support and cooperate with each other to obtain passage of the legislation described in the Agreement, including advocacy in Congress and to the Adm inistration. The Joint Stakeholders agree to develop and jointly recommend legislative history c oncerning the recommended amendments.

14. The Joint Stakeholders agree to consult with and obtain consent from all parties before supporting, advocating or agreeing to changes in the legislation. Such consent will not unre asonably be withheld.

15. The Joint Stakeholders agree not to attempt to overturn or revise, or to file or support any legal or legislative ch allenge to, the recommendatio ns once adopted, whether by Act of Congress or by rule. The Stakeholders agree to support DOE in a m anner as each one deems to be reasonable and appropria te in defending any legal, legislative, or administrative challenge to a final rule that adopts the proposed standards. This provision will still apply if DOE, on its ow n volition, adopts a rule that includes minor deviations from Attachment I. The Joint Stakeholders agree to consult with respect to their responses to any deviati on from the recommendations and to make good faith efforts to respond jointly.

16. The Joint Stakeholders agree to implement the commitments m ade in this Agreement individually or in groups. Each Joint Stakeholder will respond in good faith to reasonable requests by other Joint Stakeholde rs for joint implementation of any of these commitments.

17. Any additional mutually agreed to change s to this agreement will be provided to Congress and the Administration as necessitated.

18. Nothing in this Agreement is intended to inhibit in any way efforts by individual stakeholders to research, develop, or m ark et products to standards that differ from those contemplated by this Agreement, provided such products are in compliance with applicable laws and regulations.

19. Nothing in this Agreement is intended to direct any technical or product design approach to achieving efficiency s tandards and the parties shall not take any act to establish any such common approach.

20. This Agreement is hereby agreed to, in counterparts, by the undersigned Joint Stakeholders. This Agreement binds th e undersigned Joint St akeholders, their

3employees, their agents, and any successors and will take effect when all signatures are affixed. This agreement applies un til December 31, 2012, except clause 15 which applies until December 31, 2013.

Joint Stakeholders

Manufacturers Advocates

Joseph McGuire Steven Nadel President Executive Director Association of Home Appliance American Council for an Energy Manufacturers Efficient Economy

On Behalf of – Members of Major Appliance Division: Appliance Standards Awareness Project Whirlpool Natural Resources Defense Council General Elec tric Alliance to Save Energy Electrolux Alliance for Water Efficiency LG Electronics Northwest Power and Conservation Council BSH Northeast Energy Efficiency Partnerships Alliance Laundry Consumer Federation of America Viking Range National Consumer Law Center Sub-Zero Wolf Friedrich A/C
U-Line Samsung Sharp Electronics Miele Heat Controller AGA Marvel
Brown Stove
Haier Fagor America Airwell Group Arcelik Fisher & Paykel
Scotsman Ice Indesit Kuppersbusch Kelon DeLonghi

Attachments

4(I) Recommended energy and water conservation standards (II) Recommended legislative amendments (III) Recommendations concerning re frigerator test procedures (IV) Recommendations concerning cl othes washer test procedures (V) Recommendations concerning cl othes dryer test procedures (VI) Recommended legislative amendment for tax incentives

5AHAM-ACEEE Multi-Product Standards Agreement

Attachment IProduct Class Product Description Slope Intercept

S tandard size Automatic Defrost Refrigerator-Freezers 3 Top Freezer w/o TTD ice 25% 7.35 207.0 6 Top Freezer w/ TTD ice 25% 7.65 267.0 4 Side Freezer w/o TTD ice 25% 3.68 380.6 7 Side Freezer w/ TTD ice 25% 7.58 304.5 5 Bottom Freezer w/o TTD ice 20% 3.68 367.2 5a/19 Bottom Freezer w/ TTD ice 20% 4.00 431.2 Manual & Partial Automatic Refrigerator-Freezers
1 Manual Defrost 20% 7.06 198.7
2 Partial Automatic 20% 7.06 198.7 All Refrigerators
1a Manual Defrost 20% 7.06 198.7
3a Automatic Defrost 25% 7.35 207.0
All Freezers 8 Upright with manual defrost 25% 5.66 193.7 9 Upright with automatic defrost 30% 8.70 228.3
10 Chest with manual defrost 25% 7.41 107.8 10a/20 Chest with automatic defrost 30% 10.33 148.1 Compact Size Automatic Defrost Refrigerator-Freezers

13/15 Top Freezer and Bottom Freezer 15% 10.80 301.8

14 Side Freezer 20% 6.08 400.8 Manual & Partial Automatic Refrigerator-Freezers
11 Manual Defrost 25% 8.03 224.3
12 Partial Automatic 25% 5.25 298.5 All Refrigerators
11a Manual defrost 25% 8.03 224.3
13a Automatic defrost 25% 9.53 266.3
All Freezers 16 Upright with manual defrost 10% 8.80 225.7 17 Upright with automatic defrost 10% 10.26 351.9
18 Chest 10% 9.41 136.8
Built-ins Automatic Defrost Refrigerator-Freezers 3B Top Freezer w/o TTD ice 20% 7.84 220.8 4B Side Freezer w/o TTD ice 20% 3.93 406.0 7B Side Freezer w/ TTD ice 20% 8.08 324.8 5B Bottom Freezer w/o TTD ice 15% 3.91 390.2 5aB Bottom Freezer w// TTD ice 15% 4.25 458.2 All Refrigerators
3aB Automatic Defrost 20% 7.84 220.8
All Freezers 9B Upright with automatic defrost 25% 9.32 244.6 Revised Standard Equation January 1, 2014

Change in
Standard AHAM-ACEEE Multi-Product Standards Agreement Refrigerator/FreezerProduct Description Product
Class New Standard
Jan. 1, 2015

(MEF/WF) New Standard
Jan. 1, 2018

(MEF/WF)

Top-Loading, Compact (less than 1.6 cubic feet capacity) 1 1.26/14.0 1.81/11.6

Top-Loading, Standard 2 1.72/8.0 2.0/6.0 Front-Loading, Standard 4 Front-Loading, Compact (less than 1.6 cubic feet capacity) 6 1.72/8.0 2.2/4.5 AHAM-ACEEE Multi-Product Standards Agreement
Clothes WashersProduct Description Product
Class Change in
Standard New Standard (EF)

Vented Electric Standard 1 5% 3.17 Vented Electric Compact 120V 2 5% 3.29 Vented Electric Compact 240V 3 5% 3.05
Vented Gas 4 5% 2.81 Vent-less Electric Compact 240V 5 new 2.37 Vent-less Electric Combination Washer/Dryer 6 new 1.95 AHAM-ACEEE Multi-Product Standards Agreement Dryers

January 1, 2015Product
Class Product Description Change in
Standard New
Standard

(EER) Without Reverse Cycle w/Louvers
1 <6,000 15% 11.2 2 6,000 to 7,999 15% 11.2 3 8,000-13,999 12% 11.0 4 14,000 to 19,999 11% 10.8 5 20,000-27,999 11% 9.4

5a ≥ 28,000 6% 9.0 Without Reverse Cycle w/o Louvers
6 < 6,000 13% 10.2 7 6,000 to 7,999 13% 10.2 8 8,000-10,999 14% 9.7 8a 11,000-13,999 13% 9.6 9 14,000-19,999 11% 9.4

10 ≥ 20,000 11% 9.4 With Reverse Cycle 11 < 20,000 w/Louvers 10% 9.9

12 ≥ 20,000 w/Louvers 11% 9.4 13 < 14,000 w/o Louvers 11% 9.4

14 ≥ 14,000 w/o Louvers 10% 8.8

Casement 15 Casement Only 10% 9.6
16 Casement-Slider 11% 10.5 AHAM-ACEEE Multi-Product Standards Agreement
Room Air Conditioners

June 1, 2014Product Description New Standard
Jan. 1, 2013 Standard ( ≥ 8 place settings plus 6 serving pieces) 307 kWh/year & 5.0 gallons/cycle Compact (< 8 place settings plus 6 serving pieces) 222 kWh/year & 3.5 gallons/cycle AHAM-ACEEE Multi-Product Standards Agreement
Dishwashers1 AHAM-ACEEE Agreement Attachment II

AHAM Products Statutory Provisions Resulting from Negotiation (to be inserted into Energy bill) Section _____

Measuring Icemaker Energy

Section 323(b) of the Energy Policy and Cons ervation Act (42 U.S.C. 6293) is amended by adding after the end of paragraph (23) the following:

“(24) Refrigerator/Freezer Test Procedure.–

(A) By January 1, 2011, the Secretary shall fina lize the test procedure proposed on May 27, 2010 with such modifications as the Secretary d eems appropriate consistent with this Part.

(B) The Secretary shall initiate a rulemaking no later than January 1, 2012 to amend the test procedure only to incorporate measured automatic icemaker energy use and shall publish a final rule by December 31, 2012.

(25) Additional home applia nce test procedures. --

(A) By October 1, 2011, the Secretar y shall publish a final rule amending the residential clothes washer test procedure.

(B) By April 1, 2011, the Secretary shall finalize th e test procedure for clothes dryers proposed on June 29, 2010 with such modifications as the Secr etary deems appropriate consistent with this
Part.

(C) By April 1, 2011, the Secretary shall finalize the test procedure for room air conditioners proposed on June 29, 2010 with such modifica tions as the Secretary deems appropriate consistent with this Part.

Section _____

Refrigerator/Freezer Standards

Section 6295(b) of the Energy Policy and Cons ervation Action (42 U.S.C. 6295) is amended by striking subsection (b)(4) and inserting the following:

“(4) Refrigerators, refrigera tor-freezers and freezers manufact ured on or after January 1, 2014.

(A)(i) In General – Based on the test procedure in effect on July 9, 2010, the following is the maximum energy use allowed in kilowatt hour s per year for the following products (other than refrigerators and refrigerator-freezers with total refrigerated volume exceeding 39 cubic feet2 and freezers with total refrigerated volume ex ceeding 30 cubic feet) manufactured on or after January 1, 2014:3 Refrigerator/Freezer Standards Equation Product Description

Automatic Defrost Refrigerator-Freezers Revised Standard Effective January 1, 2014 Top Freezer w/o TTD ice 7.35 AV+ 207.0 Top Freezer w/ TTD ice 7.65 AV+ 267.0 Side Freezer w/o TTD ice 3.68 AV+ 380.6 Side Freezer w/ TTD ice 7.58 AV+304.5 Bottom Freezer w/o TTD ice 3.68 AV+ 367.2 Bottom Freezer w/ TTD ice 4.0 AV+ 431.2

Manual & Partial Automatic Refrigerator-Freezers
Manual Defrost 7.06 AV+ 198.7
Partial Automatic 7.06 AV+198.7 All Refrigerators
Manual Defrost 7.06AV+198.7
Automatic Defrost 7.35 AV+ 207.0
All Freezers Upright with manual defrost 5.66 AV+ 193.7 Upright with automatic defrost 8.70 AV+ 228.3
Chest with manual defrost 7.41 AV+ 107.8
Chest with automatic defrost 10.33 AV+ 148.1 Compact Size Automatic Defrost Refrigerator-Freezers Top Freezer and Bottom Freezer 10.80 AV+ 301.8
Side Freezer 6.08 AV+ 400.8

Manual & Partial Automatic Refrigerator-Freezers
Manual Defrost 8.03 AV+ 224.3
Partial Automatic 5.25 AV+ 298.5 All Refrigerators
Manual defrost 8.03 AV+ 224.3
Automatic defrost 9.53 AV+ 266.3
All Freezers Upright with manual defrost 8.80 AV+ 225.7 Upright with automatic defrost 10.26 AV+ 351.9
Chest 9.41AV+ 136.8
Built-ins Automatic Defrost Refrigerator-Freezers Top Freezer w/o TTD ice 7.84 AV+ 220.8 Side Freezer w/o TTD ice 3.93 AV+ 406.0 Side Freezer w/ TTD ice 8.08 AV+ 324.8 Bottom Freezer w/o TTD ice 3.91 AV+ 390.2 Bottom Freezer w// TTD ice 4.25 AV+ 458.2 All Refrigerators
Automatic Defrost 7.84 AV+ 220.8
All Freezers Upright with automatic defrost 9.32 AV+ 244.64 (ii) After publication of each test procedure change pursuant to Section 323(b)(24), the Secretary shall publish final rules amending the standards contained in clause (i) according to the procedures in section 323(e )(2), except that the standards amendment pursuant to the test procedure change re quired by 323(b)(24)(B) shall be based on the difference between the average measured automatic ice maker energy use of a representative sample for each product cl ass and the value assumed by DOE for ice maker energy use in the test procedure pub lished pursuant to Section 323(b)(24)(A). Section 323(e)(3) shall not apply.

(iii) The Secretary shall publish any final rule required by clause (ii) within six months of enactment of this paragraph or within six months of publication of a final rule amending the test procedure, whichever is later.

(iv) The Secretary may establish new produc t classes as part of the final amended standard adopted pursuant to the test pro cedure change required by 323(b)(24)(B) if needed to distinguish among products with automatic icemakers.

(v) An amendment adopted pursuant to a test procedure change required by 323(b)(24)(A) shall apply to products manuf actured on or after January 1, 2014. An amendment adopted pursuant to a test proced ure change required by 323(b)(24)(B) shall apply to products manufactured on or after a da te three years from pub lication of the final rule amending the standards.

(vi) For refrigerators, freezers and refriger ator-freezers, the Secret ary may adjust in a rulemaking the slope and intercept of the equa tion in clause (i), based on the energy use of typical products of various sizes in a pr oduct class, provided that the average energy use for each of these classes is the same under the new equations as under the equations in clause (i). Any final rule with such revisions shall be published no later than July 1, 2011.

(vii) A final rule published under clause (ii) pursuant to the test procedure change required by 323(b)(24)(B) or pursuant to clau se (iv) shall not be considered an amendment to the standard fo r purposes of Section 325(m).

(B) Definition of ’Built-in’ product class – refrigerators, freezers and refrigerators with freezer units that are 7.75 c ubic feet or greater in total volume and 24 inches or less cabinet depth not including doors, handles and custom front panels; are designed to be totally encased by cabinetry or panels attach ed during installation; are designed to accept a custom front panel or equipped with an in tegral factory–finished face; are designed to be securely fastened to adjacent cabinetry, walls or floor; and have sides which are not fully finished and are not intended to be visible after installation.

Section _____

Standards for Clothes Washers5 Section 325(g) of the Energy Policy and Conservation Act, (42 U.S.C. 6295(g)) is amended by striking subsection (g)(9) (B) and inserting the following:

(B)(i) Amendment of Standards

. Based on the test procedure in e ffect on July 9, 2010, clothes washers manufactured on or after January 1, 2015 shall comply with the following minimum modified energy factors (MEF) a nd maximum water factors (WF):

For Products Manufactured on and after January 1, 2015

MEF WF Top Loading-Standard 1.72 8.0
Top Loading – Compact 1.26 14.0 Front Loading-Standard 2.2 4.5 Front Loading-Compact (less than 1.6 cu. ft. capacity) 1.72 8.0

(ii) Based on the test procedure in eff ect on July 9, 2010, clothes washers manufactured on or after January 1, 2018 shall comply w ith the following minimu m modified energy factors (MEF) and maximum water factors (WF):

For Products Manufactured on and after January 1, 2018

MEF WF

Top Loading -- Standard 2.0 6.0 Top Loading – Compact 1.81 11.6

(iii) The final rule amending the clothes wa sher test procedure adopted pursuant to Section 323(b)(25)(A) shall also amend the st andards contained in clauses (i) and (ii) according to the procedures in section 323(e )(2). Section 323(e)(3) shall not apply to these amended standards. Amended standards based on clause (i) sh all apply to products manufactured on or after January 1, 2015 a nd amended standards based on clause (ii) shall apply to products manufact ured on or after January 1, 2018.

(iv) The Secretary shall in tegrate standby and off mode energy consumption into the amended MEF standards required pursuant to clause (iii). These amended MEF standards shall reflect levels of standby and off mode energy consumption that meet the criteria under section 325(o).

Section _____ Clothes Dryers

Section 325(g) of the Energy Policy and Conservation Act, (42 U.S.C. 6295(g)) is amended by adding a subsecti on (g)(4)(D) as follows:

“(D)(i) Based on the test proce dure in effect on July 9, 2010 as applicable, clothes dryers manufactured on and after January 1, 2015 shall meet the following minimum energy factors (EF):6 Product Description New Standard (EF)
Vented Electric Standard 3.17 Vented Electric Compact 120V 3.29 Vented Electric Compact 240V 3.05
Vented Gas 2.81 Vent-Less Electric Compact 240V 2.37 Vent-Less Electric Combination Washer/Dryer 1.95

(ii) The final rule amending the clothes drye r test procedure adopted pursuant to Section 323(b)(25)(B) shall also amend the standards contained in clause (i) according to the procedures in section 323(e)(2), except that for the purposes of establishing a representative sample of products, DOE sha ll choose a sample of minimally compliant dryers which automatically terminate the drying cycle at no less than 4% remaining moisture content. Section 323(e)(3) shall no t apply to these amended standards. The amended standards shall apply to produc ts manufactured on or after January 1, 2015.

(iii) The Secretary shall integrate standby a nd off mode energy consumption into the amended EF standards required pursuant to cl ause (ii). These amended EF standards shall reflect levels of sta ndby and off mode energy consumption that meet the criteria under section 325(o).

Section _______

Room Air Conditioner Standards - Section 325(c) of the En ergy Policy and Conservation Act, (42 U.S.C. 6295(c)) is amended by adding subsection (c)(3) as follows:

“(3) (A)(i) Based on the test procedure in effect on July 9, 2010 as applicable, the minimum energy efficiency ratio of room air conditioners manufactured on and after June 1, 2014 shall be as follows:

Product Description PROPOSAL (June 1, 2014)
New Standard EER Without Reverse Cycle w/Louvers
<6,000 11.2 6,000 to 7,999 11.2 8,000-13,999 11.0 14,000 to 19,999 10.8 20,000-27,999 9.4

≥ 28,000 9.0 Without Reverse Cycle w/o Louvers
<6,000 10.2 6,000 to 7,999 10.2 8,000-10,999 9.7 11,000-13,999 9.6 14,000 to 19,999 9.4

≥ 20,000 9.4

With Reverse Cycle <20,000 w/Louvers 9.9

≥ 20,000 w/Louvers 9.4 <14,000 w/o Louvers 9.4

≥ 14,000 w/o Louvers 8.87 Casement Casement Only 9.6
Casement-Slider 10.5

(ii) The final rule amending the room air c onditioner test procedur e adopted pursuant to Section 323(b)(25)(C) shall also amend the standards contained in clause (i) according to the procedures in section 323( e)(2). Section 323(e)(3) shal l not apply to these amended standards. The amended standards shall appl y to products manufactur ed on or after June 1, 2014.

(iii) The Secretary shall integrate standby a nd off mode energy consumption into the amended EER standards required pursuant to cl ause (ii). These amended EER standards shall reflect levels of sta ndby and off mode energy consumption that meet the criteria under section 325(o).

Section_ Dishwashers
Section 325(g)(10) of The Energy Policy and Conservation Act (42 U.S.C. 6295(g)(10)) is amended by striking subparagraph (A), by redesignating subparagraph (B) as subparagraph (D), and by inserting the following before redesignated s ubparagraph (D):

(A) A dishwasher manufactured on or after January 1, 2010 shall— (i) for a standard size dishwash er not exceed 355 kWh/year and 6.5 gallons per cycle; and (ii) for a compact size dishwasher not exceed 260 kWh/year and 4.5 gallons per cycle.

(B) a dishwasher manufactured on or after January 1, 2013 shall— (i) for a standard size dishwash er not exceed 307 kwh/year and 5.0 gallons per cycle; and (ii) for a compact size dishwasher not exceed 222 kwh/year and 3.5 gallons per cycle.

(C) Any final rule amending the dishwa sher test procedure after July 9, 2010, and before January 1, 2013 shall also amend the standards contained in subparagraph (B) according to the pr ocedures in section 323(e)(2). Section 323(e)(3) shall not apply to these amended standards. The amended standards shall apply to products manufactured on and after January 1, 2013.

Section__. Energy Star8 Section 324a of the Energy Policy and Conservation Act (42 USC 6294a) is amended by adding a new subsection _ as follows:

“ (_) Credit for Smart Appliances

Not later than 180 days after enactment, the Administrator and the Secretary shall determine whether to update the Energy Star criteria for residential refrigerators/freezers, dishwashers, clothes washers, clothes drye rs, and room air conditioners in order to incorporate smart grid and demand respons e features, after so liciting comments under paragraph (c)(5)." [of EPCA 324A]July 20, 2010

The Honorable Catherine R. Zoi Assistant Secretary Office of Energy Efficiency and Renewable Energy U.S. Department of Energy 1000 Independence Avenue, SW Washington, DC 20585

Dear Assistant Secretary Zoi:

The Association of Home Appliance Manufact urers (AHAM) and efficiency organizations, which are being coordinated by the American Council for an Energy-Efficient Economy (ACEEE), ha ve agreed to a set of recommendations that should be addressed as the Department of Energy modifies the test proc edure for refrigerator/freezers.

Please find these recommendations attached, and we look forward to working with your office as the test procedure ru lemaking progresses.

Sincerely,

Kevin Messner Steven Nadel Vice President, Government Relations Executive Director AHAM ACEEE

cc: Kathleen Hogan, Deputy Assistan t Secretary for Energy Efficiency Roland Risser, Program Manager for Building Technologies

## Refrigerator/Freezer Test Procedure Changes
Recommendations

1. We are committed to working with DOE to develop a test procedure for icemaker
energy use.

2. DOE should include a placeholder valu e for icemaker energy use as proposed (75 FR 29847) until a test procedure for icem aker energy use is established, but this placeholder should only be an interim step.

3. DOE should initiate a rulemaking no later than Januar y 1, 2012 (and preferably earlier) to amend the test procedures to incorporate measured icemaker energy use. DOE should publish a final rule for amended test procedures by December 31, 2012 (and preferably earlier). By Ju ly 1, 2013, DOE should publish a final rule amending energy conser vation standards to adjust the standard levels for any difference between the placeholder va lue as proposed (75 FR 29847) and the average energy use of a representativ e sample of icemakers by product class as measured under the amended test procedure and in accordance with the new compartment temperatures that will become effective on January 1, 2014. The effective date of the amended standards would be three years after publication of the final rule. (Note: We have also included this recommendation in proposed legislative language.)

4. As part of the icemaker test procedure development, DOE should collect field data on energy use and ice production fo r different types of icemakers ( e.g.
, automatic and manual), assuring a nat ionally representative sampling.

5. DOE should join, and f und NIST’s participation in, the task force set up by AHAM and other interested parties to incorporat e automatic icemaker energy use into the refrigerator/freezer test procedure.

p 2July 20, 2010

The Honorable Catherine R. Zoi Assistant Secretary Office of Energy Efficiency and Renewable Energy U.S. Department of Energy 1000 Independence Avenue, SW Washington, DC 20585

Dear Assistant Secretary Zoi:

The Association of Home Appliance Manufact urers (AHAM) and efficiency organizations, which are being coordinated by the American Council for an Energy-Efficient Economy (ACEEE), ha ve agreed to a set of recommendations that should be addressed as the Department of Energy modifies the test pr ocedure for clothes washers.

Please find these recommendations attached, and we look forward to working with your office as the test procedure ru lemaking progresses.

Sincerely,

Kevin Messner Steven Nadel Vice President, Government Relations Executive Director AHAM ACEEE

cc: Kathleen Hogan, Deputy Assistan t Secretary for Energy Efficiency Roland Risser, Program Manager for Building Technologies

## Clothes Washer Test Procedure Changes Principles

Before finalizing a revised test procedur e for residential clothes washers, the Department should:

• Gather or develop information on cont emporary laundry practices in the US, including temperature settings, average cycl es per year, special purpose machine cycles*, the size of a minimum laundry load, the size of an average load, and the frequency distribution of various laundry loads (load adjustm ent factor) for incorporation into t he test procedure.

• Ensure that the test procedure does not contain any un warranted bias in favor of large capacity washers.

• Extend Table 5.1 (Test Load Size s) to a basket size of 6.0 ft 3 ( specific edits will be provided ).

• Incorporate AHAM test cloth changes to improve the reproducibility ( specific edits will be provided ).

All of the above mentioned items shall be developed through DOE’s current residential clothes washer test procedure rulemaking, to be completed by October 1, 2011, and applicable to the 2015 standard.

*Special purpose machine cycles inclu de so-called “steam” cycles and periodic manufacturer-recommended non-laundry cycles fo r cleaning or deodorizing the laundr y drum.

p 2July 20, 2010

The Honorable Catherine R. Zoi Assistant Secretary Office of Energy Efficiency and Renewable Energy U.S. Department of Energy 1000 Independence Avenue, SW Washington, DC 20585

Dear Assistant Secretary Zoi:

The Association of Home Appliance Manufact urers (AHAM) and efficiency organizations, which are being coordinated by the American Council for an Energy-Efficient Economy (ACEEE), ha ve agreed to a set of recommendations that should be addressed as the Department of Energy modifies the test procedure for clothes dryers.

Please find these recommendations attached, and we look forward to working with your office as the test procedure ru lemaking progresses.

Sincerely,

Kevin Messner Steven Nadel Vice President, Government Relations Executive Director AHAM ACEEE

cc: Kathleen Hogan, Deputy Assistan t Secretary for Energy Efficiency Roland Risser, Program Manager for Building Technologies

## Clothes Dryer Test Procedure Changes
Recommendations

1. DOE should update the initia l RMC, from the current assumption of 70%, based on the best available data (ideally based on a nationally representative sample).

2. DOE should update the number of dryer cycles/year, from the curren t assumption of 416 cycles/year, based on t he best available data (ideally based on a nationally representative sample).

3. DOE should update the size of the dryer test load, from the curr ent test load of 7 lbs, based on best available data (ideally based on a nationally representative sample).

4. DOE should modify the test procedure to address the effectiveness of automatic termination controls (e.g. moisture sensor and temperature sens or controls).

5. DOE should create a v entless dryer (including ventless combination washer/dryer) test procedure to inform a baseline energy consumption level for this new product category.

6. Revise Section 1.11 of 10 CFR 430 Subpart B, Appendix D to more clearly account for electronic c ontrols. “. . . mark , visual indicator or detent which indicates a preferred...”

7. Correct Section 3.1 of 10 CFR 430 Subpart B, Appendix D to “. . . prevent deflection of the dryer drum surface . . .”

Schedule: All of the above-m entioned items shall be develo ped through DOE’s current clothes dryers test procedure rulemaking, to be completed by April 1, 2011, and applicable to the 2015 standard.

p 2AHAM-ACEEE Agreement Attachment VI

H.R. xxxx

A bill to modify and extend the tax credit applicable to energy efficient appliances and other matters

Sec. 1. Modify and extend the energy efficient appliance credit.

(a) Modification and extension of rules applicable to dishwa shers.-- Paragraph (b)(1) of section 45M is amended by striking “and” at the end of subparagraph (A); by striking “.” and inserting “,” in subparagraph (B); and adding the following subparagraphs:

“(C) $25 in the case of a dishwasher wh ich is manufactured in calendar year 2011 and which uses no more than 307 kilo watt hours per year and 5.0 gallons per cycle (5.5 gallons per cycle for dishwash ers designed for greater than 12 place settings),

“(D) $50 in the case of a dishwasher wh ich is manufactured in calendar year 2011, 2012, or 2013 and which uses no more th an 295 kilowatt hours per year and 4.25 gallons per cycle (4.75 gallons per cycl e for dishwashers designed for greater than 12 place settings), and

“(E) $75 in the case of a dishwasher wh ich is manufactured in calendar year 2011, 2012, or 2013 and which uses no more than 280 kilowatt hours per year and 4.0 gallons per cycle (4.5 gallons per cycle fo r dishwashers designed for greater than 12 place settings).”

(b) Modification and extension of rules applicable to clothe s washers.--Paragraph (b)(2) of section 45M is amended striking “and” at the end of subparagraph (C); by striking “.” and inserting “,” in subparagraph (D); and by adding the following subparagraphs:

“(E) $175 in the case of a top-loading clothes washer manufactured in calendar year 2011 and which meets or exceeds a 2.2 modified energy factor and does not exceed a 4.5 water consumption factor,

“(F) $200 in the case of a top-loading clothes washer manufactured in calendar year 2011, 2012, or 2013 and which meets or exceeds a 2.4 modified energy factor and does not exceed a 4.2 water consumption factor, and

“(G) $250 in the case of a re sidential or commercial cl othes washer manufactured in calendar year 2011, 2012, or 2013 which meets or exceeds a 2.8 modified energy factor and does not exceed a 3.5 water consumption factor.”(c) Modification and extension of rules applicable to refrige rators.--Paragraph (b)(3) of section 45M is amended by striking “and” at the end of subparagraph (C); by striking “.” and inserting “,” in subparagraph (D); and by adding the following subparagraphs:

“(E) $150 in the case of a refrigerator manufactured in calendar year 2011, 2012, or 2013 and which consumes at least 30 percent less energy than the 2001 energy conservation standards, and

“(F) $200 in the case of a refrigerator manufactured in calendar year 2011, 2012, or 2013 and which consumes at least 35 percent less energy than the 2001 energy conservation standards.”

(d) Modification of rules to include freezers.

(1) In general.--Subsection (b) of section 45M is amended by adding the following paragraph:

“(4) Freezers. The applicable amount is-- “(A)(i) $150 in the case of an automatic defrost freezer manufactured in calendar year 2011 or 2012 (other than a freezer described in subparagraph (B)) and which consumes at least 30 percent less en ergy than the 2001 energy conservation standards, (ii) $150 in the case of a manual defrost freezer manufactured in calendar year 2011 or 2012 (other than a freezer desc ribed in subparagraph (B)) and which consumes at least 25 percent less en ergy than the 2001 energy conservation standards, and

“(B)(i) $200 in the case of an automatic defrost freezer manufactured in calendar year 2011, 2012, or 2013 and which consumes at least 40 percent less energy than the 2001 energy conservation standards. (ii) $200 in the case of a manual defrost freezer manufactured in calendar year 2011, 2012, or 2013 and which consumes at l east 35 percent less energy than the 2001 energy conserva tion standards”

(2) Definition.-- Subsection (f) of section 45M is amended by adding the following paragraphs:

“(11) Freezer. The term “freezer” m eans a residential model freezer which has
an internal volume of at least 16.5 cubic feet. ”

(e) Aggregate credit amount allowed.

(1) In general.-- Paragraph (e)(1) of section 45M is amended by striking “$75,000,000” and inserting “$100,000,000” and by adding “For the period of all prior taxable years beginning after December 31, 2007 and ending before January1, 2011, the preceding sentence shall be a pplied by substituting ‘$75,000,000’ for ‘$100,000,000’.”

(2) Exclusion of certain appliances.--Paragraph (e)(2) of section 45M is amended to read as follows:

“(2) Amount allowed for certain refrigerat ors and clothes washers. Refrigerators described in subsection (b)(3)(D) and cl othes washers described in subsection (b)(2)(D) shall not be taken into account w ith respect to the $75,000,000 limitation described in paragraph (1). Dishwashers described in subsection (b)(1)(E), clothes washers described in subsection (b)(2)(F) and (b)(2)(G), refrigerators described in subsecti on (b)(3)(F), and freezers described in subsection (b)(4)(B), shall not be take n into account with respect to the $100,000,000 limitation described in paragraph (1).”

(3) Gross receipts limita tion.—Paragraph (e)(3) of s ection 45M is amended by adding at the end the following senten ce: “For taxable years beginning after December 31, 2010, the preceding sentence sha ll be applied by substituting ‘4 percent’ for ‘2 percent’.’’

Sec. 2. Direct payment of energy efficien t appliances tax credit.--In the case of any taxable year which includes the last day of calendar year 2011 or calendar year 2012, a taxpayer who elects to waive the credit wh ich would otherwise be determined with respect to the taxpayer under section 45M of the Internal Revenue Code of 1986 for such taxable year shall be treated as making a pa yment against the tax imposed under subtitle A of such Code for such taxable year in an amount equal to 85 percent of the amount of the credit which would otherwise be so dete rmined. Such payment shall be treated as made on the later of the due date of the retu rn of such tax or the date on which such return is filed. Elections unde r this section may be made separately for 2011 and 2012, but once made shall be irrevocable. No amount shall be includible in gross income or alternative minimum taxable inco me by reason of this section.

Sec. 3. Effective date.--The provisions of this section shall appl y to qualified energy efficient appliances produced after December 31, 2010.