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[Federal Register Volume 76, Number 244 (Tuesday, December 20, 2011)]
[Notices]
[Pages 78910-78915]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-32529]

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DEPARTMENT OF ENERGY

Office of Energy Efficiency and Renewable Energy

[Case No. CAC-036]

Decision and Order Granting a Waiver to LG Electronics U.S.A., 
Inc. From the Department of Energy Commercial Package Air Conditioner 
and Heat Pump Test Procedures

AGENCY: Office of Energy Efficiency and Renewable Energy, Department of 
Energy.

ACTION: Decision and Order.

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SUMMARY: This notice publishes the U.S. Department of Energy's (DOE) 
Decision and Order in Case No. CAC-036, which grants LG Electronics 
U.S.A., Inc. (LG) a waiver from the existing DOE test procedures 
applicable to commercial package air-source central air conditioners 
and heat pumps. The waiver is applicable to the LG Multi V III variable 
refrigerant flow (VRF) multi-split commercial heat pumps specified in 
LG's July 22, 2011 petition for waiver. As a condition of this waiver, 
LG must use the alternate test procedure set forth in this notice to 
test and rate its Multi V III VRF multi-split commercial heat pumps.

DATES: This Decision and Order is effective December 20, 2011.

FOR FURTHER INFORMATION CONTACT: Dr. Michael G. Raymond, U.S. 
Department of Energy, Building Technologies Program, Mailstop EE-2J, 
1000 Independence Avenue SW., Washington, DC 20585-0121. Telephone: 
(202) 586-9611. Email: Michael.Raymond@ee.doe.gov.
    Ms. Elizabeth Kohl, U.S. Department of Energy, Office of the 
General Counsel, Mail Stop GC-71, Forrestal Building, 1000 Independence 
Avenue SW., Washington, DC 20585-0103. Telephone: (202) 586-7796. 
Email: mailto:Elizabeth.Kohl@hq.doe.gov.

SUPPLEMENTARY INFORMATION: DOE issues notice of this Decision and Order 
in accordance with Title 10 of the Code of Federal Regulations (10 CFR) 
431.401(f)(4). In this Decision and Order, DOE grants LG a waiver from 
the existing DOE commercial package air conditioner and heat pump test 
procedures for the basic models of its Multi V III VRF multi-split 
equipment specified in its July 22, 2011 petition for waiver. DOE also 
requires the use of AHRI 1230 with Addendum 1 as the alternative test 
procedure for these basic models.
    Today's decision requires LG to make representations concerning the 
energy efficiency of this equipment consistent with the provisions and 
restrictions of the alternate test procedure in the Decision and Order 
below, and the representations must fairly disclose the test results. 
(42 U.S.C. 6314(d)) The same standard applies to distributors, 
retailers, and private labelers when making representations of the 
energy efficiency of this equipment. Id.

    Issued in Washington, DC, on December 14, 2011.
Kathleen B. Hogan,
Deputy Assistant Secretary for Energy Efficiency, Energy Efficiency and 
Renewable Energy.

Decision and Order

    In the Matter of: LG Electronics U.S.A., Inc. (LG) (Case No. CAC-
036).

Background

    Title III, Part C of the Energy Policy and Conservation Act of 1975 
(EPCA), Public Law 94-163 (42 U.S.C. 6311-6317), established the Energy 
Conservation Program for certain industrial equipment, which includes 
commercial air conditioning equipment, the focus of this decision and 
order.\1\
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    \1\ For editorial reasons, upon codification in the U.S. Code, 
Part C was re-designated Part A-1.
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    Part C specifically includes definitions (42 U.S.C. 6311), test 
procedures (42 U.S.C. 6314), labeling provisions (42 U.S.C. 6315), 
energy conservation standards (42 U.S.C 6313), and the authority to 
require information and reports from manufacturers (42 U.S.C. 6316). 
With respect to test procedures, Part C authorizes the Secretary of 
Energy (the Secretary) to prescribe test procedures that are reasonably 
designed to produce results that measure energy efficiency, energy use, 
and estimated annual operating costs, and that are not unduly 
burdensome to conduct. (42 U.S.C. 6314(a)(2))
    For commercial package air-conditioning and heating equipment, EPCA 
provides that ``the test procedures shall be those generally accepted 
industry testing procedures or rating procedures developed or 
recognized by the Air-Conditioning and Refrigeration Institute [ARI] or 
by the American Society of Heating, Refrigerating and Air-Conditioning 
Engineers [ASHRAE], as referenced in ASHRAE/IES Standard 90.1 and in 
effect on June 30, 1992.'' (42 U.S.C. 6314(a)(4)(A)) Under 42 U.S.C. 
6314(a)(4)(B), if the industry test procedure for commercial package 
air-conditioning and heating equipment is amended, EPCA directs the 
Secretary to amend the corresponding DOE test procedure unless the 
Secretary determines, by rule and based on clear and convincing 
evidence, that such a modified test procedure does not meet the 
statutory criteria set forth in 42 U.S.C. 6314(a)(2) and (3).
    On December 8, 2006, DOE published a final rule adopting test 
procedures for commercial package air-conditioning and heating 
equipment, effective January 8, 2007. 71 FR 71340. Table 1 to Title 10 
of the Code of Federal Regulations (10 CFR) 431.96 directs 
manufacturers of commercial package air conditioning and heating 
equipment to use the appropriate procedure when measuring energy 
efficiency of this equipment. For commercial package air-source 
equipment with capacities between 65,000 and 760,000 Btu/h, ARI 
Standard 340/360-2004 is the applicable test procedure.
    DOE's regulations for covered products and equipment permit a 
person to seek a waiver from the test

[[Page 78911]]

procedure requirements for covered commercial equipment if at least one 
of the following conditions is met: (1) The petitioner's basic model 
contains one or more design characteristics that prevent testing 
according to the prescribed test procedures; or (2) the prescribed test 
procedures may evaluate the basic model in a manner so unrepresentative 
of its true energy consumption as to provide materially inaccurate 
comparative data. 10 CFR 431.401(a)(1). Petitioners must include in 
their petition any alternate test procedures known to the petitioner to 
evaluate the basic model in a manner representative of its energy 
consumption. 10 CFR 431.401(b)(1)(iii). The Assistant Secretary for 
Energy Efficiency and Renewable Energy (Assistant Secretary) may grant 
a waiver subject to conditions, including adherence to alternate test 
procedures. 10 CFR 431.401(f)(4). Waivers remain in effect according to 
the provisions of 10 CFR 431.401(g).
    The waiver process also permits parties submitting a petition for 
waiver to file an application for interim waiver of the applicable test 
procedure requirements. 10 CFR 431.401(a)(2). The Assistant Secretary 
will grant an interim waiver request if it is determined that the 
applicant will experience economic hardship if the application for 
interim waiver is denied, if it appears likely that the petition for 
waiver will be granted, and/or the Assistant Secretary determines that 
it would be desirable for public policy reasons to grant immediate 
relief pending a determination on the petition for waiver. 10 CFR 
431.401(e)(3). An interim waiver remains in effect for 180 days or 
until DOE issues its determination on the petition for waiver, 
whichever occurs first. It may be extended by DOE for an additional 180 
days. 10 CFR 431.401(e)(4).
    On July 22, 2011, LG filed an application for interim waiver and a 
petition for waiver from the test procedures under 10 CFR 431.96 that 
apply to commercial package air source air conditioners and heat pumps. 
LG's petition requests a waiver from the applicable test procedures for 
its multi-split models designated Multi V III, with capacities ranging 
from 69,000 Btu/h to 414,000 Btu/h, as specified in the petition. The 
applicable test procedure for these heat pumps is ARI 340/360-2004. 
Manufacturers are directed to use these test procedures pursuant to 
Table 1 of 10 CFR 431.96.
    LG seeks a waiver from the applicable test procedures under 10 CFR 
431.96 on the grounds that its Multi V III multi-split heat pumps 
contain design characteristics that prevent testing according to the 
current DOE test procedures. Specifically, LG asserts that the two 
primary factors that prevent testing of its Multi V III multi-split 
variable speed equipment are the same factors stated in the waivers 
that DOE granted to Mitsubishi Electric & Electronics USA, Inc. 
(Mitsubishi) and other manufacturers for similar lines of commercial 
multi-split air-conditioning systems:
     Testing laboratories cannot test products with so many 
indoor units; and
     There are too many possible combinations of indoor and 
outdoor units to test.
    See, e.g., 72 FR 17528 (April 9, 2007) (Mitsubishi); 76 FR 19069 
(April 6, 2011) (Daikin); 76 FR 19078 (April 6, 2011) (Mitsubishi); 76 
FR 31951 (June 2, 2011) (Carrier); 76 FR 50204 (August 12, 2011) 
(Fujitsu General Limited); 76 FR 65707 (Oct. 24, 2011) (LG).
    On August 30, 2011, DOE published LG's petition for waiver in the 
Federal Register, seeking public comment pursuant to 10 CFR 
431.401(b)(1)(iv), and granted the application for interim waiver. 76 
FR 53889. DOE received no comments on LG's petition.

Assertions and Determinations

LG's Petition for Waiver
    LG seeks a waiver from the DOE test procedures for this product 
class on the grounds that its Multi V III VRF multi-split commercial 
heat pumps contain design characteristics that prevent them from being 
tested using the current DOE test procedures. LG asserts that the two 
primary factors that prevent testing of its multi-split variable speed 
equipment are the same factors stated in the waivers that DOE granted 
to Mitsubishi, Fujitsu General Ltd. (Fujitsu), Samsung Air Conditioning 
(Samsung), Daikin, Sanyo, and Carrier for similar lines of commercial 
multi-split air-conditioning systems: (1) Testing laboratories cannot 
test products with so many indoor units; and (2) there are too many 
possible combinations of indoor and outdoor unit to test.
    The Multi V III systems have operational characteristics similar to 
the commercial multi-split equipment manufactured by other 
manufacturers. As indicated above, DOE has already granted waivers for 
these products. The Multi V III system consists of multiple indoor 
units connected to an air-source outdoor unit. These multi-splits are 
used in zoned systems where an outdoor air-source unit can be connected 
with up to 13-61 separate indoor units, which need not be the same 
models. According to LG, the various indoor and outdoor models can be 
connected in a multitude of configurations, with many thousands of 
possible combinations. Consequently, LG requested that DOE grant a 
waiver from the applicable test procedures for its Multi V III product 
designs until a suitable test method can be prescribed.
    In responses to two petitions for waiver from Mitsubishi for 
similar equipment, DOE specified an alternate test procedure to provide 
a basis upon which Mitsubishi could test and make valid energy 
efficiency representations for its R410A CITY MULTI equipment, as well 
as for its R22 multi-split equipment. Alternate test procedures related 
to the Mitsubishi petitions were published in the Federal Register on 
April 9, 2007. See 72 FR 17528 and 72 FR 17533. The LG Multi V III VRF 
systems have operational characteristics similar to the commercial 
multi-split products manufactured by Mitsubishi, as well as by Samsung, 
Fujitsu, Daikin, Carrier, and Sanyo. DOE has also granted waivers to 
these manufacturers. For reasons similar to those published in these 
prior notices, DOE believes that an alternate test procedure is 
appropriate in this instance.
    After DOE granted a waiver to Mitsubishi's CITY MULTI products, the 
Air-Conditioning and Refrigeration Institute (ARI) (now AHRI) formed a 
committee to develop a general testing protocol for VRF systems. The 
committee developed AHRI 1230, which is referenced in ASHRAE 90.1-2010 
as the test procedure for VRF equipment. AHRI 1230 establishes a test 
procedure for VRF multi-split air conditioners and heat pumps. The test 
procedure covers matched VRF systems with cooling and heating 
capacities for outdoor units between 12,000 Btu/h and 300,000 Btu/h. 
DOE is assessing AHRI 1230 with respect to the requirements EPCA 
specifies for test procedures, and will make a preliminary 
determination regarding AHRI 1230 in a future rulemaking.
    AHRI 1230 is very similar to the alternate test procedure in the 
commercial multi-split waivers that DOE previously granted to LG and 
other manufacturers, but contains minor differences in the definition 
of tested combination, the testing of ducted versus non-ducted indoor 
units, and the line lengths. These differences are discussed below.
    First, the definition of ``tested combination'' in AHRI 1230 and 
the alternate test procedure prescribed by DOE in the earlier multi-
split waivers are identical in all relevant respects, except that AHRI 
1230 with Addendum

[[Page 78912]]

1 \2\ allows the use of up to 12 indoor units, as opposed to eight in 
the earlier alternate test procedure.
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    \2\ The revision to the definition of ``tested combination'' to 
allow the use of up to 12 indoor units is the only change made by 
Addendum 1.
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    Second, ANSI/AHRI 1230-2010 requires an additional test. The 
earlier alternate test procedure provides for efficiency rating of a 
non-tested combination in one of two ways: (1) At an energy efficiency 
level determined using a DOE-approved alternative rating method; or (2) 
at the efficiency level of the tested combination utilizing the same 
outdoor unit. In AHRI 1230, similar to the residential test procedure 
set forth in 10 CFR part 430, subpart B, appendix M, multi-split 
manufacturers must also test two or more combinations of indoor units 
with each outdoor unit. The first system combination is tested using 
only non-ducted indoor units that meet the definition of a tested 
combination. The rating given to any untested multi-split system 
combination having the same outdoor unit and all non-ducted indoor 
units is set equal to the rating of the tested system having all non-
ducted indoor units. The second system combination is tested using only 
ducted indoor units that meet the definition of a tested combination. 
The rating given to any untested multi-split system combination having 
the same outdoor unit and all ducted indoor units is set equal to the 
rating of the tested system having all ducted indoor units. The rating 
given to any untested multi-split system combination having the same 
outdoor unit and a mix of non-ducted and ducted indoor units is set 
equal to the average of the ratings for the two required tested 
combinations.
    Third, the alternate test procedure and AHRI 1230 require the use 
of different line lengths for the cooling refrigerant line when 
performing efficiency testing. AHRI 1230 requires longer line lengths 
depending on the type and capacity of the connected indoor units.
    As DOE continues to evaluate AHRI 1230, DOE has granted 
manufacturers' request to use AHRI 1230 as the alternate test procedure 
for testing and rating their commercial multi-split products subject to 
a waiver of DOE's test procedures. DOE prescribed AHRI 1230 as the 
alternate test procedure for those Daikin AC (Americas) Inc. 
(``Daikin'') commercial multi-split equipment that have cooling 
capacities less than or equal to 300,000 Btu/h (76 FR 34685, June 14, 
2011), for Carrier Corporation's (``Carrier'') commercial multi-split 
equipment (76 FR 31951, June 2, 2011), and for LG's interim waiver in 
response to the instant petition.
    LG's petition requested a waiver for the LG Multi V III VRF multi-
split heat pumps with capacities ranging from 69,000 Btu/h to 414,000 
Btu/h. LG requested that DOE permit it to use AHRI 1230 as the 
alternate test procedure to test and rate its Multi V III VRF equipment 
that have capacities less than or equal to 300,000 Btu/h. AHRI 1230 
covers multi-split equipment with cooling and heating capacities for 
outdoor units from 12,000 Btu/h to 300,000 Btu/h. For those Multi V III 
VRF products that have capacities greater than 300,000 Btu/h, LG will 
continue to use the alternate test procedure specified in the earlier 
waivers.
    As discussed above, AHRI 1230 requires longer line lengths for the 
cooling refrigerant line during testing, depending on the type and 
capacity of the connected indoor units. This difference affects the 
resulting energy efficiency determination. Testing according to AHRI 
1230's requirements provides a more conservative estimate of energy 
consumption because it results in a slightly lower efficiency rating 
than testing according to the alternate test procedure.
    In addition, the definition of ``tested combination'' in AHRI 1230 
is more appropriate for these LG products than the definition in the 
current alternate test procedure. As defined in the current alternate 
test procedures for LG's products, the ``tested combination'' of a VRF 
system is defined as one outdoor unit matched with between two and 
eight indoor units. The indoor units must represent the highest sales 
model family, and, together, must have a nominal cooling capacity that 
is between 95% and 105% of the nominal cooling capacity of the outdoor 
unit. Due to the relative size of some of LG's outdoor units and indoor 
units, permitting the matching of up to only eight indoor units may not 
be sufficient to comply with the requirement that the indoor units must 
have a combined capacity that is between 95% and 105% of the nominal 
cooling capacity of the outdoor unit. AHRI 1230, as revised in March 
2011, permits the use of up to twelve indoor units. For consistency 
purposes, DOE also amends the definition of ``tested combination'' in 
the current alternate test procedure to make it identical to the 
definition in AHRI 1230 for those units with capacities greater than 
300,000 Btu/h that are outside the scope of AHRI 1230.
    For the reasons discussed above, DOE believes LG's Multi V III VRF 
multi-split heat pumps cannot be tested using the procedure prescribed 
in 10 CFR 431.96 (ARI Standard 340/360-2004) and incorporated by 
reference in DOE's regulations at 10 CFR 431.95(b)(2)-(3). After 
careful consideration, DOE has decided to prescribe ANSI/AHRI 1230-2010 
as the alternate test procedure for LG's commercial multi-split 
products with capacities less than or equal to 300,000 Btu/h, and the 
modified alternate test procedure described above for those units with 
capacities greater than 300,000 Btu/h that are outside the scope of 
AHRI 1230.

Conclusion

    After careful consideration of all the materials submitted by LG, 
it is ordered that:
    (A) LG is required to test the products listed below with cooling 
capacities of 300,000 Btu/h and less according to the alternate test 
procedure ANSI/AHRI 1230-2010.
    (B) LG shall be required to test the products listed below with 
cooling capacities above 300,000 Btu/h according to the test procedures 
for central air conditioners and heat pumps prescribed by DOE at 10 CFR 
431.96, except that LG shall test each model of outdoor unit with two 
or more combinations of indoor units. The first system combination 
shall be tested using only non-ducted indoor units that meet the 
definition of a tested combination as set forth in subparagraph (C). 
The second system combination shall be tested using only ducted indoor 
units that meet the definition of a tested combination as set forth in 
subparagraph (C). LG shall make representations concerning the products 
covered in this waiver according to the provisions of subparagraph (D):
BILLING CODE 6450-01-P

[[Page 78913]]

[GRAPHIC] [TIFF OMITTED] TN20DE11.009

[[Page 78914]]

[GRAPHIC] [TIFF OMITTED] TN20DE11.010

BILLING CODE 6450-01-C
    (C) Tested combination. The term ``tested combination'' means a 
sample basic model comprised of units that are production units, or are 
representative

[[Page 78915]]

of production units, of the basic model being tested. For the purposes 
of this waiver, the tested combination shall have the following 
features: The basic model of a variable refrigerant flow system (``VRF 
system'') used as a tested combination shall consist of an outdoor unit 
(an outdoor unit can include multiple outdoor units that have been 
manifolded into a single refrigeration system, with a specific model 
number) that is matched with between 2 and 12 indoor units; for multi-
split systems, each of these indoor units shall be designed for 
individual operation.
    (D) Representations. In making representations about the energy 
efficiency of its Multi V III VRF multi-split equipment, for 
compliance, marketing, or other purposes, LG must fairly disclose the 
results of testing under the DOE test procedure in a manner consistent 
with the provisions outlined below:
    (i) For multi-split combinations tested in accordance with this 
alternate test procedure, LG may make representations based on those 
test results.
    (ii) For multi-split combinations that are not tested, LG may make 
representations based on the testing results for the tested combination 
and that are consistent with one of the following methods:
    (a) Rating of non-tested combinations according to an alternative 
rating method approved by DOE; or
    (b) Rating of non-tested combinations having the same outdoor unit 
and all non-ducted indoor units shall be set equal to the rating of the 
tested system having all non-ducted indoor units.
    (c) Rating of non-tested combinations having the same outdoor unit 
and all ducted indoor units shall be set equal to the rating of the 
tested system having all ducted indoor units. To be considered a ducted 
unit, the indoor unit must be intended to be connected with ductwork 
and have a rated external static pressure capability greater than zero 
(0).
    (d) Rating of non-tested combinations having the same outdoor unit 
and a mix of non-ducted and ducted indoor units shall be set equal to 
the average of the ratings for the two required tested combinations.
    (E) This waiver amendment shall remain in effect from the date this 
Decision and Order is issued, consistent with the provisions of 10 CFR 
431.401(g).
    (F) This waiver is issued on the condition that the statements, 
representations, and documentary materials provided by the petitioner 
are valid. DOE may revoke or modify the waiver at any time if it 
determines that the factual basis underlying the petition for waiver is 
incorrect, or the results from the alternate test procedure are 
unrepresentative of the basic models' true energy consumption 
characteristics.
    (G) This waiver applies only to those basic models set out in LG's 
petition for waiver. Grant of this waiver does not release a petitioner 
from the certification requirements set forth at 10 CFR part 429.

    Issued in Washington, DC, on December 14, 2011.
Kathleen B. Hogan,
Deputy Assistant Secretary for Energy Efficiency, Energy Efficiency and 
Renewable Energy.
[FR Doc. 2011-32529 Filed 12-19-11; 8:45 am]
BILLING CODE 6450-01-P
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