CHAPTER 1. INTRODUCTION

TABLE OF CONTENTS

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

1.2 OVERVIEW OF ENERGY CONSERVATION STANDARDS FOR SINGLE 

PACKAGE VERTICAL AIR CONDITIONERS AND SINGLE PACKAGE VERTICAL

HEAT PUMPS ................................................................................................................. 1-1

1.3 PROCESS FOR SETTING ENERGY CONSERVATION STANDARDS ................... 1-2

1.4 STRUCTURE OF THE DOCUMENT ............................................................................ 1-4

LIST OF TABLES

Table 1.2.1: Current Federal Energy Conservation Standards for Single Package Vertical Air 

Conditioners and Heat Pumps ...................................................................................................... 1-2

 

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CHAPTER 1. INTRODUCTION

1.1 PURPOSE OF THE DOCUMENT

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

analyses and results supporting the information presented in the notice of proposed rulemaking

(NOPR) for single package vertical air conditioners and single package vertical heat pumps

(collectively referred to as single package vertical units or SPVU). This NOPR TSD reports on 

the activities and analyses conducted in support of the NOPR.

1.2 OVERVIEW OF ENERGY CONSERVATION STANDARDS FOR SINGLE 

PACKAGE VERTICAL AIR CONDITIONERS AND SINGLE PACKAGE 

VERTICAL HEAT PUMPS

Title III of the Energy Policy and Conservation Act of 1975 (EPCA), Pub. L. 94-163, as 

amended, sets forth a variety of provisions concerning energy efficiency. Part Ca of Title III 

created the Energy Conservation Program for Certain Industrial Equipment, a program covering 

single package vertical air conditioners (SPVACs) and single package vertical heat pumps 

(SPVHPs), the subjects of this rulemaking. (42 U.S.C. 6311-6317) In general, this program 

addresses the energy efficiency of certain types of commercial and industrial equipment. 

Relevant provisions of EPCA specifically include definitions (42 U.S.C. 6311), energy 

conservation standards (42 U.S.C. 6313), test procedures (42 U.S.C. 6314), labelling provisions 

(42 U.S.C. 6315), and the authority to require information and reports from manufacturers (42 

U.S.C. 6316).

EPCA contains mandatory energy conservation standards for commercial heating, airconditioning, and water-heating equipment, including the single package vertical units that are 

the subject of this rulemaking. (42 U.S.C. 6313(a)) The Energy Independence and Security Act 

of 2007 (EISA 2007) amended EPCA by prescribing definitions and setting minimum energy 

conservation standards for SPVACs and SPVHPs (42 U.S.C. 6313(a)(10)(A)). DOE codified the 

efficiency levels contained in EISA 2007 for SPVU as part of the March 2009 final rule technical 

amendment. 74 FR 12058 (March 7, 2009). The current standards are set forth in Table 1.2.1.

The efficiency standards for SPVACs and SPVHPs established by EISA 2007 correspond to the 

levels contained in ASHRAE Standard 90.1-2004, which originated as addendum “d” to 

ASHRAE Standard 90.1-2001.

a This Part was subsequently redesignated as Part A-1 for editorial reasons after Part C of Title III of EPCA 

was repealed by Pub. L. 109-58.

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Table 1.2.1: Current Federal Energy Conservation Standards for Single Package 

Vertical Air Conditioners and Heat Pumps

Equipment Class Cooling Capacity 

(Btu/h)*

Efficiency Level*

Single Package 

Vertical Air Conditioner

<65,000 Btu/h EER = 9.0

Single Package 

Vertical Air Conditioner

≥65,000 Btu/h and 

<135,000 Btu/h

EER = 8.9

Single Package 

Vertical Air Conditioner

≥135,000 Btu/h and 

<240,000 Btu/h

EER = 8.6

Single Package 

Vertical Heat Pump

<65,000 Btu/h EER = 9.0

COP = 3.0

Single Package 

Vertical Heat Pump

≥65,000 Btu/h and 

<135,000 Btu/h

EER = 8.9 

COP = 3.0

Single Package 

Vertical Heat Pump

≥135,000 Btu/h and 

<240,000 Btu/h

EER = 8.6

COP = 2.9

* Btu/h means British thermal units per hour. EER means energy efficiency ratio. COP 

means coefficient of performance. 

1.3 PROCESS FOR SETTING ENERGY CONSERVATION STANDARDS

EPCA requires that DOE must conduct a rulemaking to consider amended energy 

conservation standards for a variety of enumerated types of commercial heating, ventilating, and 

air-conditioning equipment (of which SPVACs and SPVHPs are a subset) each time ASHRAE 

Standard 90.1 is updated with respect to such equipment. (42 U.S.C. 6313(a)(6)(A)) Such 

review is to be conducted in accordance with the procedures established for ASHRAE equipment 

under 42 U.S.C. 6313(a)(6). According to 42 U.S.C. 6313(a)(6)(A), for each type of equipment, 

EPCA directs that if ASHRAE Standard 90.1 is amended, DOE must publish in the Federal

Register an analysis of the energy savings potential of amended energy efficiency standards 

within 180 days of the amendment of ASHRAE Standard 90.1. (42 U.S.C. 6313(a)(6)(A)(i)) 

EPCA further directs that DOE must adopt amended standards at the new efficiency level in 

ASHRAE Standard 90.1, unless clear and convincing evidence supports a determination that 

adoption of a more-stringent level would produce significant additional energy savings and be 

technologically feasible and economically justified. (42 U.S.C. 6313(a)(6)(A)(ii)) In addition, 

DOE notes that pursuant to the EISA 2007 amendments to EPCA, under 42 U.S.C. 

6313(a)(6)(C), the agency must periodically review its already-established energy conservation 

standards for ASHRAE equipment. In December 2012, this provision was further amended by 

the American Energy Manufacturing Technical Corrections Act (AEMTCA) to clarify that 

DOE’s periodic review of ASHRAE equipment must occur “[e]very six years.” (42 U.S.C. 

6313(a)(6)(C)(i)) 

 AEMTCA also modified EPCA to specify that any amendment to the design 

requirements with respect to the ASHRAE equipment, would trigger DOE review of the 

potential energy savings under U.S.C. 6313(a)(6)(A)(i). Additionally, AEMTCA amended 

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EPCA to require that if DOE proposes an amended standard for ASHRAE equipment at levels 

more stringent than those in ASHRAE Standard 90.1, DOE, in deciding whether a standard is 

economically justified, must determine, after receiving comments on the proposed standard, 

whether the benefits of the standard exceed its burdens by considering, to the maximum extent 

practicable, the following seven factors:

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

products subject to the standard; 

(2) The savings in operating costs throughout the estimated average life of the product in 

the type (or class) compared to any increase in the price, initial charges, or maintenance 

expenses of the products likely to result from the standard; 

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

standard; 

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

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 standard;

(6) The need for national energy conservation; and 

(7) Other factors the Secretary considers relevant.

(42 U.S.C. 6313(a)(6)(B)(ii)) 

EISA 2007 amended EPCA to provide an independent basis for a one-time review 

regarding SPVUs that is not tied to the conditions for initiating review specified by 42 U.S.C. 

6313(a)(6)(A) or 42 U.S.C. 6313(a)(6)(C) described previously. Specifically, pursuant to 42 

U.S.C. 6313(a)(10)(B), DOE must commence review of the most recently published version of 

ASHRAE Standard 90.1 with respect to SPVU standards in accordance with the procedures 

established under 42 U.S.C. 6313(a)(6) no later than 3 years after the enactment of EISA 2007. 

DOE notes that this provision was not tied to the trigger of ASHRAE publication of an updated 

version of Standard 90.1 or to a 6-year period from the issuance of the last final rule, which 

occurred on March 7, 2009 (74 FR 12058). DOE was simply obligated to commence its review 

by a specified date. 

Because ASHRAE did not update its efficiency levels for SPVACs and SPVHPs in 

ASHRAE Standard 90.1-2010, DOE began this rulemaking by analyzing amended standards 

consistent with the procedures defined under 42 U.S.C. 6313(a)(6)(C). Specifically, pursuant to 

42 U.S.C. 6313(a)(6)(C)(i)(II), DOE, must use the procedures established under subparagraph 

(B) when issuing a NOPR. The statutory provision at 42 U.S.C. 6313(a)(6)(B)(ii), recently 

amended by AEMTCA, states that in deciding whether a standard is economically justified, DOE 

must determine, after receiving comments on the proposed standard, whether the benefits of the 

standard exceed its burdens by considering, to the maximum extent practicable, the following 

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seven factors, as stated previously. 

However, before DOE could finalize this NOPR, ASHRAE acted on October 9, 2013 to 

adopt ASHRAE Standard 90.1-2013, and this revision did contain amended standard levels for 

SPVUs, thereby triggering DOE’s statutory obligation under 42 U.S.C. 6313(a)(6)(A) to 

promulgate an amended uniform national standard at those levels unless DOE determines that 

there is clear and convincing evidence supporting the adoption of more-stringent energy 

conservation standards than the ASHRAE levels. Consequently, DOE prepared an analysis of 

the energy savings potential of amended standards at the ASHRAE Standard 90.1 levels (as 

required by 42 U.S.C. 6313(a)(6)(A)(i)) and updated this NOPR and accompanying analyses to 

reflect appropriate statutory provision, timelines, and compliance dates.

 DOE has tentatively concluded that following this rulemaking process will provide 

“clear and convincing evidence” that for two equipment classes for which the proposed 

standards are more stringent than those set forth in ASHRAE Standard 90.1-2013 would result in 

significant additional conservation of energy and would be technologically feasible and 

economically justified, as mandated by 42 U.S.C. 6313(a)(6). For the other four equipment 

classes, DOE has tentatively concluded to adopt the levels set forth in ASHRAE Standard 90.1-

2013. 

 DOE conducted several analyses in preparation for publishing this NOPR and TSD for 

the current SPVU rulemaking. A list of the analyses and the corresponding chapter number is 

presented in the next section. A summary of each analysis conducted can be found in Chapter 2 

of this TSD. 

1.4 STRUCTURE OF THE DOCUMENT

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

of 17 chapters and numerous supporting appendices. 

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

standards program and how it applies to Single Package Vertical Air Conditioners and Single 

Package Vertical Heat Pumps, and outlines the structure of the document. 

Chapter 2 Analytical Framework: Describes the rulemaking process step by step 

and summarizes the major components of DOE’s analyses. 

Chapter 3 Market and Technology Assessment: Characterizes the Single Package 

Vertical Air Conditioners and Single Package Vertical Heat Pumps equipment market and 

describes 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 efficiency and increased manufacturer production cost/selling 

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price.

Chapter 6 Markups Analysis: Discusses the methods used for establishing 

markups for converting manufacturer prices to customer equipment prices.

Appendix 6A Detailed Data for Equipment Price Markups

Chapter 7 Energy Use Analysis: Discusses the process used for generating energy

use estimates of Single Package Vertical Air Conditioners and Single Package Vertical Heat 

Pumps for a variety of equipment classes, climate locations, and efficiency levels.

Appendix 7A Characteristics of Modular Classroom, Modular Office, and 

Telecommunication Shelter Models

Appendix 7B Typical Meteorological Year Assignments

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. 

Appendix 8A User Instructions for the Life-Cycle Cost Analysis Spreadsheet for 

SPVU Equipment 

Appendix 8B Detailed Life-Cycle Cost and Payback Period Analysis Results 

Appendix 8C Sensitivity of Life-Cycle Cost and Payback Period Analysis Results to 

Energy Prices

Appendix 8D Development of Base Case Efficiency Distributions

Chapter 9 Shipments Analysis: Discusses the methods used for projecting

shipments with and without higher efficiency standards. 

Chapter 10 National Impact Analysis: Discusses the methods used for projecting 

national energy savings and national economic impacts based on annual product shipments and 

estimates of future equipment efficiency distributions in the absence and presence of higher 

efficiency standards.

Appendix 10A Full-Fuel-Cycle Multipliers

Appendix 10B NIA Sensitivity Analysis for Alternative Product Price Trend Scenarios 

Chapter 11 Consumer Subgroup Analysis: Discusses the effects of standards on a 

subgroup of Single Package Vertical Air Conditioners and Single Package Vertical Heat Pumps 

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

standards for these customers.

Chapter 12 Manufacturer Impact Analysis: Discusses the effects of amended 

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standards on the finances and profitability of manufacturers.

Appendix 12A Government Regulatory Impact Model (GRIM) Overview 

Chapter 13 Emissions Impact Analysis: Discusses the effects of standards on airborne emissions, including the impact of emissions of six pollutants or greenhouse gases: sulfur 

dioxide (SO2), nitrogen oxides (NOx), carbon dioxide (CO2), mercury (Hg), methane (CH4), and 

nitrous oxide (N2O). 

Chapter 14 Monetization of Emission Reduction Benefits: Discusses the 

monetization of reductions in CO2 and NOX emissions.

Chapter 15 Utility Impact Analysis: Discusses the effects of standards on the 

installed generation capacity of electric utilities 

Chapter 16 Employment Impact Analysis: Discusses the effects of standards on 

National employment. 

Chapter 17 Regulatory Impact Analysis: Discusses the present regulatory actions as 

well as the impact of non-regulatory alternatives to setting energy efficiency standards.

Appendix 17A Regulatory Impact Analysis: Supporting Materials

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