### Department of Energy Washington, DC 20585

April 3, 2008

The Honorable Michael B. Mukasey Attorney General United States Department ofJustice Washington, D.C. 20530

Dear Mr. Attorney General:

Pursuant to the requirements for antitrust review under section 325(0)(2)(B)(i)(V) ofthe Energy Policy and Conservation Act, as amended (EPCA) (42 U.S.C. 6295(o)(2)(B)(i)(V) and 42 U.S.C. 63I6(a), I have enclosed for your consideration a copy ofthe notice ofproposedrulemaking (NOPR) in whichthe U.S. Department ofEnergy (DOE) is proposing amended energy conservation standards for packaged terminal air conditioners and packagedterminal heat pumps (PTACs and PTHPs). I have also enclosed a copy ofthe Technical Support Document (TSD), including the draft Regulatory Impact Analysis and Environmental Analysis, which summarizes DOE's technical analyses performed in support ofthe NOPR for PTACs and PTHPs. All documents are provided in CD-ROM format.

DOE has issued this NOPRunder Part A-I ofTitle III ofEPCA, which addresses the energy efficiency ofcertain types ofcommercial and industrial equipment. (42 U.S.C. 6311-6317) The Energy PolicyAct of 1992, Pub. L, 102-486, amended EPCA and established Federal energy conservation standards that generally corresponded to the levels in the American Society ofHeating, Refrigerating, and Air-Conditioning Engineers, Inc. and the Illuminating Engineering Society ofNorth America (ASHRAE/IESNA) Standard 90.1, as in effect on October 24, 1992 (ASHRAE/IESNA Standard 90.1-1989), for each type ofcovered equipment listed in section 342(a) ofEPCA, including PTACs and PTHPs. (42 U.S.C. 63 13(a)) For each type ofequipment, EPCA directed that if ASHRAE/IESNA Standard 90.1 is amended, DOE must adopt an amended standard at the new level in ASHRAE/IESNA Standard 90.1, unless clear and convincing evidence supports a determination that adoption ofa more stringent level as a national standard would produce significant additional energy savings and be technologically feasible and economicallyjustified. (42 U.S.C. 63 13(a)(6)(A)(ii)(II))

On October 29, 1999, ASHRAE's board ofdirectors approved ASHRAE/IESNA Standard 90.1-1999, which addressed efficiency standard levels for 34 categories ofcommercial heating, ventilating and air-conditioning (HVAC) and water heating equipment covered byEPCA, including PTACs and PTHPs. More recently, ASHRAE's board ofdirectors approved ASHRAE/IESNA Standard 

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Printed with soy ink on recycled paper90.1-2007 on January 10, 2008, which contained the same amended efficiency levels for PTACs and PTHPs as ASHRAE/IESNA Standard 90.1-1999. DOE published a final rule for five categories ofASHRAE equipment on March 7, 2007. 72 FR 10038, 10045. In that final rule, DOE announced that for one category ofequipment, namely packaged tenninal air-conditioners and heat pumps (the subject ofthis proceeding), DOE would conduct a separate rulemaking, pursuant to 42 U.S.C. 6313 (a)(6)(A)(ii)(II), to considerwhether energy conservation standards at higher levels are warranted. It should be noted that the ASHRAE Standard 90.1-1999 efficiency levels are more stringent than the current statutory standards for this equipment.

DOE considers any lessening ofcompetition that is likely to result from standards. The Attorney General determines inwriting the impact, ifany, ofany lessening ofcompetition likely to result from a proposed standard. (42 U.S.C. 6295(o)(2)(B)(i)(V); 42 U.S.C. 6316(a» The Attorney General shall make such

·determination, in writing, and transmit ittogether with an analysis ofthenature

and extent ofsuch impact. (42 U.S.C. 6295(o)(2)(B)(ii); 42 U.S.C. 6316(a» DOE will publish the detennination and accompanying analysis inthe Federal Register with the final rule. To assist the Attorney General inmaking such a detennination, DOE has provided the Department ofJustice with copies ofthis notice and the TSD for review.

In addition, this rulemaking is subject to a Consent Decree filed with the U.S.

· District Court for the Southern District ofNew York to settle the consolidated

cases ofState ofNew York, et ai. v. Bodman, and Natural Resources Defense Council, Inc., et. aI., (Civ. 7807 (JES) and Civ. 7808 (JES) (S.D.N.Y consolidated December 6,2005», under which DOE is required to publish a final rule for amended energy conservation standards for PTACs and PTHPsby September 30, 2008.

Werequest that you complete yourreview ofthis NOPRnot later than 60 days

·from receipt ofthis letter. Thank you for your attention to this matter. If members ofyour staffhave any questions, theymay contact Francine Pinto inmy office. Hertelephone number is 202-586-7432. Sincerely,

Warren Belmar Deputy General Counsel for Energy Policy

Enclosures (2)

cc: Angela Hughes