December 12, 2013 Dr. DavidDanielson Assistant Secretary EnergyEfficiency and Renewable Energy U.S. DepartmentofEnergy 1000 IndependenceAve., SW Washington, DC 20585

RE: Applicationfor Interim Waiverpursuantto 10 C.F.R. §431.401 for basic Summitmodels:

• KegBeerCoolers (Models SBC590, SBC5900S, and SBC635M) • AssistedLivingRefrigerator-freezers (ModelsALBF44, ALBF68) • Hotel Refrigerators (Models HTL2 and HTL3) Felix Storch, Inc. (FSI) throughthis Applicationfor Interim Waiver will demonstrate likely success ofthe petition for waiver and address what economic hardship and/or competitive disadvantage is likelyto result, absent a favorable determination onthe Applicationfor InterimWaiver. This applicationfor interimwaiver applies to the following models: • KegBeerCoolers (Models SBC590, SBC5900S, and SBC635M) • AssistedLivingRefrigerator-freezers (Models ALBF44, ALBF68) • Hotel Refrigerators (Models HTL2 andHTL3) Jointly, these models are referred to throughout as 'refrigerators'. Further information to support this application is containedin the Petition for Waiver filed simultaneously to this application. Confidential Business information: Felix Storch, Inc. is not asking for anypartofthis interim waiverrequestto beredacted. Likelihood ofSuccess on theMerits FSI markets a wide range ofrefrigeration equipment for sale into specialty and niche markets. These refrigerators need to comply with energy efficiency standards issued and enforced by the Departmentof nergy (DOE). DOErelies on a singletestpr cedure for all residential refrigerators and freezers. While the test procedure will change slightly on Sept. 15, 2014, the basic method of conducting the test will remain unchanged. • I can conclusively demonstrate that for the specific products in this waiver petition, both test procedures are "so unrepresentative of its true energy consumption characteristics

. . . as to provide materially inaccurate comparative data." See 10 CFR §430, subpartB, appendixAl, and 10 CFR §430, subpartB, appendix A. These test procedures will result in reported energy usage that is substantially higher than actual energy consumption and fail to represent real world operating conditions. As such, we believe thatit is highly likely that we will succeed on the merits ofthe waiver petition. The products listed above meetDOE'sintent in creatingthe waiverpetitionprocess and the criteria for establishingtest procedures that enable DOE to evaluate products in a manner representative of true energy consumption and provide for accurate comparative data. FSI's approach to developing more representative test procedures is supported throughout the studies cited in the waiver petition and FSI in-situtesting. Need for an interim waiver The residential appliance business is a highly competitive business. Companies that specialize in niche products with low annual sales, cumulative and for any given product, inherently have higher unit costs for anumber ofreasons, including:

• The costofmanufacturingthe productis high, andthere is less efficiency ofscale; • The cost ofmarketing and distributing nicheproducts is higherthan massmarketproducts; • Small companieshave to divide fixed overheadbyrelatively lowunit sales. This is exacerbated by the costs to register and comply with energy efficiency standards. When divided over only dozens or hundreds ofunits sold annually, testing costs can add 5% to 25% or more to a product's sellingprice, and could be the determinative factor between profit and loss. As a consequence, it is vitally important that energy testing be done in a manner that is representative ofactual energy consumption and does not unduly drive up the costs to comply with standards that provide inaccurate testmeasurements. All ofthe products in this interim waiver application are compactrefrigeration equipment. Compact refrigerators are primarily designed for situations where there are space limitations (either height or width or depth or a combination). As such, compact appliances do not have the options to decrease energy consumption by increasing the dimensions and adding additional insulating material. Compact appliances also have far more design limitations onthe size and placement ofcomponents such as evaporators, condensers, compressors and fans because there are much smaller areas to work in. Failure to obtain an interim waiver in a timely manner will create severe economic hardship to FSI. Products in this waiver request will all serve markets that have fewer choices than mainstream markets, which all offer increased consumer choice. None of the subject products are the most common 'dormitory' or ofiice type compact l·efrigerators sold through mass market retailers. 1 Some ofthe products in th.is waiver petition will serve markets where competitive products either use technology that uses much more energy (yet are not considered "covered" products by DOE), or force customers to use larger refrigerators than needed, which also may use more energy than needed. FSI is developing new products that will have many benefits and offer consumers more energy efficient choices, which will comply with DOE standard in accordance with appropriate test procedures. Yet, these products, when measured by the current and proposed DOE test procedures, will not reflect their true energy consumption. There are valid reasons why these specialty refrigerators will be used in a completely different mannerthanthe "typical"residential refrigerator

. When energy consumption is measured in a representative manner, all are energy efficient and will comply with applicable DOE standards. All will contribute to the value added manufacturing done

1 Itis importantto note thatthe overwhelmingmajority ofcompact appliances soldtoday fall into the categories of dormitory type or office type refrigerator-freezers. Dorm and office refrigerators are not the subject ofthis petition

.in our SouthBronx facility. And all are intendedto meetmarket demand invery small markets, and offer consumers a more suitable alternative to general purpose refrigerators. FSI has demonstrated that a single change to the testprocedure will produce representative data, and allow FSI to market niche productsthat are the most suitable for some consumer applications. The new DOE residential standards that take effect Sept. 15, 2014 will force significant industry wide changes. Smaller companies such as FSI will be the most adversely impacted as many products that cannot meet the new standards will be withdrawn from the market. With many FSI products only selling a few hundred units annually or even fewer, the R&D and design changes needed to reduce energy consumption are cost prohibitive. Without a stream of new products to hold revenue steady, companies such as FSI will suffer severe revenue loss, employment loss and are threatened. The failure to issue this interim waiver will not only deprive FSI ofthe revenue and gross profit from this group ofproducts, but it will weaken our competitive position in the marketplace. In the waiver application, FSI identifies about a dozen major players in the appliance marketplace we compete with, all ofwhom have over a billion dollars in annual revenue. All but two are foreign companies with large manufacturing operations. All, in varying degrees, compete with FSI. On commonproducts, FSI is at ahuge competitivedisadvantage given all their economies ofscale. FSI competes successfully because ourniche products allowus to be more valuable to ourresellers, and a certain amount of "common" products are sold alongside. Absent the niche products, our commodityproductswill suffer greatly as well. As a consequence ofthese circumstances, FSI would suffer serious economic hardship, and would be at a competitive disadvantageunless aninterimwaiveris grantedfor the products in this petition. Conclusion FSI initiated a petition for waiver for the list ofspecialty refrigerators that are designed to provide consumer choice in niche markets. These products differ substantially in their use from typical household or dormitory type refrigerators. The current test procedures measure energy use in a manner that is so unrepresentative ofthese products' true energy consumption that they provide materially inaccurate comparative data. FSI respectfully requests that you grant an interim waiver ofthe test procedures of 10 CFR §430, subpart B, appendix Al and the proposed 10 CFR §430, subpart B, appendix A to the procedure outlined in our waiver request, so that it may avoid severe economic hardship while DOEprocesses thepetition. 

# Resp /..2;%tted,

Paul Storch SummitAppliance Div. Felix Storch, Inc. 770 GarrisonAve. Bronx, NY 10474 USA PH. 718-893-3900 FAX: 718-842-3093 Email: paul@summitappliance.com