BEFORE THE

U.S. DEPARTMENT OF ENERGY

OFFICE OF HEARINGS AND APPEALS

CASE NO. VEE-0054

COMMENTS OF MAYTAG CORPORATION

REGARDING APPLICATION FOR EXCEPTION BY AMANA APPLIANCES

FROM PROVISIONS OF 10 C.F.R. PART 430 - ENERGY

CONSERVATION PROGRAM FOR CONSUMER PRODUCTS; ENERGY

CONSERVATION STANDARDS FOR REFRIGERATORS, REFRIGERATORFREEZERS AND FREEZERS

Maytag Corporation

403 West Fourth Street North

Newton, Iowa 50208 .

March 15, 1999

 EE-RM-93-801 COMMENT 342 , 

...," 

BEFORE THE 

u.s. DEPARTMENT OF ENERGY ~-" .- . 

'. -. .:::: 

- .... -

OFFICE OF HEARINGS AND APPEALS 

CASE NO. VEE-00S4 - --:." :)i " ,.-

i··· .. .. "'? ~ ',,:" 

COMMENTS OF MA YTAG CORPORATION 

REGARDING APPLICA nON FOR EXCEPTION BY AMANA APPLIANCES 

FROM PROVISIONS OF 10 C.F.R. PART 430 - ENERGY 

CONSERVATION PROGRAM FOR CONSUMER PRODUCTS; ENERGY 

CONSERVA nON STANDARDS FOR REFRIGERATORS, REFRIGERA TORFREEZERS AND FREEZERS 

March 15, 1999 

May tag Corporation 

403 West Fourth Street North 

Newton, Iowa 50208 
BEFORE THE

U.S. DEPARTMENT OF ENERGY

OFFICE OF HEARINGS AND APPEALS

Energy Conservation Program for

Consumer Products: Energy Conservation

Standards for Refrigerators, RefrigeratorFreezers and Freezers

CASE NO. VEE-0054

COMMENTS OF MAYTAG CORPORATION

REGARDING APPLICATION FOR EXCEPTION FILED BY AMANA APPLIANCES

Maytag Corporation (Maytag) submits these comments regarding Amana Appliances'

Application for Exception relief from the provisions of 10 C.F.R. Part 43.0, Energy Conservation

Program for Consumer Products: Energy Conservation Standards for Refrigerators, RefrigeratorFreezers and Freezers.

Maytag Corporation is a leading manufacturer of home and commercial appliances. The

corporation's home appliance brands include Maytag, Jenn-Air and Magic Chefmajor appliances,

and Hoover floor care products. Maytag manufactures a complete line of refrigerator -freezers,

including top and side freezer models, at its facilities in Galesburg, Illinois.

2

 EE-RM-93-801 COMMENT 342

BEFORE THE 

u.s. DEPARTMENT OF ENERGY 

OFFICE OF HEARINGS AND APPEALS 

Energy Conservation Program for 

Consumer Products: Energy Conservation 

Standards for Refrigerators, RefrigeratorFreezers and Freezers 

CASE NO. VEE-0054 

COMMENTS OF MAYTAG CORPORATION 

REGARDING APPLICATION FOR EXCEPTION FILED BY AMANA APPLIANCES 

Maytag Corporation (Maytag) submits these comments regarding Amana Appliances' 

Application for Exception relief from the provisions of 10 C.F.R Part 430, Energy Conservation 

Program for Consumer Products: Energy Conservation Standards for Refrigerators, RefrigeratorFreezers and Freezers. 

Maytag Corporation is a leading manufacturer of home and commercial appliances. The 

corporation's home appliance brands include Maytag, Jenn-Air and Magic Chefmajor appliances, 

and Hoover floor care products. Maytag manufactures a complete line of refrigerator-freezers, 

including top and side freezer models, at its facilities in Galesburg, Illinois. 

2 
Maytag believes that Amana's application for exception relief from the refrigerator energy

standards that will be implemented on July 1, 2001 is premature and should not be approved.

Maytag is faced with the same regulatory concerns as Amana -- the Department's new

refrigerator/freezer standards, as well as the requirement to replace the current foam blowing

agent, HCFC-141b, with an acceptable alternative by January 1, 2003. Maytag asserts, however,

that exception relief should not be granted to Amana for the following reasons:

• Exception relief would be a disincentive for the introduction of HFC-245fa as

a substitute blowing agent.

• Exception relief would be a disincentive for the development of alternative

blowing agents.

• Exception relief would provide Amana with an unreasonable and significant

competitive advantage.

• Exception relief would penalize Maytag and other manufacturers who have

already made significant capital investments in anticipation of the new mandated

refrigerator standards.

• Exception relief would not address the probability that refrigerators manufactured

in Mexico containing HCFC-141b may be exported to the U.S. after the U.S.

phaseout is implemented.

Further, Maytag believes that exception relief should only be considered when it can be

demonstrated that: a) all potential alternative blowing agents have been thoroughly tested and an

acceptable substitute is not available; and b) no single manufacturer would gain a competitive

advantage in the marketplace as a result of the exception.

Maytag and other refrigerator manufacturers are currently engaged in negotiations with

Allied Signal for the supply of HFC-245fa on or before 1/1/03. Maytag is also investigating the

use of other blowing agents which maybe suitable alternatives to HCFC-141b. HCFC-124 is

commercially available and shows promise as an interim substitute for HCFC-141b. Other

3

 EE-RM-93-801 COMMENT 342

Maytag believes that Amana's application for exception relief from the refrigerator energy 

standards that will be implemented on July 1, 2001 is premature and should not be approved. 

Maytag is faced with the same regulatory concerns as Amana -- the Department's new 

refrigerator/freezer standards, as well as the requirement to replace the current foam blowing 

agent, HCFC-141b, with an acceptable alternative by January 1,2003. Maytag asserts, however, 

that exception relief should not be granted to Amana for the following reasons: 

• Exception relief would be a disincentive for the introduction ofHFC-245fa as 

a substitute blowing agent. 

• Exception relief would be a disincentive for the development of alternative 

blowing agents. 

• Exception relief would provide Amana with an unreasonable and significant 

competitive advantage. 

• Exception relief would penalize Maytag and other manufacturers who have 

already made significant capital investments in anticipation of the new mandated 

refrigerator standards. . 

• Exception relief would not address the probability that refrigerators manufactured 

in Mexico containing HCFC-141b may be exported to the U.S. after the U.S. 

phaseout is implemented. 

Further, Maytag believes that exception relief should only be considered when it can be 

demonstrated that: a) all potential alternative blowing agents have been thoroughly tested and an 

acceptable substitute is not available~ and b) no single manufacturer would gain a competitive 

advantage in the marketplace as a result of the exception. 

Maytag and other refrigerator manufacturers are currently engaged in negotiations with 

Allied Signal for the supply ofHFC-245fa on or before 1/1/03. Maytag is also investigating the 

use of other blowing agents which may be suitable alternatives to HCFC-141 b. HCFC-124 is 

commercially available and shows promise as an interim substitute for HCFC-141 b. Other 

3 
blowing agents and blends are also being investigated. These ongoing activities are crucial to

rapid development of technologies which achieve the optimum balance between energy use, ozone

depletion, and global warming concerns. Granting of exception relief to Amana at this time

would jeopardize the successful conclusion of these negotiations and investigations.

A margin of 10% relief from the new energy standards would provide Amana with a very

significant competitive advantage. Refrigerator/freezer manufacturers will be employing many of

the technologies that were reviewed by the Department prior to the issuance of the new energy

standards. Each incremental reduction in energy usage accelerates the costs of the technologies

employed to achieve that target. If the requested relief is granted, Amana will be able -to avoid the

most costly of these technologies. This would seriously, and unfairly, disadvantage other

manufacturers by providing Amana with a significant cost advantage. This product cost

differential would be harmful to Maytag and other refrigerator manufacturers who compete in one

of the most highly competitive markets in the U.S.

Over the past five years, Maytag has invested extraordinary capital and human resources

in retooling its entire line of refrigerators in anticipation of complying with the new federal energy

standards. Today, Maytag offers a full line of refrigerators many of which qualify for the

Department's "Energy Star" label which illustrate its commitment to innovative, energy efficient

appliances. Granting an exception for relief to any single company would jeopardize these

investments by permitting a competitor to avoid similar investments, thereby enjoying a lower

overall cost structure.

Maytag shares Amana's concern that other manufacturers may produce refrigerators

containing HCFC-141b at locations outside the United States, including Mexico, and export those

products to the U. S. beyond the January 1, 2003 phaseout date for HCFC's. While this issue

4

 EE-RM-93-801 COMMENT 342

blowing agents and blends are also being investigated. These ongoing activities are crucial to 

rapid development of technologies which achieve the optimum balance between energy use, ozone 

depletion., and global warming concerns. Granting of exception relief to Amana at this time 

would jeopardize the successful conclusion of these negotiations and investigations. 

A margin of 10% relief from the new energy standards would provide Amana with a very 

significant competitive advantage. Refrigerator/freezer manufacturers "WIll be employing many of 

the technologies that were reviewed by the Department prior to the issuance of the new energy 

standards. Each incremental reduction in energy usage accelerates the costs of the technologies 

employed to achieve that target. If the requested reliefis granted, Amana will be able-to avoid the 

most costly of these technologies. This would seriously, and unfairly, disadvantage other 

manufacturers by providing Amana with a significant cost advantage. This product cost 

differential would be hannful to Maytag and other refrigerator manufacturers who compete in one 

of the most highly competitive markets in the U.S. 

Over the past five years, Maytag has invested extraordinary capital and human resources 

in retooling its entire line of refrigerators in anticipation of complying with the new federal energy 

standards. Today, Maytag offers a full line of refrigerators many of which qualify for the 

Department's "Energy Star" label which illustrate its commitment to innovative, energy "efficient 

appliances. Granting an exception for relief to any single company would jeopardize these 

investments by permitting a competitor to avoid similar investments, thereby enjoying a lower 

overall cost structure. 

Maytag shares Amana's concern that other manufacturers may produce refrigerators 

containing HCFC-141b at locations outside the United States, including Mexico, and export those 

products to the U.S. beyond the January 1, 2003 phaseout date for HCFC's. While this issue 

4 
must be addressed, granting exception relief to Amana at this time does not address or resolve this

potential problem.

In summary, Maytag believes that Amana's application for exception relief is premature

and should not be approved. However, should the Department determine that such relief can be

justified, it should then be extended to all manufacturers rather than to an individual company

which would, by virtue of the exception, immediately achieve a significant competitive advantage.

5

 EE-RM-93-801 COMMENT 342

· must'be addressed, granting exception relief to Amana at this time does not address or resolve this 

potential problem, 

In summary, Maytag believes that Amana's application for exception relief is premature 

and should not be approved. However, should the Department determine that such relief can be 

justified, it should then be extended to all manufacturers rather than to an individual company 

which would, by virtue of the exception, immediately achieve a significant competitive advantage. 

5