CHAPTER 1. INTRODUCTION

TABLE OF CONTENTS

**1.1 PURPOSE**  **OF THE**  **DOCUMENT**

**................................................................................. 1­1** 

**1.2 OVERVIEW OF COMMERCIAL EQUIPMENT STANDARDS................................. 1­1** 

**1.3 OVERVIEW**  **OF PACKAGED**  **TERMINAL AIR**  **CONDITIONER AND** 

**PACKAGED TERMINAL**  **HEAT PUMP**  **STANDARDS.............................................. 1­2** 

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

**1­i 1­ii** CHAPTER 1. INTRODUCTION

1.1 PURPOSE OF THE DOCUMENT

**This technical**  **support document**  **(TSD) is**  **a stand­alone**  **report that**  **documents the** 

**technical analyses**  **and results**  **in support**  **of the**  **information presented**  **in the**  **Notice of**  **Proposed**

**Rulemaking (NOPR)**  **for establishing**  **energy conservation**  **standards for**  **packaged terminal**  **air**

**conditioners (PTACs)**  **and packaged**  **terminal heat**  **pumps (PTHPs).** 

1.2 OVERVIEW OF COMMERCIAL EQUIPMENT STANDARDS

**Part B**  **of Title**  **III of**  **the Energy**  **Policy and**  **Conservation Act**  **(EPCA) of**  **1975, Public** 

**Law 94­163,**  **as amended**  **by the**  **National Energy**  **Conservation Policy**  **Act of**  **1978 (NECPA),** 

**Public Law**  **95­619; the**  **National Appliance**  **Energy Conservation**  **Act of**  **1987 (NAECA),**  **Public**

**Law 100­12;**  **the National**  **Appliance Energy**  **Conservation Amendments**  **of 1988**  **(NAECA**

**1988), Public**  **Law 100­357;**  **and the**  **Energy Policy**  **Act of**  **1992 (EPACT**  **1992), Public**  **Law 102­** 

**486 (the**  **Act or**  **EPCA), established**  **the Energy**  **Conservation Program**  **for Consumer**  **Products**

**other than**  **Automobiles. (42**  **U.S.C. 6291­6309)**  **Part 3**  **of Title**  **IV of**  **NECPA amended**  **EPCA**

**to add**  **Part C**  **of Title**  **III, which**  **includes PTACs**  **and PTHPs.**  **(42 U.S.C.**  **6311(1)(D)) EPACT** 

**1992 also**  **amended EPCA**  **with respect**  **to air­conditioning**  **equipment, providing**  **definitions in** 

**section 122(a),**  **test procedures**  **in section**  **122(b), labeling**  **provisions in**  **section 122(c),**  **energy**

**efficiency standards**  **in section**  **122(d), and**  **enforcement requirements**  **in section**  **122(e). (42** 

**U.S.C. 6311,**  **6313­15) These**  **amendments expanded**  **the Department**  **of Energy**  **(DOE)’s energy** 

**conservation program**  **to include**  **PTACs and**  **PTHPs, the**  **focus of**  **this document.** 

**EPCA, as**  **amended by**  **EPACT 1992,**  **established Federal**  **energy conservation**  **standards**

**that correspond**  **to the**  **levels in**  **American Society**  **of Heating,**  **Refrigerating and**  **Air­Conditioning**

**Engineers, Inc.**  **(ASHRAE)/Illuminating Engineering**  **Society of**  **North America**  **(IESNA)**

**Standard 90.1**  **in effect**  **on October**  **24, 1992.**  **The statute**  **further provides**  **that if**  **the efficiency** 

**levels in**  **ASHRAE/IESNA Standard**  **90.1“** Energy Standard for Buildings Except Low­Rise

Residential Buildings” **(ASHRAE/IESNA Standard**  **90.1­1992) are**  **amended after**  **that date**  **for**

**any of**  **the covered**  **products, including**  **PTACs and**  **PTHPs, the**  **Secretary of**  **Energy (Secretary)** 

**must establish**  **an amended**  **uniform national**  **standard for**  **such equipment**  **at the**  **new minimum** 

**level for**  **each effective**  **date specified**  **in ASHRAE/IESNA**  **Standard 90.1,**  **unless the**  **Secretary**

**determines, through**  **a rulemaking**  **supported by**  **clear and**  **convincing evidence,**  **that a**  **more**

**stringent standard**  **would result**  **in significant**  **additional conservation**  **of energy**  **and is** 

**technologically feasible**  **and economically**  **justified. (42**  **U.S.C. 6313(a)(6)(A))** 

**Under EPCA,**  **when DOE**  **studies new**  **or amended**  **standards, it**  **must consider**  **to the** 

**greatest extent**  **practicable, the**  **following seven**  **factors:**

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

**products subject**  **to the**  **standard;**

**1­1 (2)**  **the savings**  **in operating**  **costs throughout**  **the estimated**  **average life**  **of the**  **products in** 

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

**expense for**  **the products**  **that are**  **likely to**  **result from**  **the imposition**  **of the**  **standard;**

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

**imposition of**  **the standard;** 

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

**imposition of**  **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**  **imposition of**  **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)(i))** 

**Other statutory**  **requirements are**  **set forth**  **in 42**  **U.S.C. 6313(a)(6)(B)(ii)**  **and (C).** 

**DOE considers**  **stakeholder participation**  **to be**  **a very**  **important part**  **of the**  **process for** 

**setting energy**  **conservation standards.**  **DOE actively**  **encourages the**  **participation and**  **interaction**

**of all**  **stakeholders during**  **the comment**  **period in**  **each stage**  **of the**  **rulemaking. During**  **comment**

**periods, interactions**  **among stakeholders**  **provide a**  **balanced discussion**  **of the**  **information that**  **is**

**required for**  **the standards**  **rulemaking.**

**In conducting**  **test procedure**  **and energy**  **conservation standards**  **rulemakings, DOE** 

**involves stakeholders**  **through formal**  **public notifications**  **(i.e.,** Federal Register **notices). For** 

**this PTAC**  **and PTHP**  **energy conservation**  **standards rulemaking,**  **DOE will**  **employ the** 

**procedures set**  **forth in**  **DOE’s Process**  **Rule (Procedures**  **for Consideration**  **of New**  **or Revised** 

**Energy Conservation**  **Standards for**  **Consumer Products,**  **61 FR**  **36974, July**  **15, 1996,**  **10 CFR** 

**Part 430,**  **Subpart C,**  **Appendix A)**  **to the**  **extent they**  **are appropriate**  **for developing**  **energy**

**conservation standards**  **for the**  **PTAC and**  **PTHP equipment**  **covered under**  **this rulemaking.** 

**Before DOE**  **determines whether**  **to adopt**  **a proposed**  **energy conservation**  **standard, it** 

**must first**  **solicit comments**  **on the**  **proposed standard.**  **(42 U.S.C.**  **6313(a)(6)(B)(i)) Any**  **new or** 

**amended standard**  **must be**  **designed to**  **achieve significant**  **additional conservation**  **of energy**  **and**

**be technologically**  **feasible and**  **economically justified.**  **(42 U.S.C.**  **6313(a)(6)(A)) To**  **determine**

**whether economic**  **justification exists,**  **DOE must**  **review comments**  **on the**  **proposal and** 

**determine that**  **the benefits**  **of the**  **proposed standard**  **exceed its**  **burdens to**  **the greatest**  **extent**

**practicable, weighing**  **the seven**  **factors listed**  **above.**

1.3 OVERVIEW OF PACKAGED TERMINAL AIR CONDITIONER AND

PACKAGED TERMINAL HEAT PUMP STANDARDS

**On October**  **29, 1999,**  **ASHRAE’s board**  **of directors**  **approved ASHRAE/IESNA** 

**Standard 90.1­1999**  **“** Energy Standard for Buildings Except Low­Rise Residential Buildings”

**(ASHRAE/IESNA Standard**  **90.1­1999)**

**, which**  **addressed efficiency**  **levels for**  **34 categories**  **of**

**1­2 commercial**  **heating, ventilating,**  **and air­conditioning**  **(HVAC) and**  **water heating**  **equipment**

**covered by**  **EPCA. The**  **new ASHRAE/IESNA**  **Standard 90.1­1999**  **revised the**  **efficiency levels** 

**in the**  **existing ASHRAE/IESNA**  **Standard 90.1­1989**  **for certain**  **commercial equipment** 

**including PTACs**  **and PTHPs.**  **For the**  **remaining equipment,**  **ASHRAE left**  **the preexisting**  **levels**

**in place,**  **after considering**  **revision of**  **the levels**  **for some**  **equipment and**  **deferring consideration** 

**of others.** 

**Following the**  **publication of**  **ASHRAE/IESNA Standard**  **90.1­1999, DOE**  **performed a** 

**screening analysis**  **that covered**  **24 of**  **the categories**  **of equipment**  **to help**  **decide what**  **action it** 

**would take**  **with respect**  **to the**  **new efficiency**  **levels. For**  **each equipment**  **type of**  **equipment, the** 

**screening analysis**  **examined a**  **range of**  **efficiency levels**  **that included**  **the levels**  **specified in** 

**EPCA and**  **ASHRAE/IESNA Standard**  **90.1­1999, as**  **well as**  **levels associated**  **with the**  **lowest**

**life­cycle cost.**  Screening Analysis for EPACT­Covered Commercial HVAC and Water­Heating

Equipment **(screening analysis)**  **summarizes the**  **analysis and**  **estimates the**  **annual national** 

**energy consumption**  **and the**  **potential for**  **energy savings**  **that would**  **result if**  **EPACT­covered**

**products were**  **to meet**  **these efficiency**  **levels. a**  **The analysis**  **also estimates**  **additional energy** 

**savings potential**  **for the**  **EPACT­covered products**  **if they**  **were to**  **exceed the**  **efficiency levels** 

**prescribed in**  **ASHRAE/IESNA Standard**  **90.1­1999. The**  **baselines for**  **the comparison**  **were the** 

**corresponding levels**  **specified in**  **ASHRAE/IESNA Standard**  **90.1­1999 and**  **EPCA. On**  **January**

**12, 2001,**  **DOE published**  **a final**  **rule concluding**  **that the**  **screening analysis**  **indicated at**  **least a** 

**reasonable possibility**  **of finding**  **“clear and**  **convincing evidence”**  **that more**  **stringent standards** 

**“would be**  **technologically feasible**  **and economically**  **justified and**  **would result**  **in significant** 

**additional conservation**  **of energy”**  **for PTACs**  **and PTHPs.**  **66 FR**  **3349. According**  **to EPCA,** 

**these are**  **the criteria**  **for the**  **adoption of**  **standards more**  **stringent than**  **those in**  **ASHRAE/IESNA**

**Standard 90.1.**  **(42 U.S.C.**  **6313(a)(6)(A))**

**Lastly on**  **March 13,**  **2006, DOE**  **issued a**  **Notice of**  **Availability (NOA)**  **announcing the** 

**availability of**  **a technical**  **support document**  **(TSD) DOE**  **used in**  **assessing whether**  **to adopt,**  **as**

**uniform national**  **standards, energy**  **conservation standards**  **contained in**  **amendments to**  **the**

**ASHRAE/IESNA Standard**  **90.1­1999 for**  **certain types**  **of commercial**  **equipment including** 

**PTACs and**  **PTHPs. 71**  **FR 12634.**  **DOE revised**  **its energy**  **savings analysis**  **used in**  **the**

**screening analysis**  **and summarized**  **the assumptions**  **and results**  **in this**  **TSD. DOE**  **also stated** 

**that even**  **though the**  **potential energy**  **savings in**  **the revised**  **analysis has**  **been reduced**  **for**

**seeking a**  **more stringent**  **standard compared**  **to the**  **efficiency levels**  **specified in** 

**ASHRAE/IESNA 90.1­1999,**  **DOE believes**  **there is**  **a possibility**  **of clear**  **and convincing** 

**evidence, which**  **would warrant**  **further evaluation**  **of more**  **stringent standard**  **levels for**  **PTACs**

**and PTHPs.**  **Therefore, DOE**  **stated in**  **this notice**  **that it**  **was inclined**  **to seek**  **a more**  **stringent**

**standard level**  **than the**  **efficiency levels**  **in ASHRAE/IESNA**  **Standard 90.1­1999**  **for PTACs**  **and**

**PTHPs through**  **a separate**  **rulemaking process.**  **71 FR**  **12639.**

**DOE conducted**  **several analyses**  **in preparation**  **for publishing**  **this notice**  **of proposed** 

**rulemaking (NOPR)**  **and TSD**  **for the**  **current PTAC**  **and PTHP**  **rulemaking. A**  **list of**  **the**

**a On**  **April 2000,**  **the DOE**  **published the**  **Screening Analysis**  **for EPACT­Covered**  **Commercial HVAC**  **and Water** 

**Heating Equipment**  **which covered**  **PTAC and**  **PTHP products.** 

**1­3 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 NOPR**  **TSD outlines**  **the analytical**  **approaches used**  **in this**  **rulemaking. The**  **TSD**

**consists of**  **15 chapters,**  **a report**  **for regulatory**  **impact analysis,**  **and appendices.** 

**Chapter 1**  **Introduction: provides**  **an overview**  **of the**  **appliance standards**  **program**

**and how**  **it applies**  **to the**  **PTAC and**  **PTHP rulemaking,**  **and outlines**  **the**

**structure of**  **the document.** 

**Chapter 2**  **Analytical Plan:**  **describes the**  **rulemaking process**  **step by**  **step.**

**Chapter 3**  **Market and**  **Technology Assessment:**  **characterizes the**  **PTAC and**  **PTHP**

**market and**  **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 manufacturer**  **price and**  **increased**

**efficiency.**

**Chapter 6**  **Markups for**  **Equipment Price**  **Determination: discusses**  **the methods**  **used**

**for establishing**  **markups for**  **converting manufacturer**  **prices to**  **customer**

**equipment prices.** 

**Chapter 7**  **Energy Use**  **Characterization: discusses**  **the process**  **used for**  **generating**

**energy use**  **estimates of**  **PTACs and**  **PTHPs for**  **a variety**  **of equipment** 

**classes, climate**  **locations, and**  **standard levels.** 

**Chapter 8**  **Life­Cycle 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.** 

**Chapter 9**  **Trial Standard**  **Levels: discusses**  **the trial**  **standard levels**  **and the**  **methods**

**used to**  **derive the**  **energy­efficiency equations**  **corresponding to**  **the**

**proposed energy**  **conservation standards.** 

**Chapter 10**  **Shipments Analysis:**  **discusses the**  **methods used**  **for forecasting** 

**shipments with**  **and without**  **higher efficiency**  **standards, including**  **how**

**equipment purchase**  **decisions are**  **economically influenced**  **and modeled** 

**with econometric**  **equations.**

**1­4 Chapter**  **11 National**  **Impact Analysis:**  **discusses the**  **methods used**  **for forecasting** 

**national energy**  **consumption and**  **national economic**  **impacts based**  **on**

**annual equipment**  **shipments and**  **estimates of**  **future equipment**  **efficiency**

**distributions in**  **the absence**  **and presence**  **of higher**  **efficiency standards.** 

**Chapter 12**  **Life­Cycle Cost**  **Sub­Group Analysis:**  **discusses the**  **effects of**  **standards**

**on a**  **subgroup of**  **PTAC and**  **PTHP equipment**  **customers and**  **compares the** 

**LCC and**  **PBP of**  **equipment with**  **and without**  **higher efficiency**  **standards**

**for these**  **customers.**

**Chapter 13**  **Manufacturer Impact**  **Analysis: discusses**  **the effects**  **of amended**  **energy**

**conservation standards**  **on the**  **finances and**  **profitability of**  **equipment**

**manufacturers.**

**Chapter 14**  **Utility Impact**  **Analysis: discusses**  **the effects**  **of amended**  **energy**

**conservation standards**  **on the**  **installed generation**  **capacity of**  **electric**

**utilities.**

**Chapter 15**  **Employment Impact**  **Analysis: discusses**  **the effects**  **of amended**  **energy**

**conservation standards**  **on National**  **employment.**

**Chapter 16**  **Environmental Assessment:**  **discusses the**  **effects of**  **amended energy** 

**conservation standards**  **on certain**  **environmental indicators.** 

**Regulatory Impact**  **Analysis for**  **Packaged Terminal**  **Air Conditioners**  **and Packaged** 

**Terminal Heat**  **Pumps: discusses**  **the present**  **regulatory actions**  **as well**  **as**

**the impact**  **of non­regulatory**  **alternatives to**  **setting new**  **energy**

**conservation standards.** 

**Appendix A**  **Detailed Data**  **for Equipment**  **Price Markups:**  **accompanies Chapter**  **6,**

**Markups for**  **Equipment Price**  **Determination**

**Appendix B**  **Internal Loads**  **Schedules and**  **Part­Load Performance**  **Curves for**  **PTACs**

**and PTHPs:**  **accompanies Chapter**  **7, Energy**  **Use Characterization** 

**Appendix C**  **Typical Meteorological**  **Year (TMY2)**  **Assignments: accompanies** 

**Chapter 7,**  **Energy Use**  **Characterization**

**Appendix D**  **User Instructions**  **for Life­Cycle**  **Cost Spreadsheet:**  **accompanies Chapter** 

**8, Life­Cycle**  **Cost and**  **Payback Period**  **Analysis**

**Appendix E**  **Detailed Life­Cycle**  **Cost Output:**  **accompanies Chapter**  **8, Life­Cycle** 

**Cost and**  **Payback Period**  **Analysis**

**Appendix F**  **User Instructions**  **for National**  **Energy Savings**  **and Net**  **Present Value** 

**Spreadsheet: accompanies**  **Chapter 10,**  **National Impact**  **Analysis**

**1­5 Appendix**  **G Detailed**  **National Energy**  **Savings and**  **National Net**  **Present Value**  **Output:**

**accompanies Chapter**  **10, National**  **Impact Analysis** 

**Appendix H**  **Estimation of**  **Marginal Heat**  **Rates and**  **Site­to­Source Conversion**  **Factors;**

**accompanies Chapter**  **10, National**  **Impact Analysis** 

**Appendix I**  **Government Regulatory**  **Impact Model**  **(GRIM)**

**Appendix J**  **Estimation of**  **Utility and**  **Environmental Results**  **from NEMS­BT**  **Output:**

**accompanies Chapter**  **13, Utility**  **Impact Analysis** 

**1­6**