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
 

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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 final rule (FR) 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 A 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; the Energy Policy Act of 1992 (EPACT 1992), Public Law 102­486;

and the Energy Policy Act of 2005 (EPACT 2005), Public Law 109­58, established the Energy

Conservation Program for Consumer Products other than Automobiles. (42 U.S.C. 6291­6309)

Part A­1a of Title III established a program for “Certain Industrial Equipment,” which includes

PTACs and PTHPs. (42 U.S.C. 6311(1)(I)) 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), energy­efficiency 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 Standard 90.1“Energy Standard for Buildings Except Low­Rise Residential

Buildings” (ASHRAE 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 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)(ii)(II))

a This part was originally titled Part C. However, it was redesignated Part A­1 after Part B of Title III of EPCA was

repealed by Pub. L. 109­58.

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EPCA provides that in determining whether new or amended standards are

technologically feasible and economically justified, DOE 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;

(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

expenses 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. 6316(a); 42 U.S.C.

6295(o)(2)(B)(i)­(ii))

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). Before

DOE determines whether to adopt a proposed energy conservation standard, it must first solicit

comments on the proposed standard. (42 U.S.C. 6316(a); 42 U.S.C. 6295(o)(2)(B)(i)­(ii)) 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)(ii)(II)) 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 Standard 90.1­

1999 “Energy Standard for Buildings Except Low­Rise Residential Buildings” (ASHRAE

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Standard 90.1­1999), which addressed efficiency levels for 34 categories of commercial heating,

ventilating, and air­conditioning (HVAC) and water heating equipment covered by EPCA. The

new ASHRAE Standard 90.1­1999 revised the efficiency levels in the existing ASHRAE

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 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 Standard 90.1­1999, as well as levels associated with the lowest life­cycle cost.

Screening Analysis for EPACT­Covered Commercial HVAC and Water­Heating Equipment

(commonly referred to as the 2000 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.b The analysis also estimates

additional energy­savings potential for the EPACT­covered products if they were to exceed the

efficiency levels prescribed in ASHRAE Standard 90.1­1999. The baselines for the comparison

were the corresponding levels specified in ASHRAE Standard 90.1­1999 and EPCA. On

January 12, 2001, DOE published a final rule concluding that the 2000 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 3349­50.

According to EPCA, these are the criteria for the adoption of standards more stringent than those

in ASHRAE Standard 90.1. (42 U.S.C. 6313(a)(6)(A)(ii)(II))

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 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 2000 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 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 Standard 90.1­1999 for PTACs and PTHPs through a separate rulemaking process. 71

FR 12639.

b On April 2000, the DOE published the Screening Analysis for EPACT­Covered Commercial HVAC and WaterHeating Equipment which covered PTAC and PTHP products.

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DOE proposed energy conservation standards for PTACs and PTHPs in a notice of

proposed rulemaking (NOPR) published on April 7, 2008. 73 FR 18858. In conjunction with

the NOPR, DOE also published on its website the complete TSD for the NOPR, which

incorporated the final analyses that DOE conducted and technical support documentation of each

analysis. The NOPR TSD included the LCC spreadsheets, the national impact analysis

spreadsheets, and the manufacturer impact analysis (MIA) spreadsheet–all of which are available

on DOE’s PTAC and PTHP webpage at:

http://www1.eere.energy.gov/buildings/appliance_standards/commercial/packaged_ac_hp.html.

The NOPR also included additional background information on the history of this

rulemaking. 73 FR 18862–63. DOE held a public meeting in Washington, DC, on May 1, 2008,

to accept oral comments on and solicit information relevant to the proposed rule.

Subsequent to the NOPR publication on April 2008, DOE revised its NOPR analyses in

preparation for publishing this final rule. 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 final rule 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.

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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

amended 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.

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.

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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 11, National Impact Analysis

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

accompanies Chapter 11, National Impact Analysis

Appendix H Estimation of Marginal Heat Rates and Site­to­Source Conversion Factors:

accompanies Chapter 11, National Impact Analysis

Appendix I Government Regulatory Impact Model (GRIM): accompanies Chapter 13,

Manufacturer Impact Analysis

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

accompanies Chapter 14, Utility Impact Analysis

Appendix K Manufacturer Impact Analysis Interview Guides: accompanies Chapter

13, Manufacturer Impact Analysis

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