507 
‘‘(B) If the Secretary establishes regional standards, 
it shall be unlawful under section 345 to offer for sale 
at retail, sell at retail, or install noncomplying products 
except within the specified regions. 
‘‘(C) Manufacturers of space heating and air condi-
tioning equipment subject to regional standards estab-
lished under this paragraph shall obtain and retain 
records on the intended installation locations of the equip-
ment sold, and shall make such records available to the 
Secretary on request.’’. 
SEC. 9005. PROCEDURE FOR PRESCRIBING NEW OR AMEND-
ED STANDARDS. 
Section 325(p) of the Energy Policy and Conserva-
tion Act (42 U.S.C. 6925(p)) is amended— 
(1) by striking paragraph (1); and 
(2) by redesignating paragraphs (2) through 
(4) as paragraphs (1) through (3), respectively. 
SEC. 
9006. 
EXPEDITING 
APPLIANCE 
STANDARDS 
RULEMAKINGS. 
(a) DIRECT FINAL RULE.—Section 325(p) of the En-
ergy Policy and Conservation Act (42 U.S.C. 6295(p)) is 
amended by adding a new paragraph (4) as follows: 
‘‘(4) If manufacturers of any type (or class) of 
covered products or covered equipment, States, and 
efficiency advocates, or persons determined by the 
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508 
Secretary to fully represent such parties, submit to 
the Secretary a joint recommendation of an energy 
or water conservation standard and the Secretary 
determines that the recommended standard complies 
with subsection (o) or section 342(a)(6)(B), as appli-
cable, to that type (or class) of covered products or 
covered equipment to which the standard would 
apply, the Secretary may then issue a direct final 
rule including the standard recommended. If the 
Secretary determines that a direct final rule cannot 
be issued based on such a submitted joint rec-
ommendation, the Secretary shall publish a deter-
mination with an explanation as to why the joint 
recommendation does not comply with this para-
graph. For purposes of this paragraph, the term ‘di-
rect final rule’ means a final rule published the same 
day with a parallel notice of proposed rulemaking 
that proposes a new or amended energy or water 
conservation standard that is identical to the stand-
ard set forth in the final rule. There shall be a 110- 
day period for public comment with respect to the 
direct final rule. Not later than 10 days after the ex-
piration of such 110-day period, the Secretary shall 
publish a notice responding to comments received 
with respect to the direct final rule. The Secretary 
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509 
shall withdraw a direct final rule promulgated pur-
suant to this paragraph within 120 days after publi-
cation in the Federal Register if the Secretary re-
ceives, with respect to the direct final rule, one or 
more adverse public comments or any alternate joint 
recommendation and, based on the rulemaking 
record, the Secretary determines that such adverse 
comments or alternate joint recommendation may 
provide a reasonable basis for withdrawing the direct 
final rule under subsection (o), section 342(a)(6)(B), 
or any applicable law. In such a case, the Secretary 
shall then proceed with the parallel notice of pro-
posed rulemaking, and shall identify in a notice pub-
lished in the Federal Register the reasons for the 
withdrawal of the direct final rule. A direct final rule 
that is withdrawn in accordance with this paragraph 
shall not be considered final for purposes of sub-
section (o)(1) of this section. No person shall be 
found in violation of this part for noncompliance 
with a direct final rule that is withdrawn under this 
paragraph, if that person has complied with the ap-
plicable standard in effect under this part imme-
diately prior to issuance of that direct final rule.’’. 
(b) CONFORMING AMENDMENT.—Section 345(b)(1) 
of the Energy Policy and Conservation Act (42 U.S.C. 
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6316(b)(1)) is amended by inserting after ‘‘section’’ the 
first time it appears ‘‘325(p)(5), section’’. 
SEC. 9007. CORRECTION OF LARGE AIR CONDITIONER 
RULE ISSUANCE CONSTRAINT. 
(a) DEFINITIONS.—Section 340 of the Energy Policy 
and Conservation Act (42 U.S.C. 6311) is amended by 
adding the following new paragraphs at the end: 
‘‘(22) The term ‘single package vertical air con-
ditioner’ means air-cooled commercial package air 
conditioning and heating equipment; factory assem-
bled as a single package having its major compo-
nents arranged vertically, which is an encased com-
bination of cooling and optional heating components, 
is intended for exterior mounting on, adjacent inte-
rior to, or through an outside wall; and is powered 
by a single- or three-phase current. It may contain 
separate indoor grille(s), outdoor louvers, various 
ventilation options, indoor free air discharge, duct-
work, well plenum, or sleeve. Heating components 
may include electrical resistance, steam, hot water, 
or gas, but may not include reverse cycle refrigera-
tion as a heating means. 
‘‘(23) The term ‘single package vertical heat 
pump’ means a single package vertical air condi-
tioner that utilizes reverse cycle refrigeration as its 
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