81_FR_2121 81 FR 2111 - Energy Conservation Program for Certain Industrial Equipment: Energy Conservation Standards for Small, Large, and Very Large Air-Cooled Commercial Package Air Conditioning and Heating Equipment and Commercial Warm Air Furnaces

81 FR 2111 - Energy Conservation Program for Certain Industrial Equipment: Energy Conservation Standards for Small, Large, and Very Large Air-Cooled Commercial Package Air Conditioning and Heating Equipment and Commercial Warm Air Furnaces

DEPARTMENT OF ENERGY

Federal Register Volume 81, Issue 10 (January 15, 2016)

Page Range2111-2129
FR Document2015-33069

The Energy Policy and Conservation Act of 1975, as amended (EPCA), prescribes energy conservation standards for various consumer products and certain commercial and industrial equipment, including small, large, and very large air-cooled commercial package air conditioning and heating equipment and commercial warm air furnaces. EPCA also requires that the U.S. Department of Energy (DOE) periodically review and consider amending its standards for specified categories of industrial equipment, including commercial heating and air-conditioning equipment, in order to determine whether more- stringent, amended standards would be technologically feasible and economically justified, and save a significant additional amount of energy. In this document, DOE proposes to amend the energy conservation standards for both small, large, and very large air-cooled commercial package air conditioning and heating equipment and commercial warm air furnaces identical to those set forth in a direct final rule published elsewhere in this Federal Register. If DOE receives an adverse comment and determines that such comment may provide a reasonable basis for withdrawing the direct final rule, DOE will publish a document withdrawing the direct final rule and will proceed with this proposed rule.

Federal Register, Volume 81 Issue 10 (Friday, January 15, 2016)
[Federal Register Volume 81, Number 10 (Friday, January 15, 2016)]
[Proposed Rules]
[Pages 2111-2129]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-33069]


========================================================================
Proposed Rules
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains notices to the public of 
the proposed issuance of rules and regulations. The purpose of these 
notices is to give interested persons an opportunity to participate in 
the rule making prior to the adoption of the final rules.

========================================================================


Federal Register / Vol. 81, No. 10 / Friday, January 15, 2016 / 
Proposed Rules

[[Page 2111]]



DEPARTMENT OF ENERGY

10 CFR Part 431

[Docket Numbers EERE-2013-BT-STD-0007 and EERE-2013-BT-STD-0021]
RIN 1904-AC95 and 1904-AD11


Energy Conservation Program for Certain Industrial Equipment: 
Energy Conservation Standards for Small, Large, and Very Large Air-
Cooled Commercial Package Air Conditioning and Heating Equipment and 
Commercial Warm Air Furnaces

AGENCY: Office of Energy Efficiency and Renewable Energy, Department of 
Energy.

ACTION: Supplemental notice of proposed rulemaking.

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SUMMARY: The Energy Policy and Conservation Act of 1975, as amended 
(EPCA), prescribes energy conservation standards for various consumer 
products and certain commercial and industrial equipment, including 
small, large, and very large air-cooled commercial package air 
conditioning and heating equipment and commercial warm air furnaces. 
EPCA also requires that the U.S. Department of Energy (DOE) 
periodically review and consider amending its standards for specified 
categories of industrial equipment, including commercial heating and 
air-conditioning equipment, in order to determine whether more-
stringent, amended standards would be technologically feasible and 
economically justified, and save a significant additional amount of 
energy. In this document, DOE proposes to amend the energy conservation 
standards for both small, large, and very large air-cooled commercial 
package air conditioning and heating equipment and commercial warm air 
furnaces identical to those set forth in a direct final rule published 
elsewhere in this Federal Register. If DOE receives an adverse comment 
and determines that such comment may provide a reasonable basis for 
withdrawing the direct final rule, DOE will publish a document 
withdrawing the direct final rule and will proceed with this proposed 
rule.

DATES: DOE will accept comments, data, and information regarding the 
proposed standards no later than May 4, 2016.
    Comments regarding the likely competitive impact of the proposed 
standard should be sent to the Department of Justice contact listed in 
the ADDRESSES section before February 16, 2016.

ADDRESSES: Instructions: Any comments submitted must identify the 
proposed rule for Energy Conservation Standards for small, large, and 
very large air-cooled commercial package air conditioning and heating 
equipment (CUACs and CUHPs) and commercial warm air furnaces (CWAFs), 
and provide docket number EERE-2013-BT-STD-0007 and/or regulatory 
information number (RIN) 1904-AC95 for CUACs and CUHPs and EERE-2013-
BT-STD-0021 and/or RIN 1904-AD11 for CWAFs. Comments may be submitted 
using any of the following methods:
    1. Federal eRulemaking Portal: www.regulations.gov. Follow the 
instructions for submitting comments.
    2. Email: For CUACs and CUHPs: [email protected]. 
For CWAFs: [email protected]. Include the docket 
number and/or RIN for each equipment category in the subject line of 
the message. Submit electronic comments in WordPerfect, Microsoft Word, 
PDF, or ASCII file format, and avoid the use of special characters or 
any form of encryption.
    3. Postal Mail: Ms. Brenda Edwards, U.S. Department of Energy, 
Building Technologies Office, Mailstop EE-5B, 1000 Independence Avenue 
SW., Washington, DC 20585-0121. If possible, please submit all items on 
a compact disc (CD), in which case it is not necessary to include 
printed copies.
    4. Hand Delivery/Courier: Ms. Brenda Edwards, U.S. Department of 
Energy, Building Technologies Office, 950 L'Enfant Plaza SW., Room 
6094, Washington, DC 20024. Telephone: (202) 586-2945. If possible, 
please submit all items on a CD, in which case it is not necessary to 
include printed copies.
    No telefacsimilies (faxes) will be accepted.
    For detailed instructions on submitting comments and additional 
information on the rulemaking process, see section III of this document 
(``Public Participation'').
    Written comments regarding the burden-hour estimates or other 
aspects of the collection-of-information requirements contained in this 
proposed rule may be submitted to Office of Energy Efficiency and 
Renewable Energy through the methods listed above and by email to 
[email protected].
    EPCA requires the Attorney General to provide DOE a written 
determination of whether the proposed standard is likely to lessen 
competition. The U.S. Department of Justice Antitrust Division invites 
input from market participants and other interested persons with views 
on the likely competitive impact of the proposed standard. Interested 
persons may contact the Division at [email protected] 
before February 16, 2016. Please indicate in the ``Subject'' line of 
your email the title and Docket Number of this rulemaking notice.
    Docket: The dockets, which include Federal Register notices, public 
meeting attendee lists and transcripts, comments, and other supporting 
documents/materials, is available for review at www.regulations.gov. 
All documents in the dockets are listed in the www.regulations.gov 
index. However, some documents listed in the index, such as those 
containing information that is exempt from public disclosure, may not 
be publicly available.
    A link to the docket Web page for small, large, and very large air-
cooled commercial package air conditioning and heating equipment can be 
found at: www.regulations.gov/#!docketDetail;D=EERE-2013-BT-STD-0007. A 
link to the docket Web page for commercial warm air furnaces can be 
found at: www.regulations.gov/#!docketDetail;D=EERE-2013-BT-STD-
0021.The www.regulations.gov Web page will contain instructions on how 
to access all documents, including public comments, in the docket.
    For further information on how to review the dockets, please 
contact Ms. Brenda Edwards at (202) 586-2945 or by email: 
[email protected].

[[Page 2112]]


FOR FURTHER INFORMATION CONTACT: Mr. John Cymbalsky, U.S. Department of 
Energy, Office of Energy Efficiency and Renewable Energy, Building 
Technologies, EE-5B, 1000 Independence Avenue SW., Washington, DC 
20585-0121. Telephone: (202) 286-1692. Email: 
[email protected].

SUPPLEMENTARY INFORMATION: 

Table of Contents

I. Introduction and Authority
II. Proposed Standards
    A. Benefits and Burdens of TSLs Considered for Small, Large, and 
Very Large Air-Cooled Commercial Package Air Conditioning and 
Heating Equipment
    B. Benefits and Burdens of TSLs Considered for Commercial Warm 
Air Furnaces
III. Public Participation
    A. Submission of Comments
    B. Public Meeting
IV. Procedural Issues and Regulatory Review
V. Approval of the Office of the Secretary

I. Introduction and Authority

    Title III, Part C \1\ of the Energy Policy and Conservation Act of 
1975 (``EPCA'' or, in context, ``the Act''), Public Law 94-163 
(December 22, 1975), coupled with Title IV of the National Energy 
Conservation Policy Act, Public Law 95-619 (November 9, 1978), 
(collectively codified at 42 U.S.C. 6311-6317), established the Energy 
Conservation Program for Certain Industrial Equipment, which includes 
provisions covering the equipment addressed by this document.\2\ In 
general, this program addresses the energy efficiency of certain types 
of commercial and industrial equipment. Relevant provisions of the Act 
specifically include definitions (42 U.S.C. 6311), energy conservation 
standards (42 U.S.C. 6313), test procedures (42 U.S.C. 6314), labeling 
provisions (42 U.S.C. 6315), and the authority to require information 
and reports from manufacturers (42 U.S.C. 6316).
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    \1\ Part C was codified as Part A-1 of the corresponding portion 
of the U.S. Code.
    \2\ All references to EPCA in this document refer to the statute 
as amended through the Energy Efficiency Improvement Act of 2015, 
Public Law 114-11 (April 30, 2015).
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    Section 342(a) of EPCA, which was added as part of the Energy 
Policy Act of 1992, Public Law 102-486 (October 24, 1992) (``EPAct 
1992''), introduced new provisions regarding DOE's authority to 
regulate certain commercial and industrial equipment. Among the 
equipment EPAct 1992 required DOE to regulate were small and large air-
cooled commercial package air conditioning and heating equipment, along 
with commercial warm air furnaces (``CWAFs''). See EPAct 1992, sec. 122 
(codified as amended at 42 U.S.C. 6313(a)). As part of these changes, 
Congress specified energy conservation standards for this equipment to 
meet. See id. Later, the Energy Policy Act of 2005, Public Law 109-58 
(August 8, 2005) (``EPACT 2005''), further amended DOE's authority to 
include very large air-cooled commercial package air conditioning and 
heating equipment and added standards for this equipment to meet as 
well. See EPACT 2005, sec. 136 (codified as amended at 42 U.S.C. 
6313(a)). (Small, large, and very large, air-cooled commercial package 
air conditioning and heating equipment are also known generally as air-
cooled commercial unitary air conditioners and heat pumps (``CUACs'' 
and ``CUHPs''). Congress established standards for CUACs/CUHPs that 
have a rated capacity between 65,000 British thermal units per hour 
(Btu/h) and 760,000 Btu/h. Similarly, for CWAFs, Congress established 
standards for equipment that (1) have a rated capacity (rated maximum 
input \3\) greater than or equal to 225,000 Btu/h, (2) can be gas-fired 
or oil-fired, and (3) are designed to heat commercial and industrial 
buildings. See 42 U.S.C. 6313(a)(4).
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    \3\ ``Rated maximum input'' means the maximum gas-burning 
capacity of a CWAF in Btus per hour, as specified by the 
manufacturer.
---------------------------------------------------------------------------

    Collectively, CUACs/CUHPs and CWAFs are designed to heat and cool 
commercial buildings and are often located on a building's rooftop.
    Section 342(a) of EPCA concerns energy conservation standards for 
small, large, and very large, CUACs and CUHPs. (42 U.S.C. 6313(a)) This 
category of equipment has a rated capacity between 65,000 Btu/h and 
760,000 Btu/h. This equipment is designed to heat and cool commercial 
buildings and is often located on the building's rooftop.
    The initial Federal energy conservation standards for CWAFs were 
added to EPCA by the Energy Policy Act of 1992 (EPACT 1992), Public Law 
102-486 (Oct. 24, 1992). See 42 U.S.C. 6313(a)(4). These types of 
covered equipment have a rated capacity (rated maximum input \4\) 
greater than or equal to 225,000 Btu/h, can be gas-fired or oil-fired, 
and are designed to heat commercial and industrial buildings. Id.
---------------------------------------------------------------------------

    \4\ ``Rated maximum input'' means the maximum gas-burning 
capacity of a CWAF in Btus per hour, as specified by the 
manufacturer.
---------------------------------------------------------------------------

    Pursuant to section 342(a)(6) of EPCA, DOE is to consider amending 
the energy efficiency standards for certain types of commercial and 
industrial equipment whenever ASHRAE amends the standard levels or 
design requirements prescribed in ASHRAE/IES Standard 90.1, and 
whenever more than 6 years had elapsed since the issuance of the most 
recent final rule establishing or amending a standard for the equipment 
as of the date of AEMTCA's enactment, December 18, 2012. (42 U.S.C. 
6313(a)(6)(C)(vi)) Because more than six years had elapsed since DOE 
issued a final rule with standards for CUACs and CUHPs or CWAFs on 
October 18, 2005 (see 70 FR 60407), DOE initiated the process to review 
these standards.
    Pursuant to EPCA, DOE's energy conservation program for covered 
equipment consists essentially of four parts: (1) Testing; (2) 
labeling; (3) the establishment of Federal energy conservation 
standards; and (4) certification and enforcement procedures. Subject to 
certain criteria and conditions, DOE is required to develop test 
procedures to measure the energy efficiency, energy use, or estimated 
annual operating cost of covered equipment. (42 U.S.C. 6314) 
Manufacturers of covered equipment must use the prescribed DOE test 
procedure as the basis for certifying to DOE that their equipment 
comply with the applicable energy conservation standards adopted under 
EPCA and when making representations to the public regarding their 
energy use or efficiency. (42 U.S.C. 6314(d)) Similarly, DOE must use 
these test procedures to determine whether a given manufacturer's 
equipment complies with standards adopted pursuant to EPCA. The DOE 
test procedures for small, large, and very large CUACs/CUHPs and CWAFs 
currently appear at title 10 of the Code of Federal Regulations 
(``CFR'') 431.96 and 431.76, respectively.
    When setting standards for the equipment addressed by this 
document, EPCA prescribes that in deciding whether a proposed standard 
is economically justified, DOE must determine whether the benefits of 
the standard exceed its burdens. DOE must make this determination after 
receiving comments on the proposed standard, and by considering, to the 
maximum extent practicable, the following seven statutory factors:
    1. The economic impact of the standard on manufacturers and 
consumers of products subject to the standard;
    2. The savings in operating costs throughout the estimated average 
life of the covered products in the type (or class) compared to any 
increase in the price, initial charges, or maintenance expenses for the 
covered products

[[Page 2113]]

which are likely to result from the standard;
    3. The total projected amount of energy savings likely to result 
directly from the standard;
    4. Any lessening of the utility or the performance of the covered 
products likely to result from 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 
standard;
    6. The need for national energy conservation; and
    7. Other factors the Secretary of Energy considers relevant. (42 
U.S.C. 6313(a)(6)(B)(ii))
    With respect to the types of equipment at issue in this document, 
EPCA also contains what is known as an ``anti-backsliding'' provision, 
which prevents the Secretary from prescribing any amended standard that 
either increases the maximum allowable energy use or decreases the 
minimum required energy efficiency of a covered product. (42 U.S.C. 
6313(a)(6)(B)(iii)(I)) Also, the Secretary may not prescribe an amended 
or new standard if interested persons have established by a 
preponderance of the evidence that the standard is likely to result in 
the unavailability in the United States of any covered product type (or 
class) of performance characteristics (including reliability, features, 
sizes, capacities, and volumes) that are substantially the same as 
those generally available in the United States. (42 U.S.C. 
6313(a)(6)(B)(iii)(II))(aa)
    With respect to the equipment addressed by this document, DOE notes 
that EPCA prescribes limits on the Agency's ability to promulgate a 
standard if DOE has made a finding that interested persons have 
established by a preponderance of the evidence that a standard is 
likely to result in the unavailability of any product type (or class) 
of performance characteristics that are substantially the same as those 
generally available in the United States at the time of the finding. 
See 42 U.S.C. 6313(B)(iii)(II).
    Additionally, EPCA generally specifies criteria to follow when 
promulgating multiple energy conservation standards for covered 
products based on different subcategories. In these cases, DOE must 
specify a different standard level for a type or class of product that 
has the same function or intended use if DOE determines that products 
within such group: (A) Consume a different kind of energy from that 
consumed by other covered products within such type (or class); or (B) 
have a capacity or other performance-related feature which other 
products within such type (or class) do not have and such feature 
justifies a higher or lower standard. See 42 U.S.C. 6295(q)(1). In 
determining whether a performance-related feature justifies a different 
standard for a group of products, DOE must consider such factors as the 
utility to the customer of such a feature and other factors DOE deems 
appropriate. Id. Any rule prescribing such a standard must include an 
explanation of the basis on which such higher or lower level was 
established. See 42 U.S.C. 6295(q)(2). With respect to the equipment 
addressed by this supplemental notice of proposed rulemaking 
(``SNOPR''), DOE notes that EPCA prescribes limits on the Agency's 
ability to promulgate a standard if DOE has made a finding that 
interested persons have established by a preponderance of the evidence 
that a standard is likely to result in the unavailability of any 
product type (or class) of performance characteristics that are 
substantially the same as those generally available in the United 
States at the time of the finding. See 42 U.S.C. 6313(B)(iii)(II).
    With particular regard to this document, the Energy Independence 
and Security Act of 2007 (``EISA 2007''), Public Law 110-140 (December 
19, 2007), amended EPCA, in relevant part, to grant DOE authority to 
issue a type of final rule (i.e., a ``direct final rule'') establishing 
an energy conservation standard for a product on receipt of a statement 
that is submitted jointly by interested persons that are fairly 
representative of relevant points of view (including representatives of 
manufacturers of covered products, States, and efficiency advocates), 
as determined by the Secretary, and that contains recommendations with 
respect to an energy or water conservation standard. If the Secretary 
determines that the recommended standard contained in the statement is 
in accordance with 42 U.S.C. 6295(o) or 42 U.S.C. 6313(a)(6)(B), as 
applicable, the Secretary may issue a final rule establishing the 
recommended standard. A notice of proposed rulemaking (``NOPR'') that 
proposes an identical energy efficiency standard is published 
simultaneously with the direct final rule. A public comment period of 
at least 110 days is provided. See 42 U.S.C. 6295(p)(4). Not later than 
120 days after the date on which a direct final rule issued under this 
authority is published in the Federal Register, the Secretary shall 
withdraw the direct final rule if the Secretary receives 1 or more 
adverse public comments relating to the direct final rule or any 
alternative joint recommendation and based on the rulemaking record 
relating to the direct final rule, the Secretary determines that such 
adverse public comments or alternative joint recommendation may provide 
a reasonable basis for withdrawing the direct final rule under 
subsection 42 U.S.C. 6295(o), 6313(a)(6)(B), or any other applicable 
law. On withdrawal of a direct final rule, the Secretary shall proceed 
with the notice of proposed rulemaking published simultaneously with 
the direct final rule and publish in the Federal Register the reasons 
why the direct final rule was withdrawn. This direct final rule 
provision applies to the equipment at issue in this SNOPR. See 42 
U.S.C. 6316(b)(1). In this instance, because DOE has already published 
NOPRs related to the amendment of standards both CUACs/CUHPs and CWAFs, 
see 79 FR 58948 (September 30, 2014) (CUAC/CUHP proposal) and 80 FR 
6182 (February 4, 2015), DOE is publishing an SNOPR consistent with the 
direct final rule's statutory requirements.
    Responding to comments received from interested parties with 
respect to DOE's proposals, on April 1, 2015, DOE issued a Notice of 
Intent to Establish the Commercial Package Air Conditioners and 
Commercial Warm Air Furnaces Working Group to Negotiate Potential 
Energy Conservation Standards for Commercial Package Air Conditioners 
and Commercial Warm Air Furnaces. 80 FR 17363. The CUAC/CUHP-CWAF 
Working Group (in context, ``the Working Group'') was established under 
the Appliance Standards and Rulemaking Federal Advisory Committee 
(``ASRAC'') in accordance with the Federal Advisory Committee Act and 
the Negotiated Rulemaking Act with the purpose of discussing and, if 
possible, reaching consensus on a set of energy conservation standards 
to propose or finalize for CUACs, CUHPs and CWAFs. The Working Group 
was to consist of fairly representative parties having a defined stake 
in the outcome of the proposed standards, and would consult, as 
appropriate, with a range of experts on technical issues.
    DOE received 17 nominations for membership. Ultimately, the Working 
Group consisted of 17 members, including one member from ASRAC and one 
DOE representative.\5\ The Working

[[Page 2114]]

Group met six times (five times in-person and once by teleconference). 
The meetings were held on April 28, May 11-12, May 20-21, June 1-2, 
June 9-10, and June 15, 2015. As a result of these efforts, the Working 
Group successfully reached consensus on energy conservation standards 
for CUACs, CUHPs, and CWAFs. On June 15, 2015, it submitted a Term 
Sheet to ASRAC outlining its recommendations, which ASRAC subsequently 
adopted.\6\ See http://www.regulations.gov/#!documentDetail;D=EERE-
2013-BT-STD-0007-0093.
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    \5\ The group members were John Cymbalsky (U.S. Department of 
Energy), Marshall Hunt (Pacific Gas & Electric Company, San Diego 
Gas & Electric Company, Southern California Edison, and Southern 
California Gas Company), Andrew deLaski (Appliance Standards 
Awareness Project), Louis Starr (Northwest Energy Efficiency 
Alliance), Meg Waltner (Natural Resources Defense Council), Jill 
Hootman (Ingersoll Rand/Trane), John Hurst (Lennox), Karen Meyers 
(Rheem Manufacturing Company), Charlie McCrudden (Air Conditioning 
Contractors of America), Harvey Sachs (American Council for an 
Energy Efficient Economy), Paul Doppel (Mitsubishi Electric), Robert 
Whitwell (United Technologies Corporation), Michael Shows 
(Underwriters Laboratories), Russell Tharp (Goodman Manufacturing), 
Sami Zendah (Emerson Climate Technologies), Mark Tezigni (Sheet 
Metal and Air Conditioning Contractors National Association, Inc.), 
Nick Mislak (Air-Conditioning, Heating, and Refrigeration 
Institute).
    \6\ Available at http://www.regulations.gov/#!documentDetail;D=EERE-2013-BT-STD-0007-0093. The following 
individuals served as members of ASRAC that received and approved 
the Term Sheet: Co-Chair John Mandyck (Carrier/United Technologies 
Corporation), Co-Chair Andrew deLaski (Appliance Standards Awareness 
Project), Ashley Armstrong (U.S. Department of Energy), John Caskey 
(National Electrical Manufacturers Association), Jennifer Cleary 
(Association of Home Appliance Manufacturers), Thomas Eckman 
(Northwest Power and Conservation Council), Charles Hon (True 
Manufacturing Company), Dr. David Hungerford (California Energy 
Commission), Dr. Diane Jakobs (Rheem Manufacturing Company), Kelley 
Kline (General Electric, Appliances), Deborah Miller (National 
Association of State Energy Officials), and Scott Blake Harris 
(Harris, Wiltshire & Grannis, LLP).
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    DOE has determined that the statement containing recommendations 
with respect to energy conservation standards for CUACs, CUHPs and 
CWAFs was submitted jointly by interested persons that are fairly 
representative of relevant points of view, in accordance with 42 U.S.C. 
6295(p)(4)(A) and 6313(a)(6)(B).\7\ In reaching this determination, DOE 
took into consideration the fact that the Working Group, in conjunction 
with ASRAC members who approved the recommendations, consisted of 
representatives of manufacturers of covered products, States, and 
efficiency advocates--all of which are groups specifically identified 
by Congress as relevant parties to any consensus recommendation. (42 
U.S.C. 6295(p)(4)(A) As delineated above, the Term Sheet was signed and 
submitted by a broad cross-section of interests, including the 
manufacturers of the subject equipment, trade associations representing 
these manufacturers and installation contractors, environmental and 
energy-efficiency advocacy organizations, and electric utility 
companies. The ASRAC Committee approving the Working Group's 
recommendations included at least two members representing States--one 
representing the National Association of State Energy Officials (NASEO) 
and one representing the State of California.\8\ By its plain terms, 
the statute contemplates that the Secretary will exercise discetion to 
determine whether a given statement is ``submitted jointly by 
interested persons that are fairly representative of relevant points of 
view (including representatives of manufacturers of covered products, 
States, and efficiency advocates).'' In this case, given the broad 
range of persons participating in the process that led to the 
submission--in the Working Group and in ASRAC--and given the breadth of 
perspectives expressed in that process, DOE has determined that the 
statement it received meets this criterion.
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    \7\ See 42 U.S.C. 6313(b) (applying 42 U.S.C. 6295(p)(4) to 
energy conservation standard rulemakings involving a variety of 
industrial equipment, including CUACs, CUHPs, and CWAFs).
    \8\ These individuals were Deborah E. Miller (NASEO) and David 
Hungerford (California Energy Commission).
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    Pursuant to 42 U.S.C. 6295(p)(4), the Secretary must also determine 
whether a jointly-submitted recommendation for an energy or water 
conservation standard satisfies 42 U.S.C. 6295(o) or 42 U.S.C. 
6313(a)(6)(B), as applicable. In making this determination, DOE has 
conducted an analysis to evaluate whether the potential energy 
conservation standards under consideration would meet these 
requirements. This evaluation is similar to the comprehensive approach 
that DOE typically conducts whenever it considers potential energy 
conservation standards for a given type of product or equipment. DOE 
applies the same principles to any consensus recommendations it may 
receive to satisfy its statutory obligation to ensure that any energy 
conservation standard that it adopts achieves the maximum improvement 
in energy efficiency that is technologically feasible and economically 
justified and will result in the significant conservation of energy. 
Upon review, the Secretary determined that the Term Sheet submitted in 
the instant rulemaking comports with the standard-setting criteria set 
forth under 42 U.S.C. 6313(a)(6)(B). As a result, DOE published a 
direct final rule establishing energy conservation standards for CUACs/
CUHPs and CWAFs elsewhere in this Federal Register. If DOE receives 
adverse comments that may provide a reasonable basis for withdrawal and 
withdraws the direct final rule, DOE will consider those comments and 
any other comments received in determining how to proceed with this 
proposed rule.
    For further background information on these proposed standards and 
the supporting analyses, please see the direct final rule published 
elsewhere in this Federal Register. That document includes additional 
discussion of the EPCA requirements for promulgation of energy 
conservation standards; the current standards for CUACs/CUHPs and 
CWAFs; the history of the standards rulemakings establishing such 
standards; and information on the test procedures used to measure the 
energy efficiency of CUACs/CUHPs and CWAFs. The document also contains 
an in-depth discussion of the analyses conducted in support of this 
rulemaking, the methodologies DOE used in conducting those analyses, 
and the analytical results.

II. Proposed Standards

    When considering more stringent standards for the equipment at 
issue, DOE must determine, supported by clear and convincing evidence 
that adopting those standards would result in the significant 
additional conservation of energy and be technologically feasible and 
economically justified. See 42 U.S.C. 6313(a)(6)(A)(ii). In determining 
whether a standard is economically justified, the Secretary must 
determine whether the benefits of the standard exceed its burdens by, 
to the greatest extent practicable, considering the seven statutory 
factors discussed previously. (42 U.S.C. 6313(a)(6)(B)(ii)(I)-(VII))
    DOE considered the impacts of amended standards for CUACs/CUHPs and 
CWAFs at each TSL, beginning with the maximum technologically feasible 
level, to determine whether that level would be economically justified. 
Where the max-tech level was not justified, DOE then considered the 
next most efficient level and undertook the same evaluation until it 
reached the highest efficiency level that is both technologically 
feasible and economically justified and saves a significant amount of 
energy.
    To aid the reader as DOE discusses the benefits and/or burdens of 
each TSL, tables in this section present a summary of the results of 
DOE's quantitative analysis for each TSL. In addition to the 
quantitative results presented in the tables, DOE also considers other 
burdens and benefits that affect economic justification.

[[Page 2115]]

A. Benefits and Burdens of TSLs Considered for Small, Large, and Very 
Large Air-Cooled Commercial Package Air Conditioning and Heating 
Equipment

    Table II.1 and Table II.2 summarize the quantitative impacts 
estimated for each TSL for CUACs and CUHPs. The national impacts are 
measured over the lifetime of CUACs and CUHPs purchased in the 2018-
2048 period. The energy savings, emissions reductions, and value of 
emissions reductions refer to full-fuel-cycle results. The efficiency 
levels contained in each TSL are described in section V.A of the direct 
final rule.

                Table II.1--Summary of Analytical Results for Small, Large, and Very Large Air-Cooled Commercial Package Air Conditioning and Heating Equipment: National Impacts
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            Category                    TSL 1                TSL 2              TSL 2.5        Recommended TSL*          TSL 3              TSL 3.5              TSL 4               TSL 5
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                                                                               National FFC Energy Savings (quads)
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                                 5.3................  9.8...............  13.9..............  14.8..............  15.9..............  16.4..............  19.7..............  23.4
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                                                                            NPV of Consumer Benefits (2014$ billion)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
3% discount rate...............  18.0...............  32.8..............  47.5..............  50.0..............  53.7..............  55.3..............  64.1..............  68.2
7% discount rate...............  5.4................  10.1..............  15.1..............  15.2..............  16.8..............  17.1..............  19.2..............  18.8
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                      Cumulative Emissions Reduction (Total FFC Emissions)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
CO2 (million metric tons)......  314................  578...............  824...............  873...............  943...............  973...............  1,167.............  1,383
SO2 (thousand tons)............  164................  303...............  431...............  454...............  493...............  508...............  610...............  722
NOX (thousand tons)............  586................  1,080.............  1,538.............  1,634.............  1,759.............  1,815.............  2,180.............  2,584
Hg (tons)......................  0.61...............  1.12..............  1.59..............  1.68..............  1.82..............  1.88..............  2.25..............  2.66
CH4 (thousand tons)............  1,401..............  2,582.............  3,677.............  3,917.............  4,208.............  4,342.............  5,215.............  6,185
N2O (thousand tons)............  3.45...............  6.35..............  9.05..............  9.54..............  10.34.............  10.67.............  12.80.............  15.16
CH4 (million tons CO2eq **)....  39.2...............  72.3..............  103.0.............  109.7.............  117.8.............  121.6.............  146.0.............  173.2
N2O (thousand tons CO2eq **)...  913................  1,682.............  2,397.............  2,528.............  2,741.............  2,828.............  3,392.............  4,017
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                       Value of Emissions Reduction (Total FFC Emissions)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
CO2 (2014$ billion)[dagger]....  1.845 to 27.53.....  3.409 to 50.82....  4.870 to 72.52....  5.046 to 75.94....  5.556 to 82.83....  5.729 to 85.44....  6.860 to 102.4....  8.127 to 121.4
NOX--3% discount rate (2014$     1,828..............  3,376.............  4,820.............  5,038.............  5,503.............  5,677.............  6,804.............  8,067
 million).
NOX--7% discount rate (2014$     606................  1,121.............  1,604.............  1,614.............  1,826.............  1,881.............  2,245.............  2,652
 million).
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
* For the Recommended TSL, the NES is forecasted over the lifetime of equipment sold from 2018-2048. For the other TSLs, the NES is forecasted over the lifetime of equipment sold from 2019-
  2048.
** CO2eq is the quantity of CO2 that would have the same global warming potential (GWP).
[dagger] Range of the economic value of CO2 reductions is based on estimates of the global benefit of reduced CO2 emissions.


       Table II.2--Summary of Analytical Results for Small, Large, and Very Large Air-Cooled Commercial Package Air Conditioning and Heating Equipment: Manufacturer and Consumer Impacts
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
            Category                    TSL 1                TSL 2              TSL 2.5         Recommended TSL          TSL 3              TSL 3.5              TSL 4               TSL 5
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                      Manufacturer Impacts
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Industry NPV (2014$ million)     1,431.0 to 1,705.5.  1,421.9 to 1,758.6  1,300.5 to 1,721.1  1,204.1 to 1,606.1  1,197.4 to 1,697.0  1,138.2 to 1,670.3  1,025.0 to 1,660.9  762.7 to 1,737.6
 (No-new-standards case INPV =
 1,638.2).
Industry NPV (% change)........  (6.5) to 3.7.......  (13.5) to 6.9.....  (20.9) to 4.7.....  (26.8) to (2.3)...  (27.2) to 3.2.....  (30.8) to 1.6.....  (37.7) to 1.0.....  (53.6) to 5.7
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                         Commercial Consumer Average LCC Savings (2014$)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Small CUACs....................  (210)..............  870...............  3,777.............  4,233.............  4,233.............  3,517.............  3,035.............  5,326
Large CUACs....................  3,997..............  3,728.............  7,991.............  10,135............  10,135............  12,266............  16,803............  12,900
Very Large CUACs...............  1,547..............  4,777.............  8,610.............  8,610.............  8,881.............  8,881.............  18,386............  18,338
Average *......................  1,045..............  1,971.............  5,340.............  6,220.............  6,238.............  6,396.............  8,370.............  8,697
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                 Commercial Consumer PBP (years)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Small CUACs....................  14.9...............  8.5...............  4.9...............  4.9...............  4.9...............  2.6...............  2.5...............  4.6
Large CUACs....................  1.3................  2.4...............  2.4...............  2.6...............  2.6...............  2.6...............  2.5...............  4.6
Very Large CUACs...............  5.8................  7.0...............  6.2...............  6.2...............  7.2...............  7.2...............  5.6...............  6.3
Average *......................  10.6...............  6.7...............  4.3...............  4.4...............  4.5...............  3.0...............  2.8...............  4.8
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                             % of Consumers that Experience Net Cost
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Small CUACs....................  48.................  25................  5.................  5.................  5.................  13................  25................  16
Large CUACs....................  0..................  10................  5.................  2.................  2.................  1.................  1.................  11
Very Large CUACs...............  7..................  13................  7.................  7.................  23................  23................  3.................  6

[[Page 2116]]

 
Average *......................  32.................  20................  5.................  4.................  6.................  11................  16................  14
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Parentheses indicate negative (-) values.
* Weighted by shares of each equipment class in total projected shipments in the year of compliance.

    DOE first considered TSL 5, which represents the max-tech 
efficiency levels. TSL 5 would save 23.4 quads of energy, an amount DOE 
considers significant. Under TSL 5, the NPV of consumer benefit would 
be $18.8 billion using a discount rate of 7-percent, and $68.2 billion 
using a discount rate of 3-percent.
    The cumulative emissions reductions at TSL 5 are 1,383 million Mt 
of CO2, 722 thousand tons of SO2, 2,584 thousand 
tons of NOX, 2.66 tons of Hg, 6,185 thousand tons of 
CH4, and 15.16 thousand tons of N2O. The 
estimated monetary value of the CO2 emissions reduction at 
TSL 5 ranges from $8.127 billion to $121.4 billion.
    At TSL 5, the average LCC impact is a savings of $5,326 for small 
CUACs, $12,900 for large CUACs, and $18,338 for very large CUACs. The 
simple payback period is 4.6 years for small CUACs, 4.6 years for large 
CUACs, and 6.3 years for very large CUACs. The fraction of consumers 
experiencing a net LCC cost is 16 percent for small CUACs, 11 percent 
for large CUACs, and 6 percent for very large CUACs. Although DOE did 
not estimate consumer impacts for CUHPs, the results would be very 
similar to those for CUACs for the reasons stated in section V.B.1 of 
the direct final rule.
    At TSL 5, the projected change in INPV ranges from a decrease of 
$881.9 million to an increase of $93.1 million, which corresponds to a 
change of -53.7 percent and 5.7 percent, respectively. The industry is 
expected to incur $591.0 million in total conversion costs at this 
level. DOE projects that 98.7 percent of current equipment listings 
would require redesign at this level to meet this standard level today. 
At this level, DOE recognizes that manufacturers could face technical 
resource constraints. Manufacturers stated they would require 
additional engineering expertise and additional test laboratory 
capacity. It is unclear whether manufacturers could complete the hiring 
of the necessary technical expertise and construction of the necessary 
test facilities in time to allow for the redesign of all equipment to 
meet max-tech by 2019. Furthermore, DOE recognizes that a standard set 
at max-tech could greatly limit equipment differentiation in the CUAC/
CUHP market. By commoditizing a key differentiating feature, a standard 
set at max-tech would likely accelerate consolidaton in the industry.
    The Secretary tentatively concludes that at TSL 5 for CUACs and 
CUHPs, the benefits of energy savings, positive NPV of consumer 
benefits, emission reductions, and the estimated monetary value of the 
emissions reductions would be outweighed by the economic burden on some 
consumers, and the impacts on manufacturers, including the conversion 
costs and profit margin impacts that could result in a large reduction 
in INPV. Consequently, the Secretary has tentatively concluded that TSL 
5 is not economically justified.
    DOE then considered TSL 4. TSL 4 would save 19.7 quads of energy, 
an amount DOE considers significant. Under TSL 4, the NPV of consumer 
benefit would be $19.2 billion using a discount rate of 7-percent, and 
$64.1 billion using a discount rate of 3-percent.
    The cumulative emissions reductions at TSL 4 are 1,167 million Mt 
of CO2, 610 thousand tons of SO2, 2,180 thousand 
tons of NOX, 2.25 tons of Hg, 5,215 thousand tons of 
CH4, and 12.80 thousand tons of N2O. The 
estimated monetary value of the CO2 emissions reduction at 
TSL 4 ranges from $6.860 billion to $102.4 billion.
    At TSL 4, the average LCC impact is a savings of $3,035 for small 
CUACs, $16,803 for large CUACs, and $18,386 for very large CUACs. The 
simple payback period is 2.5 years for small CUACs, 2.5 years for large 
CUACs, and 5.6 years for very large CUACs. The fraction of consumers 
experiencing a net LCC cost is 25 percent for small CUACs, 1 percent 
for large CUACs, and 3 percent for very large CUACs. Although DOE did 
not estimate consumer impacts for CUHPs, the results would be very 
similar to those for CUACs for the reasons stated in section V.B.1 of 
the direct final rule.
    At TSL 4, the projected change in INPV ranges from a decrease of 
$619.6 million to an increase of $16.3 million, which corresponds to a 
change of -37.7 percent and 1.0 percent, respectively. The industry is 
expected to incur $538.8 million in total conversion costs at this 
level. DOE projects that 96.0 percent of current equipment listings 
would require redesign at this level to meet this standard level today.
    The Secretary tentatively concludes that at TSL 4 for CUACs and 
CUHPs, the benefits of energy savings, positive NPV of consumer 
benefits, emission reductions, and the estimated monetary value of the 
emissions reductions would be outweighed by the economic burden on some 
consumers, and the impacts on manufacturers, including the conversion 
costs and profit margin impacts that could result in a reduction in 
INPV. Consequently, the Secretary has tentatively concluded that TSL 4 
is not economically justified.
    DOE then considered TSL 3.5. TSL 3.5 would save 16.4 quads of 
energy, an amount DOE considers significant. Under TSL 3.5, the NPV of 
consumer benefit would be $17.1 billion using a discount rate of 7-
percent, and $55.3 billion using a discount rate of 3-percent.
    The cumulative emissions reductions at TSL 3.5 are 973 million Mt 
of CO2, 508 thousand tons of SO2, 1,815 thousand 
tons of NOX, 1.88 tons of Hg, 4,342 thousand tons of 
CH4, and 10.67 thousand tons of N2O. The 
estimated monetary value of the CO2 emissions reduction at 
TSL 3.5 ranges from $5.729 billion to $85.44 billion.
    At TSL 3.5, the average LCC impact is a savings of $3,517 for small 
CUACs, $12,266 for large CUACs, and $8,881 for very large CUACs. The 
simple payback period is 2.6 years for small CUACs, 2.6 years for large 
CUACs, and 7.2 years for very large CUACs. The fraction of consumers 
experiencing a net LCC cost is 13 percent for small CUACs, 1 percent 
for large CUAC, and 23 percent for very large CUACs. Although DOE did 
not estimate consumer impacts for CUHPs, the results would be very 
similar to those for CUACs for the reasons stated in section V.B.1 of 
the direct final rule.
    At TSL 3.5, the projected change in INPV ranges from a decrease of 
$506.4 million to an increase of $25.7 million, which corresponds to a 
change of -30.8 percent and 1.6 percent, respectively. The industry is 
expected to incur $489.2 million in total conversion costs at this 
level. DOE projects that 93.5 percent of current equipment listings 
would

[[Page 2117]]

require redesign at this level to meet this standard level today.
    The Secretary tentatively concludes that at TSL 3.5 for CUACs and 
CUHPs, the benefits of energy savings, positive NPV of consumer 
benefits, emission reductions, and the estimated monetary value of the 
emissions reductions would be outweighed by the economic burden on some 
consumers, and the impacts on manufacturers, including the conversion 
costs and profit margin impacts that could result in a reduction in 
INPV. Consequently, the Secretary has tentatively concluded that TSL 
3.5 is not economically justified.
    DOE then considered TSL 3. TSL 3 would save 15.9 quads of energy, 
an amount DOE considers significant. Under TSL 3, the NPV of consumer 
benefit would be $16.8 billion using a discount rate of 7-percent, and 
$53.7 billion using a discount rate of 3-percent.
    The cumulative emissions reductions at TSL 3 are 943 million Mt of 
CO2, 493 thousand tons of SO2, 1,759 thousand 
tons of NOX, 1.82 tons of Hg, 4,208 thousand tons of 
CH4, and 10.34 thousand tons of N2O. The 
estimated monetary value of the CO2 emissions reduction at 
TSL 3 ranges from $5.556 billion to $82.83 billion.
    At TSL 3, the average LCC impact is a savings of $4,233 for small 
CUACs, $10,135 for large CUACs, and $8,881 for very large CUACs. The 
simple payback period is 4.9 years for small CUACs, 2.6 years for large 
CUACs, and 7.2 years for very large CUACs. The fraction of consumers 
experiencing a net LCC cost is 5 percent for small CUACs, 2 percent for 
large CUAC, and 23 percent for very large CUACs. Although DOE did not 
estimate consumer impacts for CUHPs, the results would be very similar 
to those for CUACs for the reasons stated in section V.B.1 of the 
direct final rule.
    At TSL 3, the projected change in INPV ranges from a decrease of 
$447.2 million to an increase of $52.4 million, which corresponds to a 
change of -27.2 percent and 3.2 percent, respectively. DOE projects 
that 81.6 percent of current equipment listings would require redesign 
at this level to meet this standard level today.
    The Secretary tentatively concludes that at TSL 3 for CUACs and 
CUHPs, the benefits of energy savings, positive NPV of consumer 
benefits, emission reductions, and the estimated monetary value of the 
emissions reductions would be outweighed by the economic burden on some 
consumers, and the impacts on manufacturers, including the conversion 
costs and profit margin impacts that could result in a large reduction 
in INPV. Consequently, the Secretary has tentatively concluded that TSL 
3 is not economically justified.
    DOE then considered the Recommended TSL, which reflects the 
standard levels recommended by the Working Group. The Recommended TSL 
would save 14.8 quads of energy, an amount DOE considers significant. 
Under the Recommended TSL, the NPV of consumer benefit would be $15.2 
billion using a discount rate of 7-percent, and $50.0 billion using a 
discount rate of 3-percent.
    The cumulative emissions reductions at the Recommended TSL are 873 
million Mt of CO2, 454 thousand tons of SO2, 
1,634 thousand tons of NOX, 1.68 tons of Hg, 3,917 thousand 
tons of CH4, and 9.54 thousand tons of N2O. The 
estimated monetary value of the CO2 emissions reduction at 
the Recommended TSL ranges from $5.046 billion to $75.94 billion.
    At the Recommended TSL, the average LCC impact is a savings of 
$4,233 for small CUACs, $10,135 for large CUACs, and $8,610 for very 
large CUACs. The simple payback period is 4.9 years for small CUACs, 
2.6 years for large CUACs, and 6.2 years for very large CUACs. The 
fraction of consumers experiencing a net LCC cost is 5 percent for 
small CUACs, 2 percent for large CUACs, and 7 percent for very large 
CUACs. Although DOE did not estimate consumer impacts for CUHPs, the 
results would be very similar to those for CUACs for the reasons stated 
in section V.B.1 of the direct final rule.
    The Recommended TSL, as presented by the Working Group and approved 
by ASRAC, aligns the effective dates of the CUAC/CUHP and CWAF 
rulemakings. That approach adopts the ASHRAE 90.1-2013 efficiency 
levels in 2018 and a higher level in in 2023 as recommended by the 
Working Group. DOE anticipates that aligning the effective dates will 
reduce total conversion costs and cumulative regulatory burden, while 
also allowing industry to gain clarity on potential regulations that 
could affect refrigerant availability before the higher appliance 
standard takes effect in 2023. DOE projects that 31.5 percent of 
current equipment listings would require redesign at this level to meet 
the 2018 standard level, while 79.6 percent of current equipment 
listings would require redesign at this level to meet the 2023 standard 
level.
    At the Recommended TSL, the projected change in INPV ranges from a 
decrease of $440.4 million to a decrease of $38.5 million, which 
corresponds to a change of -26.8 percent and -2.3 percent, 
respectively. The industry is expected to incur $520.8 million in total 
conversion costs at this level. However, the industry members of the 
Working Group noted that aligning the compliance dates for the CUAC/
CUHP and CWAF standards in the manner recommended would allow 
manufacturers to coordinate their redesign and testing expenses for 
these equipment. (CUAC: AHRI and ACEEE, No. 80 at p. 1). With this 
coordination, manufacturers explained that there would be a reduction 
in the total conversion costs associated with the direct final rule. 
The resulting synergies from aligning the CUAC/CUHP and CWAF compliance 
dates would produce INPV impacts that are less severe than the 
forecasted INPV range of -26.8 percent to -2.3 percent.
    After considering the analysis and weighing the benefits and 
burdens, DOE has tentatively determined that the recommended standards 
are in accordance with 42 U.S.C. 6313(a)(6)(B), which contains 
provisions for adopting a uniform national standard more stringent than 
the amended ASHRAE Standard 90.1 for the equipment considered in this 
document. Specifically, the Secretary has tentatively determined, 
supported by clear and convincing evidence that such adoption would 
result in the significant additional conservation of energy and is 
technologically feasible and economically justified. In determining 
whether the recommended standards are economically justified, the 
Secretary has tentatively determined that the benefits of the 
recommended standards exceed the burdens. Namely, the Secretary has 
tentatively concluded that under the recommended standards for CUACs 
and CUHPs, the benefits of energy savings, positive NPV of consumer 
benefits, emission reductions, the estimated monetary value of the 
emissions reductions, and positive average LCC savings would outweigh 
the negative impacts on some consumers and on manufacturers, including 
the conversion costs that could result in a reduction in INPV for 
manufacturers.
    The proposed amended energy conservation standards for CUACs and 
CUHPs, which prescribe the minimum allowable IEER and, for commercial 
unitary heat pumps, COP, are shown in Table II.3.

[[Page 2118]]



    Table II.3--Proposed Energy Conservation Standards for Small, Large, and Very Large Air-Cooled Commercial
                                 Package Air Conditioning and Heating Equipment
----------------------------------------------------------------------------------------------------------------
                                                                         Proposed energy
          Equipment type                             Heating type         conservation         Compliance date
                                                                            standard
----------------------------------------------------------------------------------------------------------------
Small Commercial Packaged AC and   AC..........  Electric Resistance  12.9 IEER...........  January 1, 2018.
 HP (Air-Cooled)-->=65,000 Btu/h                  Heating or No       14.8 IEER...........  January 1, 2023.
 and <135,000 Btu/h Cooling                       Heating.
 Capacity.
                                                 All Other Types of   12.7 IEER...........  January 1, 2018.
                                                  Heating.            14.6 IEER...........  January 1, 2023.
                                   HP..........  Electric Resistance  12.2 IEER...........  January 1, 2018.
                                                  Heating or No       3.3 COP.............  ....................
                                                  Heating.            14.1 IEER...........  January 1, 2023.
                                                                      3.4 COP.............
                                                 All Other Types of   12.0 IEER...........  January 1, 2018.
                                                  Heating.            3.3 COP.............  ....................
                                                                      13.9 IEER...........  January 1, 2023.
                                                                      3.4 COP.............
Large Commercial Packaged AC and   AC..........  Electric Resistance  12.4 IEER...........  January 1, 2018.
 HP (Air-Cooled)-->=135,000 Btu/h                 Heating or No       14.2 IEER...........  January 1, 2023.
 and <240,000 Btu/h Cooling                       Heating.
 Capacity.
                                                 All Other Types of   12.2 IEER...........  January 1, 2018.
                                                  Heating.            14.0 IEER...........  January 1, 2023.
                                   HP..........  Electric Resistance  11.6 IEER...........  January 1, 2018.
                                                  Heating or No       3.2 COP.............  ....................
                                                  Heating.            13.5 IEER...........  January 1, 2023.
                                                                      3.3 COP.............
                                                 All Other Types of   11.4 IEER...........  January 1, 2018.
                                                  Heating.            3.2 COP.............  ....................
                                                                      13.3 IEER...........  January 1, 2023.
                                                                      3.3 COP.............
Very Large Commercial Packaged AC  AC..........  Electric Resistance  11.6 IEER...........  January 1, 2018.
 and HP (Air-Cooled)-->=240,000                   Heating or No       13.2 IEER...........  January 1, 2023.
 Btu/h and <760,000 Btu/h Cooling                 Heating.
 Capacity.
                                                 All Other Types of   11.4 IEER...........  January 1, 2018.
                                                  Heating.            13.0 IEER...........  January 1, 2023.
                                   HP..........  Electric Resistance  10.6 IEER...........  January 1, 2018.
                                                  Heating or No       3.2 COP.............  ....................
                                                  Heating.            12.5 IEER...........  January 1, 2023.
                                                                      3.2 COP.............
                                                 All Other Types of   10.4 IEER...........  January 1, 2018.
                                                  Heating.            3.2 COP.............  ....................
                                                                      12.3 IEER...........  January 1, 2023.
                                                                      3.2 COP.............
----------------------------------------------------------------------------------------------------------------


[[Page 2119]]

    The benefits and costs of the proposed standards--which mimic those 
found in the direct final rule--can also be expressed in terms of 
annualized values. The annualized net benefit is the sum of: (1) The 
annualized national economic value (expressed in 2014$) of the benefits 
from operating equipment that meet the adopted standards (consisting 
primarily of operating cost savings from using less energy, minus 
increases in product purchase costs, and (2) the annualized monetary 
value of the benefits of CO2 and NOX emission 
reductions.\9\
---------------------------------------------------------------------------

    \9\ To convert the time-series of costs and benefits into 
annualized values, DOE calculated a present value in 2014, the year 
used for discounting the NPV of total consumer costs and savings. 
For the benefits, DOE calculated a present value associated with 
each year's shipments in the year in which the shipments occur 
(2020, 2030, etc.), and then discounted the present value from each 
year to 2015. The calculation uses discount rates of 3- and 7-
percent for all costs and benefits except for the value of 
CO2 reductions, for which DOE used case-specific discount 
rates. Using the present value, DOE then calculated the fixed annual 
payment over a 30-year period, starting in the compliance year that 
yields the same present value.
---------------------------------------------------------------------------

    Table II.4 shows the annualized values for CUACs and CUHPs under 
the Recommended TSL, expressed in 2014$. The results under the primary 
estimate are as follows. Using a 7-percent discount rate for benefits 
and costs other than CO2 reduction, (for which DOE used a 3-
percent discount rate along with the SCC series that has a value of 
$40.0/t in 2015),\10\ the estimated cost of the standards in this rule 
is $708 million per year in increased equipment costs, while the 
estimated annual benefits are $2,099 million in reduced equipment 
operating costs, $1,320 million in CO2 reductions, and 
$147.5 million in reduced NOX emissions. In this case, the 
net benefit amounts to $2,859 million per year. Using a 3-percent 
discount rate for all benefits and costs and the SCC series has a value 
of $40.0/t in 2015, the estimated cost of the standards is $792 million 
per year in increased equipment costs, while the estimated annual 
benefits are $3,441 million in reduced operating costs, $1,320 million 
in CO2 reductions, and $267.3 million in reduced 
NOX emissions. In this case, the net benefit amounts to 
$4,237 million per year.
---------------------------------------------------------------------------

    \10\ DOE used a 3-percent discount rate because the SCC values 
for the series used in the calculation were derived using a 3-
percent discount rate.

   Table II.4--Annualized Benefits and Costs of Proposed Standards for Small, Large, and Very Large Air-Cooled
                            Commercial Package Air Conditioning and Heating Equipment
----------------------------------------------------------------------------------------------------------------
                                                                          Million 2014$/year
                                                     -----------------------------------------------------------
                                  Discount rate (%)                        Low net benefits    High net benefits
                                                       Primary estimate*       estimate            estimate
----------------------------------------------------------------------------------------------------------------
                                                    Benefits
----------------------------------------------------------------------------------------------------------------
Consumer Operating Cost Savings  7..................  2,099.............  2,021.............  2,309
                                 3..................  3,441.............  3,287.............  3,830
CO2 Reduction Value ($12.2/t     5..................  357...............  355...............  361
 case)**.
CO2 Reduction Value ($40.0/t     3..................  1,320.............  1,313.............  1,337
 case)**.
CO2 Reduction Value ($62.3/t     2.5................  1,973.............  1,964.............  1,999
 case)**.
CO2 Reduction Value ($117/t      3..................  4,028.............  4,009.............  4,080
 case)**.
NOX Reduction Value[dagger]....  7..................  147.5.............  146.7.............  149.5
                                 3..................  267.3.............  265.9.............  270.7
Total Benefits[dagger][dagger].  7% plus CO2 range..  2,603 to 6,275....  2,522 to 6,176....  2,820 to 6,539
                                 7..................  3,566.............  3,481.............  3,796
                                 3 plus CO2 range...  4,065 to 7,737....  3,908 to 7,561....  4,462 to 8,181
                                 3..................  5,028.............  4,866.............  5,438
----------------------------------------------------------------------------------------------------------------
                                                      Costs
----------------------------------------------------------------------------------------------------------------
Consumer Incremental Product     7..................  708...............  888...............  275
 Costs.                          3..................  792...............  1028..............  231
----------------------------------------------------------------------------------------------------------------
                                                  Net Benefits
----------------------------------------------------------------------------------------------------------------
Total[dagger][dagger]..........  7% plus CO2 range..  1,895 to 5,567....  1,635 to 5,288....  2,546 to 6,265
                                 7..................  2,859.............  2,593.............  3,521
                                 3 plus CO2 range...  3,274 to 6,945....  2,879 to 6,533....  4,232 to 7,951
                                 3..................  4,237.............  3,838.............  5,207
----------------------------------------------------------------------------------------------------------------
* This table presents the annualized costs and benefits associated with CUACs and CUHPs shipped in 2018-2048.
  These results include benefits to consumers which accrue after 2048 from the CUACs and CUHPs purchased in 2018-
  2048. The results account for the incremental variable and fixed costs incurred by manufacturers due to the
  standard, some of which may be incurred in preparation for the rule. The Primary, Low Benefits, and High
  Benefits estimates utilize projections of energy prices from the AEO 2015 Reference case, Low Economic Growth
  case, and High Economic Growth case, respectively. In addition, incremental product costs reflect a constant
  price trend in the Primary estimate, a slightly increasing price trend in the Low Benefits estimate, and a
  slightly decreasing price trend in the Low Benefits estimate. The methods used to project price trends are
  explained in section IV.D.1.
** The CO2 values represent global monetized values of the SCC, in 2014$, in 2015 under several scenarios of the
  updated SCC values. The first three cases use the averages of SCC distributions calculated using 5%, 3%, and
  2.5% discount rates, respectively. The fourth case represents the 95th percentile of the SCC distribution
  calculated using a 3% discount rate. The SCC time series incorporate an escalation factor. [dagger] Total
  Benefits for both the 3% and 7% cases are derived using the series corresponding to the average SCC with 3-
  percent discount rate ($40.0/t) case. In the rows labeled ``7% plus CO2 range'' and ``3% plus CO2 range,'' the
  operating cost and NOX benefits are calculated using the labeled discount rate, and those values are added to
  the full range of CO2 values.

[[Page 2120]]

 
[dagger] The $/ton values used for NOX are described in section IV.L.2 of the direct final rule. DOE estimated
  the monetized value of NOx emissions reductions using benefit per ton estimates from the Regulatory Impact
  Analysis titled, ``Proposed Carbon Pollution Guidelines for Existing Power Plants and Emission Standards for
  Modified and Reconstructed Power Plants,'' published in June 2014 by EPA's Office of Air Quality Planning and
  Standards. (Available at: http://www3.epa.gov/ttnecas1/regdata/RIAs/111dproposalRIAfinal0602.pdf.) For DOE's
  Primary Estimate and Low Net Benefits Estimate, the agency is presenting a national benefit-per-ton estimate
  for particulate matter emitted from the Electric Generating Unit sector based on an estimate of premature
  mortality derived from the ACS study (Krewski et al., 2009). For DOE's High Net Benefits Estimate, the benefit-
  per-ton estimates were based on the Six Cities study (Lepuele et al., 2011), which are nearly two-and-a-half
  times larger than those from the ACS study. Because of the sensitivity of the benefit-per-ton estimate to the
  geographical considerations of sources and receptors of emission, DOE intends to investigate refinements to
  the agency's current approach of one national estimate by assessing the regional approach taken by EPA's
  Regulatory Impact Analysis for the Clean Power Plan Final Rule.
[dagger][dagger] Total Benefits for both the 3% and 7% cases are derived using the series corresponding to the
  average SCC with 3-percent discount rate ($40.0/t) case. In the rows labeled ``7% plus CO2 range'' and ``3%
  plus CO2 range,'' the operating cost and NOX benefits are calculated using the labeled discount rate, and
  those values are added to the full range of CO2 values.

B. Benefits and Burdens of TSLs Considered for Commercial Warm Air 
Furnaces

    Table II.5 and Table II.6 summarize the quantitative impacts 
estimated for each TSL for CWAFs. For TSL 2, the national impacts are 
projected over the lifetime of equipment sold in 2023-2048. For the 
other TSLs, the impacts are projected over the lifetime of equipment 
sold in 2019-2048. The energy savings, emissions reductions, and value 
of emissions reductions refer to full-fuel-cycle results. The 
efficiency levels contained in each TSL are described in section V.A of 
the direct final rule.

                              Table II.5--Summary of Analytical Results for Commercial Warm Air Furnaces: National Impacts
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                    Trial standard level
                                   ---------------------------------------------------------------------------------------------------------------------
                                               1                       2                       3                      4                      5
--------------------------------------------------------------------------------------------------------------------------------------------------------
Cumulative FFC Energy Savings       0.25..................  0.23..................  0.41..................  0.41.................  2.4
 Quads.
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                    NPV of consumer costs and benefits 2014$ billion
--------------------------------------------------------------------------------------------------------------------------------------------------------
3% discount rate..................  1.1...................  1.0...................  -0.1..................  -0.1.................  2.6
7% discount rate..................  0.4...................  0.3...................  -0.4..................  -0.4.................  -0.4
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                           Cumulative FFC emissions reduction
--------------------------------------------------------------------------------------------------------------------------------------------------------
CO2 million metric tons...........  13.4..................  12.4..................  22.0..................  22.0.................  126
SO2 thousand tons.................  0.40..................  0.40..................  0.63..................  0.67.................  -10.2
NOX thousand tons.................  43.0..................  41.2..................  70.5..................  72.2.................  473
Hg tons...........................  0.001.................  0.001.................  0.002.................  0.002................  -0.04
CH4 thousand tons.................  159...................  146...................  260...................  260..................  1,673
CH4 thousand tons CO2eq*..........  4,440.................  4,096.................  7,289.................  7,292................  46,831
N2O thousand tons.................  0.03..................  0.03..................  0.05..................  0.06.................  0.08
N2O thousand tons CO2eq*..........  8.8...................  8.4...................  14.3..................  14.6.................  21.2
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                              Value of emissions reduction
--------------------------------------------------------------------------------------------------------------------------------------------------------
CO2 2014$ million**...............  79.8 to 1,185.........  71.4 to 1,078.........  126 to 1,891..........  126 to 1,897.........  713 to 10,809
NOX--3% discount rate 2014$         120 to 264............  110 to 243............  188 to 414............  192 to 424...........  1258 to 2772
 million.
NOX--7% discount rate 2014$         42.3 to 94.4..........  36.1 to 80.9..........  64.2 to 144...........  65.9 to 147..........  423 to 945
 million.
--------------------------------------------------------------------------------------------------------------------------------------------------------
For TSL 2, the impacts are projected over the lifetime of equipment sold in 2023-2048. For the other TSLs, the impacts are projected over the lifetime
  of equipment sold in 2019-2048.
* CO2eq is the quantity of CO2 that would have the same global warming potential (GWP).
** Range of the economic value of CO2 reductions is based on estimates of the global benefit of reduced CO2 emissions.


                     Table II.6--Summary of Analytical Results for Commercial Warm Air Furnaces: Manufacturer and Consumer Impacts*
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                    Trial standard level
             Category              ---------------------------------------------------------------------------------------------------------------------
                                               1                       2                       3                      4                      5
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                  Manufacturer Impacts
--------------------------------------------------------------------------------------------------------------------------------------------------------
Industry NPV (2014$ million) (No-   85.8 to 92.6..........  83.0 to 90.5..........  65.5 to 125.2.........  60.4 to 124.8........  (19.3) to 143.5
 New-Standards Case INPV = 96.3).
Industry NPV (% change)...........  (11.0) to (3.9).......  (13.9) to (6.1).......  (32.0) to 29.9........  (37.3) to 29.5.......  (120.1) to 49.0
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                          Consumer average LCC savings (2014$)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Gas-Fired Commercial Warm Air       $284..................  $284..................  $75...................  $75..................  $766
 Furnaces.
Oil-Fired Commercial Warm Air       NA....................  $400..................  NA....................  $400.................  $1,817
 Furnaces.
Average*..........................  $284..................  $285..................  $75...................  $79..................  $781
--------------------------------------------------------------------------------------------------------------------------------------------------------

[[Page 2121]]

 
                                                               Consumer simple PBP (years)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Gas-Fired Commercial Warm Air       1.4...................  1.4...................  12.3..................  12.3.................  11.3
 Furnaces.
Oil-Fired Commercial Warm Air       NA....................  1.9...................  NA....................  1.9..................  7.5
 Furnaces.
Average*..........................  1.4...................  1.4...................  12.3..................  12.1.................  11.3
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                         % of Consumers that Experience Net Cost
--------------------------------------------------------------------------------------------------------------------------------------------------------
Gas-Fired Commercial Warm Air       6%....................  6%....................  58%...................  58%..................  58%
 Furnaces.
Oil-Fired Commercial Warm Air       0%....................  11%...................  0%....................  11%..................  54%
 Furnaces.
--------------------------------------------------------------------------------------------------------------------------------------------------------
* Weighted by shares of each equipment class in total projected shipments in 2019.
[dagger] At max tech, the standard will likely require CWAF manufacturers to make design changes to the cooling components of commercial HVAC products
  and to the chassis that houses the heating and cooling components. Because these cooling system changes are triggered by the CWAF standard, they are
  taken into account in the MIA's estimate of conversion costs. The additional expense of updating the commercial cooling product contributes to an INPV
  loss that is greater than 100%.

    DOE first considered TSL 5, which represents the max-tech 
efficiency levels. TSL 5 would save 2.4 quads of energy, an amount DOE 
considers significant. Under TSL 5, the NPV of consumer cost would be 
$0.4 billion using a 7-percent discount rate, and the NPV of consumer 
benefit would be $2.6 billion using a 3-percent discount rate.
    The cumulative emissions reductions at TSL 5 are 126 Mt of 
CO2, 473 thousand tons of NOX, 1,673 thousand 
tons of CH4, and 0.08 thousand tons of N2O. 
Projected emissions show an increase of 10.2 thousand tons of 
SO2 and 0.04 ton of Hg. The estimated monetary value of the 
CO2 emissions reduction at TSL 5 ranges from $713 million to 
$10,809 million.
    At TSL 5, the average LCC impact is a savings of $766 for gas-fired 
CWAFs and $1,817 for oil-fired CWAFs. The simple payback period is 11.3 
years for gas-fired CWAFs and 7.5 years for oil-fired CWAFs. The 
fraction of consumers experiencing a net LCC cost is 58 percent for 
gas-fired CWAF and 54 percent for oil-fired CWAFs.
    At TSL 5, the projected change in INPV ranges from a decrease of 
$115.7 million to an increase of $47.2 million, which corresponds to a 
change of -120.1 percent and 49.0 percent, respectively. The industry 
is expected to incur $157.5 million in total conversion costs at this 
level. DOE projects that 99 percent of current equipment listings would 
require redesign at this level.
    The Secretary tentatively concludes that at TSL 5 for CWAFs, the 
benefits of energy savings, positive NPV of consumer benefits using a 
discount rate of 3 percent, emission reductions, and the estimated 
monetary value of the emissions reductions would be outweighed by the 
economic burden on most consumers, the negative NPV of consumer 
benefits using a 7-percent discount rate, and the impacts on 
manufacturers, including the conversion costs and profit margin impacts 
that could result in a large reduction in INPV. Consequently, the 
Secretary has tentatively concluded that TSL 5 is not economically 
justified.
    DOE then considered TSL 4. TSL 4 would save 0.41 quads of energy, 
an amount DOE considers significant. Under TSL 4, the NPV of consumer 
cost would be $0.4 billion using a 7-percent discount rate, and $0.1 
billion using a 3-percent discount rate.
    The cumulative emissions reductions at TSL 4 are 22 Mt of 
CO2, 0.67 thousand tons of SO2, 72.2 thousand 
tons of NOX, 0.002 ton of Hg, 260 thousand tons of 
CH4, and 0.06 thousand tons of N2O. The estimated 
monetary value of the CO2 emissions reduction at TSL 4 
ranges from $126 million to $1,897 million.
    At TSL 4, the average LCC impact is a savings of $75 for gas-fired 
CWAFs and $400 for oil-fired CWAFs. The simple payback period is 12.3 
years for gas-fired CWAFs and 1.9 years for oil-fired CWAFs. The 
fraction of consumers experiencing a net LCC cost is 58 percent for 
gas-fired CWAFs, and 11 percent for oil-fired CWAFs.
    At TSL 4, the projected change in INPV ranges from a decrease of 
$35.9 million to an increase of $28.4 million, which corresponds to a 
change of -37.3 percent and 29.5 percent, respectively. The industry is 
expected to incur $47.6 million in total conversion costs at this 
level. DOE projects that 94 percent of current product listings would 
require redesign at this level.
    The Secretary tentatively concludes that at TSL 4 for CWAFs, the 
benefits of energy savings, emission reductions, and the estimated 
monetary value of the emissions reductions would be outweighed by the 
economic burden on many consumers, negative NPV of consumer benefits, 
and the impacts on manufacturers, including the conversion costs and 
profit margin impacts that could result in a large reduction in INPV. 
Consequently, the Secretary has tentatively concluded that TSL 4 is not 
economically justified.
    DOE then considered TSL 3. TSL 3 would save 0.41 quads of energy, 
an amount DOE considers significant. Under TSL 3, the NPV of consumer 
cost would be $0.4 billion using a 7-percent discount rate, and $0.1 
billion using a 3-percent discount rate.
    The cumulative emissions reductions at TSL 3 are 22 Mt of 
CO2, 0.63 thousand tons of SO2, 70.5 thousand 
tons of NOX, 0.002 ton of Hg, 260 thousand tons of 
CH4, and 0.05 thousand tons of N2O. The estimated 
monetary value of the CO2 emissions reduction at TSL 3 
ranges from $126 million to $1,891 million.
    At TSL 3, the average LCC impact is a savings of $75 for gas-fired 
CWAFs. The simple payback period is 12.3 years for gas-fired CWAFs. The 
fraction of consumers experiencing a net LCC cost is 58 percent for 
gas-fired CWAFs. The EL at TSL 3 for oil-fired CWAFs is the baseline, 
so there are no LCC impacts for oil-fired CWAFs at TSL 3.
    At TSL 3, the projected change in INPV ranges from a decrease of 
$30.9 million to an increase of $28.8 million, which corresponds to a 
change of -32.0 percent and 29.9 percent, respectively. The industry is 
expected to incur $41.0 million in total conversion costs at this 
level. DOE projects that 91 percent of current equipment listings would 
require redesign at this level.
    The Secretary tentatively concludes that at TSL 3 for CWAFs, the 
benefits of

[[Page 2122]]

energy savings, emission reductions, and the estimated monetary value 
of the emissions reductions would be outweighed by the economic burden 
on many consumers, negative NPV of consumer benefits, and the impacts 
on manufacturers, including the conversion costs and profit margin 
impacts that could result in a large reduction in INPV. Consequently, 
the Secretary has tentatively concluded that TSL 3 is not economically 
justified.
    DOE then considered TSL 2, which corresponds to the recommendations 
by the Working Group. TSL 2 would save 0.23 quads of energy, an amount 
DOE considers significant. Under TSL 2, the NPV of consumer benefit 
would be $0.3 billion using a 7-percent discount rate, and $1.0 billion 
using a 3-percent discount rate.
    The cumulative emissions reductions at TSL 2 are 12.4 Mt of 
CO2, 0.40 thousand tons of SO2, 41.2 thousand 
tons of NOX, 0.001 ton of Hg, 146 thousand tons of 
CH4, and 0.03 thousand tons of N2O. The estimated 
monetary value of the CO2 emissions reduction at TSL 2 
ranges from $71.4 million to $1,078 million.
    At TSL 2, the average LCC impact is a savings of $284 for gas-fired 
CWAFs and $400 for oil-fired CWAFs. The simple payback period is 1.4 
years for gas-fired CWAF and 1.9 years for oil-fired CWAFs. The 
fraction of consumers experiencing a net LCC cost is 6 percent for gas-
fired CWAFs and 11 percent for oil-fired CWAFs.
    At TSL 2, 57 percent of current equipment listings would require 
redesign at this level. The projected change in INPV ranges from a 
decrease of $13.4 million to a decrease of $5.9 million, which 
corresponds to a decrease of 13.9 percent and 6.1 percent, 
respectively. The CWAF industry is expected to incur $22.2 million in 
total conversion costs. However, the industry noted that aligning the 
compliance dates for the CUAC/CUHP and CWAF standards, as recommended 
by the Working Group, would allow manufacturers to coordinate their 
redesign and testing expenses for this equipment. If this occurs, there 
could be a reduction in the total conversion costs associated with the 
DFR. The resulting synergies from aligning the compliance dates of the 
CUAC/CUHP and CWAF standards would produce INPV impacts that are less 
severe than the forecasted INPV range of -13.9 percent to -6.1 percent.
    After considering the analysis and weighing the benefits and 
burdens, DOE has tentatively determined that the recommended standards 
are in accordance with 42 U.S.C. 6313(a)(6)(B), which contains 
provisions for adopting a uniform national standard more stringent than 
the amended ASHRAE/IES Standard 90.1 for the equipment considered in 
this document. Specifically, the Secretary has tentatively determined, 
supported by clear and convincing evidence, that such adoption would 
result in significant additional conservation of energy and is 
technologically feasible and economically justified. In determining 
whether the recommended standards are economically justified, the 
Secretary has tentatively determined that the benefits of the 
recommended standards exceed the burdens. Namely, the Secretary has 
tentatively concluded that under the recommended standards for CWAFs, 
the benefits of energy savings, positive NPV of consumer benefits, 
emission reductions, the estimated monetary value of the emissions 
reductions, and positive average LCC savings would outweigh the 
negative impacts on some consumers and on manufacturers, including the 
conversion costs that could result in a reduction in INPV for 
manufacturers.
    Based on the above analyses, DOE is proposing to amend the energy 
conservation standards for CWAFs--as expressed in terms of thermal 
efficiency--in the manner shown in Table II.7.

 Table II.7--Proposed Energy Conservation Standards for Commercial Warm
                              Air Furnaces
------------------------------------------------------------------------
                                                               Thermal
           Equipment type            Input capacity (Btu/h)   efficiency
                                                                 (%)
------------------------------------------------------------------------
Gas-fired CWAFs....................  >=225,000                        81
                                     Btu/h.................
Oil-fired CWAFs....................  >=225,000                        82
                                     Btu/h.................
------------------------------------------------------------------------

    The benefits and costs of the proposed standards can also be 
expressed in terms of annualized values. The annualized net benefit is 
the sum of: (1) The annualized national economic value (expressed in 
2014$) of the benefits from operating equipment that meet the adopted 
standards (consisting primarily of operating cost savings from using 
less energy, minus increases in equipment purchase costs), and (2) the 
annualized monetary value of the benefits of CO2 and 
NOX emission reductions.
    Table II.8 shows the annualized values for CWAFs under TSL 2, 
expressed in 2014$. The results under the primary estimate are as 
follows. Using a 7-percent discount rate for benefits and costs other 
than CO2 reductions, (for which DOE used a 3-percent 
discount rate along with the average SCC series corresponding to a 
value of $40.0/ton in 2015 (2014$)), the estimated cost of the adopted 
standards for CWAFs is $4.31 million per year in increased equipment 
costs, while the estimated benefits are $49.0 million per year in 
reduced equipment operating costs, $24 million per year in 
CO2 reductions, and $5.49 million per year in reduced 
NOX emissions. In this case, the net benefit amounts to $75 
million per year.
    Using a 3-percent discount rate for all benefits and costs and the 
average SCC series corresponding to a value of $40.0/ton in 2015 (in 
2014$), the estimated cost of the adopted standards for CWAFs is $4.38 
million per year in increased equipment costs, while the estimated 
benefits are $71 million per year in reduced operating costs, $24.3 
million per year in CO2 reductions, and $8.76 million per 
year in reduced NOX emissions. In this case, the net benefit 
amounts to $100 million per year.

[[Page 2123]]



                        Table II.8--Annualized Benefits and Costs of Proposed Standards (TSL 2) for Commercial Warm Air Furnaces
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                     Million 2014$/year
                                   ---------------------------------------------------------------------------------------------------------------------
                                                                                                       Low  net benefits          High  net benefits
                                            Discount  rate  %             Primary  estimate *             estimate *                  estimate *
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                        Benefits
--------------------------------------------------------------------------------------------------------------------------------------------------------
Consumer Operating Cost Savings...  7...............................  49........................  48........................  54
                                    3...............................  71........................  70........................  81
CO2 Reduction Value ($12.2/t        5...............................  6.99......................  7.08......................  7.37
 case)**.
CO2 Reduction Value ($40.0/t        3...............................  24........................  25........................  26
 case)**.
CO2 Reduction Value ($62.3/t        2.5.............................  36........................  36........................  38
 case)**.
CO2 Reduction Value ($117/t         3...............................  74........................  75........................  79
 case)**.
NOX Reduction Value[dagger].......  7...............................  5 to 11...................  5 to 11...................  5 to 11
                                    3...............................  8 to 17...................  8 to 17...................  8 to 18
Total Benefits[dagger][dagger]....  7 plus CO2 range................  61 to 134.................  60 to 134.................  67 to 144
                                    7...............................  78........................  78........................  85
                                    3 plus CO2 range................  86 to 162.................  84 to 162.................  96 to 177
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                    3...............................  103.......................  102.......................  114
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                          Costs
--------------------------------------------------------------------------------------------------------------------------------------------------------
Consumer Incremental Installed      7...............................  4.31......................  5.04......................  3.92
 Costs.                             3...............................  4.38......................  5.22......................  3.94
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                      Net Benefits
--------------------------------------------------------------------------------------------------------------------------------------------------------
Total[dagger][dagger].............  7 plus CO2 range................  57 to 130.................  55 to 129.................  63 to 140
                                    7...............................  74........................  72........................  81
                                    3 plus CO2 range................  82 to 158.................  79 to 157.................  92 to 173
                                    3...............................  99........................  97........................  110
--------------------------------------------------------------------------------------------------------------------------------------------------------
*This table presents the annualized costs and benefits associated with CWAFs shipped in 2023-2048. These results include benefits to consumers which
  accrue after 2048 from the CWAFs purchased from 2023-2048. The results account for the incremental variable and fixed costs incurred by manufacturers
  due to the standard, some of which may be incurred in preparation for the rule. The Primary, Low Benefits, and High Benefits Estimates utilize
  projections of energy prices from the AEO 2015 Reference case, Low Economic Growth case, and High Economic Growth case, respectively. In addition,
  incremental equipment costs reflect a medium decline rate in the Primary Estimate, a low decline rate in the Low Benefits Estimate, and a high decline
  rate in the High Benefits Estimate.
**The CO2 values represent global monetized values of the SCC, in 2014$, in 2015 under several scenarios of the updated SCC values. The first three
  cases use the averages of SCC distributions calculated using 5%, 3%, and 2.5% discount rates, respectively. The fourth case represents the 95th
  percentile of the SCC distribution calculated using a 3% discount rate. The SCC time series incorporate an escalation factor.
[dagger]The $/ton values used for NOX are described in the Direct Final Rule. DOE estimated the monetized value of NOx emissions reductions using
  benefit per ton estimates from the Regulatory Impact Analysis titled, ``Proposed Carbon Pollution Guidelines for Existing Power Plants and Emission
  Standards for Modified and Reconstructed Power Plants,'' published in June 2014 by EPA's Office of Air Quality Planning and Standards. (Available at:
  http://www3.epa.gov/ttnecas1/regdata/RIAs/111dproposalRIAfinal0602.pdf.) For DOE's Primary Estimate and Low Net Benefits Estimate, the agency is
  presenting a national benefit-per-ton estimate for particulate matter emitted from the Electric Generating Unit sector based on an estimate of
  premature mortality derived from the ACS study (Krewski et al., 2009). For DOE's High Net Benefits Estimate, the benefit-per-ton estimates were based
  on the Six Cities study (Lepuele et al., 2011), which are nearly two-and-a-half times larger than those from the ACS study. Because of the sensitivity
  of the benefit-per-ton estimate to the geographical considerations of sources and receptors of emission, DOE intends to investigate refinements to the
  agency's current approach of one national estimate by assessing the regional approach taken by EPA's Regulatory Impact Analysis for the Clean Power
  Plan Final Rule.
[dagger][dagger]Total Benefits for both the 3% and 7% cases are derived using the series corresponding to the average SCC with 3-percent discount rate
  ($40.0/t case. In the rows labeled ``7% plus CO2 range'' and ``3% plus CO2 range,'' the operating cost and NOX benefits are calculated using the
  labeled discount rate, and those values are added to the full range of CO2 values.

III. Public Participation

Submission of Comments

    DOE will accept comments, data, and information regarding this 
proposed rule before or after the public meeting, but no later than the 
date provided in the DATES section at the beginning of this proposed 
rule. Interested parties may submit comments, data, and other 
information using any of the methods described in the ADDRESSES section 
at the beginning of this document.
    Submitting comments via www.regulations.gov. The 
www.regulations.gov Web page will require you to provide your name and 
contact information. Your contact information will be viewable to DOE 
Building Technologies staff only. Your contact information will not be 
publicly viewable except for your first and last names, organization 
name (if any), and submitter representative name (if any). If your 
comment is not processed properly because of technical difficulties, 
DOE will use this information to contact you. If DOE cannot read your 
comment due to technical difficulties and cannot contact you for 
clarification, DOE may not be able to consider your comment.
    However, your contact information will be publicly viewable if you 
include it in the comment itself or in any documents attached to your 
comment. Any information that you do not want to be publicly viewable 
should not be included in your comment, nor in any document attached to 
your comment. Otherwise, persons viewing comments will see only first 
and last names, organization names, correspondence containing comments, 
and any documents submitted with the comments.
    Do not submit to www.regulations.gov information for which 
disclosure is restricted by statute, such as trade secrets and 
commercial or financial information (hereinafter referred to as

[[Page 2124]]

Confidential Business Information (``CBI'')). Comments submitted 
through www.regulations.gov cannot be claimed as CBI. Comments received 
through the Web site will waive any CBI claims for the information 
submitted. For information on submitting CBI, see the Confidential 
Business Information section below.
    DOE processes submissions made through www.regulations.gov before 
posting. Normally, comments will be posted within a few days of being 
submitted. However, if large volumes of comments are being processed 
simultaneously, your comment may not be viewable for up to several 
weeks. Please keep the comment tracking number that www.regulations.gov 
provides after you have successfully uploaded your comment.
    Submitting comments via email, hand delivery/courier, or mail. 
Comments and documents submitted via email, hand delivery/courier, or 
mail also will be posted to www.regulations.gov. If you do not want 
your personal contact information to be publicly viewable, do not 
include it in your comment or any accompanying documents. Instead, 
provide your contact information in a cover letter. Include your first 
and last names, email address, telephone number, and optional mailing 
address. The cover letter will not be publicly viewable as long as it 
does not include any comments
    Include contact information each time you submit comments, data, 
documents, and other information to DOE. If you submit via mail or hand 
delivery/courier, please provide all items on a CD, if feasible, in 
which case it is not necessary to submit printed copies. No 
telefacsimiles (faxes) will be accepted.
    Comments, data, and other information submitted to DOE 
electronically should be provided in PDF (preferred), Microsoft Word or 
Excel, WordPerfect, or text (ASCII) file format. Provide documents that 
are not secured, that are written in English, and that are free of any 
defects or viruses. Documents should not contain special characters or 
any form of encryption and, if possible, they should carry the 
electronic signature of the author.
    Campaign form letters. Please submit campaign form letters by the 
originating organization in batches of between 50 to 500 form letters 
per PDF or as one form letter with a list of supporters' names compiled 
into one or more PDFs. This reduces comment processing and posting 
time.
    Confidential Business Information. Pursuant to 10 CFR 1004.11, any 
person submitting information that he or she believes to be 
confidential and exempt by law from public disclosure should submit via 
email, postal mail, or hand delivery/courier two well-marked copies: 
one copy of the document marked ``confidential'' including all the 
information believed to be confidential, and one copy of the document 
marked ``non-confidential'' with the information believed to be 
confidential deleted. Submit these documents via email or on a CD, if 
feasible. DOE will make its own determination about the confidential 
status of the information and treat it according to its determination.
    Factors of interest to DOE when evaluating requests to treat 
submitted information as confidential include: (1) A description of the 
items; (2) whether and why such items are customarily treated as 
confidential within the industry; (3) whether the information is 
generally known by or available from other sources; (4) whether the 
information has previously been made available to others without 
obligation concerning its confidentiality; (5) an explanation of the 
competitive injury to the submitting person that would result from 
public disclosure; (6) when such information might lose its 
confidential character due to the passage of time; and (7) why 
disclosure of the information would be contrary to the public interest.
    It is DOE's policy that all comments may be included in the public 
docket, without change and as received, including any personal 
information provided in the comments (except information deemed to be 
exempt from public disclosure).

IV. Procedural Issues and Regulatory Review

    The regulatory reviews conducted for this proposed rule are 
identical to those conducted for the direct final rule published 
elsewhere in this Federal Register. Please see the direct final rule 
for further details.

V. Approval of the Office of the Secretary

    The Secretary of Energy has approved publication of this proposed 
rule.

List of Subjects in 10 CFR Part 431

    Administrative practice and procedure, Confidential business 
information, Energy conservation, Household appliances, Imports, 
Intergovernmental relations, Reporting and recordkeeping requirements, 
Small businesses.

    Issued in Washington, DC, on December 17, 2015.
David T. Danielson,
Assistant Secretary, Energy Efficiency and Renewable Energy.
    For the reasons set forth in the preamble, DOE proposes to amend 
part 431 of chapter II, subchapter D, of title 10 of the Code of 
Federal Regulations, to read as set forth below:

PART 431--ENERGY EFFICIENCY PROGRAM FOR CERTAIN COMMERCIAL AND 
INDUSTRIAL EQUIPMENT

0
1. The authority citation for part 431 continues to read as follows:

    Authority:  42 U.S.C. 6291-6317.

0
2. Section 431.77 is revised to read as follows:


Sec.  431.77  Energy conservation standards and their effective dates.

    (a) Gas-fired commercial warm air furnaces. Each gas-fired 
commercial warm air furnace must meet the following energy efficiency 
standard levels:
    (1) For gas-fired commercial warm air furnaces manufactured 
starting on January 1, 1994, until January 1, 2023, the TE at the 
maximum rated capacity (rated maximum input) must be not less than 80 
percent; and
    (2) For gas-fired commercial warm air furnaces manufactured 
starting on January 1, 2023, the TE at the maximum rated capacity 
(rated maximum input) must be not less than 81 percent.
    (b) Oil-fired commercial warm air furnaces. Each oil-fired 
commercial warm air furnace must meet the following energy efficiency 
standard levels:
    (1) For oil-fired commercial warm air furnaces manufactured 
starting on January 1, 1994, until January 1, 2023, the TE at the 
maximum rated capacity (rated maximum input) must be not less than 81 
percent; and
    (2) For oil-fired commercial warm air furnaces manufactured 
starting on January 1, 2023, the TE at the maximum rated capacity 
(rated maximum input) must be not less than 82 percent.
0
3. Section 431.92 is amended by adding the definition of ``Double-duct 
air conditioner or heat pump means air-cooled commercial package air 
conditioning and heating equipment'' in alphabetical order to read as 
follows:


Sec.  431.92  Definitions concerning commercial air conditioners and 
heat pumps.

* * * * *
    Double-duct air conditioner or heat pump means air-cooled 
commercial

[[Page 2125]]

package air conditioning and heating equipment that--
    (1) Is either a horizontal single package or split-system unit; or 
a vertical unit that consists of two components that may be shipped or 
installed either connected or split;
    (2) Is intended for indoor installation with ducting of outdoor air 
from the building exterior to and from the unit, as evidenced by the 
unit and/or all of its components being non-weatherized, including the 
absence of any marking (or listing) indicating compliance with UL 1995, 
``Heating and Cooling Equipment,'' or any other equivalent requirements 
for outdoor use;
    (3)(i) If it is a horizontal unit, a complete unit has a maximum 
height of 35 inches;
    (ii) If it is a vertical unit, a complete unit has a maximum depth 
of 35 inches; and
    (4) Has a rated cooling capacity greater than or equal to 65,000 
Btu/h and up to 300,000 Btu/h.
* * * * *
0
4. Section 431.97 is amended by:
    a. Redesignating Tables 5 through 11 as Tables 7 through 13;
    b. Revising paragraph (b) and the introductory text of paragraph 
(c);
    c. In paragraph (d)(1) introductory text, removing ``Table 7'' and 
adding in its place ``Table 9'';
    d. In paragraph (d)(2) introductory text, removing ``Table 8'' and 
adding in its place ``Table 10''; and
    e. In paragraph (d)(3) introductory text, removing ``Table 9'' and 
adding in its place ``Table 11''.
    The revisions read as follows:


Sec.  431.97  Energy efficiency standards and their compliance dates.

* * * * *
    (b) Each commercial air conditioner or heat pump (not including 
single package vertical air conditioners and single package vertical 
heat pumps, packaged terminal air conditioners and packaged terminal 
heat pumps, computer room air conditioners, and variable refrigerant 
flow systems) manufactured starting on the compliance date listed in 
the corresponding table must meet the applicable minimum energy 
efficiency standard level(s) set forth in Tables 1 through 6 of this 
section.

                        Table 1 to Sec.   431.97--Minimum Cooling Efficiency Standards for Air Conditioning and Heating Equipment
[Not including single package vertical air conditioners and single package vertical heat pumps, packaged terminal air conditioners and packaged terminal
                 heat pumps, computer room air conditioners, and variable refrigerant flow multi-split air conditioners and heat pumps]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                      Compliance date:
                                                                                                                                         Equipment
           Equipment type               Cooling capacity          Sub-category            Heating type         Efficiency level    manufactured starting
                                                                                                                                          on . . .
--------------------------------------------------------------------------------------------------------------------------------------------------------
Small Commercial Package Air         <65,000 Btu/h.........  AC....................  All..................  SEER = 13............  June 16, 2008.
 Conditioning and Heating Equipment
 (Air-Cooled, 3-Phase, Split-
 System).
                                                             HP....................  All..................  SEER = 13............  June 16, 2008.\1\
Small Commercial Package Air         <65,000 Btu/h.........  AC....................  All..................  SEER = 13............  June 16, 2008.\1\
 Conditioning and Heating Equipment
 (Air-Cooled, 3-Phase, Single-
 Package).
                                                             HP....................  All..................  SEER = 13............  June 16, 2008.\1\
Small Commercial Package Air         >=65,000 Btu/h and      AC....................  No Heating or          EER = 11.2...........  January 1, 2010.\2\
 Conditioning and Heating Equipment   <135,000 Btu/h.                                 Electric Resistance
 (Air-Cooled).                                                                        Heating.
                                                                                     All Other Types of     EER = 11.0...........  January 1, 2010.\2\
                                                                                      Heating.
                                                             HP....................  No Heating or          EER = 11.0...........  January 1, 2010.\2\
                                                                                      Electric Resistance
                                                                                      Heating.
                                                                                     All Other Types of     EER = 10.8...........  January 1, 2010.\2\
                                                                                      Heating.
Large Commercial Package Air         >=135,000 Btu/h and     AC....................  No Heating or          EER = 11.0...........  January 1, 2010.\2\
 Conditioning and Heating Equipment   <240,000 Btu/h.                                 Electric Resistance
 (Air-Cooled).                                                                        Heating.
                                                                                     All Other Types of     EER = 10.8...........  January 1, 2010.\2\
                                                                                      Heating.
                                                             HP....................  No Heating or          EER = 10.6...........  January 1, 2010.\2\
                                                                                      Electric Resistance
                                                                                      Heating.
                                                                                     All Other Types of     EER = 10.4...........  January 1, 2010.\2\
                                                                                      Heating.
Very Large Commercial Package Air    >=240,000 Btu/h and     AC....................  No Heating or          EER = 10.0...........  January 1, 2010.\2\
 Conditioning and Heating Equipment   <760,000 Btu/h.                                 Electric Resistance
 (Air-Cooled).                                                                        Heating.
                                                                                     All Other Types of     EER = 9.8............  January 1, 2010.\2\
                                                                                      Heating.
                                                             HP....................  No Heating or          EER = 9.5............  January 1, 2010.\2\
                                                                                      Electric Resistance
                                                                                      Heating.
                                                                                     All Other Types of     EER = 9.3............  January 1, 2010.\2\
                                                                                      Heating.
Small Commercial Package Air         <65,000 Btu/h.........  AC....................  All..................  EER = 12.1...........  October 29, 2003.
 Conditioning and Heating Equipment
 (Water-Cooled).

[[Page 2126]]

 
                                     >=65,000 Btu/h and      AC....................  No Heating or          EER = 12.1...........  June 1, 2013.
                                      <135,000 Btu/h.                                 Electric Resistance
                                                                                      Heating.
                                                                                     All Other Types of     EER = 11.9...........  June 1, 2013.
                                                                                      Heating.
Large Commercial Package Air-        >=135,000 Btu/h and     AC....................  No Heating or          EER = 12.5...........  June 1, 2014.
 Conditioning and Heating Equipment   <240,000 Btu/h.                                 Electric Resistance
 (Water-Cooled).                                                                      Heating.
                                                                                     All Other Types of     EER = 12.3...........  June 1, 2014.
                                                                                      Heating.
Very Large Commercial Package Air-   >=240,000 Btu/h and     AC....................  No Heating or          EER = 12.4...........  June 1, 2014.
 Conditioning and Heating Equipment   <760,000 Btu/h.                                 Electric Resistance
 (Water-Cooled).                                                                      Heating.
                                                                                     All Other Types of     EER = 12.2...........  June 1, 2014.
                                                                                      Heating.
Small Commercial Package Air-        <65,000 Btu/h.........  AC....................  All..................  EER = 12.1...........  October 29, 2003.
 Conditioning and Heating Equipment
 (Evaporatively-Cooled).
                                     >=65,000 Btu/h and      AC....................  No Heating or          EER = 12.1...........  June 1, 2013.
                                      <135,000 Btu/h.                                 Electric Resistance
                                                                                      Heating.
                                                                                     All Other Types of     EER = 11.9...........  June 1, 2013.
                                                                                      Heating.
Large Commercial Package Air-        >=135,000 Btu/h and     AC....................  No Heating or          EER = 12.0...........  June 1, 2014.
 Conditioning and Heating Equipment   <240,000 Btu/h.                                 Electric Resistance
 (Evaporatively-Cooled).                                                              Heating.
                                                                                     All Other Types of     EER = 11.8...........  June 1, 2014.
                                                                                      Heating.
Very Large Commercial Package Air    >=240,000 Btu/h and     AC....................  No Heating or          EER = 11.9...........  June 1, 2014.
 Conditioning and Heating Equipment   <760,000 Btu/h.                                 Electric Resistance
 (Evaporatively-Cooled).                                                              Heating.
                                                                                     All Other Types of     EER = 11.7...........  June 1, 2014.
                                                                                      Heating.
Small Commercial Package Air-        <17,000 Btu/h.........  HP....................  All..................  EER = 11.2...........  October 29, 2003.\3\
 Conditioning and Heating Equipment
 (Water-Source: Water-to-Air, Water-
 Loop).
                                     >=17,000 Btu/h and      HP....................  All..................  EER = 12.0...........  October 29, 2003.\3\
                                      <65,000 Btu/h.
                                     >=65,000 Btu/h and      HP....................  All..................  EER = 12.0...........  October 29, 2003.\3\
                                      <135,000 Btu/h.
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ And manufactured before January 1, 2017. See Table 3 of this section for updated efficiency standards.
\2\ And manufactured before January 1, 2018. See Table 3 of this section for updated efficiency standards.
\3\ And manufactured before October 9, 2015. See Table 3 of this section for updated efficiency standards.


    Table 2 to Sec.   431.97--Minimum Heating Efficiency Standards for Air Conditioning and Heating Equipment
                                                  [Heat pumps]
    [Not including single package vertical air conditioners and single package vertical heat pumps, packaged
terminal air conditioners and packaged terminal heat pumps, computer room air conditioners, variable refrigerant
flow multi-split air conditioners and heat pumps, and double-duct air-cooled commercial package air conditioning
                                             and heating equipment]
----------------------------------------------------------------------------------------------------------------
                                                                                             Compliance date:
            Equipment type                 Cooling capacity         Efficiency level      Equipment manufactured
                                                                                            starting on . . .
----------------------------------------------------------------------------------------------------------------
Small Commercial Package Air           <65,000 Btu/h..........  HSPF = 7.7.............  June 16, 2008.\1\
 Conditioning and Heating Equipment
 (Air-Cooled, 3-Phase, Split-System).
Small Commercial Package Air-          <65,000 Btu/h..........  HSPF = 7.7.............  June 16, 2008.\1\
 Conditioning and Heating Equipment
 (Air-Cooled, 3-Phase, Single-
 Package).
Small Commercial Package Air           >=65,000 Btu/h and       COP = 3.3..............  January 1, 2010.\2\
 Conditioning and Heating Equipment     <135,000 Btu/h.
 (Air-Cooled).
Large Commercial Packaged Air          >=135,000 Btu/h and      COP = 3.2..............  January 1, 2010.\2\
 Conditioning and Heating Equipment     <240,000 Btu/h.
 (Air-Cooled).

[[Page 2127]]

 
Very Large Commercial Packaged Air     >=240,000 Btu/h and      COP = 3.2..............  January 1, 2010.\2\
 Conditioning and Heating Equipment     <760,000 Btu/h.
 (Air-Cooled).
Small Commercial Packaged Air          <135,000 Btu/h.........  COP = 4.2..............  October 29, 2003.
 Conditioning and Heating Equipment
 (Water-Source: Water-to-Air, Water-
 Loop).
----------------------------------------------------------------------------------------------------------------
\1\ And manufactured before January 1, 2017. See Table 4 of this section for updated heating efficiency
  standards.
\2\ And manufactured before January 1, 2018. See Table 4 of this section for updated heating efficiency
  standards.


                Table 3 to Sec.   431.97--Updates to the Minimum Cooling Efficiency Standards for Air Conditioning and Heating Equipment
[Not including single package vertical air conditioners and single package vertical heat pumps, packaged terminal air conditioners and packaged terminal
heat pumps, computer room air conditioners, variable refrigerant flow multi-split air conditioners and heat pumps, and double-duct air-cooled commercial
                                                     package air conditioning and heating equipment]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                      Compliance date:
                                                                                                                                         Equipment
           Equipment type               Cooling capacity          Sub-category            Heating type         Efficiency level    manufactured starting
                                                                                                                                          on . . .
--------------------------------------------------------------------------------------------------------------------------------------------------------
Small Commercial Packaged Air        >=65,000 Btu/h and      AC....................  Electric Resistance    IEER = 12.9..........  January 1, 2018.\1\
 Conditioning and Heating Equipment   <135,000 Btu/h.                                 Heating or No         IEER = 14.8..........  January 1, 2023.
 (Air-Cooled).                                                                        Heating.
                                                                                     All Other Types of     IEER = 12.7..........  January 1, 2018.\1\
                                                                                      Heating.              IEER = 14.6..........  January 1, 2023.
                                                             HP....................  Electric Resistance    IEER = 12.2..........  January 1, 2018.\1\
                                                                                      Heating or No         IEER = 14.1..........  January 1, 2023.
                                                                                      Heating.
                                                                                     All Other Types of     IEER = 12.0..........  January 1, 2018.\1\
                                                                                      Heating.              IEER = 13.9..........  January 1, 2023.
Large Commercial Packaged Air        >=135,000 Btu/h and     AC....................  Electric Resistance    IEER = 12.4..........  January 1, 2018.\1\
 Conditioning and Heating Equipment   <240,000 Btu/h.                                 Heating or No         IEER = 14.2..........  January 1, 2023.
 (Air-Cooled).                                                                        Heating.
                                                                                     All Other Types of     IEER = 12.2..........  January 1, 2018.\1\
                                                                                      Heating.              IEER = 14.0..........  January 1, 2023.
                                                             HP....................  Electric Resistance    IEER = 11.6..........  January 1, 2018.\1\
                                                                                      Heating or No         IEER = 13.5..........  January 1, 2023.
                                                                                      Heating.
                                                                                     All Other Types of     IEER = 11.4..........  January 1, 2018.\1\
                                                                                      Heating.              IEER = 13.3..........  January 1, 2023.
Very Large Commercial Packaged Air   >=240,000 Btu/h and     AC....................  Electric Resistance    IEER = 11.6..........  January 1, 2018.\1\
 Conditioning and Heating Equipment   <760,000 Btu/h.                                 Heating or No         IEER = 13.2..........  January 1, 2023.
 (Air-Cooled).                                                                        Heating.
                                                                                     All Other Types of     IEER = 11.4..........  January 1, 2018.\1\
                                                                                      Heating.              IEER = 13.0..........  January 1, 2023.
                                                             HP....................  Electric Resistance    IEER = 10.6..........  January 1, 2018.\1\
                                                                                      Heating or No         IEER = 12.5..........  January 1, 2023.
                                                                                      Heating.

[[Page 2128]]

 
                                                                                     All Other Types of     IEER = 10.4..........  January 1, 2018.\1\
                                                                                      Heating.              IEER = 12.3..........  January 1, 2023.
Small Commercial Package Air-        <65,000 Btu/h.........  AC....................  All..................  SEER = 13.0..........  June 16, 2008.
 Conditioning and Heating Equipment
 (Air-Cooled, 3-Phase, Split-
 System).
                                                             HP....................  All..................  SEER = 14.0..........  January 1, 2017.
Small Commercial Package Air-        <65,000 Btu/h.........  AC....................  All..................  SEER = 14.0..........  January 1, 2017.
 Conditioning and Heating Equipment
 (Air-Cooled, 3-Phase, Single-
 Package).
                                                             HP....................  All..................  SEER = 14.0..........  January 1, 2017.
Small Commercial Packaged Air-       <17,000 Btu/h.........  HP....................  All..................  EER = 12.2...........  October 9, 2015.
 Conditioning and Heating Equipment
 (Water Source: Water-to-Air, Water-
 Loop).
                                     >=17,000 Btu/h and      HP....................  All..................  EER = 13.0...........  October 9, 2015.
                                      <65,000 Btu/h.
                                     >=65,000 Btu/h and      HP....................  All..................  EER = 13.0...........  October 9, 2015.
                                      <135,000 Btu/h.
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ And manufactured before January 1, 2023.


  Table 4 to Sec.   431.97--Updates to the Minimum Heating Efficiency Standards for Air-Cooled Air Conditioning
                                              and Heating Equipment
                                                  [Heat Pumps]
    [Not including single package vertical air conditioners and single package vertical heat pumps, packaged
terminal air conditioners and packaged terminal heat pumps, computer room air conditioners, variable refrigerant
flow multi-split air conditioners and heat pumps, and double-duct air-cooled commercial package air conditioning
                                             and heating equipment]
----------------------------------------------------------------------------------------------------------------
                                                                                             Compliance date:
            Equipment type                 Cooling capacity       Efficiency level \1\    equipment manufactured
                                                                                            starting on . . .
----------------------------------------------------------------------------------------------------------------
Small Commercial Package Air           <65,000 Btu/h..........  HSPF = 8.2.............  January 1, 2017.
 Conditioning and Heating Equipment
 (Air-Cooled, 3-Phase, Split-Sytem).
Small Commercial Package Air           <65,000 Btu/h..........  HSPF = 8.0.............  January 1, 2017.
 Conditioning and Heating Equipment
 (Air-Cooled, 3-Phase, Single
 Package).
Small Commercial Package Air           <135,000 Btu/h.........  COP = 4.3..............  October 9, 2015.
 Conditioning and Heating Equipment
 (Water-Source: Water-to-Air, Water-
 Loop).
Small Commercial Packaged Air          >=65,000 Btu/h and       COP = 3.3..............  January 1, 2018.\2\.
 Conditioning and Heating Equipment     <135,000 Btu/h.         COP = 3.4..............  January 1, 2023.
 (Air-Cooled).
Large Commercial Packaged Air          >=135,000 Btu/h and      COP = 3.2..............  January 1, 2018.\2\.
 Conditioning and Heating Equipment     <240,000 Btu/h.         COP = 3.3..............  January 1, 2023.
 (Air-Cooled).
Very Large Commercial Packaged Air     >=240,000 Btu/h and      COP = 3.2..............  January 1, 2018.
 Conditioning and Heating Equipment     <760,000 Btu/h.
 (Air-Cooled).
----------------------------------------------------------------------------------------------------------------
\1\ For units tested using the relevant AHRI Standards, all COP values must be rated at 47[emsp14][deg]F outdoor
  dry-bulb temperature for air-cooled equipment.
\2\ And manufactured before January 1, 2023.


[[Page 2129]]


                  Table 5 to Sec.   431.97--Minimum Cooling Efficiency Standards for Double-Duct Air-Conditioning and Heating Equipment
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                      Compliance date:
                                                                                                                                          equipment
          Equipment type               Cooling capacity           Sub-category             Heating type         Efficiency level        manufactured
                                                                                                                                      starting on. . .
--------------------------------------------------------------------------------------------------------------------------------------------------------
Small Double-Duct Commercial        >=65,000 Btu/h and     AC                          Electric Resistance   EER = 11.2...........  January 1, 2010.
 Packaged Air Conditioning and       <135,000 Btu/h.                                    Heating or No
 Heating Equipment (Air-Cooled).                                                        Heating.
                                                                                       All Other Types of    EER = 11.0...........  January 1, 2010.
                                                                                        Heating.
                                                           HP                          Electric Resistance   EER = 11.0...........  January 1, 2010.
                                                                                        Heating or No
                                                                                        Heating.
                                                                                       All Other Types of    EER = 10.8...........  January 1, 2010.
                                                                                        Heating.
Large Commercial Double-Duct        >=135,000 Btu/h and    AC                          Electric Resistance   EER = 11.0...........  January 1, 2010.
 Packaged Air Conditioning and       <240,000 Btu/h.                                    Heating or No
 Heating Equipment (Air-Cooled).                                                        Heating.
                                                                                       All Other Types of    EER = 10.8...........  January 1, 2010.
                                                                                        Heating.
                                                           HP                          Electric Resistance   EER = 10.6...........  January 1, 2010.
                                                                                        Heating or No
                                                                                        Heating.
                                                                                       All Other Types of    EER = 10.4...........  January 1, 2010.
                                                                                        Heating.
Very Large Double-Duct Commercial   >=240,000 Btu/h and    AC                          Electric Resistance   EER = 10.0...........  January 1, 2010.
 Packaged Air Conditioning and       <300,000 Btu/h.                                    Heating or No
 Heating Equipment (Air-Cooled).                                                        Heating.
                                                                                       All Other Types of    EER = 9.8............  January 1, 2010.
                                                                                        Heating.
                                                           HP                          Electric Resistance   EER = 9.5............  January 1, 2010.
                                                                                        Heating or No
                                                                                        Heating.
                                                                                       All Other Types of    EER = 9.3............  January 1, 2010.
                                                                                        Heating.
--------------------------------------------------------------------------------------------------------------------------------------------------------


 Table 6 to Sec.   431.97--Minimum Heating Efficiency Standards for Double-Duct Air-Cooled Air Conditioning and
                                                Heating Equipment
                                                  [Heat pumps]
----------------------------------------------------------------------------------------------------------------
                                                                                               Compliance date:
                                                                           Efficiency level        Equipment
         Equipment type           Cooling capacity      Heating type             \1\             manufactured
                                                                                               starting on . . .
----------------------------------------------------------------------------------------------------------------
Small Commercial Packaged Air    >=65,000 Btu/h and  Electric            COP = 3.3..........  January 1, 2010.
 Conditioning and Heating         <135,000 Btu/h      Resistance
 Equipment (Air-Cooled).                              Heating or No
                                                      Heating.
                                                     All Other Types of  COP = 3.3..........  January 1, 2010.
                                                      Heating.
Large Commercial Packaged Air-   >=135,000 Btu/h     Electric            COP = 3.2..........  January 1, 2010.
 Conditioning and Heating         and <240,000 Btu/   Resistance
 Equipment (Air-Cooled).          h                   Heating or No
                                                      Heating.
                                                     All Other Types of  COP = 3.2..........  January 1, 2010.
                                                      Heating
Very Large Commercial Packaged   >=240,000 Btu/h     Electric            COP = 3.2            January 1, 2010.
 Air Conditioning and Heating     and <300,000 Btu/   Resistance
 Equipment (Air-Cooled).          h                   Heating or No
                                                      Heating.
                                                     All Other Types of  COP = 3.2            January 1, 2010.
                                                      Heating.
----------------------------------------------------------------------------------------------------------------
\1\ For units tested using the relevant AHRI Standards, all COP values must be rated at 47[emsp14][deg]F outdoor
  dry-bulb temperature for air-cooled equipment.

    (c) Each packaged terminal air conditioner (PTAC) and packaged 
terminal heat pump (PTHP) manufactured starting on January 1, 1994, but 
before October 8, 2012 (for standard size PTACs and PTHPs) and before 
October 7, 2010 (for non-standard size PTACs and PTHPs) must meet the 
applicable minimum energy efficiency standard level(s) set forth in 
Table 7 of this section. Each standard size PTAC and PTHP manufactured 
starting on October 8, 2012, and each non-standard size PTAC and PTHP 
manufactured starting on October 7, 2010, must meet the applicable 
minimum energy efficiency standard level(s) set forth in Table 6 of 
this section.
* * * * *
[FR Doc. 2015-33069 Filed 1-14-16; 8:45 am]
 BILLING CODE 6450-01-P



                                                                                                                                                                                                  2111

                                                Proposed Rules                                                                                                 Federal Register
                                                                                                                                                               Vol. 81, No. 10

                                                                                                                                                               Friday, January 15, 2016



                                                This section of the FEDERAL REGISTER                    direct final rule, DOE will publish a                     No telefacsimilies (faxes) will be
                                                contains notices to the public of the proposed          document withdrawing the direct final                  accepted.
                                                issuance of rules and regulations. The                  rule and will proceed with this                           For detailed instructions on
                                                purpose of these notices is to give interested          proposed rule.                                         submitting comments and additional
                                                persons an opportunity to participate in the                                                                   information on the rulemaking process,
                                                rule making prior to the adoption of the final          DATES: DOE will accept comments, data,
                                                rules.                                                  and information regarding the proposed                 see section III of this document (‘‘Public
                                                                                                        standards no later than May 4, 2016.                   Participation’’).
                                                                                                           Comments regarding the likely                          Written comments regarding the
                                                DEPARTMENT OF ENERGY                                    competitive impact of the proposed                     burden-hour estimates or other aspects
                                                                                                        standard should be sent to the                         of the collection-of-information
                                                10 CFR Part 431                                         Department of Justice contact listed in                requirements contained in this proposed
                                                [Docket Numbers EERE–2013–BT–STD–                       the ADDRESSES section before February                  rule may be submitted to Office of
                                                0007 and EERE–2013–BT–STD–0021]                         16, 2016.                                              Energy Efficiency and Renewable
                                                                                                                                                               Energy through the methods listed
                                                RIN 1904–AC95 and 1904–AD11                             ADDRESSES: Instructions: Any comments                  above and by email to Chad_S_
                                                                                                        submitted must identify the proposed                   Whiteman@omb.eop.gov.
                                                Energy Conservation Program for                         rule for Energy Conservation Standards                    EPCA requires the Attorney General
                                                Certain Industrial Equipment: Energy                    for small, large, and very large air-                  to provide DOE a written determination
                                                Conservation Standards for Small,                       cooled commercial package air                          of whether the proposed standard is
                                                Large, and Very Large Air-Cooled                        conditioning and heating equipment                     likely to lessen competition. The U.S.
                                                Commercial Package Air Conditioning                     (CUACs and CUHPs) and commercial                       Department of Justice Antitrust Division
                                                and Heating Equipment and                               warm air furnaces (CWAFs), and                         invites input from market participants
                                                Commercial Warm Air Furnaces                            provide docket number EERE–2013–                       and other interested persons with views
                                                                                                        BT–STD–0007 and/or regulatory                          on the likely competitive impact of the
                                                AGENCY:  Office of Energy Efficiency and
                                                                                                        information number (RIN) 1904–AC95                     proposed standard. Interested persons
                                                Renewable Energy, Department of
                                                                                                        for CUACs and CUHPs and EERE–2013–                     may contact the Division at
                                                Energy.
                                                                                                        BT–STD–0021 and/or RIN 1904–AD11                       energy.standards@atr.usdoj.gov before
                                                ACTION: Supplemental notice of                          for CWAFs. Comments may be
                                                proposed rulemaking.                                                                                           February 16, 2016. Please indicate in the
                                                                                                        submitted using any of the following                   ‘‘Subject’’ line of your email the title
                                                SUMMARY:   The Energy Policy and                        methods:                                               and Docket Number of this rulemaking
                                                Conservation Act of 1975, as amended                       1. Federal eRulemaking Portal:                      notice.
                                                (EPCA), prescribes energy conservation                  www.regulations.gov. Follow the                           Docket: The dockets, which include
                                                standards for various consumer                          instructions for submitting comments.                  Federal Register notices, public meeting
                                                products and certain commercial and                        2. Email: For CUACs and CUHPs:                      attendee lists and transcripts,
                                                industrial equipment, including small,                  CommPkgACHP2013STD0007@                                comments, and other supporting
                                                large, and very large air-cooled                        ee.doe.gov. For CWAFs:                                 documents/materials, is available for
                                                commercial package air conditioning                     CommWarmAirFurn2013STD0021@                            review at www.regulations.gov. All
                                                and heating equipment and commercial                    ee.doe.gov. Include the docket number                  documents in the dockets are listed in
                                                warm air furnaces. EPCA also requires                   and/or RIN for each equipment category                 the www.regulations.gov index.
                                                that the U.S. Department of Energy                      in the subject line of the message.                    However, some documents listed in the
                                                (DOE) periodically review and consider                  Submit electronic comments in                          index, such as those containing
                                                amending its standards for specified                    WordPerfect, Microsoft Word, PDF, or                   information that is exempt from public
                                                categories of industrial equipment,                     ASCII file format, and avoid the use of                disclosure, may not be publicly
                                                including commercial heating and air-                   special characters or any form of                      available.
                                                conditioning equipment, in order to                     encryption.                                               A link to the docket Web page for
                                                determine whether more-stringent,                          3. Postal Mail: Ms. Brenda Edwards,                 small, large, and very large air-cooled
                                                amended standards would be                              U.S. Department of Energy, Building                    commercial package air conditioning
                                                technologically feasible and                            Technologies Office, Mailstop EE–5B,                   and heating equipment can be found at:
                                                economically justified, and save a                      1000 Independence Avenue SW.,                          www.regulations.gov/
                                                significant additional amount of energy.                Washington, DC 20585–0121. If                          #!docketDetail;D=EERE-2013-BT-STD-
                                                In this document, DOE proposes to                       possible, please submit all items on a                 0007. A link to the docket Web page for
                                                amend the energy conservation                           compact disc (CD), in which case it is                 commercial warm air furnaces can be
                                                standards for both small, large, and very               not necessary to include printed copies.               found at: www.regulations.gov/
                                                large air-cooled commercial package air                    4. Hand Delivery/Courier: Ms. Brenda                #!docketDetail;D=EERE-2013-BT-STD-
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                                                conditioning and heating equipment                      Edwards, U.S. Department of Energy,                    0021.The www.regulations.gov Web
                                                and commercial warm air furnaces                        Building Technologies Office, 950                      page will contain instructions on how to
                                                identical to those set forth in a direct                L’Enfant Plaza SW., Room 6094,                         access all documents, including public
                                                final rule published elsewhere in this                  Washington, DC 20024. Telephone:                       comments, in the docket.
                                                Federal Register. If DOE receives an                    (202) 586–2945. If possible, please                       For further information on how to
                                                adverse comment and determines that                     submit all items on a CD, in which case                review the dockets, please contact Ms.
                                                such comment may provide a                              it is not necessary to include printed                 Brenda Edwards at (202) 586–2945 or by
                                                reasonable basis for withdrawing the                    copies.                                                email: Brenda.Edwards@ee.doe.gov.


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                                                2112                     Federal Register / Vol. 81, No. 10 / Friday, January 15, 2016 / Proposed Rules

                                                FOR FURTHER INFORMATION CONTACT:    Mr.                 commercial warm air furnaces                           standard levels or design requirements
                                                John Cymbalsky, U.S. Department of                      (‘‘CWAFs’’). See EPAct 1992, sec. 122                  prescribed in ASHRAE/IES Standard
                                                Energy, Office of Energy Efficiency and                 (codified as amended at 42 U.S.C.                      90.1, and whenever more than 6 years
                                                Renewable Energy, Building                              6313(a)). As part of these changes,                    had elapsed since the issuance of the
                                                Technologies, EE–5B, 1000                               Congress specified energy conservation                 most recent final rule establishing or
                                                Independence Avenue SW.,                                standards for this equipment to meet.                  amending a standard for the equipment
                                                Washington, DC 20585–0121.                              See id. Later, the Energy Policy Act of                as of the date of AEMTCA’s enactment,
                                                Telephone: (202) 286–1692. Email:                       2005, Public Law 109–58 (August 8,                     December 18, 2012. (42 U.S.C.
                                                John.Cymbalsky@ee.doe.gov.                              2005) (‘‘EPACT 2005’’), further amended                6313(a)(6)(C)(vi)) Because more than six
                                                SUPPLEMENTARY INFORMATION:                              DOE’s authority to include very large                  years had elapsed since DOE issued a
                                                                                                        air-cooled commercial package air                      final rule with standards for CUACs and
                                                Table of Contents                                       conditioning and heating equipment                     CUHPs or CWAFs on October 18, 2005
                                                I. Introduction and Authority                           and added standards for this equipment                 (see 70 FR 60407), DOE initiated the
                                                II. Proposed Standards                                  to meet as well. See EPACT 2005, sec.                  process to review these standards.
                                                   A. Benefits and Burdens of TSLs                      136 (codified as amended at 42 U.S.C.                     Pursuant to EPCA, DOE’s energy
                                                      Considered for Small, Large, and Very             6313(a)). (Small, large, and very large,               conservation program for covered
                                                      Large Air-Cooled Commercial Package               air-cooled commercial package air
                                                      Air Conditioning and Heating Equipment                                                                   equipment consists essentially of four
                                                   B. Benefits and Burdens of TSLs
                                                                                                        conditioning and heating equipment are                 parts: (1) Testing; (2) labeling; (3) the
                                                      Considered for Commercial Warm Air                also known generally as air-cooled                     establishment of Federal energy
                                                      Furnaces                                          commercial unitary air conditioners and                conservation standards; and (4)
                                                III. Public Participation                               heat pumps (‘‘CUACs’’ and ‘‘CUHPs’’).                  certification and enforcement
                                                   A. Submission of Comments                            Congress established standards for                     procedures. Subject to certain criteria
                                                   B. Public Meeting                                    CUACs/CUHPs that have a rated                          and conditions, DOE is required to
                                                IV. Procedural Issues and Regulatory Review             capacity between 65,000 British thermal
                                                V. Approval of the Office of the Secretary                                                                     develop test procedures to measure the
                                                                                                        units per hour (Btu/h) and 760,000 Btu/                energy efficiency, energy use, or
                                                I. Introduction and Authority                           h. Similarly, for CWAFs, Congress                      estimated annual operating cost of
                                                                                                        established standards for equipment                    covered equipment. (42 U.S.C. 6314)
                                                   Title III, Part C 1 of the Energy Policy
                                                                                                        that (1) have a rated capacity (rated                  Manufacturers of covered equipment
                                                and Conservation Act of 1975 (‘‘EPCA’’
                                                                                                        maximum input 3) greater than or equal                 must use the prescribed DOE test
                                                or, in context, ‘‘the Act’’), Public Law
                                                                                                        to 225,000 Btu/h, (2) can be gas-fired or              procedure as the basis for certifying to
                                                94–163 (December 22, 1975), coupled
                                                                                                        oil-fired, and (3) are designed to heat                DOE that their equipment comply with
                                                with Title IV of the National Energy
                                                                                                        commercial and industrial buildings.                   the applicable energy conservation
                                                Conservation Policy Act, Public Law
                                                                                                        See 42 U.S.C. 6313(a)(4).                              standards adopted under EPCA and
                                                95–619 (November 9, 1978),                                 Collectively, CUACs/CUHPs and
                                                (collectively codified at 42 U.S.C. 6311–                                                                      when making representations to the
                                                                                                        CWAFs are designed to heat and cool
                                                6317), established the Energy                                                                                  public regarding their energy use or
                                                                                                        commercial buildings and are often
                                                Conservation Program for Certain                                                                               efficiency. (42 U.S.C. 6314(d)) Similarly,
                                                                                                        located on a building’s rooftop.
                                                Industrial Equipment, which includes                       Section 342(a) of EPCA concerns                     DOE must use these test procedures to
                                                provisions covering the equipment                       energy conservation standards for small,               determine whether a given
                                                addressed by this document.2 In                         large, and very large, CUACs and                       manufacturer’s equipment complies
                                                general, this program addresses the                     CUHPs. (42 U.S.C. 6313(a)) This                        with standards adopted pursuant to
                                                energy efficiency of certain types of                   category of equipment has a rated                      EPCA. The DOE test procedures for
                                                commercial and industrial equipment.                    capacity between 65,000 Btu/h and                      small, large, and very large CUACs/
                                                Relevant provisions of the Act                          760,000 Btu/h. This equipment is                       CUHPs and CWAFs currently appear at
                                                specifically include definitions (42                    designed to heat and cool commercial                   title 10 of the Code of Federal
                                                U.S.C. 6311), energy conservation                       buildings and is often located on the                  Regulations (‘‘CFR’’) 431.96 and 431.76,
                                                standards (42 U.S.C. 6313), test                        building’s rooftop.                                    respectively.
                                                procedures (42 U.S.C. 6314), labeling                      The initial Federal energy                             When setting standards for the
                                                provisions (42 U.S.C. 6315), and the                    conservation standards for CWAFs were                  equipment addressed by this document,
                                                authority to require information and                    added to EPCA by the Energy Policy Act                 EPCA prescribes that in deciding
                                                reports from manufacturers (42 U.S.C.                   of 1992 (EPACT 1992), Public Law 102–                  whether a proposed standard is
                                                6316).                                                  486 (Oct. 24, 1992). See 42 U.S.C.                     economically justified, DOE must
                                                   Section 342(a) of EPCA, which was                    6313(a)(4). These types of covered                     determine whether the benefits of the
                                                added as part of the Energy Policy Act                  equipment have a rated capacity (rated                 standard exceed its burdens. DOE must
                                                of 1992, Public Law 102–486 (October                    maximum input 4) greater than or equal                 make this determination after receiving
                                                24, 1992) (‘‘EPAct 1992’’), introduced                  to 225,000 Btu/h, can be gas-fired or oil-             comments on the proposed standard,
                                                new provisions regarding DOE’s                          fired, and are designed to heat                        and by considering, to the maximum
                                                authority to regulate certain commercial                commercial and industrial buildings. Id.               extent practicable, the following seven
                                                and industrial equipment. Among the                        Pursuant to section 342(a)(6) of EPCA,              statutory factors:
                                                equipment EPAct 1992 required DOE to                    DOE is to consider amending the energy                    1. The economic impact of the
                                                regulate were small and large air-cooled                efficiency standards for certain types of              standard on manufacturers and
                                                commercial package air conditioning                     commercial and industrial equipment                    consumers of products subject to the
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                                                and heating equipment, along with                       whenever ASHRAE amends the                             standard;
                                                                                                                                                                  2. The savings in operating costs
                                                  1 Part C was codified as Part A–1 of the                3 ‘‘Rated maximum input’’ means the maximum
                                                                                                                                                               throughout the estimated average life of
                                                corresponding portion of the U.S. Code.                 gas-burning capacity of a CWAF in Btus per hour,       the covered products in the type (or
                                                  2 All references to EPCA in this document refer       as specified by the manufacturer.
                                                to the statute as amended through the Energy              4 ‘‘Rated maximum input’’ means the maximum          class) compared to any increase in the
                                                Efficiency Improvement Act of 2015, Public Law          gas-burning capacity of a CWAF in Btus per hour,       price, initial charges, or maintenance
                                                114–11 (April 30, 2015).                                as specified by the manufacturer.                      expenses for the covered products


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                                                                         Federal Register / Vol. 81, No. 10 / Friday, January 15, 2016 / Proposed Rules                                                    2113

                                                which are likely to result from the                     products within such type (or class) do                recommendation and based on the
                                                standard;                                               not have and such feature justifies a                  rulemaking record relating to the direct
                                                   3. The total projected amount of                     higher or lower standard. See 42 U.S.C.                final rule, the Secretary determines that
                                                energy savings likely to result directly                6295(q)(1). In determining whether a                   such adverse public comments or
                                                from the standard;                                      performance-related feature justifies a                alternative joint recommendation may
                                                   4. Any lessening of the utility or the               different standard for a group of                      provide a reasonable basis for
                                                performance of the covered products                     products, DOE must consider such                       withdrawing the direct final rule under
                                                likely to result from the standard;                     factors as the utility to the customer of              subsection 42 U.S.C. 6295(o),
                                                   5. The impact of any lessening of                    such a feature and other factors DOE                   6313(a)(6)(B), or any other applicable
                                                competition, as determined in writing                   deems appropriate. Id. Any rule                        law. On withdrawal of a direct final
                                                by the Attorney General, that is likely to              prescribing such a standard must                       rule, the Secretary shall proceed with
                                                result from the standard;                               include an explanation of the basis on                 the notice of proposed rulemaking
                                                   6. The need for national energy                      which such higher or lower level was                   published simultaneously with the
                                                conservation; and                                       established. See 42 U.S.C. 6295(q)(2).                 direct final rule and publish in the
                                                   7. Other factors the Secretary of                                                                           Federal Register the reasons why the
                                                                                                        With respect to the equipment
                                                Energy considers relevant. (42 U.S.C.                                                                          direct final rule was withdrawn. This
                                                                                                        addressed by this supplemental notice
                                                6313(a)(6)(B)(ii))                                                                                             direct final rule provision applies to the
                                                   With respect to the types of                         of proposed rulemaking (‘‘SNOPR’’),
                                                                                                        DOE notes that EPCA prescribes limits                  equipment at issue in this SNOPR. See
                                                equipment at issue in this document,                                                                           42 U.S.C. 6316(b)(1). In this instance,
                                                EPCA also contains what is known as an                  on the Agency’s ability to promulgate a
                                                                                                        standard if DOE has made a finding that                because DOE has already published
                                                ‘‘anti-backsliding’’ provision, which
                                                                                                        interested persons have established by a               NOPRs related to the amendment of
                                                prevents the Secretary from prescribing
                                                                                                        preponderance of the evidence that a                   standards both CUACs/CUHPs and
                                                any amended standard that either
                                                                                                        standard is likely to result in the                    CWAFs, see 79 FR 58948 (September 30,
                                                increases the maximum allowable
                                                                                                        unavailability of any product type (or                 2014) (CUAC/CUHP proposal) and 80
                                                energy use or decreases the minimum
                                                                                                        class) of performance characteristics                  FR 6182 (February 4, 2015), DOE is
                                                required energy efficiency of a covered
                                                                                                        that are substantially the same as those               publishing an SNOPR consistent with
                                                product. (42 U.S.C. 6313(a)(6)(B)(iii)(I))
                                                                                                        generally available in the United States               the direct final rule’s statutory
                                                Also, the Secretary may not prescribe an
                                                                                                        at the time of the finding. See 42 U.S.C.              requirements.
                                                amended or new standard if interested                                                                             Responding to comments received
                                                persons have established by a                           6313(B)(iii)(II).
                                                                                                           With particular regard to this                      from interested parties with respect to
                                                preponderance of the evidence that the                                                                         DOE’s proposals, on April 1, 2015, DOE
                                                standard is likely to result in the                     document, the Energy Independence
                                                                                                        and Security Act of 2007 (‘‘EISA 2007’’),              issued a Notice of Intent to Establish the
                                                unavailability in the United States of                                                                         Commercial Package Air Conditioners
                                                any covered product type (or class) of                  Public Law 110–140 (December 19,
                                                                                                        2007), amended EPCA, in relevant part,                 and Commercial Warm Air Furnaces
                                                performance characteristics (including                                                                         Working Group to Negotiate Potential
                                                reliability, features, sizes, capacities,               to grant DOE authority to issue a type
                                                                                                        of final rule (i.e., a ‘‘direct final rule’’)          Energy Conservation Standards for
                                                and volumes) that are substantially the                                                                        Commercial Package Air Conditioners
                                                same as those generally available in the                establishing an energy conservation
                                                                                                        standard for a product on receipt of a                 and Commercial Warm Air Furnaces. 80
                                                United States. (42 U.S.C.                                                                                      FR 17363. The CUAC/CUHP–CWAF
                                                6313(a)(6)(B)(iii)(II))(aa)                             statement that is submitted jointly by
                                                                                                        interested persons that are fairly                     Working Group (in context, ‘‘the
                                                   With respect to the equipment
                                                                                                        representative of relevant points of view              Working Group’’) was established under
                                                addressed by this document, DOE notes
                                                                                                        (including representatives of                          the Appliance Standards and
                                                that EPCA prescribes limits on the
                                                                                                        manufacturers of covered products,                     Rulemaking Federal Advisory
                                                Agency’s ability to promulgate a
                                                                                                        States, and efficiency advocates), as                  Committee (‘‘ASRAC’’) in accordance
                                                standard if DOE has made a finding that
                                                                                                        determined by the Secretary, and that                  with the Federal Advisory Committee
                                                interested persons have established by a
                                                                                                        contains recommendations with respect                  Act and the Negotiated Rulemaking Act
                                                preponderance of the evidence that a
                                                                                                        to an energy or water conservation                     with the purpose of discussing and, if
                                                standard is likely to result in the
                                                                                                        standard. If the Secretary determines                  possible, reaching consensus on a set of
                                                unavailability of any product type (or
                                                                                                        that the recommended standard                          energy conservation standards to
                                                class) of performance characteristics
                                                                                                        contained in the statement is in                       propose or finalize for CUACs, CUHPs
                                                that are substantially the same as those
                                                                                                        accordance with 42 U.S.C. 6295(o) or 42                and CWAFs. The Working Group was to
                                                generally available in the United States
                                                                                                        U.S.C. 6313(a)(6)(B), as applicable, the               consist of fairly representative parties
                                                at the time of the finding. See 42 U.S.C.
                                                                                                        Secretary may issue a final rule                       having a defined stake in the outcome
                                                6313(B)(iii)(II).
                                                   Additionally, EPCA generally                         establishing the recommended standard.                 of the proposed standards, and would
                                                specifies criteria to follow when                       A notice of proposed rulemaking                        consult, as appropriate, with a range of
                                                promulgating multiple energy                            (‘‘NOPR’’) that proposes an identical                  experts on technical issues.
                                                                                                                                                                  DOE received 17 nominations for
                                                conservation standards for covered                      energy efficiency standard is published
                                                                                                                                                               membership. Ultimately, the Working
                                                products based on different                             simultaneously with the direct final
                                                                                                                                                               Group consisted of 17 members,
                                                subcategories. In these cases, DOE must                 rule. A public comment period of at
                                                                                                                                                               including one member from ASRAC and
                                                specify a different standard level for a                least 110 days is provided. See 42 U.S.C.
                                                                                                                                                               one DOE representative.5 The Working
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                                                type or class of product that has the                   6295(p)(4). Not later than 120 days after
                                                same function or intended use if DOE                    the date on which a direct final rule                    5 The group members were John Cymbalsky (U.S.
                                                determines that products within such                    issued under this authority is published               Department of Energy), Marshall Hunt (Pacific Gas
                                                group: (A) Consume a different kind of                  in the Federal Register, the Secretary                 & Electric Company, San Diego Gas & Electric
                                                energy from that consumed by other                      shall withdraw the direct final rule if                Company, Southern California Edison, and
                                                                                                                                                               Southern California Gas Company), Andrew
                                                covered products within such type (or                   the Secretary receives 1 or more adverse               deLaski (Appliance Standards Awareness Project),
                                                class); or (B) have a capacity or other                 public comments relating to the direct                 Louis Starr (Northwest Energy Efficiency Alliance),
                                                performance-related feature which other                 final rule or any alternative joint                                                               Continued




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                                                2114                     Federal Register / Vol. 81, No. 10 / Friday, January 15, 2016 / Proposed Rules

                                                Group met six times (five times in-                     by a broad cross-section of interests,                 adverse comments that may provide a
                                                person and once by teleconference). The                 including the manufacturers of the                     reasonable basis for withdrawal and
                                                meetings were held on April 28, May                     subject equipment, trade associations                  withdraws the direct final rule, DOE
                                                11–12, May 20–21, June 1–2, June 9–10,                  representing these manufacturers and                   will consider those comments and any
                                                and June 15, 2015. As a result of these                 installation contractors, environmental                other comments received in determining
                                                efforts, the Working Group successfully                 and energy-efficiency advocacy                         how to proceed with this proposed rule.
                                                reached consensus on energy                             organizations, and electric utility                       For further background information
                                                conservation standards for CUACs,                       companies. The ASRAC Committee                         on these proposed standards and the
                                                CUHPs, and CWAFs. On June 15, 2015,                     approving the Working Group’s                          supporting analyses, please see the
                                                it submitted a Term Sheet to ASRAC                      recommendations included at least two                  direct final rule published elsewhere in
                                                outlining its recommendations, which                    members representing States—one                        this Federal Register. That document
                                                ASRAC subsequently adopted.6 See                        representing the National Association of               includes additional discussion of the
                                                http://www.regulations.gov/                             State Energy Officials (NASEO) and one                 EPCA requirements for promulgation of
                                                #!documentDetail;D=EERE-2013-BT-                        representing the State of California.8 By              energy conservation standards; the
                                                STD-0007-0093.                                          its plain terms, the statute contemplates              current standards for CUACs/CUHPs
                                                   DOE has determined that the                          that the Secretary will exercise discetion             and CWAFs; the history of the standards
                                                statement containing recommendations                    to determine whether a given statement                 rulemakings establishing such
                                                with respect to energy conservation                     is ‘‘submitted jointly by interested                   standards; and information on the test
                                                standards for CUACs, CUHPs and                          persons that are fairly representative of              procedures used to measure the energy
                                                CWAFs was submitted jointly by                          relevant points of view (including                     efficiency of CUACs/CUHPs and
                                                interested persons that are fairly                      representatives of manufacturers of                    CWAFs. The document also contains an
                                                representative of relevant points of                    covered products, States, and efficiency               in-depth discussion of the analyses
                                                view, in accordance with 42 U.S.C.                      advocates).’’ In this case, given the                  conducted in support of this
                                                6295(p)(4)(A) and 6313(a)(6)(B).7 In                    broad range of persons participating in                rulemaking, the methodologies DOE
                                                reaching this determination, DOE took                   the process that led to the submission—                used in conducting those analyses, and
                                                into consideration the fact that the                    in the Working Group and in ASRAC—                     the analytical results.
                                                Working Group, in conjunction with                      and given the breadth of perspectives                  II. Proposed Standards
                                                ASRAC members who approved the                          expressed in that process, DOE has
                                                recommendations, consisted of                           determined that the statement it                          When considering more stringent
                                                representatives of manufacturers of                     received meets this criterion.                         standards for the equipment at issue,
                                                covered products, States, and efficiency                   Pursuant to 42 U.S.C. 6295(p)(4), the               DOE must determine, supported by
                                                advocates—all of which are groups                       Secretary must also determine whether                  clear and convincing evidence that
                                                specifically identified by Congress as                  a jointly-submitted recommendation for                 adopting those standards would result
                                                relevant parties to any consensus                       an energy or water conservation                        in the significant additional
                                                recommendation. (42 U.S.C.                              standard satisfies 42 U.S.C. 6295(o) or                conservation of energy and be
                                                6295(p)(4)(A) As delineated above, the                  42 U.S.C. 6313(a)(6)(B), as applicable. In             technologically feasible and
                                                Term Sheet was signed and submitted                     making this determination, DOE has                     economically justified. See 42 U.S.C.
                                                                                                        conducted an analysis to evaluate                      6313(a)(6)(A)(ii). In determining
                                                Meg Waltner (Natural Resources Defense Council),        whether the potential energy                           whether a standard is economically
                                                Jill Hootman (Ingersoll Rand/Trane), John Hurst         conservation standards under                           justified, the Secretary must determine
                                                (Lennox), Karen Meyers (Rheem Manufacturing                                                                    whether the benefits of the standard
                                                Company), Charlie McCrudden (Air Conditioning           consideration would meet these
                                                Contractors of America), Harvey Sachs (American         requirements. This evaluation is similar               exceed its burdens by, to the greatest
                                                Council for an Energy Efficient Economy), Paul          to the comprehensive approach that                     extent practicable, considering the
                                                Doppel (Mitsubishi Electric), Robert Whitwell
                                                                                                        DOE typically conducts whenever it                     seven statutory factors discussed
                                                (United Technologies Corporation), Michael Shows                                                               previously. (42 U.S.C.
                                                (Underwriters Laboratories), Russell Tharp              considers potential energy conservation
                                                (Goodman Manufacturing), Sami Zendah (Emerson           standards for a given type of product or               6313(a)(6)(B)(ii)(I)–(VII))
                                                Climate Technologies), Mark Tezigni (Sheet Metal        equipment. DOE applies the same                           DOE considered the impacts of
                                                and Air Conditioning Contractors National
                                                                                                        principles to any consensus                            amended standards for CUACs/CUHPs
                                                Association, Inc.), Nick Mislak (Air-Conditioning,                                                             and CWAFs at each TSL, beginning with
                                                Heating, and Refrigeration Institute).                  recommendations it may receive to
                                                   6 Available at http://www.regulations.gov/           satisfy its statutory obligation to ensure             the maximum technologically feasible
                                                #!documentDetail;D=EERE-2013-BT-STD-0007-               that any energy conservation standard                  level, to determine whether that level
                                                0093. The following individuals served as members
                                                                                                        that it adopts achieves the maximum                    would be economically justified. Where
                                                of ASRAC that received and approved the Term                                                                   the max-tech level was not justified,
                                                Sheet: Co-Chair John Mandyck (Carrier/United            improvement in energy efficiency that is
                                                Technologies Corporation), Co-Chair Andrew              technologically feasible and                           DOE then considered the next most
                                                deLaski (Appliance Standards Awareness Project),        economically justified and will result in              efficient level and undertook the same
                                                Ashley Armstrong (U.S. Department of Energy),
                                                                                                        the significant conservation of energy.                evaluation until it reached the highest
                                                John Caskey (National Electrical Manufacturers                                                                 efficiency level that is both
                                                Association), Jennifer Cleary (Association of Home      Upon review, the Secretary determined
                                                Appliance Manufacturers), Thomas Eckman                 that the Term Sheet submitted in the                   technologically feasible and
                                                (Northwest Power and Conservation Council),             instant rulemaking comports with the                   economically justified and saves a
                                                Charles Hon (True Manufacturing Company), Dr.
                                                                                                        standard-setting criteria set forth under              significant amount of energy.
                                                David Hungerford (California Energy Commission),                                                                  To aid the reader as DOE discusses
                                                Dr. Diane Jakobs (Rheem Manufacturing Company),         42 U.S.C. 6313(a)(6)(B). As a result, DOE
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                                                                                                                                                               the benefits and/or burdens of each TSL,
                                                Kelley Kline (General Electric, Appliances),            published a direct final rule establishing
                                                Deborah Miller (National Association of State                                                                  tables in this section present a summary
                                                                                                        energy conservation standards for
                                                Energy Officials), and Scott Blake Harris (Harris,                                                             of the results of DOE’s quantitative
                                                                                                        CUACs/CUHPs and CWAFs elsewhere
                                                Wiltshire & Grannis, LLP).                                                                                     analysis for each TSL. In addition to the
                                                   7 See 42 U.S.C. 6313(b) (applying 42 U.S.C.          in this Federal Register. If DOE receives
                                                                                                                                                               quantitative results presented in the
                                                6295(p)(4) to energy conservation standard
                                                rulemakings involving a variety of industrial             8 These individuals were Deborah E. Miller           tables, DOE also considers other
                                                equipment, including CUACs, CUHPs, and                  (NASEO) and David Hungerford (California Energy        burdens and benefits that affect
                                                CWAFs).                                                 Commission).                                           economic justification.


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                                                                                   Federal Register / Vol. 81, No. 10 / Friday, January 15, 2016 / Proposed Rules                                                                                                                        2115

                                                A. Benefits and Burdens of TSLs                                                each TSL for CUACs and CUHPs. The                                                      levels contained in each TSL are
                                                Considered for Small, Large, and Very                                          national impacts are measured over the                                                 described in section V.A of the direct
                                                Large Air-Cooled Commercial Package                                            lifetime of CUACs and CUHPs                                                            final rule.
                                                Air Conditioning and Heating                                                   purchased in the 2018–2048 period. The
                                                Equipment                                                                      energy savings, emissions reductions,
                                                  Table II.1 and Table II.2 summarize                                          and value of emissions reductions refer
                                                the quantitative impacts estimated for                                         to full-fuel-cycle results. The efficiency

                                                       TABLE II.1—SUMMARY OF ANALYTICAL RESULTS FOR SMALL, LARGE, AND VERY LARGE AIR-COOLED COMMERCIAL
                                                                       PACKAGE AIR CONDITIONING AND HEATING EQUIPMENT: NATIONAL IMPACTS
                                                                                                                                                                    Recommended
                                                         Category                        TSL 1                     TSL 2                       TSL 2.5                                               TSL 3                      TSL 3.5                    TSL 4                       TSL 5
                                                                                                                                                                        TSL*

                                                                                                                                          National FFC Energy Savings (quads)

                                                                                   5.3 ..................    9.8 ..................      13.9 ................      14.8 ................      15.9 ................      16.4 ................      19.7 ................      23.4

                                                                                                                                        NPV of Consumer Benefits (2014$ billion)

                                                3% discount rate ..........        18.0 ................     32.8 ................       47.5 ................      50.0 ................      53.7 ................      55.3 ................      64.1 ................      68.2
                                                7% discount rate ..........        5.4 ..................    10.1 ................       15.1 ................      15.2 ................      16.8 ................      17.1 ................      19.2 ................      18.8

                                                                                                                          Cumulative Emissions Reduction (Total FFC Emissions)

                                                CO2 (million metric                314 .................     578 .................       824 .................      873 .................      943 .................      973 .................      1,167 ..............       1,383
                                                  tons).
                                                SO2 (thousand tons) ....           164 .................     303 .................       431 .................      454 .................      493 .................      508 .................      610 .................      722
                                                NOX (thousand tons) ...            586 .................     1,080 ..............        1,538 ..............       1,634 ..............       1,759 ..............       1,815 ..............       2,180 ..............       2,584
                                                Hg (tons) ......................   0.61 ................     1.12 ................       1.59 ................      1.68 ................      1.82 ................      1.88 ................      2.25 ................      2.66
                                                CH4 (thousand tons) ....           1,401 ..............      2,582 ..............        3,677 ..............       3,917 ..............       4,208 ..............       4,342 ..............       5,215 ..............       6,185
                                                N2O (thousand tons) ....           3.45 ................     6.35 ................       9.05 ................      9.54 ................      10.34 ..............       10.67 ..............       12.80 ..............       15.16
                                                CH4 (million tons                  39.2 ................     72.3 ................       103.0 ..............       109.7 ..............       117.8 ..............       121.6 ..............       146.0 ..............       173.2
                                                  CO2eq **).
                                                N2O (thousand tons                 913 .................     1,682 ..............        2,397 ..............       2,528 ..............       2,741 ..............       2,828 ..............       3,392 ..............       4,017
                                                  CO2eq **).

                                                                                                                             Value of Emissions Reduction (Total FFC Emissions)

                                                CO2 (2014$ billion)† ....          1.845 to 27.53            3.409 to 50.82              4.870 to 72.52             5.046 to 75.94             5.556 to 82.83             5.729 to 85.44             6.860 to 102.4             8.127 to 121.4
                                                NOX—3% discount rate               1,828 ..............      3,376 ..............        4,820 ..............       5,038 ..............       5,503 ..............       5,677 ..............       6,804 ..............       8,067
                                                 (2014$ million).
                                                NOX—7% discount rate               606 .................     1,121 ..............        1,604 ..............       1,614 ..............       1,826 ..............       1,881 ..............       2,245 ..............       2,652
                                                 (2014$ million).
                                                   * For the Recommended TSL, the NES is forecasted over the lifetime of equipment sold from 2018–2048. For the other TSLs, the NES is forecasted over the life-
                                                time of equipment sold from 2019–2048.
                                                   ** CO2eq is the quantity of CO2 that would have the same global warming potential (GWP).
                                                   † Range of the economic value of CO2 reductions is based on estimates of the global benefit of reduced CO2 emissions.

                                                       TABLE II.2—SUMMARY OF ANALYTICAL RESULTS FOR SMALL, LARGE, AND VERY LARGE AIR-COOLED COMMERCIAL
                                                              PACKAGE AIR CONDITIONING AND HEATING EQUIPMENT: MANUFACTURER AND CONSUMER IMPACTS
                                                                                                                                                                    Recommended
                                                         Category                        TSL 1                     TSL 2                       TSL 2.5                                               TSL 3                      TSL 3.5                    TSL 4                       TSL 5
                                                                                                                                                                        TSL

                                                                                                                                                       Manufacturer Impacts

                                                Industry NPV (2014$                1,431.0 to                1,421.9 to                  1,300.5 to                 1,204.1 to                 1,197.4 to                 1,138.2 to                 1,025.0 to                 762.7 to
                                                  million) (No-new-                  1,705.5.                  1,758.6.                    1,721.1.                   1,606.1.                   1,697.0.                   1,670.3.                   1,660.9.                   1,737.6
                                                  standards case INPV
                                                  = 1,638.2).
                                                Industry NPV (%                    (6.5) to 3.7 .....        (13.5) to 6.9 ...           (20.9) to 4.7 ...          (26.8) to (2.3)            (27.2) to 3.2 ...          (30.8) to 1.6 ...          (37.7) to 1.0 ...          (53.6) to 5.7
                                                  change).

                                                                                                                            Commercial Consumer Average LCC Savings (2014$)

                                                Small CUACs ...............        (210) ...............     870 .................       3,777     ..............   4,233 ..............       4,233 ..............       3,517 ..............       3,035 ..............       5,326
                                                Large CUACs ...............        3,997 ..............      3,728 ..............        7,991     ..............   10,135 ............        10,135 ............        12,266 ............        16,803 ............        12,900
                                                Very Large CUACs ......            1,547 ..............      4,777 ..............        8,610     ..............   8,610 ..............       8,881 ..............       8,881 ..............       18,386 ............        18,338
                                                Average * ......................   1,045 ..............      1,971 ..............        5,340     ..............   6,220 ..............       6,238 ..............       6,396 ..............       8,370 ..............       8,697

                                                                                                                                            Commercial Consumer PBP (years)

                                                Small CUACs ...............        14.9 ................     8.5   ..................    4.9   ..................   4.9   ..................   4.9   ..................   2.6   ..................   2.5   ..................   4.6
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                                                Large CUACs ...............        1.3 ..................    2.4   ..................    2.4   ..................   2.6   ..................   2.6   ..................   2.6   ..................   2.5   ..................   4.6
                                                Very Large CUACs ......            5.8 ..................    7.0   ..................    6.2   ..................   6.2   ..................   7.2   ..................   7.2   ..................   5.6   ..................   6.3
                                                Average * ......................   10.6 ................     6.7   ..................    4.3   ..................   4.4   ..................   4.5   ..................   3.0   ..................   2.8   ..................   4.8

                                                                                                                                        % of Consumers that Experience Net Cost

                                                Small CUACs ...............        48 ...................    25 ...................      5 .....................    5 .....................    5 .....................    13 ...................     25 ...................     16
                                                Large CUACs ...............        0 .....................   10 ...................      5 .....................    2 .....................    2 .....................    1 .....................    1 .....................    11
                                                Very Large CUACs ......            7 .....................   13 ...................      7 .....................    7 .....................    23 ...................     23 ...................     3 .....................    6




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                                                2116                               Federal Register / Vol. 81, No. 10 / Friday, January 15, 2016 / Proposed Rules

                                                       TABLE II.2—SUMMARY OF ANALYTICAL RESULTS FOR SMALL, LARGE, AND VERY LARGE AIR-COOLED COMMERCIAL
                                                        PACKAGE AIR CONDITIONING AND HEATING EQUIPMENT: MANUFACTURER AND CONSUMER IMPACTS—Continued
                                                                                                                                                               Recommended
                                                         Category                        TSL 1                    TSL 2                   TSL 2.5                                              TSL 3                    TSL 3.5                   TSL 4                   TSL 5
                                                                                                                                                                   TSL

                                                Average * ......................   32 ...................   20 ...................   5 .....................   4 .....................   6 .....................   11 ...................   16 ...................   14
                                                  Parentheses indicate negative (¥) values.
                                                  * Weighted by shares of each equipment class in total projected shipments in the year of compliance.


                                                   DOE first considered TSL 5, which                                         differentiation in the CUAC/CUHP                                                  level. DOE projects that 96.0 percent of
                                                represents the max-tech efficiency                                           market. By commoditizing a key                                                    current equipment listings would
                                                levels. TSL 5 would save 23.4 quads of                                       differentiating feature, a standard set at                                        require redesign at this level to meet
                                                energy, an amount DOE considers                                              max-tech would likely accelerate                                                  this standard level today.
                                                significant. Under TSL 5, the NPV of                                         consolidaton in the industry.                                                        The Secretary tentatively concludes
                                                consumer benefit would be $18.8 billion                                         The Secretary tentatively concludes                                            that at TSL 4 for CUACs and CUHPs, the
                                                using a discount rate of 7-percent, and                                      that at TSL 5 for CUACs and CUHPs, the                                            benefits of energy savings, positive NPV
                                                $68.2 billion using a discount rate of 3-                                    benefits of energy savings, positive NPV                                          of consumer benefits, emission
                                                percent.                                                                     of consumer benefits, emission                                                    reductions, and the estimated monetary
                                                   The cumulative emissions reductions                                       reductions, and the estimated monetary                                            value of the emissions reductions would
                                                at TSL 5 are 1,383 million Mt of CO2,                                        value of the emissions reductions would                                           be outweighed by the economic burden
                                                722 thousand tons of SO2, 2,584                                              be outweighed by the economic burden                                              on some consumers, and the impacts on
                                                thousand tons of NOX, 2.66 tons of Hg,                                       on some consumers, and the impacts on                                             manufacturers, including the conversion
                                                6,185 thousand tons of CH4, and 15.16                                        manufacturers, including the conversion                                           costs and profit margin impacts that
                                                thousand tons of N2O. The estimated                                          costs and profit margin impacts that                                              could result in a reduction in INPV.
                                                monetary value of the CO2 emissions                                          could result in a large reduction in                                              Consequently, the Secretary has
                                                reduction at TSL 5 ranges from $8.127                                        INPV. Consequently, the Secretary has                                             tentatively concluded that TSL 4 is not
                                                billion to $121.4 billion.                                                   tentatively concluded that TSL 5 is not                                           economically justified.
                                                   At TSL 5, the average LCC impact is                                       economically justified.                                                              DOE then considered TSL 3.5. TSL
                                                a savings of $5,326 for small CUACs,                                            DOE then considered TSL 4. TSL 4                                               3.5 would save 16.4 quads of energy, an
                                                $12,900 for large CUACs, and $18,338                                         would save 19.7 quads of energy, an                                               amount DOE considers significant.
                                                for very large CUACs. The simple                                             amount DOE considers significant.                                                 Under TSL 3.5, the NPV of consumer
                                                payback period is 4.6 years for small                                        Under TSL 4, the NPV of consumer                                                  benefit would be $17.1 billion using a
                                                CUACs, 4.6 years for large CUACs, and                                        benefit would be $19.2 billion using a                                            discount rate of 7-percent, and $55.3
                                                6.3 years for very large CUACs. The                                          discount rate of 7-percent, and $64.1                                             billion using a discount rate of 3-
                                                fraction of consumers experiencing a net                                     billion using a discount rate of 3-                                               percent.
                                                LCC cost is 16 percent for small CUACs,                                      percent.                                                                             The cumulative emissions reductions
                                                11 percent for large CUACs, and 6                                               The cumulative emissions reductions                                            at TSL 3.5 are 973 million Mt of CO2,
                                                percent for very large CUACs. Although                                       at TSL 4 are 1,167 million Mt of CO2,                                             508 thousand tons of SO2, 1,815
                                                DOE did not estimate consumer impacts                                        610 thousand tons of SO2, 2,180                                                   thousand tons of NOX, 1.88 tons of Hg,
                                                for CUHPs, the results would be very                                         thousand tons of NOX, 2.25 tons of Hg,                                            4,342 thousand tons of CH4, and 10.67
                                                similar to those for CUACs for the                                           5,215 thousand tons of CH4, and 12.80                                             thousand tons of N2O. The estimated
                                                reasons stated in section V.B.1 of the                                       thousand tons of N2O. The estimated                                               monetary value of the CO2 emissions
                                                direct final rule.                                                           monetary value of the CO2 emissions                                               reduction at TSL 3.5 ranges from $5.729
                                                   At TSL 5, the projected change in                                         reduction at TSL 4 ranges from $6.860                                             billion to $85.44 billion.
                                                INPV ranges from a decrease of $881.9                                        billion to $102.4 billion.                                                           At TSL 3.5, the average LCC impact is
                                                million to an increase of $93.1 million,                                        At TSL 4, the average LCC impact is                                            a savings of $3,517 for small CUACs,
                                                which corresponds to a change of ¥53.7                                       a savings of $3,035 for small CUACs,                                              $12,266 for large CUACs, and $8,881 for
                                                percent and 5.7 percent, respectively.                                       $16,803 for large CUACs, and $18,386                                              very large CUACs. The simple payback
                                                The industry is expected to incur $591.0                                     for very large CUACs. The simple                                                  period is 2.6 years for small CUACs, 2.6
                                                million in total conversion costs at this                                    payback period is 2.5 years for small                                             years for large CUACs, and 7.2 years for
                                                level. DOE projects that 98.7 percent of                                     CUACs, 2.5 years for large CUACs, and                                             very large CUACs. The fraction of
                                                current equipment listings would                                             5.6 years for very large CUACs. The                                               consumers experiencing a net LCC cost
                                                require redesign at this level to meet                                       fraction of consumers experiencing a net                                          is 13 percent for small CUACs, 1 percent
                                                this standard level today. At this level,                                    LCC cost is 25 percent for small CUACs,                                           for large CUAC, and 23 percent for very
                                                DOE recognizes that manufacturers                                            1 percent for large CUACs, and 3                                                  large CUACs. Although DOE did not
                                                could face technical resource                                                percent for very large CUACs. Although                                            estimate consumer impacts for CUHPs,
                                                constraints. Manufacturers stated they                                       DOE did not estimate consumer impacts                                             the results would be very similar to
                                                would require additional engineering                                         for CUHPs, the results would be very                                              those for CUACs for the reasons stated
                                                expertise and additional test laboratory                                     similar to those for CUACs for the                                                in section V.B.1 of the direct final rule.
                                                capacity. It is unclear whether                                              reasons stated in section V.B.1 of the                                               At TSL 3.5, the projected change in
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                                                manufacturers could complete the                                             direct final rule.                                                                INPV ranges from a decrease of $506.4
                                                hiring of the necessary technical                                               At TSL 4, the projected change in                                              million to an increase of $25.7 million,
                                                expertise and construction of the                                            INPV ranges from a decrease of $619.6                                             which corresponds to a change of ¥30.8
                                                necessary test facilities in time to allow                                   million to an increase of $16.3 million,                                          percent and 1.6 percent, respectively.
                                                for the redesign of all equipment to meet                                    which corresponds to a change of ¥37.7                                            The industry is expected to incur $489.2
                                                max-tech by 2019. Furthermore, DOE                                           percent and 1.0 percent, respectively.                                            million in total conversion costs at this
                                                recognizes that a standard set at max-                                       The industry is expected to incur $538.8                                          level. DOE projects that 93.5 percent of
                                                tech could greatly limit equipment                                           million in total conversion costs at this                                         current equipment listings would


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                                                                         Federal Register / Vol. 81, No. 10 / Friday, January 15, 2016 / Proposed Rules                                            2117

                                                require redesign at this level to meet                  costs and profit margin impacts that                   decrease of $440.4 million to a decrease
                                                this standard level today.                              could result in a large reduction in                   of $38.5 million, which corresponds to
                                                   The Secretary tentatively concludes                  INPV. Consequently, the Secretary has                  a change of ¥26.8 percent and ¥2.3
                                                that at TSL 3.5 for CUACs and CUHPs,                    tentatively concluded that TSL 3 is not                percent, respectively. The industry is
                                                the benefits of energy savings, positive                economically justified.                                expected to incur $520.8 million in total
                                                NPV of consumer benefits, emission                         DOE then considered the                             conversion costs at this level. However,
                                                reductions, and the estimated monetary                  Recommended TSL, which reflects the                    the industry members of the Working
                                                value of the emissions reductions would                 standard levels recommended by the                     Group noted that aligning the
                                                be outweighed by the economic burden                    Working Group. The Recommended                         compliance dates for the CUAC/CUHP
                                                on some consumers, and the impacts on                   TSL would save 14.8 quads of energy,                   and CWAF standards in the manner
                                                manufacturers, including the conversion                 an amount DOE considers significant.                   recommended would allow
                                                costs and profit margin impacts that                    Under the Recommended TSL, the NPV                     manufacturers to coordinate their
                                                could result in a reduction in INPV.                    of consumer benefit would be $15.2                     redesign and testing expenses for these
                                                Consequently, the Secretary has                         billion using a discount rate of 7-                    equipment. (CUAC: AHRI and ACEEE,
                                                tentatively concluded that TSL 3.5 is                   percent, and $50.0 billion using a                     No. 80 at p. 1). With this coordination,
                                                not economically justified.                             discount rate of 3-percent.                            manufacturers explained that there
                                                   DOE then considered TSL 3. TSL 3                        The cumulative emissions reductions
                                                                                                                                                               would be a reduction in the total
                                                would save 15.9 quads of energy, an                     at the Recommended TSL are 873
                                                                                                                                                               conversion costs associated with the
                                                amount DOE considers significant.                       million Mt of CO2, 454 thousand tons of
                                                                                                                                                               direct final rule. The resulting synergies
                                                Under TSL 3, the NPV of consumer                        SO2, 1,634 thousand tons of NOX, 1.68
                                                                                                                                                               from aligning the CUAC/CUHP and
                                                benefit would be $16.8 billion using a                  tons of Hg, 3,917 thousand tons of CH4,
                                                                                                                                                               CWAF compliance dates would produce
                                                discount rate of 7-percent, and $53.7                   and 9.54 thousand tons of N2O. The
                                                                                                        estimated monetary value of the CO2                    INPV impacts that are less severe than
                                                billion using a discount rate of 3-                                                                            the forecasted INPV range of ¥26.8
                                                percent.                                                emissions reduction at the
                                                                                                        Recommended TSL ranges from $5.046                     percent to ¥2.3 percent.
                                                   The cumulative emissions reductions
                                                                                                        billion to $75.94 billion.                                After considering the analysis and
                                                at TSL 3 are 943 million Mt of CO2, 493
                                                                                                           At the Recommended TSL, the                         weighing the benefits and burdens, DOE
                                                thousand tons of SO2, 1,759 thousand
                                                                                                        average LCC impact is a savings of                     has tentatively determined that the
                                                tons of NOX, 1.82 tons of Hg, 4,208
                                                                                                        $4,233 for small CUACs, $10,135 for                    recommended standards are in
                                                thousand tons of CH4, and 10.34
                                                                                                        large CUACs, and $8,610 for very large                 accordance with 42 U.S.C. 6313(a)(6)(B),
                                                thousand tons of N2O. The estimated
                                                                                                        CUACs. The simple payback period is                    which contains provisions for adopting
                                                monetary value of the CO2 emissions
                                                                                                        4.9 years for small CUACs, 2.6 years for               a uniform national standard more
                                                reduction at TSL 3 ranges from $5.556
                                                                                                        large CUACs, and 6.2 years for very                    stringent than the amended ASHRAE
                                                billion to $82.83 billion.
                                                                                                        large CUACs. The fraction of consumers                 Standard 90.1 for the equipment
                                                   At TSL 3, the average LCC impact is
                                                                                                        experiencing a net LCC cost is 5 percent               considered in this document.
                                                a savings of $4,233 for small CUACs,                    for small CUACs, 2 percent for large
                                                $10,135 for large CUACs, and $8,881 for                                                                        Specifically, the Secretary has
                                                                                                        CUACs, and 7 percent for very large                    tentatively determined, supported by
                                                very large CUACs. The simple payback                    CUACs. Although DOE did not estimate
                                                period is 4.9 years for small CUACs, 2.6                                                                       clear and convincing evidence that such
                                                                                                        consumer impacts for CUHPs, the                        adoption would result in the significant
                                                years for large CUACs, and 7.2 years for                results would be very similar to those
                                                very large CUACs. The fraction of                                                                              additional conservation of energy and is
                                                                                                        for CUACs for the reasons stated in                    technologically feasible and
                                                consumers experiencing a net LCC cost                   section V.B.1 of the direct final rule.
                                                is 5 percent for small CUACs, 2 percent                                                                        economically justified. In determining
                                                                                                           The Recommended TSL, as presented                   whether the recommended standards
                                                for large CUAC, and 23 percent for very                 by the Working Group and approved by
                                                large CUACs. Although DOE did not                                                                              are economically justified, the Secretary
                                                                                                        ASRAC, aligns the effective dates of the               has tentatively determined that the
                                                estimate consumer impacts for CUHPs,                    CUAC/CUHP and CWAF rulemakings.
                                                the results would be very similar to                                                                           benefits of the recommended standards
                                                                                                        That approach adopts the ASHRAE                        exceed the burdens. Namely, the
                                                those for CUACs for the reasons stated                  90.1–2013 efficiency levels in 2018 and
                                                in section V.B.1 of the direct final rule.                                                                     Secretary has tentatively concluded that
                                                                                                        a higher level in in 2023 as                           under the recommended standards for
                                                   At TSL 3, the projected change in                    recommended by the Working Group.
                                                INPV ranges from a decrease of $447.2                                                                          CUACs and CUHPs, the benefits of
                                                                                                        DOE anticipates that aligning the
                                                million to an increase of $52.4 million,                                                                       energy savings, positive NPV of
                                                                                                        effective dates will reduce total
                                                which corresponds to a change of ¥27.2                                                                         consumer benefits, emission reductions,
                                                                                                        conversion costs and cumulative
                                                percent and 3.2 percent, respectively.                                                                         the estimated monetary value of the
                                                                                                        regulatory burden, while also allowing
                                                DOE projects that 81.6 percent of                                                                              emissions reductions, and positive
                                                                                                        industry to gain clarity on potential
                                                current equipment listings would                                                                               average LCC savings would outweigh
                                                                                                        regulations that could affect refrigerant
                                                require redesign at this level to meet                                                                         the negative impacts on some
                                                                                                        availability before the higher appliance
                                                this standard level today.                                                                                     consumers and on manufacturers,
                                                                                                        standard takes effect in 2023. DOE
                                                   The Secretary tentatively concludes                                                                         including the conversion costs that
                                                                                                        projects that 31.5 percent of current
                                                that at TSL 3 for CUACs and CUHPs, the                                                                         could result in a reduction in INPV for
                                                                                                        equipment listings would require
                                                benefits of energy savings, positive NPV                redesign at this level to meet the 2018                manufacturers.
                                                of consumer benefits, emission                          standard level, while 79.6 percent of                     The proposed amended energy
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                                                reductions, and the estimated monetary                  current equipment listings would                       conservation standards for CUACs and
                                                value of the emissions reductions would                 require redesign at this level to meet the             CUHPs, which prescribe the minimum
                                                be outweighed by the economic burden                    2023 standard level.                                   allowable IEER and, for commercial
                                                on some consumers, and the impacts on                      At the Recommended TSL, the                         unitary heat pumps, COP, are shown in
                                                manufacturers, including the conversion                 projected change in INPV ranges from a                 Table II.3.




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                                                2118                     Federal Register / Vol. 81, No. 10 / Friday, January 15, 2016 / Proposed Rules

                                                      TABLE II.3—PROPOSED ENERGY CONSERVATION STANDARDS FOR SMALL, LARGE, AND VERY LARGE AIR-COOLED
                                                                        COMMERCIAL PACKAGE AIR CONDITIONING AND HEATING EQUIPMENT
                                                                                                                                                                                   Proposed en-
                                                                                                                                                                                     ergy con-      Compliance
                                                                             Equipment type                                                            Heating type                  servation        date
                                                                                                                                                                                     standard

                                                Small Commercial Packaged AC and HP (Air-Cooled)—≥65,000                        AC .....   Electric Resistance Heating or No       12.9 IEER ....   January   1,
                                                 Btu/h and <135,000 Btu/h Cooling Capacity.                                                  Heating.                              14.8 IEER ....     2018.
                                                                                                                                                                                                    January   1,
                                                                                                                                                                                                      2023.
                                                                                                                                           All Other Types of Heating ..........   12.7 IEER ...    January   1,
                                                                                                                                                                                   14.6 IEER ....     2018.
                                                                                                                                                                                                    January   1,
                                                                                                                                                                                                      2023.
                                                                                                                                HP .....   Electric Resistance Heating or No       12.2 IEER ...    January   1,
                                                                                                                                             Heating.                              3.3 COP ......     2018.
                                                                                                                                                                                   14.1 IEER ....
                                                                                                                                                                                   3.4 COP ......   January 1,
                                                                                                                                                                                                      2023.
                                                                                                                                           All Other Types of Heating ..........   12.0 IEER ...    January 1,
                                                                                                                                                                                   3.3 COP ......     2018.
                                                                                                                                                                                   13.9 IEER ....
                                                                                                                                                                                   3.4 COP ......   January   1,
                                                                                                                                                                                                      2023.
                                                Large Commercial Packaged AC and HP (Air-Cooled)—≥135,000                       AC .....   Electric Resistance Heating or No       12.4 IEER ....   January   1,
                                                  Btu/h and <240,000 Btu/h Cooling Capacity.                                                 Heating.                              14.2 IEER ....     2018.
                                                                                                                                                                                                    January   1,
                                                                                                                                                                                                      2023.
                                                                                                                                           All Other Types of Heating ..........   12.2 IEER ...    January   1,
                                                                                                                                                                                   14.0 IEER ....     2018.
                                                                                                                                                                                                    January   1,
                                                                                                                                                                                                      2023.
                                                                                                                                HP .....   Electric Resistance Heating or No       11.6 IEER ...    January   1,
                                                                                                                                             Heating.                              3.2 COP ......     2018.
                                                                                                                                                                                   13.5 IEER ....
                                                                                                                                                                                   3.3 COP ......   January 1,
                                                                                                                                                                                                      2023.
                                                                                                                                           All Other Types of Heating ..........   11.4 IEER ...    January 1,
                                                                                                                                                                                   3.2 COP ......     2018.
                                                                                                                                                                                   13.3 IEER ....
                                                                                                                                                                                   3.3 COP ......   January   1,
                                                                                                                                                                                                      2023.
                                                Very Large Commercial Packaged AC and HP (Air-Cooled)—                          AC .....   Electric Resistance Heating or No       11.6 IEER ....   January   1,
                                                  ≥240,000 Btu/h and <760,000 Btu/h Cooling Capacity.                                        Heating.                              13.2 IEER ....     2018.
                                                                                                                                                                                                    January   1,
                                                                                                                                                                                                      2023.
                                                                                                                                           All Other Types of Heating ..........   11.4 IEER ...    January   1,
                                                                                                                                                                                   13.0 IEER ....     2018.
                                                                                                                                                                                                    January   1,
                                                                                                                                                                                                      2023.
                                                                                                                                HP .....   Electric Resistance Heating or No       10.6 IEER ...    January   1,
                                                                                                                                             Heating.                              3.2 COP ......     2018.
                                                                                                                                                                                   12.5 IEER ....
                                                                                                                                                                                   3.2 COP ......   January 1,
                                                                                                                                                                                                      2023.
                                                                                                                                           All Other Types of Heating ..........   10.4 IEER ...    January 1,
                                                                                                                                                                                   3.2 COP ......     2018.
                                                                                                                                                                                   12.3 IEER ....
                                                                                                                                                                                   3.2 COP ......   January 1,
                                                                                                                                                                                                      2023.
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                                                                                  Federal Register / Vol. 81, No. 10 / Friday, January 15, 2016 / Proposed Rules                                                                                          2119

                                                  The benefits and costs of the proposed                                      Table II.4 shows the annualized                                            million in CO2 reductions, and $147.5
                                                standards—which mimic those found in                                        values for CUACs and CUHPs under the                                         million in reduced NOX emissions. In
                                                the direct final rule—can also be                                           Recommended TSL, expressed in 2014$.                                         this case, the net benefit amounts to
                                                expressed in terms of annualized values.                                    The results under the primary estimate                                       $2,859 million per year. Using a 3-
                                                The annualized net benefit is the sum                                       are as follows. Using a 7-percent                                            percent discount rate for all benefits and
                                                of: (1) The annualized national                                             discount rate for benefits and costs other                                   costs and the SCC series has a value of
                                                economic value (expressed in 2014$) of                                      than CO2 reduction, (for which DOE                                           $40.0/t in 2015, the estimated cost of the
                                                the benefits from operating equipment                                       used a 3-percent discount rate along                                         standards is $792 million per year in
                                                that meet the adopted standards                                             with the SCC series that has a value of                                      increased equipment costs, while the
                                                (consisting primarily of operating cost                                     $40.0/t in 2015),10 the estimated cost of                                    estimated annual benefits are $3,441
                                                savings from using less energy, minus                                       the standards in this rule is $708                                           million in reduced operating costs,
                                                increases in product purchase costs, and                                    million per year in increased equipment                                      $1,320 million in CO2 reductions, and
                                                (2) the annualized monetary value of the                                    costs, while the estimated annual                                            $267.3 million in reduced NOX
                                                benefits of CO2 and NOX emission                                            benefits are $2,099 million in reduced                                       emissions. In this case, the net benefit
                                                reductions.9                                                                equipment operating costs, $1,320                                            amounts to $4,237 million per year.

                                                  TABLE II.4—ANNUALIZED BENEFITS AND COSTS OF PROPOSED STANDARDS FOR SMALL, LARGE, AND VERY LARGE AIR-
                                                                   COOLED COMMERCIAL PACKAGE AIR CONDITIONING AND HEATING EQUIPMENT
                                                                                                                                                                                                                           Million 2014$/year
                                                                                                                                                                                  Discount rate                                   Low net             High net
                                                                                                                                                                                      (%)                     Primary             benefits            benefits
                                                                                                                                                                                                             estimate*            estimate            estimate

                                                                                                                                                         Benefits

                                                Consumer Operating Cost Savings ...........................................................................                       7 ..................    2,099 ...........    2,021 ...........    2,309
                                                                                                                                                                                  3 ..................    3,441 ...........    3,287 ...........    3,830
                                                CO2 Reduction Value ($12.2/t case)** ......................................................................                       5 ..................    357 ..............   355 ..............   361
                                                CO2 Reduction Value ($40.0/t case)** ......................................................................                       3 ..................    1,320 ...........    1,313 ...........    1,337
                                                CO2 Reduction Value ($62.3/t case)** ......................................................................                       2.5 ...............     1,973 ...........    1,964 ...........    1,999
                                                CO2 Reduction Value ($117/t case)** .......................................................................                       3 ..................    4,028 ...........    4,009 ...........    4,080
                                                NOX Reduction Value† ..............................................................................................               7 ..................    147.5 ...........    146.7 ...........    149.5
                                                                                                                                                                                  3 ..................    267.3 ...........    265.9 ...........    270.7
                                                Total Benefits†† .........................................................................................................        7% plus CO2             2,603 to             2,522 to             2,820 to
                                                                                                                                                                                    range.                  6,275.               6,176.               6,539
                                                                                                                                                                                  7 ..................    3,566 ...........    3,481 ...........    3,796
                                                                                                                                                                                  3 plus CO2              4,065 to             3,908 to             4,462 to
                                                                                                                                                                                    range.                  7,737.               7,561.               8,181
                                                                                                                                                                                  3 ..................    5,028 ...........    4,866 ...........    5,438

                                                                                                                                                           Costs

                                                Consumer Incremental Product Costs ......................................................................                         7 ..................    708 ..............   888 ..............   275
                                                                                                                                                                                  3 ..................    792 ..............   1028 ............    231

                                                                                                                                                      Net Benefits

                                                Total†† .......................................................................................................................   7% plus CO2             1,895 to             1,635 to             2,546 to
                                                                                                                                                                                    range.                  5,567.               5,288.               6,265
                                                                                                                                                                                  7 ..................    2,859 ...........    2,593 ...........    3,521
                                                                                                                                                                                  3 plus CO2              3,274 to             2,879 to             4,232 to
                                                                                                                                                                                    range.                  6,945.               6,533.               7,951
                                                                                                                                                                                  3 ..................    4,237 ...........    3,838 ...........    5,207
                                                   * This table presents the annualized costs and benefits associated with CUACs and CUHPs shipped in 2018–2048. These results include ben-
                                                efits to consumers which accrue after 2048 from the CUACs and CUHPs purchased in 2018–2048. The results account for the incremental vari-
                                                able and fixed costs incurred by manufacturers due to the standard, some of which may be incurred in preparation for the rule. The Primary, Low
                                                Benefits, and High Benefits estimates utilize projections of energy prices from the AEO 2015 Reference case, Low Economic Growth case, and
                                                High Economic Growth case, respectively. In addition, incremental product costs reflect a constant price trend in the Primary estimate, a slightly
                                                increasing price trend in the Low Benefits estimate, and a slightly decreasing price trend in the Low Benefits estimate. The methods used to
                                                project price trends are explained in section IV.D.1.
                                                   ** The CO2 values represent global monetized values of the SCC, in 2014$, in 2015 under several scenarios of the updated SCC values. The
                                                first three cases use the averages of SCC distributions calculated using 5%, 3%, and 2.5% discount rates, respectively. The fourth case rep-
                                                resents the 95th percentile of the SCC distribution calculated using a 3% discount rate. The SCC time series incorporate an escalation factor. †
                                                Total Benefits for both the 3% and 7% cases are derived using the series corresponding to the average SCC with 3-percent discount rate ($40.0/
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                                                t) case. In the rows labeled ‘‘7% plus CO2 range’’ and ‘‘3% plus CO2 range,’’ the operating cost and NOX benefits are calculated using the la-
                                                beled discount rate, and those values are added to the full range of CO2 values.

                                                  9 To convert the time-series of costs and benefits                        shipments occur (2020, 2030, etc.), and then                                 DOE then calculated the fixed annual payment over
                                                into annualized values, DOE calculated a present                            discounted the present value from each year to                               a 30-year period, starting in the compliance year
                                                value in 2014, the year used for discounting the                            2015. The calculation uses discount rates of 3- and                          that yields the same present value.
                                                NPV of total consumer costs and savings. For the                            7-percent for all costs and benefits except for the                            10 DOE used a 3-percent discount rate because the

                                                benefits, DOE calculated a present value associated                         value of CO2 reductions, for which DOE used case-                            SCC values for the series used in the calculation
                                                with each year’s shipments in the year in which the                         specific discount rates. Using the present value,                            were derived using a 3-percent discount rate.



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                                                2120                              Federal Register / Vol. 81, No. 10 / Friday, January 15, 2016 / Proposed Rules

                                                  † The $/ton values used for NOX are described in section IV.L.2 of the direct final rule. DOE estimated the monetized value of NOx emissions
                                                reductions using benefit per ton estimates from the Regulatory Impact Analysis titled, ‘‘Proposed Carbon Pollution Guidelines for Existing Power
                                                Plants and Emission Standards for Modified and Reconstructed Power Plants,’’ published in June 2014 by EPA’s Office of Air Quality Planning
                                                and Standards. (Available at: http://www3.epa.gov/ttnecas1/regdata/RIAs/111dproposalRIAfinal0602.pdf.) For DOE’s Primary Estimate and Low
                                                Net Benefits Estimate, the agency is presenting a national benefit-per-ton estimate for particulate matter emitted from the Electric Generating
                                                Unit sector based on an estimate of premature mortality derived from the ACS study (Krewski et al., 2009). For DOE’s High Net Benefits Esti-
                                                mate, the benefit-per-ton estimates were based on the Six Cities study (Lepuele et al., 2011), which are nearly two-and-a-half times larger than
                                                those from the ACS study. Because of the sensitivity of the benefit-per-ton estimate to the geographical considerations of sources and receptors
                                                of emission, DOE intends to investigate refinements to the agency’s current approach of one national estimate by assessing the regional ap-
                                                proach taken by EPA’s Regulatory Impact Analysis for the Clean Power Plan Final Rule.
                                                  †† Total Benefits for both the 3% and 7% cases are derived using the series corresponding to the average SCC with 3-percent discount rate
                                                ($40.0/t) case. In the rows labeled ‘‘7% plus CO2 range’’ and ‘‘3% plus CO2 range,’’ the operating cost and NOX benefits are calculated using the
                                                labeled discount rate, and those values are added to the full range of CO2 values.


                                                B. Benefits and Burdens of TSLs                                            each TSL for CWAFs. For TSL 2, the                                       energy savings, emissions reductions,
                                                Considered for Commercial Warm Air                                         national impacts are projected over the                                  and value of emissions reductions refer
                                                Furnaces                                                                   lifetime of equipment sold in 2023–                                      to full-fuel-cycle results. The efficiency
                                                                                                                           2048. For the other TSLs, the impacts                                    levels contained in each TSL are
                                                  Table II.5 and Table II.6 summarize                                      are projected over the lifetime of                                       described in section V.A of the direct
                                                the quantitative impacts estimated for                                     equipment sold in 2019–2048. The                                         final rule.

                                                           TABLE II.5—SUMMARY OF ANALYTICAL RESULTS FOR COMMERCIAL WARM AIR FURNACES: NATIONAL IMPACTS
                                                                                                                                                                                              Trial standard level

                                                                                                                                                                1                     2                      3                     4                    5

                                                Cumulative FFC Energy Savings Quads .....................................                               0.25 .............    0.23 .............     0.41 .............    0.41 .............    2.4

                                                                                                                     NPV of consumer costs and benefits 2014$ billion

                                                3% discount rate ..............................................................................         1.1 ...............   1.0 ...............    -0.1 ..............   -0.1 ..............   2.6
                                                7% discount rate ..............................................................................         0.4 ...............   0.3 ...............    -0.4 ..............   -0.4 ..............   -0.4

                                                                                                                                Cumulative FFC emissions reduction

                                                CO2 million metric tons ....................................................................            13.4 .............    12.4 .............     22.0 .............    22.0 .............    126
                                                SO2 thousand tons ...........................................................................           0.40 .............    0.40 .............     0.63 .............    0.67 .............    -10.2
                                                NOX thousand tons ..........................................................................            43.0 .............    41.2 .............     70.5 .............    72.2 .............    473
                                                Hg tons .............................................................................................   0.001 ...........     0.001 ...........      0.002 ...........     0.002 ...........     -0.04
                                                CH4 thousand tons ...........................................................................           159 ..............    146 ..............     260 ..............    260 ..............    1,673
                                                CH4 thousand tons CO2eq* .............................................................                  4,440 ...........     4,096 ...........      7,289 ...........     7,292 ...........     46,831
                                                N2O thousand tons ..........................................................................            0.03 .............    0.03 .............     0.05 .............    0.06 .............    0.08
                                                N2O thousand tons CO2eq* .............................................................                  8.8 ...............   8.4 ...............    14.3 .............    14.6 .............    21.2

                                                                                                                                      Value of emissions reduction

                                                CO2 2014$ million** .........................................................................           79.8 to 1,185         71.4 to 1,078          126 to 1,891          126 to 1,897          713 to
                                                                                                                                                                                                                                                   10,809
                                                NOX—3% discount rate 2014$ million ............................................                         120 to 264 ...        110 to 243 ...         188 to 414 ...        192 to 424 ...        1258 to 2772
                                                NOX—7% discount rate 2014$ million ............................................                         42.3 to 94.4          36.1 to 80.9           64.2 to 144 ..        65.9 to 147 ..        423 to 945
                                                   For TSL 2, the impacts are projected over the lifetime of equipment sold in 2023–2048. For the other TSLs, the impacts are projected over the
                                                lifetime of equipment sold in 2019–2048.
                                                   * CO2eq is the quantity of CO2 that would have the same global warming potential (GWP).
                                                    ** Range of the economic value of CO2 reductions is based on estimates of the global benefit of reduced CO2 emissions.

                                                         TABLE II.6—SUMMARY OF ANALYTICAL RESULTS FOR COMMERCIAL WARM AIR FURNACES: MANUFACTURER AND
                                                                                              CONSUMER IMPACTS*
                                                                                                                                                                                              Trial standard level
                                                                                           Category
                                                                                                                                                                1                     2                      3                     4                    5

                                                                                                                                             Manufacturer Impacts

                                                Industry NPV (2014$ million) (No-New-Standards Case INPV =                                              85.8 to 92.6          83.0 to 90.5           65.5 to 125.2         60.4 to 124.8         (19.3) to
                                                  96.3).                                                                                                                                                                                           143.5
                                                Industry NPV (% change) ................................................................                (11.0) to             (13.9) to              (32.0) to 29.9        (37.3) to 29.5        (120.1) to
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                                                                                                                                                          (3.9).                (6.1).                                                             49.0

                                                                                                                              Consumer average LCC savings (2014$)

                                                Gas-Fired Commercial Warm Air Furnaces ....................................                             $284 ............     $284 ............      $75 ..............    $75 ..............    $766
                                                Oil-Fired Commercial Warm Air Furnaces ......................................                           NA ...............    $400 ............      NA ...............    $400 ............     $1,817
                                                Average* ..........................................................................................     $284 ............     $285 ............      $75 ..............    $79 ..............    $781




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                                                                                 Federal Register / Vol. 81, No. 10 / Friday, January 15, 2016 / Proposed Rules                                                                                      2121

                                                         TABLE II.6—SUMMARY OF ANALYTICAL RESULTS FOR COMMERCIAL WARM AIR FURNACES: MANUFACTURER AND
                                                                                         CONSUMER IMPACTS*—Continued
                                                                                                                                                                                            Trial standard level
                                                                                          Category
                                                                                                                                                              1                     2                      3                    4                    5

                                                                                                                                    Consumer simple PBP (years)

                                                Gas-Fired Commercial Warm Air Furnaces ....................................                           1.4 ...............   1.4 ...............    12.3 .............   12.3 .............    11.3
                                                Oil-Fired Commercial Warm Air Furnaces ......................................                         NA ...............    1.9 ...............    NA ...............   1.9 ...............   7.5
                                                Average* ..........................................................................................   1.4 ...............   1.4 ...............    12.3 .............   12.1 .............    11.3

                                                                                                                          % of Consumers that Experience Net Cost

                                                Gas-Fired Commercial Warm Air Furnaces ....................................                           6% ...............    6% ...............     58% .............    58% .............     58%
                                                Oil-Fired Commercial Warm Air Furnaces ......................................                         0% ...............    11% .............      0% ...............   11% .............     54%
                                                  * Weighted by shares of each equipment class in total projected shipments in 2019.
                                                  † At max tech, the standard will likely require CWAF manufacturers to make design changes to the cooling components of commercial HVAC
                                                products and to the chassis that houses the heating and cooling components. Because these cooling system changes are triggered by the
                                                CWAF standard, they are taken into account in the MIA’s estimate of conversion costs. The additional expense of updating the commercial cool-
                                                ing product contributes to an INPV loss that is greater than 100%.


                                                   DOE first considered TSL 5, which                                     consumer benefits using a 7-percent                                      emissions reductions would be
                                                represents the max-tech efficiency                                       discount rate, and the impacts on                                        outweighed by the economic burden on
                                                levels. TSL 5 would save 2.4 quads of                                    manufacturers, including the conversion                                  many consumers, negative NPV of
                                                energy, an amount DOE considers                                          costs and profit margin impacts that                                     consumer benefits, and the impacts on
                                                significant. Under TSL 5, the NPV of                                     could result in a large reduction in                                     manufacturers, including the conversion
                                                consumer cost would be $0.4 billion                                      INPV. Consequently, the Secretary has                                    costs and profit margin impacts that
                                                using a 7-percent discount rate, and the                                 tentatively concluded that TSL 5 is not                                  could result in a large reduction in
                                                NPV of consumer benefit would be $2.6                                    economically justified.                                                  INPV. Consequently, the Secretary has
                                                billion using a 3-percent discount rate.                                    DOE then considered TSL 4. TSL 4                                      tentatively concluded that TSL 4 is not
                                                   The cumulative emissions reductions                                   would save 0.41 quads of energy, an                                      economically justified.
                                                at TSL 5 are 126 Mt of CO2, 473                                          amount DOE considers significant.                                           DOE then considered TSL 3. TSL 3
                                                thousand tons of NOX, 1,673 thousand                                     Under TSL 4, the NPV of consumer cost                                    would save 0.41 quads of energy, an
                                                tons of CH4, and 0.08 thousand tons of                                   would be $0.4 billion using a 7-percent                                  amount DOE considers significant.
                                                N2O. Projected emissions show an                                         discount rate, and $0.1 billion using a                                  Under TSL 3, the NPV of consumer cost
                                                increase of 10.2 thousand tons of SO2                                    3-percent discount rate.                                                 would be $0.4 billion using a 7-percent
                                                and 0.04 ton of Hg. The estimated                                           The cumulative emissions reductions                                   discount rate, and $0.1 billion using a
                                                monetary value of the CO2 emissions                                      at TSL 4 are 22 Mt of CO2, 0.67                                          3-percent discount rate.
                                                reduction at TSL 5 ranges from $713                                      thousand tons of SO2, 72.2 thousand                                         The cumulative emissions reductions
                                                million to $10,809 million.                                              tons of NOX, 0.002 ton of Hg, 260                                        at TSL 3 are 22 Mt of CO2, 0.63
                                                   At TSL 5, the average LCC impact is                                   thousand tons of CH4, and 0.06                                           thousand tons of SO2, 70.5 thousand
                                                a savings of $766 for gas-fired CWAFs                                    thousand tons of N2O. The estimated                                      tons of NOX, 0.002 ton of Hg, 260
                                                and $1,817 for oil-fired CWAFs. The                                      monetary value of the CO2 emissions                                      thousand tons of CH4, and 0.05
                                                simple payback period is 11.3 years for                                  reduction at TSL 4 ranges from $126                                      thousand tons of N2O. The estimated
                                                gas-fired CWAFs and 7.5 years for oil-                                   million to $1,897 million.                                               monetary value of the CO2 emissions
                                                fired CWAFs. The fraction of consumers                                      At TSL 4, the average LCC impact is                                   reduction at TSL 3 ranges from $126
                                                experiencing a net LCC cost is 58                                        a savings of $75 for gas-fired CWAFs                                     million to $1,891 million.
                                                percent for gas-fired CWAF and 54                                        and $400 for oil-fired CWAFs. The                                           At TSL 3, the average LCC impact is
                                                percent for oil-fired CWAFs.                                             simple payback period is 12.3 years for                                  a savings of $75 for gas-fired CWAFs.
                                                   At TSL 5, the projected change in                                     gas-fired CWAFs and 1.9 years for oil-                                   The simple payback period is 12.3 years
                                                INPV ranges from a decrease of $115.7                                    fired CWAFs. The fraction of consumers                                   for gas-fired CWAFs. The fraction of
                                                million to an increase of $47.2 million,                                 experiencing a net LCC cost is 58                                        consumers experiencing a net LCC cost
                                                which corresponds to a change of                                         percent for gas-fired CWAFs, and 11                                      is 58 percent for gas-fired CWAFs. The
                                                ¥120.1 percent and 49.0 percent,                                         percent for oil-fired CWAFs.                                             EL at TSL 3 for oil-fired CWAFs is the
                                                respectively. The industry is expected to                                   At TSL 4, the projected change in                                     baseline, so there are no LCC impacts
                                                incur $157.5 million in total conversion                                 INPV ranges from a decrease of $35.9                                     for oil-fired CWAFs at TSL 3.
                                                costs at this level. DOE projects that 99                                million to an increase of $28.4 million,                                    At TSL 3, the projected change in
                                                percent of current equipment listings                                    which corresponds to a change of ¥37.3                                   INPV ranges from a decrease of $30.9
                                                would require redesign at this level.                                    percent and 29.5 percent, respectively.                                  million to an increase of $28.8 million,
                                                   The Secretary tentatively concludes                                   The industry is expected to incur $47.6                                  which corresponds to a change of ¥32.0
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                                                that at TSL 5 for CWAFs, the benefits of                                 million in total conversion costs at this                                percent and 29.9 percent, respectively.
                                                energy savings, positive NPV of                                          level. DOE projects that 94 percent of                                   The industry is expected to incur $41.0
                                                consumer benefits using a discount rate                                  current product listings would require                                   million in total conversion costs at this
                                                of 3 percent, emission reductions, and                                   redesign at this level.                                                  level. DOE projects that 91 percent of
                                                the estimated monetary value of the                                         The Secretary tentatively concludes                                   current equipment listings would
                                                emissions reductions would be                                            that at TSL 4 for CWAFs, the benefits of                                 require redesign at this level.
                                                outweighed by the economic burden on                                     energy savings, emission reductions,                                        The Secretary tentatively concludes
                                                most consumers, the negative NPV of                                      and the estimated monetary value of the                                  that at TSL 3 for CWAFs, the benefits of


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                                                2122                     Federal Register / Vol. 81, No. 10 / Friday, January 15, 2016 / Proposed Rules

                                                energy savings, emission reductions,                    the DFR. The resulting synergies from                   TABLE II.7—PROPOSED ENERGY CON-
                                                and the estimated monetary value of the                 aligning the compliance dates of the                     SERVATION STANDARDS FOR COM-
                                                emissions reductions would be                           CUAC/CUHP and CWAF standards                             MERCIAL WARM AIR FURNACES—
                                                outweighed by the economic burden on                    would produce INPV impacts that are                      Continued
                                                many consumers, negative NPV of                         less severe than the forecasted INPV
                                                consumer benefits, and the impacts on                   range of ¥13.9 percent to ¥6.1 percent.                                                        Thermal
                                                manufacturers, including the conversion                                                                          Equipment      Input capacity
                                                                                                           After considering the analysis and                                                          efficiency
                                                                                                                                                                   type            (Btu/h)
                                                costs and profit margin impacts that                    weighing the benefits and burdens, DOE                                                             (%)
                                                could result in a large reduction in                    has tentatively determined that the                    Oil-fired        ≥225,000                        82
                                                INPV. Consequently, the Secretary has                   recommended standards are in                             CWAFs.         Btu/h ..............
                                                tentatively concluded that TSL 3 is not                 accordance with 42 U.S.C. 6313(a)(6)(B),
                                                economically justified.                                 which contains provisions for adopting           The benefits and costs of the proposed
                                                   DOE then considered TSL 2, which                     a uniform national standard more              standards can also be expressed in terms
                                                corresponds to the recommendations by                   stringent than the amended ASHRAE/            of annualized values. The annualized
                                                the Working Group. TSL 2 would save                     IES Standard 90.1 for the equipment
                                                0.23 quads of energy, an amount DOE                                                                   net benefit is the sum of: (1) The
                                                                                                        considered in this document.                  annualized national economic value
                                                considers significant. Under TSL 2, the                 Specifically, the Secretary has
                                                NPV of consumer benefit would be $0.3                                                                 (expressed in 2014$) of the benefits
                                                                                                        tentatively determined, supported by          from operating equipment that meet the
                                                billion using a 7-percent discount rate,                clear and convincing evidence, that
                                                and $1.0 billion using a 3-percent                                                                    adopted standards (consisting primarily
                                                                                                        such adoption would result in                 of operating cost savings from using less
                                                discount rate.                                          significant additional conservation of
                                                   The cumulative emissions reductions                                                                energy, minus increases in equipment
                                                                                                        energy and is technologically feasible        purchase costs), and (2) the annualized
                                                at TSL 2 are 12.4 Mt of CO2, 0.40                       and economically justified. In
                                                thousand tons of SO2, 41.2 thousand                                                                   monetary value of the benefits of CO2
                                                                                                        determining whether the recommended           and NOX emission reductions.
                                                tons of NOX, 0.001 ton of Hg, 146                       standards are economically justified, the
                                                thousand tons of CH4, and 0.03                                                                          Table II.8 shows the annualized
                                                                                                        Secretary has tentatively determined          values for CWAFs under TSL 2,
                                                thousand tons of N2O. The estimated                     that the benefits of the recommended
                                                monetary value of the CO2 emissions                                                                   expressed in 2014$. The results under
                                                                                                        standards exceed the burdens. Namely,         the primary estimate are as follows.
                                                reduction at TSL 2 ranges from $71.4
                                                                                                        the Secretary has tentatively concluded       Using a 7-percent discount rate for
                                                million to $1,078 million.
                                                                                                        that under the recommended standards          benefits and costs other than CO2
                                                   At TSL 2, the average LCC impact is
                                                                                                        for CWAFs, the benefits of energy             reductions, (for which DOE used a 3-
                                                a savings of $284 for gas-fired CWAFs
                                                                                                        savings, positive NPV of consumer             percent discount rate along with the
                                                and $400 for oil-fired CWAFs. The
                                                                                                        benefits, emission reductions, the            average SCC series corresponding to a
                                                simple payback period is 1.4 years for
                                                                                                        estimated monetary value of the               value of $40.0/ton in 2015 (2014$)), the
                                                gas-fired CWAF and 1.9 years for oil-
                                                                                                        emissions reductions, and positive            estimated cost of the adopted standards
                                                fired CWAFs. The fraction of consumers
                                                                                                        average LCC savings would outweigh            for CWAFs is $4.31 million per year in
                                                experiencing a net LCC cost is 6 percent
                                                                                                        the negative impacts on some                  increased equipment costs, while the
                                                for gas-fired CWAFs and 11 percent for
                                                                                                        consumers and on manufacturers,               estimated benefits are $49.0 million per
                                                oil-fired CWAFs.
                                                                                                        including the conversion costs that           year in reduced equipment operating
                                                   At TSL 2, 57 percent of current
                                                                                                        could result in a reduction in INPV for       costs, $24 million per year in CO2
                                                equipment listings would require
                                                                                                        manufacturers.                                reductions, and $5.49 million per year
                                                redesign at this level. The projected
                                                change in INPV ranges from a decrease                      Based on the above analyses, DOE is        in reduced NOX emissions. In this case,
                                                of $13.4 million to a decrease of $5.9                  proposing to amend the energy                 the net benefit amounts to $75 million
                                                million, which corresponds to a                         conservation standards for CWAFs—as           per year.
                                                decrease of 13.9 percent and 6.1                        expressed in terms of thermal                    Using a 3-percent discount rate for all
                                                percent, respectively. The CWAF                         efficiency—in the manner shown in             benefits and costs and the average SCC
                                                industry is expected to incur $22.2                     Table II.7.                                   series corresponding to a value of $40.0/
                                                million in total conversion costs.                                                                    ton in 2015 (in 2014$), the estimated
                                                However, the industry noted that                         TABLE II.7—PROPOSED ENERGY CON- cost of the adopted standards for
                                                aligning the compliance dates for the                     SERVATION STANDARDS FOR COM- CWAFs is $4.38 million per year in
                                                CUAC/CUHP and CWAF standards, as                          MERCIAL WARM AIR FURNACES                   increased equipment costs, while the
                                                recommended by the Working Group,                                                                     estimated benefits are $71 million per
                                                would allow manufacturers to                                                              Thermal     year in reduced operating costs, $24.3
                                                                                                          Equipment  Input capacity       efficiency
                                                coordinate their redesign and testing                        type        (Btu/h)              (%)     million per year in CO2 reductions, and
                                                expenses for this equipment. If this                                                                  $8.76 million per year in reduced NOX
                                                occurs, there could be a reduction in the               Gas-fired    ≥225,000                      81 emissions. In this case, the net benefit
                                                total conversion costs associated with                    CWAFs.     Btu/h ..............             amounts to $100 million per year.
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                                                                                  Federal Register / Vol. 81, No. 10 / Friday, January 15, 2016 / Proposed Rules                                                                                                  2123

                                                       TABLE II.8—ANNUALIZED BENEFITS AND COSTS OF PROPOSED STANDARDS (TSL 2) FOR COMMERCIAL WARM AIR
                                                                                                   FURNACES
                                                                                                                                                                                                Million 2014$/year

                                                                                                                                                         Discount                                                              Low                          High
                                                                                                                                                                                            Primary
                                                                                                                                                           rate                                                            net benefits                 net benefits
                                                                                                                                                                                           estimate *
                                                                                                                                                            %                                                               estimate *                   estimate *

                                                                                                                                                        Benefits

                                                Consumer Operating Cost Savings .......................................                       7 ................................     49 .......................       48 .......................      54
                                                                                                                                              3 ................................     71 .......................       70 .......................      81
                                                CO2 Reduction Value ($12.2/t case)** ..................................                       5 ................................     6.99 ....................        7.08 ....................       7.37
                                                CO2 Reduction Value ($40.0/t case)** ..................................                       3 ................................     24 .......................       25 .......................      26
                                                CO2 Reduction Value ($62.3/t case)** ..................................                       2.5 .............................      36 .......................       36 .......................      38
                                                CO2 Reduction Value ($117/t case)** ...................................                       3 ................................     74 .......................       75 .......................      79
                                                NOX Reduction Value† ..........................................................               7 ................................     5 to 11 ................         5 to 11 ................        5 to 11
                                                                                                                                              3 ................................     8 to 17 ................         8 to 17 ................        8 to 18
                                                Total Benefits†† .....................................................................        7 plus CO2 range ......                61 to 134 ............           60 to 134 ............          67 to 144
                                                                                                                                              7 ................................     78 .......................       78 .......................      85
                                                                                                                                              3 plus CO2 range ......                86 to 162 ............           84 to 162 ............          96 to 177

                                                                                                                                              3 ................................     103 .....................        102 .....................       114

                                                                                                                                                          Costs

                                                Consumer Incremental Installed Costs .................................                        7 ................................     4.31 ....................        5.04 ....................       3.92
                                                                                                                                              3 ................................     4.38 ....................        5.22 ....................       3.94

                                                                                                                                                     Net Benefits

                                                Total†† ...................................................................................   7   plus CO2 range ......              57   to 130 ............         55   to 129 ............        63 to 140
                                                                                                                                              7   ................................   74    .......................    72    .......................   81
                                                                                                                                              3   plus CO2 range ......              82   to 158 ............         79   to 157 ............        92 to 173
                                                                                                                                              3   ................................   99    .......................    97    .......................   110
                                                   *This table presents the annualized costs and benefits associated with CWAFs shipped in 2023–2048. These results include benefits to con-
                                                sumers which accrue after 2048 from the CWAFs purchased from 2023–2048. The results account for the incremental variable and fixed costs
                                                incurred by manufacturers due to the standard, some of which may be incurred in preparation for the rule. The Primary, Low Benefits, and High
                                                Benefits Estimates utilize projections of energy prices from the AEO 2015 Reference case, Low Economic Growth case, and High Economic
                                                Growth case, respectively. In addition, incremental equipment costs reflect a medium decline rate in the Primary Estimate, a low decline rate in
                                                the Low Benefits Estimate, and a high decline rate in the High Benefits Estimate.
                                                   **The CO2 values represent global monetized values of the SCC, in 2014$, in 2015 under several scenarios of the updated SCC values. The
                                                first three cases use the averages of SCC distributions calculated using 5%, 3%, and 2.5% discount rates, respectively. The fourth case rep-
                                                resents the 95th percentile of the SCC distribution calculated using a 3% discount rate. The SCC time series incorporate an escalation factor.
                                                   †The $/ton values used for NOX are described in the Direct Final Rule. DOE estimated the monetized value of NOx emissions reductions
                                                using benefit per ton estimates from the Regulatory Impact Analysis titled, ‘‘Proposed Carbon Pollution Guidelines for Existing Power Plants and
                                                Emission Standards for Modified and Reconstructed Power Plants,’’ published in June 2014 by EPA’s Office of Air Quality Planning and Stand-
                                                ards. (Available at: http://www3.epa.gov/ttnecas1/regdata/RIAs/111dproposalRIAfinal0602.pdf.) For DOE’s Primary Estimate and Low Net Bene-
                                                fits Estimate, the agency is presenting a national benefit-per-ton estimate for particulate matter emitted from the Electric Generating Unit sector
                                                based on an estimate of premature mortality derived from the ACS study (Krewski et al., 2009). For DOE’s High Net Benefits Estimate, the ben-
                                                efit-per-ton estimates were based on the Six Cities study (Lepuele et al., 2011), which are nearly two-and-a-half times larger than those from the
                                                ACS study. Because of the sensitivity of the benefit-per-ton estimate to the geographical considerations of sources and receptors of emission,
                                                DOE intends to investigate refinements to the agency’s current approach of one national estimate by assessing the regional approach taken by
                                                EPA’s Regulatory Impact Analysis for the Clean Power Plan Final Rule.
                                                   ††Total Benefits for both the 3% and 7% cases are derived using the series corresponding to the average SCC with 3-percent discount rate
                                                ($40.0/t case. In the rows labeled ‘‘7% plus CO2 range’’ and ‘‘3% plus CO2 range,’’ the operating cost and NOX benefits are calculated using the
                                                labeled discount rate, and those values are added to the full range of CO2 values.


                                                III. Public Participation                                                 contact information. Your contact                                            it in the comment itself or in any
                                                                                                                          information will be viewable to DOE                                          documents attached to your comment.
                                                Submission of Comments
                                                                                                                          Building Technologies staff only. Your                                       Any information that you do not want
                                                  DOE will accept comments, data, and                                     contact information will not be publicly                                     to be publicly viewable should not be
                                                information regarding this proposed                                       viewable except for your first and last                                      included in your comment, nor in any
                                                rule before or after the public meeting,                                  names, organization name (if any), and                                       document attached to your comment.
                                                but no later than the date provided in                                    submitter representative name (if any).                                      Otherwise, persons viewing comments
                                                the DATES section at the beginning of                                     If your comment is not processed                                             will see only first and last names,
                                                this proposed rule. Interested parties                                    properly because of technical                                                organization names, correspondence
tkelley on DSK3SPTVN1PROD with PROPOSALS




                                                may submit comments, data, and other                                      difficulties, DOE will use this                                              containing comments, and any
                                                information using any of the methods                                      information to contact you. If DOE                                           documents submitted with the
                                                described in the ADDRESSES section at                                     cannot read your comment due to                                              comments.
                                                the beginning of this document.                                           technical difficulties and cannot contact                                       Do not submit to www.regulations.gov
                                                  Submitting comments via                                                 you for clarification, DOE may not be                                        information for which disclosure is
                                                www.regulations.gov. The                                                  able to consider your comment.                                               restricted by statute, such as trade
                                                www.regulations.gov Web page will                                            However, your contact information                                         secrets and commercial or financial
                                                require you to provide your name and                                      will be publicly viewable if you include                                     information (hereinafter referred to as


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                                                2124                     Federal Register / Vol. 81, No. 10 / Friday, January 15, 2016 / Proposed Rules

                                                Confidential Business Information                       by law from public disclosure should                     Issued in Washington, DC, on December
                                                (‘‘CBI’’)). Comments submitted through                  submit via email, postal mail, or hand                 17, 2015.
                                                www.regulations.gov cannot be claimed                   delivery/courier two well-marked                       David T. Danielson,
                                                as CBI. Comments received through the                   copies: one copy of the document                       Assistant Secretary, Energy Efficiency and
                                                Web site will waive any CBI claims for                  marked ‘‘confidential’’ including all the              Renewable Energy.
                                                the information submitted. For                          information believed to be confidential,                 For the reasons set forth in the
                                                information on submitting CBI, see the                  and one copy of the document marked                    preamble, DOE proposes to amend part
                                                Confidential Business Information                       ‘‘non-confidential’’ with the information              431 of chapter II, subchapter D, of title
                                                section below.                                          believed to be confidential deleted.                   10 of the Code of Federal Regulations,
                                                   DOE processes submissions made                                                                              to read as set forth below:
                                                                                                        Submit these documents via email or on
                                                through www.regulations.gov before
                                                posting. Normally, comments will be                     a CD, if feasible. DOE will make its own               PART 431—ENERGY EFFICIENCY
                                                posted within a few days of being                       determination about the confidential                   PROGRAM FOR CERTAIN
                                                submitted. However, if large volumes of                 status of the information and treat it                 COMMERCIAL AND INDUSTRIAL
                                                comments are being processed                            according to its determination.                        EQUIPMENT
                                                simultaneously, your comment may not                       Factors of interest to DOE when
                                                be viewable for up to several weeks.                    evaluating requests to treat submitted                 ■ 1. The authority citation for part 431
                                                Please keep the comment tracking                        information as confidential include: (1)               continues to read as follows:
                                                number that www.regulations.gov                         A description of the items; (2) whether                    Authority: 42 U.S.C. 6291–6317.
                                                provides after you have successfully                    and why such items are customarily                     ■ 2. Section 431.77 is revised to read as
                                                uploaded your comment.                                  treated as confidential within the                     follows:
                                                   Submitting comments via email, hand                  industry; (3) whether the information is
                                                delivery/courier, or mail. Comments and                                                                        § 431.77 Energy conservation standards
                                                                                                        generally known by or available from
                                                documents submitted via email, hand                                                                            and their effective dates.
                                                                                                        other sources; (4) whether the
                                                delivery/courier, or mail also will be                                                                            (a) Gas-fired commercial warm air
                                                posted to www.regulations.gov. If you                   information has previously been made
                                                                                                        available to others without obligation                 furnaces. Each gas-fired commercial
                                                do not want your personal contact                                                                              warm air furnace must meet the
                                                information to be publicly viewable, do                 concerning its confidentiality; (5) an
                                                                                                                                                               following energy efficiency standard
                                                not include it in your comment or any                   explanation of the competitive injury to
                                                                                                                                                               levels:
                                                accompanying documents. Instead,                        the submitting person that would result                   (1) For gas-fired commercial warm air
                                                provide your contact information in a                   from public disclosure; (6) when such                  furnaces manufactured starting on
                                                cover letter. Include your first and last               information might lose its confidential                January 1, 1994, until January 1, 2023,
                                                names, email address, telephone                         character due to the passage of time; and              the TE at the maximum rated capacity
                                                number, and optional mailing address.                   (7) why disclosure of the information                  (rated maximum input) must be not less
                                                The cover letter will not be publicly                   would be contrary to the public interest.              than 80 percent; and
                                                viewable as long as it does not include                    It is DOE’s policy that all comments                   (2) For gas-fired commercial warm air
                                                any comments                                            may be included in the public docket,                  furnaces manufactured starting on
                                                   Include contact information each time                                                                       January 1, 2023, the TE at the maximum
                                                                                                        without change and as received,
                                                you submit comments, data, documents,                                                                          rated capacity (rated maximum input)
                                                and other information to DOE. If you                    including any personal information
                                                                                                        provided in the comments (except                       must be not less than 81 percent.
                                                submit via mail or hand delivery/                                                                                 (b) Oil-fired commercial warm air
                                                courier, please provide all items on a                  information deemed to be exempt from
                                                                                                        public disclosure).                                    furnaces. Each oil-fired commercial
                                                CD, if feasible, in which case it is not                                                                       warm air furnace must meet the
                                                necessary to submit printed copies. No                  IV. Procedural Issues and Regulatory                   following energy efficiency standard
                                                telefacsimiles (faxes) will be accepted.                Review                                                 levels:
                                                   Comments, data, and other                                                                                      (1) For oil-fired commercial warm air
                                                information submitted to DOE                              The regulatory reviews conducted for                 furnaces manufactured starting on
                                                electronically should be provided in                    this proposed rule are identical to those              January 1, 1994, until January 1, 2023,
                                                PDF (preferred), Microsoft Word or                      conducted for the direct final rule                    the TE at the maximum rated capacity
                                                Excel, WordPerfect, or text (ASCII) file                published elsewhere in this Federal                    (rated maximum input) must be not less
                                                format. Provide documents that are not                  Register. Please see the direct final rule             than 81 percent; and
                                                secured, that are written in English, and               for further details.                                      (2) For oil-fired commercial warm air
                                                that are free of any defects or viruses.                                                                       furnaces manufactured starting on
                                                Documents should not contain special                    V. Approval of the Office of the                       January 1, 2023, the TE at the maximum
                                                characters or any form of encryption                    Secretary                                              rated capacity (rated maximum input)
                                                and, if possible, they should carry the                                                                        must be not less than 82 percent.
                                                electronic signature of the author.                       The Secretary of Energy has approved
                                                                                                                                                               ■ 3. Section 431.92 is amended by
                                                   Campaign form letters. Please submit                 publication of this proposed rule.
                                                                                                                                                               adding the definition of ‘‘Double-duct
                                                campaign form letters by the originating                List of Subjects in 10 CFR Part 431                    air conditioner or heat pump means air-
                                                organization in batches of between 50 to                                                                       cooled commercial package air
                                                500 form letters per PDF or as one form                   Administrative practice and                          conditioning and heating equipment’’ in
tkelley on DSK3SPTVN1PROD with PROPOSALS




                                                letter with a list of supporters’ names                 procedure, Confidential business                       alphabetical order to read as follows:
                                                compiled into one or more PDFs. This                    information, Energy conservation,
                                                reduces comment processing and                          Household appliances, Imports,                         § 431.92 Definitions concerning
                                                posting time.                                           Intergovernmental relations, Reporting                 commercial air conditioners and heat
                                                   Confidential Business Information.                                                                          pumps.
                                                                                                        and recordkeeping requirements, Small
                                                Pursuant to 10 CFR 1004.11, any person                  businesses.                                            *   *     *    *     *
                                                submitting information that he or she                                                                            Double-duct air conditioner or heat
                                                believes to be confidential and exempt                                                                         pump means air-cooled commercial


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                                                                         Federal Register / Vol. 81, No. 10 / Friday, January 15, 2016 / Proposed Rules                                                                  2125

                                                package air conditioning and heating                         (ii) If it is a vertical unit, a complete                         The revisions read as follows:
                                                equipment that—                                           unit has a maximum depth of 35 inches;
                                                                                                          and                                                              § 431.97 Energy efficiency standards and
                                                  (1) Is either a horizontal single                                                                                        their compliance dates.
                                                package or split-system unit; or a                           (4) Has a rated cooling capacity
                                                vertical unit that consists of two                        greater than or equal to 65,000 Btu/h                            *     *     *     *     *
                                                components that may be shipped or                         and up to 300,000 Btu/h.                                           (b) Each commercial air conditioner
                                                installed either connected or split;                      *       *       *     *     *                                    or heat pump (not including single
                                                                                                          ■ 4. Section 431.97 is amended by:                               package vertical air conditioners and
                                                  (2) Is intended for indoor installation
                                                                                                             a. Redesignating Tables 5 through 11                          single package vertical heat pumps,
                                                with ducting of outdoor air from the
                                                                                                          as Tables 7 through 13;
                                                building exterior to and from the unit,                                                                                    packaged terminal air conditioners and
                                                                                                             b. Revising paragraph (b) and the
                                                as evidenced by the unit and/or all of its                introductory text of paragraph (c);                              packaged terminal heat pumps,
                                                components being non-weatherized,                            c. In paragraph (d)(1) introductory                           computer room air conditioners, and
                                                including the absence of any marking                      text, removing ‘‘Table 7’’ and adding in                         variable refrigerant flow systems)
                                                (or listing) indicating compliance with                   its place ‘‘Table 9’’;                                           manufactured starting on the
                                                UL 1995, ‘‘Heating and Cooling                               d. In paragraph (d)(2) introductory                           compliance date listed in the
                                                Equipment,’’ or any other equivalent                      text, removing ‘‘Table 8’’ and adding in                         corresponding table must meet the
                                                requirements for outdoor use;                             its place ‘‘Table 10’’; and                                      applicable minimum energy efficiency
                                                  (3)(i) If it is a horizontal unit, a                       e. In paragraph (d)(3) introductory                           standard level(s) set forth in Tables 1
                                                complete unit has a maximum height of                     text, removing ‘‘Table 9’’ and adding in                         through 6 of this section.
                                                35 inches;                                                its place ‘‘Table 11’’.

                                                   TABLE 1 TO § 431.97—MINIMUM COOLING EFFICIENCY STANDARDS FOR AIR CONDITIONING AND HEATING EQUIPMENT
                                                 [Not including single package vertical air conditioners and single package vertical heat pumps, packaged terminal air conditioners and packaged
                                                           terminal heat pumps, computer room air conditioners, and variable refrigerant flow multi-split air conditioners and heat pumps]

                                                                                                                                                                                                              Compliance date:
                                                                                                                                                                                                              Equipment
                                                            Equipment type                         Cooling capacity        Sub-category                  Heating type                  Efficiency level       manufactured
                                                                                                                                                                                                              starting on . . .

                                                Small Commercial Package Air Con-             <65,000 Btu/h ......     AC ........................   All .........................   SEER = 13 ...........    June 16, 2008.
                                                 ditioning and Heating Equipment
                                                 (Air-Cooled, 3-Phase, Split-System).
                                                                                                                       HP ........................   All .........................   SEER = 13 ...........    June 16, 2008.1
                                                Small Commercial Package Air Con-             <65,000 Btu/h ......     AC ........................   All .........................   SEER = 13 ...........    June 16, 2008.1
                                                 ditioning and Heating Equipment
                                                 (Air-Cooled, 3-Phase, Single-Pack-
                                                 age).
                                                                                                                       HP ........................   All .........................   SEER = 13 ...........    June 16, 2008.1
                                                Small Commercial Package Air Con-             ≥65,000 Btu/h and        AC ........................   No Heating or                   EER = 11.2 ..........    January 1, 2010.2
                                                 ditioning and Heating Equipment                <135,000 Btu/h.                                         Electric Resist-
                                                 (Air-Cooled).                                                                                          ance Heating.
                                                                                                                                                     All Other Types of              EER = 11.0 ..........    January 1, 2010.2
                                                                                                                                                        Heating.
                                                                                                                       HP ........................   No Heating or                   EER = 11.0 ..........    January 1, 2010.2
                                                                                                                                                        Electric Resist-
                                                                                                                                                        ance Heating.
                                                                                                                                                     All Other Types of              EER = 10.8 ..........    January 1, 2010.2
                                                                                                                                                        Heating.
                                                Large Commercial Package Air Con-             ≥135,000 Btu/h           AC ........................   No Heating or                   EER = 11.0 ..........    January 1, 2010.2
                                                  ditioning and Heating Equipment               and <240,000                                            Electric Resist-
                                                  (Air-Cooled).                                 Btu/h.                                                  ance Heating.
                                                                                                                                                     All Other Types of              EER = 10.8 ..........    January 1, 2010.2
                                                                                                                                                        Heating.
                                                                                                                       HP ........................   No Heating or                   EER = 10.6 ..........    January 1, 2010.2
                                                                                                                                                        Electric Resist-
                                                                                                                                                        ance Heating.
                                                                                                                                                     All Other Types of              EER = 10.4 ..........    January 1, 2010.2
                                                                                                                                                        Heating.
                                                Very Large Commercial Package Air             ≥240,000 Btu/h           AC ........................   No Heating or                   EER = 10.0 ..........    January 1, 2010.2
                                                  Conditioning and Heating Equip-               and <760,000                                            Electric Resist-
                                                  ment (Air-Cooled).                            Btu/h.                                                  ance Heating.
                                                                                                                                                     All Other Types of              EER = 9.8 ............   January 1, 2010.2
                                                                                                                                                        Heating.
tkelley on DSK3SPTVN1PROD with PROPOSALS




                                                                                                                       HP ........................   No Heating or                   EER = 9.5 ............   January 1, 2010.2
                                                                                                                                                        Electric Resist-
                                                                                                                                                        ance Heating.
                                                                                                                                                     All Other Types of              EER = 9.3 ............   January 1, 2010.2
                                                                                                                                                        Heating.
                                                Small Commercial Package Air Con-             <65,000 Btu/h ......     AC ........................   All .........................   EER = 12.1 ..........    October 29, 2003.
                                                 ditioning and Heating Equipment
                                                 (Water-Cooled).



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                                                2126                     Federal Register / Vol. 81, No. 10 / Friday, January 15, 2016 / Proposed Rules

                                                  TABLE 1 TO § 431.97—MINIMUM COOLING EFFICIENCY STANDARDS FOR AIR CONDITIONING AND HEATING EQUIPMENT—
                                                                                                Continued
                                                 [Not including single package vertical air conditioners and single package vertical heat pumps, packaged terminal air conditioners and packaged
                                                           terminal heat pumps, computer room air conditioners, and variable refrigerant flow multi-split air conditioners and heat pumps]

                                                                                                                                                                                                                 Compliance date:
                                                                                                                                                                                                                 Equipment
                                                            Equipment type                         Cooling capacity            Sub-category                  Heating type                  Efficiency level      manufactured
                                                                                                                                                                                                                 starting on . . .

                                                                                              ≥65,000 Btu/h and            AC ........................   No Heating or                   EER = 12.1 ..........   June 1, 2013.
                                                                                                <135,000 Btu/h.                                             Electric Resist-
                                                                                                                                                            ance Heating.
                                                                                                                                                         All Other Types of              EER = 11.9 ..........   June 1, 2013.
                                                                                                                                                            Heating.
                                                Large Commercial Package Air-Con-             ≥135,000 Btu/h               AC ........................   No Heating or                   EER = 12.5 ..........   June 1, 2014.
                                                  ditioning and Heating Equipment               and <240,000                                                Electric Resist-
                                                  (Water-Cooled).                               Btu/h.                                                      ance Heating.
                                                                                                                                                         All Other Types of              EER = 12.3 ..........   June 1, 2014.
                                                                                                                                                            Heating.
                                                Very Large Commercial Package Air-            ≥240,000 Btu/h               AC ........................   No Heating or                   EER = 12.4 ..........   June 1, 2014.
                                                  Conditioning and Heating Equip-               and <760,000                                                Electric Resist-
                                                  ment (Water-Cooled).                          Btu/h.                                                      ance Heating.
                                                                                                                                                         All Other Types of              EER = 12.2 ..........   June 1, 2014.
                                                                                                                                                            Heating.
                                                Small Commercial Package Air-Con-             <65,000 Btu/h ......         AC ........................   All .........................   EER = 12.1 ..........   October 29, 2003.
                                                 ditioning and Heating Equipment
                                                 (Evaporatively-Cooled).
                                                                                              ≥65,000 Btu/h and            AC ........................   No Heating or                   EER = 12.1 ..........   June 1, 2013.
                                                                                                <135,000 Btu/h.                                             Electric Resist-
                                                                                                                                                            ance Heating.
                                                                                                                                                         All Other Types of              EER = 11.9 ..........   June 1, 2013.
                                                                                                                                                            Heating.
                                                Large Commercial Package Air-Con-             ≥135,000 Btu/h               AC ........................   No Heating or                   EER = 12.0 ..........   June 1, 2014.
                                                  ditioning and Heating Equipment               and <240,000                                                Electric Resist-
                                                  (Evaporatively-Cooled).                       Btu/h.                                                      ance Heating.
                                                                                                                                                         All Other Types of              EER = 11.8 ..........   June 1, 2014.
                                                                                                                                                            Heating.
                                                Very Large Commercial Package Air             ≥240,000 Btu/h               AC ........................   No Heating or                   EER = 11.9 ..........   June 1, 2014.
                                                  Conditioning and Heating Equip-               and <760,000                                                Electric Resist-
                                                  ment (Evaporatively-Cooled).                  Btu/h.                                                      ance Heating.
                                                                                                                                                         All Other Types of              EER = 11.7 ..........   June 1, 2014.
                                                                                                                                                            Heating.
                                                Small Commercial Package Air-Con-             <17,000 Btu/h ......         HP ........................   All .........................   EER = 11.2 ..........   October 29, 2003.3
                                                 ditioning and Heating Equipment
                                                 (Water-Source: Water-to-Air, Water-
                                                 Loop).
                                                                                              ≥17,000 Btu/h and            HP ........................   All .........................   EER = 12.0 ..........   October 29, 2003.3
                                                                                                <65,000 Btu/h.
                                                                                              ≥65,000 Btu/h and            HP ........................   All .........................   EER = 12.0 ..........   October 29, 2003.3
                                                                                                <135,000 Btu/h.
                                                   1 And manufactured before January 1, 2017. See Table 3 of this section for updated efficiency standards.
                                                   2 And manufactured before January 1, 2018. See Table 3 of this section for updated efficiency standards.
                                                   3 And manufactured before October 9, 2015. See Table 3 of this section for updated efficiency standards.



                                                   TABLE 2 TO § 431.97—MINIMUM HEATING EFFICIENCY STANDARDS FOR AIR CONDITIONING AND HEATING EQUIPMENT
                                                                                                                    [Heat pumps]
                                                 [Not including single package vertical air conditioners and single package vertical heat pumps, packaged terminal air conditioners and packaged
                                                    terminal heat pumps, computer room air conditioners, variable refrigerant flow multi-split air conditioners and heat pumps, and double-duct
                                                    air-cooled commercial package air conditioning and heating equipment]

                                                                                                                                                                                                   Compliance date: Equipment
                                                                 Equipment type                                  Cooling capacity                                Efficiency level                  manufactured starting on . . .

                                                Small Commercial Package Air Conditioning               <65,000 Btu/h ..........................     HSPF = 7.7 .............................      June 16, 2008.1
                                                  and Heating Equipment (Air-Cooled, 3-
                                                  Phase, Split-System).
tkelley on DSK3SPTVN1PROD with PROPOSALS




                                                Small Commercial Package Air-Conditioning               <65,000 Btu/h ..........................     HSPF = 7.7 .............................      June 16, 2008.1
                                                  and Heating Equipment (Air-Cooled, 3-
                                                  Phase, Single-Package).
                                                Small Commercial Package Air Conditioning               ≥65,000 Btu/h and <135,000                   COP = 3.3 ...............................     January 1, 2010.2
                                                  and Heating Equipment (Air-Cooled).                     Btu/h.
                                                Large Commercial Packaged Air Condi-                    ≥135,000 Btu/h and <240,000                  COP = 3.2 ...............................     January 1, 2010.2
                                                  tioning and Heating Equipment (Air-                     Btu/h.
                                                  Cooled).



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                                                                          Federal Register / Vol. 81, No. 10 / Friday, January 15, 2016 / Proposed Rules                                                                  2127

                                                  TABLE 2 TO § 431.97—MINIMUM HEATING EFFICIENCY STANDARDS FOR AIR CONDITIONING AND HEATING EQUIPMENT—
                                                                                                Continued
                                                                                                                    [Heat pumps]
                                                 [Not including single package vertical air conditioners and single package vertical heat pumps, packaged terminal air conditioners and packaged
                                                    terminal heat pumps, computer room air conditioners, variable refrigerant flow multi-split air conditioners and heat pumps, and double-duct
                                                    air-cooled commercial package air conditioning and heating equipment]

                                                                                                                                                                                             Compliance date: Equipment
                                                                 Equipment type                                 Cooling capacity                           Efficiency level                  manufactured starting on . . .

                                                Very Large Commercial Packaged Air Con-                ≥240,000 Btu/h and <760,000               COP = 3.2 ...............................   January 1, 2010.2
                                                  ditioning and Heating Equipment (Air-                  Btu/h.
                                                  Cooled).
                                                Small Commercial Packaged Air Condi-                   <135,000 Btu/h ........................   COP = 4.2 ...............................   October 29, 2003.
                                                  tioning and Heating Equipment (Water-
                                                  Source: Water-to-Air, Water-Loop).
                                                   1   And manufactured before January 1, 2017. See Table 4 of this section for updated heating efficiency standards.
                                                   2   And manufactured before January 1, 2018. See Table 4 of this section for updated heating efficiency standards.

                                                        TABLE 3 TO § 431.97—UPDATES TO THE MINIMUM COOLING EFFICIENCY STANDARDS FOR AIR CONDITIONING AND
                                                                                               HEATING EQUIPMENT
                                                 [Not including single package vertical air conditioners and single package vertical heat pumps, packaged terminal air conditioners and packaged
                                                    terminal heat pumps, computer room air conditioners, variable refrigerant flow multi-split air conditioners and heat pumps, and double-duct
                                                    air-cooled commercial package air conditioning and heating equipment]

                                                                                                                                                                                                                  Compliance
                                                                                                                                                                                                                date: Equipment
                                                            Equipment type                Cooling capacity        Sub-category              Heating type                     Efficiency level                    manufactured
                                                                                                                                                                                                                starting on . . .

                                                Small Commercial Packaged Air             ≥65,000 Btu/h         AC ....................   Electric Resist- IEER = 12.9 ................................         January 1,
                                                 Conditioning   and    Heating              and <135,000                                    ance Heating   IEER = 14.8 ................................           2018.1
                                                 Equipment (Air-Cooled).                    Btu/h.                                          or No Heating.                                                      January 1,
                                                                                                                                                                                                                  2023.
                                                                                                                                          All Other Types        IEER = 12.7 ................................   January 1,
                                                                                                                                             of Heating.         IEER = 14.6 ................................     2018.1
                                                                                                                                                                                                                January 1,
                                                                                                                                                                                                                  2023.
                                                                                                                HP ....................   Electric Resist- IEER = 12.2 ................................         January 1,
                                                                                                                                            ance Heating   IEER = 14.1 ................................           2018.1
                                                                                                                                            or No Heating.                                                      January 1,
                                                                                                                                                                                                                  2023.
                                                                                                                                          All Other Types        IEER = 12.0 ................................   January 1,
                                                                                                                                             of Heating.         IEER = 13.9 ................................     2018.1
                                                                                                                                                                                                                January 1,
                                                                                                                                                                                                                  2023.
                                                Large Commercial Packaged Air             ≥135,000 Btu/h        AC ....................   Electric Resist- IEER = 12.4 ................................         January 1,
                                                  Conditioning   and     Heating            and <240,000                                    ance Heating   IEER = 14.2 ................................           2018.1
                                                  Equipment (Air-Cooled).                   Btu/h.                                          or No Heating.                                                      January 1,
                                                                                                                                                                                                                  2023.
                                                                                                                                          All Other Types        IEER = 12.2 ................................   January 1,
                                                                                                                                             of Heating.         IEER = 14.0 ................................     2018.1
                                                                                                                                                                                                                January 1,
                                                                                                                                                                                                                  2023.
                                                                                                                HP ....................   Electric Resist- IEER = 11.6 ................................         January 1,
                                                                                                                                            ance Heating   IEER = 13.5 ................................           2018.1
                                                                                                                                            or No Heating.                                                      January 1,
                                                                                                                                                                                                                  2023.
                                                                                                                                          All Other Types        IEER = 11.4 ................................   January 1,
                                                                                                                                             of Heating.         IEER = 13.3 ................................     2018.1
                                                                                                                                                                                                                January 1,
                                                                                                                                                                                                                  2023.
                                                Very Large Commercial Pack-               ≥240,000 Btu/h        AC ....................   Electric Resist- IEER = 11.6 ................................         January 1,
                                                  aged Air Conditioning and                 and <760,000                                    ance Heating   IEER = 13.2 ................................           2018.1
                                                  Heating  Equipment    (Air-               Btu/h.                                          or No Heating.                                                      January 1,
                                                  Cooled).                                                                                                                                                        2023.
tkelley on DSK3SPTVN1PROD with PROPOSALS




                                                                                                                                          All Other Types        IEER = 11.4 ................................   January 1,
                                                                                                                                             of Heating.         IEER = 13.0 ................................     2018.1
                                                                                                                                                                                                                January 1,
                                                                                                                                                                                                                  2023.
                                                                                                                HP ....................   Electric Resist- IEER = 10.6 ................................         January 1,
                                                                                                                                            ance Heating   IEER = 12.5 ................................           2018.1
                                                                                                                                            or No Heating.                                                      January 1,
                                                                                                                                                                                                                  2023.



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                                                2128                     Federal Register / Vol. 81, No. 10 / Friday, January 15, 2016 / Proposed Rules

                                                     TABLE 3 TO § 431.97—UPDATES TO THE MINIMUM COOLING EFFICIENCY STANDARDS FOR AIR CONDITIONING AND
                                                                                      HEATING EQUIPMENT—Continued
                                                 [Not including single package vertical air conditioners and single package vertical heat pumps, packaged terminal air conditioners and packaged
                                                    terminal heat pumps, computer room air conditioners, variable refrigerant flow multi-split air conditioners and heat pumps, and double-duct
                                                    air-cooled commercial package air conditioning and heating equipment]

                                                                                                                                                                                                                           Compliance
                                                                                                                                                                                                                         date: Equipment
                                                           Equipment type                Cooling capacity        Sub-category               Heating type                         Efficiency level                         manufactured
                                                                                                                                                                                                                         starting on . . .

                                                                                                                                         All Other Types             IEER = 10.4 ................................        January 1,
                                                                                                                                            of Heating.              IEER = 12.3 ................................          2018.1
                                                                                                                                                                                                                         January 1,
                                                                                                                                                                                                                           2023.
                                                Small Commercial Package Air-            <65,000 Btu/h ...     AC ....................   All .....................   SEER = 13.0 ...............................         June 16, 2008.
                                                 Conditioning    and     Heating
                                                 Equipment     (Air-Cooled,   3-
                                                 Phase, Split-System).
                                                                                                               HP ....................   All .....................   SEER = 14.0 ...............................         January 1,
                                                                                                                                                                                                                           2017.
                                                Small Commercial Package Air-            <65,000 Btu/h ...     AC ....................   All .....................   SEER = 14.0 ...............................         January 1,
                                                 Conditioning   and     Heating                                                                                                                                            2017.
                                                 Equipment    (Air-Cooled,   3-
                                                 Phase, Single-Package).
                                                                                                               HP ....................   All .....................   SEER = 14.0 ...............................         January 1,
                                                                                                                                                                                                                           2017.
                                                Small Commercial Packaged Air-           <17,000 Btu/h ...     HP ....................   All .....................   EER = 12.2 .................................        October 9,
                                                 Conditioning    and    Heating                                                                                                                                            2015.
                                                 Equipment (Water Source:
                                                 Water-to-Air, Water-Loop).
                                                                                         ≥17,000 Btu/h         HP ....................   All .....................   EER = 13.0 .................................        October 9,
                                                                                           and <65,000                                                                                                                    2015.
                                                                                           Btu/h.
                                                                                         ≥65,000 Btu/h         HP ....................   All .....................   EER = 13.0 .................................        October 9,
                                                                                           and <135,000                                                                                                                   2015.
                                                                                           Btu/h.
                                                   1 And   manufactured before January 1, 2023.

                                                TABLE 4 TO § 431.97—UPDATES TO THE MINIMUM HEATING EFFICIENCY STANDARDS FOR AIR-COOLED AIR CONDITIONING
                                                                                        AND HEATING EQUIPMENT
                                                                                                                    [Heat Pumps]
                                                 [Not including single package vertical air conditioners and single package vertical heat pumps, packaged terminal air conditioners and packaged
                                                    terminal heat pumps, computer room air conditioners, variable refrigerant flow multi-split air conditioners and heat pumps, and double-duct
                                                    air-cooled commercial package air conditioning and heating equipment]

                                                                                                                                                                                                              Compliance date:
                                                                      Equipment type                                          Cooling capacity                           Efficiency level 1                equipment manufactured
                                                                                                                                                                                                               starting on . . .

                                                Small Commercial Package Air Conditioning and Heat-                <65,000 Btu/h ...........................         HSPF = 8.2 ................          January 1, 2017.
                                                  ing Equipment (Air-Cooled, 3-Phase, Split-Sytem).
                                                Small Commercial Package Air Conditioning and Heat-                <65,000 Btu/h ...........................         HSPF = 8.0 ................          January 1, 2017.
                                                  ing Equipment (Air-Cooled, 3-Phase, Single Pack-
                                                  age).
                                                Small Commercial Package Air Conditioning and Heat-                <135,000 Btu/h .........................          COP = 4.3 ..................         October 9, 2015.
                                                  ing Equipment (Water-Source: Water-to-Air, Water-
                                                  Loop).
                                                Small Commercial Packaged Air Conditioning and                     ≥65,000 Btu/h and <135,000                        COP   =   3.3   ..................   January   1,   2018.2.
                                                  Heating Equipment (Air-Cooled).                                    Btu/h.                                          COP   =   3.4   ..................   January   1,   2023.
                                                Large Commercial Packaged Air Conditioning and                     ≥135,000 Btu/h and <240,000                       COP   =   3.2   ..................   January   1,   2018.2.
                                                  Heating Equipment (Air-Cooled).                                    Btu/h.                                          COP   =   3.3   ..................   January   1,   2023.
                                                Very Large Commercial Packaged Air Conditioning and                ≥240,000 Btu/h and <760,000                       COP   =   3.2   ..................   January   1,   2018.
                                                  Heating Equipment (Air-Cooled).                                    Btu/h.
tkelley on DSK3SPTVN1PROD with PROPOSALS




                                                 1 For units tested using the relevant AHRI Standards, all COP values must be rated at 47 °F outdoor dry-bulb temperature for air-cooled equip-
                                                ment.
                                                 2 And manufactured before January 1, 2023.




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                                                                         Federal Register / Vol. 81, No. 10 / Friday, January 15, 2016 / Proposed Rules                                                    2129

                                                 TABLE 5 TO § 431.97—MINIMUM COOLING EFFICIENCY STANDARDS FOR DOUBLE-DUCT AIR-CONDITIONING AND HEATING
                                                                                               EQUIPMENT
                                                                                                                                                                                                 Compliance
                                                                                                                                                                                  Efficiency     date: equipment
                                                          Equipment type                      Cooling capacity             Sub-category               Heating type                   level       manufactured
                                                                                                                                                                                                 starting on. . .

                                                Small Double-Duct Commercial ≥65,000 Btu/h and                            AC                 Electric Resistance Heat-          EER = 11.2 ..    January 1, 2010.
                                                 Packaged Air Conditioning and   <135,000 Btu/h.                                               ing or No Heating.
                                                 Heating Equipment (Air-Cooled).
                                                                                                                                             All Other Types of Heating         EER = 11.0 ..    January 1, 2010.
                                                                                                                          HP                 Electric Resistance Heat-          EER = 11.0 ..    January 1, 2010.
                                                                                                                                               ing or No Heating.
                                                                                                                                             All Other Types of Heating         EER = 10.8 ..    January 1, 2010.
                                                Large Commercial Double-Duct ≥135,000 Btu/h and                           AC                 Electric Resistance Heat-          EER = 11.0 ..    January 1, 2010.
                                                  Packaged Air Conditioning and   <240,000 Btu/h.                                              ing or No Heating.
                                                  Heating Equipment (Air-Cooled).
                                                                                                                                             All Other Types of Heating         EER = 10.8 ..    January 1, 2010.
                                                                                                                          HP                 Electric Resistance Heat-          EER = 10.6 ..    January 1, 2010.
                                                                                                                                               ing or No Heating.
                                                                                                                                             All Other Types of Heating         EER = 10.4 ..    January 1, 2010.
                                                Very Large Double-Duct Commer-            ≥240,000 Btu/h and              AC                 Electric Resistance Heat-          EER = 10.0 ..    January 1, 2010.
                                                  cial Packaged Air Conditioning            <300,000 Btu/h.                                    ing or No Heating.
                                                  and Heating Equipment (Air-
                                                  Cooled).
                                                                                                                                             All Other Types of Heating         EER = 9.8 ....   January 1, 2010.
                                                                                                                          HP                 Electric Resistance Heat-          EER = 9.5 ....   January 1, 2010.
                                                                                                                                               ing or No Heating.
                                                                                                                                             All Other Types of Heating         EER = 9.3 ....   January 1, 2010.


                                                  TABLE 6 TO § 431.97—MINIMUM HEATING EFFICIENCY STANDARDS FOR DOUBLE-DUCT AIR-COOLED AIR CONDITIONING
                                                                                         AND HEATING EQUIPMENT
                                                                                                                            [Heat pumps]

                                                                                                                                                                                     Compliance date:
                                                                                                                                                                     Efficiency
                                                                 Equipment type                               Cooling capacity              Heating type                             Equipment manufactured
                                                                                                                                                                       level 1       starting on . . .

                                                Small Commercial Packaged Air Conditioning              ≥65,000 Btu/h and             Electric Resistance        COP = 3.3 ....      January 1, 2010.
                                                 and Heating Equipment (Air-Cooled).                      <135,000 Btu/h                 Heating or No Heat-
                                                                                                                                         ing.
                                                                                                                                      All Other Types of         COP = 3.3 ....      January 1, 2010.
                                                                                                                                        Heating.
                                                Large Commercial Packaged Air-Conditioning              ≥135,000 Btu/h and            Electric Resistance        COP = 3.2 ....      January 1, 2010.
                                                  and Heating Equipment (Air-Cooled).                     <240,000 Btu/h                 Heating or No Heat-
                                                                                                                                         ing.
                                                                                                                                      All Other Types of         COP = 3.2 ....      January 1, 2010.
                                                                                                                                        Heating
                                                Very Large Commercial Packaged Air Condi-               ≥240,000 Btu/h and            Electric Resistance        COP = 3.2           January 1, 2010.
                                                  tioning and Heating Equipment (Air-Cooled).             <300,000 Btu/h                 Heating or No Heat-
                                                                                                                                         ing.
                                                                                                                                      All Other Types of         COP = 3.2           January 1, 2010.
                                                                                                                                        Heating.
                                                  1 For units tested using the relevant AHRI Standards, all COP values must be rated at 47 °F outdoor dry-bulb temperature for air-cooled
                                                equipment.


                                                  (c) Each packaged terminal air                        starting on October 7, 2010, must meet                 SMALL BUSINESS ADMINISTRATION
                                                conditioner (PTAC) and packaged                         the applicable minimum energy
                                                terminal heat pump (PTHP)                               efficiency standard level(s) set forth in              13 CFR Part 120
                                                manufactured starting on January 1,                     Table 6 of this section.                               RIN 3245–AG76
                                                1994, but before October 8, 2012 (for                   *     *     *     *    *
                                                standard size PTACs and PTHPs) and                      [FR Doc. 2015–33069 Filed 1–14–16; 8:45 am]            Economic Development Investments
                                                before October 7, 2010 (for non-standard                                                                       for Certified Development Companies
tkelley on DSK3SPTVN1PROD with PROPOSALS




                                                                                                        BILLING CODE 6450–01–P
                                                size PTACs and PTHPs) must meet the                                                                            AGENCY: U.S. Small Business
                                                applicable minimum energy efficiency                                                                           Administration.
                                                standard level(s) set forth in Table 7 of
                                                                                                                                                               ACTION: Advance notice of proposed
                                                this section. Each standard size PTAC                                                                          rulemaking.
                                                and PTHP manufactured starting on
                                                October 8, 2012, and each non-standard                                                                         SUMMARY: The U.S. Small Business
                                                size PTAC and PTHP manufactured                                                                                Administration (SBA) is soliciting


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Document Created: 2018-02-02 12:32:08
Document Modified: 2018-02-02 12:32:08
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionProposed Rules
ActionSupplemental notice of proposed rulemaking.
DatesDOE will accept comments, data, and information regarding the proposed standards no later than May 4, 2016.
ContactMr. John Cymbalsky, U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, Building Technologies, EE-5B, 1000 Independence Avenue SW., Washington, DC 20585-0121. Telephone: (202) 286-1692. Email: [email protected]
FR Citation81 FR 2111 
RIN Number1904-AC95 and 1904-AD11
CFR AssociatedAdministrative Practice and Procedure; Confidential Business Information; Energy Conservation; Household Appliances; Imports; Intergovernmental Relations; Reporting and Recordkeeping Requirements and Small Businesses

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