[Federal Register: January 2, 2008 (Volume 73, Number 1)]
[Notices]               
[Page 179-186]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr02ja08-51]                         

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DEPARTMENT OF ENERGY

Office of Energy Efficiency and Renewable Energy

 
Energy Conservation Program for Consumer Products: Publication of 
the Petition for Waiver From Sanyo Fisher Company and Granting of the 
Application for Interim Waiver From the Department of Energy 
Residential and Commercial Central Air Conditioner and Heat Pump Test 
Procedures [Case No. CAC-017]

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

ACTION: Notice of petition for waiver, granting of application for 
interim waiver, and request for comments.

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SUMMARY: This notice announces receipt of and publishes a Petition for 
Waiver from Sanyo Fisher Company, (Sanyo). The Petition for Waiver 
(hereafter ``Sanyo Petition'') requests a waiver of the Department of 
Energy (DOE) test procedures applicable to residential and commercial 
central air conditioners and heat pumps. The waiver request is specific 
to the Sanyo Variable Refrigerant Flow (VRF) ECO-i multi-split heat 
pumps and heat recovery systems. Through this document, DOE

[[Page 180]]

is: (1) Soliciting comments, data, and information with respect to the 
Sanyo Petition; and (2) granting an Interim Waiver to Sanyo from the 
DOE test procedures for residential and commercial central air 
conditioners and heat pumps.

DATES: DOE will accept comments, data, and information with respect to 
the Sanyo Petition until, but no later than February 1, 2008.

ADDRESSES: You may submit comments, identified by case number [CAC-
017], by any of the following methods:
     Federal eRulemaking Portal: http://www.regulations.gov. 

Follow the instructions for submitting comments.
case number [CAC-017], and/or ``Sanyo Petition'' in the subject line of 
the message.
     Mail: Ms. Brenda Edwards-Jones, U.S. Department of Energy, 
Building Technologies Program, Mailstop EE-2J, Forrestal Building, 1000 
Independence Avenue, SW., Washington, DC 20585-0121. Telephone: (202) 
586-2945. Please submit one signed original paper copy.
     Hand Delivery/Courier: Ms. Brenda Edwards-Jones, U.S. 
Department of Energy, Building Technologies Program, 950 L'Enfant 
Plaza, SW., Washington, DC 20585-0121. Please submit one signed 
original paper copy.
    Instructions: All submissions received must include the agency name 
and case number for this proceeding. Submit electronic comments in 
WordPerfect, Microsoft Word, Portable Document Format (PDF), or text 
(American Standard Code for Information Interchange (ASCII)) file 
format, and avoid the use of special characters or any form of 
encryption. Wherever possible, include the electronic signature of the 
author. Absent an electronic signature, comments submitted 
electronically must be followed and authenticated by submitting the 
signed original paper document. DOE does not accept telefacsimiles 
(faxes).
    Any person submitting written comments must also send a copy of 
such comments to the petitioner, pursuant to 10 CFR 430.27(d) and 10 
CFR 431.401(d). The contact information for the petitioner is: Mr. 
Davis Watkins, Vice President, Applied Products Group, Sanyo Fisher 
Company, 1690 Roberts Blvd., NW., Suite 110, Kennesaw, GA 30144. 
Telephone: (678) 384-3112. E-mail: dwatkins@sss.sanyo.com.
    According 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 two copies: One copy of the document including 
all the information believed to be confidential, and one copy of the 
document with the information believed to be confidential deleted. DOE 
will make its own determination about the confidential status of the 
information and treat it according to its determination.
    Docket: For access to the docket to review the documents relevant 
to this matter, you may visit the U.S. Department of Energy, 950 
L'Enfant Plaza (Resource Room of the Building Technologies Program), 
Washington, DC, (202) 586-2945, between 9 a.m. and 4 p.m., Monday 
through Friday, except Federal holidays. Available documents include 
the following items: (1) This notice; (2) public comments received; (3) 
the Petition for Waiver and Application for Interim Waiver; and (4) 
prior DOE rulemakings regarding central air conditioners and heat 
pumps. Please call Ms. Brenda Edwards-Jones at the above telephone 
number for additional information regarding visiting the Resource Room. 
Please note that DOE's Freedom of Information Reading Room (formerly 
Room 1E-190 at the Forrestal Building) is no longer housing rulemaking 
materials.

FOR FURTHER INFORMATION CONTACT: Dr. Michael G. Raymond, U.S. 
Department of Energy, Building Technologies Program, Mail Stop EE-2J, 
Forrestal Building, 1000 Independence Avenue, SW., Washington, DC 
20585-0121. Telephone: (202) 586-9611. E-mail: 
Michael.Raymond@ee.doe.gov.

    Ms. Francine Pinto or Mr. Eric Stas, U.S. Department of Energy, 
Office of the General Counsel, Mail Stop GC-72, Forrestal Building, 
1000 Independence Avenue, SW., Washington, DC 20585-0103. Telephone: 
(202) 586-9507. E-mail: 
Francine.Pinto@hq.doe.gov or Eric.Stas@hq.doe.gov.



SUPPLEMENTARY INFORMATION: 

Table of Contents

I. Background and Authority
II. Petition for Waiver
III. Application for Interim Waiver
IV. Alternate Test Procedure
V. Summary and Request for Comments

I. Background and Authority

    Title III of the Energy Policy and Conservation Act (EPCA) sets 
forth a variety of provisions concerning energy efficiency. Part B of 
Title III establishes the ``Energy Conservation Program for Consumer 
Products Other Than Automobiles.'' (42 U.S.C. 6291-6309) Similar to the 
Program in Part B, Part C of Title III provides for an energy 
efficiency program titled ``Certain Industrial Equipment,'' which 
includes commercial air conditioning and heating equipment, package 
boilers, water heaters, and other types of commercial equipment. (42 
U.S.C. 6311-6317)
    This notice involves residential products under Part B, as well as 
commercial equipment under Part C. Under both parts, the statute 
specifically includes definitions, test procedures, labeling 
provisions, energy conservation standards, and the authority to require 
information and reports from manufacturers. (42 U.S.C. 6291-6296; 6311-
6316) With respect to test procedures, both parts authorize the 
Secretary of Energy (the Secretary) to prescribe test procedures that 
are reasonably designed to produce results which reflect energy 
efficiency, energy use, and estimated annual operating costs, and that 
are not unduly burdensome to conduct. (42 U.S.C. 6293(b)(3); 
6314(a)(2))
    Relevant to the current Petition for Waiver, the test procedure for 
residential central air conditioning and heat pump products is set 
forth in 10 CFR Part 430, Subpart B, Appendix M. For commercial package 
air conditioning and heating equipment, EPCA provides that ``the test 
procedures shall be those generally accepted industry testing 
procedures or rating procedures developed or recognized by the Air-
Conditioning and Refrigeration Institute [ARI] or by the American 
Society of Heating, Refrigerating and Air-Conditioning Engineers 
[ASHRAE], as referenced in ASHRAE/IES [Illuminating Engineering Society 
of North America] Standard 90.1 and in effect on June 30, 1992.'' (42 
U.S.C. 6314(a)(4)(A)) Under 42 U.S.C. 6314(a)(4)(B), the statute 
further directs the Secretary to amend the test procedure for a covered 
commercial product if the industry test procedure is amended, unless 
the Secretary determines that such a modified test procedure does not 
meet the statutory criteria set forth in 42 U.S.C. 6314(a)(2) and (3).
    On December 8, 2006, DOE published a final rule in the Federal 
Register adopting test procedures for commercial package air 
conditioning and heating equipment, effective January 8, 2007. 71 FR 
71340. DOE adopted ARI Standard 210/240-2003 for commercial package air 
conditioning and heating equipment with capacities < 65,000 British 
thermal units per hour (Btu/h) and ARI Standard 340/360-2004 for 
commercial package air conditioning and heating equipment with 
capacities >=65,000 Btu/h and <240,000 Btu/h. Id. at 71371. Pursuant

[[Page 181]]

to this rulemaking, DOE's regulations at 10 CFR 431.95(b)(2) 
incorporate by reference the relevant ARI standards, and DOE's 
regulations at 10 CFR 431.96 direct manufacturers of commercial package 
air conditioning and heating equipment to use the appropriate procedure 
when measuring energy efficiency of those products. (The cooling 
capacities of Sanyo's ECO-i VFR commercial and residential multi-split 
products respectively fall in the ranges covered by ARI Standard 340/
360-2004 and the DOE test procedure for residential products referred 
to above.)
    DOE's regulations contain provisions allowing a person to seek a 
waiver from the test procedure requirements for covered consumer 
products, if the petitioner's basic model contains one or more design 
characteristics that prevent testing according to the prescribed test 
procedures, or if the test procedures may evaluate the basic product in 
a manner so unrepresentative of its true energy consumption as to 
provide materially inaccurate comparative data. 10 CFR 430.27(a)(1). 
The waiver provisions for commercial equipment are substantively 
identical to those for covered consumer products and are found at 10 
CFR 431.401(a)(1). Petitioners must include in their petition any 
alternate test procedures known to evaluate the basic model in a manner 
representative of its energy consumption. 10 CFR 430.27(b)(1)(iii); 10 
CFR 431.401(b)(1)(iii). The Assistant Secretary for Energy Efficiency 
and Renewable Energy (the Assistant Secretary) may grant the waiver 
subject to conditions, including adherence to alternate test 
procedures. 10 CFR 430.27(l); 10 CFR 431.401(f)(4). Waivers generally 
remain in effect until the effective date of a final rule which 
prescribes amended test procedures appropriate to the model series 
manufactured by the petitioner, thereby eliminating any need for the 
continuation of the waiver. 10 CFR 430.27(m); 431.401(g).
    The waiver process also permits parties submitting a Petition for 
Waiver to file an Application for Interim Waiver from the prescribed 
test procedure requirements. 10 CFR 430.27(a)(2); 10 CFR 431.401(a)(2). 
The Assistant Secretary will grant an Interim Waiver request if it is 
determined that the applicant will experience economic hardship if the 
Interim Waiver is denied, if it appears likely that the Petition for 
Waiver will be granted, and/or the Assistant Secretary determines that 
it would be desirable for public policy reasons to grant immediate 
relief pending a determination on the Petition for Waiver. 10 CFR 
430.27(g); 10 CFR 431.401(e)(3). An Interim Waiver remains in effect 
for a period of 180 days or until DOE issues its determination on the 
Petition for Waiver, whichever is sooner, and may be extended for an 
additional 180 days, if necessary. 10 CFR 430.27(h); 10 CFR 
431.401(e)(4).

II. Petition for Waiver

    On February 22, 2007, Sanyo filed a Petition for Waiver from the 
test procedures applicable to residential and commercial package air-
conditioning and heating equipment and an Application for Interim 
Waiver. The applicable test procedure for Sanyo's residential ECO-i 
multi-split products is the DOE residential test procedure found in 10 
CFR Part 430, Subpart B, Appendix M. For Sanyo's commercial ECO-i 
multi-split products, the applicable test procedure is ARI 340/360-
2004, because, as discussed in the previous section I above (Background 
and Authority), this is the test procedure specified in Tables 1 and 2 
to 10 CFR 431.96.
    Sanyo seeks a waiver from the DOE test procedures for this product 
class on the grounds that its ECO-i multi-split heat pump and heat 
recovery systems contain design characteristics that prevent testing 
according to the current DOE test procedures. Specifically, Sanyo 
asserts that the two primary factors that prevent testing of multi-
split variable speed products, regardless of manufacturer, are the same 
factors stated in the waiver granted to Mitsubishi Electric & 
Electronics USA, Inc. (Mitsubishi) for a similar line of commercial 
multi-splits:
     Testing laboratories cannot test products with so many 
indoor units.
     There are too many possible combinations of indoor and 
outdoor units to test.

69 FR 52660, 52661 (August 27, 2004).

    Further, Sanyo states that its ECO-i product offering is a multi-
split system incorporating a diverse amount and configuration of indoor 
units for connection to a single outdoor unit, and that it is 
impractical to test the performance of each system under the current 
DOE test procedure. The number of connectable indoor units for each 
outdoor unit ranges from 6 to 28. Furthermore, the indoor units are 
designed to operate at many different external static pressure values, 
which compounds the difficulty of testing. A testing facility could not 
manage proper airflow at several different external static pressure 
values for the many indoor units that would be connected to an ECO-i 
outdoor unit.
    Accordingly, Sanyo requests that DOE grant a test procedure waiver 
for its ECO-i product designs, until a suitable test method can be 
prescribed. Furthermore, Sanyo states that failure to grant the waiver 
would result in economic hardship because it would prevent the company 
from marketing its ECO-i products. Also, Sanyo states that it is 
willing to work closely with DOE, the Air-Conditioning and 
Refrigeration Institute (ARI), and other agencies to develop 
appropriate test procedures, as necessary.

III. Application for Interim Waiver

    On February 22, 2007, in addition to its Petition for Waiver, Sanyo 
also submitted an Application for Interim Waiver to DOE. Sanyo's 
Application for Interim Waiver does not provide sufficient information 
to evaluate the level of economic hardship Sanyo will likely experience 
if its Application for Interim Waiver is denied. However, in those 
instances where the likely success of the Petition for Waiver has been 
demonstrated, based upon DOE having granted a waiver for a similar 
product design, it is in the public interest to have similar products 
tested and rated for energy consumption on a comparable basis. DOE has 
previously granted Interim Waivers to Fujitsu, Samsung, and Daikin for 
comparable residential and commercial multi-split air conditioners and 
heat pumps. 70 FR 5980 (Feb. 4, 2005); 70 FR 9629 (Feb. 28, 2005); 72 
FR 53237 (Sept. 18, 2007), respectively.
    Moreover, as noted above, DOE approved the Petition for Waiver from 
Mitsubishi for its comparable line of commercial multi-split air 
conditioners and heat pumps. 69 FR 52660 (August 27, 2004). The two 
principal reasons for granting these waivers also apply to Sanyo's VRV-
II-S products: (1) Test laboratories cannot test products with so many 
indoor units \1\; and (2) it is impractical to test so many 
combinations of indoor units with each outdoor unit. Thus, DOE has 
determined that it is likely that Sanyo's Petition for Waiver will be 
granted for its new ECO-i multi-split models. Therefore, it is ordered 
that:
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    \1\ According to the Sanyo petition, up to 28 indoor units are 
possible candidates for testing of its residential and commercial 
multi-split air conditioners and heat pumps. However, DOE believes 
that the practical limits for testing would be about five units.
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    The Application for Interim Waiver filed by Sanyo is hereby granted 
for Sanyo's ECO-i multi-split central air conditioners and central air-
conditioning heat pumps, subject to the specifications and conditions 
below.

[[Page 182]]

The Interim Waiver applies to the following models:
    1. Sanyo shall not be required to test or rate its ECO-i 
residential products on the basis of the currently applicable test 
procedure, which is set forth in 10 CFR 430, Subpart B, Appendix M. 
Sanyo shall not be required to test or rate its ECO-i commercial 
products on the basis of the currently applicable test procedure, which 
is set forth in ARI Standard 340/360-2004.
    2. Sanyo shall be required to test and rate its ECO-i products 
according to the alternate test procedure as set forth below in section 
IV(3), ``Alternate test procedure.''

    Outdoor units:

                                                           ECO-i Outdoor Model Identification
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                      Nominal Capacity
               Model                 --------------------------------               Type                 Phase       Voltage       Connectable
                                                   Cooling         Heating                                                                 Indoor Units
--------------------------------------------------------------------------------------------------------------------------------------------------------
CHX3652......................................          38,200          42,700  Heat Pump.......................        1         208-230               6
CHX06052.....................................          52,900          60,000  Heat Pump.......................        1         208-230               9
CHDX09053....................................          95,500         107,500  Heat Pump.......................        3         208-230              16
CHDZ09053....................................          95,500         107,500  Heat Recovery (Simultaneous             3         208-230              16
                                                                                heating/cooling).
CHDX14053....................................         153,600         170,600  Heat Pump.......................        3         208-230              28
CHDZ14053....................................         153,600         170,600  Heat Recovery (Simultaneous             3         208-230              28
                                                                                heating/cooling).
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Indoor units:

     AHX**52 Series; Ceiling Cassette, 1 Way Air Discharge, 
7,500/9,600/12,000 BTU/hr nominal capacities.
     DHX**52 Series; Concealed Ducted, Medium External Static, 
36,000/47,800 BTU/hr nominal capacities.
     FHX**52 Series; Exposed Floor Standing, 7,500/9,600/
12,000/19,000/25,000 BTU/hr nominal capacities.
     FMHX**52 Series; Concealed Floor Standing, 7,500/9,600/
12,000/19,000/25,000 BTU/hr nominal capacities.
     KHX**52 Series; Wall Mounted, 7,500/9,600/12,000/19,000/
25,000 BTU/hr nominal capacities.
     LHX**52 Series; Ceiling Mount Slim Design 1 Way Air 
Discharge, 12,000/19,000/25,000 BTU/hr nominal capacities.
     SHX**52 Series; Ceiling Cassette, 2 Way Air Discharge, 
7,500/9,600/12,000/19,000/25,000/36,000/47,800 BTU/hr nominal 
capacities.
     THX**52 Series; Ceiling Suspended, 12,000/19,000/25,000 
BTU/hr nominal capacities.
     UHX**52 Series; Concealed Ducted, Low External Static, 
7,500/9,600/12,000/19,000/25,000/36,000 BTU/hr nominal capacities.
     UMHX**52 Series; Concealed Slim Ducted, Low External 
Static, 7,500/9,600/12,000/19,000/25,000 BTU/hr nominal capacities.
     XHX**52 Series; Ceiling Cassette, 4 Way Air Discharge, 
12,000/19,000/25,000/36,000 BTU/hr nominal capacities.
     XMHX**52 Series, Mini Ceiling Cassette, 4 Way Air 
Discharge, 7,500/9,600/12,000/19,000/25,000 BTU/hr nominal capacities.
    This Interim Waiver is conditioned upon the presumed validity of 
statements, representations, and documentary materials provided by the 
petitioner. DOE may revoke or modify this Interim Waiver at any time 
upon a determination that the factual basis underlying the Petition for 
Waiver is incorrect, or upon a determination that the results from the 
alternate test procedure are unrepresentative of the basic models' true 
energy consumption characteristics.

IV. Alternate Test Procedure

    In response to two recent Petitions for Waiver from Mitsubishi, DOE 
specified an alternate test procedure to provide a basis from which 
Mitsubishi could test and make valid energy efficiency representations 
for its R410A CITY MULTI products, as well as for its R22 multi-split 
products. The Mitsubishi petitions, including the alternate test 
procedure, were published in the Federal Register on April 9, 2007. 72 
FR 17528, 17532. For similar reasons, DOE believes that alternate test 
procedures are necessary here.
    In general, DOE understands that existing testing facilities have a 
limited ability to test multiple indoor units at one time, and the 
number of possible combinations of indoor and outdoor units for some 
variable refrigerant flow zoned systems is impractical to test. We 
further note that subsequent to the waiver that DOE granted for 
Mitsubishi's R22 multi-split products, ARI formed a committee to 
discuss the issue and to work on developing an appropriate testing 
protocol for variable refrigerant flow systems. However, to date, no 
additional test methodologies have been adopted by the committee or 
submitted to DOE.
    Therefore, as discussed below, DOE is including an alternate test 
procedure as a condition in granting the Interim Waiver for Sanyo's 
products, and plans to consider the same alternate test procedure in 
the context of the subsequent Decision and Order pertaining to Sanyo's 
Petition for Waiver. Utilization of this alternate test procedure will 
allow Sanyo to test and make energy efficiency representations for its 
ECO-i products. More broadly, DOE has also applied a similar alternate 
test procedure to other existing waivers for similar residential and 
commercial central air conditioners and heat pumps. Such cases include 
Samsung's Decision and Order for its multi-split products at 72 FR 
71387 (Dec. 17, 2007), and Fujitsu's Decision and Order for its multi-
split products at 72 FR 71383 (Dec. 17, 2007). As noted above, the 
alternate test procedure has been applied to Mitsubishi's Petition for 
Waiver for its R410A CITY MULTI and R22 multi-split products. 72 FR 
17528 (April 9, 2007).
    DOE believes that an alternate test procedure is needed so that 
manufacturers of such products can make valid and consistent 
representations of energy efficiency for their air-conditioning 
products. In the present case, DOE is modifying the alternate test 
procedure taken from the above-referenced waiver granted to Mitsubishi 
for its R410A CITY MULTI products, and plans to consider inclusion of 
the following similar waiver language in the Decision and Order for 
Sanyo's ECO-i multi-split air conditioner and heat pump models:
    (1) The ``Petition for Waiver'' filed by Sanyo Fisher Company 
(Sanyo) is

[[Page 183]]

hereby granted as set forth in the paragraphs below.
    (2) Sanyo shall not be required to test or rate its ECO-i variable 
refrigerant volume multi-split air conditioner and heat pump products 
listed above in section III, on the basis of the current test 
procedures, but shall be required to test and rate such products 
according to the alternate test procedure as set forth in paragraph 
(3).
    (3) Alternate test procedure.
    (A) Sanyo shall be required to test the products listed in section 
III above according to the test procedures for central air conditioners 
and heat pumps prescribed by DOE at 10 CFR Parts 430 and 431, except 
that:
    (i) For products covered by 10 CFR Part 430 (consumer products), 
Sanyo shall not be required to comply with: (1) The first sentence in 
10 CFR 430.24(m)(2), which refers to ``that combination manufactured by 
the condensing unit manufacturer likely to have the largest volume of 
retail sales''; and (2) the third sentence in 10 CFR 430(m)(2), 
including the provisions of 10 CFR 430(m)(2)(i) and (ii). Instead of 
testing the combinations likely to have the highest volume of retail 
sales, Sanyo may test a ``tested combination'' selected in accordance 
with the provisions of subparagraph (B) of this paragraph. 
Additionally, instead of following the provisions of 10 CFR 
430(m)(2)(i) and (ii) for every other system combination using the same 
outdoor unit as the tested combination, Sanyo shall make 
representations concerning the ECO-i products covered in this waiver 
according to the provisions of subparagraph (C) below.
    (ii) For products covered by 10 CFR Part 430 (consumer products), 
Sanyo shall be required to comply with 10 CFR Part 430, Subpart B, 
Appendix M, as amended by the final rule published in the Federal 
Register on October 22, 2007. 72 FR 59906. The test procedure changes 
applicable to multi-split products are in sections: 2.1, 2.2.3, 2.4.1, 
3.2.4 (including Table 6), 3.6.4 (including Table 12), 4.1.4.2, and 
4.2.4.2.
    (iii) For products covered by 10 CFR Part 431 (commercial 
products), Sanyo shall test a ``tested combination'' selected in 
accordance with the provisions of subparagraph (B) of this paragraph. 
For every other system combination using the same outdoor unit as the 
tested combination, Sanyo shall make representations concerning the 
ECO-i products covered in this waiver according to the provisions of 
subparagraph (C) below.
    (B) Tested combination means a multi-split system with multiple 
indoor coils having the following features:
    (1) The basic model of a system used as a tested combination shall 
consist of one outdoor unit, with one or more compressors, that is 
matched with between 2 and 5 indoor units; for multi-split systems, 
each of these indoor units shall be designed for individual operation.
    (2) The indoor units shall--
    (i) Represent the highest sales model family, or another indoor 
model family if the highest sales model family does not provide 
sufficient capacity (see ii);
    (ii) Together, have a nominal capacity that is between 95% and 105% 
of the nominal capacity of the outdoor unit;
    (iii) Not, individually, have a capacity that is greater than 50% 
of the nominal capacity of the outdoor unit;
    (iv) Operate at fan speeds that are consistent with the 
manufacturer's specifications; and
    (v) All be subject to the same minimum external static pressure 
requirement while being configurable to produce the same static 
pressure at the exit of each outlet plenum when manifolded as per 
section 2.4.1 of 10 CFR Part 430, Subpart B, Appendix M.
    (C) Representations. In making representations about the energy 
efficiency of its ECO-i variable refrigerant volume multi-split air 
conditioner and heat pump products, for compliance, marketing, or other 
purposes, Sanyo must fairly disclose the results of testing under the 
DOE test procedure, doing so in a manner consistent with the provisions 
outlined below:
    (i) For ECO-i multi-split combinations tested in accordance with 
this alternate test procedure, Sanyo must disclose these test results.
    (ii) For ECO-i multi-split combinations that are not tested, Sanyo 
must make a disclosure based on the testing results for the tested 
combination and which are consistent with either of the two following 
methods, except that only method (a) may be used, if available:
    (a) Representation of non-tested combinations according to an 
Alternative Rating Method (ARM) approved by DOE; or
    (b) Representation of non-tested combinations at the same energy 
efficiency level as the tested combination with the same outdoor unit.

V. Summary and Request for Comments

    Through today's notice, DOE announces receipt of Sanyo's Petition 
for Waiver from the test procedures applicable to Sanyo's ECO-i 
residential and commercial multi-split air conditioner and heat pump 
products, and for the reasons articulated above, DOE is granting Sanyo 
an Interim Waiver from those procedures. As part of this notice, DOE is 
publishing Sanyo's Petition for Waiver in its entirety. The petition 
contains no confidential information. Furthermore, today's notice 
includes an alternate test procedure that Sanyo is required to follow 
as a condition of its Interim Waiver and which DOE is considering 
including in its subsequent Decision and Order. In this alternate test 
procedure, DOE is defining a ``tested combination'' which Sanyo could 
use in lieu of testing all retail combinations of its ECO-i multi-split 
air conditioner and heat pump products.
    Furthermore, should a subsequent manufacturer be unable to test all 
retail combinations, DOE is considering allowing such manufacturers to 
rate waived products according to an ARM approved by DOE, or to rate 
waived products in the same manner as that for the specified tested 
combination. DOE has applied a similar alternate test procedure to 
other comparable Petitions for Waiver for residential and commercial 
central air conditioners and heat pumps. Such cases include Samsung's 
Petition for Waiver for its Digital Variable Multi (DVM) products at 72 
FR 71387 (Dec. 17, 2007), and Fujitsu's Petition for Waiver for its 
Airstage variable refrigerant flow products at 72 FR 71383 (Dec. 17, 
2007).
    DOE is interested in receiving comments on the issues addressed in 
this notice. Pursuant to 10 CFR 430.27(d) and 10 CFR 431.401(d), any 
person submitting written comments must also send a copy of such 
comments to the petitioner, whose contact information is included in 
the ADDRESSES section above.

    Issued in Washington, DC, on December 20, 2007.
Alexander A. Karsner,
Assistant Secretary, Energy Efficiency and Renewable Energy.
February 22, 2007

The Honorable Alexander Karsner, Assistant Secretary for Energy 
Efficiency and Renewable Energy, U.S. Department of Energy, 1000 
Independence Ave., SW., Washington, DC 20585-0121.

Re: Petition for Waiver of Test Procedure and Application for Interim 
Waiver for ECO-I Air Source Heat Pumps and Heat Recovery Products.

    Dear Assistant Secretary Karsner, Sanyo Fisher Company (``SFC'') is 
most excited with the opportunity to

[[Page 184]]

introduce to the United States HVAC market one of our most successful 
products marketed throughout much of the world. We refer to this as our 
ECO-i product line. ECO-i incorporates Variable Refrigerant Flow (VRF) 
and Multi-Split Zoning characteristics with a highly advanced 
integrated control system. We utilize variable speed compressor 
technology to provide high efficiency operation and individual zone 
control for each indoor unit.
    As a result of this product line's unique design and operating 
characteristics, it is currently not possible to conduct testing as 
defined by ARI Standard 210/240 or ARI Standard 340/360. Therefore, SFC 
respectfully submits this Petition for Waiver from Test Procedure and 
simultaneously an Application for Interim Waiver of Test Procedure for 
our ECO-i product line in accordance with the requirements set forth in 
10 CFR 431.401 (1-1-06 Edition).

Section 1--Background

    SFC's ECO-i product contains characteristics that prevent testing 
of the system using the procedures outlined in ARI 210/240 as well as 
ARI 340/360. Simply stated, testing laboratories cannot test products 
with so many indoor units connected to a single outdoor unit. There are 
also too many possible indoor unit combinations to test them all. As a 
result of these issues, SFC seeks a waiver from test procedures until 
such time as a permanent or interim method of testing and rating VRF 
Multi-Split products is adopted.
    The Department of Energy (DOE) has previously granted waivers and/
or interim waivers to other manufacturers of equipment that contain the 
same basic design characteristics as that of SFC's ECO-i product line. 
Table 1 as shown below provides such detail and verification related to 
current and previous waiver requests for similar product.

                                             Table 1.--Waiver Status
----------------------------------------------------------------------------------------------------------------
             Manufacturer                      Petition                 Interim                  Product
----------------------------------------------------------------------------------------------------------------
Mitsubishi...........................  Granted 8/2004.........  .......................  R-22 Air Source Heat
                                                                                          Pump.
Mitsubishi...........................  .......................  Granted 3/2006.........  R-410a City Multi Air
                                                                                          Source.
Mitsubishi...........................  Pending................  Pending................  R-410a City Multi Water
                                                                                          Source.
Samsung..............................  .......................  Granted Early 2005.....  R-22 DVM Air Source.
Fujitsu General......................  .......................  Granted Jan 5, 2006....  AirStage Air Source.
----------------------------------------------------------------------------------------------------------------

Section 2--Basic Model Identification

    ECO-i air source multi-split VRF products are planned for 
introduction to the United States market during the first quarter of 
2007. As shown below, Table 2 provides a listing of ECO-i outdoor units 
incorporating inverter driven variable speed compressors. A listing of 
ECO-i heat pump indoor units applicable to this Petition for Waiver and 
Application for Interim Waiver is provided after Table 2 in the section 
shown as ``ECO-i Indoor Model Identification''.

                                                      Table 2.--ECO-I Outdoor Model Identification
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                      Nominal capacity
                  Model No.                   --------------------------------               Type                 Phase       Voltage       Connectable
                                                   Cooling         Heating                                                                 indoor units
--------------------------------------------------------------------------------------------------------------------------------------------------------
CHX03652.....................................          38,200          42,700  Heat Pump.......................        1         208-230               6
CHX06052.....................................          52,900          60,000  Heat Pump.......................        1         208-230               9
CHDX09053....................................          95,500         107,500  Heat Pump.......................        3         208-230              16
CHDZ09053....................................          95,500         107,500  Heat Recovery (Simultaneous             3         208-230              16
                                                                                heating/cooling).
CHDX14053....................................         153,600         170,600  Heat Pump.......................        3         208-230              28
CHDZ14053....................................         153,600         170,600  Heat Recovery (Simultaneous             3         208-230              28
                                                                                heating/cooling).
--------------------------------------------------------------------------------------------------------------------------------------------------------

ECO-i Indoor Model Identification

    All indoor units are specifically designed for use with Sanyo's 
ECO-i Variable Refrigerant Flow outdoor units. Indoor units are 
available in capacities ranging from 7,500 BTU/hr to 54,600 BTU/hr, 
with even more capacities to be introduced in the future. All indoor 
units operate on a 208-230 volt single phase power supply and the 
proprietary control system of Sanyo. The specific family and capacity 
range of indoor units is as follows:
     AHX**52 Series; Ceiling Cassette, 1 Way Air Discharge, 
7,500/9,600/12,000 BTU/hr nominal capacities.
     DHX**52 Series; Concealed Ducted, Medium External Static, 
36,000/47,800 BTU/hr nominal capacities.
     FHX**52 Series; Exposed Floor Standing, 7,500/9,600/
12,000/19,000/25,000 BTU/hr nominal capacities.
     FMHX**52 Series; Concealed Floor Standing, 7,500/9,600/
12,000/19,000/25,000 BTU/hr nominal capacities.
     KHX**52 Series; Wall Mounted, 7,500/9,600/12,000/19,000/
25,000 BTU/hr nominal capacities.
     LHX**52 Series; Ceiling Mount Slim Design 1 Way Air 
Discharge, 12,000/19,000/25,000 BTU/hr nominal capacities.
     SHX**52 Series; Ceiling Cassette, 2 Way Air Discharge, 
7,500/9,600/12,000/19,000/25,000/36,000/47,800 BTU/hr nominal 
capacities.
     THX**52 Series; Ceiling Suspended, 12,000/19,000/25,000 
BTU/hr nominal capacities.
     UHX**52 Series; Concealed Ducted, Low External Static, 
7,500/9,600/12,000/19,000/25,000/36,000 BTU/hr nominal capacities.
     UMHX**52 Series; Concealed Slim Ducted, Low External 
Static, 7,500/9,600/12,000/19,000/25,000 BTU/hr nominal capacities.
     XHX**52 Series; Ceiling Cassette, 4 Way Air Discharge, 
12,000/19,000/25,000/36,000 BTU/hr nominal capacities.
     XMHX**52 Series; Mini Ceiling Cassette, 4 Way Air 
Discharge, 7,500/9,600/12,000/19,000/25,000 BTU/hr nominal capacities.

[[Page 185]]

Section 3--Design Characteristics Constituting the Grounds for Petition

    ECO-i VRF products enable the connection of multiple indoor units 
to a single outdoor unit. The outdoor unit is capable of part load 
operation by varying refrigerant flow through the use of inverter 
driven variable speed compressor technology. This results in the 
outdoor units operating capacity closely matching the actual indoor 
load. The ECO-i product line is designed to optimize overall system 
performance and efficiency when operating at part load which 
significantly decreases energy usage.
    Each indoor unit of the ECO-i system may have an individual remote 
controller that allows the occupant to adjust their temperature 
independently of the set temperature of other indoor units connected to 
the same outdoor unit. Some of the indoor units may be set to the 
``off'' mode which increases energy savings even further when heating 
or cooling is not required.
    The variable speed compressor is capable of reducing its capacity 
to approximately 7,000 BTU/hr. When this variable speed compressor is 
coupled with another high performance single speed compressor(s) of 
similar size in the same outdoor unit a truly remarkable minimum 
capacity of as little as 7% of the rated system capacity could be 
achieved resulting in significant energy savings when only a small 
amount of heating or cooling is required.
    Multi-split VRF technology that is incorporated in the ECO-i system 
allows up to 130% of indoor unit capacity to the rated capacity of the 
outdoor unit. VRF technology allows this mis-match of indoor to outdoor 
capacity to save energy while still meeting the HVAC requirements of 
the building.
    ECO-i series ``CHDZ'' outdoor units go one step further by allowing 
the consumer to operate both heating and cooling simultaneously. In the 
simultaneous mode, heat is actually being removed from the ``cooling 
zones'' and deposited in the ``heating zones'' via the system's heat 
recovery ability. Although there is no approved or existing DOE, ARI or 
ASHRAE method to recognize the systems performance during simultaneous 
operation, it is certainly reasonable to believe that system efficiency 
is increased. This increase in efficiency occurs because some indoor 
units within the building are acting as condensers while other indoor 
units are acting as evaporators at the same time. This means that heat 
is transferred within the building rather than being wasted to the 
outdoor environment.
    Multi-split VRF technology will help our nation to reduce the 
amount of energy needed to heat and cool our buildings. Sanyo is 
pleased to introduce this technology to not only improve the control 
that the end user has over their environment but also to help with our 
nation's desire to reduce overall energy usage.

Section 4--Specific Requirements Sought to be Waived

    Sanyo Petitions Waiver from the Test Procedures for all ECO-i 
Series outdoor units along with their matching indoor units. Due to the 
wide capacity ratings available for the ECO-i outdoor units, a waiver 
is sought from the testing procedures outlined in ARI 210/240 and ARI 
340/360 as identified below:
     For Sanyo outdoor units with model numbers of CHX03652 and 
CHX06052 (and all listed indoor units) we seek Waiver from Test 
Procedures as outlined in ARI Standard 210/240-2006 (Performance Rating 
of Unitary Air Conditioning and Air Source Heat Pump Equipment). This 
rating and testing standard applies to unitary air conditioners and 
unitary air source heat pumps rated with capacities below 65,000 BTU/
hr.
     For Sanyo outdoor units with model numbers of CHDX09053, 
CHDZ09053, CHDX14053 and CHDZ14053 we seek Waiver from Test Procedures 
as outlined in ARI Standard 340/360-2004 (Performance Rating of 
Commercial and Industrial Unitary Air Conditioning and Heat Pump 
Equipment). This rating and testing standard applies to unitary air 
conditioners and heat pumps with capacities ranging from 65,000 to 
250,000 BTU/hr.
    Regardless of the capacity of ECO-i products the basic performance, 
application and utility of the equipment remain virtually identical in 
that they all utilize VRF multi-split technology. All ECO-i products 
utilize the same indoor units, the same piping and wiring 
configurations and the same control systems regardless of capacity. The 
above referenced testing and rating standards do not address the 
details required to select or configure multi-split systems in a 
testing facility.
    SFC takes this opportunity to also request an Interim Waiver from 
Test Procedure for all referenced products.

Section 5--Identity of Manufacturers of Similar Basic Models

    To the best of our knowledge the following manufacturers either 
currently market or previously marketed, similar VRF products within 
the United States.
     Daikin U.S. Corporation
     Fujitsu General America
     LG Electronics U.S.A., Inc.
     Mitsubishi Electric & Electronics USA, Inc.
     Samsung Electronics Company, Ltd.

Section 6--Alternate Testing Procedures

    There is no alternative testing and rating procedures for VRF 
multi-split products that SFC is aware of which could adequately 
represent the performance or efficiency of this product. Our company is 
an active member of the ARI Ductless Section Engineering Committee. 
This committee is developing a proposed testing and rating standard for 
VRF multi-split products (ARI Standard 1230) with a goal to eliminate 
the need for existing and future waivers for such product.

Section 7--Need for Waiver from Test Procedure

    In previous waiver petitions DOE noted that VRF multi-split systems 
incorporate design characteristics that virtually eliminate the 
possibility of broad testing of this type of technology. An example of 
this is provided in Federal Register/Vol. 69, No. 166/Friday, August 
27, 2004/Notices, page 52662 which contain the following statements:

    ``However, the two testing problems discussed above, (test 
laboratories cannot test products with so many indoor units, and 
there are too many possible combinations of indoor and outdoor units 
to test), do prevent testing of the basic model according to the 
prescribed test procedures.''
    ``The Department also consulted with the National Institute of 
Standards & Technology (NIST), who agreed that many VFRZ systems 
could not be tested in the laboratory.''

    SFC's ECO-i product offering is a multi-split system incorporating 
such a diverse amount and configuration of possible indoor units that 
are able to be connected to a single outdoor unit that it is virtually 
impossible to test the performance of this system. Compounding the 
difficulty of testing is the fact that the indoor units are designed to 
operate at so many different external static pressure values. A testing 
facility could not manage proper airflow at several different external 
state pressure values to the many indoor units that would be connected 
to an ECO-i outdoor unit.
    The challenges associated with current test procedures (of ARI 210/
240 and ARI 340/360) are being addressed by the ARI Ductless Section 
Engineering Committee in hopes of overcoming such

[[Page 186]]

difficulties while still providing a means to compare the performance 
of the various VRF manufacturers.

Section 8--Application for Interim Waiver

    In accordance with 10 CFR 431.401 (a)(2) SFC takes this opportunity 
to also submit an Application for Interim Waiver of test procedures for 
our ECO-i models listed in Section 2 of this document and there 
matching indoor units. SFC believes that it is likely that our Petition 
for Waiver will be granted based upon, but not limited to, the 
following:
     The approvals of similar waiver requests as identified in 
Table 1 of Section 1 of this document.
     Failure to approve our Petition for Waiver and Application 
for Interim Waiver will result in significant economic hardship due to 
the following:
    [cir] It is our intention to introduce our ECO-i product in the 
Spring of 2007. A great deal of company emphasis has been, and will be, 
placed on the introduction of this product, including show exhibitions 
(such as AHR, ACCA, etc.), marketing/advertising campaign, customer 
training and other expenditures of both financial and human resources. 
Delaying our entry into the U.S. market with the ECO-i product will 
impede our ability to compete in this growing market.
    [cir] A significant portion of our projected sales revenues are 
dependent upon the timely introduction of this product.
     DOE's statement:

    ``* * * an interim waiver will be granted if it is determined 
that the applicant will experience economic hardship if the 
Application for Interim Waiver is denied, if it appears likely that 
the Petition for Waiver will be granted, and/or the Assistance 
Secretary determines that it would be desirable for public policy 
reasons to grant immediate relief pending a determination for the 
Petition for Waiver'' (Case CAC-009), 70 Fed Reg 9629, at 9630 (Feb 
28, 2005 Samsung Interim Waiver). See 10 CFR 431.201(e)(3)(2005).

     SFC's ECO-i product line is quite similar to that of 
Fujitsu's VRF system, Mitsubishi's City Multi system and Samsung's DVM 
system. Realizing these similarities, DOE granted an:
    [cir] Interim waiver to Fujitsu in January 2006 for their AirStage 
Air Source product.
    [cir] Interim waiver to Samsung Air Conditioning in 2005 for their 
DVM System.
    [cir] Interim waiver to Mitsubishi for their R-410a City Multi air 
source product in March 2006.
    [cir] Petition for Waiver to Mitsubishi for their R-22 City Multi 
air source product in 2004.
     The approval of this waiver and interim waiver is in the 
best interest of our public/and government initiatives to reduce 
national energy usage.
    It is therefore reasonable for one to believe that SFC's petition 
will also be granted.

Section 9--Conclusion

    It is clear that without the approval of this Petition for Waiver 
and Application for Interim Waiver that SFC will result in our 
inability to compete in the United States VRF market, a market in which 
our company has proven success in many other countries throughout the 
world. We are pleased to have an opportunity to bring this leading edge 
technology to the United States market, to not only improve the comfort 
of Americans, but also to reduce the amount of energy consumed on 
building cooling and heating.
    SFC respectfully requests the Department of Energy to grant our 
Application for Interim Waiver and our Petition for Waiver from Test 
Procedure to enable our introduction of our advanced ECO-i products to 
the U.S. market. Granting these requested waivers will permit us to 
effectively compete in the marketplace.
    Due to our near term introduction of our ECO-i product offering we 
would greatly appreciate a timely response to this Petition for Waiver 
from Test Procedure and Application for Interim Waiver.
    Should you or any parties have questions related to this Petition 
for Waiver from Test Procedure and Application for Interim Waiver, 
please contact Gary Nettinger at 678-384-3115 or Davis Watkins at 678-
384-3112.

 Sincerely,

Davis Watkins, Vice President; Applied Products Group, Sanyo Fisher 
Company, 1690 Roberts Blvd., NW., Suite 110, Kennesaw, GA 30144.

[FR Doc. E7-25453 Filed 12-31-07; 8:45 am]

BILLING CODE 6450-01-P