[Federal Register: January 7, 2008 (Volume 73, Number 4)]
[Notices]               
[Page 1213-1219]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr07ja08-33]                         

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DEPARTMENT OF ENERGY

Office of Energy Efficiency and Renewable Energy

[Case No. CAC-018]

 
Energy Conservation Program for Certain Industrial Equipment: 
Publication of the Petition for Waiver From Daikin AC (Americas), Inc. 
and Granting of the Application for Interim Waiver From the Department 
of Energy Commercial Package Water-Source Air Conditioner and Heat Pump 
Test Procedure

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 Daikin AC (Americas), Inc. (Daikin). The Petition for 
Waiver (hereafter ``Daikin Petition'') requests a waiver of the 
Department of Energy (DOE) test procedure applicable to commercial 
package water-source air conditioners and heat pumps. The waiver 
request is specific to the Daikin Variable Speed and Variable 
Refrigerant Volume VRV-WII (commercial) multi-split water-source heat 
pumps and heat recovery systems. Through this document, DOE is: (1) 
Soliciting comments, data, and information with respect to the Daikin 
Petition; and (2) announcing our determination granting an Interim 
Waiver to Daikin from the applicable DOE test procedure for commercial 
water-source air conditioners and heat pumps.

DATES: DOE will accept comments, data, and information with respect to 
the Daikin Petition until, but no later than February 6, 2008.

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

Follow the instructions for submitting comments.
     E-mail: Michael.Raymond@ee.doe.gov. Include either the 
case number [CAC-018], and/or ``Daikin 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.

[[Page 1214]]

     Hand Delivery/Courier: Ms. Brenda Edwards-Jones, U.S. 
Department of Energy, Building Technologies Program, 950 L'Enfant Plaza 
SW., Suite 600, Washington, DC 20024. 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 431.401(d). The 
contact information for the petitioner is: Mr. Russell Tavolacci, 
Director of Product Marketing, Daikin AC (Americas), Inc., 1645 Wallace 
Drive, Suite 110, Carrollton, TX 75006. Telephone: (972) 245-1510. E-
mail: Russell.Tavolacci@daikinac.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, Resource 
Room of the Building Technologies Program, 950 L'Enfant Plaza SW, Suite 
600, Washington, DC, 20024; (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 similar central air 
conditioning and heat pump equipment. Please call Ms. Brenda Edwards-
Jones at the above telephone number for additional information 
regarding visiting the Resource Room.

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 provides for the ``Energy Conservation Program for Consumer 
Products Other Than Automobiles.'' (42 U.S.C. 6291-6309) Part C of 
Title III provides for an energy efficiency program titled ``Certain 
Industrial Equipment,'' which is similar to the program in Part B, and 
which includes commercial air conditioning and heating equipment, 
packaged boilers, water heaters, and other types of commercial 
equipment. (42 U.S.C. 6311-6317)
    This notice involves commercial equipment under Part C. Part C 
specifically includes definitions (42 U.S.C. 6311), test procedures (42 
U.S.C. 6314), labeling provisions (42 U.S.C. 6315), energy conservation 
standards (42 U.S.C 6313), and the authority to require information and 
reports from manufacturers (42 U.S.C. 6316). With respect to test 
procedures, it generally authorizes 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. 6314(a)(2))
    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 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 adopting test 
procedures for commercial package air-conditioning and heating 
equipment, effective January 8, 2007. 71 FR 71340. DOE adopted the 
International Organization for Standardization (ISO) Standard 13256-1 
(1998), ``Water-source heat pumps--Testing and rating for performance: 
Part 1-Water-to-air and brine-to-air heat pumps'' for small commercial 
package water-source heat pumps with capacities < 135,000 British 
thermal units per hour (Btu/h). Id. at 71371. DOE's regulations at 10 
CFR 431.95(b)(3) incorporate by reference the relevant ISO standard, 
and Table 1 to 10 CFR 431.96 directs manufacturers of commercial 
package water-source air conditioning and heating equipment to use the 
appropriate procedure when measuring energy efficiency of those 
products. (The cooling capacities of Daikin's commercial water-source 
multi-split heat pump products range from 60,000 Btu/hr to 252,000 Btu/
hr, thereby resulting in many of these products falling in the range 
covered by ISO Standard 13256-1 (1998).)
    In addition, DOE's regulations contain provisions allowing a person 
to seek a waiver from the test procedure requirements for covered 
commercial equipment, for which the petitioner's basic model contains 
one or more design characteristics which prevent testing according to 
the prescribed test procedures, or if the prescribed test procedures 
may evaluate the basic model in a manner so unrepresentative of its 
true energy consumption as to provide materially inaccurate comparative 
data. 10 CFR 431.401(a)(1). The waiver provisions for commercial 
equipment found at 10 CFR 431.401 are substantively identical to those 
for covered consumer products. 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 
431.401(b)(1)(iii). The Assistant Secretary for Energy Efficiency and 
Renewable Energy (Assistant Secretary) may grant a waiver subject to 
conditions, including

[[Page 1215]]

adherence to alternate test procedures. 10 CFR 431.401(f)(4). In 
general, a waiver terminates on the effective date of a final rule, 
published in the Federal Register, 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 431.401(g).
    The waiver process also allows any person who has submitted a 
Petition for Waiver to file an Application for Interim Waiver of the 
applicable test procedure requirements. 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 
Application for 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 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 occurs first, and may then be extended 
by DOE for an additional 180 days, if necessary. 10 CFR 431.401(e)(4).

II. Petition for Waiver

    On January 22, 2007, Daikin filed a Petition for Waiver from the 
test procedures at 10 CFR 431.96 which are applicable to commercial 
package water-source heat pumps and an Application for Interim Waiver. 
As noted above, the applicable test procedure for Daikin's commercial 
VRV-WII multi-split heat pumps is ISO Standard 13256-1 (1998), which 
manufacturers are directed to use pursuant to Table 1 of 10 CFR 431.96. 
The capacities of the Daikin VRV-WII multi-split heat pumps range from 
60,000 Btu/hr to 252,000 Btu/hr. DOE notes that the Daikin 60,000 Btu/
hr unit is residential in size, but because it is being marketed and 
sold for commercial use, it is considered a commercial product. 
Accordingly, the appropriate test procedure is the same as for two 
other outdoor units with capacities less than 135,000 Btu/hr, ISO 
13256-1 (1998). DOE further notes that Daikin also requested a waiver 
for four outdoor units with capacities greater than 135,000 Btu/hr, but 
because DOE does not have a test procedure for such products, there is 
no need for a waiver.
    Daikin seeks a waiver from the applicable test procedures under 10 
CFR 431.96 on the grounds that its VRV-WII water-source multi-split 
heat pumps and heat recovery systems contain design characteristics 
that prevent testing according to the current DOE test procedure. The 
products covered by this petition represent the models of Daikin's 
multi-split product line that use water, instead of air, as a heat 
source and heat sink. However, Daikin asserts that the water-source 
VRV-WII systems operate in the same configurations as the air-source 
VRV and VRV-S systems, with the only relevant difference being the heat 
rejection medium. Specifically, Daikin 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 waivers 
that DOE granted to Mitsubishi Electric & Electronics USA, Inc. 
(Mitsubishi), Fujitsu General Ltd. (Fujitsu), and Samsung Air 
Conditioning (Samsung) for similar lines of commercial multi-split air-
conditioning systems:
     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 (August 27, 2004); 72 FR 17528 
(April 9, 2007); 72 FR 71383 (December 17, 2007); 72 FR 71387 (December 
17, 2007).
    Further, Daikin states that its VRV-WII indoor units have nine 
different indoor static pressure ratings, and the test procedure does 
not provide for operation of indoor units at several different static 
pressure ratings during a single test. 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 to the many indoor units that would be connected to a VRV-WII 
outdoor unit. The number of connectable indoor units for each outdoor 
unit ranges up to 32. Daikin further states that its VRV-WII products 
capability to perform simultaneous heating and cooling is not captured 
by the DOE test procedure. This is true, but not relevant. DOE is 
required by EPCA to use the full-load descriptor EER for these 
products, and simultaneous heating and cooling does not occur when 
operating at full load.
    Accordingly, Daikin requests that DOE grant a waiver from the 
applicable test procedures for its VRV-WII product designs until a 
suitable test method can be prescribed. Furthermore, Daikin states that 
failure to grant the waiver would result in economic hardship because 
it would prevent the company from marketing its VRV-WII products. Also, 
Daikin 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 January 22, 2007, in addition to its Petition for Waiver, Daikin 
submitted to DOE an Application for Interim Waiver. Daikin's 
Application for Interim Waiver does not provide sufficient information 
to evaluate the level of economic hardship Daikin 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 similar 
product designs, 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 Mitsubishi, Fujitsu, and Samsung 
for comparable commercial multi-split air conditioners and heat pumps. 
72 FR 17533 (April 9, 2007); 70 FR 5980 (Feb. 4, 2005); 70 FR 9629 
(Feb. 28, 2005), respectively.
    Moreover, as noted above, DOE approved the Petition for Waiver from 
Mitsubishi for its comparable line of commercial water-source multi-
split air conditioners and heat pumps. 72 FR 17528 (April 9, 2007). The 
two principal reasons for granting these waivers also apply to Daikin's 
VRV-WII 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 Daikin's Petition for Waiver will be 
granted for its new VRV-WII water-source multi-split models. Therefore, 
it is ordered that:
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    \1\ According to the Daikin petition, up to 32 indoor units are 
possible-candidates for testing of its commercial water-source 
multi-split heat pumps and heat recovery systems. 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 Daikin is hereby 
granted for Daikin's VRV-WII water-source multi-split central air 
conditioning heat pumps, subject to the specifications and conditions 
below.
    1. Daikin shall not be required to test or rate its water-source 
VRV-WII commercial water-source multi-split products on the basis of 
the currently applicable test procedure under Table 1 of 10 CFR 431.96, 
which incorporates by reference ISO Standard 13256-1 (1998).
    2. Daikin shall be required to test and rate its VRV-WII commercial 
water-

[[Page 1216]]

source multi-split products according to the alternate test procedure 
as set forth in section IV(3), ``Alternate test procedure.''
    The Interim Waiver applies to the following models:
    VRV-WII Series Outdoor Units:
     Models RWEYQ60, RWEYQ72, RWEYQ84
    Compatible Indoor Units For Above-Listed Outdoor Units:
     FXAQ Series wall mounted indoor units with nominally rated 
capacities of 7,000, 9,000, 12,000, 18,000 and 24,000 Btu/hr.
     FXLQ Series floor mounted indoor units with nominally 
rated capacities of 12,000, 18,000 and 24,000 Btu/hr.
     FXNQ Series concealed floor mounted indoor units with 
nominally rated capacities of 12,000, 18,000 and 24,000 Btu/hr.
     FXDQ Series low static ducted indoor units with nominally 
rated capacities of 7,000, 9,000, 12,000, 18,000 and 24,000 Btu/hr.
     FXSQ Series medium static ducted indoor units with 
nominally rated capacities of 7,000, 9,000, 12,000, 18,000, 24,000, 
30,000, 36,000 and 48,000 Btu/hr.
     FXMQ Series high static ducted indoor units with nominally 
rated capacities of 30,000, 36,000 and 48,000 Btu/hr.
     FXZQ Series recessed cassette indoor units with nominally 
rated capacities of 7,000, 9,000, 12,000, 18,000 and 24,000 Btu/hr.
     FXFQ Series recessed cassette indoor units with nominally 
rated capacities of 12,000, 18,000, 30,000 and 36,000 Btu/hr.
     FXHQ Series ceiling suspended indoor units with nominally 
rated capacities of 12,000, 24,000 and 36,000 Btu/hr.
     FXOQ Series concealed indoor units with nominally rated 
capacities of 12,000, 18,000, 24,000, 36,000, 42,000, 36,000 and 48,000 
BTU/Hr.
    This Interim Waiver is conditioned upon the presumed validity of 
statements, representations, and documents 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. Alternate test procedures related to the Mitsubishi petitions 
were published in the Federal Register on April 9, 2007. 72 FR 17528; 
72 FR 17533.
    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. The ARI committee has considered a draft ISO 
methodology, ISO CD 15042, for multi-split systems. However, it 
contains no guidance that would affect this waiver.
    Therefore, as discussed below, DOE is including a similar alternate 
test procedure as a condition in granting the Interim Waiver for 
Daikin's products, and plans to consider the same alternate test 
procedure in the context of the subsequent Decision and Order 
pertaining to Daikin's Petition for Waiver. Utilization of this 
alternate test procedure will allow Daikin to test and make energy 
efficiency representations for its VRV-WII products. More broadly, DOE 
has 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 Petition for Waiver for 
its multi-split products at 72 FR 71387 (Dec. 17, 2007), and Fujitsu's 
Petition for Waiver 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 and heat pump 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 
Daikin's VRV-WII commercial multi-split water-source heat pump models:

    (1) The ``Petition for Waiver'' filed by Daikin AC (Americas), 
Inc. is hereby granted as set forth in the paragraphs below.
    (2) Daikin shall not be required to test or rate its VRV-WII 
variable refrigerant volume multi-split water-source 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) Daikin 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 431.96, 
except that Daikin 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, Daikin shall make representations 
concerning the VRV-WII 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 VRV-WII variable speed and variable refrigerant 
volume multi-split water-source heat pumps and heat recovery system 
products, for compliance, marketing, or other purposes, Daikin 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 VRV-WII combinations tested in accordance with this 
alternate test procedure, Daikin must disclose these test results.
    (ii) For VRV-WII combinations that are not tested, Daikin must 
make a disclosure based

[[Page 1217]]

on the testing results for the tested combination and which is 
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 Daikin's Petition 
for Waiver from the test procedures applicable to Daikin's VRV-WII 
commercial multi-split heat pump products, and for the reasons 
articulated above, DOE is granting Daikin an Interim Waiver from those 
procedures. As part of this notice, DOE is publishing Daikin's Petition 
for Waiver in its entirety. The Petition contains no confidential 
information. Furthermore, today's notice includes an alternate test 
procedure that Daikin is required to follow as a condition of its 
Interim Waiver and that DOE is considering including in its subsequent 
Decision and Order. In this alternate test procedure, DOE is defining a 
``tested combination'' which Daikin could use in lieu of testing all 
retail combinations of its VRV-WII water-source multi-split 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 the same as the specified tested combination with the 
same outdoor unit. DOE is also applying 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 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 27, 2007.
Alexander A. Karsner,
Assistant Secretary, Energy Efficiency and Renewable Energy.
January 22, 2007
Mr. 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

    Dear Assistant Secretary Karsner:
    Daikin AC (Americas) Inc. (DACA) respectfully petitions the 
Department of Energy (DOE) pursuant to 10 C.F.R. Sec. Sec.  
430.27(a)(1) and 431.401(a)(1) for a waiver of the test procedures 
applicable to commercial package air conditioners and heat pumps, as 
established in ISO Standard 13256-1 (1998), \1\ for DACA's variable 
speed compressor driven water-cooled multi-split systems for 
combinations exceeding two indoor units to a single outdoor unit. 
The specific systems for which DACA requests this waiver are in 
DACA's VRV-WII product class, and the specific models subject to the 
waiver request are listed below. As explained more fully below, the 
basis for DACA's request is that the basic model contains design 
criteria that prevent testing of the basic model according to the 
prescribed test procedures. We are simultaneously requesting an 
interim waiver for the same systems pursuant to 10 C.F.R. Sec. Sec.  
430.27(a)(2) and 431.401(a)(2).
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    \1\ Detailed citations to the test procedures for which DACA is 
requesting a waiver are included on page 4 of this petiton.
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Background

    DACA is a leading manufacturer of variable speed and Variable 
Refrigerant Volume (VRV) zoning systems that DACA offers for sale in 
the North American market. These products combine advanced 
technologies such as high efficiency variable speed compressors and 
fan motors with electronic expansion valves and other devices to 
insure peak operating performance of the overall system and to 
optimize energy efficiency. DACA has designed the VRV-WII systems to 
operate in commercial applications, and this product class employs 
zoning to provide users with peak utility of the system and with 
significant energy savings compared to competing technologies.

General Characteristics of DACA's Water Source VRV-WII Products

    DACA's VRV-WII system has the following characteristics and 
applications:
     DACA's water source VRV-WII is an air conditioning 
system that includes numerous individually controllable discrete 
indoor units utilizing water as a heat source. In this unique 
system, water is piped from a cooling tower or boiler to the VRV-WII 
(which is the equivalent of the outdoor unit of an air cooled 
conditioning system). After heat exchange, refrigerant is piped from 
the VRV-WII to each indoor unit.
     The VRV-WII system consists of multi-split, multi-zone 
units utilizing one or multiple outdoor units that serve up to 
thirty-two indoor units.
     The VRV-WII system employs variable speed technology 
that matches system capacity to the current load thereby utilizing 
the minimum amount of energy required for optimal system operation.
     Due to its multi-zone applications, each VRV-WII indoor 
unit can be independently controlled with a local controller 
allowing the occupant to alter their environmental condition to meet 
their needs. Individually controlled system functions include 
temperature, fan speed and mode of operation.
     The VRV-WII system can efficiently operate the 
compressor at loads as small as 10% of the rated capacity of the 
system, resulting in significant energy savings.
     Some VRV-WII products offer a ``heat recovery'' mode 
that allows heat that is absorbed from one indoor zone (operating in 
the cooling mode) to be discharged into another indoor zone that is 
calling for heat. This function reduces the load on the outdoor unit 
and improves overall system performance and utility.
     The VRV-WII system employs variable speed indoor and 
outdoor high efficiency fan motors to precisely control operating 
pressures and airflow rates.
     The VRV-WII system uses electronically controlled 
expansion valves to precisely control refrigerant flow, superheat, 
sub-cooling, pump down functions and even oil flow throughout the 
system.

Particular Basic Models for Which a Waiver Is Requested

    DACA requests a waiver from the test procedures for the 
following basic model groups:

 VRV-WII Series Outdoor Units:
    [cir] Models RWEYQ60, 72, 84, 144, 168, 216, and 252 with 
capacities ranging from 60,000 to 252,000 Btu/hr.
 Compatible Indoor Units for Above Listed Outdoor Units:
    [cir] FXAQ Series wall mounted indoor units with nominally rated 
capacities of 7,000, 9,000, 12,000, 18,000 and 24,000 Btu/hr.
    [cir] FXLQ Series floor mounted indoor units with nominally 
rated capacities of 12,000, 18,000 and 24,000 Btu/hr.
    [cir] FXNQ Series concealed floor mounted indoor units with 
nominally rated capacities of 12,000, 18,000 and 24,000 Btu/hr.
    [cir] FXDQ Series low static ducted indoor units with nominally 
rated capacities of 7,000, 9,000, 12,000, 18,000 and 24,000 Btu/hr.
    [cir] FXSQ Series medium static ducted indoor units with 
nominally rated capacities of 7,000, 9,000, 12,000, 18,000, 24,000, 
30,000, 36,000 and 48,000 Btu/hr.
    [cir] FXMQ Series high static ducted indoor units with nominally 
rated capacities of 30,000, 36,000 and 48,000 Btu/hr.
    [cir] FXZQ Series recessed cassette indoor units with nominally 
rated capacities of 7,000, 9,000, 12,000, 18,000 and 24,000 Btu/hr.

[[Page 1218]]

    [cir] FXFQ Series recessed cassette indoor units with nominally 
rated capacities of 12,000, 18,000, 30,000 and 36,000 Btu/hr.
    [cir] FXHQ Series ceiling suspended indoor units with nominally 
rated capacities of 12,000, 24,000 and 36,000 Btu/hr.
    [cir] FXOQ Series concealed indoor units with nominally rated 
capacities of 12,000, 18,000, 24,000, 36,000, 42,000, 36,000 and 
48,000 BTU/Hr.

Design Characteristics Constituting the Grounds for DACA's Petition

    DACA's VRV-WII product offering consists of multiple indoor 
units being connected to a water-cooled outdoor unit. The indoor 
units for these products are available in a very large number of 
potential configurations, including but not limited to the 
following: 4-Way Cassette, Wall Mounted, Ceiling Suspended, and 
Floor Standing. DACA is currently developing additional indoor unit 
models for future market introduction. Each of these units has nine 
different indoor static pressure ratings as standard, with addition 
pressure ratings available. There are over one million combinations 
possible with the current DACA VRV-WII product offering. It is 
completely impractical for testing laboratories to test a product 
such as the VRV-WII with multiple indoor units because of the 
astronomical number of potential system configurations.
    DACA's VRV-WII products share many of the design characteristics 
and features of DACA's VRV and VRV-S product lines, and of 
Mitsubishi Electric and Electronics USA, Inc.'s (MEUS) CITY MULTI 
product class, for both of which DOE has previously granted a 
waiver.\2\ The principal design characteristic difference between 
DACA's VRV and VRV-S products, and its VRV-WII products, is the 
method of heat rejection. Similarly, the method of heat rejection is 
the most significant design characteristic that distinguishes the 
basic operation of the VRV-WII product class and the MEUS CITY MULTI 
product class that has received a waiver from DOE. The VRV-WII 
products use water instead of air to reject heat. In contrast, the 
VRV and VRV-S products, as well as MEUS' CITY MULTI products use air 
to reject heat. The same testing constraints and limitations apply 
to all of these products.
---------------------------------------------------------------------------

    \2\ DOE granted DACA an interim waiver for its VRV and VRV-S 
product lines in a letter dated August 14, 2006. DOE has not yet 
published notice of this interim waiver issuance in the Federal 
Register. DOE granted MEUS a waiver for its CITY MULTI VRFZ class of 
products. 69 FR 52660 (August 27, 2004).
---------------------------------------------------------------------------

    The DOE relied on similar rationales to grant MEUS' petition for 
waiver and DACA's interim waiver. DOE stated the following in its 
August 14, 2006 letter to DACA granting an interim waiver:
    A waiver for a similar type of variable refrigerant flow zoned 
central air conditioner [i.e., similar to the DACA VRV and VRV-S 
products] was requested by MEUS. DOE decided to grant the waiver, 
based on the difficulty of testing the products. There are two major 
testing problems: (1) Test laboratories cannot test products with so 
many indoor units (up to sixteen); and (2) there are too many 
possible combinations of indoor and outdoor units--only a small 
fraction of the combinations could be tested.
    DOE also noted in its August 14, 2006 interim waiver approval 
for DACA's VRV and VRV-S products that ``[w]aivers for similar 
products have already been granted to * * * Samsung, and Fujitsu 
General * * *.''
    After reviewing its previously granted waivers for similar 
products under the same rationale in its August 14, 2006 letter, DOE 
concluded that DACA's VRV and VRV-S systems ``will likely suffer the 
same testing problems that prompted DOE to grant MEUS a waiver.'' 
DOE continued by saying that ``[w]ith up to eleven indoor units of 
nine different types, thousands of combinations are possible, and it 
would not be practicable to test so many combinations [of DACA's VRV 
and VRV-S product class].'' Based on these conclusions, the DOE 
proceeded to grant DACA's interim waiver request. Id.
    The DOE's basis for its August 4, 2006 approval of an interim 
waiver for DACA's VRV and VRV-S products is virtually identical to 
DOE's stated reasons for its approval of MEUS' CITY MULTI product 
lines, which were: ``test laboratories cannot test products with so 
many indoor units,'' and ``there are too many possible combinations 
of indoor and outdoor units to test.'' 69 Fed. Reg. 52,660 (August 
27, 2004).
    The DACA VRV-WII system operates in the same configurations as 
the VRV and VRV-S systems, with the only relevant design feature 
difference being that the VRV-WII system that is the subject of this 
waiver petition uses water to reject heat, while the VRV and VRV-S 
systems that have already received an interim waiver use air to 
reject heat. The reasons and rationale that DOE has already 
articulated to support the previous DACA, MEUS, Sanyo, and Fujitsu 
waivers for multi-split, multi-zoned air conditioners also apply to 
the DACA VRV-WII products. Therefore, DOE should conclude that the 
design characteristics of DACA's VRV-WII product class prevent 
testing of the basic VRV-WII model according to the prescribed test 
procedures.

Specific Testing Requirements Sought To Be Waived

    The test procedures from which DACA is requesting a waiver are 
in ISO Standard 13256-1 (1998), which is applicable to water-source 
small commercial packaged air conditioning and heating equipment 
with a capacity of < 135,000 Btu/hr, and which is referenced in Table 
1 of 10 CFR Sec.  431.96, and is made applicable to DACA's 
commercial water source VRV-WII products in 10 CFR Sec.  431.96(a).

Detailed Discussion of Need for Requested Waiver

    Although the capacity of DACA's VRV-WII commercial air 
conditioning product class are within the scope of ISO Standard 
13256-1 (1998), the design characteristics of the VRV-WII product 
class prevent testing of the basic model according to the prescribed 
test procedures. The testing procedures outlined in these two ARI 
standards do not provide for:
     The testing of multi-split products when all connected 
indoor units physically cannot be located in a single room.
     The operation of indoor units at several different 
static pressure ratings during a single test.
     The precise number of part load tests that ISO Standard 
13256-1 (1998) requires for fully or infinitely variable speed 
products.
    DACA especially requires the requested waiver because ISO 
Standard 13256-1 (1998) provides no direction or guidance about how 
to test systems with millions of combinations of indoor units 
configurable to a single outdoor unit.
    A further reason that DACA needs the requested waiver is that 
ISO Standard 13256-1 (1998) does not provide a test method to 
measure part load performance of a system operating in simultaneous 
cooling and heating modes (i.e., performing both heating and cooling 
functions at the same time).
    Yet another problem that prevents testing of the VRV-WII product 
class under these two ARI standards, and another major reason why 
DACA requires the requested waiver, is the wide variety of indoor 
unit static pressure ratings available with these and other multi-
split products. Testing facilities cannot effectively control 
multiple indoor static pressures as would be required to test many 
of the indoor unit combinations available. To accomplish such 
testing, a testing lab would be required to use a large number of 
test rooms simultaneously, and each test room would have to be 
networked into the data recording instrumentation. Also, extensive 
piping configurations would need to be routed throughout the various 
test rooms. This process would be extraordinarily expensive, and the 
logistical challenges presented by the testing might be 
insurmountable.

Manufacturers of Other Basic Models Incorporating Similar Design 
Characteristics

    DACA is aware of the following manufacturers that produce basic 
models incorporating similar design characteristics to the VRV-WII 
in the United States market:
     Sanyo Fisher (USA) Corp.
     Mitsubishi Electric & Electronics USA, Inc.

Alternative Test Procedures

    There are no alternative test procedures available within the 
United States to provide a means to test and to rate the performance 
of such variable speed, multi-split, multi-zone product types. A 
draft ISO standard (ISO CD 15042 Multi-Split Systems) is nearing 
completion and will soon be distributed as a Draft International 
Ballot for comments. The actual final completion date of this ISO 
standard is unknown. The Engineering Committee of ARI's Ductless 
Section is also evaluating possible methods to provide testing and 
rating of such systems, but the ARI Ductless Section has not 
developed a test method for this category of equipment as of this 
date.

Application for Interim Waiver

    DACA also hereby applies pursuant to 10 CFR Sec.  431.401(a)(2) 
for an interim waiver of the applicable test procedure requirements 
for the VRV-WII product class models listed

[[Page 1219]]

above. The basis for DACA's Application for Interim Waiver follows.
    DACA is likely to succeed in its Petition for Waiver because 
there is no reasonable argument that ISO Standard 13256-1 (1998) can 
be accurately applied to DACA's VRV-WII product class. As explained 
above in the DACA's Petition for Waiver, the design characteristics 
of the VRV-WII product class clearly prevent testing of the basic 
model according to the prescribed test procedures. The likelihood of 
DOE approving DACA's Petition for Waiver is buttressed by the DOE's 
history of approving previous waiver requests from DACA and from 
several other manufacturers for other products that are similar to 
the VRV-WII product class, based on the same rationale put forth by 
DACA in this Petition for Waiver. See preceding discussion of 
waivers granted by DOE to MEUS, Fujitsu General, and Sanyo Fisher 
(USA) Corp.
    Additionally, DACA is likely to suffer economic hardship and 
competitive disadvantage if DOE does not grant its interim waiver 
request. DACA is now preparing to introduce its VRV-WII product 
class in a matter of months. If we must wait for completion of the 
normal waiver consideration and issuance process, DACA will be 
forced to delay the opportunity to begin recouping through product 
sales its research, development and production costs associated with 
the VRV-WII product class. In addition to these economic hardship 
costs, DACA will lose market share to MEUS, especially if DOE grants 
MEUS' pending interim waiver application for its CITY MULTI WR2 and 
WY product classes, which will compete directly with DACA's VRV-WII 
product class.
    DOE approval of DACA's interim waiver application is also 
supported by sound public policy reasons. As DOE stated in its 
August 14, 2006 approval of DACA's interim waiver for the VRV and 
VRV-S product classes:
    [I]n 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.
    The VRV-WII product class will provide superior comfort to the 
end user, will allow for independent zoning of facilities from a 
single outdoor unit, and will incorporate state of the art 
technology such as variable speed compressors utilizing neodymium 
magnets to increase efficiency and electronic control of compressor 
speed, fan speed and even metering device opening positions. The 
VRV-WII product class will introduce technologies that will increase 
system efficiency and reduce national energy consumption, and that 
will also offer a new level of comfort and control to end users.
    DACA requests that DOE grant our Application for Interim Waiver 
so we can bring the new highly energy efficient technology 
represented by the VRV-WII product class to the market as soon as 
possible, thereby allowing the U.S. consumer to benefit from our 
high technology and high efficiency product, and from competition 
for other manufacturers who may have already received waivers.

Confidential Information

    DACA makes no request to DOE for confidential treatment of any 
information contained in this Petition for Waiver and Application 
for Interim Waiver.
     Conclusion
    Daikin AC (Americas), Inc. Corporation respectfully requests DOE 
to grant its Petition for Waiver of the applicable test procedure to 
DACA for the VRV-WII product design, and to grant its Application 
for Interim Waiver. DOE's failure to issue an interim waiver from 
test standards would cause significant economic hardship to DACA by 
preventing DACA from marketing these products even though DOE has 
previously granted a waiver to other products currently being 
offered in the market with similar design characteristics.
    We would be pleased to respond to any questions you may have 
regarding this Petition for Waiver and Application for Interim 
Waiver. Please contact Russell Tavolacci, Director of Product 
Marketing at 972-245-1510 or by email at 
Russell.tavolacci@daikinac.com.


 Sincerely,
Yoshinobu Inoue
President, Daikin AC (Americas), Inc.
1645 Wallace Drive, Suite 110, Carrollton, Texas 75006

 [FR Doc. E7-25650 Filed 1-4-08; 8:45 am]

BILLING CODE 6450-01-P