[Federal Register Volume 88, Number 106 (Friday, June 2, 2023)]
[Rules and Regulations]
[Pages 36368-36389]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-10181]



[[Page 36367]]

Vol. 88

Friday,

No. 106

June 2, 2023

Part II





Department of Energy





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10 CFR Part 431





Energy Conservation Program: Energy Conservation Standards for Air 
Cooled, Three-Phase, Small Commercial Air Conditioners and Heat Pumps 
With a Cooling Capacity of Less Than 65,000 Btu/h and Air-Cooled, 
Three-Phase, Variable Refrigerant Flow Air Conditioners and Heat Pumps 
With a Cooling Capacity of Less Than 65,000 Btu/h; Final Rule

Federal Register / Vol. 88, No. 106 / Friday, June 2, 2023 / Rules 
and Regulations

[[Page 36368]]


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DEPARTMENT OF ENERGY

10 CFR Part 431

[EERE-2022-BT-STD-0008]
RIN 1904-AF32


Energy Conservation Program: Energy Conservation Standards for 
Air Cooled, Three-Phase, Small Commercial Air Conditioners and Heat 
Pumps With a Cooling Capacity of Less Than 65,000 Btu/h and Air-Cooled, 
Three-Phase, Variable Refrigerant Flow Air Conditioners and Heat Pumps 
With a Cooling Capacity of Less Than 65,000 Btu/h

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

ACTION: Final rule.

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SUMMARY: In this final rule, the U.S. Department of Energy (DOE or the 
Department) is adopting amended energy conservation standards for air 
cooled, three-phase, small commercial air conditioners and heat pumps 
with a cooling capacity of less than 65,000 Btu/h and air-cooled, 
three-phase, variable refrigerant flow air conditioners and heat pumps 
with a cooling capacity of less than 65,000 Btu/h that rely on new 
efficiency metrics and align with amended efficiency levels in the 
industry standard. For the relevant equipment classes, DOE has 
determined that it lacks clear and convincing evidence required by the 
statute to adopt standards more stringent than the levels specified in 
the industry standard.

DATES: The effective date of this rule is August 1, 2023. Compliance 
with the amended standards established for air cooled, three-phase, 
small commercial air conditioners and heat pumps with a cooling 
capacity of less than 65,000 Btu/h and air-cooled, three-phase, 
variable refrigerant flow air conditioners and heat pumps with a 
cooling capacity of less than 65,000 Btu/h in this final rule is 
required on and after January 1, 2025.

ADDRESSES: The docket for this rulemaking, which includes Federal 
Register notices, public meeting attendee lists and transcripts, 
comments, and other supporting documents/materials, is available for 
review at www.regulations.gov. All documents in the docket are listed 
in the www.regulations.gov index. However, not all documents listed in 
the index may be publicly available, such as information that is exempt 
from public disclosure.
    The docket web page can be found at www.regulations.gov/docket/EERE-2022-BT-STD-0008. The docket web page contains instructions on how 
to access all documents, including public comments, in the docket.
    For further information on how to review the docket, contact the 
Appliance and Equipment Standards Program staff at (202) 287-1445 or by 
email: [email protected].

FOR FURTHER INFORMATION CONTACT: 
    Ms. Catherine Rivest, U.S. Department of Energy, Office of Energy 
Efficiency and Renewable Energy, Building Technologies Office, EE-5B, 
1000 Independence Avenue SW, Washington, DC 20585-0121. Telephone: 
(202) 586-7335. Email: [email protected].
    Ms. Kristin Koernig, U.S. Department of Energy, Office of the 
General Counsel, GC-33, 1000 Independence Avenue SW, Washington, DC 
20585-0121. Telephone: (202) 586-3593. Email: 
[email protected].

SUPPLEMENTARY INFORMATION:

Table of Contents

I. Synopsis of the Final Rule
II. Introduction
    A. Authority
    B. Background
    1. Current Standards
    2. ASHRAE 90.1
    3. September 2020 NODA/RFI
    4. March 2022 NOPR
III. Discussion of Crosswalk Analysis
    A. Crosswalk Background
    B. Crosswalk Methodology
    1. Three-Phase, Less Than 65,000 Btu/h, Single-Package and 
Split-System ACUACs and ACUHPs
    2. Three-Phase, Less Than 65,000 Btu/h, Space-Constrained and 
Small-Duct, High-Velocity ACUACs and ACUHPs
    a. Space-Constrained Equipment
    b. Small-Duct, High-Velocity Equipment
    3. Three-Phase, Less Than 65,000 Btu/h VRF
    C. Crosswalk Results
IV. Estimates of Potential Energy Savings
V. Conclusions
    A. More Stringent Efficiency Levels
    B. Review Under Six Year Lookback
    C. Definitions for Space-Constrained and Small-Duct, High-
Velocity Equipment
    D. Energy Conservation Standards
    1. Standard Levels
    2. Compliance Date
VI. Procedural Issues and Regulatory Review
    A. Review Under Executive Orders 12866 and 13563
    B. Review Under the Regulatory Flexibility Act
    1. Description of Reasons Why Action Is Being Considered
    2. Objectives of, and Legal Basis for, Rule
    3. Description on Estimated Number of Small Entities Regulated
    4. Description and Estimate of Compliance Requirements Including 
Differences in Cost, if Any, for Different Groups of Small Entities
    5. Duplication, Overlap, and Conflict With Other Rules and 
Regulations
    6. Significant Alternatives to the Rule
    C. Review Under the Paperwork Reduction Act
    D. Review Under the National Environmental Policy Act of 1969
    E. Review Under Executive Order 13132
    F. Review Under Executive Order 12988
    G. Review Under the Unfunded Mandates Reform Act of 1995
    H. Review Under the Treasury and General Government 
Appropriations Act, 1999
    I. Review Under Executive Order 12630
    J. Review Under the Treasury and General Government 
Appropriations Act, 2001
    K. Review Under Executive Order 13211
    L. Information Quality
    M. Congressional Notification
VII. Approval of the Office of the Secretary

I. Synopsis of the Final Rule

    The Energy Policy and Conservation Act, Public Law 94-163, as 
amended,\1\ authorizes DOE to regulate the energy efficiency of a 
number of consumer products and certain industrial equipment. (42 
U.S.C. 6291-6317) Title III, Part C of EPCA \2\ established the Energy 
Conservation Program for Certain Industrial Equipment. (42 U.S.C. 6311-
6317) Such equipment includes air cooled, three-phase, small commercial 
air conditioners and heat pumps (ACUACs and ACUHPs) with a cooling 
capacity of less than 65,000 Btu/h (three-phase, less than 65,000 Btu/h 
ACUACs and ACUHPs) and air-cooled, three-phase, variable refrigerant 
flow (VRF) air conditioners and heat pumps with a cooling capacity of 
less than 65,000 Btu/h (three-phase, less than 65,000 Btu/h VRF), the 
subject of this rulemaking.
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    \1\ All references to EPCA in this document refer to the statute 
as amended through the Energy Act of 2020, Public Law 116-260 (Dec. 
27, 2020), which reflect the last statutory amendments that impact 
Parts A and A-1 of EPCA.
    \2\ For editorial reasons, upon codification in the U.S. Code, 
Part C was re-designated Part A-1.
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    Pursuant to EPCA, DOE is required to consider amending the energy 
efficiency standards for certain types of covered commercial and 
industrial equipment, including the equipment at issue in this 
document, whenever the American Society of Heating, Refrigerating, and 
Air-Conditioning Engineers (ASHRAE) amends the standard levels or 
design requirements prescribed in ASHRAE 90.1, ``Energy Standard for 
Buildings Except Low-Rise Residential Buildings,'' (ASHRAE 90.1), and, 
at a minimum, every 6 years. (42 U.S.C. 6313(a)(6)(A)-(C)) For each 
type of equipment, EPCA directs that if ASHRAE 90.1 is amended, DOE 
must adopt amended energy conservation standards at the new

[[Page 36369]]

efficiency level in ASHRAE 90.1, unless clear and convincing evidence 
supports a determination that adoption of a more-stringent efficiency 
level would produce significant additional energy savings and be 
technologically feasible and economically justified (42 U.S.C. 
6313(a)(6)(A)(ii) (referred to as the ASHRAE trigger)) If DOE adopts an 
amended uniform national standard at the efficiency level specified in 
the amended ASHRAE 90.1, DOE must establish such standard no later than 
18 months after publication of the amended industry standard. (42 
U.S.C. 6313(a)(6)(A)(ii)(I)) If DOE determines that a more-stringent 
standard is appropriate under the statutory criteria, DOE must 
establish such a more-stringent standard no later than 30 months after 
publication of the revised ASHRAE 90.1. (42 U.S.C. 6313(a)(6)(B)(i))
    Under EPCA, DOE must also review its energy conservation standards 
for three-phase, less than 65,000 Btu/h ACUAC, ACUHP, and VRF equipment 
every six years and either: (1) issue a notice of determination that 
the standards do not need to be amended, as adoption of a more-
stringent level under the relevant statutory criteria is not supported 
by clear and convincing evidence; or (2) issue a notice of proposed 
rulemaking including new proposed standards based on certain criteria 
and procedures in subparagraph (B).\3\ (42 U.S.C. 6313(a)(6)(C)(i))
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    \3\ In relevant part, subparagraph (B) specifies that: (1) in 
making a determination of economic justification, DOE must consider, 
to the maximum extent practicable, the benefits and burdens of an 
amended standard based on the seven criteria described in EPCA; (2) 
DOE may not prescribe any standard that increases the energy use or 
decreases the energy efficiency of a covered equipment; and (3) DOE 
may not prescribe an amended standard that interested persons have 
established by a preponderance of evidence is likely to result in 
the unavailability in the United States of any product type (or 
class) of performance characteristics (including reliability, 
features, sizes, capacities, and volumes) that are substantially the 
same as those generally available in the United States. (42 U.S.C. 
6313(a)(6)(B)(ii)-(iii))
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    ASHRAE officially released the 2019 version of Standard 90.1 
(ASHRAE 90.1-2019) in October 2019, thereby triggering DOE's previously 
referenced obligations, pursuant to EPCA, to determine, for certain 
classes of three-phase, less than 65,000 Btu/h ACUAC, ACUHP, and VRF 
equipment, whether: (1) the amended industry standard should be 
adopted; or (2) clear and convincing evidence exists to justify more-
stringent standard levels. For any classes where DOE was not triggered 
by ASHRAE 90.1-2019, the Department routinely considers those classes 
under EPCA's six-year-lookback provision at the same time to address 
the subject equipment in a comprehensive fashion.
    The Federal test procedures for three-phase, less than 65,000 Btu/h 
ACUACs and ACUHPs and for three-phase, less than 65,000 Btu/h VRF were 
most recently amended in a test procedure (TP) final rule published on 
December 16, 2022 (December 2022 Three-Phase TP final rule) and are 
currently prescribed at Title 10 of the Code of Federal Regulations 
(CFR) part 431, subpart F, appendix F1 (appendix F1). 87 FR 77298. The 
December 2022 Three-Phase TP final rule established amended test 
procedures for these equipment in appendix F1 and moved the test 
procedures referenced by the current Federal energy conservation 
standards into a new appendix at 10 CFR part 431, subpart F, appendix F 
(appendix F). The amended test procedures in appendix F1 reference 
American National Standards Institute (ANSI)/Air-Conditioning, Heating, 
and Refrigeration Institute (AHRI) 210/240, ``2023 Standard for 
Performance Rating of Unitary Air-conditioning & Air-source Heat Pump 
Equipment'' (AHRI 210/240-2023) and ANSI/ASHRAE Standard 37-2009, 
``Methods of Testing for Rating Electrically Driven Unitary Air-
Conditioning and Heat Pump Equipment'' (ANSI/ASHRAE 37-2009) for three-
phase, less than 65,000 Btu/h ACUACs and ACUHPs and for three-phase, 
less than 65,000 Btu/h VRF. For three-phase, less than 65,000 Btu/h 
ACUACs and ACUHPs, the test procedure in appendix F references ANSI/
AHRI Standard 210/240-2008, ``Performance Rating of Unitary Air-
Conditioning & Air-Source Heat Pump Equipment,'' approved by ANSI on 
October 27, 2011, and updated by Addendum 1 in June 2011 and Addendum 2 
in March 2012 (AHRI 210/240-2008). For three-phase, less than 65,000 
Btu/h VRF, the test procedure in appendix F references ANSI/AHRI 1230-
2010, ``2010 Standard for Performance Rating of Variable Refrigerant 
Flow (VRF) Multi-Split Air-Conditioning and Heat Pump Equipment,'' 
approved August 2, 2010 and updated by Addendum 1 in March 2011 (AHRI 
1230-2010).
    As set forth in ASHRAE 90.1-2019, the efficiency levels for three-
phase, less than 65,000 Btu/h ACUAC, ACUHP, and VRF equipment are 
specified in terms of seasonal energy efficiency ratio-2 (SEER2) for 
cooling mode and heating seasonal performance factor-2 (HSPF2) for 
heating mode. These efficiency levels are measured per AHRI 210/240-
2023. Furthermore, ASHRAE 90.1-2019 and AHRI 210/240-2023 align the 
test procedures for three-phase, less than 65,000 Btu/h equipment with 
those of their single-phase counterparts (i.e., measuring performance 
in terms of SEER2 and HSPF2), which, aside from the three-phase power 
supply, are otherwise identical.\4\
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    \4\ See, e.g., 80 FR 42614, 42622 (July 17, 2015), 83 FR 49501, 
49504 (Oct. 2, 2018), and 87 FR 77298, 77300.
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    DOE published a notice of proposed rulemaking (NOPR) proposing 
amended energy conservation standards for three-phase, less than 65,000 
Btu/h ACUAC, ACUHP, and VRF equipment in the Federal Register on March 
30, 2022. 87 FR 18290 (March 2022 NOPR). In the time between the 
publications of the March 2022 NOPR and this final rule, ASHRAE 
officially released the 2022 version of Standard 90.1 (ASHRAE 90.1-
2022) in January 2023, which updated the standard levels for three-
phase, less than 65,000 Btu/h VRF. In the March 2022 NOPR, DOE 
requested comment on its proposal to adopt the more stringent 
efficiency levels for three-phase, less than 65,000 Btu/h VRF presented 
in the first public review draft of Addendum `ay' to ASHRAE 90.1-2019, 
should such levels be incorporated into an updated version of ASHRAE 
90.1 that publishes prior to DOE publishing this final rule. Id. at 87 
FR 18304. As discussed in section V.A of this document, this proposal 
was supported by stakeholders. Accordingly, DOE is adopting more 
stringent efficiency level standards in this final rule for three-
phase, less than 65,000 Btu/h VRF to align with the amended levels in 
the updated 2022 version of ASHRAE 90.1, ASHRAE 90.1-2022.
    DOE is also adopting definitions for space-constrained (S-C) 
commercial package air conditioning and heating equipment (S-C ACUACs 
and ACUHPs) and for small-duct, high-velocity (SDHV) commercial package 
air conditioning and heating equipment (SDHV ACUACs and ACUHPs), as 
described in section V.D of this document. Additionally, DOE is 
separating equipment classes and corresponding energy conservation 
standards for three-phase, less than 65,000 Btu/h ACUACs and ACUHPs 
that are (1) S-C split-system ACUACs; (2) S-C split-system ACUHPs; (3) 
S-C single-package ACUACs; (4) S-C single-package ACUHPs; (5) SDHV 
ACUACs; and (6) SDHV ACUHPs. These additional equipment classes for 
three-phase, less than 65,000 Btu/h ACUACs and ACUHPs are included in 
both ASHRAE 90.1-2019 and ASHRAE 90.1-2022.
    As described in detail in section III of this document, DOE 
conducted a

[[Page 36370]]

crosswalk analysis to translate the current SEER and HSPF standards 
(measured per the test procedures outlined in appendix F) to SEER2 and 
HSPF2 levels, respectively (measured per the latest version of AHRI 
Standard AHRI 210/240 (i.e., AHRI 210/240-2023)). DOE then compared 
these crosswalked metrics to those presented in ASHRAE 90.1-2019 to 
determine which equipment classes are triggered by the increased 
stringency in ASHRAE 90.1-2019.
    In this document, DOE is updating the minimum energy conservation 
standard levels found at Tables 3, 4, and 13 of 10 CFR 431.97. The 
amended standards for three-phase, less than 65,000 Btu/h ACUACs and 
ACUHPs and for three-phase, less than 65,000 Btu/h VRF, which are 
expressed in SEER2 and HSPF2, are presented in Table I.1 and Table 
I.2.\5\ The standards in Table I.1 apply to all three-phase, less than 
65,000 Btu/h ACUACs and ACUHPs manufactured in or imported into the 
United States starting January 1, 2025. The standards in Table I.2 
apply to all three-phase, less than 65,000 Btu/h VRF manufactured in or 
imported into the United States starting January 1, 2025.
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    \5\ Energy conservations standards for air-cooled, three-phase, 
small, commercial packaged air conditioners and heat pumps with a 
cooling capacity of greater than 65,000 Btu/h and air-cooled, VRF, 
multi-split systems with a cooling capacity of greater than 65,000 
Btu/h are not addressed in this final rule. This equipment will 
instead be addressed in separate energy conservation standards 
rulemakings.
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    As described in section V of this document, DOE has determined that 
insufficient data are available to determine, based on clear and 
convincing evidence, that more-stringent standards would result in 
significant additional energy savings and be technologically feasible 
and economically justified. The clear and convincing threshold is a 
heightened standard, and would only be met where the Secretary of 
Energy (Secretary) has an abiding conviction, based on available facts, 
data, and DOE's own analyses, that it is highly probable an amended 
standard would result in a significant additional amount of energy 
savings, and is technologically feasible and economically justified. 
See American Public Gas Association v. U.S. Dep't of Energy, No. 20-
1068, 2022 WL 151923, at *4 (D.C. Cir. January 18, 2022) (citing 
Colorado v. New Mexico, 467 U.S. 310, 316, 104 S.Ct. 2433, 81 L.Ed.2d 
247 (1984)).
    DOE normally performs multiple in-depth analyses to determine 
whether there is clear and convincing evidence to support more 
stringent energy conservation standards (i.e., whether more stringent 
standards would produce significant additional conservation of energy 
and be technologically feasible and economically justified). However, 
as discussed in the section V of this final rule, due to the lack of 
available market and performance data, DOE could not conduct the 
analysis necessary to evaluate the potential energy savings or evaluate 
whether more stringent standards would be technologically feasible or 
economically justifiable, with sufficient certainty. As such, DOE is 
not adopting standards at levels more stringent than those specified in 
ASHRAE Standard 90.1. Rather, DOE is adopting the levels specified in 
ASHRAE 90.1-2019 for three-phase, less than 65,000 Btu/h ACUAC and 
ACUHP equipment as well as the levels specified in ASHRAE 90.1-2022 for 
three-phase, less than 65,000 Btu/h VRF, as required by EPCA, except 
for S-C ACUACs and ACUHPs and SDHV ACUACs and ACUHPs, for which DOE is 
adopting crosswalked levels that maintain equivalent stringency to the 
currently applicable Federal standards but do not align with the levels 
in ASHRAE 90.1-2019.
    For S-C ACUACs and ACUHPs and SDHV ACUACs and ACUHPs, DOE has 
concluded that the levels specified in ASHRAE 90.1-2019 are less 
stringent than the applicable current Federal standards. Therefore, to 
avoid backsliding (as required by EPCA),\6\ DOE is adopting standards 
for S-C ACUACs and ACUHPs and SDHV ACUACs and ACUHPs in terms of SEER2 
and HSPF2 that maintain equivalent stringency as that in the applicable 
current Federal standards (in terms of SEER and HSPF) for that 
equipment.
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    \6\ EPCA's anti-backsliding provision prevents the Secretary 
from prescribing any amended standard that either increases the 
maximum allowable energy use or decreases the minimum required 
energy efficiency of a covered product. (42 U.S.C. 
6313(a)(6)(B)(iii)(I))
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    The adopted standards, which are expressed in SEER2 and HSPF2, are 
shown in Table I.1 and Table I.2, and apply to all products 
manufactured in, or imported into, the United States starting on 
January 1, 2025.

 Table I.1--Energy Conservation Standards for Air-Cooled, Three-Phase, Small Commercial Package Air Conditioners
                        and Heat Pumps With a Cooling Capacity of Less Than 65,000 Btu/h
                                      [Compliance starting January 1, 2025]
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            Equipment type             Size category (cooling)        Subcategory           Minimum efficiency
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Air Conditioners.....................  <65,000 Btu/h..........  Split System...........  13.4 SEER2.
                                                                Single-Package.........  13.4 SEER2.
Heat Pumps...........................  <65,000 Btu/h..........  Split System...........  14.3 SEER2, 7.5 HSPF2.
                                                                Single-Package.........  13.4 SEER2, 6.7 HSPF2.
Space-Constrained Air Conditioners...  <=30,000 Btu/h.........  Split System...........  12.7 SEER2.\1\
                                                                Single-Package.........  13.9 SEER2.
Space-Constrained Heat Pumps.........  <=30,000 Btu/h.........  Split System...........  13.9 SEER2, 7.0 HSPF2.
                                                                Single-Package.........  13.9 SEER2, 6.7 HSPF2.
Small-Duct, High-Velocity Air          <65,000 Btu/h..........  Split System...........  13.0 SEER2.
 Conditioners.
Small-Duct, High-Velocity Heat Pumps.  <65,000 Btu/h..........  Split System...........  14.0 SEER2, 6.9 HSPF2.
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\1\ In the March 2022 NOPR, DOE produced a typographical error in ``Table I-1'' that suggested a proposed energy
  conservation standard of 13.9 SEER2 for S-C, split-system ACUACs. See 87 FR 18290, 18293. The 13.9 SEER2 level
  was incorrectly presented in the March 2022 NOPR and has been corrected for this final rule to match the 12.7
  SEER2 level presented by both the March 2022 NOPR's crosswalk results in ``Table III-1'' and the March 2022
  NOPR's proposed regulatory text. Id. at 87 FR 18299, 18311.


[[Page 36371]]


 Table I.2--Energy Conservation Standards for Air-Cooled, Three-Phase, VRF Multi-Split Air Conditioners and Heat
                             Pumps With a Cooling Capacity of Less Than 65,000 Btu/h
                                      [Compliance starting January 1, 2025]
----------------------------------------------------------------------------------------------------------------
            Equipment type             Size category (cooling)        Subcategory         Minimum efficiency \1\
----------------------------------------------------------------------------------------------------------------
VRF Air Conditioners.................  <65,000 Btu/h..........  Split System...........  13.4 SEER2.
VRF Heat Pumps.......................  <65,000 Btu/h..........  Split System...........  13.4 SEER2, 7.5 HSPF2.
----------------------------------------------------------------------------------------------------------------
\1\ The adopted standards for three-phase, less than 65,000 Btu/h VRF are more stringent than those standards
  proposed in ``Table I-2'' of the March 2022 NOPR, as to align with the minimum efficiency levels prescribed by
  ASHRAE 90.1-2022. See 87 FR 18290, 18293.

II. Introduction

    The following section briefly discusses the statutory authority 
underlying this final rule, as well as some of the relevant historical 
background related to the establishment of energy conservation 
standards for three-phase, less than 65,000 Btu/h ACUACs and ACUHPs and 
three-phase, less than 65,000 Btu/h VRF.

A. Authority

    EPCA authorizes DOE to regulate the energy efficiency of a number 
of consumer products and certain industrial equipment. Title III, Part 
C of EPCA, added by Public Law 95-619, Title IV, section 441(a) (42 
U.S.C. 6311-6317, as codified), established the Energy Conservation 
Program for Certain Industrial Equipment, which sets forth a variety of 
provisions designed to improve energy efficiency for covered equipment. 
This covered equipment includes three-phase, less than 65,000 Btu/h 
ACUACs and ACUHPs and three-phase, less than 65,000 Btu/h VRF, the 
subject of this rulemaking. (42 U.S.C. 6311(1)(B)) Pursuant to EPCA, 
DOE is to consider amending the energy efficiency standards for certain 
types of commercial and industrial equipment, including the equipment 
at issue in this document, whenever ASHRAE amends the standard levels 
or design requirements prescribed in ASHRAE/IES Standard 90.1, and, at 
a minimum, every 6 years. (42 U.S.C. 6313(a)(6)(A)-(C))
    The energy conservation program under EPCA, consists essentially of 
four parts: (1) testing, (2) labeling, (3) the establishment of Federal 
energy conservation standards, and (4) certification and enforcement 
procedures. Relevant provisions of EPCA include 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; 42 U.S.C. 6296).
    Federal energy efficiency requirements for covered equipment 
established under EPCA generally supersede State laws and regulations 
concerning energy conservation testing, labeling, and standards. (See 
42 U.S.C. 6316(a) and (b); 42 U.S.C. 6297) DOE may, however, grant 
waivers of Federal preemption in limited instances for particular State 
laws or regulations, in accordance with the procedures and other 
provisions set forth under EPCA. (See 42 U.S.C. 6316(b)(2)(D))
    Subject to certain criteria and conditions, DOE is required to 
develop test procedures to measure the energy efficiency, energy use, 
or estimated annual operating cost of each covered product. 
Manufacturers of covered equipment must use the Federal test procedures 
as the basis for: (1) certifying to DOE that their equipment complies 
with the applicable energy conservation standards adopted pursuant to 
EPCA (42 U.S.C. 6316(b); 42 U.S.C. 6296), and (2) making 
representations about the efficiency of that equipment (42 U.S.C. 
6314(d)). Similarly, DOE uses these test procedures to determine 
whether the equipment complies with relevant standards promulgated 
under EPCA. The current DOE test procedures for three-phase, less than 
65,000 Btu/h ACUACs and ACUHPs and for three-phase, less than 65,000 
Btu/h VRF appear at 10 CFR part 431, subpart F, appendix F1. The 
outdated test procedures for these equipment, referenced by the current 
energy conservation standards, appear at 10 CFR part 431, subpart F, 
appendix F.
    ASHRAE Standard 90.1 sets industry energy efficiency levels for 
small, large, and very large commercial package air-conditioning and 
heating equipment, packaged terminal air conditioners, packaged 
terminal heat pumps, warm air furnaces, packaged boilers, storage water 
heaters, instantaneous water heaters, and unfired hot water storage 
tanks (collectively ASHRAE equipment). For each type of listed 
equipment, EPCA directs that if ASHRAE amends Standard 90.1, DOE must 
adopt amended standards at the new ASHRAE efficiency level, unless DOE 
determines, supported by clear and convincing evidence, that adoption 
of a more stringent level would produce significant additional 
conservation of energy and would be technologically feasible and 
economically justified. (42 U.S.C. 6313(a)(6)(A)(ii)) Under EPCA, DOE 
must also review energy efficiency standards for three-phase, less than 
65,000 Btu/h ACUACs and ACUHPs and for three-phase, less than 65,000 
Btu/h VRF every six years and either: (1) issue a notice of 
determination that the standards do not need to be amended as adoption 
of a more stringent level is not supported by clear and convincing 
evidence; or (2) issue a notice of proposed rulemaking including new 
proposed standards based on certain criteria and procedures in 
subparagraph (B).\7\ (42 U.S.C. 6313(a)(6)(C))
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    \7\ In relevant part, subparagraph (B) specifies that: (1) in 
making a determination of economic justification, DOE must consider, 
to the maximum extent practicable, the benefits and burdens of an 
amended standard based on the seven criteria described in EPCA; (2) 
DOE may not prescribe any standard that increases the energy use or 
decreases the energy efficiency of a covered product; and (3) DOE 
may not prescribe any standard that interested persons have 
established by a preponderance of evidence is likely to result in 
the unavailability in the United States of any product type (or 
class) of performance characteristics (including reliability, 
features, sizes, capacities, and volumes) that are substantially the 
same as those generally available in the United States. (42 U.S.C. 
6313(a)(6)(B)(ii)-(iii))
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    In deciding whether a more-stringent standard is economically 
justified, under either the provisions of 42 U.S.C. 6313(a)(6)(A) or 42 
U.S.C. 6313(a)(6)(C), DOE must determine whether the benefits of the 
standard exceed its burdens. DOE must make this determination after 
receiving comments on the proposed standard, and by considering, to the 
maximum extent practicable, the following seven factors:

    (1) The economic impact of the standard on manufacturers and 
consumers of products subject to the standard;
    (2) The savings in operating costs throughout the estimated 
average life of the covered products in the type (or class) compared 
to any increase in the price, initial charges, or maintenance 
expenses for the covered equipment that are likely to result from 
the standard;

[[Page 36372]]

    (3) The total projected amount of energy savings likely to 
result directly from the standard;
    (4) Any lessening of the utility or the performance of the 
covered product likely to result from the standard;
    (5) The impact of any lessening of competition, as determined in 
writing by the Attorney General, that is likely to result from the 
standard;
    (6) The need for national energy conservation; and
    (7) Other factors the Secretary of Energy considers relevant.

(42 U.S.C. 6313(a)(6)(B)(ii)(I) through (VII))

    EPCA, as codified, also contains what is known as an ``anti-
backsliding'' provision, which prevents the Secretary from prescribing 
any amended standard that either increases the maximum allowable energy 
use or decreases the minimum required energy efficiency of a covered 
product. (42 U.S.C. 6313(a)(6)(B)(iii)(I)) Also, the Secretary may not 
prescribe an amended or new standard if interested persons have 
established by a preponderance of the evidence that the standard is 
likely to result in the unavailability in the United States in any 
covered product type (or class) of performance characteristics 
(including reliability), features, sizes, capacities, and volumes that 
are substantially the same as those generally available in the United 
States. (42 U.S.C. 6313(a)(6)(B)(iii)(II)(aa))

B. Background

1. Current Standards
    EPCA defines ``commercial package air conditioning and heating 
equipment'' as air-cooled, water-cooled, evaporatively-cooled, or 
water-source (not including ground water source) electrically operated, 
unitary central air conditioners and central air conditioning heat 
pumps for commercial application. (42 U.S.C. 6311(8)(A); 10 CFR 431.92) 
EPCA further classifies ``commercial package air conditioning and 
heating equipment'' into categories based on cooling capacity (i.e., 
small, large, and very large categories). (42 U.S.C. 6311(8)(B)-(D); 10 
CFR 431.92) ``Small commercial package air conditioning and heating 
equipment'' means equipment rated below 135,000 Btu per hour (cooling 
capacity). (42 U.S.C. 6311(8)(B); 10 CFR 431.92) ``Large commercial 
package air conditioning and heating equipment'' means equipment rated: 
(i) at or above 135,000 Btu per hour; and (ii) below 240,000 Btu per 
hour (cooling capacity). (42 U.S.C. 6311(8)(C); 10 CFR 431.92) ``Very 
large commercial package air conditioning and heating equipment'' means 
equipment rated: (i) at or above 240,000 Btu per hour; and (ii) below 
760,000 Btu per hour (cooling capacity). (42 U.S.C. 6311(8)(D); 10 CFR 
431.92)
    The energy conservation standards for three-phase, less than 65,000 
Btu/h ACUACs and ACUHPs were most recently amended through a final rule 
for energy conservation standards and test procedures for certain 
commercial heating, air-conditioning and water heating equipment 
published in the Federal Register on July 17, 2015. 80 FR 42614 (July 
2015 final rule). For three of the four equipment classes of three-
phase, less than 65,000 Btu/h ACUACs and ACUHPs (packaged air 
conditioners, packaged heat pumps, and split-system heat pumps), the 
July 2015 final rule adopted energy conservation standards that 
correspond to the levels in the 2013 revision of ASHRAE Standard 90.1. 
Id. at 80 FR 42616. For the remaining equipment class (split-system air 
conditioners), the July 2015 final rule did not amend the energy 
conservation standards. Id.
    DOE's current energy conservation standards for three-phase, less 
than 65,000 Btu/h ACUACs and ACUHPs are codified at Tables 3 and 4 of 
10 CFR 431.97. The current equipment classes are differentiated by 
configuration (split system or single package) and by heating 
capability (air conditioner or heat pump) and repeated in Table II.1 of 
this document.
    Pursuant to its authority under EPCA (42 U.S.C. 6313(a)(6)(A)) and 
in response to updates to ASHRAE Standard 90.1, DOE has established the 
category of VRF multi-split systems, which meets the EPCA definition of 
``commercial package air conditioning and heating equipment,'' but 
which EPCA did not expressly identify. See 10 CFR 431.92; 10 CFR 
431.97.
    DOE defines ``variable refrigerant flow air conditioner'' as a unit 
of commercial package air-conditioning and heating equipment that is 
configured as a split system air conditioner incorporating a single 
refrigerant circuit, with one or more outdoor units, at least one 
variable-speed compressor or an alternate compressor combination for 
varying the capacity of the system by three or more steps, and multiple 
indoor fan coil units, each of which is individually metered and 
individually controlled by an integral control device and common 
communications network and which can operate independently in response 
to multiple indoor thermostats. Variable refrigerant flow implies three 
or more steps of capacity control on common, inter-connecting piping. 
10 CFR 431.92.
    DOE defines ``variable refrigerant flow multi-split heat pump'' as 
a unit of commercial package air-conditioning and heating equipment 
that is configured as a split system heat pump that uses reverse cycle 
refrigeration as its primary heating source and which may include 
secondary supplemental heating by means of electrical resistance, 
steam, hot water, or gas. The equipment incorporates a single 
refrigerant circuit, with one or more outdoor units, at least one 
variable-speed compressor or an alternate compressor combination for 
varying the capacity of the system by three or more steps, and multiple 
indoor fan coil units, each of which is individually metered and 
individually controlled by a control device and common communications 
network and which can operate independently in response to multiple 
indoor thermostats. Variable refrigerant flow implies three or more 
steps of capacity control on common, inter-connecting piping. 10 CFR 
431.92.
    DOE adopted energy conservation standards specific to VRF multi-
split systems in a final rule published on May 16, 2012. 77 FR 28928 
(May 2012 final rule). When determining the appropriate standard 
levels, DOE considered updates to the 2010 edition of ASHRAE Standard 
90.1 (ASHRAE 90.1-2010), which designated separate equipment classes 
for VRF multi-split systems for the first time. Id. at 77 FR 28934. For 
three-phase, less than 65,000 Btu/h VRF, DOE maintained the standards 
from the equipment class under which the corresponding VRF multi-split 
system equipment class was previously regulated (i.e., three-phase, 
less than 65,000 Btu/h VRF had previously been covered as three-phase, 
less than 65,000 Btu/h ACUACs and ACUHPs). Id. at 77 FR 28938.
    DOE's current equipment classes for three-phase, less than 65,000 
Btu/h VRF are differentiated only by refrigeration cycle (air 
conditioners or heat pumps). DOE's current standards for VRF multi-
split systems are set forth at Table 13 to 10 CFR 431.97 and repeated 
in Table II.2 of this document.

[[Page 36373]]



 Table II.1--Current Federal Energy Conservation Standards for Air-Cooled, Three-Phase, Small Commercial Package Air Conditioners and Heating Equipment
                                                    With a Cooling Capacity of Less Than 65,000 Btu/h
--------------------------------------------------------------------------------------------------------------------------------------------------------
           Equipment type               Cooling capacity           Subcategory            Heating type         Efficiency level       Compliance date
--------------------------------------------------------------------------------------------------------------------------------------------------------
Small Commercial Package Air         <65,000 Btu/h.........  AC....................  All..................  13 SEER..............  June 16, 2008.
 Conditioner and Heating Equipment                           HP....................  All..................  14 SEER, 8.2 HSPF....  January 1, 2017.
 (Air-Cooled, 3-Phase, Split-
 System).
Small Commercial Package Air         <65,000 Btu/h.........  AC....................  All..................  14 SEER..............  January 1, 2017.
 Conditioning and Heating Equipment                          HP....................  All..................  14 SEER, 8.0 HSPF....  January 1, 2017.
 (Air-Cooled, 3-Phase, Single-
 Package).
--------------------------------------------------------------------------------------------------------------------------------------------------------


Table II.2--Current Federal Energy Conservation Standards for Air-Cooled, Three-Phase, Variable Refrigerant Flow
                Air Conditioners and Heat Pumps With a Cooling Capacity of Less Than 65,000 Btu/h
----------------------------------------------------------------------------------------------------------------
         Equipment type            Cooling capacity      Heating type      Efficiency level     Compliance date
----------------------------------------------------------------------------------------------------------------
VRF Multi-Split Air Conditioners  <65,000 Btu/h.....  All...............  13 SEER...........  June 16, 2008.
 (Air-Cooled).
VRF Multi-Split Heat Pumps (Air-  <65,000 Btu/h.....  All...............  13 SEER, 7.7 HSPF.  June 16, 2008.
 Cooled).
----------------------------------------------------------------------------------------------------------------

2. ASHRAE 90.1
    As previously discussed, ASHRAE released ASHRAE 90.1-2019 in 
October 2019, which updated the test procedure references, efficiency 
metrics, and efficiency levels for three-phase, less than 65,000 Btu/h 
ACUACs and ACUHPs. ASHRAE later released ASHRAE 90.1-2022 in January 
2023, which also updated the test procedure references, efficiency 
metrics, and efficiency levels for three-phase, less than 65,000 Btu/h 
VRF. ASHRAE 90.1-2022 incorporates the more stringent SEER2/HSPF2 
efficiency levels for three-phase, less than 65,000 Btu/h VRF found in 
Addendum `ay' to ASHRAE 90.1-2019. As the test procedures, efficiency 
metrics, and efficiency levels prescribed in ASHRAE 90.1-2022 for 
three-phase, less than 65,000 Btu/h ACUACs and ACUHPs did not change 
from ASHRAE 90.1-2019, new analysis of three-phase, less than 65,000 
Btu/h ACUACs and ACUHPs was not required for this final rule by the 
release of ASHRAE 90.1-2022.
    For three-phase, less than 65,000 Btu/h ACUACs and ACUHPs, the 
current DOE energy conservation standards reference the outdated test 
procedure in appendix F, which, in turn, reference the industry test 
procedure, AHRI 210/240-2008, and measures performance in terms of SEER 
and HSPF. ASHRAE 90.1-2019 references the updated industry test 
procedure AHRI 210/240-2023, which measures performance in terms of 
SEER2 and HSPF2. As discussed in section III of this document, DOE 
conducted a crosswalk analysis to determine whether the new metrics and 
efficiency levels in ASHRAE 90.1-2019 represent at least equivalent 
stringency as compared to the existing DOE standards in terms of SEER 
and HSPF. DOE's crosswalk analysis determined that ASHRAE 90.1-2019 
increased the stringency of cooling and heating mode efficiency levels 
for the two DOE equipment classes of three-phase, split-system, less 
than 65,000 Btu/h ACUAC and ACUHP equipment while leaving unchanged the 
stringency of single-packaged, three-phase equipment.
    Regarding three-phase, less than 65,000 Btu/h VRF, ASHRAE 90.1-2022 
also updates the relevant industry test procedure. The outdated test 
procedure in appendix F, referenced by the current DOE energy 
conservation standards, reference the industry test procedure, AHRI 
1230-2010. ASHRAE 90.1-2022 updates this reference to the updated 
industry test procedure AHRI 210/240-2023, which measures performance 
in terms of SEER2 and HSPF2. As discussed in section III of this 
document, DOE conducted a crosswalk analysis to determine whether the 
new metrics and efficiency levels in ASHRAE 90.1-2022 represent at 
least equivalent stringency as compared to the existing DOE standards 
in terms of SEER and HSPF for three-phase, less than 65,000 Btu/h VRF. 
DOE's crosswalk analysis determined that ASHRAE 90.1-2022 increased the 
stringency of both cooling and heating mode efficiency levels for air-
cooled, three-phase, less than 65,000 Btu/h VRF.
3. September 2020 NODA/RFI
    DOE published a notice of data availability and request for 
information (NODA/RFI) in response to the amendments to ASHRAE 90.1-
2019 in the Federal Register on September 25, 2020. 85 FR 60642 
(September 2020 NODA/RFI). In the September 2020 NODA/RFI, DOE compared 
the current Federal standards for three-phase, less than 65,000 Btu/h 
ACUACs and ACUHPs (in terms of SEER and HSPF) to the levels in ASHRAE 
90.1-2019 (in terms of SEER2 and HSPF2) and requested comment on its 
preliminary findings. Id. at 85 FR 60662-60666. The September 2020 
NODA/RFI did not address standards for three-phase, less than 65,000 
Btu/h VRF.
4. March 2022 NOPR
    In the March 2022 NOPR, DOE proposed amended energy conservation 
standards for both three-phase, less than 65,000 Btu/h ACUACs and 
ACUHPs and for three-phase, less than 65,000 Btu/h VRF. 87 FR 18290, 
18293. The proposed amended standards for three-phase, less than 65,000 
Btu/h ACUACs and ACUHPs were based on the preliminary crosswalk 
analysis first presented in the September 2020 NODA/RFI and extended 
into the March 2022 NOPR. Id. at 87 FR 18296-18298. The proposed 
amended standards for three-phase, less than 65,000 Btu/h VRF utilized 
additional crosswalk analysis conducted for and found only in the March 
2022 NOPR. Id. at 87 FR 18298-18299. DOE received six comments in 
response to the issues raised in the March 2022 NOPR from the 
interested parties listed in Table II.3.

[[Page 36374]]



                 Table II.3--List of Commenters With Written Submissions to the March 2022 NOPR
----------------------------------------------------------------------------------------------------------------
                                                                      Comment No. in
              Commenter(s)                       Abbreviation           the docket          Commenter type
----------------------------------------------------------------------------------------------------------------
Air-Conditioning, Heating and             AHRI......................              10  Manufacturer Trade Group.
 Refrigeration Institute.
Lennox International Inc................  Lennox....................              07  Manufacturer.
Carrier Corporation.....................  Carrier...................              06  Manufacturer.
California Investor-Owned Utilities.....  CA IOUs...................              08  Advocacy Group.
Appliance Standards Awareness Project,    Joint Advocates...........              09  Advocacy Group.
 American Council for an Energy-
 Efficient Economy, Northwest Energy
 Efficiency Alliance.
National Institute of Standards and       NIST......................              02  Government Agency.
 Technology.
----------------------------------------------------------------------------------------------------------------

    A parenthetical reference at the end of a comment quotation or 
paraphrase provides the location of the item in the public record.\8\ 
To the extent that interested parties have provided written comments 
that are substantively consistent with any oral comments provided 
during the May 16, 2022, public meeting, DOE cites the written comments 
throughout this final rule. DOE did not receive any oral comments 
during the webinar that substantively differ from written comments; 
therefore, oral comments are not summarized in this final rule.
---------------------------------------------------------------------------

    \8\ The parenthetical reference provides a reference for 
information located in the docket of DOE's rulemaking to develop 
energy conservation standards for three-phase, small commercial 
package air conditioning and heating equipment with a cooling 
capacity of less than 65,000 Btu/h. (Docket No. EERE-2022-BT-STD-
0008, which is maintained at www.regulations.gov). The references 
are arranged as follows: (commenter name, comment docket ID number, 
page of that document).
---------------------------------------------------------------------------

    DOE notes that the standards proposed for three-phase, less than 
65,000 Btu/h VRF in the March 2022 NOPR are less stringent than those 
adopted in this final rule. The March 2022 NOPR crosswalked current 
Federal standards from SEER and HSPF metrics to the newer SEER2 and 
HSPF2 metrics for these systems as the March 2022 NOPR was published 
prior to publication of ASHRAE 90.1-2022. In the March 2022 NOPR, DOE 
also proposed, however, that standard levels of equivalent stringency 
to those in Addendum `ay' to ASHRAE 90.1-2019 would be adopted should 
those standard levels be incorporated into an updated version of ASHRAE 
90.1 before publication of this final rule. 87 FR 18290, 18304. As 
previously mentioned, an updated version of ASHRAE 90.1, ASHRAE 90.1-
2022, was published in January 2023 and includes updated standard 
levels for three-phase, less than 65,000 Btu/h VRF. Thus, standards for 
three-phase, less than 65,000 Btu/h VRF adopted in this final rule are 
of equivalent stringency to those in ASHRAE 90.1-2022 and are more 
stringent than the current Federal standards.

III. Discussion of Crosswalk Analysis

A. Crosswalk Background

    The energy conservation standards adopted in this document were 
developed in response to updates to the relevant industry test standard 
(i.e., AHRI 210/240-2023), as well as updates to the minimum efficiency 
levels specified in ASHRAE 90.1-2019. As stated in section II.A of this 
document, DOE must consider amending the energy efficiency standards 
for certain types of commercial and industrial equipment, including the 
equipment at issue in this document, whenever ASHRAE amends the 
standard levels or design requirements prescribed in ASHRAE Standard 
90.1, and at a minimum, every 6 years. (42 U.S.C. 6313(a)(6)(A)-(C)) 
EPCA also prohibits DOE from prescribing any amended standard that 
either increases the maximum allowable energy use or decreases the 
minimum required energy efficiency of a covered product. (42 U.S.C. 
6313(a)(6)(B)(iii)(I)); commonly referred to as EPCA's anti-backsliding 
provision) DOE conducted separate crosswalk analyses for each equipment 
class to ensure that EPCA's anti-backsliding provision is not violated 
by the amended standards in this final rule.
    As described in the following sections, DOE's crosswalk analysis 
for three-phase, less than 65,000 Btu/h ACUACs and ACUHPs is consistent 
with the preliminary crosswalk analysis first presented in the 
September 2020 NODA/RFI and extended into the March 2022 NOPR. See 85 
FR 60642, 60662-60663 and 87 FR 18290, 18296-18298. The crosswalk in 
the March 2022 NOPR qualitatively evaluated whether the minimum 
efficiency levels for three-phase, less than 65,000 Btu/h ACUACs and 
ACUHPs presented in ASHRAE 90.1-2019 were of higher, lower, or 
equivalent stringency to the existing Federal standard levels. 87 FR 
18290, 18296-18300.
    With regards to three-phase, less than 65,000 Btu/h VRF, DOE's 
crosswalk, described further in the following sections, is consistent 
with the crosswalk presented for these equipment classes in the March 
2022 NOPR, with one exception. For the March 2022 NOPR, DOE's crosswalk 
qualitatively evaluated whether the minimum efficiency levels for 
three-phase, less than 65,000 Btu/h VRF presented in ASHRAE 90.1-2019 
were of higher, lower, or equivalent stringency to the existing Federal 
standard levels. Id. For this final rule, DOE's crosswalk instead 
considered the minimum efficiency levels presented in ASHRAE 90.1-2022, 
rather than ASHRAE 90.1-2019, when evaluating whether the minimum 
efficiency levels for three-phase, less that 65,000 Btu/h VRF were of 
higher, lower, or equivalent stringency to the existing Federal 
standard levels. DOE did not present crosswalk analysis for these 
equipment classes in any notices (i.e., the September 2020 NODA/RFI) 
prior to the March 2022 NOPR.
    On January 6, 2017, DOE published a direct final rule (DFR) 
amending energy conservation standards for residential central air 
conditioners (CACs) and heat pumps (HPs) (collectively CAC/HPs) 
(January 2017 CAC/HP ECS DFR). 82 FR 1786. The January 2017 CAC/HP ECS 
DFR established crosswalk translations for CAC/HPs from SEER and HSPF 
(measured per 10 CFR part 430, subpart B, appendix M (appendix M)) to 
SEER2 and HSPF2 (measured per 10 CFR part 430, subpart B, appendix M1 
(appendix M1)). Specifically, in the January 2017 CAC/HP ECS DFR DOE 
established multiple SEER-to-SEER2 translations that were unique to the 
test conditions for each product class. Id. at 82 FR 1849. In the 
January 2017 CAC/HP ECS DFR, DOE also established an HSPF-to-HSPF2 
translation and concluded that the 15 percent reduction from HSPF to 
HSPF2 that was observed in an earlier rule for split-system and single-
package heat pumps was appropriate also for S-C and SDHV heat pumps. 
Id. at 82 FR 1850.

[[Page 36375]]

    As described in the September 2020 NODA/RFI, AHRI 210/240-2023 
aligns test methods and ratings to be consistent with DOE's test 
procedure for single-phase CACs at appendix M1. 85 FR 60642, 60647. 
Given that three-phase equipment are generally identical to their 
single-phase counterparts, aside for three-phase power input, DOE 
presented a preliminary metric translation for three-phase, less than 
65,000 Btu/h ACUACs and ACUHPs based on the metric translation used for 
single-phase CAC/HPs presented in the January 2017 CAC/HP ECS DFR in 
the September 2020 NODA/RFI. Id. at 85 FR 60662. For three-phase 
equipment classes with Federal standards matching SEER and HPSF 
standards in Table V-29 of the January 2017 CAC/HP ECS DFR, DOE used 
the corresponding SEER2 and HSPF2 values from Table V-30 of the January 
2017 CAC/HP ECS DFR. For three-phase equipment classes that did not 
having matching SEER and/or HSPF values in Table V-29 of the January 
2017 CAC/HP ECS DFR, DOE evaluated the stringency of the ASHRAE 90.1-
2019 SEER2 and HSPF2 levels relative to the Federal SEER and HSPF 
standards by qualitatively assessing how the testing method changes 
made for single phase switching from SEER/HSPF to SEER2/HSPF2 would 
impact three-phase equipment. See Id. at 85 FR 60662-60663.

B. Crosswalk Methodology

1. Three-Phase, Less Than 65,000 Btu/h, Single-Package and Split-System 
ACUACs and ACUHPs
    Because three-phase, less than 65,000 Btu/h single-package air 
conditioners and heat pumps have directly comparable single-phase 
product classes, DOE was able to utilize the same crosswalk as 
described in the January 2017 CAC/HP ECS DFR when evaluating the 
relative stringency of ASHRAE 90.1-2019 levels. See 82 FR 1786, 1848-
1851. In the September 2020 NODA/RFI, DOE determined that the ASHRAE 
90.1-2019 efficiency standards are equivalent to the translated Federal 
efficiency standards for three-phase, single-package, less than 65,000 
Btu/h ACUACs and ACUHPs. 85 FR 60642, 60662-60663. However, for three-
phase, split-system, less than 65,000 Btu/h ACUACs and ACUHPs, DOE's 
crosswalk analysis determined that the levels in ASHRAE 90.1-2019 are 
more stringent than current Federal standards. Id. In the March 2022 
NOPR, DOE tentatively determined that it was unnecessary to provide 
specific crosswalk values for the two equipment classes of three-phase, 
split-system, less than 65,000 Btu/h ACUACs and ACUHPs for which ASHRAE 
90.1-2019 increased stringency as compared to the current Federal 
standards. 87 FR 18290, 18297.
    In response to the March 2022 NOPR, the Joint Advocates, AHRI, 
Carrier, and Lennox all supported DOE's crosswalk for three-phase, less 
than 65,000 Btu/h, single-package and split-system ACUACs and ACUHPs. 
(Joint Advocates, No. 9 at p. 1; AHRI, No. 10 at p. 2; Carrier, No. 6 
at p.2; Lennox, No. 7 at p. 2) DOE received no comments opposing DOE's 
crosswalk methodologies or results. Therefore, in this final rule, DOE 
is using the same crosswalk methodology for these equipment as proposed 
in the March 2022 NOPR.
2. Three-Phase, Less Than 65,000 Btu/h, Space-Constrained and Small-
Duct, High-Velocity ACUACs and ACUHPs
    In its preliminary crosswalk analysis in the September 2020 NODA/
RFI, DOE determined that the standards levels for S-C and SDHV 
equipment found in ASHRAE 90.1-2019 are less stringent than the current 
Federal standards for the following six equipment classes: (1) S-C, 
split-system ACUAC; (2) S-C, split-system ACUHP; (3) S-C, single-
package ACUAC; (4) S-C, single-package ACUHP; (5) SDHV split-system 
ACUAC; and (6) SDHV split-system ACUHP. 85 FR 60642, 60663. DOE's 
crosswalk showed that the crosswalked Federal standard levels for these 
equipment classes are qualitatively higher than the SEER2 and/or HSPF2 
levels found in ASHRAE 90.1-2019; however DOE did not determine 
specific values for an appropriate crosswalk. Id. Specific values for 
crosswalked standards were later presented in the March 2022 NOPR. 87 
FR 18290, 18299-18300. In the March 2022 NOPR, DOE reiterated that 
although the standard levels for S-C and SDHV equipment found in ASHRAE 
90.1-2019 are less stringent than current Federal standards, it still 
intends to consider these ASHRAE classes separately in this rulemaking 
as part of the six-year-lookback review. Id. at 87 FR 18297.
    In a NOPR published in the Federal Register on January 8, 2015, 
which covered energy conservation standards for commercial HVAC 
equipment, including three-phase, less than 65,000 Btu/h air 
conditioners and heat pumps (January 2015 ASHRAE 90.1 NOPR), DOE stated 
that EPCA does not separate these six additional equipment classes from 
other types of small commercial package air conditioning and heating 
equipment in its definitions, and, therefore, EPCA's definition of 
``small commercial package air conditioning and heating equipment'' 
includes SDHV and S-C air conditioners and heat pumps. 80 FR 1172, 
1184. DOE reiterated this position in both the September 2020 NODA/RFI 
and March 2022 NOPR. See 85 FR 60642, 60662; 87 FR 18290, 18297. EPCA 
generally directs DOE to establish amended uniform national standards 
for three-phase, less than 65,000 Btu/h ACUACs and ACUHPs at the 
minimum levels specified in ASHRAE Standard 90.1. (43 U.S.C. 
6313(a)(6)(A)(ii)(I)) As DOE has previously stated, when considering 
the ASHRAE trigger, DOE evaluates ASHRAE amendments at the class level. 
Because the six equipment classes of three-phase S-C and SDHV equipment 
prescribed in ASHRAE 90.1-2019 are covered as small commercial package 
air conditioning and heating equipment, DOE cannot adopt standard 
levels that are any lower than the current Federal standards. However, 
to distinguish S-C and SDHV equipment from the three-phase, split-
system, less than 65,000 Btu/h ACUACs and ACUHPs equipment for which 
DOE was triggered by more stringent levels in ASHRAE 90.1-2019, DOE 
proposed to establish separate equipment classes of three-phase S-C and 
SDHV equipment with separate standard levels in the March 2022 NOPR. 87 
FR 18290, 18297. Consistent with EPCA, the levels that DOE proposed for 
these S-C and SDHV equipment classes maintained equivalent stringency 
to the current applicable Federal standards and are therefore more 
stringent than the corresponding levels set forth in ASHRAE 90.1-2019. 
Id.
    The Joint Advocates and Lennox both supported DOE's crosswalk for 
three-phase S-C and SDHV equipment (Joint Advocates, No. 9 at p. 1; 
Lennox, No. 7 at p. 2) No comments were received in opposition to DOE's 
crosswalk methodologies or results. However, while no opposition to the 
crosswalk analysis was received, AHRI, CA IOUs, and Carrier all 
commented in opposition of adopting the crosswalk results for S-C and 
SDHV equipment as energy conservation standards because these are not 
aligned with efficiency levels specified in ASHRAE 90.1-2019. (AHRI, 
No. 10 at p. 2; CA IOUs, No. 8 at pp. 2-3; Carrier, No. 6 at p. 2)
    In particular, AHRI urged DOE to set levels for three-phase, less 
than 65,000 Btu/h, S-C and SDHV ACUACs and ACUHPs consistent with the 
levels specified in ASHRAE 90.1, which are harmonized with the single-
phase equivalents for these equipment. (AHRI, No. 10 at p. 2) AHRI 
noted that there is

[[Page 36376]]

little difference in operation, function, and performance between these 
three-phase equipment classes and their single-phase counterparts (at 
less than 65,000 Btu/h capacities), and stated that this is why ASHRAE 
90.1 minimum levels for three-phase equipment have always been 
harmonized with their single-phase counterparts. (Id.) Further, with no 
publicly available data for three-phase S-C and SDHV equipment (because 
there are no known commercially available equipment of these types), 
AHRI contended that DOE has no basis for developing an alternate market 
baseline (i.e. at conventional single-phase systems) for these 
equipment. (Id. at p. 3) AHRI asserted that commercial three-phase 
outdoor units that match to SDHV indoor units are single stage, and 
that variable stage or even two stage units, which do not yet exist, 
would be required to meet the Federal energy conservation standards at 
issue. (Id.) AHRI asked how three-phase S-C and SDHV equipment 
manufacturers would proceed to comply with unachievable levels. (Id.) 
Additionally, AHRI commented that the S-C and SDHV commercial market 
size is unknown although estimated to be small. (Id.) Because 
commercial applications that should be using three-phase commercial 
equipment are using single-phase residential products, AHRI explained 
that it is impossible for manufacturers to know the size of those 
markets for their equipment. (Id.) AHRI suggested that giving the end-
user the option to install three-phase commercial versions of S-C and 
SDHV equipment will allow building owners to better balance the power 
from each leg, which improves power factor, efficiency, and reduces 
their costs. (Id.)
    CA IOUs also encouraged DOE to consider adopting the efficiency 
levels specified in ASHRAE 90.1-2019 for three-phase, less than 65,000 
Btu/h S-C and SDHV ACUACs and ACUHPs. (CA IOUs, No. 8 at p. 2) In their 
comment, CA IOUs highlighted that there are only negligible differences 
in performance between these three-phase equipment and their single-
phase counterparts, and also observed that there are no models of 
three-phase S-C and SDHV ACUACs and ACUHPs currently on the market, 
consistent with DOE's tentative conclusion in the March 2022 NOPR. (Id. 
at pp. 2-3) In their analysis of DOE's Compliance Certification 
Management System (CCMS), CA IOUs approximated that over 90 percent of 
basic single-phase S-C and SDHV consumer products would fall below the 
standards for three-phase S-C and SDHV ACUACs and ACUHPs proposed in 
the March 2022 NOPR. (Id. at p. 3) With these observations in mind, CA 
IOUs warned that setting an overly stringent standard for equipment not 
yet on the market may preclude the future introduction of such 
equipment and potentially deprive consumers of any potential consumer 
utility offered by such equipment. (Id.) In addition, CA IOUs cautioned 
that the lack of available three-phase S-C and SDHV equipment makes it 
challenging to assess if the proposed standards in the March 2022 NOPR 
are technologically feasible and economically justified. (Id. at p. 3)
    Carrier also supported aligning standards for three-phase, less 
than 65,000 Btu/h S-C and SDHV equipment with their single-phase 
counterparts, as they are aligned in ASHRAE 90.1. (Carrier, No. 6 at p. 
2) Carrier noted that manufacturers typically have one design for S-C 
and SDHV equipment, with options for different power supplies, which do 
not affect energy efficiency. (Id.) As a result, Carrier cautioned that 
requiring different minimum efficiency levels for products that are 
essentially the same design creates undue burden for the industry. 
(Id.)
    In response to AHRI, DOE notes that it is obligated to conduct a 
crosswalk regardless of whether there is any equipment on the market. 
DOE also notes that it conducted its crosswalk using what it considered 
the most appropriate data from similar classes of equipment, and no 
negative comments were received on the crosswalk analysis presented in 
the March 2022 NOPR.
    In response to concerns regarding alignment with ASHRAE 90.1-2019, 
DOE notes that EPCA, as codified, contains what is known as an ``anti-
backsliding'' provision, which prevents the Secretary from prescribing 
any amended standard that either increases the maximum allowable energy 
use or decreases the minimum required energy efficiency of a covered 
product. (42 U.S.C. 6313(a)(6)(B)(iii)(I)) DOE understands that this 
final rule creates a discrepancy between the standards of three-phase, 
less than 65,000 Btu/h S-C and SDHV equipment and their single-phase 
counterparts, but DOE is unable to adopt standards lower than current 
Federal standards, as this would violate EPCA's anti-back-sliding 
provision.
    In the March 2022 NOPR, DOE developed a crosswalk for S-C, split-
system, and single-package ACUACs and ACUHPs and SDHV ACUACs and ACUHPs 
by applying similar translations as observed in the January 2017 CAC/HP 
ECS DFR for single-phase S-C and SDHV equipment to the existing Federal 
standards for small commercial package air conditioners and heat pumps. 
87 FR 18290, 18297-18298. In this final rule, DOE is utilizing the same 
crosswalk as presented in both the March 2022 NOPR and September 2020 
NODA/RFI. See 87 FR 18290, 18299-18300; 85 FR 60642, 60662-60663. DOE 
reiterates that it is not aware of any models of three-phase, less than 
65,000 Btu/h S-C or SDHV equipment currently on the market, and 
comments received in response to the March 2022 NOPR support this 
observation.
a. Space-Constrained Equipment
    Single-phase S-C air conditioners, for which energy conservation 
standards are not further separated into split-systems and single-
package systems, have a DOE minimum SEER of 12 that was translated to 
11.7 SEER2. 82 FR 1786, 1848-1849. Single-phase S-C heat pumps also 
have a minimum SEER of 12, but the January 2017 CAC/HP ECS DFR 
established a different translated SEER2 of 11.9. Id. This difference 
in the SEER2 requirement between S-C air conditioners and S-C heat 
pumps is due to differences in the requirements for determination of 
represented values codified at Table 1 to paragraph (a)(1) of 10 CFR 
429.16. In the December 2022 Three-Phase TP final rule, DOE aligned the 
representation requirements for three-phase, less than 65,000 Btu/h 
equipment with the representation requirements for single-phase CAC/
HPs. 87 FR 77298, 77312.
    Accordingly, in this document, DOE is using the same cooling-metric 
translations for three-phase, space-constrained equipment as the 
translations present for single-phase, space-constrained equipment 
(i.e., applying a 0.3 point SEER2 decrement for space-constrained air 
conditioners and a 0.1 point SEER2 decrement for space-constrained heat 
pumps). DOE notes that split-system S-C ACUACs are currently covered 
under the Federal standard of 13.0 SEER for three-phase, split-system, 
less than 65,000 Btu/h ACUACs, whereas S-C split-system ACUHPs and S-C 
single-package ACUACs and ACUHPs are each covered under corresponding 
DOE equipment classes with a standard of 14 SEER.\9\
---------------------------------------------------------------------------

    \9\ See table in paragraph (c)(1) of 10 CFR 430.32 for current 
standards.
---------------------------------------------------------------------------

    With regards to the translation from HSPF to HSPF2 for S-C ACUACs 
and ACUHPs, DOE used the same 15 percent reduction from the January 
2017 CAC/HP ECS DFR when translating from HSPF to HSPF2 at an 
equivalent stringency. Because the changes to the heating load line 
between AHRI 210/

[[Page 36377]]

240-2008 and AHRI 210/240-2023 are equivalent to the changes in the 
heating load line between appendix M and appendix M1, DOE has concluded 
that utilizing the same HSPF2 translation from single-phase CAC/HPs is 
appropriate for S-C ACUACs and ACUHPs.
b. Small-Duct, High-Velocity Equipment
    For single-phase SDHV CAC/HPs, there is no increase in external 
static pressure requirements in appendix M1 as compared to appendix M. 
Consequently, in the January 2017 CAC/HP ECS DFR, there was no decrease 
in numerical value when translating standards from SEER to SEER2. 82 FR 
1786, 1848-1849. Given that the test procedures for three-phase, less 
than 65,000 Btu/h ACUACs and ACUHPs are aligned with the test 
procedures for single-phase CAC/HPs, there are also no increases in 
external static pressure requirements for SDHV ACUACs and ACUHPs in 
AHRI 210/240-2023. Therefore, DOE did not use a decrement when 
translating from SEER to SEER2 for SDHV ACUACs and ACUHPs.
    For the heating mode for SDHV ACUHPs, DOE used the same 15 percent 
reduction from the January 2017 CAC/HP ECS DFR when translating from 
HSPF to HSPF2. Id. at 82 FR 1850. Because the changes to the heating 
load line between AHRI 210/240-2008 and AHRI 210/240-2023 are 
equivalent to the changes in the heating load line between appendix M 
and appendix M1, DOE has concluded that utilizing the same HSPF2 
translation from single-phase CAC/HPs is appropriate for SDHV ACUACs 
and ACUHPs.
3. Three-Phase, Less Than 65,000 Btu/h VRF
    The outdated test procedure in appendix F for VRF multi-split 
systems (including three-phase, less than 65,000 Btu/h VRF) references 
AHRI 1230-2010 with addendum 1. For three-phase, less than 65,000 Btu/h 
VRF, AHRI 1230-2010 is used to calculate cooling and heating efficiency 
in terms of the SEER and HSPF metrics, respectively. In May 2021, AHRI 
published AHRI 1230-2021, which excludes from its scope three-phase, 
less than 65,000 Btu/h VRF. Accordingly, in the December 2022 Three-
Phase TP final rule, DOE removed its reference to AHRI 1230-2010 and 
instead referenced AHRI 210/240-2023 in the test procedure for three-
phase, less than 65,000 Btu/h VRF. 87 FR 77298, 77301-77302. In that 
final rule, DOE noted that AHRI 210/240-2023 includes in its scope 
three-phase, less than 65,000 Btu/h VRF and harmonizes with the updated 
Federal test method for single-phase central air conditioners and 
central air conditioning heat pumps with rated cooling capacities of 
less than 65,000 Btu/h (i.e., appendix M1, which became effective 
January 1, 2023), which includes single-phase, air-cooled, VRF systems 
with a cooling capacity of less than 65,000 Btu/h. 87 FR 77298, 77304. 
Like appendix M1, AHRI 210/240-2023 is used to calculate cooling and 
heating efficiency in terms of updated metrics, SEER2 and HSPF2, 
respectively. As discussed in section II.B.2 of this document, ASHRAE 
90.1-2022 established SEER2 and HSPF2 levels for three-phase, less than 
65,000 Btu/h VRF.
    To translate the existing SEER and HSPF levels to SEER2 and HSPF2 
levels of equivalent stringency, DOE conducted a crosswalk analysis for 
three-phase, less than 65,000 Btu/h VRF in the March 2022 NOPR. Unlike 
the other equipment classes addressed in sections III.B.1 and III.B.2 
of this document, DOE could not rely on existing analysis specific to 
multi-split systems from the January 2017 CAC/HP ECS DFR and instead 
conducted an analytical crosswalk for this equipment by evaluating 
changes in the test procedure between AHRI 1230-2010 and AHRI 210/240-
2023. 87 FR 18290, 18298-18299. When deciding how to translate SEER to 
SEER2, DOE concluded no change in the numerical value of SEER2 
standards is needed to crosswalk from existing SEER standards. Id. at 
87 FR 18299. With regards to the translation from HSPF to HSPF2, DOE 
determined that the same 15 percent reduction from the January 2017 
CAC/HP ECS DFR when translating from HSPF to HSPF2 at an equivalent 
stringency was appropriate. Id. DOE did not receive any comments in 
opposition to this crosswalk methodology in response to the March 2022 
NOPR.
    As mentioned earlier, ASHRAE officially released ASHRAE 90.1-2022 
prior to publication of this final rule. Thus, unlike the March 2022 
NOPR, which compared standard levels for three-phase, less than 65,000 
Btu/h VRF to those standards specified in ASHRAE 90.1-2019, this 
crosswalk analysis compares standards to those specified in ASHRAE 
90.1-2022.

C. Crosswalk Results

    DOE utilized the crosswalk discussed in section III.B of this 
document to translate the current Federal standards to the SEER2 and 
HSPF2 metrics and determine whether the levels specified in ASHRAE 
90.1-2019 (or ASHRAE 90.1-2022, as applicable) represent more, less, or 
equivalent stringency as compared to the current Federal standards. 
DOE's crosswalk results for three-phase, less than 65,000 Btu/h ACUACs 
and ACUHPs and for three-phase, less than 65,000 Btu/h VRF are 
presented in Table III.1 of this document. Results for three-phase, 
less than 65,000 Btu/h ACUACs and ACUHPs are consistent with the 
results presented in the March 2022 NOPR. Id. at 87 FR 18299. Results 
for the two equipment classes of three-phase, less than 65,000 Btu/h 
VRF have changed, as their current Federal standards are compared to 
the more stringent standard levels specified in ASHRAE 90.1-2022, 
rather than those specified in ASHRAE 90.1-2019.

                   Table III.1--Crosswalk Results for Air-Cooled, Three-Phase, Less Than 65,000 Btu/h ACUAC, ACUHP, and VRF Equipment
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                 Federal energy                               Energy efficiency     Comparison of ASHRAE
  ASHRAE 90.1-2019 equipment class       Current federal          conservation        Crosswalk of current  levels in ASHRAE 90.1-      90.1-2019 to
                                         equipment class           standard(s)        federal standard(s)            2019              crosswalk \1\
--------------------------------------------------------------------------------------------------------------------------------------------------------
Air-cooled Air Conditioner, Three-   Air-cooled Air          14.0 SEER.............  13.4 SEER2...........  14.0 SEER before 1/1/  Equivalent.
 Phase, Single-Package, <65,000 Btu/  Conditioner, Three-                                                    2023, 13.4 SEER2 on
 h.                                   Phase, Single-                                                         and after 1/1/2023.
                                      Package, <65,000 Btu/
                                      h.
Air-cooled Air Conditioner, Three-   Air-cooled Air          13.0 SEER.............  <13.0 SEER2 \2\......  13.0 SEER before 1/1/  More Stringent.
 Phase, Split-System, <65,000 Btu/h.  Conditioner, Three-                                                    2023, 13.4 SEER2 on
                                      Phase, Split-System,                                                   and after 1/1/2023.
                                      <65,000 Btu/h.

[[Page 36378]]

 
Air-cooled Heat Pump, Three-Phase,   Air-cooled Heat Pump,   14.0 SEER, 8.0 HSPF...  13.4 SEER2, 6.7 HSPF2  14.0 SEER/8.0 HSPF     Equivalent.
 Single-Package, <65,000 Btu/h.       Three-Phase, Single-                                                   before 1/1/2023,
                                      Package, <65,000 Btu/                                                  13.4 SEER2/6.7 HSPF
                                      h.                                                                     on and after 1/1/
                                                                                                             2023.
Air-cooled Heat Pump, Three-Phase,   Air-cooled Heat Pump,   14.0 SEER, 8.2 HSPF...  13.4 SEER2, <7.5       14.0 SEER/8.2 HSPF     More Stringent.
 Split-System, <65,000 Btu/h.         Three-Phase, Split-                             HSPF2 \3\.             before 1/1/2023,
                                      System, <65,000 Btu/h.                                                 14.3 SEER2/7.5 HSPF2
                                                                                                             on and after 1/1/
                                                                                                             2023.
Space-Constrained, Air-cooled Air    Air-cooled Air          14.0 SEER.............  13.9 SEER2...........  12.0 SEER before 1/1/  Less Stringent.\3\
 Conditioner, Three-Phase, Single-    Conditioner, Three-                                                    2023, 11.7 SEER2 on
 Package, <=30,000 Btu/h.             Phase, Single-                                                         and after 1/1/2023.
                                      Package, <65,000 Btu/
                                      h.
Space-Constrained, Air-cooled Air    Air-cooled Air          13.0 SEER.............  12.7 SEER2...........  12.0 SEER before 1/1/  Less Stringent.\3\
 Conditioner, Three-Phase, Split-     Conditioner, Three-                                                    2023, 11.7 SEER2 on
 System, <=30,000 Btu/h.              Phase, Split-System,                                                   and after 1/1/2023.
                                      <65,000 Btu/h.
Space-Constrained, Air-Cooled Heat   Air-cooled Heat Pump,   14.0 SEER, 8.0 HSPF...  13.9 SEER2, 6.7 HSPF2  12.0 SEER/7.4 HSPF     Less Stringent.\3\
 Pump, Three-Phase, Single-Package,   Three-Phase, Single-                                                   before 1/1/2023,
 <=30,000 Btu/h.                      Package, <65,000 Btu/                                                  11.7 SEER2/6.3 HSPF2
                                      h.                                                                     on and after 1/1/
                                                                                                             2023.
Space-Constrained, Air-cooled Heat   Air-cooled Heat Pump,   14.0 SEER, 8.2 HSPF...  13.9 SEER2, 7.0 HSPF2  12.0 SEER/7.4 HSPF     Less Stringent.\3\
 Pump, Three-Phase, Split-System,     three-phase, Split-                                                    before 1/1/2023,
 <=30,000 Btu/h.                      System, <65,000 Btu/h.                                                 11.7 SEER2/6.3 HSPF2
                                                                                                             on and after 1/1/
                                                                                                             2023.
Small Duct High Velocity, Air-       Air-cooled Air          13.0 SEER.............  13.0 SEER2...........  12.0 SEER before 1/1/  Less Stringent.\3\
 cooled Air Conditioner, Three-       Conditioner, Three-                                                    2023, 12.0 SEER2 on
 Phase, Split-System, <65,000 Btu/h.  Phase, Split-System,                                                   and after 1/1/2023.
                                      <65,000 Btu/h.
Small Duct, High Velocity, Air-      Air-cooled Heat Pump,   14.0 SEER, 8.2 HSPF...  14.0 SEER2, 6.9 HSPF2  12.0 SEER/7.2 HSPF     Less Stringent.\3\
 cooled Heat Pump, Three-Phase,       Three-Phase, Split-                                                    before 1/1/2023,
 Split-System, <65,000 Btu/h.         Package, <65,000 Btu/                                                  12.0 SEER2/6.1 HSPF2
                                      h.                                                                     on and after 1/1/
                                                                                                             2023.
VRF, Air-Cooled, Air Conditioner...  Air-cooled VRF Multi-   13.0 SEER.............  12.9 SEER2...........  13.0 SEER before 1/1/  More Stringent.
                                      Split Air                                                              2023, 13.4 SEER2 on
                                      Conditioners, <65,000                                                  and after 1/1/2023
                                      Btu/h.                                                                 \4\.
VRF, Air-Cooled, Heat Pump.........  Air-cooled VRF Multi-   13.0 SEER, 7.7 HSPF...  12.9 SEER2, 6.5 HSPF2  13.0 SEER/7.7 HSPF     More Stringent.
                                      Split Heat Pumps,                                                      before 1/1/2023,
                                      <65,000 Btu/h.                                                         13.4 SEER2/7.5 HSPF2
                                                                                                             on and after 1/1/
                                                                                                             2023 \4\.
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ Column indicates whether the ASHRAE 90.1-2019 standard levels (or ASHRAE 90.1-2022 standards, as applicable) are less stringent, equivalent to, or
  more stringent than the crosswalked Federal standards.
\2\ The Federal SEER standard is lower than the ASHRAE 90.1-2019 SEER2 level indicating that the crosswalked Federal SEER2 standard will also be lower
  than the ASHRAE 90.1-2019 SEER2 level.
\3\ For S-C and SDHV equipment, the ASHRAE 90.1 levels are less stringent than the crosswalked Federal efficiency levels because these classes are split
  off from split-system and single-package, respectively.
\4\ Standard levels for the two equipment classes of three-phase, less than 65,000 Btu/h VRF are compared to levels specified by ASHRAE 90.1-2022, not
  ASHRAE 90.1-2019.

IV. Estimates of Potential Energy Savings

    As required under 42 U.S.C. 6313(a)(6)(A)(i), for three-phase, less 
than 65,000 Btu/h CUAC equipment classes for which ASHRAE 90.1-2019 set 
more stringent levels than the current Federal standards, DOE performed 
an assessment to determine the energy-savings potential of amending 
Federal standard levels to reflect the efficiency levels specified in 
ASHRAE 90.1-2019. The two equipment classes analyzed in the September 
2020 NODA/RFI were air-cooled, three-phase, split-system, less than 
65,000 Btu/h air conditioners and air-cooled, three-phase, split-
system, less than 65,000 Btu/h heat pumps. In the September 2020 NODA/
RFI, DOE presented the methodology to determine energy savings along 
with the findings of the energy savings potential for the two equipment 
classes and sought comment on the analysis. 85 FR 60642, 60666-60673.
    In its analysis for the March 2022 NOPR and this final rule, DOE 
did not make any changes to the inputs into the energy savings analysis 
that was presented in the September 2020 NODA/RFI. In the September 
2020 NODA/RFI, DOE estimated the potential site, primary, and full-
fuel-cycle (FFC) energy savings in quads (i.e., 10\15\ Btu) for 
adopting ASHRAE 90.1-2019 for the two equipment classes analyzed. 85 FR 
60642, 60672-60673. The potential energy savings of adopting ASHRAE 
90.1-2019 levels are measured relative to the current Federal 
standards. Table IV.1 displays the energy savings at the ASHRAE level 
for air-cooled, three-phase, split-system air conditioners less than 
65,000 Btu/h and air-cooled, three-phase, split-system heat pumps less 
than 65,000 Btu/h. The values in the

[[Page 36379]]

table below are identical to the values presented in both the September 
2020 NODA/RFI and March 2022 NOPR. 85 FR 60642, 60673; 87 FR 18290, 
18300.

   Table IV.1--Potential Energy Savings for Air-Cooled, Three-Phase, Split-System, Less Than 65,000 Btu/h Air
                                           Conditioners and Heat Pumps
----------------------------------------------------------------------------------------------------------------
                                        Split-system, air conditioner             Split system, heat pump
                                   -----------------------------------------------------------------------------
                                      ASHRAE efficiency                      ASHRAE efficiency
                                            level               Quads              level               Quads
----------------------------------------------------------------------------------------------------------------
                                          Site Energy Savings Estimate
----------------------------------------------------------------------------------------------------------------
Level 0--ASHRAE...................  13.4 SEER2...........          0.0007  14.3 SEER2, 7.5 HSPF2          0.0017
----------------------------------------------------------------------------------------------------------------
                                         Primary Energy Savings Estimate
----------------------------------------------------------------------------------------------------------------
Level 0--ASHRAE...................  13.4 SEER2...........          0.0017  14.3 SEER2, 7.5 HSPF2          0.0044
----------------------------------------------------------------------------------------------------------------
                                           FFC Energy Savings Estimate
----------------------------------------------------------------------------------------------------------------
Level 0--ASHRAE...................  13.4 SEER2...........          0.0018  14.3 SEER2, 7.5 HSPF2          0.0047
----------------------------------------------------------------------------------------------------------------

    The significance of energy savings offered by a new or amended 
energy conservation standard cannot be determined without knowledge of 
the specific circumstances surrounding a given rulemaking. 86 FR 70892, 
70901 (Dec. 13, 2021). Additionally, some covered products and 
equipment have most of their energy consumption occur during periods of 
peak energy demand. The impacts of these products on the energy 
infrastructure can be more pronounced than products with relatively 
constant demand. In evaluating the significance of energy savings, DOE 
considers differences in primary energy and FFC effects for different 
covered products and equipment when determining whether energy savings 
are significant. Primary energy and FFC effects include the energy 
consumed in electricity production (depending on load shape), in 
distribution and transmission, and in extracting, processing, and 
transporting primary fuels (i.e., coal, natural gas, petroleum fuels), 
and thus present a more complete picture of the impacts of energy 
conservation standards.
    DOE conducted an analysis of the emissions reductions at the ASHRAE 
efficiency level for air-cooled, three-phase, split-system, less than 
65,000 Btu/h air conditioners and air-cooled, three-phase, split-
system, less than 65,000 Btu/h heat pumps. This emissions analysis 
consists of two components. The first component estimates the effect of 
potential energy conservation standards on power sector combustion 
emissions of CO2, NOX, SO2, and Hg. 
The second component estimates the impacts of potential standards on 
emissions of two additional greenhouse gases, CH4 and 
N2O, as well as the reductions to emissions of other gases 
due to ``upstream'' activities in the fuel production chain. These 
upstream activities comprise extraction, processing, and transporting 
fuels to the site of combustion. Table IV.2 displays the emissions 
reductions estimates for the power sector, the upstream sector, and the 
full-fuel-cycle.

  Table IV.2--Potential Emissions Savings for Air-Cooled, Three-Phase, Split-System, Less Than 65,000 Btu/h Air
                                           Conditioners and Heat Pumps
----------------------------------------------------------------------------------------------------------------
                                                             Split system, air         Split system, heat pump
                                                                conditioner         ----------------------------
                                                       -----------------------------
                                                          ASHRAE efficiency level      ASHRAE efficiency level
----------------------------------------------------------------------------------------------------------------
Power Sector Emissions:
    CO2 (million metric tons).........................                          0.1                          0.2
    CH4 (thousand tons)...............................                          0.0                          0.0
    N2O (thousand tons)...............................                          0.0                          0.0
    SO2 (thousand tons)...............................                          0.0                          0.1
    NOX (thousand tons)...............................                          0.0                          0.1
    Hg (tons).........................................                          0.0                          0.0
Upstream Emissions:
    CO2 (million metric tons).........................                          0.0                          0.0
    CH4 (thousand tons)...............................                          0.5                          1.2
    N2O (thousand tons)...............................                          0.0                          0.0
    SO2 (thousand tons)...............................                          0.0                          0.0
    NOX (thousand tons)...............................                          0.1                          0.2
    Hg (tons).........................................                          0.0                          0.0
Total FFC Emissions:
    CO2 (million metric tons).........................                          0.1                          0.2
    CH4 (thousand tons)...............................                          0.5                          1.2
    N2O (thousand tons)...............................                          0.0                          0.0
    SO2 (thousand tons)...............................                          0.0                          0.1
    NOX (thousand tons)...............................                          0.1                          0.3
    Hg (tons).........................................                          0.0                          0.0
----------------------------------------------------------------------------------------------------------------


[[Page 36380]]

    In January 2023, ASHRAE published ASHRAE 90.1-2022, which updates 
the efficiency metrics for three-phase, less than 65,000 Btu/h VRF to 
be in terms of SEER2 and HSPF2. ASHRAE 90.1-2022 also updates the test 
procedure for three-phase, less than 65,000 Btu/h VRF to reference AHRI 
210/240-2023. ASHRAE 90.1-2022 includes SEER2/HSPF2 levels for three-
phase, less than 65,000 Btu/h VRF that are more stringent than the 
existing Federal standards.
    With the release of ASHRAE 90.1-2022, DOE is triggered by the EPCA 
requirement to adopt amended standards at the new ASHRAE efficiency 
level. (42 U.S.C. 6313(a)(6)(A)(ii)) Because there are no models of 
three-phase, less than 65,000 Btu/h VRF currently on the market, DOE 
finds that no there would be no potential energy savings associated 
with adopting those efficiency levels in ASHRAE 90.1-2022, and thus no 
energy savings analysis was conducted.

V. Conclusions

A. More Stringent Efficiency Levels

    As discussed, ASHRAE 90.1-2019 includes efficiency levels more 
stringent than the current Federal standards for three-phase, split-
system, less than 65,000 Btu/h ACUACs and ACUHPs, and ASHRAE 90.1-2022 
includes efficiency levels more stringent than the current Federal 
standards for three-phase, less than 65,000 Btu/h VRF. When triggered 
by an update to ASHRAE Standard 90.1, EPCA requires DOE to establish an 
amended uniform national standard for equipment classes at the minimum 
level specified in the amended ASHRAE Standard 90.1 unless DOE 
determines, by rule published in the Federal Register, and supported by 
clear and convincing evidence, that adoption of a uniform national 
standard more stringent than the amended ASHRAE Standard 90.1 for the 
equipment class would result in significant additional conservation of 
energy and is technologically feasible and economically justified. (42 
U.S.C. 6313(a)(6)(A)(ii)(I)-(II)) As noted previously, clear and 
convincing evidence is a heightened standard, and would only be met 
where the Secretary has an abiding conviction, based on available 
facts, data, and DOE's own analyses, that it is highly probable an 
amended standard would result in a significant additional amount of 
energy savings, and is technologically feasible and economically 
justified. See American Public Gas Association v. U.S. Dep't of Energy, 
No. 20-1068, 2022 WL 151923, at *4 (D.C. Cir. January 18, 2022) (citing 
Colorado v. New Mexico, 467 U.S. 310, 316, 104 S.Ct. 2433, 81 L.Ed.2d 
247 (1984)).
    In the March 2022 NOPR, DOE did not consider more stringent 
efficiency levels than those in ASHRAE 90.1-2019, as this would require 
DOE to crosswalk the entire market for this equipment. 87 FR 18290, 
18301-18303. The amended levels in ASHRAE 90.1-2019 rely on updated 
metrics (SEER2 and HSPF2), which were not applicable until 2023. 
Furthermore, the single-phase market, which is nearly identical to 
three-phase equipment, did not begin to use SEER2 and HSPF2 until 2023. 
Single-phase and three-phase models generally are manufactured on the 
same production lines and are physically identical to their 
corresponding single-phase central air conditioner and central air 
conditioning heat pump models except the former have three-phase 
electrical systems and use components, primarily motors and 
compressors, that are designed for three-phase power input. 87 FR 
77298, 77303. The amended levels for three-phase, less than 65,000 Btu/
h ACUACs and ACUHPs in ASHRAE 90.1-2019 are the same efficiency levels 
that will be required for single-phase air conditioners and heat pumps 
in 2023. (See 10 CFR 430.32(c)(5)). Given that the standard levels of 
three-phase, less than 65,000 Btu/h ACUACs and ACUHPs are in terms of 
updated SEER2 and HSPF2 metrics for the first time, public databases 
that encompass the full range of efficiency ratings in terms of the 
updated metrics for these three-phase, less than 65,000 Btu/h equipment 
do not exist yet.
    As previously stated, EPCA asserts that for DOE to adopt a standard 
more stringent than an amended ASHRAE 90.1 standard, DOE must support 
its decision with clear and convincing evidence. In the March 2022 
NOPR, DOE determined that the lack of market data for the amended 
efficiency metric creates substantial doubt in any analysis of energy 
savings that would result from efficiency levels more stringent than 
those in ASHRAE 90.1-2019. 87 FR 18290, 18302. Therefore, DOE did not 
conduct any analysis of energy savings from more stringent standards 
for the two triggered classes of three-phase, split-system, less than 
65,000 Btu/h ACUACs and ACUHPs. DOE did not receive any comments in 
response to the March 2022 NOPR suggesting that DOE conduct such an 
analysis.
    ASHRAE 90.1-2022 includes SEER2/HSPF2 levels for three-phase, less 
than 65,000 Btu/h VRF that are more stringent than the existing Federal 
standards, as stated previously. In the March 2022 NOPR, DOE noted that 
if ASHRAE finalized a future version of ASHRAE 90.1 that (1) publishes 
prior to DOE publishing a final rule for amended energy conservation 
standards for three-phase, less than 65,000 Btu/h VRF and (2) includes 
SEER2/HSPF2 levels for three-phase, less than 65,000 Btu/h VRF that are 
more stringent than the existing federal standards, DOE would adopt 
those levels in a final rule. Id. at 87 FR 18304. DOE requested comment 
on this proposal.
    CA IOUs, Carrier, and Lennox all commented in support of adopting 
the more stringent SEER2/HSPF2 efficiency levels for three-phase, less 
than 65,000 Btu/h VRF as proposed in the ASHRAE 90.1-2019 Addendum 
`ay', should such levels be incorporated into an updated version of 
ASHRAE 90.1. (CA IOUs, No. 8, p. 3; Carrier, No. 6, p. 2; Lennox, No. 
7, p. 2)
    Because there are no models of three-phase, less than 65,000 Btu/h 
VRF currently on the market, DOE finds that there would be no potential 
energy savings associated with adopting even more stringent efficiency 
levels than those in ASHRAE 90.1-2022, and thus DOE did not consider 
more stringent efficiency levels.

B. Review Under Six Year Lookback

    As discussed, DOE is required to conduct an evaluation of each 
class of covered equipment in ASHRAE Standard 90.1 every six years. (42 
U.S.C. 6313(a)(6)(C)(i)) Accordingly, in this document, DOE has also 
evaluated the three-phase, less than 65,000 Btu/h equipment for which 
ASHRAE 90.1-2019 did not increase the stringency of the standards: (1) 
three-phase, single-package, less than 65,000 Btu/h ACUACs and ACUHPs; 
(2) S-C, three-phase, less than 65,000 Btu/h ACUACs and ACUHPs; and (3) 
SDHV, three-phase, less than 65,000 Btu/h ACUACs and ACUHPs.
    As discussed in section III.B.2 of this final rule, DOE has 
concluded that there are no models on the market in the equipment 
classes of: (1) S-C, three-phase, less than 65,000 Btu/h ACUACs and 
ACUHPs; and (2) SDHV, three-phase, less than 65,000 Btu/h ACUACs and 
ACUHPs. Therefore, there would be no potential energy savings 
associated with more stringent standards for these classes, and DOE did 
not conduct further analyses of more stringent standards for these 
classes.

[[Page 36381]]

    For three-phase, single package, less than 65,000 Btu/h ACUACs and 
ACUHPs, similar to the triggered classes discussed in sections V.A and 
V.B of this document (i.e., three-phase, split-system, less than 65,000 
Btu/h ACUACs and ACUHPs and three-phase, less than 65,000 Btu/h VRF), 
there are limited SEER2 and HSPF2 data for models of varying 
efficiencies, and there is not a comparable industry analysis (i.e., 
translating ratings to the updated metric for these models on the 
market) for comparison. The market-wide analysis necessary to evaluate 
whether amended standards would result in significant energy savings 
and be technologically feasible and economically justified under the 
``clear and convincing'' threshold would require more than baseline 
data.
    Therefore, in line with the same reasoning presented in the March 
2022 NOPR (See 87 FR 18290), DOE determines that the ``clear and 
convincing'' threshold is not met for three-phase, single-package, less 
than 65,000 Btu/h ACUACs and ACUHPs. As such, DOE did not conduct an 
energy savings analysis of standard levels more stringent than the 
current Federal standard levels for three-phase, single package, less 
than 65,000 Btu/h ACUACs and ACUHPs not triggered by ASHRAE 90.1-2019.

C. Definitions for Space-Constrained and Small-Duct, High-Velocity 
Equipment

    ASHRAE 90.1-2019 includes S-C and SDHV equipment classes for three-
phase, less than 65,000 Btu/h ACUACs and ACUHPs. In the March 2022 
NOPR, DOE proposed to adopt separate standards for S-C, split-system, 
and single-package ACUACs and ACUHPs and SDHV ACUACs and ACUHPs. 87 FR 
18290, 18304. Along with the proposed standards, DOE proposed the 
following definitions for ``small-duct, high-velocity commercial 
package air conditioning and heating equipment'' and ``space-
constrained commercial package and heating equipment'' at 10 CFR 
431.92. Id. The two definitions proposed in the March 2022 NOPR align 
with the definitions specified in 10 CFR 430.2 for single-phase CAC/
HPs, which, as discussed in section V.A of this document, are identical 
to three-phase products except for the power input.
    Small-duct, High-velocity Commercial Package Air Conditioning and 
Heating Equipment means a basic model of commercial package, split-
system air conditioning and heating equipment that: has a rated cooling 
capacity no greater than 65,000 Btu/h; is air-cooled; and is paired 
with an indoor unit that (1) includes an indoor blower housed with the 
coil; (2) is designed for, and produces, at least 1.2 inches of 
external static pressure when operated at the certified air volume rate 
of 220-350 CFM per rated ton cooling in the highest default cooling 
airflow-controls setting; and (3) when applied in the field, uses high 
velocity room outlets generally greater than 1,000 fpm that have less 
than 6.0 square inches of free area.
    Space-constrained Commercial Package Air Conditioning and Heating 
Equipment means a basic model of commercial package air conditioning 
and heating equipment (packaged or split) that: (1) is air-cooled; (2) 
has a rated cooling capacity no greater than 30,000 Btu/h; (3) has an 
outdoor or indoor unit having at least two overall exterior dimensions 
or an overall displacement that: (i) is substantially smaller than 
those of other units that are: (A) currently usually installed in site-
built single-family homes; and (B) of a similar cooling, and, if a heat 
pump, heating capacity; and (ii) if increased, would certainly result 
in a considerable increase in the usual cost of installation or would 
certainly result in a significant loss in the utility of the product to 
the consumer; and (3) of a product type that was available for purchase 
in the United States as of December 1, 2000.
    In its response to the March 2022 NOPR, CA IOUs suggested 
clarifying modifications to the definitions of S-C and SDHV ACUACs and 
ACUHPs. (CA IOUs, No. 8 at pp. 1-2) CA IOUs' first suggestion proposed 
adding ``is powered by three-phase current'' to definitions for both S-
C and SDHV ACUACs and ACUHPs. (Id. at p. 2) CA IOUs' second suggestion 
proposed adding ``is not a single package vertical air conditioner 
(SPVAC) or a single package vertical heat pump (SPVHP)'' from the 
definition for S-C ACUACs and ACUHPs. (Id.)
    In this final rule, DOE has decided to include the clarification 
suggestions made in the CA IOUs' response to the March 2022 NOPR to 
prevent confusion about applicable equipment. As a result, DOE is 
adopting the following definitions for ``small-duct, high-velocity 
commercial package air conditioning and heating equipment'' and 
``space-constrained commercial package and heating equipment'' at 10 
CFR 431.92 in this final rule.
    Small-duct, High-velocity Commercial Package Air Conditioning and 
Heating Equipment means a basic model of commercial package, split-
system air conditioning and heating equipment that: (1) has a rated 
cooling capacity no greater than 65,000 Btu/h; (2) is powered by three-
phase current; (3) is air-cooled; and (4) is paired with an indoor unit 
that (i) includes an indoor blower housed with the coil; (ii) is 
designed for, and produces, at least 1.2 inches of external static 
pressure when operated at the certified air volume rate of 220-350 CFM 
per rated ton cooling in the highest default cooling airflow-controls 
setting; and (iii) when applied in the field, uses high velocity room 
outlets generally greater than 1,000 fpm that have less than 6.0 square 
inches of free area.
    Space-constrained Commercial Package Air Conditioning and Heating 
Equipment means a basic model of commercial package air conditioning 
and heating equipment (packaged or split) that: (1) is air-cooled; (2) 
is powered by three-phase current; (3) is not a single package vertical 
air conditioner or a single package vertical heat pump; (4) has a rated 
cooling capacity no greater than 30,000 Btu/h; (5) has an outdoor or 
indoor unit having at least two overall exterior dimensions or an 
overall displacement that: (i) is substantially smaller than those of 
other units that are: (A) currently usually installed in site-built 
single-family homes; and (B) of a similar cooling, and, if a heat pump, 
heating capacity; and (ii) if increased, would certainly result in a 
considerable increase in the usual cost of installation or would 
certainly result in a significant loss in the utility of the product to 
the consumer; and (6) of a product type that was available for purchase 
in the United States as of December 1, 2000.

D. Energy Conservation Standards

1. Standard Levels
    In this final rule, DOE is amending energy conservation standards 
for three-phase, less than 65,000 Btu/h ACUACs and ACUHPs and for 
three-phase, less than 65,000 Btu/h VRF. The amended energy 
conservation standards are in terms of SEER2 and HSPF2, which would 
align with the efficiency metrics specified in ASHRAE 90.1-2019 for 
three-phase, less than 65,000 Btu/h ACUACs and ACUHPs and ASHRAE 90.1-
2022 for three-phase, less than 65,000 Btu/h VRF and with the updated 
industry test procedure AHRI 210/240-2023.
    DOE is amending energy conservation standards to be in terms of 
SEER2 and HSPF2 that generally align with the standard levels in ASHRAE 
90.1 for three-phase equipment with some exceptions. For three-phase, 
split-system, less than 65,000 Btu/h ACUACs and ACUHPs, DOE is amending 
standards to align with the more stringent levels in ASHRAE 90.1-2019.

[[Page 36382]]

For three-phase, less than 65,000 Btu/h VRF, DOE is amending standards 
to align with the more stringent levels in ASHRAE 90.1-2022. For three-
phase, single-package, less than 65,000 Btu/h ACUACs and ACUHPs, DOE is 
amending standards to align with the levels in ASHRAE 90.1-2019, which 
maintain equivalent stringency to the current Federal standards. For S-
C split-system and single-package ACUACs and ACUHPs and SDHV ACUACs and 
ACUHPs, DOE is adopting standards that differ from the values specified 
in ASHRAE 90.1-2019. These standards are equivalent stringency to the 
current Federal standards but are translated to the new metrics SEER2 
and HSPF2. The adopted standards are presented in Table I.1 and Table 
I.2 of this document.
2. Compliance Date
    In the March 2022 NOPR, DOE proposed a standards compliance date of 
January 1, 2025, for all classes of three-phase, less than 65,000 Btu/h 
equipment. 87 FR 18290, 18304-18305. DOE understands that this 
compliance date is unaligned with the January 1, 2023 compliance date 
of amended SEER2 and HSPF2 standards for corresponding single-phase 
products. As discussed in the March 2022 NOPR, DOE reiterates that, 
while there may be benefits to aligning the compliance dates for SEER2 
and HSPF2 standards between single-phase products and three-phase 
equipment, DOE cannot prescribe a compliance date for amended standards 
that would violate its obligations under EPCA. Id. at 87 FR 18305. EPCA 
requires that DOE specify a compliance date no earlier than 2 years 
after the compliance date specified in ASHRAE Standard 90.1 for 
triggered classes of three-phase, less than 65,000 Btu/h ACUAC, ACUHP, 
and VRF equipment. Id. As a result, to provide a consistent compliance 
date for standards in terms of SEER2 and HSPF2 for all three-phase, 
less than 65,000 Btu/h equipment, the amended standards in this final 
rule apply to all three-phase, less than 65,000 Btu/h equipment that is 
manufactured on or after January 1, 2025.

VI. Procedural Issues and Regulatory Review

A. Review Under Executive Orders 12866 and 13563

    Executive Order (E.O.)12866, ``Regulatory Planning and Review,'' as 
supplemented and reaffirmed by E.O. 13563, ``Improving Regulation and 
Regulatory Review, 76 FR 3821 (Jan. 21, 2011), requires agencies, to 
the extent permitted by law, to (1) propose or adopt a regulation only 
upon a reasoned determination that its benefits justify its costs 
(recognizing that some benefits and costs are difficult to quantify); 
(2) tailor regulations to impose the least burden on society, 
consistent with obtaining regulatory objectives, taking into account, 
among other things, and to the extent practicable, the costs of 
cumulative regulations; (3) select, in choosing among alternative 
regulatory approaches, those approaches that maximize net benefits 
(including potential economic, environmental, public health and safety, 
and other advantages; distributive impacts; and equity); (4) to the 
extent feasible, specify performance objectives, rather than specifying 
the behavior or manner of compliance that regulated entities must 
adopt; and (5) identify and assess available alternatives to direct 
regulation, including providing economic incentives to encourage the 
desired behavior, such as user fees or marketable permits, or providing 
information upon which choices can be made by the public. DOE 
emphasizes as well that E.O. 13563 requires agencies to use the best 
available techniques to quantify anticipated present and future 
benefits and costs as accurately as possible. In its guidance, the 
Office of Information and Regulatory Affairs (OIRA) in the Office of 
Management and Budget (OMB) has emphasized that such techniques may 
include identifying changing future compliance costs that might result 
from technological innovation or anticipated behavioral changes. For 
the reasons stated in the preamble, this final regulatory action is 
consistent with these principles.
    Section 6(a) of E.O. 12866 also requires agencies to submit 
``significant regulatory actions'' to OIRA for review. OIRA has 
determined that this final regulatory action does not constitute a 
``significant regulatory action'' under section 3(f) of E.O. 12866. 
Accordingly, this action was not submitted to OIRA for review under 
E.O. 12866.

B. Review Under the Regulatory Flexibility Act

    The Regulatory Flexibility Act (5 U.S.C. 601 et seq.) requires 
preparation of an initial regulatory flexibility analysis (IRFA) and a 
final regulatory flexibility analysis (FRFA) for any rule that by law 
must be proposed for public comment, unless the agency certifies that 
the rule, if promulgated, will not have a significant economic impact 
on a substantial number of small entities. As required by E.O. 13272, 
``Proper Consideration of Small Entities in Agency Rulemaking,'' 67 FR 
53461 (Aug. 16, 2002), DOE published procedures and policies on 
February 19, 2003, to ensure that the potential impacts of its rules on 
small entities are properly considered during the rulemaking process. 
68 FR 7990. DOE has made its procedures and policies available on the 
Office of the General Counsel's website (www.energy.gov/gc/office-general-counsel). DOE has prepared the following FRFA for the products 
that are the subject of this rulemaking.
    The following sections detail DOE's FRFA for this energy 
conservation standards rulemaking.
1. Description of Reasons Why Action Is Being Considered
    DOE is amending the existing Federal energy conservation standards 
for three-phase, less than 65,000 Btu/h ACUACs and ACUHPs and three-
phase, less than 65,000 Btu/h VRF. EPCA requires DOE to consider 
amending the existing Federal energy conservation standards for certain 
types of listed commercial and industrial equipment (generally, 
commercial water heaters, commercial packaged boilers, commercial air 
conditioning and heating equipment, and packaged terminal air 
conditioners and heat pumps) each time ASHRAE Standard 90.1 is amended 
with respect to such equipment. (42 U.S.C. 6313(a)(6)(A)) For each type 
of equipment, EPCA directs that if ASHRAE Standard 90.1 is amended, DOE 
must adopt amended energy conservation standards at the new efficiency 
level in ASHRAE Standard 90.1, unless clear and convincing evidence 
supports a determination that adoption of a more stringent efficiency 
level as a national standard would produce significant additional 
energy savings and be technologically feasible and economically 
justified. (42 U.S.C. 6313(a)(6)(A)(ii)) This is referred to as ``the 
ASHRAE trigger.'' DOE must also review and determine whether to amend 
standards of each class of covered equipment in ASHRAE Standard 90.1 
every 6 years. (42 U.S.C. 6313(a)(6)(C)(i)).
2. Objectives of, and Legal Basis for, Rule
    EPCA requires DOE to consider amending the existing Federal energy 
conservation standards each time ASHRAE Standard 90.1 is amended with 
respect to such equipment. (42 U.S.C. 6313(a)(6)(A)) ASHRAE officially 
released ASHRAE 90.1-2019 in October 2019, thereby triggering DOE's 
previously referenced obligations to determine, for certain classes of 
three-phase, less than 65,000 Btu/h ACUAC, ACUHP, and VRF equipment, 
whether:

[[Page 36383]]

(1) the amended industry standard levels should be adopted; or (2) 
clear and convincing evidence exists to justify more-stringent standard 
levels. For any class where DOE was not triggered, the Department 
routinely considers those classes under EPCA's 6-year-lookback 
provision at the same time, to address the subject equipment in a 
comprehensive fashion.
3. Description on Estimated Number of Small Entities Regulated
    For manufacturers of three-phase, less than 65,000 Btu/h ACUACs and 
ACUHPs and three-phase, less than 65,000 Btu/h VRF, the Small Business 
Administration (SBA) has set a size threshold. DOE used the SBA's small 
business size standards to determine whether any small entities would 
be subject to the requirements of the proposed rule. See 13 CFR part 
121. The equipment covered by this proposed rule is classified under 
North American Industry Classification System (NAICS) code 333415,\10\ 
``Air-Conditioning and Warm Air Heating Equipment and Commercial and 
Industrial Refrigeration Equipment Manufacturing.'' In 13 CFR 121.201, 
the SBA sets a threshold of 1,250 employees or fewer for an entity to 
be considered as a small business for this category.
---------------------------------------------------------------------------

    \10\ The size standards are listed by NAICS code and industry 
description and are available at: www.sba.gov/document/support-table-size-standards (Last accessed on December 12, 2022).
---------------------------------------------------------------------------

    DOE reviewed the energy conservation standards adopted in this 
final rule under the provisions of the Regulatory Flexibility Act and 
the procedures and policies published on February 19, 2003. DOE relied 
on the Compliance Certification Database \11\ in identifying 
manufacturers. For three-phase, less than 65,000 Btu/h ACUACs and 
ACUHPs, DOE identified seventeen original equipment manufacturers 
(OEMs) covered by this rulemaking. DOE did not identify any 
manufacturers of three-phase, less than 65,000 Btu/h VRF. Of those 
seventeen OEMs, DOE screened out companies that do not meet the 
definition of a ``small business'' or are foreign-owned and operated. 
DOE identified four small, domestic OEMs for consideration. DOE used 
publicly available information and subscription-based market research 
tools (e.g., reports from Dun & Bradstreet) \12\ to determine 
headcount, revenue, and geographic presence of the small businesses. Of 
those four small OEMs, one is an AHRI member and three are not AHRI 
members.
---------------------------------------------------------------------------

    \11\ DOE's Compliance Certification Database is available at: 
www.regulations.doe.gov/ccms.
    \12\ Dun & Bradstreet reports are available at 
app.dnbhoovers.com.
---------------------------------------------------------------------------

    In the March 2022 NOPR, DOE requested comment on its understanding 
of the current market accounted for by small manufacturers, as well as 
its understanding of the efficiency of the equipment offered by such 
manufacturers. 87 FR 18290, 18307. In its response, Carrier indicated 
that it did not have this requested information at the time. (Carrier, 
No. 6, p. 3) No other comments were received on this topic.
4. Description and Estimate of Compliance Requirements Including 
Differences in Cost, if Any, for Different Groups of Small Entities
    In this final rule, DOE:
     Adopts amended energy conservations standards for three-
phase, less than 65,000 Btu/h ACUACs and ACUHPs corresponding to the 
minimum efficiency levels in ASHRAE 90.1-2019. The levels are in terms 
of new metrics seasonal energy efficiency ratio-2 (SEER2) and heating 
seasonal performance factor-2 (HSPF2);
     Separates energy conservation standards for three-phase, 
less than 65,000 Btu/h ACUACs and ACUHPs further into: (1) three-phase, 
S-C, commercial split-system air conditioners (S-C ACUACs); (2) three-
phase, S-C, commercial split-system heat pumps (S-C ACUHPs); (3) S-C 
single-package ACUACs; (4) S-C single-package ACUHPs; (5) three-phase, 
SDHV commercial air conditioners (SDHV ACUACs); and (6) three-phase, 
SDHV commercial heat pumps (SDHV ACUHPs). These additional equipment 
classes are included in ASHRAE 90.1-2019 for three-phase, less than 
65,000 Btu/h ACUACs and ACUHPs; and
     Adopts amended energy conservations standards for three-
phase, less than 65,000 Btu/h VRF corresponding to the minimum 
efficiency levels in ASHRAE 90.1-2022. The levels are in terms of new 
metrics seasonal energy efficiency ratio-2 (SEER2) and heating seasonal 
performance factor-2 (HSPF2)
    For S-C ACUACs and ACUHPs and SDHV ACUACs and ACUHPs, the current 
applicable Federal standards are more stringent than the ASHRAE 90.1-
2019 levels. To avoid backsliding (as required by EPCA), DOE cannot 
adopt the ASHRAE 90.1-2019 levels for these classes and is therefore 
adopting standards for S-C ACUACs and ACUHPs and SDHV ACUACs and ACUHPs 
equipment in terms of SEER2 and HSPF2 that maintain equivalent 
stringency to the applicable current Federal standards (in terms of 
SEER and HSPF). Of note, DOE has concluded that there are no models of 
S-C ACUACs and ACUHPs and SDHV ACUACs and ACUHPs on the market.
    For three-phase, single-package, less than 65,000 Btu/h ACUACs and 
ACUHPs, the ASHRAE 90.1-2019 levels are of equivalent stringency to the 
current Federal standards. Therefore, DOE's adoption of standards in 
terms of the new metrics SEER2 and HSPF2 that are crosswalked from the 
current Federal standards would not increase the stringency of 
standards.
    ASHRAE 90.1-2022 includes minimum efficiency levels for three-
phase, less than 65,000 Btu/h VRF that are more stringent than the 
current Federal standards. DOE must adopt amended standards at the 
amended ASHRAE efficiency levels unless DOE determines, supported by 
clear and convincing evidence, that adoption of a more stringent 
standard would produce significant additional conservation of energy 
and would be technologically feasible and economically justified. (42 
U.S.C. 6313(a)(6)(A)(ii). Because DOE has made no such determination, 
this final rule adopts amended standards at the amended ASHRAE 
efficiency levels for three-phase, less than 65,000 Btu/h VRF.
    ASHRAE 90.1-2019 includes minimum efficiency levels for three-
phase, split-system, less than 65,000 Btu/h ACUACs and ACUHPs that are 
more stringent than the current Federal standards. DOE must adopt 
amended standards at the amended ASHRAE efficiency levels unless DOE 
determines, supported by clear and convincing evidence, that adoption 
of a more stringent standard would produce significant additional 
conservation of energy and would be technologically feasible and 
economically justified. (42 U.S.C. 6313(a)(6)(A)(ii). Because DOE has 
made no such determination, this final rule adopts amended standards at 
the amended ASHRAE efficiency levels for three-phase, split-system, 
less than 65,000 Btu/h ACUACs and ACUHPs.
    In estimating the impact to small manufacturers, DOE recognizes 
that manufacturers may incur conversion costs as a result of the 
amended standards for three-phase, split-system, less than 65,000 Btu/h 
ACUACs and ACUHPs. In reviewing all commercially available models of 
three-phase, split-system, less than 65,000 Btu/h ACUACs and ACUHPs in 
DOE's Compliance Certification Database, the four small manufacturers 
account for 30 percent of model offerings. For each of the four small 
manufacturers, approximately 58 percent of the companies' current 
models would meet the adopted levels.

[[Page 36384]]

For the current models that do not meet the adopted levels, the small 
manufacturers would need to either discontinue or redesign non-
compliant models. However, adoption of standards at least as stringent 
as the ASHRAE levels is required under EPCA; furthermore, adopting 
standards above ASHRAE levels (DOE's only other option under 42 U.S.C. 
6313(a)(6)(A)(ii)) would lead to an even greater portion of small 
manufacturer models requiring redesign. Therefore, DOE has determined 
that the adopted efficiency level provides the least cost option for 
small manufacturers.
5. Duplication, Overlap, and Conflict With Other Rules and Regulations
    DOE is not aware of any rules or regulations that duplicate, 
overlap, or conflict with this final rule.
6. Significant Alternatives to the Rule
    As EPCA requires DOE to either adopt the ASHRAE levels or to adopt 
higher standards, DOE is limited in options to mitigate impacts to 
small businesses from the more stringent ASHRAE Standard 90.1 levels. 
DOE's adoption of the more stringent levels in ASHRAE 90.1-2019 for 
three-phase, split-system, less than 65,000 Btu/h ACUACs and ACUHPs is 
the least cost option to industry.
    Manufacturers subject to DOE's energy efficiency standards may 
apply to DOE's Office of Hearings and Appeals for exception relief 
under certain circumstances. Manufacturers should refer to 10 CFR part 
1003 for additional details.

C. Review Under the Paperwork Reduction Act

    Manufacturers of three-phase, less than 65,000 Btu/h ACUACs and 
ACUHPs and three-phase, less than 65,000 Btu/h VRF must certify to DOE 
that their products comply with any applicable energy conservation 
standards. In certifying compliance, manufacturers must test their 
products according to the DOE test procedures for three-phase, less 
than 65,000 Btu/h ACUACs and ACUHPs and three-phase, less than 65,000 
Btu/h VRF, including any amendments adopted for those test procedures. 
DOE has established regulations for the certification and recordkeeping 
requirements for all covered consumer products and commercial 
equipment, including three-phase, less than 65,000 Btu/h ACUACs and 
ACUHPs and three-phase, less than 65,000 Btu/h VRF. (See generally 10 
CFR part 429). The collection-of-information requirement for the 
certification and recordkeeping is subject to review and approval by 
OMB under the Paperwork Reduction Act (PRA). This requirement has been 
approved by OMB under OMB control number 1910-1400. Public reporting 
burden for the certification is estimated to average 35 hours per 
response, including the time for reviewing instructions, searching 
existing data sources, gathering and maintaining the data needed, and 
completing and reviewing the collection of information.
    Notwithstanding any other provision of the law, no person is 
required to respond to, nor shall any person be subject to a penalty 
for failure to comply with, a collection of information subject to the 
requirements of the PRA, unless that collection of information displays 
a currently valid OMB Control Number.

D. Review Under the National Environmental Policy Act of 1969

    Pursuant to the National Environmental Policy Act of 1969 (NEPA), 
DOE has analyzed this proposed action rule in accordance with NEPA and 
DOE's NEPA implementing regulations (10 CFR part 1021). DOE has 
determined that this rule qualifies for categorical exclusion under 10 
CFR part 1021, subpart D, appendix B5.1 because it is a rulemaking that 
establishes energy conservation standards for consumer products or 
industrial equipment, none of the exceptions identified in B5.1(b) 
apply, no extraordinary circumstances exist that require further 
environmental analysis, and it meets the requirements for application 
of a categorical exclusion. See 10 CFR 1021.410. Therefore, DOE has 
determined that promulgation of this final rule is not a major Federal 
action significantly affecting the quality of the human environment 
within the meaning of NEPA and does not require an environmental 
assessment or an environmental impact statement.

E. Review Under Executive Order 13132

    E.O. 13132, ``Federalism,'' 64 FR 43255 (Aug. 10, 1999), imposes 
certain requirements on Federal agencies formulating and implementing 
policies or regulations that preempt State law or that have federalism 
implications. The Executive order requires agencies to examine the 
constitutional and statutory authority supporting any action that would 
limit the policymaking discretion of the States and to carefully assess 
the necessity for such actions. The Executive order also requires 
agencies to have an accountable process to ensure meaningful and timely 
input by State and local officials in the development of regulatory 
policies that have federalism implications. On March 14, 2000, DOE 
published a statement of policy describing the intergovernmental 
consultation process it will follow in the development of such 
regulations. 65 FR 13735. DOE has examined this final rule and has 
determined that it would not have a substantial direct effect on the 
States, on the relationship between the national government and the 
States, or on the distribution of power and responsibilities among the 
various levels of government. EPCA governs and prescribes Federal 
preemption of State regulations as to energy conservation for the 
equipment that are the subject of this final rule. States can petition 
DOE for exemption from such preemption to the extent, and based on 
criteria, set forth in EPCA. (42 U.S.C. 6297) Therefore, no further 
action is required by Executive Order 13132.

F. Review Under Executive Order 12988

    With respect to the review of existing regulations and the 
promulgation of new regulations, section 3(a) of E.O. 12988, ``Civil 
Justice Reform,'' imposes on Federal agencies the general duty to 
adhere to the following requirements: (1) eliminate drafting errors and 
ambiguity, (2) write regulations to minimize litigation, (3) provide a 
clear legal standard for affected conduct rather than a general 
standard, and (4) promote simplification and burden reduction. 61 FR 
4729 (Feb. 7, 1996). Regarding the review required by section 3(a), 
section 3(b) of E.O. 12988 specifically requires that Executive 
agencies make every reasonable effort to ensure that the regulation (1) 
clearly specifies the preemptive effect, if any, (2) clearly specifies 
any effect on existing Federal law or regulation, (3) provides a clear 
legal standard for affected conduct while promoting simplification and 
burden reduction, (4) specifies the retroactive effect, if any, (5) 
adequately defines key terms, and (6) addresses other important issues 
affecting clarity and general draftsmanship under any guidelines issued 
by the Attorney General. Section 3(c) of E.O. 12988 requires Executive 
agencies to review regulations in light of applicable standards in 
section 3(a) and section 3(b) to determine whether they are met or it 
is unreasonable to meet one or more of them. DOE has completed the 
required review and determined that, to the extent permitted by law, 
this final rule meets the relevant standards of E.O. 12988.

G. Review Under the Unfunded Mandates Reform Act of 1995

    Title II of the Unfunded Mandates Reform Act of 1995 (UMRA) 
requires each Federal agency to assess the effects

[[Page 36385]]

of Federal regulatory actions on State, local, and Tribal governments 
and the private sector. Pub. L. 104-4, sec. 201 (codified at 2 U.S.C. 
1531). For a regulatory action likely to result in a rule that may 
cause the expenditure by State, local, and Tribal governments, in the 
aggregate, or by the private sector of $100 million or more in any one 
year (adjusted annually for inflation), section 202 of UMRA requires a 
Federal agency to publish a written statement that estimates the 
resulting costs, benefits, and other effects on the national economy. 
(2 U.S.C. 1532(a), (b)) The UMRA also requires a Federal agency to 
develop an effective process to permit timely input by elected officers 
of State, local, and Tribal governments on a ``significant 
intergovernmental mandate,'' and requires an agency plan for giving 
notice and opportunity for timely input to potentially affected small 
governments before establishing any requirements that might 
significantly or uniquely affect them. On March 18, 1997, DOE published 
a statement of policy on its process for intergovernmental consultation 
under UMRA. 62 FR 12820. DOE's policy statement is also available at 
www.energy.gov/sites/prod/files/gcprod/documents/umra_97.pdf.
    This final rule does not contain a Federal intergovernmental 
mandate, nor is it expected to require expenditures of $100 million or 
more in any one year by the private sector. As a result, the analytical 
requirements of UMRA do not apply.

H. Review Under the Treasury and General Government Appropriations Act, 
1999

    Section 654 of the Treasury and General Government Appropriations 
Act, 1999 (Pub. L. 105-277) requires Federal agencies to issue a Family 
Policymaking Assessment for any rule that may affect family well-being. 
This final rule would not have any impact on the autonomy or integrity 
of the family as an institution. Accordingly, DOE has concluded that it 
is not necessary to prepare a Family Policymaking Assessment.

I. Review Under Executive Order 12630

    Pursuant to E.O. 12630, ``Governmental Actions and Interference 
with Constitutionally Protected Property Rights,'' 53 FR 8859 (March 
18, 1988), DOE has determined that this final rule would not result in 
any takings that might require compensation under the Fifth Amendment 
to the U.S. Constitution.

J. Review Under the Treasury and General Government Appropriations Act, 
2001

    Section 515 of the Treasury and General Government Appropriations 
Act, 2001 (44 U.S.C. 3516, note) provides for Federal agencies to 
review most disseminations of information to the public under 
information quality guidelines established by each agency pursuant to 
general guidelines issued by OMB. OMB's guidelines were published at 67 
FR 8452 (Feb. 22, 2002), and DOE's guidelines were published at 67 FR 
62446 (Oct. 7, 2002). Pursuant to OMB Memorandum M-19-15, Improving 
Implementation of the Information Quality Act (April 24, 2019), DOE 
published updated guidelines which are available at www.energy.gov/sites/prod/files/2019/12/f70/DOE%20Final%20Updated%20IQA%20Guidelines%20Dec%202019.pdf. DOE has 
reviewed this final rule under the OMB and DOE guidelines and has 
concluded that it is consistent with applicable policies in those 
guidelines.

K. Review Under Executive Order 13211

    E.O. 13211, ``Actions Concerning Regulations That Significantly 
Affect Energy Supply, Distribution, or Use,'' 66 FR 28355 (May 22, 
2001), requires Federal agencies to prepare and submit to OIRA at OMB, 
a Statement of Energy Effects for any significant energy action. A 
``significant energy action'' is defined as any action by an agency 
that promulgates or is expected to lead to promulgation of a final 
rule, and that (1) is a significant regulatory action under Executive 
Order 12866, or any successor order; and (2) is likely to have a 
significant adverse effect on the supply, distribution, or use of 
energy, or (3) is designated by the Administrator of OIRA as a 
significant energy action. For any significant energy action, the 
agency must give a detailed statement of any adverse effects on energy 
supply, distribution, or use should the proposal be implemented, and of 
reasonable alternatives to the action and their expected benefits on 
energy supply, distribution, and use.
    DOE has concluded that this regulatory action, which sets forth 
amended energy conservation standards for three-phase, less than 65,000 
Btu/h ACUACs and ACUHPs and three-phase, less than 65,000 Btu/h VRF, is 
not a significant energy action because the standards are not likely to 
have a significant adverse effect on the supply, distribution, or use 
of energy, nor has it been designated as such by the Administrator at 
OIRA. Accordingly, DOE has not prepared a Statement of Energy Effects 
on this final rule.

L. Information Quality

    On December 16, 2004, OMB, in consultation with the Office of 
Science and Technology Policy (OSTP), issued its Final Information 
Quality Bulletin for Peer Review (the Bulletin). 70 FR 2664 (Jan. 14, 
2005). The Bulletin establishes that certain scientific information 
shall be peer reviewed by qualified specialists before it is 
disseminated by the Federal Government, including influential 
scientific information related to agency regulatory actions. The 
purpose of the Bulletin is to enhance the quality and credibility of 
the Government's scientific information. Under the Bulletin, the energy 
conservation standards rulemaking analyses are ``influential scientific 
information,'' which the Bulletin defines as ``scientific information 
the agency reasonably can determine will have, or does have, a clear 
and substantial impact on important public policies or private sector 
decisions.'' 70 FR 2664, 2667.
    In response to OMB's Bulletin, DOE conducted formal peer reviews of 
the energy conservation standards development process and the analyses 
that are typically used and prepared a report describing that peer 
review.\13\ Generation of this report involved a rigorous, formal, and 
documented evaluation using objective criteria and qualified and 
independent reviewers to make a judgment as to the technical/
scientific/business merit, the actual or anticipated results, and the 
productivity and management effectiveness of programs and/or projects. 
Because available data, models, and technological understanding have 
changed since 2007, DOE has engaged with the National Academy of 
Sciences to review DOE's analytical methodologies to ascertain whether 
modifications are needed to improve the Department's analyses. DOE is 
in the process of evaluating the resulting report.\14\
---------------------------------------------------------------------------

    \13\ The 2007 ``Energy Conservation Standards Rulemaking Peer 
Review Report'' is available at: www.energy.gov/eere/buildings/downloads/energy-conservation-standards-rulemaking-peer-review-report-0 (last accessed January 3, 2023).
    \14\ The report is available at www.nationalacademies.org/our-work/review-of-methods-for-setting-building-and-equipment-performance-standards.
---------------------------------------------------------------------------

M. Congressional Notification

    As required by 5 U.S.C. 801, DOE will report to Congress on the 
promulgation of this rule prior to its effective date. The report will 
state that it has been

[[Page 36386]]

determined that the rule is not a ``major rule'' as defined by 5 U.S.C. 
804(2).

VII. Approval of the Office of the Secretary

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

List of Subjects in 10 CFR Part 431

    Administrative practice and procedure, Confidential business 
information, Energy conservation test procedures, and Reporting and 
recordkeeping requirements.

Signing Authority

    This document of the Department of Energy was signed on March 21, 
2023, by Francisco Alejandro Moreno, Acting Assistant Secretary for 
Energy Efficiency and Renewable Energy, pursuant to delegated authority 
from the Secretary of Energy. That document with the original signature 
and date is maintained by DOE. For administrative purposes only, and in 
compliance with requirements of the Office of the Federal Register, the 
undersigned DOE Federal Register Liaison Officer has been authorized to 
sign and submit the document in electronic format for publication, as 
an official document of the Department of Energy. This administrative 
process in no way alters the legal effect of this document upon 
publication in the Federal Register.

    Signed in Washington, DC, on May 9, 2023.
Treena V. Garrett,
Federal Register Liaison Officer, U.S. Department of Energy.

    For the reasons set forth in the preamble, DOE amends part 431 of 
chapter II, subchapter D, of title 10 of the Code of Federal 
Regulations as set forth below:

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

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

    Authority:  42 U.S.C. 6291-6317; 28 U.S.C. 2461 note.


0
2. Section 431.92 is amended by adding, in alphabetical order, 
definitions for ``Small-duct, high-velocity commercial package air 
conditioning and heating equipment'' and ``Space-constrained commercial 
package air conditioning and heating equipment'' to read as follows:


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

* * * * *
    Small-duct, high-velocity commercial package air conditioning and 
heating equipment means a basic model of commercial package, split-
system air conditioning and heating equipment that:
    (1) Has a rated cooling capacity no greater than 65,000 Btu/h;
    (2) Is powered by three-phase current;
    (3) Is air-cooled; and
    (4) Is paired with an indoor unit that:
    (i) Includes an indoor blower housed with the coil;
    (ii) Is designed for, and produces, at least 1.2 inches of external 
static pressure when operated at the certified air volume rate of 220-
350 CFM per rated ton cooling in the highest default cooling airflow-
controls setting; and
    (iii) When applied in the field, uses high velocity room outlets 
generally greater than 1,000 fpm that have less than 6.0 square inches 
of free area.
* * * * *
    Space-constrained commercial package air conditioning and heating 
equipment means a basic model of commercial package air conditioning 
and heating equipment (packaged or split) that:
    (1) Is air-cooled;
    (2) Is powered by three-phase current;
    (3) Is not a single package vertical air conditioner or a single 
package vertical heat pump;
    (4) Has a rated cooling capacity no greater than 30,000 Btu/h;
    (5) Has an outdoor or indoor unit having at least two overall 
exterior dimensions or an overall displacement that:
    (i) Is substantially smaller than those of other units that are:
    (A) Currently usually installed in site-built single-family homes; 
and
    (B) Of a similar cooling, and, if a heat pump, heating capacity; 
and
    (ii) If increased, would certainly result in a considerable 
increase in the usual cost of installation or would certainly result in 
a significant loss in the utility of the product to the consumer; and
    (6) Of a product type that was available for purchase in the United 
States as of December 1, 2000.
* * * * *

0
3. Section 431.97 is amended by:
0
a. In paragraph (a), removing the text ``(f)'' and adding, in its place 
the text ``(h)''; and
0
b. In paragraph (b) revising tables 1 through 4;
0
c. In paragraph (f), revising table 13; and
0
d. Adding paragraph (h).
    The revisions and addition read as follows:


Sec.  431.97  Energy efficiency standards and their compliance dates.

* * * * *
    (b) * * *

                      Table 1 to Sec.   431.97(b)--Minimum Cooling Efficiency Standards for Air Conditioning and Heating Equipment
[Not including single package vertical air conditioners and single package vertical heat pumps, packaged terminal air conditioners and packaged terminal
heat pumps, computer room air conditioners, variable refrigerant flow multi-split air conditioners and heat pumps, and double-duct air-cooled commercial
                                                     package air conditioning and heating equipment]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                    Compliance date:
          Equipment type               Cooling capacity        Subcategory           Heating type         Efficiency level      equipment  manufactured
                                                                                                                                   starting on . . .
--------------------------------------------------------------------------------------------------------------------------------------------------------
Small Commercial Package Air        >=65,000 Btu/h and     AC                   No Heating or          EER = 11.2............  January 1, 2010.\1\
 Conditioning and Heating            <135,000 Btu/h.                             Electric Resistance   ......................  .........................
 Equipment (Air-Cooled).                                                         Heating.              EER = 11.0............  January 1, 2010.\1\
                                                                                All Other Types of
                                                                                 Heating.
                                                           HP                   No Heating or          EER = 11.0............  January 1, 2010.\1\
                                                                                 Electric Resistance
                                                                                 Heating.
                                                                                All Other Types of     EER = 10.8............  January 1, 2010.\1\
                                                                                 Heating.
Large Commercial Package Air        >=135,000 Btu/h and    AC                   No Heating or          EER = 11.0............  January 1, 2010.\1\
 Conditioning and Heating            <240,000 Btu/h.                             Electric Resistance
 Equipment (Air-Cooled).                                                         Heating.
                                                                                All Other Types of     EER = 10.8............  January 1, 2010.\1\
                                                                                 Heating.
                                                           HP                   No Heating or          EER = 10.6............  January 1, 2010.\1\
                                                                                 Electric Resistance
                                                                                 Heating.
                                                                                All Other Types of     EER = 10.4............  January 1, 2010.\1\
                                                                                 Heating.
Very Large Commercial Package Air   >=240,000 Btu/h and    AC                   No Heating or          EER = 10.0............  January 1, 2010.\1\
 Conditioning and Heating            <760,000 Btu/h.                             Electric Resistance
 Equipment (Air-Cooled).                                                         Heating.
                                                                                All Other Types of     EER = 9.8.............  January 1, 2010.\1\
                                                                                 Heating.

[[Page 36387]]

 
                                                           HP                   No Heating or          EER = 9.5.............  January 1, 2010.\1\
                                                                                 Electric Resistance
                                                                                 Heating.
                                                                                All Other Types of     EER = 9.3.............  January 1, 2010.\1\
                                                                                 Heating.
Small Commercial Package Air        <65,000 Btu/h........  AC                   All..................  EER = 12.1............  October 29, 2003.
 Conditioning and Heating           >=65,000 Btu/h and     AC                   No Heating or          EER = 12.1............  June 1, 2013.
 Equipment (Water-Cooled).           <135,000 Btu/h.                             Electric Resistance
                                                                                 Heating.
                                                                                All Other Types of     EER = 11.9............  June 1, 2013.
                                                                                 Heating.
Large Commercial Package Air        >=135,000 Btu/h and    AC                   No Heating or          EER = 12.5............  June 1, 2014.
 Conditioning and Heating            <240,000 Btu/h.                             Electric Resistance
 Equipment (Water-Cooled).                                                       Heating.
                                                                                All Other Types of     EER = 12.3............  June 1, 2014.
                                                                                 Heating.
Very Large Commercial Package Air   >=240,000 Btu/h and    AC                   No Heating or          EER = 12.4............  June 1, 2014.
 Conditioning and Heating            <760,000 Btu/h.                             Electric Resistance
 Equipment (Water-Cooled).                                                       Heating.
                                                                                All Other Types of     EER = 12.2............  June 1, 2014.
                                                                                 Heating.
Small Commercial Package Air        <65,000 Btu/h........  AC                   All..................  EER = 12.1............  October 29, 2003.
 Conditioning and Heating           >=65,000 Btu/h and     AC                   No Heating or          EER = 12.1............  June 1, 2013.
 Equipment (Evaporatively-Cooled).   <135,000 Btu/h.                             Electric Resistance
                                                                                 Heating.
                                                                                All Other Types of     EER = 11.9............  June 1, 2013.
                                                                                 Heating.
Large Commercial Package Air        >=135,000 Btu/h and    AC                   No Heating or          EER = 12.0............  June 1, 2014.
 Conditioning and Heating            <240,000 Btu/h.                             Electric Resistance
 Equipment (Evaporatively-Cooled).                                               Heating.
                                                                                All Other Types of     EER = 11.8............  June 1, 2014.
                                                                                 Heating.
Very Large Commercial Package Air   >=240,000 Btu/h and    AC                   No Heating or          EER = 11.9............  June 1, 2014.
 Conditioning and Heating            <760,000 Btu/h.                             Electric Resistance
 Equipment (Evaporatively-Cooled).                                               Heating.
                                                                                All Other Types of     EER = 11.7............  June 1, 2014.
                                                                                 Heating.
Small Commercial Package Air-       <17,000 Btu/h........  HP                   All..................  EER = 11.2............  October 29, 2003.\2\
 Conditioning and Heating           >=17,000 Btu/h and     HP                   All..................  EER = 12.0............  October 29, 2003.\2\
 Equipment (Water-Source: Water-to-  <65,000 Btu/h.
 Air, Water-Loop).
                                    >=65,000 Btu/h and     HP                   All..................  EER = 12.0............  October 29, 2003.\2\
                                     <135,000 Btu/h.
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ And manufactured before January 1, 2018. See Table 3 of this section for updated efficiency standards.
\2\ And manufactured before October 9, 2015. See Table 3 of this section for updated efficiency standards.


  Table 2 to Sec.   431.97(b)--Minimum Heating Efficiency Standards for Air Conditioning and Heating Equipment
                                                  [Heat pumps]
    [Not including single package vertical air conditioners and single package vertical heat pumps, packaged
terminal air conditioners and packaged terminal heat pumps, computer room air conditioners, variable refrigerant
flow multi-split air conditioners and heat pumps, and double-duct air-cooled commercial package air conditioning
                                             and heating equipment]
----------------------------------------------------------------------------------------------------------------
                                                                                      Compliance date: equipment
           Equipment type               Cooling capacity         Efficiency level      manufactured  starting on
                                                                                                 . . .
----------------------------------------------------------------------------------------------------------------
Small Commercial Package Air         >=65,000 Btu/h and      COP = 3.3..............  January 1, 2010.\1\
 Conditioning and Heating Equipment   <135,000 Btu/h.
 (Air-Cooled).
Large Commercial Packaged Air        >=135,000 Btu/h and     COP = 3.2..............  January 1, 2010.\1\
 Conditioning and Heating Equipment   <240,000 Btu/h.
 (Air-Cooled).
Very Large Commercial Packaged Air   >=240,000 Btu/h and     COP = 3.2..............  January 1, 2010.\1\
 Conditioning and Heating Equipment   <760,000 Btu/h.
 (Air-Cooled).
Small Commercial Package Air         <135,000 Btu/h........  COP = 4.2..............  October 29, 2003.\2\
 Conditioning and Heating Equipment
 (Water-Source: Water-to-Air, Water-
 Loop).
----------------------------------------------------------------------------------------------------------------
\1\ And manufactured before January 1, 2018. See Table 4 of this section for updated efficiency standards.
\2\ And manufactured before October 9, 2015. See Table 4 of this section for updated efficiency standards.


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

[[Page 36388]]

 
Large Commercial Packaged Air       >=135,000 Btu/h and    AC                   Electric Resistance    IEER = 12.4...........  January 1, 2018.\1\
 Conditioning and Heating            <240,000 Btu/h.                             Heating or No         IEER = 14.2...........  January 1, 2023.
 Equipment (Air-Cooled).                                                         Heating.
                                                                                All Other Types of     IEER = 12.2...........  January 1, 2018.\1\
                                                                                 Heating.              IEER = 14.0...........  January 1, 2023.
                                                           HP                   Electric Resistance    IEER = 11.6...........  January 1, 2018.\1\
                                                                                 Heating or No         IEER = 13.5...........  January 1, 2023.
                                                                                 Heating.
                                                                                All Other Types of     IEER = 11.4...........  January 1, 2018.\1\
                                                                                 Heating.              IEER = 13.3...........  January 1, 2023.
Very Large Commercial Packaged Air  >=240,000 Btu/h and    AC                   Electric Resistance    IEER = 11.6...........  January 1, 2018.\1\
 Conditioning and Heating            <760,000 Btu/h.                             Heating or No         IEER = 13.2...........  January 1, 2023.
 Equipment (Air-Cooled).                                                         Heating.
                                                                                All Other Types of     IEER = 11.4...........  January 1, 2018.\1\
                                                                                 Heating.              IEER = 13.0...........  January 1, 2023.
                                                           HP                   Electric Resistance    IEER = 10.6...........  January 1, 2018.\1\
                                                                                 Heating or No         IEER = 12.5...........  January 1, 2023.
                                                                                 Heating.
                                                                                All Other Types of     IEER = 10.4...........  January 1, 2018.\1\
                                                                                 Heating.              IEER = 12.3...........  January 1, 2023.
Small Commercial Packaged Air-      <17,000 Btu/h........  HP                   All..................  EER = 12.2............  October 9, 2015.
 Conditioning and Heating           >=17,000 Btu/h and     HP                   All..................  EER = 13.0............  October 9, 2015.
 Equipment (Water-Source: Water-to-  <65,000 Btu/h.
 Air, Water-Loop).
                                    >=65,000 Btu/h and     HP                   All..................  EER = 13.0............  October 9, 2015.
                                     <135,000 Btu/h.
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ And manufactured before January 1, 2023.


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

* * * * *
    (f) * * *
    (1) * * *

   Table 13 to Sec.   431.97(f)(1)--Minimum Efficiency Standards for Variable Refrigerant Flow Multi-Split Air
                                           Conditioners and Heat Pumps
----------------------------------------------------------------------------------------------------------------
                                                                                              Compliance date:
                                  Cooling        Heating type                                     equipment
       Equipment type             capacity           \1\             Efficiency level       manufactured  on and
                                                                                                 after . . .
----------------------------------------------------------------------------------------------------------------
VRF Multi-Split Air           >=65,000 Btu/h   No Heating or    11.2 EER..................  January 1, 2010.
 Conditioners (Air-Cooled).    and <135,000     Electric
                               Btu/h.           Resistance
                                                Heating.
                                               All Other Types  11.0 EER..................  January 1, 2010.
                                                of Heating.
                              >=135,000 Btu/h  No Heating or    11.0 EER..................  January 1, 2010.
                               and <240,000     Electric
                               Btu/h.           Resistance
                                                Heating.
                                               All Other Types  10.8 EER..................  January 1, 2010.
                                                of Heating.
                              >=240,000 Btu/h  No Heating or    10.0 EER..................  January 1, 2010.
                               and <760,000     Electric
                               Btu/h.           Resistance
                                                Heating.
                                               All Other Types  9.8 EER...................  January 1, 2010.
                                                of Heating.
VRF Multi-Split Heat Pumps    >=65,000 Btu/h   No Heating or    11.0 EER, 3.3 COP.........  January 1, 2010.
 (Air-Cooled).                 and <135,000     Electric
                               Btu/h.           Resistance
                                                Heating.
                                               All Other Types  10.8 EER, 3.3 COP.........  January 1, 2010.
                                                of Heating.

[[Page 36389]]

 
                              >=135,000 Btu/h  No Heating or    10.6 EER, 3.2 COP.........  January 1, 2010.
                               and <240,000     Electric
                               Btu/h.           Resistance
                                                Heating.
                                               All Other Types  10.4 EER, 3.2 COP.........  January 1, 2010.
                                                of Heating.
                              >=240,000 Btu/h  No Heating or    9.5 EER, 3.2 COP..........  January 1, 2010.
                               and <760,000     Electric
                               Btu/h.           Resistance
                                                Heating.
                                               All Other Types  9.3 EER, 3.2 COP..........  January 1, 2010.
                                                of Heating.
VRF Multi-Split Heat Pumps    <17,000 Btu/h..  Without Heat     12.0 EER..................  October 29, 2012.
 (Water-Source).                                Recovery.       4.2 COP...................  October 29, 2003.
                                               With Heat        11.8 EER..................  October 29, 2012.
                                                Recovery.       4.2 COP...................  October 29, 2003.
                              >=17,000 Btu/h   All............  12.0 EER, 4.2 COP.........  October 29, 2003.
                               and <65,000
                               Btu/h.
                              >=65,000 Btu/h   All............  12.0 EER, 4.2 COP.........  October 29, 2003.
                               and <135,000
                               Btu/h.
                              >=135,000 Btu/h  Without Heat     10.0 EER, 3.9 COP.........  October 29, 2013.
                               and <760,000     Recovery.
                               Btu/h.
                                               With Heat        9.8 EER, 3.9 COP..........  October 29, 2013.
                                                Recovery.
----------------------------------------------------------------------------------------------------------------
\1\ VRF multi-split heat pumps (air-cooled) with heat recovery fall under the category of ``All Other Types of
  Heating'' unless they also have electric resistance heating, in which case it falls under the category for
  ``No Heating or Electric Resistance Heating.''

* * * * *
    (h) Each air-cooled, three-phase, small commercial package air 
conditioning and heating equipment with a cooling capacity of less than 
65,000 Btu/h and air-cooled, three-phase variable refrigerant flow 
multi-split air conditioning and heating equipment with a cooling 
capacity of less than 65,000 Btu/h manufactured on or after the 
compliance date listed in the corresponding table must meet the 
applicable minimum energy efficiency standard level(s) set forth in 
tables 16 and 17 of this paragraph (h).

Table 16 to Sec.   431.97(h)--Minimum Efficiency Standards for Air-Cooled, Three-Phase, Small Commercial Package
 Air Conditioning and Heating Equipment With a Cooling Capacity of Less Than 65,000 Btu/h and Air-Cooled, Three-
    Phase, Small Variable Refrigerant Flow Multi-Split Air Conditioning and Heating Equipment With a Cooling
                                       Capacity of Less Than 65,000 Btu/h
----------------------------------------------------------------------------------------------------------------
                               Size category                        Minimum         Compliance date: equipment
       Equipment type            (cooling)       Subcategory       efficiency     manufactured starting on . . .
----------------------------------------------------------------------------------------------------------------
Air Conditioners............  <65,000 Btu/h..  Split-System...  13.0 SEER......  June 16, 2008.\1\
                                               Single-Package.  14.0 SEER......  January 1, 2017.\1\
Heat Pumps..................  <65,000 Btu/h..  Split-System...  14.0 SEER, 8.2   January 1, 2017.\1\
                                                                 HSPF.
                                               Single-Package.  14.0 SEER, 8.2   January 1, 2017.\1\
                                                                 HSPF.
VRF Air Conditioners........  <65,000 Btu/h..  ...............  13.0 SEER......  June 16, 2008.\1\
VRF Heat Pumps..............  <65,000 Btu/h..  ...............  13.0 SEER, 7.7   June 16, 2008.\1\
                                                                 HSPF.
----------------------------------------------------------------------------------------------------------------
\1\ And manufactured before January 1, 2025. For equipment manufactured on or after January 1, 2025, see Table
  17 to paragraph (h) of this section for updated efficiency standards.


Table 17 to Sec.   431.97(h)--Updated Minimum Efficiency Standards for Air-Cooled, Three-Phase, Small Commercial
Package Air Conditioning and Heating Equipment With a Cooling Capacity of Less Than 65,000 Btu/h and Air-Cooled,
 Three-Phase, Small Variable Refrigerant Flow Multi-Split Air Conditioning and Heating Equipment With a Cooling
                                       Capacity of Less Than 65,000 Btu/h
----------------------------------------------------------------------------------------------------------------
                               Size category                        Minimum         Compliance date: equipment
       Equipment type            (cooling)       Subcategory       efficiency     manufactured starting on . . .
----------------------------------------------------------------------------------------------------------------
Air Conditioners............  <65,000 Btu/h..  Split-System...  13.4 SEER2.....  January 1, 2025.
                                               Single-Package.  13.4 SEER2.....  January 1, 2025.
Heat Pumps..................  <65,000 Btu/h..  Split-System...  14.3 SEER2, 7.5  January 1, 2025.
                                                                 HSPF2.
                                               Single-Package.  13.4 SEER2, 6.7  January 1, 2025.
                                                                 HSPF2.
Space-Constrained Air         <=30,000 Btu/h.  Split-System...  12.7 SEER2.....  January 1, 2025.
 Conditioners.
                                               Single-Package.  13.9 SEER2.....  January 1, 2025.
Space-Constrained Heat Pumps  <=30,000 Btu/h.  Split-System...  13.9 SEER2, 7.0  January 1, 2025.
                                                                 HSPF2.
                                               Single-Package.  13.9 SEER2, 6.7  January 1, 2025.
                                                                 HSPF2.
Small-Duct, High-Velocity     <65,000 Btu/h..  Split-System...  13.0 SEER2.....  January 1, 2025.
 Air Conditioners.
Small-Duct, High-Velocity     <65,000 Btu/h..  Split-System...  14.0 SEER2, 6.9  January 1, 2025.
 Heat Pumps.                                                     HSPF2.
VRF Air Conditioners........  <65,000 Btu/h..  ...............  13.4 SEER2.....  January 1, 2025.
VRF Heat Pumps..............  <65,000 Btu/h..  ...............  13.4 SEER2, 7.5  January 1, 2025.
                                                                 HSPF2.
----------------------------------------------------------------------------------------------------------------

[FR Doc. 2023-10181 Filed 6-1-23; 8:45 am]
BILLING CODE 6450-01-P