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The Energy Policy and Conservation Act of 1975, as amended, requires DOE to periodically review its standards for small, large, and very large commercial package air conditioners and heating equipment (which includes commercial unitary air conditioners and heat pumps -- or CUACs). Under recent amendments to EPCA made by the American Efficient Manufacturing Technical Corrections Act of 2012 Pub. L. No. 112-210 (Dec. 18, 2012), DOE must review its standards for this equipment every six years and determine whether they need amending. It also requires that, for those equipment types for which more than six years have elapsed since the most recent final rules establishing or amending a standard for that equipment, DOE must publish a proposal to amend the applicable standard. More than six years has elapsed since the standards for this equipment were last amended. After reviewing these standards and the available data, DOE has determined that amending the current energy conservation standards for this equipment would be technologically feasible and economically justified. Accordingly, DOE proposed amending the current standards for this equipment. On April 1, 2015, DOE published a notice announcing that a working group was created to potentially develop negotiated standards. 80 FR 17363.

Statement of Need:

EPCA requires minimum energy efficiency standards for certain appliances and commercial equipment, including Small, Large, and Very Large Commercial Package A/C and Heating Equipment.

Summary of the Legal Basis:

Title III, Part B 1 of the Energy Policy and Conservation Act of 1975 (EPCA or the Act), Public Law 94163 (42 U.S.C. 62916309, as codified), established the Energy Conservation Program for Consumer Products Other Than Automobiles. Pursuant to EPCA, any new or amended energy conservation standard that DOE prescribes for certain equipment, such as small, large, and very large air-cooled commercial package air conditioning and heating equipment (also known as commercial unitary air conditioners and heat pumps), shall be designed to achieve the maximum improvement in energy efficiency that is technologically feasible and economically justified. (42 U.S.C. 6313(a)(6)(A)(ii)(II)). Furthermore, the new or amended standard must result in a significant conservation of energy. (42 U.S.C. 6313(a)(6)(A)(ii)(II)).

Alternatives:

The statute requires DOE to conduct rulemakings to review and revise standards to achieve the maximum improvement in energy efficiency that the Secretary determines is technologically feasible and economically justified. In making this determination, DOE conducts a thorough analysis of the alternative standard levels, including the existing standard, based on the criteria specified by the statute.

Anticipated Costs and Benefits:

DOE finds that the benefits to the Nation of the proposed energy standards for Small, Large, and Very Large Commercial Package A/C and Heating Equipment (such as energy savings, consumer average lifecycle cost savings, an increase in national net present value, and emission reductions) outweigh the burdens (such as loss of industry net present value). DOE estimates that energy savings from electricity will be 11.7 quads over 30 years and the benefit to the Nation will be between $16.5 billion to $50.8 billion.

Risks: