Energy Conservation Program for Consumer Products: Publication of the Petition for Waiver From LG Electronics and Granting of the Application for Interim Waiver From the Department of Energy Residential Central Air Conditioner and Heat Pump Test Procedure [Case No. CAC-014], 53243-53248 [E7-18338]

Agencies

• DEPARTMENT OF ENERGY
• Office of Energy Efficiency and Renewable Energy
• Energy Efficiency and Renewable Energy Office

[Federal Register Volume 72, Number 180 (Tuesday, September 18, 2007)]
[Notices]
[Pages 53243-53248]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-18338]



[[Page 53243]]

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DEPARTMENT OF ENERGY

Office of Energy Efficiency and Renewable Energy

[Docket No. EERE-2007-BT-WAV-0011]


Energy Conservation Program for Consumer Products: Publication of 
the Petition for Waiver From LG Electronics and Granting of the 
Application for Interim Waiver From the Department of Energy 
Residential Central Air Conditioner and Heat Pump Test Procedure [Case 
No. CAC-014]

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

ACTION: Notice of Petition for Waiver, granting of Application for 
Interim Waiver, and request for comments.

-----------------------------------------------------------------------

SUMMARY: This notice announces receipt of and publishes a Petition for 
Waiver from LG Electronics USA, Inc. (LG). This Petition for Waiver 
(hereafter ``LG Petition'') requests a waiver of the Department of 
Energy (DOE) test procedures applicable to residential central air 
conditioners and heat pumps. The waiver request is specific to LG's 
variable refrigerant flow multi-split heat pumps. Through this 
document, DOE is: (1) Soliciting comments, data, and information with 
respect to the LG Petition; and (2) granting an Interim Waiver to LG 
from the DOE test procedure for residential central air conditioners 
and heat pumps.

DATES: DOE will accept comments, data, and information with respect to 
the LG Petition until, but no later than October 18, 2007.

ADDRESSES: You may submit comments, identified by case number CAC-014, 
by any of the following methods:
     Federal eRulemaking Portal: https://www.regulations.gov. 
Follow the instructions for submitting comments.
     E-mail: Michael.Raymond@ee.doe.gov. Include either ``case 
number CAC-014,'' and/or ``LG Petition'' in the subject line of the 
message.
     Mail: Ms. Brenda Edwards-Jones, U.S. Department of Energy, 
Building Technologies Program, Mailstop EE-2J, Forrestal Building, 1000 
Independence Avenue, SW., Washington, DC 20585-0121. Telephone: (202) 
586-2945. Please submit one signed original paper copy.
     Hand Delivery/Courier: Ms. Brenda Edwards-Jones, U.S. 
Department of Energy, Building Technologies Program, Room 1J-018, 
Forrestal Building, 1000 Independence Avenue, SW., Washington, DC 
20585-0121. Please submit one signed original paper copy.
    Instructions: All submissions received must include the agency name 
and case number for this proceeding. Submit electronic comments in 
WordPerfect, Microsoft Word, Portable Document Format (PDF), or text 
(American Standard Code for Information Interchange (ASCII)) file 
format and avoid the use of special characters or any form of 
encryption. Wherever possible, include the electronic signature of the 
author. Absent an electronic signature, comments submitted 
electronically must be followed and authenticated by submitting the 
signed original paper document. DOE does not accept telefacsimiles 
(faxes).
    Any person submitting written comments must also send a copy of 
such comments to the petitioner, pursuant to 10 CFR 430.27(d). The 
contact information for the petitioner is: Mr. Richard Donner, Product 
Planning Manager, North America Product Planning Group, LG Electronics 
USA, Inc., 2000 Millbrook Drive, Lincolnshire, IL 60069. Telephone: 
(201) 906-9878. Fax: (847) 941-8340. E-mail: rdonner@lge.com.
    According to 10 CFR 1004.11, any person submitting information that 
he or she believes to be confidential and exempt by law from public 
disclosure should submit two copies: One copy of the document including 
all the information believed to be confidential, and one copy of the 
document with the information believed to be confidential deleted. DOE 
will make its own determination about the confidential status of the 
information and treat it according to its determination.
    Docket: For access to the docket to review the documents relevant 
to this matter, you may visit the U.S. Department of Energy, Forrestal 
Building, Room 1J-018 (Resource Room of the Building Technologies 
Program), 1000 Independence Avenue, SW., Washington, DC, (202) 586-
2945, between 9 a.m. and 4 p.m., Monday through Friday, except Federal 
holidays. Available documents include the following items: (1) This 
notice; (2) public comments received; (3) the Petition for Waiver and 
Application for Interim Waiver; and (4) prior DOE rulemakings regarding 
central air conditioners and heat pumps. Please call Ms. Brenda 
Edwards-Jones at the above telephone number for additional information 
regarding visiting the Resource Room. Please note that DOE's Freedom of 
Information Reading Room (Room 1E-190 at the Forrestal Building) is no 
longer housing rulemaking materials.

FOR FURTHER INFORMATION CONTACT: Dr. Michael G. Raymond, U.S. 
Department of Energy, Building Technologies Program, Mail Stop EE-2J, 
Forrestal Building, 1000 Independence Avenue, SW., Washington, DC 
20585-0121. Telephone: (202) 586-9611. E-mail: 
Michael.Raymond@ee.doe.gov.
    Francine Pinto or Eric Stas, U.S. Department of Energy, Office of 
the General Counsel, Mail Stop GC-72, Forrestal Building, 1000 
Independence Avenue, SW., Washington, DC 20585-0103. Telephone: (202) 
586-9507. E-mail: Francine.Pinto@hq.doe.gov or Eric.Stas@hq.doe.gov.

SUPPLEMENTARY INFORMATION:

Table of Contents

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

I. Background and Authority

    Title III of the Energy Policy and Conservation Act (EPCA) sets 
forth a variety of provisions concerning energy efficiency. Part B of 
Title III establishes the ``Energy Conservation Program for Consumer 
Products Other Than Automobiles.'' (42 U.S.C. 6291-6309) This notice 
involves residential products under Part B, and the statute 
specifically includes definitions, test procedures, labeling 
provisions, energy conservation standards, and the authority to require 
information and reports from manufacturers.
    With respect to test procedures, Part B generally authorizes the 
Secretary of Energy (the Secretary) to prescribe test procedures that 
are reasonably designed to produce results which reflect energy 
efficiency, energy use, and estimated operating costs, and that are not 
unduly burdensome to conduct. (42 U.S.C. 6293(b)(3))
    Relevant to the current Petition for Waiver, the test procedures 
for residential central air conditioners and central air-conditioning 
heat pumps are set forth in 10 CFR Part 430, Subpart B, Appendix M. 
Section 323 of EPCA provides that the Secretary of Energy may amend 
test procedures for consumer products if the Secretary determines that 
amended test procedures would more accurately reflect energy 
efficiency, energy use or estimated annual operating costs, and are not 
unduly burdensome to conduct. (42 U.S.C. 6293(b)(1)(A) and (b)(3))
    DOE's regulations contain provisions allowing a person to seek a 
waiver from the test procedure requirements for covered products, for 
which the petitioner's basic model contains one or

[[Page 53244]]

more design characteristics that prevent testing according to the 
prescribed test procedures, or when the prescribed test procedures may 
evaluate the basic model in a manner so unrepresentative of its true 
energy consumption as to provide materially inaccurate comparative 
data. 10 CFR 430.27(a)(1). Petitioners must include in their petition 
any alternate test procedures known to evaluate the basic model in a 
manner representative of its energy consumption. 10 CFR 
430.27(b)(1)(iii). The Assistant Secretary for Energy Efficiency and 
Renewable Energy (the Assistant Secretary) may grant the waiver subject 
to conditions, including adherence to alternate test procedures. 10 CFR 
430.27(l). Waivers generally remain in effect until final test 
procedure amendments become effective, thereby resolving the problem 
that instigated the Petition for Waiver. 10 CFR 430.27(m).
    The waiver process also permits parties petitioning DOE for a 
waiver to apply for an Interim Waiver from the prescribed test 
procedure requirements. 10 CFR 430.27(a)(2). The Assistant Secretary 
will grant an Interim Waiver request if it is determined that the 
applicant will experience economic hardship if the Interim Waiver is 
denied, if it appears likely that the Petition for Waiver will be 
granted, and/or the Assistant Secretary determines that it would be 
desirable for public policy reasons to grant immediate relief pending a 
determination on the Petition for Waiver. 10 CFR 430.27(g). An Interim 
Waiver remains in effect for a period of 180 days or until DOE issues 
its determination on the Petition for Waiver, whichever is sooner, and 
may be extended for an additional 180 days, if necessary. 10 CFR 
430.27(h).

II. Petition for Waiver

    On December 28, 2005, LG filed a Petition for Waiver from the test 
procedures applicable to residential central air conditioners and 
central air-conditioning heat pumps and an Application for Interim 
Waiver, related to numerous models listed in Appendix A of LG's 
petition. The applicable test procedure for LG's residential products 
is the DOE residential test procedure found in 10 CFR Part 430, Subpart 
B, Appendix M.
    LG seeks a waiver from the DOE test procedure because, LG asserts, 
its line of variable refrigerant flow multi-split air conditioners and 
heat pumps would be evaluated in a manner unrepresentative of their 
true energy consumption characteristics. According to LG, such 
evaluation under the existing test procedure would ``provide materially 
inaccurate comparative data,'' due in part to potential barriers 
arising from ``design characteristics that prevent testing of the basic 
models according to the prescribed test procedures.'' As described 
below, the primary problem is the large number of combinations of 
indoor and outdoor units potentially subject to testing.
    By way of background, an LG multi-split product consists of one 
outdoor unit, using a scroll or rotary type compressor with variable 
capacity, which can connect to multiple indoor units and that uses 
variable refrigerant flow and control systems. The multi-split product 
is intended to be used in zoned systems where an outdoor unit can be 
connected with up to eight separate indoor units, which need not be the 
same models. These operating characteristics allow each indoor unit to 
have a different set temperature and a different mode of operation 
(i.e., on/off/fan). All the indoor units are capable of operating 
independently, each with its own temperature and fan setting. Subject 
to these controls, the outdoor unit will determine the cooling or 
heating capacity delivered into the zones. LG offers 70 indoor models 
(35 heat pump-type indoor units and 35 cooling-only type indoor units) 
and 40 outdoor models (20 heat pump-type indoor units and 20 cooling-
only type indoor units). Each central air conditioner outdoor unit can 
be matched with up to 35 different cooling-only indoor units. Likewise, 
each central air-conditioning heat pump outdoor unit can be matched 
with up to 35 heat pump indoor units. Further, an outdoor unit can be 
connected with up to eight separate indoor units. Thus, for each 
outdoor unit, there are many possible combinations of indoor units that 
can be used in a system configuration, and given that there are 40 
outdoor units, LG argues that it would be impractical to test the 
multitude of possible combinations for the LG multi-split line of 
products.
    Accordingly, LG requests that DOE grant a test procedure waiver for 
its variable refrigerant flow multi-split product designs until a 
suitable test method can be prescribed. Furthermore, LG states that 
failure to grant the waiver would result in economic hardship because 
it would prevent the company from marketing its variable refrigerant 
flow multi-split products. Also, LG states that it is willing to work 
closely with DOE, the Air-Conditioning and Refrigeration Institute 
(ARI), and other agencies to develop appropriate test procedures, as 
necessary.

III. Application for Interim Waiver

    On December 28, 2005, in addition to its Petition for Waiver, LG 
submitted to DOE an Application for Interim Waiver. LG's Application 
for Interim Waiver does not provide sufficient information to evaluate 
the level of economic hardship LG will likely experience if its 
Application for Interim Waiver is denied. However, in those instances 
where the likely success of the Petition for Waiver has been 
demonstrated, based upon DOE having granted a waiver for a similar 
product design, it is in the public interest to have similar products 
tested and rated for energy consumption on a comparable basis. DOE has 
previously granted Interim Waivers to Fujitsu and Samsung for 
comparable residential and commercial multi-split air conditioners and 
heat pumps. 70 FR 5980 (Feb. 4, 2005); 70 FR 9629 (Feb. 28, 2005), 
respectively. In addition, DOE approved the Petition for Waiver from 
Mitsubishi Electric & Electronics USA, Inc. (Mitsubishi) for its 
comparable line of commercial multi-split air conditioners and heat 
pumps. 69 FR 52660 (August 27, 2004). The two prevailing reasons for 
granting these waivers also apply to LG's variable refrigerant flow 
multi-split products: (1) Test laboratories cannot test products with 
so many indoor units \1\; and (2) it is impractical to test so many 
combinations of indoor units with each outdoor unit. Thus, DOE has 
determined that it is likely that LG's Petition for Waiver will be 
granted for its new variable refrigerant flow multi-split models. 
Hence, it is ordered that:
---------------------------------------------------------------------------

    \1\ According to the LG petition, up to eight indoor units may 
be connected to its multi-split air conditioners and heat pumps and 
would accordingly be possible candidates for testing (out of an even 
greater number of potential indoor units). However, DOE believes 
that the practical limits for testing would be about five units.
---------------------------------------------------------------------------

    The Application for Interim Waiver filed by LG is hereby granted 
for LG's new variable refrigerant flow multi-split central air 
conditioners and central air-conditioning heat pumps, subject to the 
specifications and conditions below.
    1. LG shall not be required to test or rate its variable 
refrigerant flow multi-split residential products on the basis of the 
currently applicable test procedure, which is set forth in 10 CFR Part 
430, Subpart B, Appendix M; and
    2. LG shall be required to test and rate its variable refrigerant 
flow multi-split products according to the alternate test procedure as 
set forth in section IV (3), ``Alternate test procedure,'' of today's 
notice.
    The Interim Waiver applies to the following models:

[[Page 53245]]

Heat Pump Type

Indoor Units:
    AMNH073LQ*0, AMNH093LQ*0, AMNH093LR*0, AMNH093D4*0, AMNH123LR*0, 
AMNH183LT*0, AMNH243LT*0, AMNH093DE*0, AMNH073DZ*0, AMNHDU93*0, 
AMNH123DEM0, AMNH123DU*0, AMNH183D3*0, AMNH243D3*0, AMNH093AP*0, 
AMNH093AP*1, AMNH123AP*0, AMNH123AP*1, AMNH093TC*0, AMNH123TC*0, 
AMNH093TE*0, AMNH123TE*0, AMNH183TE*0, AMNH243TF*0, AMNH093BP*0, 
AMNH123BP*0, AMNH093BT*0, AMNH126BT*0, AMNH183BT*0, AMNH183BH*0, 
AMNH243BH*0, AMNH093VE*0, AMNH123VE*0, AMNH183VB*0, AMNH243VB*0
Outdoor Units:
    A2UW143FA0, A2UW143FA1, A2UW143FA2, A2UW163FA0, A2UW163FA1, 
A2UW183FA0, A3UW183FA0, A3UW183FA1, A3UW243FA0, A4UW243FA0, A4UW243FA1, 
A4UW303FA0, A6UW403FA0, A7UW483FA0, A8UW563FA0, A2UH143FA0, A2UH183FA0, 
A2UH303FA0, A2UH243FA0, A3UH363FA0

Cooling-Only Type

Indoor Units:
    AMNC073LQ*0, AMNC093LQ*0, AMNC093LR*0, AMNC093D4A*0, AMNC123LR*0, 
AMNC183LT*0, AMNC243LT*0, AMNC073DZ*0, AMNC093DU*0, AMNC123DU*0, 
AMNC123DEM0, AMNC183D3*0, AMNC243D3*0, AMNC093DE*0, AMNC093AP*0, 
AMNC093AP*1, AMNC123AP*0, AMNC123AP*1, AMNC093TC*0, AMNC123TC*0, 
AMNC093TE*0, AMNC123TE*0, AMNC183TE*0, AMNC243TF*0, AMNC093BP*0, 
AMNC123BP*0, AMNC093BT*0, AMNC126BT*0, AMNC183BT*0, AMNC183BH*0, 
AMNC243BH*0, AMNC093VE*0, AMNC123VE*0, AMNC183VB*0, AMNC243VB*0
Outdoor Units:
    A2UQ143FA0, A2UQ143FA1, A2UQ143FA2, A2UQ163FA0, A2UQ163FA1, 
A2UQ183FA0, A3UQ183FA0, A3UQ183FA1, A3UQ243FA0, A4UQ243FA0, A4UQ243FA1, 
A4UQ303FA0, A6UQ403FA0, A7UQ483FA0, A8UQ563FA0, A2UC143FA0, A2UC183FA0, 
A4UC303FA0, A2UC243FA0, A3UC363FA0

    This Interim Waiver is conditioned upon the presumed validity of 
statements, representations, and documentary materials provided by the 
petitioner. This Interim Waiver may be revoked or modified at any time 
upon a determination that the factual basis underlying the Petition for 
Waiver is incorrect, or DOE determines that the results from the 
alternate test procedure are unrepresentative of the basic models' true 
energy consumption characteristics.

IV. Alternate Test Procedure

    In response to two recent Petitions for Waiver from Mitsubishi, DOE 
specified an alternate test procedure to provide a basis from which 
Mitsubishi could test and make valid energy efficiency representations 
for its R410A CITY MULTI products, as well as for its R22 multi-split 
products. The Mitsubishi Decision and Order, including the alternate 
test procedure, were published in the Federal Register on April 9, 
2007. 72 FR 17528, 17531. For similar reasons, DOE believes that 
alternate test procedures are necessary here.
    In general, DOE understands that existing testing facilities have a 
limited ability to test multiple indoor units at one time, and the 
number of possible combinations of indoor and outdoor units for some 
variable refrigerant flow zoned systems is impractical to test. We 
further note that subsequent to the waiver that DOE granted for 
Mitsubishi's R-22 multi-split products, ARI formed a committee to 
discuss this issue and to work on developing an appropriate test 
protocol for variable refrigerant flow systems. However, to date, no 
additional test methodologies have been adopted by the committee or 
submitted to DOE.
    Therefore, as discussed below, DOE is including an alternate test 
procedure as a condition in granting the Interim Waiver for LG's 
products, and plans to consider the same alternate test procedure in 
the context of the subsequent Decision and Order pertaining to LG's 
Petition for Waiver. Utilization of this alternate test procedure will 
allow LG to test and make energy efficiency representations regarding 
its above-discussed products. More broadly, DOE is also considering 
applying a similar alternate test procedure to other existing waivers 
for similar residential and commercial central air conditioners and 
heat pumps. Such cases include Samsung's Petition for Waiver for its 
multi-split products at 70 FR 9629 (Feb. 28, 2005), and Fujitsu's 
Petition for Waiver for its multi-split products at 70 FR 5980 (Feb. 4, 
2005). Similarly, DOE is considering use of this alternate test 
procedure for other products of this type for which manufacturers seek 
waivers, until such time as the DOE test procedure has been updated 
appropriately.
    In the present case, DOE is modifying the alternate test procedure 
in the above-referenced waiver granted to Mitsubishi for the R-410A 
CITY MULTI products, and plans to consider inclusion of the following 
similar waiver language in the Decision and Order for LG's variable 
refrigerant flow multi-split air conditioner and heat pump models:
    (1) The ``Petition for Waiver'' filed by LG Electronics USA, Inc. 
(LG) is hereby granted as set forth in the paragraphs below.
    (2) LG shall not be required to test or rate its variable 
refrigerant flow multi-split air conditioner and heat pump products 
listed in section III, above, on the basis of the currently applicable 
test procedure, but shall be required to test and rate such products 
according to the alternate test procedure as set forth in paragraph 
(3).
    (3) Alternate test procedure.
    (A) LG shall be required to test the products listed above 
according to the test procedures for central air conditioners and heat 
pumps prescribed by DOE at 10 CFR Part 430, except that:
    (i) LG shall not be required to comply with: The first sentence in 
10 CFR 430.24(m)(2), which refers to ``that combination manufactured by 
the condensing unit manufacturer likely to have the largest volume of 
retail sales;'' and the third sentence in 10 CFR 430(m)(2), including 
the provisions of 10 CFR 430(m)(2)(i) and (ii). Instead of testing the 
combinations likely to have the highest volume of retail sales, LG may 
test a ``tested combination'' selected in accordance with the 
provisions of subparagraph (B) of this paragraph. Additionally, instead 
of following the provisions of 10 CFR 430(m)(2)(i) and (ii) for every 
other system combination using the same outdoor unit as the tested 
combination, LG shall make representations concerning the variable 
refrigerant flow multi-split products covered in this waiver according 
to the provisions of subparagraph (C) below.
    (ii) LG shall be required to comply with 10 CFR 430 Appendix M as 
amended in accordance with designated changes that are set forth in the 
July 20, 2006 Federal Register notice. 71 FR 41320. These designated 
changes are with respect to the following test procedure sections: 2.1, 
2.2.3, 2.4.1, 3.2.4 (including Table 6), 3.6.4 (including Table 12), 
4.1.4.2, and 4.2.4.2.
    (B) Tested combination. The term ``tested combination'' means a 
sample basic model comprised of units that are production units, or are 
representative of production units, of the basic model

[[Page 53246]]

being tested. For the purposes of this waiver, the tested combination 
shall have the following features:
    (i) The basic model of a variable refrigerant flow system used as a 
tested combination shall consist of an outdoor unit that is matched 
with between two and five indoor units.
    (ii) The indoor units shall:
    (a) Represent the highest sales volume type models;
    (b) Together, have a capacity between 95 percent and 105 percent of 
the capacity of the outdoor unit;
    (c) Not, individually, have a capacity greater than 50 percent of 
the capacity of the outdoor unit;
    (d) Have a fan speed that is consistent with the manufacturer's 
specifications; and
    (e) All have the same external static pressure.
    (C) Representations. LG may make representations about the energy 
efficiency of its variable refrigerant flow multi-split air conditioner 
and heat pump products, for compliance, marketing, or other purposes, 
only to the extent that such representations are made consistent with 
the provisions outlined below:
    (i) For multi-split combinations tested in accordance with this 
paragraph, LG may make representations based on these test results.
    (ii) For multi-split combinations that are not tested, LG may make 
representations which are based on the testing results for the tested 
combination and which are consistent with either of the two following 
methods, except that only method (a) may be used, if available:
    (a) Representation of non-tested combinations according to an 
alternative rating method approved by DOE; or
    (b) Representation of non-tested combinations at the same energy 
efficiency level as the tested combination with the same outdoor unit.

V. Summary and Request for Comments

    Through today's notice, DOE announces receipt of LG's Petition for 
Waiver from the test procedures applicable to LG's variable refrigerant 
flow multi-split air conditioner and heat pump products, and for the 
reasons articulated above, DOE is granting LG an Interim Waiver from 
those procedures. As part of this notice, DOE is publishing LG's 
Petition for Waiver in its entirety. The Petition contains no 
confidential information. Furthermore, today's notice includes an 
alternate test procedure that LG is required to follow as a condition 
of the Interim Waiver and which DOE is considering to include in its 
subsequent Decision and Order. In this alternate test procedure, DOE is 
defining a ``tested combination'' which LG could use in lieu of testing 
all retail combinations of its variable refrigerant flow multi-split 
air conditioner and heat pump products.
    Furthermore, should a subsequent manufacturer be unable to test all 
retail combinations, DOE is considering allowing such manufacturers to 
rate waived products according to an alternate rating method approved 
by DOE, or to rate waived products the same as that for the specified 
tested combination. DOE is also considering applying a similar 
alternate test procedure to other comparable Petitions for Waiver for 
residential and commercial central air conditioners and heat pumps. 
Such cases include Samsung's Petition for Waiver for its DVM products 
at 70 FR 9629 (Feb. 28, 2005), and Fujitsu's Petition for Waiver for 
its Airstage variable refrigerant flow products at 70 FR 5980 (Feb. 4, 
2005).
    DOE is interested in receiving comments on the issues addressed in 
this notice. Pursuant to 10 CFR 430.27(d), any person submitting 
written comments must also send a copy of such comments to the 
petitioner, whose contact information is included in the ADDRESSES 
section above.

    Issued in Washington, DC, on September 4, 2007.
Alexander A. Karsner,
Assistant Secretary, Energy Efficiency and Renewable Energy.
December 28, 2005
Mr. Douglas L. Faulkner, Acting Assistant Secretary for Energy 
Efficiency and Renewable Energy, United States Department of Energy, 
Forrestal Building, 1000 Independence Avenue, SW., Washington, DC 
20585.

Re: Petition for Waiver and Application for Interim Waiver, LG 
Electronics Variable Refrigerant Flow Multi-Split Air Conditioners 
and Heat Pumps

    Dear Mr. Faulkner: LG Electronics, Inc. (LG) submits this 
Petition for Waiver and Application for Interim Waiver, pursuant to 
10 CFR 430.27, for its LG variable refrigerant flow multi-split air 
conditioners and heat pumps with variable capacity (``multi-
splits''). Waiver relief has been granted to Mitsubishi Electric and 
Samsung Air Conditioning for the same kinds of product. 69 FR 52660 
(Aug. 27, 2004) (Mitsubishi; waiver); 70 FR 9629 (Feb. 28, 2005) 
(Samsung; interim waiver).
    LG is a manufacturer of digital appliances, as well as mobile 
communications, digital displays, and digital media products. Its 
appliances include air-conditioners, washing machines, clothes 
dryers, refrigerators, refrigerator-freezers, air cleaners, ovens, 
microwave ovens, dishwashers, and vacuum cleaners and are sold 
worldwide, including in the United States. LG's U.S. operations are 
LG Electronics USA, Inc., with headquarters at 1000 Sylvan Avenue, 
Englewood Cliffs, NJ 07632 (tel. 201-816-2000). Its worldwide 
headquarters are located at LG Twin Towers 20, Yoido-dong, 
Youngdungpo-gu Seoul, Korea 150-721 (tel. 011-82-2-3777-1114) URL: 
https://www.LGE.com. LG's principal brands include LG[supreg], and 
OEM brands including GE[supreg] and Kenmore[supreg]. LG's appliances 
are produced in Korea and Mexico.
    LG intends to market multi-splits and requests waiver relief for 
this product. LG has 70 indoor units and 40 outdoor units for the 
product. The model numbers are set forth in Appendix A. As shown 
therein, 35 cooling-only indoor units can be matched with 20 outdoor 
units, and 35 heat pump indoor units can be matched with the other 
20 outdoor units. The electrical rating for this product is 208/230V 
60Hz.
    An LG multi-split is a beneficial product consisting of one 
outdoor unit, using a scroll or rotary type compressor with variable 
capacity, that can connect to multiple indoor units and that uses 
variable refrigerant flow and control systems. The multi-split is 
intended to be used in zoning systems where an outdoor unit can be 
connected with up to 8 separate indoor units in a zoned system, 
which need not be the same models. The operating characteristics 
allow each indoor unit to have a different set temperature and a 
different mode of operation (i.e., on/off/fan). All of the indoor 
units are capable of operating independently, with their own 
temperature and fan speed setting. Based on those controls, the 
outdoor unit will then determine the cooling or heating capacity 
delivered into the zones. The system therefore offers great 
flexibility and convenience to the consumer, permitting precise 
space conditioning control throughout the building, and thus saving 
energy.
    As stated above, 35 cooling-only indoor units can be matched 
with each related outdoor unit, and 35 heat pump indoor units with 
each related outdoor unit. And an outdoor unit can be connected with 
up to 8 separate indoor units. Thus, for each outdoor unit, there 
are millions of possible combinations of indoor units that can be 
matched in a system configuration. And since there are 40 outdoor 
units, there is a total of hundreds of millions of combinations for 
the LG multi-split line of products.
    The variable speed, constant speed or dual compressors and the 
associated system controls can direct refrigerant flow throughout 
the system to precisely meet the various heating or cooling loads 
required in the conditioned areas. The compressor is capable of 
reducing its operating capacity to as little as 40 percent of its 
rated capacity. The outdoor fan motor also has a variable speed 
drive to properly match the outdoor coil to indoor loads. Zone 
diversity enables the system to have a total connected indoor unit 
capacity of up to 130 percent of the capacity of the outdoor unit.
    A waiver and interim waiver for LG multi-splits are warranted 
because test procedures under the Energy Policy and Conservation

[[Page 53247]]

Act (EPCA), 42 U.S.C. 6291, et seq., evaluate the basic models in a 
manner so unrepresentative of their true energy consumption 
characteristics as to provide materially inaccurate comparative 
data, and/or the basic models contain one or more design 
characteristics that prevent testing of the basic model according to 
the prescribed test procedures. In such circumstances a waiver 
``will be granted.'' 10 CFR 430.27(l). In that regard:

--The test procedure provides for testing of a pair of indoor and 
outdoor assemblies making up a typical split system, but does not 
specify how an LG multi-split system, with literally millions of 
combinations of indoor units for each outdoor unit, could be 
evaluated. The situation is further complicated by the fact that 
there are 40 outdoor units. It is not practical to test each 
possible combination, and the test procedure provides no alternative 
rating method for generating efficiency ratings for systems with 
more than one indoor unit. Thus, the test procedure does not 
contemplate, and cannot practically be applied to, LG multi-split 
systems.
--The test procedure provides for testing ``matched assemblies,'' 
which does not apply to LG multi-split systems. Indoor and outdoor 
coils in split systems are typically balanced; that is, the capacity 
of the outdoor coil is equivalent to the capacity of the indoor 
coil. The test procedure's application to ``matched assemblies'' 
contemplates such a balance between indoor and outdoor coil 
capacity. With the LG multi-split systems, however, the sum of the 
capacity of the indoor units connected into the system can be as 
much as 130 percent of the capacity of the outdoor coil. Such 
unbalanced combinations of LG indoor and outdoor units are permitted 
by the zoning characteristics of the system, the use of electronic 
expansion valves to precisely control refrigerant flow to each 
indoor coil, and the system intelligence for overall system control. 
The test procedure designed for ``matched assemblies'' therefore 
does not contemplate or address testing for substantially unbalanced 
zoning systems such as the LG multi-splits.
--The existing test standards do not provide a test method for 
integrated part load value (IPLV) in the heating mode of a heat 
pump. Thus, the LG heat pump's part load capability in the heating 
mode is not accounted for in the test procedure. Due to the constant 
variation of the system capacity, it is patently inaccurate to rate 
the unit at its full load capacity or at any other fixed point of 
capacity when the unit capacity is constantly varying between 10 
percent and 100 percent of the rated capacity. Any test method 
utilized to rate these types of full variable refrigerant flow units 
should be indicative of the ability of these units to operate at 
10%, 20%, 30% * * * 100% of rated capacity as this is the true 
operation of the unit in the field.
--The existing test procedure does not account for the inherent 
benefits of eliminating air duct losses in a system, such as LG's, 
that is ductless.
* * * * *
    For all of these reasons, the existing test procedures evaluate 
the LG multi-splits in a manner so unrepresentative of their true 
energy consumption characteristics as to provide materially 
inaccurate comparative data and/or the basic models contain one or 
more design characteristics that prevent testing of the basic model 
according to the prescribed test procedures. 10 CFR 430.27. 
Therefore, DOE should grant a waiver for LG multi-split systems. The 
waiver should continue until a test procedure can be developed and 
adopted that will provide the U.S. market with a fair and accurate 
assessment of the LG system energy consumption and efficiency 
levels. LG intends to work with DOE, stakeholders, and the Air-
Conditioning and Refrigeration Institute (ARI) to develop the 
appropriate test procedure.
    There are no alternative test procedures known to LG that could 
evaluate these products in a representative manner.
    That a waiver is warranted is borne out by the fact that DOE has 
granted waiver relief to Mitsubishi Electric and Samsung for the 
same types of product. 69 FR 52660 (Aug. 27, 2004); 69 FR 9629 (Feb. 
28, 2005).
    Manufacturers of all other basic models marketed in the United 
States and known to LG to incorporate similar design characteristics 
as found in the LG multi-splits include Samsung Air Conditioning, 
Sanyo Fisher (USA) Corp., Fujitsu General Limited, Mitsubishi 
Electric and Electronics USA, and Mitsubishi Heavy Industries 
Climate Control, Inc.
    LG also requests immediate relief by grant of an interim waiver. 
Grant of an interim waiver is fully justified:

--The petition for waiver is likely to be granted, as evidenced not 
only by its merits, but also because DOE has already granted waiver 
relief to Mitsubishi Electric and Samsung.
--Without a waiver of the test procedure, LG will be at a 
competitive disadvantage in the market and suffer economic hardship. 
LG would be placed in an untenable situation: The product would be 
subject to a set of regulations that DOE already acknowledges should 
not apply to such a product, while at the same time other 
manufacturers are allowed to operate relieved from such regulations.
--Significant investment has already been made in LG multi-splits. 
Lack of relief would not allow LG to recoup this investment and 
would deny LG anticipated sales revenue. This does not take into 
account significant losses in goodwill and brand acceptance.
--The basic purpose of EPCA, as amended by the National Appliance 
Energy Conservation Act, is to foster purchase of energy-efficient 
appliances, not hinder such purchases. LG multi-splits produce a 
benefit to consumers and are in the public interest. To encourage 
and foster the availability of these products is in the public 
interest. Standards programs should not be used as a means to block 
innovative, improved designs.\2\ DOE's rules should accommodate and 
encourage--not act to block--such a product.
---------------------------------------------------------------------------

    \2\ 2 See FTC Advisory Opinion No. 457, TRRP 1718.20 (1971 
Transfer Binder); 49 FR 32213 (Aug. 13, 1984); 52 FR 49141, 49147-48 
(Dec. 30, 1987).
---------------------------------------------------------------------------

--Granting the interim waiver and waiver would also eliminate a non-
tariff trade barrier.
--Grant of relief would also help enhance economic development and 
employment, including not only LG Electronics USA's operations in 
New Jersey, Illinois and Alabama, but also at major national 
retailers and regional dealers that carry LG products. Furthermore, 
continued employment creation and ongoing investments in its 
marketing, sales and servicing activities will be fostered by 
approval of the interim waiver. Conversely, denial of the requested 
relief would harm the company and would be anticompetitive.

Conclusion

    LG respectfully requests that DOE grant a waiver and interim 
waiver from existing test standards for LG multi-splits until such 
time as a representative test procedure is developed and adopted for 
such products.
    We would be pleased to discuss this request with DOE and provide 
further information as needed.
    We hereby certify that all manufacturers of domestically 
marketed units of the same product type have been notified by letter 
of this petition and application, copies of which letters are 
attached (Appendix B).

Sincerely,

Richard Donner, Product Planning Manager, North America Product 
Planning Group, LG Electronics USA, Inc., 2000 Millbrook Drive, 
Lincolnshire, IL 60069, Phone: 201-906-9878, Fax: 847-941-8340, E-
mail: rdonner@lge.com.

John I. Taylor, Vice President, Government Relations, LG Electronics 
USA, Inc., 1750 K Street, NW., Washington, DC 20006, Phone: 202-719-
3490, Fax: 847-941-8177, Email: jtaylor@lge.com.

Of Counsel:

John A. Hodges, James T. Bruce, Wiley Rein & Fielding, LLP., 1776 K 
Street, NW., Washington, DC 20006, Phone: 202-719-7000, Fax: 202-
719-7049, E-mail: jhodges@wrf.com, jbruce@wrf.com.

Appendix A

Heat Pump

Indoor
    AMNH073LQ*0, AMNH093LQ*0, AMNH093LR*0, AMNH093D4*0, AMNH123LR*0, 
AMNH183LT*0, AMNH243LT*0, AMNH093DE*0, AMNH073DZ*0, AMNH093DU*0, 
AMNH123DEM0, AMNH123DU*0, AMNH183D3*0, AMNH243D3*0, AMNH093AP*0, 
AMNH093AP*1, AMNH123AP*0, AMNH123AP*1, AMNH093TC*0, AMNH123TC*0, 
AMNH093TE*0, AMNH123TE*0, AMNH183TE*0, AMNH243TF*0, AMNH093BP*0, 
AMNH123BP*0, AMNH093BT*0, AMNH126BT*0, AMNH183BT*0, AMNH183BH*0, 
AMNH243BH*0, AMNH093VE*0, AMNH123VE*0, AMNH183VB*0, AMNH243VB*0
Outdoor

[[Page 53248]]

    A2UW143FA0, A2UW143FA1, A2UW143FA2, A2UW163FA0, A2UW163FA1, 
A2UW183FA0, A3UW183FA0, A3UW183FA1, A3UW243FA0, A4UW243FA0, 
A4UW243FA1, A4UW303FA0, A6UW403FA0, A7UW483FA0, A8UW563FA0, 
A2UH143FA0, A2UH183FA0, A4UH303FA0, A2UH243FA0, A3UH363FA0

Cooling Only

Indoor
    AMNC073LQ*0, AMNC093LQ*0, AMNC093LR*0, AMNC093D4A*0, 
AMNC123LR*0, AMNC183LT*0, AMNC243LT*0, AMNC073DZ*0, AMNC093DU*0, 
AMNC123DU*0, AMNC123DEM0, AMNC183D3*0, AMNC243D3*0, AMNC093DE*0, 
AMNC093AP*0, AMNC093AP*1, AMNC123AP*0, AMNC123AP*1, AMNC093TC*0, 
AMNC123TC*0, AMNC093TE*0, AMNC123TE*0, AMNC183TE*0, AMNC243TF*0, 
AMNC093BP*0, AMNC123BP*0, AMNC093BT*0, AMNC126BT*0, AMNC183BT*0, 
AMNC183BH*0, AMNC243BH*0, AMNC093VE*0, AMNC123VE*0, AMNC183VB*0, 
AMNC243VB*0
Outdoor
    A2UQ143FA0, A2UQ143FA1, A2UQ143FA2, A2UQ163FA0, A2UQ163FA1, 
A2UQ183FA0, A3UQ183FA0, A3UQ183FA1, A3UQ243FA0, A4UQ243FA0, 
A4UQ243FA1, A4UQ303FA0, A6UQ403FA0, A7UQ483FA0, A8UQ563FA0, 
A2UC143FA0, A2UC183FA0, A4UC303FA0, A2UC243FA0, A3UC363FA0

Appendix B

Certification

    This is to certify that LG Electronics, Inc. has sent by next 
day delivery a copy of its petition for waiver and application for 
interim waiver for LG variable refrigerant flow multi-split air 
conditioners and heat pumps with variable capacity to manufacturers, 
known to LG, of domestically marketed units of the same product type 
(as listed in Section 322(a) of the Energy Policy and Conservation 
Act). The cover letter to each person states that the person may 
submit comments to DOE.
    Attached are the names and addresses of each person to whom a 
copy of the petition and waiver was sent by next day delivery.

Certified by:

John I. Taylor, Vice President, Government Relations, LG Electronics 
USA, Inc., Date: December 28, 2005.

December 28, 2005

    Re: LG Electronics, Inc. Petition for Waiver and Application for 
Interim Waiver; Opportunity for Comment

    To Whom It May Concern: This is to notify you by next day 
delivery of LG Electronics Inc.'s enclosed Petition for Waiver and 
Application for Interim Waiver of the United States Department of 
Energy (DOE) regulations on energy conservation test procedures. In 
accordance with DOE rules, we are also advising you of your 
opportunity to comment to DOE. The Assistant Secretary for 
Conservation and Renewable Energy will consider timely written 
comments. Comments are to be submitted to: Assistant Secretary for 
Energy Efficiency and Renewable Energy, U.S. Department of Energy, 
1000 Independence Avenue, SW., Washington, DC 20585-0107.
    Pursuant to DOE's rules, please provide us with a copy of any 
comments.

Sincerely,

John I. Taylor, Vice President, Government Relations, LG Electronics 
USA, Inc.

Aaon, Inc., 2425 South Yukon, Tulsa, OK 74107-2728, Attn: Jim Parro.
Advanced Distributor Products, Industrial Park Road, Grenada, MS 
38901, Attn: Joseph P. Bush.
Allstyle Coil Company, LP, 7037 Brittmore (77041), P.O. Box 40696, 
Houston, TX 77240-0696, Attn: Robert W. Magee.
American Best, LLC, 1845 W. First Street, Ste. 101, Tempe, AZ 85281-
7253, Attn: Daniel H. Burke.
Apex Coil, LLC, 400 Dean Street, P.O. Box 756, Gilmer, TX 75644, 
Attn: Candice Coscione.
Armstrong Air Conditioning, Inc., 421 Monroe Street, Bellevue, OH 
44811, Attn: Bruce R. Maike.
Aspen Manufacturing, Inc., 373 Atascocita Road, Humble, TX 77396, 
Attn: John McAndrews.
Bard Manufacturing Company, 1914 Randolph Drive, P.O. Box 607, 
Bryan, OH 43506, Attn: Irvin L. Derks.
Benchmark Manufacturing, Inc., 211 S. Industrial Street, P.O. Box 
2170, Lindale, TX 75771, Attn: Steven W. Hallock.
Carrier Corporation, Carrier Parkway, A&R Building, P.O. Box 4808, 
Syracuse, NY 13221, Attn: John Mandyck.
Compu-Aire, Inc., 8167 Bryon Road, Whittier, CA 90606, Attn: Balbir 
Narang.
Daikin Industries, Ltd., Nakaz'aki-Nishi Kita-Ku, Osaka 530-8323, 
JAPAN, Attn: Gary Nettinger.
Eubank Manufacturing Enterprises, Inc., Subsidiary of Fedders Corp., 
P.O. Box 7938, Longview, TX 75607, Attn: Todd Duckwitz.
Excel Comfort Systems, Inc., 990 Main Street, Blackville, SC 29817, 
Attn: William E. Dalton.
Firm Group Co., Ltd., 213.215 Moo 9, Luang Pang Road, Tab Yao, 
Ladkrabang, Bangkok, Thailand, Attn: Suvit Jirapavasuti.
Friedrich Air Conditioning Co., 4200 North Pan Am Expressway, P.O. 
Box 1540, San Antonio, TX 78295-1540, Attn: Sarup Bakhshi.
Fujitsu General America, 353 Route 46 West, Fairfield, NJ 07004, 
Attn: Tedd Rozylowicz.
Goodman Manufacturing Corp., 2550 North Loop West, Suite 400, 
Houston, TX 77092, Attn: Gary Clark.
International Comfort Products, LLC, 650 Heil-Quaker Avenue, 
Lewisburg, TN 37091, Attn: Halsey Cook.
International Environmental Corp., P.O. Box 2598, Oklahoma City, OK 
73101-2598, Attn: Warren Shoulders.
Lennox International Inc., P.O. Box 799900, Dallas, TX 75379-9900, 
Attn: David F. Lewis.
Magic Aire, 501 Galveston, Wichita Falls, TX 76301, Attn: Steve 
Wilson.
Mestek, Inc., 260 North Elm Street, Westfield, MA 01085, Attn: 
Anthony C. Novak.
Mitsubishi Electric & Electronics, USA, Inc. HV AC Products, 4505-A 
Newpoint Place, Lawrenceville, GA 30043, Attn: Paul Doppel.
Mortex Products, Inc., 501 Terminal Road (76106), P.O. Box 9380, Ft. 
Worth, TX 76147, Attn: Terrell J. Small.
National Comfort Products, 539 Dunksferry Road, Bensalem, PA 19020-
5908, Attn: John Morris.
NORDYNE Inc., 8000 Phoenix Parkway, P.O. Box 8809, O'Fallon, MO 
63366-8809, Attn: David J. Lagrand.
Rheem Manufacturing Company, 5600 Old Greenwood Road (72903), P.O. 
Box 17010, Fort Smith, AR 72917-7010, Attn: Alan F. Kessler.
Samsung Electronics Co., LTO, 416 Maetan3-Dong, Pal-dal-guSuwon 
Kyungki-Do.442-742, Korea, Attn: Byong-Jim Kong.
Superior Coils, Inc., P.O. Box 24325, Fort Worth, TX 76124, Attn: 
Deborah H. Hawkins.
Trane, 3600 Pammel Creek Road, La Crosse, WI 54601, Attn: Mike Ray.
Unico, Inc., 7401 Alabama Avenue, Saint Louis, MO 63111, Attn: Craig 
Messmer.
York International Corporation, 631 South Richland Avenue, P.O. Box 
1592, York, PA 17405, Attn: Daniel J. Arnold.
Air-Conditioning and Refrigeration Institute, 4100 North Fairfax 
Drive, Suite 200, Arlington, VA 22203, Attn: Stephen R. Yurek, Esq.

 [FR Doc. E7-18338 Filed 9-17-07; 8:45 am]
BILLING CODE 6450-01-P