HVAC Regulations, Refrigerants

and Solutions

E360 Forum • Chicago, IL • October 5

David Hules

Director of Commercial Marketing — Air ConditioningEmerson

This presentation is intended to highlight changing developments in the law and industry topics. The law is frequently evolving and information and publications in this presentation may not reflect the latest changes in the law or legal interpretations. The statements and information provided in this presentation should not be construed as legal advice or legal opinion regarding any specific facts or circumstances, but is intended for general informational purposes only. The views and statements expressed during this presentation are the personal opinions of the presenter and do not represent those of Emerson Climate Technologies, Inc. or its affiliated companies. You should consult an attorney about your situation and specific facts and you should not act on any of the information in this presentation as the information may not be applicable to your situation. Although all statements and information contained herein are believed to be accurate and reliable, they are presented without warranty of any kind. Information provided herein does not relieve the user from the responsibility of carrying out its own tests and experiments. Statements or suggestions concerning the use of materials and processes are made without representation or warranty that any such use is free of patent infringement and are not recommendations to infringe on any patents. This presentation may not be copied or redistributed without the express written consent of Emerson Climate Technologies, Inc.

Disclaimer

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Agenda

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Commercial heating and air conditioning trends

Regulations and future refrigerants landscape

What it means for you, and technologies to watch

5.5M Commercial Buildings in the U.S. and Key

HVAC Statistics Driving Three Megatrends

4.4MILLION

BUILDINGS WITH AC

1.6MILLION

NEW AC UNITS/YEAR

10MILLION

RTU INSTALLED BASE

<15PERCENTBMS PENETRATION

EFFICIEN

CY REGS

COMFORT

& HEALTH

CONNECT

IVITY

Efficiency

Comfort and

air quality

Building automation/

connectivity

5.5M Buildings

Source: Commercial Buildings Energy Consumption Survey (CBECS)

HVAC Statistics Megatrends

32 YEARSAVERAGE AGE

ONLY 20%OF BUILDINGS WITH

HVAC UPGRAGE

45%REDUCTION IN

ENERGY/SQ. FT.

BY 2030 (DOE)

1BSQ. FT. OF NEW

CONSTRUCTION PER

YEAR (2012–19)

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Megatrends and Industry Response to Drive More Efficient Buildings

Trend Industry Response

Building automation/

connectivity

Energy efficiency

Comfort and air quality

• Modulation technologies

– Compression and controls

• Low-GWP refrigerants

– A2L compression

– Next-gen compression

• Air management

– Latent vs. sensible

– Indoor air quality (IAQ)

• Efficiency retrofits

– Equipment controls/monitoring

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Most efficient components

Most efficient buildings

Most efficient systems

• Enable green buildings (LEED, net zero)

• Whole-building efficiency targets

• Ventilation and air quality

• Commissioning and monitoring for buildings

• Coordination of building subsystems

Holistic Building Solutions Deliver on the Promise of Most Efficient Buildings

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Agenda

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3

Commercial heating and air conditioning trends

Regulations and future refrigerants landscape

What it means for you, and technologies to watch

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DOE Efficiency Standards for Commercial AC Packaged/Split Systems

On 1/1/2018, the DOE Will Adopt the 90.1-2013 IEER Levels Nationally.

Note: ASHRAE 90.1 also has an EER component not shown here.

Note: Electric resistance values, subtract 0.2 EER/IEER for all other equipment. https://www.energycodes.gov/status-state-energy-code-adoption

Status of State Energy Code Adoption

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Emphasis on Air Quality Driving Demand for DOAS Architecture in Buildings

• State adoption of ASHRAE 62.1 – 2004 (and newer versions) is high–Specifies minimum ventilation rates and other measures intended to

provide IAQ that is acceptable to occupants

–44 states have adopted through the international mechanical code (IMC)

• Design engineers adopting DOAS building architecture over VAV–Multiple space equation (ASHRAE 62.1) in VAV systems leads to

20 to 70% more outside air than DOAS

• Poor damper control on air handlers

• VAV box minimum settings must be high to meet standard

• Provides first cost and annual savings–DOAS architectures reduce equipment size and provide up to 25%

annual operating cost savingsSource: www.doas.psu.edu

Ventilation Standards Impacting Building Designs

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Example of How DOAS Unit Application Can Benefit End Users

Commercial RooftopCurrent Architecture

• Major retail chains are replacing a portion (~⅓) of their HVAC systems with higher-efficiency DOAS systems

• Conventional HVAC systems focus on sensible load

• Dedicated DOAS systems to handle fresh air requirement and latent load (moisture removal)

• Overall energy savings to end users provide for increased value between DOAS and conventional units

Before: 10 Rooftop Units

10 Tons Each

100 Tons Total

After: 3–10 Tons New DOAS

7– ~7 Tons Old Units

79 Tons Total

DOAS Units

Smaller or Fewer RTUs

DOAS-Based Commercial RooftopNew Architecture

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2023 Will Introduce 0.5 to 1.0 SEER Increase Under the Current

Metrics for 2–5T Commercial Packaged and Split Equipment

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• 2023 standard, as per current metrics

• 2023 standard with new metrics (updating to better reflect actual field conditions)

Product Class National Southeast Southwest

SEER HSPF SEER SEER EER

Split AC < 45 kBTU/Hr 14 15 15 12.2/10.2*

Split AC >= 45 kBTU/Hr 14 14.5 14.5 11.7/10.2*

Split HP 15 8.8

Single Packaged AC and HP 14 8.0

Product Class National Southeast Southwest

SEER2 HSPF2 SEER2 SEER2 EER2

Split AC < 45 kBTU/Hr 13.4 14.3 14.3 11.7/9.8*

Split AC >= 45 kBTU/Hr 13.4 13.8 13.8 11.2/9.8*

Split HP 14.3 7.5

Single Packaged AC and HP 13.4 6.7

*10.2 EER Limit for Equipment >= 16 SEER

* 9.8 EER Limit for Equipment >= 16 SEER

Kigali Amendment to Montreal Protocol Drives Continued Activity on Low

Global Warming Potential (GWP), Mildly Flammable (A2L) Refrigerants

0

20

40

60

80

100

120

2015 2020 2025 2030 2035 2040 2045 2050

GW

P W

eig

hte

d C

AP

(%

of B

ase

line

)

Developed

countries

(U.S., Canada, etc.)

Developing countries

(India, China, etc.) ‘17 ‘18 ‘19 ‘20 ‘21 ‘22 ‘23 ‘24

A2L —

IEC/UL/ASHRAE

A2L into bldg. codes

Bldg. codes adoption

by states

DOE residential SEER

std.

DOE commercial RTUs

IEER std.EL1 EL3

EPA delist in chillers

• Global agreement reached by 197 countries in Kigali, Rwanda, in Oct. 2016

• EPA will ban the use of R-410A in AC chillers in 2024

• More actions expected to comply with global agreement

• The U.S. has not ratified

OEM A2L

design start

RTU launches

2024

freeze2028

freeze

Interim phase 1

Long-term phase 2

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http://multimedia.3m.com/mws/media/1365924O/unep-fact-sheet-kigali-amendment-to-mp.pdf

R-410A

Like

R-407/

R-22 Like

R-134a

Like

GWP Level

400–675

< 1,500

~600

150–300

HFO 1234yf

R-410A

R-22

R-407C

0 500 1,000 1,500 2,000

Pressure

R-32/HFC/HFO

Blends

R-32, R-452B,

HFO blends

HFC/HFO

BlendsR-134a

CO2

R-290

NH3

A1 – Non Flammable

A2L – Mildly Flammable

A3 – Flammable

B2L – Toxic, Mildly Flam.

R-123 LikeHFO 1234ze

HFO

Blends

Large

chillers

(R-1234ze)

Unitary

systems

<750 <1,500<150

Current, Likely Low-GWP Candidates for Air Conditioning Applications

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Key Activities Impacting Low-GWP Refrigerant Regulations

and Timing for HVAC in the U.S.

• HFC Phase-down Timing Is Uncertain– August 2017 EPA’s SNAP Rule 20 delisting of certain HFCs vacated (by U.S. Court of

Appeals for the DC Circuit)

– Rule remanded (sent back) to EPA for further proceedings

– AHRI and other HVACR industry partners continue to support and advocate for ratification of the Kigali Amendment to the Montreal Protocol and the phase-down of HFCs

• Key Safety Standards Under Revision for A2L Refrigerants

– ASHRAE 15, UL1995 and UL60335-2-40

• Ongoing A2L Research Six studies ongoing; two complete

– AHRTI-9007: Benchmarking Risk by Real Life Leaks and Ignitions Testing

– AHRTI-9009: Leak Detection of A2L Refrigerants in HVACR Equipment

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Agenda

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Commercial heating and air conditioning trends

Regulations and future refrigerants landscape

What it means for you, and technologies to watch

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How Could Regulations Potentially Impact You?

• Higher part-load efficiency (IEER) systems–Potentially higher first cost

–Lower operating cost

• Potential increase in system footprint– Larger heat exchanger surface area

• Reduction in system refrigerant circuits

• More applications with modulated scroll compressors– Mechanical modulation and variable-speed technology

• More complicated controls

• VFDs on evaporator blower motors — staged speeds

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Technology Solutions to Optimize System Part-Load Efficiency

Multi-speed blower fans

Multi-speed condenser fans

Compression

Larger coil heat exchangers

and fewer circuits

Controls

Technology Levers

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Industry Also Focused on ROI-driven Solutions for the

Installed Base to Improve Building Performance

Only 14% of Buildings ≤200K Sq. Ft. Have Some Form of Building Management System.

Replace HVAC Equipment

• Substitute HVAC equipment to a high-efficiency system

• High first cost

• Tenant versus owner conflict

Upgrade Installed Base of Equipment

• Retrofit to improve HVAC efficiency

• Rebate incentives drive actions

• Upgrade improves comfort

Lt. Commercial Building Management System (BMS)

• Connected upgrade for system health and fault detection

• Virtual “building controls” through connectivity and cloud

• System complexity varies, depending on building size

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Small

Comm’l Building

Medium

Comm’l Building

Large

Comm’l Building

≤25K sq. ft. ≥200K sq. ft.

Lt. Commercial BMS Opportunity

~99% of U.S. Comm’l Buildings

>25K–200K sq. ft.

Well Served

Source: Commercial Buildings Energy Consumption Survey (CBECS)

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Multi-HVAC System Management Solutions

Emerging for Commercial Buildings

Analytics and reports

Machine learning

Centralized monitoring

and control

Multi-stat dashboard creates

groups, multi-site, sorting,

searching a thermostat

Multi-system management Smart automation

• Batch scheduling

• Special events scheduling

• Occupancy-based controls

• Calendar sync

Actionable alerts

Multi-user controls

• Access controls

• Admin functionality

Open-source

interoperability

Third party integrations

to expand features

Premium Feature Offerings Easy Management

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Transformative Wave Turns RTUs Into Smart, Efficient Machines

Patented

Upgrade for existing RTUsreduces overall HVAC energy

use up to 50%

Web-based connectivity package and software tools for RTU monitoring, fault detection and

reporting

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Three Pillars to Improving Installed Base Building Performance

Proven Solutions Exist to Enable Operational Efficiency

Improvements of Existing HVAC Systems and Building Infrastructure.

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optimize upgrade perpetuate

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Questions?

DISCLAIMER

Although all statements and information contained herein are believed to be accurate and reliable, they are presented without guarantee or warranty of any kind, expressed or

implied. Information provided herein does not relieve the user from the responsibility of carrying out its own tests and experiments, and the user assumes all risks and liability for

use of the information and results obtained. Statements or suggestions concerning the use of materials and processes are made without representation or warranty that any such

use is free of patent infringement and are not recommendations to infringe on any patents. The user should not assume that all toxicity data and safety measures are indicated

herein or that other measures may not be required.

Thank You!

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