DOE and EPA Impacts to

Commercial Refrigeration

E360 Forum • Chicago, IL • October 5, 2017

Ani JayanthDirector, Product MarketingEmerson

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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DOE and EPA Survey

1. Refrigerant Landscape

2. EPA Refrigerant Regulations

3. DOE Equipment Regulations

4. DOE and EPA Timing

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4

The Refrigerant Landscape

Refrigerant Selection for Applications Need to Be Carefully Evaluated Based on Delistings, Performance Changes and Glide Characteristics.

R-410A

Like

Capacity

R404A &

R407/22

Like

R-134a

Like

GWP Level

400–675

< 1,500

~600

~300

HFO 1234yf

HFO 1234ze

ARM-42

R-410A

R-22

R-407A

R-407C

R-407F, R-452A

0 500 1,000 1,500 2,000

Pressure

or

R-32/HFC/HFO

Blends

R-32/HFO

Blends

HFC/HFO

BlendsR-134a

CO2

R-404A

R-507A

DR2, N12, ARC 1

R-290

NH3

A1 – Non-Flammable

A2L – Mildly Flammable

A3 – Flammable

R-123 Like

(V. Low Pr.)

(3,922)

R-32

R-32/HFO

Blends

R-448A

R-449A

R-450A

R-513A

R-444B = L20

L40, DR7

ARM-20b

HDR110

DR3

ARM-20a

R-446A, R-447A, ARM-71a

<150

B2L – Toxic, Mildly Flam.Qualitative – Not to Scale

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EPA Refrigerant Regulation

EPA’s Final Rules: July 20, 2015, and September 26, 2016

Phase-out

Refrigerant

Supermarket

New

Supermarket

Retrofit

Remote

Cond. Unit

New

Remote

Cond. Unit

Retrofit

Stand-alone

MT <2,200 BTU/hr. and

not contain flooded evap.

New

MT ≥2,200 BTU/hr. with or

without flooded evap.

New

LT

New

LT and MT

Retrofit

R-404A/507AJan. 1,

2017

July 20,

2016

Jan. 1,

2018

July 20,

2016Jan. 1, 2019 Jan. 1, 2020 Jan. 1, 2020

July 20,

2016

R-410A OK - OK - Jan. 1, 2019 Jan. 1, 2020 Jan. 1, 2020 -

R-407A/C/F OK OK OK OK Jan. 1, 2019 Jan. 1, 2020 Jan. 1, 2020 OK

HFC-134a OK OK OK OK Jan. 1, 2019 Jan. 1, 2020 OK OK

Likely Alternatives

(Emerson

Perspective)

R-448A/449A OK OK OK OK - - OK OK for LT only

R-450A/513A OK OK OK OK OK OK OK OK

R-290 - - - - OK OK OK -

R-744 OK - OK - OK OK OK -

R-717

OK(in primary loop

of secondary

CO2 sys.)

-

OK (in primary loop

of secondary

CO2 sys.)

- - - - -

Other Refrigerant Regulation Activity

Current Regulatory Proposals Target 150 GWP for Multiple Applications,

Creating Demand for Refrigerants With GWPs of Less Than 150. 6

Environmental Canada (EC)**:

proposal November 26, 2016

Commercial application GWP limit Date

Refrigeration – centralized

systems (MT/LT racks)1,500 2020

Refrigeration – condensing units 2200 2020

Refrigeration – LT stand-alone 1,500 2020

Refrigeration – MT stand-alone 700 2020

Foams 150 2021

Mobile refrigeration 2,200 2025

AC – chillers 700 2025

Domestic refrigeration 150 2025

F-Gas (EU): effective May 20, 2014

Commercial application GWP limit Date

Self-contained refrigeration 2,500 2020

Stationary refrigeration 2,500 2020

Self-contained refrigeration 150 2022

Centralized refrigeration 150 2022

– Except top side of cascade 1,500 2022

CARB: Short-lived climate pollutant reduction strategy

— proposal Nov. 28, 2016

Commercial application GWP limit Date

All refrigerant sales 2,500 ?

Non-residential refrigeration 150 ?

AC (non-residential and

residential)

750 ?

** http://www.gazette.gc.ca/rp-pr/p1/2016/2016-11-26/html/reg1-eng.php

• Phase-down (NAP) option also proposed

(2019 — 90%; 2024 — 65%; 2030 — 30%;

2036 — 15%; baseline 2011–2013)

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DOE Equipment Regulations Overview

Regulation Energy Mandates Are Not New But Have Evolved to Become Extremely Significant.

• Effective March 2017 on New Equipment

• CRE Measured in kWh/24-Hour Day

– Each Equipment Class Assigned

Equation

– Variable: Total Display Area (TDA)

or Volume

Industry Reach-In Solid Door Refrigerator Energy Draw

• Effective January 2020 on New

Equipment

–MT June 2017: Report AWEF/Label

–MT Jan. 2020: AWEF Enforcement

– LT June 2020: Report/Label/Enforcement

• WICF Measured in Three Major

Components

• AWEF Measured Using AHRI-1250

Testing Standard

– Each Equipment Class Assigned Equation

– Variable: Q = System Capacity

• Effective January 2018 on New Equipment

• ACIM Measured in kWh/100 lbs Ice

– Each Equipment Class Assigned

Equation

– Variable: H = Harvest Rate in lbs per

24 Hours

Commercial Refrigeration

Equipment

Walk-In Coolers and

Freezers (WICF)Automatic Commercial

Ice Makers

From 20% to 50% Energy Reduction Required for Systems, Depending on Class 5% to 25% Energy Reduction Required

DOE and EPA Regulations Together

2016 2017 2018 2019 2020

Supermarket (Rack)

Walk-in (Remote CDU)

Cooler

Freezer

Reach-in (Stand-alone)

Cooler <2,200 BTU

>2,200 BTU

Freezer

Ice Machine

Soft Serve/Frozen Bev.

<2,500 GWP

<2,500 GWP

<600 GWP

<1,500 GWP

30–50%

5–15%

1/1/17

1/1/18

3/27/17

1/1/18

1/1/20

1/1/19

1/1/20

20–30%

<600 GWP

1/1/21

In Proposal:1. CARB: All Commercial Refrigeration <150 GWP approved, but effective date TBD.

2. Propane chart limit increase likely in 2018. Could be implemented by OEMs immediately.

20–40%

8

Some Notes on DOE Regulations

1. CRE

2. WICF

3. CCMS

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CRE — Commercial Refrigeration EquipmentVertical Self-contained Reach-ins Impacted the Most

Total of 33 Classes of Equipment Impacted for Commercial Refrigeration Equipment

Comparing 2017 vs. 2010

1. Improvement Reduces Relatively for Larger-size Machines

• VCT.SC.M

2. Improvement Increases Substantially for Larger-size Machines

• VCT.SC.L

• VCS.SC.L

3. Improvement Levels out for Larger Machines

• VCT.SC.L

• VCS.SC.L

• VCS.SC.M

VCT.SC.M

VCT.SC.L

VCS.SC.M

VCS.SC.L

25%

28%

31%

34%

37%

40%

43%

46%

49%

52%

55%

58%

61%

64%

67%

70%

5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 100

2017 v

s. 2010 E

nerg

y R

ed

ucti

on

Dif

fere

nce %

Size ft3

VCT.SC.M VCT.SC.L VCS.SC.M VCS.SC.L

2010 kWh = 0.12(V)+3.34 0.75(V)+4.10 0.10(V)+2.04 0.40(V)+1.38

2017 kWh = 0.10(V)+0.86 0.29(V)+2.95 0.05(V)+1.36 0.22(V)+1.38

Y-intercept

% Change-74% -28% -33% 0%

Slope %

Change-17% -61% -50% -45%

Installed Base Volume

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CRE — Commercial Refrigeration EquipmentBuffet Tables, Salad Bars, Prep Tables Beyond Scope of Energy Mandates

Waivers Can Be Obtained But Are Complicated and Lengthy in Time.

Regulated

Not RegulatedNot Regulated

Airflow AirflowNot Regulated

Regulated

No Test Procedure Established

DOE Recommended Design OptionsEmerson and Market Recommended Cost-Effective Design Options

WICF — Walk-in Cooler and FreezerDesign Options

1. MT Condensing Units

2. LT Condensing Units

Floating Head Pressure

Modulating Evaporator Fans

Electronically Commutated Motors

Improved Evaporator Fan Blades

Improved Condenser Fan Blades

Improved Coil

Hot Gas Defrost

Temperature-initiated, Temperature-terminated

Defrost

Variable Speed Compressor

Variable Speed Condenser Fans

Variable Speed Evaporator Fans

Ambient Sub-cooling Liquid Injection

for 448A and 407A

Float Head Pressure

12

13

CCMS: Compliance Certification Management System

DOE Enforcement Mechanism Has Been Used and Will Continue to Strengthen Over Time Differentiation Tool for Market!

37,616

CRE

797

ACIM

1,673

WICF

• Google “DOE CCMS” or …– https://www.regulations.doe.gov/ccms

• DOE enforcement mechanism– Fines have been imposed

• Annual certification required by submitting new CCMS and supplemental testing forms each year

Emerson Compression Product Refrigerant Qualifications

1. Glide Considerations

2. Product Performance

3. Emerson Qualification Summary

4. Product Refrigerant Summary

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Heat Exchangers Operate at Bubble/Dew Points and

Compressor “Sees” Dew Point Conditions

Dew Point

• When there is no glide and assuming little/no pressure drop, the temperature at mid-point = temperature at dew point

Mid-Point

• When there is glide and assuming little/no pressure drop, the temperature at mid-point ≠ temperature at dew point

Assume negligible pressure drop effects.

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16

Key Product Changes to Performance With Alternative Refrigerants

RefrigerantTemperature

Glide °F

R-404A ~1 °F

R-407A ~8 °F

R-448A ~7 °F

R-449A ~7 °F

R-134a0 °F (single

component)

R-450A~1 °F (near

azeotrope)

R-513A0 °F

(azeotrope)

Glide Creates System Component Sizing Implications.

Dew Point Mid-Point

Cap. EER Cap. EER

Scroll

MT

407A -3.9% -2.1% +0.2% -2.2%

448A -1.1% -0.3% +3.0% -0.1%

Scroll

LT

407A -23.7% -0.9% -18.7% +0.7%

448A -19.4% -6.1% -13.9% -4.8%

Recip

LT

450A -14.1% -0.5%

513A +4.0% -1.2%

Glide Consideration

Changes to Capacity and Efficiency

Against Incumbent 404A and 134a

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Emerson Product Alternative Refrigerant Qualification

Please Visit Emerson Online Portal for Specific Ratings by Product.

448A

449A

407A

450A

513A

LT Requires

Liquid Injection

LT Requires

Liquid Injection

Progress

No P

lan

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Alternative Refrigerant Product Performance Summary

• R-448A/449A Approval for Stand-Alone MT Required

• R-448A/449A for Reciprocating Hermetic– LT Envelope Challenges Due to High Heat of Compression

– Glide Considerations

– Capacity Increases From R-404A

• R-450A/513A for Reciprocating Hermetics– R-450A Capacity Drops From 134a

– R-513A Near Drop in Replacement With No Theoretical Capacity Changes

– Glide Considerations

– MBP to LBP Performance Drops and Capacity Changes, Requiring Complete System Redesign

There Is No Such Thing as a “Drop-in” Refrigerant Replacement.

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!

Ani Jayanth

Director, Product Marketing

ani.jayanth@emerson.com

937-498-3314

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