2023 REGULATORY REQUIREMENTS AND WHAT THEY MEAN FOR YOU

Consumer 2023 Regulatory Requirements Tempstar - Corken Steel Products

2023 REGULATORY REQUIREMENTS AND WHAT THEY MEAN FOR YOU

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2023 REGULATORY REQUIREMENTS AND WHAT THEY MEAN FOR YOU

Heating and Cooling Products

TIME FOR A NEW CHANGE
As an innovative leader in home comfort, Tempstar has thrived by continuously looking for the next advancement in comfort technology. That's why we are always prepared when it's time to meet new, federally mandated minimum efficiency standards.*
* h ttps://www.federalregister.gov/documents/2017/01/06/2016-29992/energy-conservation-program-energy-conservation-standards-for-residentialcentral-air-conditioners
Why the Change Every six years the Department of Energy (DOE) reanalyzes the effects of energy usage, sets minimum efficiency requirements and manages the testing standards by which those efficiencies are measured. For 2023, the DOE is increasing the minimum efficiencies for central air conditioners and heat pumps. The testing procedures for determining those efficiencies will change as well.
2023 Minimum Efficiency Change For 2023, the DOE has reanalyzed and adjusted minimums accordingly. For air conditioners in the North, the minimum efficiency will increase from 13.0 to 14.0 SEER and in the South from 14.0 to 15.0 SEER under today's test procedure. The national heat pump minimum efficiency will increase from 14.0 to 15.0 SEER.
15.0 SEER up to 45k BTU, 14.5 SEER at/above 45k BTU
A New Normal is Coming for 2023 SEER2, EER2 and HSPF2 In addition to increasing the minimum efficiency in 2023, HVAC manufacturers will also be required to comply with a new testing procedure for developing efficiency ratings. Compared to today's test procedure, the external static pressure used when testing will be increased by up to 5X to better reflect field conditions. Since the new testing requirements are more stringent and reduce the resulting efficiency rating, in 2023, there will be new metrics and nomenclature SEER2, EER2 and HSPF2. On the same system, compared to SEER ratings, the new SEER2 ratings will be lower and the minimum efficiencies will be reduced to account for the more difficult test procedure. For example, the North Region's 14.0 SEER minimum efficiency under the current test procedure will become a 13.4 SEER2 under the new test procedure. With the new test procedure, ALL tiers of products will need to be retested, optimized and relaunched in accordance with the new test procedure resulting in a much larger scale project for manufacturers compared to prior minimum efficiency changes. In addition, the new test procedure will drive changes to the airflow set point on indoor blowers (fan coils and furnaces).

Current Test Procedure SEER, EER, HSPF

Heat Pump Test Procedure Example

New 2023 Test Procedure SEER2, EER2, HSPF2

0.1 ESP*

Test Procedure Change Increased external static pressure by 5X = increase blower motor watts = reduced efficiency rating
* External Static Pressure

0.5 ESP*

72°

WHAT THIS MEANS FOR YOU
As a practicing HVAC contractor, learning the new minimum efficiency standards for your region and understanding the consequences of non-compliance are important. We will continue to keep you informed about products that meet these requirements and any additional regulatory changes coming your way. We hope this white paper serves as a good first step to being prepared for 2023.

North Region

Southeast Region

System Type

2023 Minimum Efficiencies
Current New Minimum New Minimum Minimum with M Ratings with M1 Ratings

Split System AC 13.0 SEER 14.0 SEER

13.4 SEER2

Southwest Region

System Type
Split System AC (AC < 45k Btu/h)
Split System AC (AC 45k Btu/h)

2023 Minimum Efficiencies Current New Minimum Minimum with M Ratings
14.0 SEER 15.0 SEER
14.0 SEER 14.5 SEER

New Minimum with M1 Ratings
14.3 SEER2
13.8 SEER2

National

2023 Minimum Efficiencies

System Type

Current New Minimum New Minimum Minimum with M Ratings with M1 Ratings

Split System AC (AC < 45k Btu/h)
Split System AC (AC 45k Btu/h)

14.0 SEER 12.2 EER 14.0 SEER 11.7 EER

15.0 SEER 12.2 EER* 14.5 SEER 11.7 EER*

14.3 SEER2 11.7 EER2** 13.8 SEER2 11.2 EER2**

* 10.2 EER if equipment is at or above 16.0 SEER ** 9.8 EER2 if equipment is at or above 15.2 SEER2

2023 Minimum Efficiencies

System Type

Current New Minimum Minimum with M Ratings

Split System HP

14.0 SEER 8.2 HSPF

15.0 SEER 8.8 HSPF

SPP AC and

14.0 SEER

Gas Electric

(EER applies to SW only) 11.0 EER

14.0 SEER 11.0 EER

SPP HP and Dual-Fuel HP

14.0 SEER 8.0 HSPF

New Minimum with M1 Ratings
14.3 SEER2 7.5 HSPF2 13.4 SEER2 10.6 EER2 13.4 SEER2 6.7 HSPF2

AIR CONDITIONER RATINGS

The new 2023 minimum efficiency standards for air conditioners continue to follow the regional borders established in 2015: North, Southeast and Southwest. Additionally, the Southwest includes an EER/EER2 requirement. SEER and EER are ratings tested under the pre-2023 test procedure while SEER2 and EER2 are tested under the 2023 test procedure with higher external static pressures as detailed below.

System Type
Split System ACs (AC < 45K Btu/h)
Split System ACs (AC 45K Btu/h)

Split System Air Conditioners 2023 Regional Standards

North Region

Southeast Region

Southwest Region

New SEER

New SEER2

New SEER

New SEER2

New SEER

New SEER2

14.0 SEER

13.4 SEER2

15.0 SEER

14.3 SEER2

15.0 SEER and
12.2 EER*

14.3 SEER2 and
11.7 EER2**

14.0 SEER

13.4 SEER2

14.5 SEER

13.8 SEER2

14.5 SEER and
11.7 EER*

13.8 SEER2 and
11.2 EER2**

* 10.2 EER if SEER 16.0 SEER ** 9.8 EER2 if SEER2 15.2 SEER2

Sell- For the North Region, any 13.0 SEER AC built before January 1, 2023, can still be installed on or after January 1, 2023. Through For the Southeast and Southwest Regions, any AC that does not meet the above requirements cannot be installed on or Deadlines after January 1, 2023.

HEAT PUMP RATINGS

Heat pump minimum efficiency requirements follow national standards. In 2023, the new minimum efficiency standards for heat pumps will increase by 1.0 SEER to 15.0 SEER. Split-system heat pumps must also achieve a minimum of 8.8 HSPF.

Split System Heat Pump 2023 National Standards

System Type

National Efficiency Standard

New SEER and HSPF

New SEER2 and HSPF2

Split System HPs

15.0 SEER and 8.8 HSPF

14.3 SEER2 and 7.5 HSPF2

Sell-Through Deadline

Any 14.0 SEER heat pump built before January 1, 2023, can still be installed on or after January 1, 2023.

SMALL PACKAGED PRODUCT RATINGS

Small Packaged Products will not increase in minimum efficiency from 14.0 SEER and 8.0 HSPF, but will be required to comply with the new test procedure.

Packaged Systems 2023 National Standards

System Type
Packaged ACs & Gas/Electric ACs
Heat Pumps & Dual-Fuel HPs

National Efficiency Standard

New SEER & HSPF

New SEER2 & HSPF2

14.0 SEER

13.4 SEER2

14.0 SEER & 8.0 HSPF

13.4 SEER2 & 6.7 HSPF2

Southwest Region

New EER

New EER2

11.0 EER

10.6 EER2

N/A

Sell-Through Deadline

Any 14.0 SEER SPP unit built before January 1, 2023, can still be installed on or after January 1, 2023.

SEER, EER, and HSPF values shown are based on the current test procedure and are for reference only. Beginning January 2023, products must comply with the SEER2, EER2 and HSPF2 values developed using the 2023 test procedure.

WHAT IT ALL MEANS
Breaking down the numbers, the 2023 efficiency standards represent a 7-8% SEER increase from current standards, across the board. Under the new program, roughly 70% of our current products will NOT meet the minimum efficiency standards, and 100% of current products will need to be retested using the new procedures. The good news is, we have been working for several years in anticipation of these changes, and will be more than ready before the 2023 standards take effect on January 1, 2023.

WE'LL BE READY, AND YOU SHOULD BE TOO

We have been working on our 2023 product redesign and development for many years now. With millions of dollars invested in engineering, testing, tooling and manufacturing, we will be ready for 2023.

· The majority of product tiers and tonnages
will be available on or before January 1, 2023

· C omprehensive training and communications
will be shared when available

· Industry-leading technology within our 2023
product line will have been tested and validated to meet new requirements
· W e are instituting a phased roll out, with products
launching ahead of deadline, starting early 2022, to ensure readiness before January 1, 2023

· In addition, our regulatory-ready products are being
redesigned with an expected change in refrigerant,
first requirements targeted for the year 2025, to
minimize future product transitions

As we prepare for 2023, you will see new technologies emerge in 2022. We will launch aluminum outdoor coils in some of our current minimum efficiency products and a new indoor V-coil with Power-V technology. Both innovative solutions are key as we transition to our 2023 minimum efficiency products.
We will continue to keep you updated on our progress and will work with you so we can all make the transition to 2023-compliant products as seamless as possible.

The Costs and Consequences of Non-Compliance
As with the 2015 standards, we anticipate penalties for noncompliance in 2023 as well. The DOE has been aggressively enforcing efficiency standards in a number of industries, including HVAC and violations can be costly. Dealers and contractors caught installing non-compliant equipment will be forced to replace the equipment at their cost. Repeat violators can be put on a national do-not-sell list.

Distributors are subject to the same do-not-sell penalty if they knowingly and repeatedly supply non-compliant equipment to contractors who install that equipment in violation of the regional minimum. Manufacturers knowingly selling non-compliant equipment also face stiff fines. Any distributor or contractor identified as a routine violator will be prohibited from purchasing any of the seven classes of products identified in the Code of Federal Regulations, 10-CFR-430.32.

In 2015, the DOE cracked down with big fines for violators, including a $1.2 million fine to HVAC manufacturers.

PROTECTING YOUR BUSINESS
Training So how can you prepare to safeguard your business? The first step is training. As 2023 draws nearer, the 2023 minimum efficiency standards will be easily accessible on the Internet, including the DOE website. Tempstar will also be creating training materials and continually communicating with you as we get closer to the deadline. We will make every effort to supply you with region-appropriate products that meet all efficiency requirements for your area. However, it is important for you to protect your business by learning the efficiency standards for your region and placing product orders accordingly.
Future Record Keeping Beginning in 2023, dealers, contractors, distributors, and manufacturers will all be required to track the model and serial numbers of equipment sold, delivered and installed, as well as delivery addresses and installation locations. This includes cash sales. These records will protect you in the event of a DOE investigation and will need to be kept for up to 60 months, depending on the type of business:
- 48 months for dealers / contractors - 54 months for distributors - 60 months for manufacturers In summary, treat this information like you would treat your tax records, just to be safe.
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WE ARE HERE TO HELP
At Tempstar, we are here to help you safeguard your business.
· W e will provide detailed training. · O ur rating plates will continue to clearly identify regions in which
installation of the equipment is prohibited.
· W e will continue to include an EnergyGuide label on the exterior of
the shipping packaging for all condensing units.
· W e will publish EnergyGuide efficiency rating information for every
product online so you can provide this information to your customer before every sale, as required.

U.S. Government

Federal law prohibits removal of this label before consumer purchase.

Central Air Conditioner Cooling Only Split System

Model N4A5S36*K*WAA*

Efficiency Rating (SEER2)*
14.3

13.4 Least Efficient

19.0 Most Efficient

Range of Similar Models
* Seasonal Energy Efficiency Ratio 2

For energy cost info, visit productinfo.energy.gov

Notice
Federal law allows this unit to be installed only in:

AK, AL, AR, CO, CT, DC, DE, FL, GA, HI, ID, IL, IA, IN, KS, KY, LA, MA, ME, MD, MI, MN, MO, MS, MT, NC, ND, NE, NH, NJ, NY, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VA, VT, WA, WV, WI, WY, and U.S. territories.
Federal law prohibits installation of this unit in other states.
Energy Efficiency Ratio 2 (EER2): This unit's EER2 is 10.5.

Installation allowed

Split System Air Conditioner Sample Label

Better Safe Than Sorry We anticipate the DOE will allow easy and confidential reporting of suspected violations, and will make every effort to investigate credible complaints. In addition, manufacturers will be obligated to report any potential violations we identify or become aware of to the DOE within 15 days of discovery.
MAKE THE COMMITMENT
Remember, we ALL have a stake in this. As your trusted supplier, we will invest the time and resources to make compliance as easy as possible. That includes training, updated product labeling, and continued communications about this topic. In the end, we encourage you to make the commitment as well. Start preparing now by getting up to speed on the upcoming 2023 regulations and taking advantage of your resources or visit HVACpartners.com for the very latest on the 2023 regulatory requirements and product information. If you have any questions regarding the new 2023 regulations, reach out to your local distributor.
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Manufacturer reserves the right to change specifications on its products without notice. Illustrations and photographs in this brochure are only representative. Some product models may vary. Third-party trademarks and logos are the property of their respective owners.
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