Air-Conditioner and Commercial Refrigeration Advisory Committee Meeting 11

Minutes

Air-conditioner and Commercial Refrigeration Advisory Committee Meeting 11 14 May, 2015, 1.00pm – 4.40pm, Industry House, Canberra

Chair: Sara Williams (DIS)

Attendees and Apologies See Attachment A

Secretariat David Rochford (DIS)

Agenda Item 1: Administration

1.1 Welcome and housekeeping The meeting was opened at 1.00pm. The Chair welcomed all attendees and introduced herself and the DIS staff who were present.

1.2 Apologies and attendees See Attachment A.

1.3 Acceptance of agenda The agenda was accepted with the addition to Item 9 of an update on the Residential Air Conditioner Installation Standard from Rob Beggs, the Chair of Standards Committee EE-001.

1.4 Acceptance of previous meeting minutes The previous meeting minutes were moved by Colin Doyle (CESA) and seconded by Mark Padwick (AREMA).

1.5 Action Items from Meeting 10 The measures taken to address the action items from the last meeting were provided.  The Minutes from Meeting 9 had been placed on the Energy Rating website.  In a 15 December email, the Secretariat had circulated: copies of the latest draft of the climate (now zoned) label and reports; an answer from the Stakeholder Engagement Team regarding the design of the Energy Rating app’s stylised star label; an answer from the E3 Service Delivery Team regarding family of model registrations; further information on demand side management policies; and further information on fan MEPS. 1  The action item regarding the circulation of the ductwork and insulation product profiles is addressed during agenda Item 3 (below).

Action Item 1: DIS to place minutes of Meeting 10 on the Energy Rating Website.

Agenda Item 2: New COAG reporting structure

The Chair explained how the Equipment Energy Efficiency (E3) program sat under the new COAG reporting structure using the organisational chart that had been forwarded to members as an agenda paper. She also highlighted the recently released Commonwealth Energy White Paper and the forthcoming National Energy Productivity Plan (NEPP).

Agenda Item 3: Update – Flexible duct and Insulation Product Profiles

Dwayne Purdy, Manager of the Policy and Technical Analysis Team, gave an update on the status of both the Flexible Ductwork and Bulk Insulation Product Profiles (PP). Their release has been delayed as the product energy efficiency issues are being separated from the installation issues. While the product energy efficiency issues can be addressed by the GEMS Act, installation issues cannot as these responsibilities lie with the state/territories. Therefore, the PPs will only consider policy options regarding the energy efficiency (thermal performance) of the products and can only flag issues concerning installation. Dwayne hopes that these documents will be publicly released in July and he plans to pre-release them to industry bodies (including ACRAC) for an extra comment period. Frustration was expressed by a number of ACRAC members about poor installation practices as well as some poor quality products. The lack of state regulation and compliance was another source of frustration. Members of ACRAC expressed that there are easy opportunities to increase the operational energy efficiency of air conditioner systems by improving the installation practices and materials of flexible ductwork in particular.

Action Item 2: Dwayne Purdy to circulate the Ductwork and Bulk Insulation Product Profiles to the ACRAC membership for consultation (expected July 2015).

Agenda Item 4: Update – Demand Response RIS

Kris McCoy of the Consumer Appliance Team updated the group on the Smart Appliances (Demand Response) RIS. The scope of the RIS has been narrowed to air conditioners only. There were problems with the cost/benefit of including electric storage hot water heaters, while pool pumps and electric vehicle chargers are not regulated by E3 and therefore cannot be considered further at this point. It was noted that work on all of these standards is continuing. Since the release of the Consultation RIS, the restrictions of using the GEMS Act to implement potential policy options for this RIS have become apparent. As explained in the previous agenda item, the GEMS Act can only consider energy efficiency measures. Therefore the only energy efficiency benefits that could potentially come from mandating demand response come from increased part load efficiency during a DRM2 or DRM3 event. Several ACRAC members observed that the energy efficiency benefits of this technology are marginal at best. 2 Kris noted that she is continuing to liaise with the Energy Market Reform Branch within the Energy Division, as they are looking at a range of demand side management options. Kris is working with the E3 Committee in reviewing options for proceeding with this RIS and will notify ACRAC of E3’s decision as soon as possible. Kris hoped that this would be in the next couple of weeks. It was noted that Kris McCoy was now the lead for progressing the Consultation Electric Motors RIS.

Action Item 3: Kris McCoy to circulate E3’s decision regarding the future direction of the Smart Appliances (Demand Response) RIS to ACRAC as soon as possible.

Agenda Item 5: Refrigerated display and storage cabinets RIS

Lisa Sinclair from New Zealand’s Energy Efficiency and Conservation Authority (EECA) presented a paper on the progress of the refrigerated display and storage cabinet Consultation RIS (EECA are managing the project on behalf of E3). There will be an emphasis on investigating options for alignment with overseas testing and rating regimes as well as options for new MEPS levels. Lisa noted that various labelling options would also be investigated. EECA hope to have a draft ready in August to submit to E3, and the NZ Regulatory Impact Analysis Team (RIAT) - equivalent of the Office of Best Practise Regulation for the pre- release approval process. Following these approval processes, the Consultation RIS will be released to stakeholders for comment.

Agenda Item 6: Trial retrofit of doors on open refrigerated display cabinets report

Lisa Sinclair (EECA) then presented a paper outlining the results of a trial involving retrofitting open refrigerated display cabinets in a large grocery store in New Zealand. While the store reported 42% energy savings during the trial and shoppers reported feeling more comfortable while shopping there (i.e. not as cold), the store decided to remove the doors after only 4 months. An analysis of sales concluded that while staple dairy items (butter, yoghurt, cheese) and chilled drinks were unaffected, ‘quick and easy’ meal sales did suffer a sustained 5% drop in sales. Lisa was happy to supply a copy of the report to those members who were interested. Contact: Lisa Sinclair at [email protected]

Agenda Item 7: Update – E3 Service Delivery Team

Michael Gow of the E3 Service Delivery Team updated ACRAC on the numerous improvements his team either had recently instigated or were nearing completion for the E3 registration system. These included:  Changes to Applicant IDs created by agents, with the intent that the ‘agent’ will no longer be able to appear to be the ‘company’.  Wording changes in application forms to clarify some headings.  Improved error messages, as many are currently generic. These will be made more helpful so that, for example, if 3 decimal places are required in a field, the error message will articulate this.  Improved email text for returned registrations - when registrants receive an email because the application has been returned, the email will give the reason (rather than a generic response).

3  Registrants will be able to ‘recall’ submitted (but not approved) applications, rather than having to ask to have them returned.  Family of models registrations will require registrants to enter more than one model.  Applicant’s requests will be able to be ‘returned’ for modification, rather than being refused and having to start from scratch.  Variations are now assessed and most numeric fields can no longer be changed.

Michael also invited ACRAC members and other registrants to contact him if they have any ideas for further simplifying or streamlining the registration process. Contact: Michael Gow at [email protected]

Agenda Item: 8 Update – Energy Efficiency Compliance Team

Brian Byrne, Manager of the Energy Efficiency Compliance Team, updated the group on the latest 2014-15 compliance activities and plans for the next financial year. His team are currently obtaining solar hybrid air conditioners to perform both MEPS check testing and investigative tests on. For the MEPS check testing, they will be tested as per the test standard (i.e., with any solar input minimised or disconnected as far as possible). Subsequent investigative testing of the claimed energy efficiency benefits of the solar hybrid technology will then be performed with the solar panels attached as per the manufacturer’s instructions. Brian informed the group that other air conditioning check testing was in progress, including on a unit that has been registered with a hydrocarbon refrigerant. He noted that a number of check tests have been delayed while the team chase up locking instructions for inverter units and this is a continuing issue for the check test program. A number of members commented on the issue of locking instructions, including some opinions that comprehensive locking instructions should be a mandatory component of the registration process. It was also noted that currently, what constituted the ‘acceptable’ provision of locking instructions seemed to be inconsistently applied by registration assessors, so clarification of these requirements could be beneficial. Brian then provided an update on in-store inspections. A recent round of inspections in Canberra found that all products being offered for sale had been registered and an average of 95% of products were labelled correctly. Brian informed the group that a number of interstate inspectors had recently been certified and the number of inspections around the country will increase, as will the number of ‘online’ sales registration checks. Brian also informed the group of a recent enquiry that resulted in a clarification being issued regarding the application of Energy Rating Labels (ERLs) to products that are on display. While it is still the clear requirement of the GEMS Act to have an ERL attached to a product on display, and that the label must come with the product, it is not necessary to have the label attached to the product in the packaging. The label must be in the packaging, but it is the retailer’s responsibility to attach it should they choose to put the product on display. Brian also encouraged anyone with information regarding compliance issues to send it through to the Compliance Inbox and his team will investigate and respond to all allegations. The email address is [email protected]

Action Item 4: In response to a question from a meeting participant, Brian Byrne to provide ACRAC with a rough estimate of the potential financial penalty applicable under the GEMS Act for retailers not displaying an Energy Rating

4 Label.

Agenda Item: 9 Update – Portable test standard and Residential Air Conditioner Installation Standard

The Secretariat (David Rochford) updated the group on the status of the draft test standard for single-duct portable air conditioners, AS/NZS 3823.1.5. Standards Australia released the draft for a second round of public comment on 29 April and this will close on 10 June. A number of changes were made after the first round of public comments and the decision was made to run a combined voting and public comment period. The Secretariat estimated a publication date of July or August this year. David also noted that the US Department of Energy had recently released a RIS type document to assess the costs and benefits of regulating portable air conditioners. David agreed to circulate a link to this document to the ACRAC mailing list. Rob Beggs (Chair of Standards Committee EE-001) informed the group that Standards Australia had approved a work order request from an AIRAH submission to restart work on an installation standard for domestic cooling and heating systems. The purpose of the standard is to specify minimum requirements for the selection and installation of heating and cooling systems for residential applications to address operating energy efficiency. The standard also includes requirements to address system design and installation quality. The kick-off meeting occurred on 28 April and focused on getting the constitution of the committee and the scope of the standard correct. A number of deficiencies in the committee constitution were noted and potential new members have been identified and invited to participate. The scope of the project has been confirmed and will cover both ducted and non-ducted air conditioners of the vapour compression cycle, as well as ducted gas heaters. The next meeting will be held in the coming months.

Action Item 5: The Secretariat to circulate a web link to the US Department of Energy’s recent RIS type document on portable air conditioners.

Agenda Item: 10 Update – Energy Rating website update

Gemma Godwin of the Cooling, Heating, And Motor Products Section (CHAMPS) informed the group that plans to redesign the Energy Rating website had commenced. The first stage involved an independent survey of different user groups on how the current website is used and perceived. This information is being used to design a new layout and ensure that the site meets the latest Web Content Accessibility Guidelines (WCAG) requirements. A review of all of the content is also progressing.

Agenda Item: 11 Update – Climate (‘Zoned’) Rating Label

Gemma then gave the group a presentation on the latest work on the Climate Rating Label. She explained that the label would now be referred to as the Zoned Energy Rating Label (Zoned Label). This was considered a more accurate way to describe the label’s application across product areas where all technologies may not necessarily be affected by climate (for instance, electric storage hot water systems). She also highlighted some of the current work related to the Zoned Label. This includes a solar mapping report that will focus on a label map for solar hot water systems, as well as the next round of focus group and online quantitative testing to help refine a number of elements on the labels. 5 Agenda Item: 12 Update – Air conditioner RIS

Ben Costelloe (CHAMPS) gave the group an update on the air conditioner Consultation RIS. He informed the group of E3’s decision to exclude the future possible MEPS increase from the 2011 Decision RIS (referred to at the time as ‘Option C’) from further consideration in the current RIS. This means that the MEPS levels proposed by the 2011 Decision RIS will be discussed and analysed, but given that they are not a reasonable or cost effective option, they will be excluded from the formally assessed options for the current RIS. Ben also conveyed E3’s decision to exclude Close Control Air Conditioners from further consideration in the current RIS. Extending the current MEPS to the ‘in rack’ or ‘in row’ configurations was going to be ineffective, as these products already appear to exceed the MEPS. Furthermore, the other regulatory change that was being considered (including close control units with outdoor unit based compressors) might already be covered by the air conditioner determination. Ben explained this point in further detail and agreed to forward details of this interpretation to ACRAC with comment invited should anyone believe this interpretation would have unintended consequences. Lastly, the Chair (Sara Williams) presented the group with an approximate timeline for the RIS process. Sara explained that the team intends to have a draft ready for the internal approval process in July 2015. The draft would then have to go through internal Branch review, E3 Committee approval, Office of Best Practice Regulation (OBPR) and New Zealand Ministerial approval before being released for a 6-week public consultation. This is estimated to take anywhere between 3-9 months. Once the public consultation period is over, the Chair pointed out the numerous processes that have to occur before any new regulations take effect. It is difficult to anticipate how long this will take, as they are largely out of the Department’s hands. They include: Draft the Decision RIS Decision RIS approval process Decision RIS clearance and publication GEMS Determination drafting GEMS Determination approval and adoption GEMS Determination comes into force. Action Item 6: The Secretariat to circulate an out of session paper that outlines the reasons why units that have been traditionally categorised as Close Control Air Conditioners may fit under the current Air Conditioner Determination. Feedback from ACRAC is sought.

Other Items

Colin Doyle (CESA) asked Kris McCoy for an update on the status of the Motors RIS. Kris informed the group that OBPR has given the Department feedback that will require more analysis and re-formatting to be undertaken. Once OBPR have approved these changes, it will be released for public comment. The Chair suggested that the next ACRAC meeting should be around November, hopefully by which time the air conditioner RIS will be close to release. Mark Padwick (AREMA) noted that AREMA was due to have a meeting in Sydney on 12 November and suggested holding the ACRAC meeting at the same location

6 directly after this meeting. This will be investigated closer to the time and the Secretariat will liaise with AREMA as required.

Action Item 7: The Secretariat to organise the next ACRAC meeting and investigate holding it alongside the 12 November 2015 AREMA meeting in Sydney.

Meeting closed: 4.40 pm

Action Items Action Item 1: DIS to place minutes of Meeting 10 on the Energy Rating Website. Action Item 2: Dwayne Purdy to circulate the Ductwork and Bulk Insulation Product Profiles to the ACRAC membership for consultation (expected July 2015). Action Item 3: Kris McCoy to circulate E3’s decision regarding the future direction of the Smart Appliances (Demand Response) RIS to ACRAC as soon as possible. Action Item 4: In response to a question from a meeting participant, Brian Byrne to provide ACRAC with a rough estimate of the potential financial penalty applicable under the GEMS Act for retailers not displaying an Energy Rating Label. Action Item 5: The Secretariat to circulate a web link to the US Department of Energy’s recent RIS type document on portable air conditioners. Action Item 6: The Secretariat to circulate an out of session paper that outlines the reasons why units that have been traditionally categorised as Close Control Air Conditioners may fit under the current Air Conditioner Determination. Feedback from ACRAC is sought. Action Item 7: The Secretariat to organise the next ACRAC meeting and investigate holding it alongside the 12 November 2015 AREMA meeting in Sydney.

7 Attachment A

Attendees

Colin Doyle CESA Gemma Godwin DIS Pei Ru Chao Dep State Dev. SA Ken Ball Teco/AREMA Robert Beggs Daikin/AIG/CESA David Rochford DIS Adrian Kerr Temperzone NZ Michael Gow DIS Dwayne Purdy DIS Glenn Townsend AHI Carrier Peter Cashel Fujitsu Ben Costelloe DIS Inty Khan Dep State Dev. SA Pat Corcoran GWA Group Kristy McCoy DIS Mark Padwick AREMA Peter Wilkinson Mitsubishi Electric Satya Mavuri VIPAC Lisa Sinclair EECA Ian Forte Electrolux, AIG Brian Byrne DIS Ross Hamilton DIS Dora Bettridge VIPAC

Apologies Greg Picker AREMA Chris Menictas UNSW Simon Ho Ingersoll Rand Australian Building Codes Board