Purchasing Energy-Efficient Light Commercial Heating and Cooling Equipment

The Federal Energy Management Program (FEMP) provides acquisition guidance for commercial central air conditioners. This equipment falls under the light commercial heating and cooling equipment product category covered by ENERGY STAR efficiency requirements.

FEMP's acquisition guidance and associated ENERGY STAR efficiency requirements apply to commercial central air conditioners with cooling capacities rated to be below 240,000 British thermal units per hour (Btu/hr).

This acquisition guidance was updated in June 2024.

Find Product Efficiency Requirements

The U.S. Environmental Protection Agency (EPA) provides light commercial heating and cooling equipment on its ENERGY STAR website. Manufacturers meeting these requirements are allowed to display the ENERGY STAR label on complying models. Federal buyers can use ENERGY STAR's list of certified light commercial heating and cooling equipment to identify or verify complying models.

With the Clean Energy Rule finalized in Spring 2024, federal agencies must significantly reduce the use of on-site fossil fuels in new and majorly renovated facilities used for federal purposes. From FY 2025 to FY 2029, federal entities must reduce the use of fossil fuels by 90% in facilities that are newly constructed or undergoing major renovation (exceeding a total cost threshold of $3.8 million in 2024 dollars for federally owned buildings). To comply, contracting officers should avoid purchases of commercial fossil fuel-fired boilers. Federal buyers are encouraged to consult the Clean Energy Rule webpage for further guidance. If no technically practicable alternative to a fossil-fueled product can be found that meets the mission requirements of the agency, an agency may obtain guidance, or request technical assistance, or petition for downward adjustment of the fossil fuel reduction target from FEMP by contacting the Clean Energy Rule team.

Make a Cost-Effective Purchase: Save $2,665 or More by Buying ENERGY STAR

FEMP has calculated that the required ENERGY STAR-qualified central air conditioner models save money if priced no more than $2,665 (in 2022 dollars) above the less efficient model. The best available central air conditioner model saves up to $3,624. Table 1 compares three types of central air conditioner purchases and calculates the lifetime cost savings of purchasing efficient models. Federal purchasers can assume products that meet ENERGY STAR efficiency requirements are life cycle cost-effective.

Table 1. Lifetime Savings for Efficient Central Air Conditioner Models
PerformanceBest AvailableENERGY STARLess Efficient
EER12.512.010.8
Annual Energy Use (kWh)21,36022,25024,722
Annual Energy Cost$2,116$2,204$2,449
Lifetime Energy Cost$23,023$23,982$26,647
Lifetime Cost Savings$3,624$2,665======

 

Determine When ENERGY STAR Products Are Cost-Effective

An efficient product is cost-effective when the lifetime energy savings (from avoided energy costs over the life of the product, discounted to present value) exceed the additional up-front cost (if any) compared to a less efficient option. ENERGY STAR considers up-front costs and lifetime energy savings when setting required efficiency levels. Federal purchasers can assume ENERGY STAR-qualified products and products that meet FEMP-designated efficiency requirements are life cycle cost-effective. In high-use applications or when energy rates are above the federal average, purchasers may save more if they specify products that exceed federal efficiency requirements (e.g., the best available model).

Purchasing Requirements

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Federal laws and requirements mandate that agencies purchase ENERGY STAR-qualified products or FEMP-designated products in all product categories covered by these programs and in any acquisition actions that are not specifically exempted by law.

These mandatory requirements apply to all forms of procurement, including construction guide and project specifications; renovation, repair, energy service, and operation and maintenance (O&M) contracts; lease agreements; acquisitions made using purchase cards; and solicitations for offers.

FAR Contract Language

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Federal Acquisition Regulation (FAR) Part 23.206 requires agencies to insert the clause at FAR section 52.223-15 into contracts and solicitations that deliver, acquire, furnish, or specify energy-consuming products for use in federal government facilities. 

To comply with FAR requirements, FEMP recommends that agencies incorporate efficiency requirements into technical specifications, the evaluation criteria of solicitations, and the evaluations of solicitation responses.

Federal Supply Sources

The federal supply sources for energy-efficient products are the General Services Administration (GSA) and the Defense Logistics Agency (DLA).

The U.S. Department of Agriculture (USDA) and U.S. Environmental Protection Agency (EPA) provide programs that help federal agencies buy products with positive environmental attributes.

Identification codes for product categories covered by sustainable acquisition requirements are provided by DLA and the United Nations Standard Products and Services Code (UNSPSC).

Light Commercial Heating and Cooling Equipment Schedules and Product Codes

GSA offers light commercial heating and cooling (light HVAC) equipment through Multiple Awards Schedules Industrial Products 333415HVAC, Hardware & Tools 332510S, and Hardware & Tools 332510C

The DLA ENAC for light commercial heating and cooling equipment is "G8."

The UNSPSC for air conditioners is 40101701.

Buyer Tips: Make Informed Product Purchases

The ENERGY STAR performance requirements save energy nationwide, but climate does substantially impact the performance of light commercial heating and cooling equipment. You can achieve additional, sometimes quite significant, savings by optimizing your heating and cooling equipment for the specific climate conditions at your site. Consider if the following technologies meet your site's specific needs:

  • Air-source heat pumps (ASHPs) for hot/dry and mixed or moderate climates
  • Economizers in dry climates
  • Two-speed fans and modulating compressors for areas with high temperature variations.

Central air conditioners that are designed to provide more sensible cooling perform better in dry climates, whereas those designed for greater moisture removal perform better in humid climates. In hot climates, consider installing central air conditioners that exceed minimum performance requirements. Depending on utility rates, additional energy and cost savings can be achieved.

Many new energy consuming appliances come equipped with Internet of Things (IoT) sensing components and network connectivity. Making a new purchase or replacement represents a prime opportunity to evaluate the vulnerabilities of your network. All IoT-enabled devices introduce novel exposures to potential data breaches. Building controls and heating, ventilating, and air conditioning systems are no exception. Security can almost never be networked in after the fact, and so it is important to ensure that your networked devices are secure. Also, regularly testing for network vulnerabilities is key. For more information on how to build cybersecure networks of building technologies, consult existing FEMP guidance and case studies.

Air-Source Heat Pumps

Local climate conditions particularly affect ASHPs because the units use outdoor air as both a heat source and heat sink. An advantage of ASHPs is that one system can provide both space heating and cooling in a building. Heat pumps work well in hot/dry and mixed (or moderate) climates. Cold climates require specially designed heat pumps that can operate at lower ambient temperatures before switching to resistance heating.

In 2023, ENERGY STAR updated its light commercial HVAC category to include cold climate light commercial heat pumps requirements. Sites in cold climates should procure a certified cold climate light commercial heat pump.

Economizers

In dry climates, economizers can substantially reduce energy use by using outside air to cool interior spaces. When the ambient temperature and humidity conditions are favorable, economizers open dampers to allow more outside air in and reduce the amount of indoor air recirculated. Under certain conditions, the economizer can shut down the condenser unit and cool a building using outdoor air only.

Two-Speed Fans

Other technologies that reduce energy use and operating cost include two-speed fans, which allow for decreased energy use in ventilation-only mode when neither heating nor cooling is needed, and modulating compressors, which use less energy than single-speed models at partial loads. Two-speed fans should be used with modulating compressors to match the airflow with the amount of cooling provided.

Control Settings

Economizers, two-speed fans, and other features usually require operation by an appropriate and well-calibrated control system. ASHRAE provides guidance on proper control settings through its published Standard 90.1-2007. Automated fault detection and diagnostics control systems can alert building operators to any equipment failures, such as low refrigerant charge, that require maintenance or repair.

Quality Installation

Federal buyers should require that commercial central air conditioners and ASHPs be installed in accordance with the HVAC Quality Installation (QI) Specification published by the Air Conditioning Contractors of America. Installation problems—such as oversizing, improper charging, and leaky ducts—result in efficiency losses, occupant discomfort, and shortened equipment life. Requiring the contractor to follow the HVAC QI Specification will address these and other problems during installation and ensure that the installed system saves energy and money.

User Tips: Use Products More Efficiently

Proper maintenance of commercial central air conditioners and ASHPs is essential for effective and efficient operation. The Consortium for Energy Efficiency publishes the Guidelines for Energy-Efficient Commercial Unitary HVAC Systems that provides tips on properly operating and maintaining commercial ASHPs.

Environmental Tips

Refrigerants with ozone-destroying hydro chlorofluorocarbons (HCFCs) were commonly used in commercial central air conditioners and ASHPs until recently. When retiring light commercial heating and cooling equipment that contains HCFCs, the Clean Air Act requires that a certified technician recover the refrigerant on site and dispose of it in an environmentally friendly manner. It is a violation of federal law to dispose of HCFCs improperly.

 

Lawrence Berkeley National Laboratory provided supporting analysis for this acquisition guidance.