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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.
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 | |||
---|---|---|---|
Performance | Best Available | ENERGY STAR | Less Efficient |
EER | 12.5 | 12.0 | 10.8 |
Annual Energy Use (kWh) | 21,360 | 22,250 | 24,722 |
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 | ====== |
PERFORMANCE COLUMN
Energy Efficiency Ratio (EER): The ratio of the cooling capacity to the power input.
Annual Energy Use: Based on the test method referenced in 10 Code of Federal Regulations (CFR) 430, Subpart B, Appendix M.
Annual Energy Cost: Calculated based on an assumed electricity price of 9.9¢/kWh, which is the average electricity price at federal facilities.
Lifetime Energy Cost: Future utility price trends and a 3% discount rate are from Energy Price Indices and Discount Factors for Life-Cycle Cost Analysis – 2024: Annual Supplement to NIST Handbook 135 and NBS Special Publication 709 (NISTIR 85-3273-39).
Lifetime Cost Savings: The difference between the lifetime energy cost of the less efficient model and the lifetime energy cost of the ENERGY STAR model or best available model.
BEST AVAILABLE MODEL COLUMN
Calculated based on the September 2024 ENERGY STAR Qualified Products List. More efficient models may be introduced to the market after FEMP's acquisition guidance is posted.
ENERGY STAR MODEL COLUMN
Calculated based on September 2024 ENERGY STAR efficiency levels. Federal agencies must purchase products that meet or exceed ENERGY STAR efficiency levels.
LESS EFFICIENT MODEL COLUMN
Calculated based on typical products used in non-federal applications.
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

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

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.
Agencies may claim an exception to the Clean Energy Rule if no alternative to a fossil-fuel powered product is found that meets the technical needs and mission requirements of the agency. If an agency wishes to obtain further guidance, request technical assistance or petition for downward adjustment on the fossil fuel reduction target from FEMP, they may do so by contacting the Clean Energy Rule team and following the petition process. Contracting officers should still aim to purchase products that meet the ENERGY STAR or FEMP-designated requirements and minimize emissions as much as possible.
Products meeting ENERGY STAR or FEMP-designated efficiency requirements may not be life cycle cost-effective in certain low-use applications or in locations with very low rates for electricity or natural gas. However, for most applications, purchasers will find that energy-efficient products have the lowest life cycle cost.
Agencies may claim an exception to federal purchasing requirements through a written finding that no FEMP-designated or ENERGY STAR-qualified product is available to meet functional requirements, or that no such product is life cycle cost-effective for the specific application. Learn more about federal product purchasing requirements.
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).
Under the Multiple Award Schedule program, GSA issues long-term governmentwide contracts that provide access to commercial products, services, and solutions at pre-negotiated pricing.
Federal buyers can use the GSA Multiple Award Schedules to find a vendor and pull up their latest price list. Alternatively, buyers can search for a specific product in GSA Advantage! or enter the product in GSA eBuy to get a quote from multiple vendors. Before purchasing a product through one of these channels or a preferred vendor, buyers should make sure the product meets the FEMP or ENERGY STAR efficiency requirements. For solicitations, buyers should include the relevant FAR clause and incorporate energy efficiency into the contract language and evaluation criteria to ensure compliance with the federal purchasing requirements.
TAKE ACTION
- Review the Multiple Award Schedule program.
- Visit the GSA Advantage! online shopping network and associated acquisition tool GSA eBuy.
- Learn about efficient, healthy buildings and environmentally responsible purchasing from the Sustainable Facilities (SF) Tool.
- Review the Multiple Award Schedule program.
DLA offers products through the Defense Supply Center Philadelphia and online through FedMall (formerly DOD EMALL).
TAKE ACTION
- Visit FedMall.
Products sold through DLA are codified with a 13-digit National Stock Number (NSN) and, in some cases, a two-letter Environmental Attribute Code (ENAC). The ENAC identifies items that have positive environmental characteristics and meet standards set by an approved third party, such as FEMP and ENERGY STAR.
USDA's BioPreferred Program was created to increase the purchase and use of biobased products. Federal law, the FAR, and Presidential Executive Orders direct that all federal agencies and their contractors purchase biobased products in categories identified by USDA.
TAKE ACTION
EPA offers several resources for choosing which products to buy. The Environmentally Preferable Purchasing Program helps federal government purchasers utilize private sector standards and ecolabels to identify and procure environmentally preferable products and services.
TAKE ACTION
- Learn more about the Environmentally Preferable Purchasing Program.
- Review federal purchasing specifications, standards, and ecolabels.
- Get an overview of the Electronic Product Environmental Assessment Tool (EPEAT) and procuring environmentally preferable electronic products.
- Learn more about the Environmentally Preferable Purchasing Program.
UNSPSC is a worldwide classification system for e-commerce. It contains more than 50,000 commodities, including many used in the federal sector, each with a unique eight-digit, four-level identification code. Manufacturers and vendors are beginning to adopt the UNSPSC classification convention and electronic procurement systems are beginning to include UNSPSC tracking in their software packages. UNSPSCs can help the federal acquisition community identify product categories covered by sustainable acquisition requirements, track purchases of products within those categories, and report on progress toward meeting sustainable acquisition goals.
TAKE ACTION
- Review FEMP's table of product codes for ENERGY STAR and FEMP-designated covered product categories.
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.