Action Plan for Variable Capacity Heat Pump Technology Contractor Unfamiliarity with VCHP Designer Unfamiliarity with VCHP Owner Unfamiliarity with VCHP Lack of Information to prioritize measures Uncertain Savings, Costs and Cost effectiveness Difficult to Develop Measures and Incentive Programs Codes and Standards Others Develop contractor qualifications and training Develop screening tool for cost effective opportunities Develop owner training on utility incentives and VCHP benefits Select and define highest priority measures Develop M&V approaches Develop measures Follow developing codes and standards Define the value proposition for the utilities, building owners and contractors Identify installations where performance could be monitored Develop commissioning requirements Develop program Evaluate whether the amount of VCHP refrigerant is an issue Document operation in lab tests Develop best practices to ensure energy saving Deliver program Quantify savings and costs over a specific baseline Develop designer training and outreach Follow developing IECC and other economizer code exceptions Follow developing IECC net zero requirements Manufacturer training Lessons learned from the previous projects Lab testing resources Existing owner training channels VCHP Research and resources Industry, professional and utility research and resources Codes and standards research and resources

HEATING, VENTILATION, AND AIR CONDITIONING Product/Service Area : HEATING, VENTILATION, AND AIR CONDITIONING VCHP Energy Efficiency Measure Development Roadmap Action Plan for Variable Capacity Heat Pump Technology: Contractor Unfamiliarity with VCHP Manufacturers training is difficult to access as nearest training centers are in Southern California Lack of contractor knowledge/experience Poor installation even by the trained contractors Technology misapplication can affect deployment Develop commissioning requirements Develop contractor qualifications and training Develop best practices to ensure energy savings Lessons learned from ASHRAE Headquarters VRF demonstration project Mira Vowles Investigate lessons learned from Oakridge residential DHP field testing Get early copies of ASHRAE 90.1 2010 VRF mechanical tables Mira Vowles Daikin provides online classes (http://www.daikinac.com/commercial/trainingOverview.asp?sec=training) Investigate lessons learned from Energy Trust New Buildings program has provided incentives for new community college buildings in Southern Oregon, installing Mitsubishi VRFs. M&V-completion date is Fall 2011 Erin Rowe Get early copies of ASHRAE VRF Handbook Chapter, which is scheduled to be available Spring of 2012 VRF contractor training in Irvine, California Mark Jerome Investigate savings and lessons learned from Corvallis Wild Life Preserve VRF system with HRV and economizers Mark Jerome Investigate lessons learned from Ecotope single-head DHP report (residential), including both field and lab testing. Contact Bob Davis or David Baylon at Ecotope. Bob Davis Investigate Cascade Energy Engineering VRF system; they have been monitoring system energy use for 5 years Mike Condiff Investigate new products and features, including US-centric controls, heat pump boilers, data center rack cooling, etc. Mike Condiff Collaborate with "Center for Built Environment" for post occupancy evaluation of comfort and behavior Paul Delaney

HEATING, VENTILATION, AND AIR CONDITIONING Product/Service Area : HEATING, VENTILATION, AND AIR CONDITIONING VCHP Energy Efficiency Measure Development Roadmap Action Plan for Variable Capacity Heat Pump Technology: Designer Unfamiliarity with VCHP Technology misapplication Proprietary equipment makes it hard to understand or commission Technology misapplication can affect deployment Lack of education in design and construction fields on technology Unfamiliar with controls Some applications are not appropriate for VRV e.g. large OSA with not many zones Engineers are designing systems around the technologies that they are more comfortable with VCHP does not fit into standard design process Not all applications of VCHP systems with simultaneous heating and cooling capability are cost effective Codes and standards were not available until recently Questionable cost effectiveness of economizers and ground coupled applications Develop designer training and outreach Lack of robust design and modeling tools Lack of performance data to validate manufacturer claims Get early copies of ASHRAE VRF Handbook Chapter, which is scheduled to be available Spring of 2012 Document operation in lab tests Develop best practices to ensure energy savings Develop screening tool for cost effective opportunities Daikin provides online classes (http://www.daikinac.com/commercial/trainingOverview.asp?sec=training) Develop commissioning requirements Lessons learned from ASHRAE Headquarters VRF demonstration project Mira Vowles Investigate lessons learned from Oakridge residential DHP field testing Get early copies of ASHRAE 90.1 2010 VRF mechanical tables Mira Vowles Investigate new products and features, including US-centric controls, heat pump boilers, data center rack cooling, etc. Mike Condiff EWEB commissioning case study Collaborate with "Center for Built Environment" for post occupancy evaluation of comfort and behavior Paul Delaney Investigate lessons learned from Energy Trust New Buildings program has provided incentives for new community college buildings in Southern Oregon, installing Mitsubishi VRFs. M&V-completion date is Fall 2011 Erin Rowe Get early copies of ASHRAE VRF Handbook Chapter, which is scheduled to be available Spring of 2012 TI Project 216 EPRI Lab Testing AHRI 1230 Mike Condiff Investigate savings and lessons learned from Corvallis Wild Life Preserve VRF system with HRV and economizers Mark Jerome Investigate lessons learned from Ecotope single-head DHP report (residential), including both field and lab testing. Contact Bob Davis or David Baylon at Ecotope. Bob Davis Investigate Cascade Energy Engineering VRF system; they have been monitoring system energy use for 5 years Mike Condiff NREL may be a resource for lab testing VRF systems Bruce Baccei

HEATING, VENTILATION, AND AIR CONDITIONING Product/Service Area : HEATING, VENTILATION, AND AIR CONDITIONING VCHP Energy Efficiency Measure Development Roadmap Action Plan for Variable Capacity Heat Pump Technology: Owner Unfamiliarity with VCHP Perception of risk, uncertain owner and user, occupant acceptance There are a lot of HVAC options in the market so this may not be perceived as the best option for a given application Unsure of system operation Owners are not familiar with the systems Lack of data and market knowledge to promote technology Uncertainty in the market about the benefits of the system over the other systems Develop best practices to ensure energy savings Develop owner training on utility incentives and VCHP benefits Lessons learned from ASHRAE Headquarters VRF demonstration project Mira Vowles Investigate lessons learned from Oakridge residential DHP field testing Get early copies of ASHRAE 90.1 2010 VRF mechanical tables Mira Vowles Investigate new products and features, including US-centric controls, heat pump boilers, data center rack cooling, etc. Mike Condiff Collaborate with "Center for Built Environment" for post occupancy evaluation of comfort and behavior Paul Delaney NEEA and BOMA owner training Investigate lessons learned from Energy Trust New Buildings program has provided incentives for new community college buildings in Southern Oregon, installing Mitsubishi VRFs. M&V-completion date is Fall 2011 Erin Rowe Get early copies of ASHRAE VRF Handbook Chapter, which is scheduled to be available Spring of 2012 Investigate savings and lessons learned from Corvallis Wild Life Preserve VRF system with HRV and economizers Mark Jerome Investigate lessons learned from Ecotope single-head DHP report (residential), including both field and lab testing. Contact Bob Davis or David Baylon at Ecotope. Bob Davis Investigate Cascade Energy Engineering VRF system; they have been monitoring system energy use for 5 years Mike Condiff

HEATING, VENTILATION, AND AIR CONDITIONING Product/Service Area : HEATING, VENTILATION, AND AIR CONDITIONING VCHP Energy Efficiency Measure Development Roadmap Action Plan for Variable Capacity Heat Pump Technology: Lack of Information to Prioritize Measures Uncertain cost effectiveness for some applications Hard to define baselines to make comparisons Select and define highest priority measures Identify when and where designers include electric resistance heat with VRF systems Quantify savings for replacing electric heat Preliminary screening of cost effectiveness of measures Understand engineering, Installation, ownership, utility barriers Investigate savings for baselines that do not have cooling Screen for where VRF HR systems are cost-effective Evaluate whether the amount of VCHP refrigerant is an issue Develop cost database Verify the significance of duct losses and feasibility of M&V Identify installations where performance could be monitored ASHRAE 90.1 2010 Appendix G Distribute and post EPRI VRF market studies, commissioned by BPA, when they are available Mira Vowles Mitsubishi office building analysis indicates 21% savings over A-A HP system (based on EnergyPro model) Nick Fernandez VCHP measure potential research and studies (Power plan)

HEATING, VENTILATION, AND AIR CONDITIONING Product/Service Area : HEATING, VENTILATION, AND AIR CONDITIONING VCHP Energy Efficiency Measure Development Roadmap Action Plan for Variable Capacity Heat Pump Technology: Uncertain Savings, Costs and Cost Effectiveness Uncertain savings Uncertain cost Unknown equipment life Incremental costs of VRF systems could be higher or lower than baseline systems Existing M&V approaches like energy modeling and deemed savings are not proven for VRF systems Skepticism about savings and real cost/benefit ratio Condensate piping and pumps are a costly oversight Utilities can not incent if incremental cost is negative Complex systems-hard to accurately measure and quantify savings Challenges metering commercial VCHP systems Quantify savings and costs over a specific baseline Develop high consensus M&V protocols Identify installations where performance could be monitored Select baseline Establish measure life Develop models to quantify savings for top priority measures Quantify non-energy benefits (O&M, gas savings, productivity due to improved comfort, etc.) to fully account for additional cost effective measures Quantify energy savings for night setback Quantify annual energy savings, benefits, costs Possible opportunity for field testing in a set of test bed commercial buildings that are being constructed in Richland, WA at PNNL's headquarters. Nick Fernandez TI Project 216 EPRI VRF HR Lab Testing Use AHRI 1230 equipment performance ratings (EER, COP, IEER) to estimate savings, including water cooled VRF system savings over air cooled VRF systems Mike Condiff Distribute and post EPRI VRF market studies, commissioned by BPA, when they are available Mira Vowles Share results from EPRI VRF&DHP EE Demo's Mira Vowles Mitsubishi office building analysis indicates 21% savings over A-A HP system (based on EnergyPro model) Nick Fernandez Document savings trade-off for VRF HR without economizers, Paul Doppler Jim Benville Investigate lessons learned from PNNL/NEEA work to disaggregate electrical loads, and use to determine actual VRF system energy use Nick Fernandez Investigate savings and lessons learned from Corvallis Wild Life Preserve VRF system with HRV and economizers Mark Jerome Investigate new products and features, including US-centric controls, heat pump boilers, data center rack cooling, etc. Mike Condiff Systems have been in Asia for over 25 years Mira Vowles Investigate lessons learned from BC Hydro VRF office building retrofit in Vancouver; combination of modeled/measures savings. Presented at Emerging Tech Conference in Sacramento in Nov 2010 Ron Domitrovic RTF VCHP Sub committee IPMVP Document M&V protocols from field tests

HEATING, VENTILATION, AND AIR CONDITIONING Product/Service Area : HEATING, VENTILATION, AND AIR CONDITIONING VCHP Energy Efficiency Measure Development Roadmap Action Plan for Variable Capacity Heat Pump Technology: Difficult to Develop Measures Uncertain cost Uncertain savings Unknown equipment life VRF may add cooling to uncooled baselines Higher first cost Complicated utility incentive process Develop equipment based measures Develop performance based measures Define the value proposition for the utilities, building owners and contractors Consider upstream program ($/ton), similar to SCE, based on energy models Describe energy savings time-of-occurrence and duration: Load Shape, Lifetime Quantify baseline EUIs for building types Develop measure specific M&V protocols Verify tenant billing system for M&V VRF Pilot to verify measure savings Develop simple savings calculators based on documented performance to be nimble, reduce reliance on energy models and lower program delivery cost Develop simple system start-up requirements for incentives Develop whole building savings estimation and M&V using billing data Evaluate cost effectiveness of measures Design program to minimize free ridership Document magnitude and longevity of the incremental electric energy savings. Determine sample size to quantify statistically significant savings Investigate incorporating VRF systems into office of the future pilot projects which have 30-50% savings goals. Contact Amy Cortese, with New Building Institute, amy@newbuildings.org Bruce Baccei Summarize lessons learned based on evaluation of SCE's upstream VRF incentive program Paul Delaney Possible opportunity for field testing in a set of test bed commercial buildings that are being constructed in Richland, WA at PNNL's headquarters. Nick Fernandez Use AHRI 1230 equipment performance ratings (EER, COP, IEER) to estimate savings, including water cooled VRF system savings over air cooled VRF systems Mike Condiff Field test M&V protocols Share results from EPRI VRF&DHP EE Demo's Mira Vowles RTF VCHP Sub committee IPMVP ASHRAE 90.1 2010 VRF mechanical tables Mira Vowles

HEATING, VENTILATION, AND AIR CONDITIONING Product/Service Area : HEATING, VENTILATION, AND AIR CONDITIONING VCHP Energy Efficiency Measure Development Roadmap Action Plan for Variable Capacity Heat Pump Technology: Difficult to Develop Incentive Programs Higher initial cost Usually adds cooling to a space that did not have cooling before Develop VCHP Incentives Develop equipment based measures Develop performance based measures Consider upstream program ($/ton), similar to SCE, based on energy models Quantify savings for baselines that do not have cooling Develop VRF measures, possibly whole building/pay for performance incentives Develop best practices and specifications for ERV design and operation Quantify baseline EUIs for building types Develop best practices to prevent electric resistance heat operation Evaluate unoccupied temperature set-back/set-up, DOAS control, electric resistance heat lock-out, low-ambient performance and optimal start capabilities -develop best practices and pay for performance Develop simple system start-up requirements for incentives Determine free ridership. Design program to minimize free ridership Summarize lessons learned based on evaluation of SCE's upstream VRF incentive program Paul Delaney

HEATING, VENTILATION, AND AIR CONDITIONING Product/Service Area : HEATING, VENTILATION, AND AIR CONDITIONING VCHP Energy Efficiency Measure Development Roadmap Action Plan for Variable Capacity Heat Pump Technology: Codes and Standards Costly to meet ventilation codes with VCHP systems Codes and standards are still being developed Safety concerns over refrigerant leaks Difficult to meet net zero Follow developing IECC and other economizer code exceptions Follow developing codes and standards Evaluate whether the amount of VCHP refrigerant is an issue Follow developing IECC net zero requirements Document savings trade-off for VRF HR without economizers, Paul Doppler Jim Benville IECC 2012 Get early copies of ASHRAE 90.1 2010 VRF mechanical tables Mira Vowles IECC 2012 ASHRAE refrigerant standard Get early copies of ASHRAE VRF Handbook Chapter, which is scheduled to be available Spring of 2012

HEATING, VENTILATION, AND AIR CONDITIONING Product/Service Area : HEATING, VENTILATION, AND AIR CONDITIONING VCHP Energy Efficiency Measure Development Roadmap Action Plan for Variable Capacity Heat Pump Technology: Others Cheaper install equals less commission for sales man Inertia of traditional (US) HVAC manufacturing design and contracting system Negative experiences e.g. ASHRAE HQ Issues Define the value proposition for the utilities, building owners and contractors Lessons learned from ASHRAE Headquarters VRF demonstration project Mira Vowles Investigate lessons learned from Oakridge residential DHP field testing Get early copies of ASHRAE VRF Handbook Chapter, which is scheduled to be available Spring of 2012 Investigate lessons learned from Energy Trust New Buildings program has provided incentives for new community college buildings in Southern Oregon, installing Mitsubishi VRFs. M&V-completion date is Fall 2011 Erin Rowe Investigate lessons learned from Ecotope single-head DHP report (residential), including both field and lab testing. Contact Bob Davis or David Baylon at Ecotope. Bob Davis Investigate lessons learned from BC Hydro VRF office building retrofit in Vancouver; combination of modeled/measures savings. Presented at Emerging Tech Conference in Sacramento in Nov 2010 Ron Domitrovic Investigate savings and lessons learned from Corvallis Wild Life Preserve VRF system with HRV and economizers Mark Jerome Share results from EPRI VRF&DHP EE Demo's Mira Vowles