1. Product/Service Area : HEATING, VENTILATION, AND AIR CONDITIONING VCHP Energy Efficiency Measure Development Roadmap Barriers Action Items Resources TI Research Needed Resource Available Proposed Action Item E3T Assessment Needed Barrier Identified Difficult to Develop Measures and Incentive Programs Uncertain Savings, Costs and Cost effectiveness Owner Unfamiliarity with VCHP Designer Unfamiliarity with VCHP Contractor Unfamiliarity with VCHP Codes and Standards Lack of Information to prioritize measures Develop contractor qualifications and training Develop commissioning requirements Document operation in lab tests Develop best practices to ensure energy saving Develop designer training and outreach Develop screening tool for cost effective opportunities Develop owner training on utility incentives and VCHP benefits Identify installations where performance could be monitored Select and define highest priority measures Develop M&V approaches Quantify savings and costs over a specific baseline Develop measures Develop program Deliver program Follow developing IECC and other economizer code exceptions Evaluate whether the amount of VCHP refrigerant is an issue Follow developing codes and standards Follow developing IECC net zero requirements Action Plan for Variable Capacity Heat Pump Technology Lessons learned from the previous projects Manufacturer training Lab testing resources Existing owner training channels VCHP Research and resources Industry, professional and utility research and resources Codes and standards research and resources Others Define the value proposition for the utilities, building owners and contractors

2. Product/Service Area : HEATING, VENTILATION, AND AIR CONDITIONING VCHP Energy Efficiency Measure Development Roadmap Barriers Action Items Resources TI Research Needed Resource Available Proposed Action Item E3T Assessment Needed Barrier Identified Manufacturers training is difficult to access as nearest training centers are in Southern California Product/Service Area : HEATING, VENTILATION, AND AIR CONDITIONING Action Plan for Variable Capacity Heat Pump Technology: Contractor Unfamiliarity with VCHP VCHP Energy Efficiency Measure Development Roadmap Lack of contractor knowledge/experience Poor installation even by the trained contractors Develop contractor qualifications and training Develop commissioning requirements VRF contractor training in Irvine, California Mark Jerome Get early copies of ASHRAE 90.1 2010 VRF mechanical tables Mira Vowles Daikin provides online classes (http://www.daikinac.com/comm ercial/trainingOverview.asp?sec =training) Develop best practices to ensure energy savings Get early copies of ASHRAE VRF Handbook Chapter, which is scheduled to be available Spring of 2012 Investigate Cascade Energy Engineering VRF system; they have been monitoring system energy use for 5 years Mike Condiff Lessons learned from ASHRAE Headquarters VRF demonstration project Mira Vowles Investigate lessons learned from Oakridge residential DHP field testing 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 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 Collaborate with "Center for Built Environment" for post occupancy evaluation of comfort and behavior Paul Delaney Investigate new products and features, including US-centric controls, heat pump boilers, data center rack cooling, etc. Mike Condiff Technology misapplication can affect deployment

3. Product/Service Area : HEATING, VENTILATION, AND AIR CONDITIONING VCHP Energy Efficiency Measure Development Roadmap Barriers Action Items Resources TI Research Needed Resource Available Proposed Action Item E3T Assessment Needed Barrier Identified Product/Service Area : HEATING, VENTILATION, AND AIR CONDITIONING Action Plan for Variable Capacity Heat Pump Technology: Designer Unfamiliarity with VCHP VCHP Energy Efficiency Measure Development Roadmap Proprietary equipment makes it hard to understand or commission Develop commissioning requirements Document operation in lab tests Lack of education in design and construction fields on technology VCHP does not fit into standard design process Unfamiliar with controls Get early copies of ASHRAE 90.1 2010 VRF mechanical tables Mira Vowles Engineers are designing systems around the technologies that they are more comfortable with Develop best practices to ensure energy savings Develop designer training and outreach Get early copies of ASHRAE VRF Handbook Chapter, which is scheduled to be available Spring of 2012 Investigate Cascade Energy Engineering VRF system; they have been monitoring system energy use for 5 years Mike Condiff Lessons learned from ASHRAE Headquarters VRF demonstration project Mira Vowles Investigate lessons learned from Oakridge residential DHP field testing 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 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 NREL may be a resource for lab testing VRF systems Bruce Baccei TI Project 216 EPRI Lab Testing Codes and standards were not available until recently Collaborate with "Center for Built Environment" for post occupancy evaluation of comfort and behavior Paul Delaney Investigate new products and features, including US-centric controls, heat pump boilers, data center rack cooling, etc. Mike Condiff EWEB commissioning case study AHRI 1230 Mike Condiff Daikin provides online classes (http://www.daikinac.com/comme rcial/trainingOverview.asp?sec=tr aining) Get early copies of ASHRAE VRF Handbook Chapter, which is scheduled to be available Spring of 2012 Technology misapplication can affect deployment Questionable cost effectiveness of economizers and ground coupled applications Develop screening tool for cost effective opportunities Lack of performance data to validate manufacturer claims Lack of robust design and modeling tools Not all applications of VCHP systems with simultaneous heating and cooling capability are cost effective Some applications are not appropriate for VRV e.g. large OSA with not many zones Technology misapplication

4. Product/Service Area : HEATING, VENTILATION, AND AIR CONDITIONING VCHP Energy Efficiency Measure Development Roadmap Barriers Action Items Resources TI Research Needed Resource Available Proposed Action Item E3T Assessment Needed Barrier Identified Uncertainty in the market about the benefits of the system over the other systems Unsure of system operation Product/Service Area : HEATING, VENTILATION, AND AIR CONDITIONING Action Plan for Variable Capacity Heat Pump Technology: Owner Unfamiliarity with VCHP VCHP Energy Efficiency Measure Development Roadmap Develop owner training on utility incentives and VCHP benefits Owners are not familiar with the systems Get early copies of ASHRAE 90.1 2010 VRF mechanical tables Mira Vowles Develop best practices to ensure energy savings Get early copies of ASHRAE VRF Handbook Chapter, which is scheduled to be available Spring of 2012 Investigate Cascade Energy Engineering VRF system; they have been monitoring system energy use for 5 years Mike Condiff Lessons learned from ASHRAE Headquarters VRF demonstration project Mira Vowles Investigate lessons learned from Oakridge residential DHP field testing 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 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 There are a lot of HVAC options in the market so this may not be perceived as the best option for a given application Lack of data and market knowledge to promote technology Perception of risk, uncertain owner and user, occupant acceptance Collaborate with "Center for Built Environment" for post occupancy evaluation of comfort and behavior Paul Delaney Investigate new products and features, including US-centric controls, heat pump boilers, data center rack cooling, etc. Mike Condiff NEEA and BOMA owner training

5. Product/Service Area : HEATING, VENTILATION, AND AIR CONDITIONING VCHP Energy Efficiency Measure Development Roadmap Barriers Action Items Resources TI Research Needed Resource Available Proposed Action Item E3T Assessment Needed Barrier Identified Product/Service Area : HEATING, VENTILATION, AND AIR CONDITIONING Action Plan for Variable Capacity Heat Pump Technology: Lack of Information to Prioritize Measures VCHP Energy Efficiency Measure Development Roadmap Select and define highest priority measures Identify when and where designers include electric resistance heat with VRF systems Screen for where VRF HR systems are cost-effective Quantify savings for replacing electric heat Understand engineering, Installation, ownership, utility barriers Hard to define baselines to make comparisons Evaluate whether the amount of VCHP refrigerant is an issue Preliminary screening of cost effectiveness of measures Identify installations where performance could be monitored Verify the significance of duct losses and feasibility of M&V Investigate savings for baselines that do not have cooling Distribute and post EPRI VRF market studies, commissioned by BPA, when they are available Mira Vowles Develop cost database Mitsubishi office building analysis indicates 21% savings over A-A HP system (based on EnergyPro model) Nick Fernandez ASHRAE 90.1 2010 Appendix G Uncertain cost effectiveness for some applications VCHP measure potential research and studies (Power plan)

6. Product/Service Area : HEATING, VENTILATION, AND AIR CONDITIONING VCHP Energy Efficiency Measure Development Roadmap Barriers Action Items Resources TI Research Needed Resource Available Proposed Action Item E3T Assessment Needed Barrier Identified Product/Service Area : HEATING, VENTILATION, AND AIR CONDITIONING Action Plan for Variable Capacity Heat Pump Technology: Uncertain Savings, Costs and Cost Effectiveness VCHP Energy Efficiency Measure Development Roadmap Quantify savings and costs over a specific baseline Select baseline Quantify annual energy savings, benefits, costs Develop models to quantify savings for top priority measures Quantify energy savings for night setback Quantify non-energy benefits (O&M, gas savings, productivity due to improved comfort, etc.) to fully account for additional cost effective measures Uncertain savings Establish measure life 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 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 savings and lessons learned from Corvallis Wild Life Preserve VRF system with HRV and economizers Mark Jerome 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 Skepticism about savings and real cost/benefit ratio Investigate lessons learned from PNNL/NEEA work to disaggregate electrical loads, and use to determine actual VRF system energy use Nick Fernandez Uncertain cost Unknown equipment life Distribute and post EPRI VRF market studies, commissioned by BPA, when they are available Mira Vowles Investigate new products and features, including US-centric controls, heat pump boilers, data center rack cooling, etc. Mike Condiff Condensate piping and pumps are a costly oversight Incremental costs of VRF systems could be higher or lower than baseline systems Utilities can not incent if incremental cost is negative Systems have been in Asia for over 25 years Mira Vowles Identify installations where performance could be monitored Existing M&V approaches like energy modeling and deemed savings are not proven for VRF systems Complex systems-hard to accurately measure and quantify savings Develop high consensus M&V protocols Share results from EPRI VRF&DHP EE Demo's Mira Vowles RTF VCHP Sub committee IPMVP Document M&V protocols from field tests 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 Challenges metering commercial VCHP systems TI Project 216 EPRI VRF HR Lab Testing

7. Product/Service Area : HEATING, VENTILATION, AND AIR CONDITIONING VCHP Energy Efficiency Measure Development Roadmap Barriers Action Items Resources TI Research Needed Resource Available Proposed Action Item E3T Assessment Needed Barrier Identified Product/Service Area : HEATING, VENTILATION, AND AIR CONDITIONING Action Plan for Variable Capacity Heat Pump Technology: Difficult to Develop Measures VCHP Energy Efficiency Measure Development Roadmap Uncertain savings Document magnitude and longevity of the incremental electric energy savings. Develop simple savings calculators based on documented performance to be nimble, reduce reliance on energy models and lower program delivery cost Evaluate cost effectiveness of measures Develop whole building savings estimation and M&V using billing data Verify tenant billing system for M&V Determine sample size to quantify statistically significant savings Develop equipment based measures Uncertain cost Field test M&V protocols Summarize lessons learned based on evaluation of SCE's upstream VRF incentive program Paul Delaney ASHRAE 90.1 2010 VRF mechanical tables Mira Vowles Unknown equipment life Describe energy savings time-of- occurrence and duration: Load Shape, Lifetime 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 Develop performance based measures Consider upstream program ($/ton), similar to SCE, based on energy models Quantify baseline EUIs for building types Higher first cost VRF may add cooling to uncooled baselines Design program to minimize free ridership Develop simple system start-up requirements for incentives Develop measure specific M&V protocols Share results from EPRI VRF&DHP EE Demo's Mira Vowles RTF VCHP Sub committee IPMVP 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 VRF Pilot to verify measure 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 Complicated utility incentive process Define the value proposition for the utilities, building owners and contractors

8. Product/Service Area : HEATING, VENTILATION, AND AIR CONDITIONING VCHP Energy Efficiency Measure Development Roadmap Barriers Action Items Resources TI Research Needed Resource Available Proposed Action Item E3T Assessment Needed Barrier Identified Product/Service Area : HEATING, VENTILATION, AND AIR CONDITIONING Action Plan for Variable Capacity Heat Pump Technology: Difficult to Develop Incentive Programs VCHP Energy Efficiency Measure Development Roadmap Quantify savings for baselines that do not have cooling Develop VRF measures, possibly whole building/pay for performance incentives Quantify baseline EUIs for building types Develop best practices to prevent electric resistance heat operation Develop best practices and specifications for ERV design and 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 Higher initial cost Usually adds cooling to a space that did not have cooling before Summarize lessons learned based on evaluation of SCE's upstream VRF incentive program Paul Delaney Determine free ridership. Design program to minimize free ridership Develop simple system start- up requirements for incentives Develop equipment based measures Develop performance based measures Consider upstream program ($/ton), similar to SCE, based on energy models Develop VCHP Incentives

9. Product/Service Area : HEATING, VENTILATION, AND AIR CONDITIONING VCHP Energy Efficiency Measure Development Roadmap Barriers Action Items Resources TI Research Needed Resource Available Proposed Action Item E3T Assessment Needed Barrier Identified Product/Service Area : HEATING, VENTILATION, AND AIR CONDITIONING Action Plan for Variable Capacity Heat Pump Technology: Codes and Standards VCHP Energy Efficiency Measure Development Roadmap Costly to meet ventilation codes with VCHP systems Follow developing IECC and other economizer code exceptions Evaluate whether the amount of VCHP refrigerant is an issue Safety concerns over refrigerant leaks ASHRAE refrigerant standard Codes and standards are still being developed IECC 2012 Get early copies of ASHRAE 90.1 2010 VRF mechanical tables Mira Vowles Get early copies of ASHRAE VRF Handbook Chapter, which is scheduled to be available Spring of 2012 Follow developing codes and standards Document savings trade-off for VRF HR without economizers, Paul Doppler Jim Benville IECC 2012 Difficult to meet net zero Follow developing IECC net zero requirements

10. Product/Service Area : HEATING, VENTILATION, AND AIR CONDITIONING VCHP Energy Efficiency Measure Development Roadmap Barriers Action Items Resources TI Research Needed Resource Available Proposed Action Item E3T Assessment Needed Barrier Identified Product/Service Area : HEATING, VENTILATION, AND AIR CONDITIONING Action Plan for Variable Capacity Heat Pump Technology: Others VCHP Energy Efficiency Measure Development Roadmap Inertia of traditional (US) HVAC manufacturing design and contracting system Define the value proposition for the utilities, building owners and contractors Cheaper install equals less commission for sales man Negative experiences e.g. ASHRAE HQ Issues Lessons learned from ASHRAE Headquarters VRF demonstration project Mira Vowles Investigate lessons learned from Oakridge residential DHP field testing 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 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 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 Share results from EPRI VRF&DHP EE Demo's Mira Vowles Get early copies of ASHRAE VRF Handbook Chapter, which is scheduled to be available Spring of 2012