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Payne Product BulletinSubject:Department:Date:Contact:Related Bulletins:Non-Condensing (80’s) Gas Furnace FER Launch (Dealers)Product MarketingMarch 8, 2019Bulletin Number: PA-103-19-02Ryan RouseModel Family:All non-condensingNonegas furnacesFER (Fan Energy Rating) Program:Non-Condensing (80%) Gas Furnace LaunchWith a manufacturing cutoff date of July 3, 2019, FER compliance is quickly approaching and we aregearing up to launch our FER compliant lineup. Read below for more details.IntroductionOver the last couple of years, the Payne team has been talking with you about the Department ofEnergy’s (DOE) FER regulation and the impact FER will have on gas furnaces. The time is now to startpreparing for the changes coming in the first half of 2019. This bulletin will provide you with theinformation you need to plan for a successful gas furnace FER transition; including key dates, modelnumber changes, and support materials.Although this bulletin is focused on the gas furnace FER transition, all YAC and Hybrid Heat residentialSPP products are also impacted by FER. There will be a separate bulletin on the SPP transition.Bulletin Index Introduction (Page 1) FER Overview (Pages 2,3) Model Family Guide (Page 4): Comparing pre-FER and post-FER models Product Launch Timeline (Page 4): Detailed dates for phase out of current product and phasein of FER compliant product Support Materials Timeline (Page 5): When you to expect new marketing materials FER Lineup (Page 6): Summary of the FER lineup and model family features Payne Heating and Cooling Systems 20191

Payne Product Bulletin FER New Features and Benefits (Pages 6, 7): Summary of the additional benefits offeredthrough the FER launch Updated Nomenclature (Page 8) Door Color Changes (Page 8) SKU Cross-Reference (Page 9): SKU level guide to the pre and post FER models.FER OverviewIn 2014, the DOE established the first national efficiency standard targeting a specific productcomponent – residential furnace fans. The new Fan Energy Rating (FER) formula specifies a maximumenergy rating that varies based on the airflow provided by the furnace fan. FER is expressed in terms ofpower consumption in watts (W) per delivered airflow (1000 cfm), and incorporates energy consumptionin three different modes: heating, cooling, and constant fan.For gas heating products, the new standards target a significant 46 percent watt reduction over atypical permanent split capacitor (PSC) furnace blower motor. With this level of watt reduction, furnaceswith PSC motors will not comply with FER, requiring electronically commutated motors (ECM) in all gasfurnaces. The FER value is different for each furnace model, requiring all current ECM models to bere-designed for FER compliance. FER only applies to the furnace blower motor, inducer motors are notimpacted by FER and PSC inducer motors will remain in our product lineups.FER compliance is based on a manufacture date of July 3, 2019. This means Payne can no longermanufacture non-FER compliant furnaces (including PSC furnaces) after July 2, 2019. Furnaces withPSC motors and pre-FER ECM models can be installed any time after the regulation takes effect, aslong as the furnace is manufactured before July 3, 2019.In late 2018, the DOE began evaluating a petition to consider a new test procedure that wouldconsolidate FER, AFUE, and stand by power watt tests into one test procedure. At the start of thisinvestigation, the DOE issued a non-enforcement statement communicating they would not enforceFER while investigating the new test procedure. The Department of Energy (DOE) has since rescindedtheir prior non-enforcement statement, which means DOE will enforce FER on the originally plannedJuly 3, 2019 date of manufacture. Payne Heating and Cooling Systems 20192

Payne Product BulletinThe Heating, Refrigeration and Air Conditioning Institute of Canada (HRAI) has adopted Amendment14, which outlines the same FER requirements as the DOE with a July 3, 2019 effective date.As a result of FER, the following will occur: PSC blower motors in gas furnaces will not meet the FER requirement. Therefore gas furnaceswith PSC motors will become obsolete. Furnaces with fixed speeds constant torque (FCT) ECM blower motors (five speed) will becomethe new entry tier product. There is no installation date limitation for furnaces built prior to July 3rd, 2019. PSC blowermotors will remain available as service parts. All furnace model numbers and product tiers will change (further detail below). Payne Heating and Cooling Systems 20193

Payne Product BulletinModel Family GuideThe chart below shows a side by side comparison of the current Payne non-condensing gas furnacemodels with the new FER compliant models. Yellow indicates a change in the Post FER lineup.VCT Variable Speed Constant Torque ECMFCT Fixed Speeds Constant Torque ECMPSC Permanent Split CapacitorProduct Launch TimelineDepending on distributor inventory, you could see the following new FER models available as early asthe dates outlined below. PG80VTL: June – July 2019 PG80ESA(L)A: August 2019oCurrent models PG8JEB and PG8M(J)AA will remain available through July Payne Heating and Cooling Systems 20194

Payne Product BulletinSupport Materials TimelineAs part of the FER initiative, the Payne team is taking the opportunity to enhance and develop newmarketing support materials and training to aid you in your selling efforts. Below is summary of whatyou can expect along with key dates for launch.January February March AprilMayLaunch Bulletin Ratings Posted* FER BrochureTechnical LiteratureAvailable on HVACpartnersHVACpartners UpdatesAccessories BulletinFirst Orders Accepted(FER Products)Consumer LiteratureAvailable on HVACpartnersConsumer Website Updates *Cooling system ratings are anticipated to be similar to the equivalent current ECM models. Thecooling system ratings are expected to be posted to the AHRI directory in phases throughout March,April, and May 2019. Payne Heating and Cooling Systems 20195

Payne Product BulletinFER LineupBelow shows the complete lineup of FER compliant non-condensing furnacesFER New Features and BenefitsAs a result of FER, there will be a number of new exciting features and benefits added to the Payne non-condensing gas furnace portfolio. Below are some of the key highlights:1. Upgraded models in the entry model family.oBefore, all entry tier products had PSC motors. These have been replaced withFixed Speeds Constant Torque (FCT) ECM motors.oImproves motor electrical efficiency (from 60 percent to 80-85 percent) FER compliance SEER boostoProvides five motor speed options (select through taps)oReduces airflow loss at high static pressure2. Five new model sizes, developed to reduce the required heating size needed to obtainSEER ratings for each cooling tonnage. Payne Heating and Cooling Systems 20196

Payne Product BulletinooNew Sizes: 30k BTU in a 14” casing (coming in Q4 2019) 45k BTU in a 17” casing 70k BTU in a 21” casing 90k BTU in a 24” casing 110k BTU in a 24” casingReduces heating oversizing at 16 SEER and 13 EER: For example, before thesemodels were available a 90k BTU furnace was required to achieve 16 SEER and 13EER ratings with a 4 ton AC unit. Now these ratings can be met with the new 70kBTU furnace in a 21” casing.oThese models also provide improved flush coil options, which lowers labor andmaterial costs, improves aesthetics, and reduces the chance of coils freezing.oIn 2018, most of these models were added to the PG8JEB model family. With theFER launch, you will see all of these new model sizes in the PG80ESN(L)A, whileselect models will be added to PG80VTLA family. Check the SKU details section atthe end of this bulletin for more information.3. Improved nomenclature and new door color to match the 90s color scheme, see below fordetails. Payne Heating and Cooling Systems 20197

Payne Product BulletinUpdated NomenclatureOne of the many positive changes taking place through the FER launch is nomenclature, all the currentnon-condensing and condensing gas furnace model numbers will change. This provides addedidentifiers in the furnace model numbers including the heating stages, cabinet width, and motor type.Below is an example of the updated nomenclature for Payne gas furnaces:Updated Door ColorAnother positive change is the door color. The grey color on the doors will change to match the tancabinet, in an effort to mirror the same strategy as the condensing gas furnaces.You will start seeing this on current products in January 2019. Payne Heating and Cooling Systems 20198

Payne Product BulletinSKU Cross-ReferenceThe chart below outlines each individual SKU both current and post-FER based on their tier position.Low NOxFirstPG8JVB to PG80VTLAAvailableCasing (in)CurrentPost-FER14.2PG8JVB036045 PG80VTLA36045A14.2PG80VTLA36070AJune – July201917.5PG8JVB048070 80VTLA60090CJune – July21PG8JVB066110 PG80VTLA66110C201924.5PG8JVB066135 PG80VTLA66135DStandard NOxLow NOxPG8MAA and PG8JEB to PG80ESAAPG8JAA and PG8JEB to 4514.2PG8JAA024045August PG8JAA036045 PG8JEB036045 PG80ESLA36045AAugust 201917.5PG8JEB042045PG80ESAA36045B17.5PG8JEB042045 st PG80ESLA36070AAugust 201917.5PG8JEB036070PG80ESAA36070B17.5PG8JEB036070 EB048070August 201921PG8JEB054070PG80ESAA48070C21PG8JEB054070 PG80ESLA48070CAugust PG8JAA042090 PG8JEB042090 PG80ESLA42090BAugust AA048090 PG8JEB048090 PG80ESLA48090CAugust EB060090 PG80ESLA60090CAugust 201924.5PG8JEB066090PG80ESAA60090D24.5PG8JEB066090 8MAA04811021PG8JAA048110August AA066110 PG8JEB060110 PG80ESLA60110CAugust 201924.5PG8JEB066110PG80ESAA60110D24.5PG8JEB066110 PG80ESLA60110D21PG8MAA04813521PG8JAA048135August PG8JAA066135 PG8JEB060135 PG80ESLA60135DAugust If you are buying PG8M(J)AA and PG8JEB today, you may decide to move that volume to PG80ESA(L)A. PG80ESA(L)A has similar performance and featuresto the pre-FER PG8JEB, with the exception of PG80ESA(L)A not having insulation in the blower compartment.FirstAvailableQ4-2019As we move into 2019 the Payne team will continue to provide the latest updates on the FERtransition. Please contact your distributor or territory manager with any questions.Thank you for your continued support! Payne Heating and Cooling Systems 20199

As we move into 2019 the Payne team will continue to provide the latest updates on the FER transition. Please contact your distributor or territory manager with any questions. . PG8MAA and PG8JEB to PG80ESAA PG8JAA and PG8JEB to PG80ESLA Casing Current Post-FER Q4-2019 14.2 PG80ESAA30030A 14.2 14.2 PG8MAA024045 14.2 PG8JAA024045 August 2019 .