[Federal Register Volume 73, Number 250 (Tuesday, December 30, 2008)]
[Proposed Rules]
[Pages 79723-79726]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-30985]
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Proposed Rules
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.
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Federal Register / Vol. 73, No. 250 / Tuesday, December 30, 2008 /
Proposed Rules
[[Page 79723]]
DEPARTMENT OF ENERGY
10 CFR Part 431
[Docket No. EERE-2007-BT-STD-0007]
RIN 1904-AB70
Energy Conservation Standards for Small Electric Motors: Public
Meeting and Availability of the Preliminary Technical Support Document
AGENCY: Office of Energy Efficiency and Renewable Energy, Department of
Energy.
ACTION: Notice of public meeting and availability of preliminary
technical support document.
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SUMMARY: The Department of Energy (DOE) will hold an informal public
meeting to discuss and receive comments on the equipment classes that
DOE plans to analyze for purposes of establishing energy conservation
standards for small electric motors; the analytical framework, models,
and tools that DOE is using to evaluate standards for these products;
the results of preliminary analyses performed by DOE for these
products; and potential energy conservation standard levels derived
from these analyses that DOE could consider for these products. Also,
DOE encourages written comments on these subjects. To inform
stakeholders and facilitate this process, DOE has prepared an agenda, a
preliminary Technical Support Document (preliminary TSD), and briefing
materials, which are available at: http://www1.eere.energy.gov/buildings/appliance_standards/commercial/small_electric_motors.html.
DATES: DOE will hold a public meeting on Friday, January 30, 2009, from
9 a.m. to 5 p.m. in Washington, DC. Any person requesting to speak at
the public meeting should submit such request, along with an electronic
copy of the statement to be given at the public meeting, before 4 p.m.,
Friday, January 23, 2009. Written comments are welcome, especially
following the public meeting, and should be submitted March 2, 2009.
ADDRESSES: The public meeting will be held at the U.S. Department of
Energy, Forrestal Building, Room 1E-245, 1000 Independence Avenue, SW.,
Washington, DC 20585-0121. Please note that foreign nationals
participating in the public meeting are subject to advance security
screening procedures. If a foreign national wishes to participate in
the public meeting, please inform DOE of this fact as soon as possible
by contacting Ms. Brenda Edwards at (202) 586-2945 so that the
necessary procedures can be completed. Interested persons may submit
comments, identified by docket number EERE-2007-BT-STD-0007, by any of
the following methods:
Federal eRulemaking Portal: http://www.regulations.gov.
Follow the instructions for submitting comments.
E-mail: [email protected]. Include EERE-2007-BT-STD-0007 in the subject
line of the message.
Postal Mail: Ms. Brenda Edwards, U.S. Department of
Energy, Building Technologies Program, Mailstop EE-2J, Public Meeting
for Small Electric Motors, EERE-2007-BT-STD-0007, 1000 Independence
Avenue, SW., Washington, DC 20585-0121. Telephone (202) 586-2945.
Please submit one signed paper original.
Hand Delivery/Courier: Ms. Brenda Edwards, U.S. Department
of Energy, Building Technologies Program, Sixth Floor, 950 L'Enfant
Plaza, SW., Washington, DC 20024. Telephone (202) 586-2945. Please
submit one signed paper original.
Instructions: All submissions received must include the agency name
and docket number.
Docket: For access to the docket to read background documents or a
copy of the transcript of the public meeting or comments received, go
to the U.S. Department of Energy, Sixth Floor, 950 L'Enfant Plaza, SW.,
Washington, DC 20024, (202) 586-2945, between 9 a.m. and 4 p.m., Monday
through Friday, except Federal holidays. Please call Ms. Brenda Edwards
at (202) 586-2945 for additional information regarding visiting the
Resource Room.
FOR FURTHER INFORMATION CONTACT: Direct requests for additional
information to Mr. James Raba, U.S. Department of Energy, Office of
Energy Efficiency and Renewable Energy, Building Technologies, EE-2J,
1000 Independence Avenue, SW., Washington, DC 20585-0121, (202) 586-
8654. E-mail: [email protected]. In the Office of General Counsel,
contact Mr. Michael Kido, U.S. Department of Energy, Office of General
Counsel, GC-72, 1000 Independence Avenue, SW., Washington, DC 20585,
(202) 586-8145. E-mail: [email protected].
SUPPLEMENTARY INFORMATION:
A. Statutory Authority
Part A of Title III of the Energy Policy and Conservation Act (42
U.S.C. 6291 et seq.) (EPCA) established the Energy Conservation Program
for Consumer Products Other than Automobiles. Amendments expanded Title
III of EPCA to include certain commercial and industrial equipment,
including small electric motors. (42 U.S.C. 6311 et seq.) In
particular, the Energy Policy Act of 1992, Public Law 102-486 (EPACT
1992) amended EPCA to direct DOE to prescribe energy conservation
standards for those small electric motors for which the Secretary
determines that standards ``would be technologically feasible and
economically justified, and would result in significant energy
savings.'' (42 U.S.C. 6317(b)(1)).
Before DOE prescribes any standard for small electric motors,
however, it must first solicit comments on a proposed standard.
Moreover, DOE will design each standard for these products to: (1)
Achieve the maximum improvement in energy efficiency that is
technologically feasible and economically justified, and (2) result in
significant conservation of energy. (42 U.S.C. 6295(o)(2)(A) and
(o)(3), 42 U.S.C. 6316(a), and 42 U.S.C. 6317(b)(1) and (c)). To
determine whether a proposed standard is economically justified, DOE
must, after receiving comments on the proposed standard, determine
whether the benefits of the standard exceed its burdens to the greatest
extent practicable, weighing the following seven factors:
1. The economic impact of the standard on manufacturers and
consumers of products subject to the standard;
2. The savings in operating costs throughout the estimated average
life of the covered products in the type (or class) compared to any
increase in the price, initial charges, or maintenance expenses for the
covered products
[[Page 79724]]
which are likely to result from the imposition of the standard;
3. The total projected amount of energy savings likely to result
directly from the imposition of the standard;
4. Any lessening of the utility or the performance of the covered
products likely to result from the imposition of the standard;
5. The impact of any lessening of competition, as determined in
writing by the Attorney General, that is likely to result from the
imposition of the standard;
6. The need for national energy conservation; and
7. Other factors the Secretary [of Energy] considers relevant. (42
U.S.C. 6295(o)(2)(B)(i)).
Prior to proposing a standard, DOE typically seeks public input on
the analytical framework, models, and tools that will be used to
evaluate standards; the results of preliminary analyses; and potential
energy conservation standard levels derived from these analyses. DOE is
publishing this document to announce the availability of the
preliminary technical support document (preliminary TSD), which detail
the preliminary analyses, discuss the comments on the Framework
document, and summarize the preliminary results. In addition, DOE is
announcing a public meeting to solicit feedback from interested parties
on its analytical framework, models, and preliminary results.
B. History of Standards Rulemaking for Small Electric Motors
1. Background
As indicated above, EPACT 1992 amended EPCA to specifically address
standards for small electric motors. The amendment requires DOE to
prescribe test procedures and then standards for those small electric
motors for which DOE has determined that standards would be
technologically feasible and economically justified and would result in
significant energy savings. (42 U.S.C. 6317(b)(1)). Pursuant to this
provision, on July 10, 2006, the Secretary of Energy issued the
following determination:
Based on its analysis of the information now available, the
Department [of Energy] has determined that energy conservation
standards for certain small electric motors appear to be
technologically feasible and economically justified, and are likely
to result in significant energy savings. Consequently, the
Department [of Energy] will initiate the development of energy
efficiency test procedures and standards for certain small electric
motors.
71 FR 38799 and 38807 (July 10, 2006).
In its determination analysis, DOE uses the phrase ``certain small
electric motors'' to show where DOE is referring to motors for which it
has made a positive determination. In this way, DOE is establishing
that the Secretary of Energy has determined that energy conservation
standards appear to be justified for capacitor-start and polyphase
small electric motors.
The Secretary's determination was based in part on DOE's draft
report, ``Analysis of Energy Conservation Standards for Small Electric
Motors,'' which estimated the likely range of energy savings and
economic benefits that would result from energy conservation standards
for small electric motors. DOE made this report available for comment
in June 2003 at http://www.eere.energy.gov/buildings/appliance_standards/commercial/small_electric_motors.html.
2. Current Rulemaking Process
As a result of the Secretary's positive determination, DOE prepared
and published a notice announcing the availability of the framework
document, ``Energy Conservation Standards Rulemaking Framework Document
for Small Electric Motors,'' and a public meeting to discuss the
proposed analytical framework for the rulemaking. 72 FR 44990 (August
10, 2007). DOE also posted the framework document on its Web site
describing the procedural and analytical approaches DOE anticipated
using to evaluate the establishment of energy conservation standards
for small electric motors. This document is available at http://www.eere.energy.gov/buildings/appliance_standards/commercial/pdfs/small_motors_framework_073007.pdf. DOE held a public meeting on
September 13, 2007, to describe the various rulemaking analyses DOE
would conduct, such as the engineering analysis, the life-cycle cost
(LCC) and payback period (PBP) analyses, and the national impact
analysis (NIA); the methods for conducting them; and the relationship
among the various analyses. Manufacturers, trade associations, and
environmental advocates attended the meeting. The participants
discussed eight major issues: The scope of covered small electric
motors, definitions, test procedures, horsepower and kilowatt
equivalency, DOE's engineering analysis, life-cycle costs, efficiency
levels, and energy savings.
DOE developed two economic spreadsheets for analyzing the economic
impacts of standard levels-one that calculates LCC and PBP, and one
that calculates national impacts.\1\ DOE prepared an LCC and PBP
spreadsheet that calculates results for each of the representative
units analyzed. The spreadsheet includes product efficiency data that
allows users to determine LCC savings and PBPs based on average values.
The spreadsheets also can be combined with Crystal Ball (a commercially
available software program) to generate a Monte Carlo simulation, which
incorporates uncertainty and variability considerations. The second
economic spreadsheet, the national impact analysis spreadsheet,
calculates the impacts of candidate standard levels on shipments and
the national energy savings (NES) and net present value (NPV) at
various standard levels. There is one national impact analysis
spreadsheet for all small electric motors. DOE has posted all of these
economic spreadsheets on its Web site for review and comment by
interested parties.
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\1\ For the notice of proposed rulemaking, DOE will also develop
an economic spreadsheet that will evaluate the financial impacts on
small electric motors that may result from a standard level.
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Comments received since publication of the framework document have
helped DOE identify and resolve issues involved in the preliminary
analyses. Chapter 2 of the preliminary TSD, available at the Web link
provided in the SUMMARY section of this notice, summarizes and
addresses the comments received in response to the framework document.
C. Summary of the Analyses Performed by DOE
For small electric motors currently under consideration, DOE
conducted in-depth technical analyses in the following areas: (1)
Engineering, (2) energy-use characterization, (3) markups to determine
product price, (4) life-cycle cost (LCC) and payback period (PBP)
analyses, and (5) national impact analysis (NIA). These analyses
resulted in a preliminary TSD that presents the methodology and results
of each of these analyses. The preliminary TSD is available at the Web
address given in the SUMMARY section of this notice. The analyses are
described in more detail below.
DOE also conducted several other analyses that either support the
five major analyses or are preliminary analyses that will be expanded
in the notice of proposed rulemaking (NOPR).\2\
[[Page 79725]]
These analyses include the market and technology assessment, the
screening analysis, which contributes to the engineering analysis, and
the shipments analysis, which contributes to the NIA. In addition to
these analyses, DOE has begun some preliminary work on the manufacturer
impact analysis and identified the methods to be used for the LCC
subgroup analysis, the environmental assessment, the employment
analysis, the regulatory impact analysis, and the utility impact
analysis. DOE will expand on these analyses in the NOPR.
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\2\ For past rulemakings under EPCA section 325, DOE was
required to issue an Advanced Notice of Proposed Rulemaking (ANOPR)
following publication of the framework document. The Energy
Independence and Security Act of 2007 (EISA 2007) eliminated the
requirement that DOE issue an ANOPR as part of the standards
rulemaking process; see EISA 2007, at sec. 307. Given EISA 2007's
revisions to EPCA, DOE is now using an alternative process to
provide the same information and ability for public comment as the
ANOPR, but without publication of analyses in the Federal Register.
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1. Engineering Analysis
The engineering analysis establishes the relationship between the
manufacturer selling price and efficiency of a product DOE is
evaluating for energy conservation standards. This relationship serves
as the basis for cost-benefit calculations for individual consumers,
manufacturers, and the Nation. The engineering analysis identifies
representative baseline equipment, which is the starting point for
analyzing technologies that provide energy efficiency improvements.
Baseline equipment refers to a model or models having features and
technologies typically found in that equipment currently offered for
sale, in this case, small electric motors. The baseline model in each
equipment class represents the characteristics of certain small
electric motors in that class. After identifying the baseline models,
DOE estimated manufacturer selling prices by using a consistent
methodology and pricing scheme including material and labor costs and
manufacturer's markups. In this way, DOE developed these so-called
``manufacturer selling prices'' for the baseline and more efficient
motor designs. Later, in its Markups to Determine Installed Price
analysis, DOE converts these manufacturer selling prices into installed
prices. In the preliminary TSD, section 2.4 of chapter 2 and chapter 5
each provide detail on the engineering analysis and the derivation of
the manufacturer selling prices.
2. Energy Use Characterization
The energy use characterization provides estimates of annual energy
consumption for small electric motors, which DOE uses in the LCC and
PBP analyses and the NIA. DOE developed energy consumption estimates
for all of the equipment classes analyzed in the engineering analysis,
as the basis for its energy use estimates. In the preliminary TSD,
section 2.5 of chapter 2 and chapter 7 each provide detail on the
energy use characterization.
3. Markups To Determine Installed Price
DOE derives the installed prices for products based on manufacturer
markups, retailer markups, distributor markups, contractor markups,
builder markups, and sales taxes. In deriving these markups, DOE has
determined the distribution channels for product sales, the markup
associated with each party in the distribution channels, and the
existence and magnitude of differences between markups for baseline
products (baseline markups) and for more-efficient products
(incremental markups). DOE calculates both overall baseline and overall
incremental markups based on the product markups at each step in the
distribution channel. The overall incremental markup relates the change
in the manufacturer sales price of higher-efficiency models (the
incremental cost increase) to the change in the retailer or distributor
sales price. In the preliminary TSD, section 2.6 of chapter 2 and
chapter 6 each provide detail on the estimation of markups.
4. Life-Cycle Cost and Payback Period Analyses
The LCC and PBP analyses determine the economic impact of potential
standards on individual consumers. The LCC is the total consumer
expense for a product over the life of the product. The LCC analysis
compares the LCCs of products designed to meet possible energy
conservation standards with the LCCs of the products likely to be
installed in the absence of standards. DOE determines LCCs by
considering (1) Total installed cost to the purchaser (which consists
of manufacturer selling price, sales taxes, distribution chain markups,
and installation cost); (2) the operating expenses of the products
(energy use and maintenance); (3) product lifetime; and (4) a discount
rate that reflects the real consumer cost of capital and puts the LCC
in present-value terms. The PBP represents the number of years needed
to recover the increase in purchase price (including installation cost)
of more efficient products through savings in the operating cost of the
product. It is the change in total installed cost due to increased
efficiency divided by the change in annual operating cost from
increased efficiency. In the preliminary TSD, section 2.7 of chapter 2
and chapter 8 each provide detail on the LCC and PBP analyses.
5. National Impact Analysis
The NIA estimates the NES and the NPV of total consumer costs and
savings expected to result from new standards at specific efficiency
levels (referred to as candidate standard levels). DOE calculated NES
and NPV for each level for each candidate standard for small electric
motors as the difference between a base-case forecast (without new
standards) and the standards case forecast (with standards). DOE
determined national annual energy consumption by multiplying the number
of units in use (by vintage) by the average unit energy consumption
(also by vintage). Cumulative energy savings are the sum of the annual
NES determined over a specified time period. The national NPV is the
sum over time of the discounted net savings each year, which consists
of the difference between total operating cost savings and increases in
total installed costs. Critical inputs to this analysis include
shipments projections, retirement rates (based on estimated product
lifetimes), and estimates of changes in shipments and retirement rates
in response to changes in product costs due to standards. In the
preliminary TSD, section 2.9 of chapter 2 and chapter 10 each provide
detail on the NIA.
DOE consulted with interested parties as part of its process for
conducting all of the analyses and invites further input from the
public on these topics. The preliminary analytical results are subject
to revision following review and input from the public. A complete and
revised TSD will be made available upon issuance of a NOPR. The final
rule will contain the final analysis results and be accompanied by a
final rule TSD.
DOE encourages those who wish to participate in the public meeting
to obtain the preliminary TSD and to be prepared to discuss its
contents. A copy of the preliminary TSD is available at the Web address
given in the SUMMARY section of this notice. However, public meeting
participants need not limit their comments to the topics identified in
the preliminary TSD. DOE is also interested in receiving views
concerning other relevant issues that participants believe would affect
energy conservation standards for these products or that DOE should
address in the NOPR.
Furthermore, DOE welcomes all interested parties, whether or not
they participate in the public meeting, to submit in writing by March
2, 2009, comments and information on matters addressed in the
preliminary TSD and on other matters relevant to
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consideration of standards for small electric motors.
The public meeting will be conducted in an informal, conference
style. A court reporter will be present to record the minutes of the
meeting. There shall be no discussion of proprietary information, costs
or prices, market shares, or other commercial matters regulated by
United States antitrust laws.
After the public meeting and the expiration of the period for
submitting written statements, DOE will consider all comments and
additional information that is obtained from interested parties or
through further analyses, and it will prepare a NOPR. The NOPR will
include proposed energy conservation standards for the products covered
by the rulemaking, and members of the public will be given an
opportunity to submit written and oral comments on the proposed
standards.
Issued in Washington, DC, on December 19, 2008.
John F. Mizroch,
Acting Assistant Secretary, Energy Efficiency and Renewable Energy.
[FR Doc. E8-30985 Filed 12-29-08; 8:45 am]
BILLING CODE 6450-01-P