[Federal Register Volume 74, Number 219 (Monday, November 16, 2009)]
[Proposed Rules]
[Pages 58915-58918]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-27396]
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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. 74, No. 219 / Monday, November 16, 2009 /
Proposed Rules
[[Page 58915]]
DEPARTMENT OF ENERGY
10 CFR Part 430
[Docket No. EERE-2008-BT-STD-0012]
RIN 1904-AB79
Energy Conservation Standards for Residential Refrigerators,
Refrigerator-Freezers, and Freezers: Public Meeting and Availability of
the Preliminary Technical Support Document
AGENCY: Office of Energy Efficiency and Renewable Energy, U.S.
Department of Energy.
ACTION: Notice of public meeting and availability of preliminary
technical support document.
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SUMMARY: The U.S. Department of Energy (DOE) will hold an informal
public meeting to discuss and receive comments on the product classes
that DOE plans to analyze for purposes of amending energy conservation
standards for residential refrigeration products; 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. DOE also encourages written comments on these subjects. To
inform stakeholders and facilitate this process, DOE has prepared an
agenda, a preliminary Technical Support Document (TSD), and briefing
materials, which are available at: http://www1.eere.energy.gov/buildings/appliance_standards/residential/refrigerators_freezers.html.
DATES: The Department will hold a public meeting on December 10, 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., November 25, 2009. Written comments are welcome,
especially following the public meeting, and should be submitted by no
later than January 15, 2010.
ADDRESSES: The public meeting will be held at the U.S. Department of
Energy, Forrestal Building, Room 8E-089, 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-2008-BT-STD-0012, 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-2008-BT-STD-0012 in the subject line of the message.
Mail: Ms. Brenda Edwards, U.S. Department of Energy,
Building Technologies Program, Mailstop EE-2J, Public Meeting for
Refrigerators, Refrigerator-Freezers, and Freezers, EERE-2008-BT-STD-
0012, 1000 Independence Avenue, SW., Washington, DC 20585-0121. Phone:
(202) 586-2945. Please submit one signed paper original.
Hand Delivery/Courier: Ms. Brenda Edwards, U.S. Department
of Energy, Building Technologies Program, 6th Floor, 950 L'Enfant
Plaza, SW., Washington, DC 20024. Phone: (202) 586-2945. Please submit
one signed paper original.
Instructions: All submissions received must include the agency name
and docket number or RIN for this rulemaking.
Docket: For access to the docket to read background documents, a
copy of the transcript of the public meeting, or comments received, go
to the U.S. Department of Energy, 6th Floor, 950 L'Enfant Plaza, SW.,
Washington, DC 20024, (202) 586-2945, between 9:00 a.m. and 4:00 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. Please note that the Department's Freedom of
Information Reading Room (formerly Room 1E-190 at the Forrestal
Building) no longer houses rulemaking materials.
FOR FURTHER INFORMATION CONTACT: Lucas Adin, U.S. Department of Energy,
Office of Energy Efficiency and Renewable Energy, Building
Technologies, EE-2J, 1000 Independence Avenue, SW., Washington, DC
20585-0121. Phone: (202) 287-1317. e-mail: [email protected] or
Michael Kido, U.S. Department of Energy, Office of General Counsel, GC-
72, 1000 Independence Avenue, SW., Washington, DC 20585-0121. Phone:
(202) 586-9507. e-mail: [email protected].
SUPPLEMENTARY INFORMATION:
A. Statutory Authority
Part A of Title III of the Energy Policy and Conservation Act of
1975 (EPCA), 42 U.S.C. 6291 et seq., established an energy conservation
program for major household appliances, which includes residential
refrigerators, refrigerator-freezers, and freezers.\1\ This program
authorizes the Department to establish energy efficiency standards for
certain consumer products. Any new or amended standard for these
products must (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))
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:
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\1\ Part A of Title III of EPCA, which focuses on consumer
products, and the corresponding Part A-1, which governs certain
commercial and industrial equipment, were originally titled Parts B
and C, respectively. For editorial reasons, Parts B and C were
redesignated as Parts A and A-1 in the United States Code.
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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
[[Page 58916]]
expenses for the covered products 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 considers relevant.
(See 42 U.S.C. 6295(o)(2)(B)(i))
Prior to proposing a standard for public comment, DOE typically
seeks public input on the analytical framework, models, and tools that
DOE will use to evaluate standards for the product at issue; the
results of preliminary analyses performed by DOE for the product; and
potential energy conservation standard levels derived from these
analyses that DOE could consider.
B. History of Standards Rulemaking for Refrigerators, Refrigerator-
Freezers, and Freezers
1. Background
The National Appliance Energy Conservation Act of 1987 (NAECA),
Pub. L. 100-12 (March 17, 1989), amended EPCA and established energy
conservation standards for refrigerators, refrigerator-freezers, and
freezers. See 42 U.S.C. 6295(b). It also required DOE to decide whether
these standards should be amended and to conduct two rounds of
rulemakings.
On November 17, 1989, DOE published a final rule in the Federal
Register updating the performance standards. The new standards became
effective on January 1, 1993. 54 FR 47916. Subsequently, DOE determined
that new standards for some of the product classes were based on
incomplete data and incorrect analysis, which prompted the publication
of a correction notice. See 55 FR 42845 (Oct. 24, 1990). The notice
amended the new standards for the following three product classes: (1)
Refrigerators and refrigerator-freezers with manual defrost, (2)
refrigerator-freezers with automatic defrost with a bottom-mounted
freezer but without through-the-door (TTD) ice service, and (3) chest
freezers and all other freezers. Id. In 1997, DOE updated the
performance standards once again for refrigerators, refrigerator-
freezers, and freezers by publishing a final rule in the Federal
Register on April 28, 1997. 62 FR 23102. The new standards became
effective on July 1, 2001. By completing a second standards rulemaking,
DOE had fulfilled its legislative requirement to conduct two cycles of
standards rulemakings.
A coalition including utility companies, consumer and low-income
advocacy groups, environmental and energy efficiency organizations, and
the California Energy Commission submitted a petition in 2004
requesting that DOE conduct another rulemaking to amend the standards
for residential refrigerator-freezers. (June 1, 2004 Petition, Last
accessed 9/9/09, http://www.standardsasap.org/documents/rfdoe.pdf) In
April 2005, DOE granted the petition and conducted a limited set of
analyses to assess the potential energy savings and potential economic
benefit of new standards. (See, e.g., ``Energy Department Grants
Petition for New Refrigerator Energy Efficiency Standards'', ACEEE
press release, April 13, 2005, Last accessed 9/9/09, http://www.aceee.org/press/0504doepetition.htm) DOE issued a report in October
2005 detailing the analyses, which examined the technological and
economic feasibility of new standards set at Energy Star levels
effective in 2005 for the two most popular product classes of
refrigerators: top-mount refrigerator-freezers without TTD features and
side-mount refrigerator-freezers with TTD features. Depending on
assumptions regarding the impact that standards would have on market
efficiency, DOE estimated that amended standards at the 2005 ENERGY
STAR levels would yield energy savings of up to 2.4 to 3.4 quadrillion
British thermal units (Btu), with an associated economic impact to the
Nation ranging from a burden or cost of $1.2 billion to a benefit or
savings of $3.3 billion. (Technical Report: Analysis of Amended Energy
Conservation Standards for Residential Refrigerator-Freezers, U.S.
Department of Energy, October 2005, Last accessed 9/9/09, http://www1.eere.energy.gov/buildings/appliance_standards/pdfs/refrigerator_report_1.pdf).
In October 2005, DOE published draft data sheets containing energy
savings potentials for refrigerator-freezers as part of its fiscal year
2006 schedule-setting process. (2006 Draft Rulemaking Activities Data
Sheets, Appliance Standards, Building Technologies Program, U.S.
Department of Energy, October 2005, Last Accessed 9/9/09, http://www1.eere.energy.gov/buildings/appliance_standards/pdfs/2006_activities_data_sheets.pdf). The data sheets were based on the
October 2005 draft technical report analyzing potential new amended
energy conservation standards for residential refrigerator-freezers
described above. The technical report and the associated data sheets
provided input to the setting of priorities for rulemaking activities.
2. Current Rulemaking Process
The Energy Independence and Security Act of 2007 (EISA), Public Law
110-140 (Dec. 19, 2007), requires DOE to publish a final rule by
December 31, 2010, to determine whether to amend the standards in
effect for refrigerators, refrigerator-freezers, and freezers
manufactured on or after January 1, 2014. See EISA, Sec. 311(a)(3)
(codified at 42 U.S.C. 6295(b)(4)). As part of this rulemaking, if a
positive determination is made, DOE must also include any amended
standards. To comply with these new requirements, the Department
published on its website the Energy Conservation Standards Rulemaking
Framework Document for Residential Refrigerators, Refrigerator-
Freezers, and Freezers (the framework document) to explain the issues,
analyses, and process that it anticipated using for the development of
energy efficiency standards for these products. This document is
available at: http://www1.eere.energy.gov/buildings/appliance_standards/residential/pdfs/refrigerator_freezer_framework.pdf (Last
accessed 9/9/09). DOE also published a notice announcing the
availability of the framework document and a public meeting to discuss
the proposed analytical framework, and inviting written comments
concerning the development of standards for the residential
refrigeration products. 73 FR 54089 (September 18, 2008).
DOE held a public meeting on September 29, 2008 to discuss the
analyses and issues identified in various sections of the framework
document. At the meeting, DOE described the different analyses it would
conduct, the methods proposed for conducting them, and the
relationships among the various analyses. Manufacturers, trade
associations, environmental advocates, regulators, and other interested
parties attended the meeting. Comments received since publication of
the framework document helped identify issues for DOE to address in
developing a proposed standard and provided information contributing to
DOE's proposed resolution of these issues.
C. Summary of the Analyses Performed by DOE
For each of the residential refrigeration products currently under
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consideration, DOE conducted in-depth technical analyses in the
following areas: (1) Engineering; (2) markups to determine product
price; (3) energy-use characterization; (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 supplemental analyses that will be
expanded upon in the notice of proposed rulemaking (NOPR).\2\ 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 (MIA) 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\ Section 307 of the Energy Independence and Security Act of
2007, Public Law 110-140, amended section 325(p) of EPCA (42 U.S.C.
6295(p)) to remove a requirement that DOE publish an advance notice
of proposed rulemaking. Thus, the first regulatory action in this
proceeding will be publication of a notice of proposed rulemaking.
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1. Engineering Analysis
The engineering analysis establishes the relationship between the
cost and efficiency of a product DOE is evaluating for amended 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
products, which is the starting point for analyzing technologies that
provide energy efficiency improvements. The term ``baseline product''
refers to a model or models having features and technologies typically
found in products currently offered for sale. The baseline model in
each product class represents the characteristics of products in that
class and, for products already subject to energy conservation
standards, is usually a model that just meets the current standard.
After identifying the baseline models, DOE estimated manufacturer
selling prices through an analysis of (1) manufacturer costs, and (2)
markups, which are the multipliers used to determine the manufacturer
selling prices based on manufacturing cost. Chapter 5 of the
preliminary TSD discusses the engineering analysis.
2. Markups To Determine Product Prices
DOE derives consumer prices for products based on manufacturer,
retailer, distributor, contractor, and builder markups, as well as
sales taxes. Collectively, these items comprise the markups affecting
product pricing. In deriving these markups, DOE has determined (1) the
distribution channels for product sales; (2) the markup associated with
each party in the distribution channels; and (3) 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. Chapter 6 of the preliminary TSD discusses the estimation of
markups.
3. Energy Use Characterization
The energy use characterization provides estimates of annual energy
consumption for the residential refrigeration products, which DOE uses
in the LCC and PBP analyses and the NIA. DOE developed energy
consumption estimates for all of the product classes analyzed in the
engineering analysis, as the basis for its energy use estimates.
Chapter 7 of the preliminary TSD discusses the energy use
characterization.
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. Chapter 8 of the preliminary TSD discusses the
LCC and PBP analyses.
5. National Impact Analysis
The NIA estimates the national energy savings (NES) and the net
present value (NPV) of total consumer costs and savings expected to
result from new standards at specific efficiency levels. DOE calculated
NES and NPV for each efficiency level 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. Chapter 10 of the preliminary TSD discusses the NIA.
DOE consulted with stakeholders and other interested persons 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. The final rule will contain the final analysis
results.
The Department 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. The Department 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.
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Furthermore, the Department welcomes all interested parties,
whether or not they participate in the public meeting, to submit in
writing by January 15, 2010, comments and information on matters
addressed in the preliminary TSD and on other matters relevant to
consideration of standards for refrigerators, refrigerator-freezers,
and freezers.
The public meeting will be conducted in an informal, conference
style. A court reporter will be present to record the minutes of the
meeting. Discussion of proprietary information, costs or prices, market
shares, or other commercial matters regulated by United States
antitrust laws is prohibited.
After the public meeting and the expiration of the period for
submitting written statements, the Department will consider all timely
comments and additional information that is obtained from interested
parties or through further analyses, and it will prepare an NOPR. The
NOPR will include proposed energy conservation standards for the
products covered by this 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 November 9, 2009.
Cathy Zoi,
Assistant Secretary, Energy Efficiency and Renewable Energy.
[FR Doc. E9-27396 Filed 11-13-09; 8:45 am]
BILLING CODE 6450-01-P