[Federal Register Volume 75, Number 84 (Monday, May 3, 2010)]
[Proposed Rules]
[Pages 23191-23194]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-10104]
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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. 75, No. 84 / Monday, May 3, 2010 / Proposed
Rules
[[Page 23191]]
DEPARTMENT OF ENERGY
10 CFR Part 430
[Docket No. EERE-2010-BT-STD-0005]
RIN 1904-AC15
Energy Conservation Program for Consumer Products: Energy
Conservation Standards for Certain Small Diameter, Elliptical
Reflector, and Bulged Reflector Incandescent Reflector Lamps
AGENCY: Office of Energy Efficiency and Renewable Energy, Department of
Energy.
ACTION: Notice of public meeting and availability of a framework
document.
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SUMMARY: Pursuant to the Energy Policy and Conservation Act (EPCA), the
U.S. Department of Energy (DOE) is preparing a notice of proposed
rulemaking regarding energy conservation standards for certain
incandescent reflector lamps (IRLs) that have elliptical reflector (ER)
or bulged reflector (BR) bulb shapes, and for certain IRLs with
diameters of 2.50 inches. DOE will hold a public meeting to discuss and
receive comments on the product classes that DOE plans to analyze for
the purpose of amending energy conservation standards for certain IRLs,
and the analytical approach, models, and tools that DOE is using to
evaluate standards for these products. DOE encourages written comments
on these subjects. To inform interested parties and facilitate this
process, DOE has prepared a framework document describing the
analytical approaches DOE anticipates using to evaluate potential
standards for these lamps.
DATES: DOE will hold a public meeting on Wednesday, May 26, 2010 from 9
a.m. to 5 p.m. in Washington, DC. DOE must receive requests to speak at
the public meeting before 4 p.m., Wednesday, May 12, 2010. DOE must
receive a signed original and an electronic copy of statements to be
given at the public meeting before 4 p.m., Wednesday, May 19, 2010. DOE
will accept comments, data, and information before and after the public
meeting, but no later than June 17, 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. To attend the public meeting, please notify
Ms. Brenda Edwards at (202) 586-2945. Please note that foreign
nationals visiting DOE Headquarters are subject to advance security
screening procedures. Any foreign national wishing to participate in
the meeting should advise DOE as soon as possible by contacting Ms.
Brenda Edwards to initiate the necessary procedures.
Any comments submitted must identify the notice of public meeting
(NOPM) for Energy Conservation Standards for Certain Incandescent
Reflector Lamps, and provide the docket number EERE-2010-BT-STD-0005
and/or regulatory information number (RIN) 1904-AC15. Comments may be
submitted using any of the following methods:
1. Federal eRulemaking Portal: http://www.regulations.gov. Follow
the instructions for submitting comments.
2. E-mail: [email protected]. Include docket number
EERE-2010-BT-STD-0005 and/or RIN: 1904-AC15 in the subject line of the
message.
3. Postal Mail: Ms. Brenda Edwards, U.S. Department of Energy,
Building Technologies Program, Mailstop EE-2J, Public Meeting for
Certain Incandescent Reflector Lamps, EE-2009-BT-STD-0022, 1000
Independence Avenue, SW., Washington, DC 20585-0121. Please submit one
signed paper original.
4. Hand Delivery/Courier: Ms. Brenda Edwards, U.S. Department of
Energy, Building Technologies Program, 950 L'Enfant Plaza, SW., Suite
600, Washington, DC 20024. Telephone: (202) 586-2945. Please submit one
signed paper original.
Docket: For access to the docket to read background documents or
comments received, visit the U.S. Department of Energy, Resource Room
of the Building Technologies Program, 950 L'Enfant Plaza, SW., Suite
600, Washington, DC (202) 586-2945, between 9 a.m. and 4 p.m., Monday
through Friday, except Federal holidays. Please call Ms. Brenda Edwards
at the above telephone number for additional information regarding
visiting the Resource Room. DOE's framework document is available at:
http://www1.eere.energy.gov/buildings/appliance_standards/residential/incandescent_lamps.html.
FOR FURTHER INFORMATION CONTACT: Ms. Margaret Sullivan, U.S. Department
of Energy, Office of Energy Efficiency and Renewable Energy, Building
Technologies, EE-2J, 1000 Independence Avenue, SW., Washington, DC
20585-0121. Telephone: (202) 287-1604. E-mail:
[email protected].
Mr. Eric Stas, U.S. Department of Energy, Office of the General
Counsel, GC-71, 1000 Independence Avenue, SW., Washington, DC 20585-
0121. Telephone: (202) 586-9507. E-mail: [email protected].
For information on how to submit or review public comments and on
how to participate in the public meeting, contact Ms. Brenda Edwards,
U.S. Department of Energy, Office of Energy Efficiency and Renewable
Energy, Building Technologies Program, EE-2J, 1000 Independence Avenue,
SW., Washington, DC 20585-0121. Telephone: (202) 586-2945. E-mail:
[email protected].
SUPPLEMENTARY INFORMATION:
I. Authority
Title III of the Energy Policy and Conservation Act of 1975 (42
U.S.C. 6291 et seq.) (EPCA or the Act) established the Energy
Conservation Program for Consumer Products Other Than Automobiles,
covering major household appliances. Subsequent amendments expanded
Title III of EPCA to include additional consumer products and certain
commercial and industrial equipment. In particular, the Energy Policy
Act of 1992 (EPACT 1992) included amendments to EPCA that added as
covered products certain IRLs with wattages of 40 watts (W) or higher,
and that established energy conservation standards for these IRLs. In
defining the term ``incandescent reflector lamp,'' EPACT 1992 excluded
lamps with ER and BR bulb shapes, and with diameters of 2.75 inches or
less. Therefore, such IRLs were neither included as covered products
nor subject to EPCA's standards for IRLs.
However, section 322(a)(1) of the Energy Independence and Security
Act
[[Page 23192]]
of 2007 (EISA 2007) subsequently amended EPCA to expand the Act's
definition of ``incandescent reflector lamp'' to include lamps with a
diameter between 2.25 and 2.75 inches, as well as lamps with ER, BR,
bulged parabolic aluminized reflector (BPAR), or similar bulb shapes.
(42 U.S.C. 6291(30)(C)(ii) and (F)) Consequently, these lamps became
covered products subject to EPCA's standards for IRLs, except that
section 322(b) of EISA 2007 also amended EPCA to exempt from the IRL
standards the following categories of these lamps: (1) Lamps rated 50
watts or less that are ER30, BR30, BR40, or ER40; (2) lamps rated 65
watts that are BR30, BR40, or ER40 lamps; and (3) R20 incandescent
reflector lamps rated 45 watts or less (lamps that have a diameter of
2.5 inches or less, such as R20 lamps, are commonly referred to as
small diameter lamps). (42 U.S.C. 6295(i)(1)(C)) (Hereafter, DOE refers
to these lamps collectively as the ``exempt IRLs.'')
In a recent rulemaking to consider amending EPCA's standards for
IRLs and certain other types of lamps, DOE initially concluded that it
lacked authority to set standards for the exempt IRLs. 74 FR 16920,
16930 (April 13, 2009). DOE also concluded, therefore, that these lamps
were not covered by the EPCA directive (42 U.S.C. 6295(i)) that DOE
consider amending the Act's standards for IRLs and other lamps.
However, upon consideration of the comments it received in that
rulemaking, DOE decided to reexamine these conclusions. 74 FR 16920,
16930-31 (April 13, 2009); 74 FR 34080, 34092 (July 14, 2009).
DOE has undertaken this reexamination and has now concluded, for
the reasons that follow, that it has the authority under EPCA to adopt
standards for the exempt IRLs, and that these lamps are covered by the
directive in 42 U.S.C. 6295(i) to amend EPCA's standards for IRLs.
First, by amending the definition of ``incandescent reflector lamp''
(42 U.S.C. 6291(30)(C)(ii) and (F)), EISA 2007 effectively brought ER,
BR, and small diameter lamps into the Federal energy conservation
standards program as covered product, thereby granting DOE regulatory
authority. Additionally, although 42 U.S.C. 6295(i)(1)(C) exempts
certain ER, BR, and small diameter lamps from statutorily-prescribed
standards, EISA 2007 grants DOE authority to amend the standards laid
out in 42 U.S.C. 6295(i)(1), which includes subparagraph (C). As a
result, the statutory text did not exempt the bulbs from future
regulation, only from the specified minimum standards in 42 U.S.C.
6295(i)(1). Consequently, DOE is conducting this rulemaking to address
the potential for development of energy conservation standards for the
exempt IRLs.
DOE must design any new or amended standard for these products to
achieve the maximum improvement in energy efficiency that is
technologically feasible and economically justified. Any standard must
also result in significant conservation of energy. (42 U.S.C.
6295(o)(2)(A) and (3)) 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 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)(I)-(VII))
II. History of Standards Rulemaking for ER, BR, and Small Diameter
Incandescent Reflector Lamps
A. Background
As indicated above, EISA 2007 amended EPCA both to add as covered
products the exempt IRLs (42 U.S.C. 6291(30)(C)(ii) and (F)) and to
exempt them from EPCA's energy conservation standards for IRLs (42
U.S.C. 6295(i)(1)(C)). As also indicated above, DOE initially concluded
that it lacked authority to adopt standards for the exempt IRLs.
Accordingly, in the recent lamps standards rulemaking, DOE's analyses
did not examine whether standards for these IRLs might be warranted.
(74 FR 34080, July 14, 2009) Based upon a reexamination of its
authority, DOE decided to conduct this separate rulemaking to assess
energy conservations standards for the exempt IRLs.
B. Current Rulemaking Process
This NOPM represents the first step in the process to consider
adoption of energy conservation standards for the exempt IRLs. Because
the previous rulemaking for IRLs was completed relatively recently, DOE
possesses methodologies for all stages of the analysis that have
already been vetted and revised according to public comments.
Accordingly, DOE intends to present the results of its analyses in the
notice of proposed rulemaking (NOPR) phase. DOE is issuing this NOPM
with the intention of receiving as much feedback as possible regarding
the methodologies, data, and key assumptions that will be used for the
analyses before performing the NOPR analyses. The analyses and proposed
methodologies that will be used for the NOPR phase of this rulemaking
are described in detail in the framework document, available at the web
link provided in the ADDRESSES section of this notice.
III. Summary of the Analyses To Be Performed
For the exempt IRLs, DOE is planning to conduct in-depth technical
analyses for the NOPR in the following areas: (1) Engineering; (2)
energy-use characterization; (3) product price; (4) life-cycle cost
(LCC) and payback period (PBP); (5) national impacts analysis (NIA);
(6) manufacturer impact analysis; (7) utility impact analysis; (8)
employment impact analysis; (9) environmental assessment; and (10)
regulatory impact analysis. DOE will also conduct several other
analyses that support those previously listed, including the market and
technology assessment, the screening analysis (which contributes to the
engineering analysis), and the shipments analysis (which contributes to
the national impact analysis). These analyses are described in further
detail below. In the framework document, DOE describes the
methodologies and key data sources for these analyses, and sets forth
issues for which DOE seeks public comment. The framework document is
available at the web address given in the ADDRESSES section of this
notice.
A. Engineering Analysis
The engineering analysis establishes the relationship between the
manufacturer selling price and the
[[Page 23193]]
efficiency of the product. This relationship serves as the basis for
cost-benefit calculations for individual consumers, manufacturers, and
the nation. The engineering analysis identifies representative baseline
models, which is the starting point for analyzing technologies that
provide energy efficiency improvements. A baseline model refers to a
model or models having features and technologies typically found in the
least efficient, most common products currently offered for sale.
Section 2.5 of the framework document discusses the engineering
analysis.
B. Energy Use Characterization
The energy use characterization provides estimates of annual energy
consumption for exempt IRL, which DOE uses in the LCC and PBP analyses
and the NIA. DOE develops energy consumption estimates for all of the
product classes analyzed in the engineering analysis as the basis for
its energy use estimates. Section 2.6 of the framework document
provides detail on the energy use characterization.
C. 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. PBP is equal to the change in total installed cost due to
increased efficiency divided by the change in annual operating cost
from increased efficiency. Section 2.8 of the framework document
provides detail on the LCC and PBP analyses.
D. 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 (referred to as
candidate standard levels). DOE calculates NES and NPV for each
candidate standard level as the difference between a base-case forecast
(without new standards) and the standards-case forecast (with
standards). DOE determines national annual energy consumption by
multiplying the number of units in use by the average unit energy
consumption. 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. Section 2.10
of the framework document provides detail on the NIA.
E. Manufacturer Impact Analysis
The purpose of the manufacturer impact analysis (MIA) is to
identify and quantify the likely impacts of amended energy conservation
standards on manufacturers of exempt IRL. Using industry research,
public comments, and interviews with manufacturers and other interested
parties, DOE will analyze and consider a wide range of quantitative and
qualitative industry impacts that may occur due to amended energy
conservation standards. Based on the information gathered during
interviews and other research, DOE will assess impacts on competition,
manufacturing capacity, employment, and regulatory burden. Section 2.12
of the framework document provides detail on the MIA.
F. Utility Impact Analysis
The utility impact analysis examines the effects of amended energy
conservation standards on the installed generation capacity of
electric, gas, and oil utilities. The utility impact analysis reports
the changes in installed capacity and generation between the base case
and the standards cases that result from each standard level by plant
type. Section 2.13 of the framework document provides detail on the
utility impact analysis.
G. Employment Impact Analysis
The employment impact analysis will estimate indirect national job
creation or elimination resulting from possible standards. Indirect
employment impacts may result from expenditures shifting between goods
(the substitution effect) and changes in income and overall expenditure
levels (the income effect) that occur due to the standards. DOE defines
indirect employment impacts from standards as net jobs eliminated or
created in the general economy as a result of increased spending driven
by increased equipment prices and reduced spending on energy. Section
2.14 of the framework document provides detail on the employment impact
analysis.
H. Environmental Assessment
The purpose of the environmental assessment is to quantify and
consider the environmental effects of amended energy conservation
standards for exempt IRL. The environmental assessment will assess
impacts of amended energy conservation standards on the following types
of energy-related emissions--carbon dioxide (CO2), oxides of
nitrogen (NOX), sulfur dioxide (SO2), and mercury
(Hg). As part of the environmental assessment, DOE plans to monetize
the benefits associated with emissions reductions using a range of
values. Section 2.15 and 2.16 of the framework document provide detail
on the environmental assessment and monetization.
I. Regulatory Impact Analysis
The regulatory impact analysis addresses the potential for non-
regulatory approaches to supplant or augment energy conservation
standards in order to improve the energy efficiency or reduce the
energy consumption of the products covered under this rulemaking. DOE
will base its assessment on the actual impacts of any such initiatives
to date, but will also consider information presented regarding the
impacts that any existing initiative might have in the future. Section
2.17 of the framework document provides detail on the regulatory impact
analysis.
J. Additional Supporting Analyses
DOE will also conduct several analyses that support the analyses
listed above, including the market and technology assessment and the
screening analysis, which contribute to the engineering analysis, and
the shipments analysis, which contributes to the NIA. DOE also conducts
an LCC subgroup analysis, which evaluates economic impacts on selected
groups of consumers who might be adversely affected by a change in the
national energy conservation standards for the covered products. Please
see the framework document for further details on these analyses.
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IV. Public Participation
DOE considers public participation to be a very important part of
the process for setting energy conservation standards. DOE actively
encourages the participation and interaction of the public during the
comment period at each stage of the rulemaking process. Beginning with
the NOPM, and during each subsequent public meeting and comment period,
interactions with and between members of the public provide a balanced
discussion of the issues to assist DOE in the standards rulemaking
process.
Accordingly, DOE encourages those who wish to participate in the
public meeting to obtain the framework document from DOE's Web site and
to be prepared to discuss its contents. However, public meeting
participants need not limit their comments to the topics identified in
the framework document. DOE is also interested in receiving views and
information 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, regardless of
whether they participate in the public meeting, to submit in writing by
June 17, 2010, comments and information on matters addressed in the
framework document and on other matters relevant to consideration of
standards for the exempt IRLs.
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 which will be
published in the Federal Register. 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 April 23, 2010.
Cathy Zoi,
Assistant Secretary, Energy Efficiency and Renewable Energy.
[FR Doc. 2010-10104 Filed 4-30-10; 8:45 am]
BILLING CODE 6450-01-P