[Federal Register Volume 75, Number 35 (Tuesday, February 23, 2010)]
[Proposed Rules]
[Pages 7987-7990]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-3479]
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DEPARTMENT OF ENERGY
10 CFR Part 430
[Docket No. EERE-2007-BT-STD-0010]
RIN 1904-AA89
Energy Conservation Standards for Residential Clothes Dryers and
Room Air Conditioners: 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 U. S. Department of Energy (DOE) will hold a 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 clothes dryers and room air conditioners; 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/clothes_dryers.html and http://www1.eere.energy.gov/buildings/appliance_standards/residential/room_ac.html.
DATES: The Department will hold a public meeting on Tuesday, March 16,
2010, 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., Tuesday, March 2, 2010. Written comments are welcome,
especially following the public meeting, and should be submitted by
April 26, 2010.
ADDRESSES: The public meeting will be held at the U.S. Department of
Energy, Forrestal Building, Room 8E-098, 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-0010, 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-0010 and/or RIN 1904-AA89 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
Residential Clothes Dryers and Room Air Conditioners, EERE-2007-BT-STD-
0010 and/or RIN 1904-AA89, 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 a.m.
[[Page 7988]]
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: Stephen Witkowski, 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) 586-7463. e-mail:
[email protected].
Francine Pinto or Betsy Kohl, U.S. Department of Energy, Office of
General Counsel, GC-71, 1000 Independence Avenue, SW., Washington, DC
20585-0121. Phone: (202) 586-7432. e-mail: [email protected] or
[email protected].
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Statutory Authority
II. History of Standards Rulemaking for Residential Clothes Dryers
and Room Air Conditioners
A. Background
B. Current Rulemaking Process
i. Residential Clothes Dryers
ii. Room Air Conditioners
iii. Consent Decree
III. Summary of the Analyses Performed by DOE
A. Engineering Analysis
B. Markups To Determine Product Prices
C. Energy Use Characterization
D. Life-Cycle Cost and Payback Period Analyses
E. National Impact Analysis
I. 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
clothes dryers and room air conditioners. This program authorizes the
Department to establish technologically feasible, economically
justified energy efficiency standards for certain consumer products
that would result in substantial national energy savings, and for which
both natural market forces and voluntary labeling programs have been
and/or are expected to be ineffective in promoting energy efficiency.
DOE must design each new or amended 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)) 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 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 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.
II. History of Standards Rulemaking for Residential Clothes Dryers and
Room Air Conditioners
A. Background
The amendments to EPCA in the National Appliance Energy
Conservation Act of 1987 (NAECA), Public Law 100-12, established
prescriptive energy conservation standards for residential clothes
dryers and performance energy conservation standards for room air
conditioners, as well as requirements for determining whether these
standards should be amended. (42 U.S.C. 6295(c) and (g).)
i. Residential Clothes Dryers
EPCA, as amended by NAECA, requires gas clothes dryers not to be
equipped with constant burning pilots and requires that DOE conduct two
cycles of rulemakings to determine if more stringent standards are
justified. (42 U.S.C. 6295 (g)(3) and (4)) DOE defines ``electric
clothes dryer'' under EPCA as ``a cabinet-like appliance designed to
dry fabrics in a tumble-type drum with forced air circulation. The heat
source is electricity and the drum and blower(s) are driven by an
electric motor(s).'' (Title 10 of the Code of Federal Regulations (CFR)
430.2) Gas clothes dryers have a similar definition, except the heat
source is gas. On May 14, 1991, DOE published a final rule in the
Federal Register (FR) establishing the first set of performance
standards for residential clothes dryers; the new standards became
effective on May 14, 1994. 56 FR 22250. DOE initiated a second
standards rulemaking for residential clothes dryers by publishing an
advance notice of proposed rulemaking (ANOPR) in the Federal Register
on November 14, 1994. 59 FR 56423. Pursuant to the priority-setting
process outlined in the July 15, 1996, Procedures, Interpretations and
Policies for Consideration of New or Revised Energy Conservation
Standards for Consumer Products (61 FR 36974 (July 15, 1996)
(establishing 10 CFR part 430, subpart C, appendix A); the ``Process
Rule''), however, DOE classified the standards rulemaking for
residential clothes dryers as a low priority for its fiscal year 1998
priority-setting process. As a result, DOE suspended the standards
rulemaking activities for them.
ii. Room Air Conditioners
NAECA established performance standards for room air conditioners
that became effective on January 1, 1990, and directed DOE to conduct
two cycles of rulemakings to determine if more stringent standards are
justified. (42 U.S.C. 6295 (c)(1) and (2)) DOE defines ``room air
conditioner'' under EPCA as a ``consumer product, other than a
`packaged terminal air conditioner,' which is powered by a single phase
electric current and which is an encased assembly designed as a unit
for mounting in a window or through the wall for the purpose of
providing delivery of conditioned air to an enclosed space. It includes
a prime source of refrigeration and may include a means for ventilating
and heating.'' (10 CFR 430.2) On March 4, 1994, DOE published in the
Federal Register a notice of proposed rulemaking (NOPR) for several
products, including room air conditioners. 59 FR 10464. As a result of
the Process Rule, DOE suspended activities to finalize standards for
room air conditioners. DOE subsequently resumed rulemaking activities
related to room air conditioners, and, on
[[Page 7989]]
September 24, 1997, DOE published a final rule establishing an updated
set of performance standards, with an effective date of October 1,
2000. 62 FR 50122.
iii. Consent Decree
Under the consolidated Consent Decree in New York v. Bodman, No. 05
Civ. 7807 (S.D.N.Y. filed Sept. 7, 2005) and Natural Resources Defense
Council v. Bodman, No. 05 Civ. 7808 (S.D.N.Y. filed Sept. 7, 2005) DOE
is required to publish a final rule amending energy conservation
standards for residential clothes dryers and room air conditioners no
later than June 30, 2011.
B. Current Rulemaking Process
To initiate the current rulemaking to consider energy conservation
standards, the Department published on its Web site the Energy
Conservation Standards Rulemaking Framework Document for Residential
Clothes Dryers and Room Air Conditioners (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/dryer_roomac_framework.pdf. 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 residential clothes dryers and room air conditioners. 72
FR 57254 (October 9, 2007).
The focus of the public meeting, which was held on October 24,
2007, was 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 have helped identify issues
DOE needs to address in developing a proposed standard and provided
information contributing to DOE's proposed resolution of these issues.
III. Summary of the Analyses Performed by DOE
For each of the residential clothes dryer and room air conditioner
products currently under 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 analyses that either support the
five major analyses or are preliminary analyses that will be expanded
upon for the NOPR. 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 completed 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.
A. 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. 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, usually is a
model that just meets the current standard. Chapter 5 of the
preliminary TSD discusses the engineering analysis.
B. Markups To Determine Product Prices
DOE derives consumer prices for products based on manufacturer
costs, manufacturer markups, retailer markups, distributor markups,
contractor markups, builder markups, and sales taxes. 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.
C. Energy Use Characterization
The energy use characterization provides estimates of annual energy
consumption for the residential clothes dryers and room air
conditioners, 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.
D. 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.
[[Page 7990]]
E. 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 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. 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.
Furthermore, the Department welcomes all interested parties,
regardless of whether they participate in the public meeting, to submit
in writing by April 26, 2010, comments and information on matters
addressed in the preliminary TSD and on other matters relevant to
consideration of standards for residential clothes dryers and room air
conditioners.
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, the Department 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 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 February 12, 2010.
Cathy Zoi,
Assistant Secretary, Energy Efficiency and Renewable Energy.
[FR Doc. 2010-3479 Filed 2-22-10; 8:45 am]
BILLING CODE 6450-01-P