[Federal Register Volume 75, Number 64 (Monday, April 5, 2010)]
[Proposed Rules]
[Pages 17080-17083]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-7608]
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DEPARTMENT OF ENERGY
10 CFR Part 431
[Docket No. EERE-2008-BT-STD-0012]
RIN 1904-AB86
Energy Conservation Standards for Walk-in Coolers and Walk-in
Freezers: 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 equipment classes that DOE
plans to analyze for establishing energy conservation standards for
walk-in coolers and walk-in freezers; the analytical framework, models,
and tools that DOE is using to evaluate standards for this equipment;
the results of preliminary analyses performed by DOE for this
equipment; and the potential energy conservation standard levels
derived from these analyses that DOE could consider for this equipment.
In addition, DOE encourages written comments on these subjects. To
inform interested parties 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/wicf.html.
DATES: DOE will hold a public meeting on Friday, May 14, 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.,
Friday, April 30, 2010. Written comments are welcome, especially
following the public meeting, and should be submitted by May 20, 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.
Postal Mail: Ms. Brenda Edwards, U.S. Department of
Energy, Building Technologies Program, Mailstop EE-2J, Public Meeting
for Walk-in Coolers and Walk-in Freezers, EERE-2008-BT-STD-0012, 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,
[[Page 17081]]
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. Charles Llenza, 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-
2192. E-mail: [email protected]. In the Office of General
Counsel, contact Mr. Michael Kido, U.S. Department of Energy, Office of
General Counsel, GC-71, 1000 Independence Avenue, SW., Washington, DC
20585, (202) 586-8145. E-mail: [email protected].
SUPPLEMENTARY INFORMATION:
A. Statutory Authority
Title III of the Energy Policy and Conservation Act of 1975, as
amended, (EPCA or the Act) sets forth a variety of provisions designed
to improve energy efficiency. Part B of Title III (42 U.S.C. 6291-6309)
provides for the Energy Conservation Program for Consumer Products
Other Than Automobiles. The National Energy Conservation Policy Act
(NECPA), Public Law 95-619, amended EPCA to add Part C of Title III,
which established an energy conservation program for certain industrial
equipment. (42 U.S.C. 6311-6317) (For purposes of codification in Title
42 of the U.S. Code, these parts were subsequently redesignated as
Parts A and A-1, respectively, for editorial reasons.) Section 312 of
the Energy Independence and Security Act of 2007 (EISA 2007) further
amended EPCA by adding certain equipment to this energy conservation
program, including walk-in coolers and walk-in freezers (collectively
``walk-in equipment'' or ``walk-ins''), which are the subject of this
rulemaking. (42 U.S.C. 6311(1), (20), 6313(f) and 6314(a)(9))
DOE is required to design each standard for this equipment 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. 6313(f)(4)(A); see 42 U.S.C. 6295(o)(2)(A) and
(o)(3)(B)) To determine whether a proposed standard is economically
justified, DOE will, after receiving comments on the proposed standard,
determine whether the benefits of the standard exceed its burdens to
the greatest extent practicable, considering the following seven
factors:
1. The economic impact of the standard on manufacturers and
consumers of equipment subject to the standard;
2. The savings in operating costs throughout the estimated average
life of the covered equipment in the type (or class) compared to any
increase in the price, initial charges, or maintenance expenses for the
covered equipment 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
equipment 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.
(See 42 U.S.C. 6295(o)(2)(B)(i); 6313(f)) For walk-ins, DOE is
applying those factors in a manner consistent with its other energy
conservation standards rulemakings to ascertain the maximum improvement
in energy efficiency that is technologically feasible and economically
justified for this equipment.
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 DOE performed for the product; and potential energy
conservation standard levels derived from these analyses that DOE could
consider. DOE is publishing this document to announce the availability
of the preliminary technical support document (TSD), which details the
preliminary analyses, discusses the comments on the framework document,
and summarizes the preliminary results of DOE's analyses. 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 Walk-In Coolers and Walk-In
Freezers
1. Background
EPCA requires the Secretary to publish performance-based standards
for walk-ins no later than January 1, 2012. The standards must apply to
products manufactured beginning 3 years after the date the final rule
is published unless DOE determines, by rule, that such period is
inadequate. If DOE makes such a determination, DOE may establish a
period of up to 5 years for the standards to become applicable. (42
U.S.C. 6313(f)(4)) To address this requirement, DOE is developing
standards for walk-in coolers and walk-in freezers that achieve the
maximum improvement in energy that is technologically feasible and
economically justified.
In addition to requiring the promulgation of performance standards
for walk-ins, EPCA also contains prescriptive standards (i.e., design
requirements) for walk-in coolers and walk-in freezers manufactured on
or after January 1, 2009. (42 U.S.C. 6313(f)(1)-(3)) These prescriptive
standards require that walk-ins have specific components or design
characteristics, each of which is intended to reduce the energy use of
the equipment. DOE is not proposing to amend these requirements, but
rather to develop new standards that further improve the energy
efficiency of the equipment by regulating its overall energy use (i.e.,
performance). Manufacturers would be permitted to meet the new
standards with a variety of components or designs that satisfy the
prescriptive standards mandated by EPCA. Accordingly, this rulemaking
would not modify any of EPCA's prescriptive standards for walk-in
equipment.
Further, EPCA directs the Secretary to establish a test procedure
to measure the energy use of walk-in coolers and walk-in freezers. (42
U.S.C. 6314(a)(9)(B)(i)) DOE is conducting a separate rulemaking to
develop this test procedure and published a notice of proposed
rulemaking (NOPR) for the test procedure on January 4, 2010. In the
test procedure NOPR, DOE proposed to consider the two components that
comprise a walk-in--the insulated envelope and the refrigeration
system--as two separate pieces of equipment, and proposed separate test
procedures for each of these components. DOE considered this approach
because it received comments from interested parties stating that the
two components are often produced by different manufacturers and may be
assembled by a third party, and for other reasons as well. 75 FR 186
(January 4, 2010)
DOE anticipated that it would take a similar approach to
performance standards for walk-ins; that is, it would create separate
standards for the envelope and the refrigeration system. Thus, the
preliminary analyses reflect this approach. DOE explains the
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approach further and addresses its implications in the preliminary TSD.
2. Current Rulemaking Process
To initiate this rulemaking, DOE prepared a framework document,
``Rulemaking Framework for Walk-in Coolers and Walk-in Freezers,'' that
describes the procedural and analytical approaches DOE anticipated
using to evaluate the establishment of energy conservation standards
for walk-ins. DOE published a notice that announced both the
availability of the framework document and a public meeting to discuss
the proposed analytical framework for the rulemaking, and that invited
written comments on the conduct of the rulemaking. 74 FR 411 (January
6, 2009). The framework document is available at: http://www1.eere.energy.gov/buildings/appliance_standards/commercial/wicf_framework_document.html. DOE held the public meeting on February 4,
2009, at which it described 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 the
following major issues: Creation of separate standards for the
insulated envelope and the refrigeration system of a walk-in;
compliance, enforcement, and labeling provisions; test procedures;
distribution channels; discount rates; monetization of emission
reductions; and interpretation and enforcement of the EPCA's
prescriptive requirements for walk-in equipment.
DOE developed two spreadsheets for analyzing the economic impacts
of standard levels--one that calculates LCC and PBP, and one that
calculates national impacts. (For the NOPR, DOE will also develop a
spreadsheet that will evaluate the financial impacts on walk-in
manufacturers that may result from a standard level.) DOE prepared an
LCC and PBP spreadsheet that calculates results for each of the
representative units analyzed. This spreadsheet includes equipment
efficiency data that allows users to determine LCC savings and PBPs
based on average values, and can be combined with Crystal Ball (a
commercially available software program) to generate a Monte Carlo
simulation, incorporating uncertainty and variability considerations.
The second economic 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 walk-in coolers and walk-
in freezers. DOE has posted both economic spreadsheets on its website
for review and comment by interested parties.
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 the walk-in equipment currently under consideration, DOE
conducted in-depth technical analyses in the following areas: (1)
Engineering, (2) energy-use characterization, (3) markups to determine
equipment price, (4) life-cycle cost and payback period, and (5)
national impacts. 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, and has included in the preliminary TSD,
several other analyses that either support the five major analyses or
are preliminary analyses that will be expanded in preparing 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 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.
1. Engineering Analysis
The engineering analysis establishes the relationship between the
manufacturer selling price and equipment efficiency 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 the minimum efficiency equipment
currently offered for sale. The baseline model in each equipment class
represents the characteristics of certain walk-in equipment. After
identifying the baseline models, DOE estimated manufacturer selling
prices by using a consistent methodology and pricing scheme including
material and labor costs, cost of shipping and manufacturer's markups.
In this way, DOE developed these so-called ``manufacturer selling
prices'' for the baseline and more efficient 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. Markups To Determine Installed Price
DOE derives the installed prices for equipment 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 equipment sales, the
markup associated with each party in the distribution channels, and the
existence and magnitude of differences between markups for baseline
equipment (baseline markups) and for more-efficient equipment
(incremental markups). DOE calculates both overall baseline and overall
incremental markups based on the equipment 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 2.5 of chapter 2 and
chapter 6 each provide detail on the estimation of markups.
3. Energy Use Characterization
The energy use characterization provides estimates of annual energy
consumption for walk-in equipment, 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
2.6 of chapter 2 and
[[Page 17083]]
chapter 7 each provide detail on 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 equipment over the life of the equipment. The LCC analysis
compares the LCCs of equipment designed to meet possible energy
conservation standards with the LCCs of the equipment 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 equipment
(energy use and maintenance); (3) equipment 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 equipment through savings in the
operating cost of the equipment. 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 candidate standard level for walk-in equipment 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 from
2015-2045. 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 equipment lifetimes), and estimates of changes in
shipments and retirement rates in response to changes in equipment
costs due to standards. In the preliminary TSD, section 2.8 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 further 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 from DOE's website 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 this equipment 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
May 20, 2010, comments and information on matters addressed in the
preliminary TSD and on other matters relevant to consideration of
standards for walk-in equipment.
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 equipment
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 March 29, 2010.
Cathy Zoi,
Assistant Secretary, Energy Efficiency and Renewable Energy.
[FR Doc. 2010-7608 Filed 4-2-10; 8:45 am]
BILLING CODE 6450-01-P