[Federal Register Volume 60, Number 13 (Friday, January 20, 1995)]
[Proposed Rules]
[Pages 4348-4350]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-1433]



      

[[Page 4347]]

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Part VIII





Department of Energy





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Office of Energy Efficiency and Renewable Energy



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10 CFR Part 430



Energy Conservation Program for Consumer Products: Test Procedures for 
Furnaces/Boilers, Vented Home Heating Equipment, and Pool Heaters; 
Proposed Rule

  Federal Register / Vol. 60, No. 13 / Friday, January 20, 1995 / 
Proposed Rules   
[[Page 4348]] 

DEPARTMENT OF ENERGY

Office of Energy Efficiency and Renewable Energy

10 CFR Part 430

[Docket No. EE-RM-93-501]


Energy Conservation Program for Consumer Products: Test 
Procedures for Furnaces/Boilers, Vented Home Heating Equipment, and 
Pool Heaters

AGENCY: Office of Energy Efficiency and Renewable Energy, Department of 
Energy.

ACTION: Proposed rule; reopening of comment period.

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SUMMARY: On Monday, August 23, 1993, the Department of Energy (DOE or 
Department) published a proposed rule amending furnace and boiler, 
vented home heating equipment, and pool heater test procedures (58 FR 
44538). Among the various proposed technical changes and revisions, 
that notice proposed a revision to the existing Energy Factor and 
proposed a new energy efficiency descriptor, Annual Efficiency. A 
multiplication factor (F-factor), which represented the ratio of the 
energy consumed at the power plant to generate the auxiliary electric 
energy delivered to the fossil-fueled appliance to the useful heat 
equivalent of that electrical energy delivered at the appliance, was 
applied to the auxiliary energy in the calculation of the proposed 
Energy Factor and Annual Efficiency. Today's notice announces a 
reopening of the comment period to seek comment on an alternative 
definition of the F-factor based on the ratio of the national average 
cost of the auxiliary electrical energy to the national average cost of 
the fossil fuel energy on a common unit energy basis. DOE is soliciting 
comments, data, and information respecting this alternative energy cost 
factor.

DATES: Written comments in response to this document must be received 
by February 21, 1995.

ADDRESSES: Written comments and statements shall be submitted to: U.S. 
Department of Energy, Office of Energy Efficiency and Renewable Energy, 
``Test Procedures for Furnaces/Boilers, Vented Home Heating Equipment, 
and Pool Heaters,'' (Docket No. EE-RM-93-501), Mail Stop EE-43, Room 
5E-066, Forrestal Building, 1000 Independence Avenue, SW., Washington, 
DC 20585, (202) 586-7574.
    Copies of the transcript of the public hearing and the comments 
received may be read and/or photocopied at the DOE Freedom of 
Information Reading Room, U.S. Department of Energy, Forrestal 
Building, Room 1E-190, 1000 Independence Avenue, SW., Washington, DC 
20585, (202) 586-6020, between the hours of 9 a.m. and 4 p.m., Monday 
through Friday, except Federal holidays.
    The Department proposed to incorporate by reference in the Final 
Rule the following standards:
    1. American National Standards Institute/American Society of 
Heating, Refrigerating, and Air-Conditioning Engineers Standard 103-
1993.
    2. American National Standards Institute Standard Z21.56-1990.
    Copies of these standards may be viewed at the Department of Energy 
Freedom of Information Reading Room at the address stated above. Copy 
of the American National Standards Institute/American Society of 
Heating, Refrigerating, and Air-Conditioning Engineers Standards 103, 
may be obtained from the American Society of Heating, Refrigerating, 
and Air-Conditioning Engineers, 1791 Tullie Circle, Atlanta, Georgia 
30329. A copy of the American National Standard Institute Standard 
Z21.56 may be obtained from American National Standards Institute, 11 
West 42nd Street, New York, New York 10036.

FOR FURTHER INFORMATION CONTACT:

Cyrus H. Nasseri, U.S. Department of Energy, Office of Energy 
Efficiency and Renewable Energy, Mail Station, EE-431, 1000 
Independence Avenue, SW., Washington, DC 20585, (202) 586-9138, FAX 
(202) 586-4617.
Eugene Margolis, Esq., U.S. Department of Energy, Office of General 
Counsel, Mail Station, GC-72, 1000 Independence Avenue, SW., 
Washington, DC 20585, (202) 586-9507.

SUPPLEMENTARY INFORMATION:

I. Introduction
II. Discussion of Comments
III. Discussion of Issues for Further Comment

I. Introduction

    On August 23, 1993, DOE published in the Federal Register a Notice 
of Proposed Rulemaking and public hearing for furnaces/boilers, vented 
home heating equipment, and pool heaters (hereafter referred to as the 
1993 Proposed Rule) to amend the furnace, vented home heating equipment 
and pool heater test procedures (58 FR 44538). A public hearing was 
held in Washington, DC on January 5, 1994. Among the various proposed 
technical changes and revisions, a revision to the existing Energy 
Factor and a new energy efficiency descriptor, named Annual Efficiency, 
were proposed. An intent of these proposed descriptors was to account 
for the electrical consumption of a furnace in its efficiency rating. 
To accomplish this, a multiplication factor (F-factor), which 
represented the ratio of the energy consumed at the power plant to 
generate the auxiliary electric energy consumed by the fossil fueled 
appliance to that auxiliary electrical energy, was applied to the 
auxiliary energy in the calculation of the proposed Energy Factor and 
Annual Efficiency.
    The current DOE test procedure includes for information the 
computation of the annual fossil fuel and auxiliary electrical energy 
consumptions of fossil-fueled furnaces and boilers and an Energy Factor 
which includes both the fossil fuel and the auxiliary electrical energy 
consumption of the appliances. The Energy Factor is defined as the 
ratio of the annual output of energy delivered to the heated space by 
fossil-fueled appliances to the total annual energy input to the 
appliances including auxiliary electrical energy.
    DOE proposed in the 1993 Proposed Rule the definition of Energy 
Factor as defined in ANSI/ASHRAE Standard 103-1988, with the provision 
that non-weatherized warm air furnaces are located indoors and all 
combustion and ventilation air is admitted through grills and ducts 
from the outdoors and does not communicate with air in the conditioned 
space [Isolated Combustion Systems (ICS)]. In addition, for those 
appliances such as mobile home furnaces and vented home heating 
equipment that are primarily installed indoors, DOE proposed a new 
descriptor, Annual Efficiency. The new annual efficiency descriptor was 
identical in form to the Energy Factor but for non-weatherized 
furnaces. For boilers and for weatherized warm air furnaces, Annual 
Efficiency and Energy Factor would be identical.
    For fossil-fueled furnaces and boilers, the proposal defined 
``Energy Factor'' as a term that gives credit for the electrical energy 
recovered as usable heat, such as from a blower motor that is in the 
circulating air stream. In addition, an F-factor, representing the 
ratio of the energy consumed at the power plant to generate the 
auxiliary electric energy delivered to the fossil-fueled appliance to 
that auxiliary electrical energy, was applied to the auxiliary energy 
in the calculation of the proposed Energy Factor and Annual Efficiency. 
A typical value of 3.0 for the F-factor is presented as one used in 
California.

II. Discussion of Comments

    This notice addresses comments received on the proposed Energy 
Factor and Annual Efficiency descriptors and, [[Page 4349]] in 
particular, the multiplication factor F, which was applied to the 
auxiliary electrical consumption. This factor was defined in the 1993 
Proposed Rule as the ratio of the energy consumed at the power plant to 
generate the auxiliary electric energy delivered to the fossil-fuelled 
appliance to the useful heat equivalent of that electrical energy 
delivered at the appliance.
    Many comments were received on the proposed formulation of energy 
descriptors to capture electrical consumption of furnaces/boilers, 
vented home heating equipment, and pool heaters. In general, the 
comments received were supportive of the goals of the proposed 
amendments.
    Twenty-one commenters offered comments on the energy efficiency 
descriptor issues emphasizing the F-factor. Midwest Gas of the Midwest 
Power Systems Inc. of Iowa supported fully the energy factor descriptor 
and the annual efficiency descriptor (Midwest Gas, No. 1, at 2). 
Columbia Gas Distribution Companies of Columbus, Ohio, Oklahoma Natural 
Gas Co., Texas Gas Transmission Corp., City Gas Company of Florida, 
Southern California Gas Co., Southern Union Gas of Texas, Lone Star Gas 
Co., and Texas and Brooklyn Union Gas of N.Y., all expressed support 
for the concept of the energy factor and the annual efficiency 
descriptors; however, they suggested that the source- based F-factor 
should be applied to all covered appliances, regardless of their 
primary energy source. They considered it unfair to apply the F-factor 
to fossil-fueled furnaces and boilers but not to all-electric 
appliances (Columbia Gas, No. 3, at 1; Oklahoma Natural Gas, No. 4, at 
1; Texas Gas, No. 5, at 3; City Gas, No. 6, at 1; Southern California 
Gas, No. 24, at 1; Southern Union Gas, No. 26, at 1; Lone Star, No. 11, 
at 2; and Brooklyn Union, No. 19, at 1).
    American Gas Association (AGA) and Hydronics Institute (HI) stated 
that they have long supported a full-cycle approach to energy decisions 
but are disappointed in that the proposed energy descriptors apply the 
F-factor only to the auxiliary electric energy in fossil-fueled 
furnaces and boilers and not to all-electric equipment. AGA considered 
the proposed approach illogical and biased and stated that it could 
result in a consumer purchasing electric furnaces because of their 
lower purchase price without fully considering operating cost. AGA 
recommended the inclusion of source energy for electric furnaces (AGA, 
Testimony, at 54, and No. 13, at 2; and HI, Testimony, at 75, and No. 
16, at 2). Minnegasco, and Public Service Electric and Gas Co. (PSE&G) 
expressed the same concerns as the American Gas Association on the F-
factor (Minnegasco, No. 18, at 3; and PSE&G, Testimony, at 102, and No. 
9, at 3). The PSE&G further stated that if DOE adopts a source-to-site 
based F-factor, the factor should be regionally and seasonally applied 
because of regional and seasonal differences in electricity generation 
and demand side management programs. The PSE&G further suggested that 
the energy descriptor be defined to include air emissions and solid 
waste produced (PSE&G, Testimony, at 102, and No. 9, at 3).
    Edison Electric Institute supported adoption of the proposed energy 
descriptors Energy Factor and Annual Efficiency, but without the F-
factor (equivalent to setting F=1). Edison Electric Institute believed 
that site energy rather than source energy should be used in the 
calculation for Energy Factor and Annual Efficiency because (1) the 
appliance standard is to benefit the consumer who makes his or her 
decisions on energy usage based on site energy and has no control over 
the electrical power plant; (2) there is no technical justification for 
using source rather than site energy; (3) an unnecessary precedent 
would be created for other appliance standards that are currently 
defined using site energy; (4) given that electricity can be generated 
from renewable energy (wind, solar, hydro), the F-factor could distort 
the actual amount of energy needed for electricity generation and could 
have the tendency to favor fossil-fueled equipment over electric 
equipment; and (5) given that electricity is generated using different 
fuels and at different rates of conversion from heat to electricity, 
including nuclear and hydroelectric, a single F-factor would be 
misleading (Edison, No. 20, at 2).
    Lennox Industries supported the inclusion of electrical energy in 
the proposed energy descriptors but objected that limiting the 
application of the F-factor on electric energy usage only to fossil-
fueled furnaces and boilers would penalize this type of product and 
confuse the consumer (Lennox, Testimony, at 85).
    Inter-City Products stated that (1) applying the F-factor to 
auxiliary electric energy consumption in gas-fired furnaces, but not to 
the electric energy consumption in electric furnaces, puts the gas-
fired equipment at an unjustified disadvantage in comparison to 
electric furnaces and heat pumps, which could cause significant load 
shifting from gas to electric, (2) gas and electrical consumption 
cannot be separated for cost comparison in a single energy descriptor 
that combines two different forms of energy but not cost in the 
calculation because their operating cost will be different, and (3) 
there is no basis for the proposed value of 3.37 for the F-factor. 
Therefore, Inter-City stated that it would not support the proposed 
energy descriptors until these issues were resolved (Inter-City, No. 7, 
at 3).
    GAMA objected to the proposed energy descriptors' immediate 
implementation in their present form, for reasons similar to those 
mentioned by Inter-City, supra. GAMA also suggested the possibility of 
developing two separate energy descriptors for fossil fuel and electric 
energy consumption. Carrier Corp. and Consolidated Industries both 
stated their support of GAMA (GAMA, Testimony, at 18, and No. 8, at 5; 
Carrier, No. 12, at 1; and Consolidated, No. 22, at 1). York 
International objected to the proposed energy descriptors and would 
support the descriptors only if the F-factor was not applied. York also 
considered F-factor's use inconsistent by not applying it to all-
electric units (York, No. 10, at 1).
    California Energy Commission supported the proposed energy 
descriptors with the F-factor (California, No. 25, at 3). The National 
Resources Defense Council (NRDC) strongly supported the proposed energy 
descriptors and the concept of applying a multiplication factor to 
auxiliary electrical energy consumed to reflect the cost of energy to 
the consumers. The NRDC suggested that other than the source-based F-
factor, factors based on consumer cost or emission impacts (air 
pollution impacts or climate pollution impacts) could also be used to 
develop the F-factor. But NRDC suggested that a factor based on average 
consumer costs (the ratio of unit energy cost to consumers of 
electrical energy and fossil fuel) would be a more accurate and useful 
approach, as it is more reflective of the costs the consumer is 
incurring. The NRDC suggested that in order to avoid the necessity of 
changing the cost ratio due to fluctuations or changes in the gas to 
electric costs every year, a single value for the factor should be 
chosen and maintained for the next ten years or longer unless the 
factor changes drastically (NRDC, Testimony, at 68 and No. 15, at 2).

III. Discussion of Issues for Further Comment

    The main reason for the Department's 1993 proposal to establish the 
energy factor and the annual efficiency descriptor was to take into 
account the consumption of the auxiliary electric [[Page 4350]] energy 
in the operation of fossil-fueled furnaces and boilers. The AFUE 
descriptor for fossil-fueled units, as defined, deals with only the 
primary energy consumption (gas or oil) of an appliance, and therefore 
does not give the consumer a complete account of the overall energy and 
cost performance of the appliance. A survey of the yearly auxiliary 
electrical energy consumption and gas consumption of gas-fired 
furnaces, as published in the October 1993 GAMA Efficiency 
Certification Directory, showed that the auxiliary electrical energy 
consumption varies from approximately 2.0 to 6.5 percent of the gas 
consumption. Even though this energy consumption ratio is small, it is 
significant in cost to the consumer because electricity costs 
approximately four times more than gas. On the basis of AFUE alone, a 
consumer would not be able to compare the overall efficiency of two (or 
more) different models of fossil-fueled furnaces or boilers of 
comparable output capacity but with blower motors of different 
efficiencies and, hence, different costs. The proposed Energy Factor or 
Annual Efficiency will give the consumer the necessary descriptor for a 
more informed purchasing decision.
    A second reason for having the proposed energy descriptors is to 
allow for the consideration of design options involving changes in 
auxiliary electric energy consumption in the Department's analysis 
supporting the energy efficiency standard rulemaking.
    The definition of the F-factor in the 1993 proposed rule was 
intended to: (1) provide consumers with rating information which 
reflects annual operating cost, including electrical energy, so they 
can make informed choices when comparing several models or makes of 
fossil-fueled appliances; and (2) encourage manufacturers to make the 
most overall energy efficient appliance, the efficiency of which can be 
shown to the consumers with a meaningful energy descriptor. After 
reviewing the objections presented by commenters with regard to the 
proposed F-factor, the Department invites comment on an alternative 
formulation of the F-factor based on the ratio of costs. In particular, 
DOE invites comment on the NRDC suggestion that basing a multiplication 
factor on energy costs of electricity and fossil fuel to consumers 
rather than on source energy ratio would be a more meaningful criterion 
in reflecting the overall energy efficiency of fossil-fueled 
appliances. This ratio may also give consumers a clearer grasp of the 
cost of operating their appliances.
    The F-factor value of 3.37 in the 1993 proposed rule was based on 
historical values of power-plant-to-site energy ratios. More recent 
calculations, based on future projections in the ``Annual Energy 
Outlook 1994'' (Energy Information Administration, DOE, DOE/EIA-
0383(94), January, 1994, Table A2), showed that a value of F=3.2 would 
be appropriate for the years 2000 through 2010. Average national 
electricity-to-fuel price (as opposed to energy) ratios also were 
calculated for the same years, using the ``Annual Energy Outlook 1994'' 
(Tables A3 and A4). These price ratios were obtained by first 
calculating a weighted-averaged fuel price (for natural gas, LPG, and 
oil), then taking the ratio of average national electricity price to 
the weighted average fuel price. The weighted average price for the 
three fuels was calculated by weighting each fuel price by its yearly 
national residential space heating consumption (in quads per year). 
These calculations showed that the projected electricity-to-fuel price 
ratio will vary from 3.46 in the year 2000 to 3.30 in the year 2010, 
and that the trend for this ratio will be toward less variation over 
time. Therefore, while some variation will exist in the price ratio 
over time (as cautioned by the NRDC in its testimony), the Department 
seeks comment on whether a nationwide price ratio of 3.36 will be valid 
for the next 10 to 20 years (determined by extrapolating for the year 
2002 and price ratio remaining unchanged during that period). The 
actual ratio of electricity-to-fuel price will not be the same across 
the U.S., but the use of a multiple-valued F-factor, as suggested by 
the Edison Electric Institute, would cause complications for 
manufacturers that sell the same appliance in different parts of the 
country. Using a single value is similar to the adoption of a national 
average outdoor temperature and a national average heating degree-days 
in the calculation for the heating seasonal efficiency and AFUE in the 
current test procedure.
    The Department is seeking comment on the equations for the proposed 
Energy Factor and the Annual Efficiency for furnaces and boilers that 
use fossil fuel as the primary source of energy, and a much smaller 
quantity of electrical energy for the auxiliary equipment (2.0 percent 
to 6.5 percent of the yearly gas consumption for gas furnaces; less 
than 1.0 percent for boilers). The F-factor should be applied to all 
types of source energy and to all types of space-heating equipment. As 
previously stated, the inclusion of the F-factor in the proposed 
equations for these energy descriptors is to calculate the total cost 
of the fossil fuel energy and the auxiliary electrical energy consumed 
by the appliance. In this way, the consumers would have a more complete 
energy descriptor than the AFUE to compare the total cost of operating 
the appliance in their homes. This would also discourage the possible 
practice of running the air circulation blower longer during burner 
ignition and shut-off in order to obtain a slightly higher AFUE value, 
while actually consuming more electrical energy and thus, more overall 
energy. The Department believes the best information available to 
consumers to make an informed decision when purchasing a fossil-fueled 
appliance is an efficiency descriptor that will reflect the total cost 
of operating the appliance. The proposed energy descriptors do reflect 
that total cost to the consumer.
    Based on the discussion above, DOE is seeking comment today on 
redefining the F-factor in the August 23, 1993, proposed rule as the 
ratio of national average price of electricity to the national average 
price of fossil fuel, on a common unit energy basis. In particular, DOE 
invites comment on use of value of 3.36 for the F-factor.
    The Department solicits comment and information on the application 
of the proposed consumer energy cost factor to the auxiliary electrical 
energy consumption as a multiplication factor in the calculation of the 
proposed Energy Factor and the Annual Efficiency for fossil fuel 
heating appliances.

    Issued in Washington, DC, on January 11, 1995.
Christine A. Ervin,
Assistant Secretary, Energy Efficiency and Renewable Energy.
[FR Doc. 95-1433 Filed 1-19-95; 8:45 am]
BILLING CODE 6450-01-P