[Federal Register Volume 65, Number 154 (Wednesday, August 9, 2000)]
[Proposed Rules]
[Pages 48838-48852]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-19721]


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DEPARTMENT OF ENERGY

Office of Energy Efficiency and Renewable Energy

10 CFR Part 431

[Docket No. EE-RM/TP-99-470]
RIN 1904-AB02


Energy Efficiency Program for Certain Commercial and Industrial 
Equipment: Test Procedures and Efficiency Standards for Commercial 
Packaged Boilers

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

ACTION: Notice of proposed rulemaking and public hearing.

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SUMMARY: The Energy Policy and Conservation Act, as amended (EPCA), 
establishes energy efficiency standards and test procedures for certain 
commercial products, including commercial packaged boilers. In today's 
proposed rule, the Department of Energy (we, DOE, or the Department) 
proposes regulations to implement the standards and test procedures for 
these boilers.

DATES: The Department will accept comments, data, and information 
regarding the proposed rule until October 23, 2000. Please submit ten 
(10) copies. In addition, we request that you provide an electronic 
copy (3\1/2\" diskette) of the comments in WordPerfectTM 8.
    We will hold a public hearing (workshop) on September 20, 2000, in 
Washington, DC. Please send requests to speak at the workshop so that 
we receive them by 4 p.m., September 6, 2000. Send ten (10) copies of 
your statements for the public workshop so that we receive them by 4 
p.m., September 13, 2000. We also request a computer diskette 
(WordPerfectTM 8) of each statement.

ADDRESSES: Please submit written comments, oral statements, and 
requests to speak at the workshop to Brenda Edwards-Jones, U.S. 
Department of Energy, Office of Energy Efficiency and Renewable Energy, 
EE-41, Docket No. EE-RM/TP-99-470, 1000 Independence Avenue, SW., 
Washington, DC 20585. You may send email to: [email protected].

SUPPLEMENTARY INFORMATION: The workshop will begin at 9 a.m., on 
September 20, 2000, in Room 1E-245 at the U.S. Department of Energy, 
Forrestal Building, 1000 Independence Avenue, SW., Washington, DC. You 
can find more information concerning public participation in this 
rulemaking proceeding in section IV, ``Public Comment,'' of this notice 
of proposed rulemaking.
    You can read the transcript of the public workshop and public 
comments received in the Freedom of Information Reading Room (Room No. 
1E-190) at the U.S. Department of Energy, Forrestal Building, 1000 
Independence Avenue, SW., Washington, DC 20585, between the hours of 
9:00 a.m. and 4:00 p.m., Monday through Friday, except Federal 
holidays.
    You can obtain the latest information regarding the public workshop 
from the Office of Building Research and Standards world wide web site 
at the following address: http://www.eren.doe.gov/buildings/
codes__standards/index.htm

FOR FURTHER INFORMATION CONTACT: Cyrus H. Nasseri, U.S. Department of 
Energy, Office of Energy Efficiency and Renewable Energy, Mail Station, 
EE-41, 1000 Independence Avenue, SW., Washington, DC 20585, (202) 586-
9138, FAX (202) 586-4617, e-mail: [email protected], or Edward 
Levy, Esq, U.S. Department of Energy, Office of General Counsel, Mail 
Station, GC-72, 1000 Independence Avenue, SW., Washington, DC 20585, 
(202) 586-9507, e-mail: [email protected].

SUPPLEMENTARY INFORMATION:  The proposed rule incorporates, by 
reference, the test procedures contained in industry standards 
referenced by the American Society of Heating, Refrigerating, and Air-
Conditioning Engineers, Inc. (ASHRAE) Standard 90.1 for commercial 
packaged boilers. Those industry standards are: American National 
Standards Institute (ANSI) Standard Z21.13a-1993, ``Gas-Fired Low 
Pressure Steam and Hot Water Boilers;'' The Hydronics Institute (HI) 
Standard ``Testing and Rating Standard for Heating Boilers,'' 6th 
Edition, 1989; and American Society of Mechanical Engineers (ASME) PTC 
4.1-1964/RA-1991, ``Power Test Codes for Steam Generating Units.'' The 
proposed rule would also incorporate by reference, ASHRAE Standard 103-
1993, ``Method of Testing for Annual Fuel Utilization Efficiency of 
Residential Central Furnaces and Boilers,'' for its test procedure with 
respect to condensing boilers.
    You can view copies of these standards at the Department of 
Energy's Freedom of Information Reading Room at the address stated 
above. You can also obtain copies of the ASHRAE, ANSI, HI, and ASME 
Standards from the American Society of Heating, Refrigerating, and Air-
Conditioning Engineers, Inc., 1971 Tullie Circle, NE, Atlanta, GA 
30329, Internet URL: http://www.ashrae.org/book/bookshop.htm; Global 
Engineering Documents, 15 Inverness Way East, Englewood, CO 80112 or 
Internet URL: http://webstore.ansi.org/ansidocstore/; the Hydronics 
Institute Inc., 35 Russo Place, Berkeley Heights, NJ 07922, Internet 
URL: http://www.gamanet.org/publist/hydroordr.htm; and the American 
Society of Mechanical Engineers, 345 East 47th Street, New York, NY 
10017, Internet URL: http://www.asmeny.org/catalog, respectively.

I. Introduction

A. Authority
B. Background
    1. General
    2. Issues Concerning Packaged Boilers
C. The Proposed Rule

[[Page 48839]]

II. Discussion

A. General
B. Commercial Packaged Boiler Definition and Scope of Coverage
    1. Definitions
    2. Method of Shipment and Assembly
    3. Application
    4. Capacity
    5. Operating Characteristics
C. Commercial Packaged Boiler Test Procedures for the Measurement of 
Energy Efficiency
    1. Test Procedure and Test Conditions for Low Pressure Steam and 
Hot water Boilers
    2. Testing for High Pressure Steam and High Temperature Water 
Boilers
    3. Provisions for Low Water Temperature Applications
    4. Provisions for Condensing Boilers
    5. Modular Boilers and Multiple Boilers
    6. Testing and Rating a Steam and Hot Water Boiler

III. Procedural Requirements

A. Review Under the National Environmental Policy Act of 1969
B. Review Under Executive Order 12866, ``Regulatory Planning and 
Review''
C. Review Under the Regulatory Flexibility Act
D. Review Under Executive Order 13132, ``Federalism''
E. Review Under Executive Order 12630, ``Governmental Actions and 
Interference with Constitutionally Protected Property Rights''
F. Review Under the Paperwork Reduction Act
G. Review Under Executive Order 12988, ``Civil Justice Reform''
H. Review Under Section 32 of the Federal Energy Administration Act 
of 1974
I. Review Under Unfunded Mandates Reform Act of 1995
J. Review Under the Plain Language Directives
K. Review Under the Treasury and General Government Appropriations 
Act, 1999

IV. Public Comment

A. Written Comment Procedures
B. Public Workshop
    1. Procedures for submitting requests to speak
    2. Conduct of workshop
C. Issues on which Comments are Requested

I. Introduction

A. Authority

    Part B of Title III of the Energy Policy and Conservation Act 
(EPCA) of 1975, Pub. L. 94-163, as amended, by the National Energy 
Conservation Policy Act of 1978 (NECPA), Pub. L. 95-619, the National 
Appliance Energy Conservation Act of 1987 (NAECA), Pub. L. 100-12, the 
National Appliance Energy Conservation Amendments of 1988 (NAECA 1988), 
Pub. L. 100-357, and the Energy Policy Act of 1992 (EPACT), Pub. L. 
102-486, established the ``Energy Conservation Program for Consumer 
Products other than Automobiles.'' Part 3 of Title IV of NECPA amended 
EPCA to add ``Energy Efficiency of Industrial Equipment,'' which 
included air conditioning equipment, boilers, and other types of 
commercial products.
    EPACT also amended EPCA with respect to certain commercial 
products. It provided definitions, test procedures, labeling 
provisions, energy conservation standards, and authority to require 
information and reports from manufacturers. See 42 U.S.C. 6311-6316. 
EPCA authorizes the Secretary of Energy to prescribe test procedures 
that are reasonably designed to produce results which reflect energy 
efficiency, energy use and estimated operating costs, and that are not 
unduly burdensome to conduct. 42 U.S.C. 6314.
    With respect to some commercial products for which EPCA prescribes 
energy conservation standards, including commercial packaged boilers, 
``the test procedures shall be those generally accepted industry 
testing procedures or rating procedures developed or recognized by the 
American Society of Heating, Refrigerating and Air Conditioning 
Engineers, as referenced in ASHRAE/IES Standard 90.1 and in effect on 
June 30, 1992.'' 42 U.S.C. 6314(a)(4)(A). Further, if such an industry 
testing or rating procedure gets amended, DOE must revise its test 
procedure to be consistent with the amendment, unless the Secretary 
determines, based on clear and convincing evidence, that to do so would 
not meet certain general requirements spelled out in the statute for 
test procedures. 42 U.S.C. 6314(a)(4)(B).
    Before prescribing any test procedures for commercial products, the 
Secretary must publish them in the Federal Register and afford 
interested persons at least 45 days to present data, views and 
arguments. 42 U.S.C. 6314(b). Effective 360 days after a test procedure 
rule applicable to a covered commercial product, such as a commercial 
packaged boiler, is prescribed, no manufacturer, distributor, retailer 
or private labeler may make any representation in writing or in 
broadcast advertisement respecting the energy consumption or cost of 
energy consumed by such product, unless it has been tested in 
accordance with the prescribed procedure and such representation fairly 
discloses the results of the testing. 42 U.S.C. 6314(d).
    Finally, EPACT extends certain powers, originally granted to the 
Secretary under NAECA, to require manufacturers of products covered by 
this proposed rule to submit information and reports for a variety of 
purposes, including insuring compliance with requirements. See 42 
U.S.C. 6316(a).

B. Background

1. General
    The Department of Energy has an energy conservation program for 
consumer products, and a few commercial products, conducted under Part 
B of Title III of EPCA, 42 U.S.C. 6291-6309. Under EPCA, this program 
essentially consists of four parts: test procedures, Federal energy 
conservation standards, labeling, and certification and enforcement 
procedures. The Federal Trade Commission (FTC) is responsible for 
labeling, and we implement the remainder of the program as codified in 
Title 10 of the Code of Federal Regulations, Part 430--Energy 
Conservation Program for Consumer Products.
    Since 10 CFR Part 430 covers primarily consumer products, which 
differ from commercial and industrial products, we created a new Part 
431 (10 CFR Part 431) in the Code of Federal Regulations, entitled 
``Energy Conservation Program for Certain Commercial and Industrial 
Equipment,'' to implement DOE's program for the commercial and 
industrial products covered under EPCA. These will include commercial 
heating, air conditioning and water heating products. This new program 
will consist of: test procedures, Federal energy conservation 
standards, labeling, and certification and enforcement procedures. EPCA 
directs DOE, rather than the FTC, to administer the statute's 
efficiency labeling provisions for commercial products.
    On April 14 and 15, 1998, we convened a public workshop to solicit 
views and information from interested parties that would aid in the 
development of rules for commercial heating, air conditioning and water 
heating products. We requested comments on a number of specific issues, 
including issues related to test procedures for commercial products, as 
well as the most cost effective and reliable regimes for sampling, 
certification and enforcement. Statements during the public workshop 
and written comments that were received afterwards helped refine the 
issues involved in this rulemaking and provided useful information 
contributing to their resolution. We convened a second public workshop 
on October 18, 1998, to obtain comments on the issues as they had been 
refined, and on approaches presented by the

[[Page 48840]]

National Institute of Standards and Technology (NIST) for resolving 
them.
2. Issues Concerning Packaged Boilers
    During the April 1998 workshop, we sought comments on the following 
issues regarding test procedures for commercial packaged boilers:
    (1) Definitions of the term ``packaged boiler'' in the ASHRAE 
Standard 90.1-referenced test standards do not precisely coincide with 
those in EPCA. Should we clarify the EPCA definition by rule?
    (2) In establishing the energy conservation standard levels for 
commercial packaged boilers, EPCA specified a lower capacity limit of 
300,000 Btu per hour below which the standard levels do not apply. EPCA 
sections 342(a)(4)(C) and (D), 42 U.S.C. 6313(a)(4)(C) and (D). There 
is no upper capacity limit specified in EPCA for these products. 
Accordingly, the proposed DOE test procedures are designed expressly 
for commercial packaged boilers whose rated capacities are 300,000 Btu 
per hour or more. However, certain packaged boilers do exist whose 
capacities range in tens or even hundreds of millions of Btu per hour, 
and which are difficult to test under controlled laboratory conditions. 
Should we explicitly specify a capacity upper limit for the covered 
packaged boilers in the proposed test procedures?
    (3) In extending EPCA to cover packaged boilers, along with other 
commercial HVAC and hot water heating products, EPACT articulated no 
limits on the applications for which the covered packaged boilers would 
be used (e.g., space heating/conditioning of commercial buildings). 
Should we interpret EPCA as covering only the types of commercial 
packaged boilers used in heating buildings, or should the test 
procedure also apply to boilers used exclusively in other applications 
(e.g., industrial process heating or power generation)?
    (4) The industry test procedures referenced in ASHRAE Standard 
90.1-1989 (and specified in EPCA), that form the basis for a DOE test 
procedure for packaged boilers, do not contain methods for determining 
jacket losses. An exception is the test procedure ASME PTC 4.1, ``Power 
Test Codes for Steam Generating Units,'' which provides a graph 
correlation for jacket loss, as well as a detailed test method. Should 
the DOE test procedure include a jacket loss test method which can be 
used to determine, for example, the efficiency of a boiler installed 
outdoors?
    (5) EPCA specifies industry test procedures referenced in ASHRAE 
Standard 90.1-1989 for measuring the energy efficiency of packaged 
boilers. There are four test standards for gas-fired boilers and three 
for oil-fired boilers. The test conditions and procedures in those test 
standards are not identical. Use of different test conditions for a 
given boiler could produce different efficiency values. Is there a need 
to prescribe a set of uniform test conditions selected from among those 
referenced test procedures for a DOE test procedure?
    (6) Should the DOE test procedure contain separate provisions for 
condensing boilers, modulating boilers, modular boilers, as well as for 
hot water boilers designed for low temperature applications?
    (7) If a boiler is designed for both hot water and steam 
applications, should we specify a steam test and allow a water test as 
an optional procedure?
    Attendees at the April 1998 workshop provided comments on these 
issues. In addition, the California Energy Commission (CEC) provided 
additional written comments afterwards. These comments helped to 
further clarify the issues. Section II, Discussion, will cover them in 
more detail.
    After the April 1998 workshop, we worked towards addressing the 
identified issues for commercial packaged boilers. A set of 
recommendations resulted from that work, and NIST developed a summary 
report of the recommendations. The summary report formed the basis for 
discussions during the October workshop, which enabled us to elicit 
further views and information from interested parties. The summary 
report included draft rule language for commercial packaged boilers. We 
received additional comments, and the participants raised certain 
additional issues at the second workshop.
    The following additional major issues, raised at that time, are 
numbered by using the same numbering scheme as the prior issues:
    (8) EPCA defines a packaged boiler as ``a boiler that is shipped 
complete with heating equipment, mechanical draft equipment, and 
automatic controls; usually shipped in one or more sections.'' For the 
majority of sectional cast iron boilers, a distributor, and not the 
boiler manufacturer, physically ships out sections of the boiler to the 
purchaser. Sometimes, a burner manufacturer may ship the burners 
directly to the purchaser from the factory, or alternately, an 
installer can supply them at the installation site. Are such boilers 
covered products under EPCA, and if so, who is responsible for ensuring 
their compliance with EPCA requirements?
    (9) Are high pressure boilers covered products? Here, the term 
``high pressure boilers'' applies to boilers classified by ASME Boiler 
and Pressure Vessel Code, Section I, Power Boilers, which are designed 
to operate at steam pressures above 15 psig, or at hot water 
temperatures above 250 deg.F.
    (10) For low pressure hot water boilers, should we specify inlet 
and outlet temperatures as per uniform test conditions recommended by 
NIST? These include an inlet water temperature of 80 deg.F 
10 deg.F and an outlet water temperature of 180 deg.F 
2 deg.F, for both gas-fired and oil-fired boilers.

C. The Proposed Rule

    Today's proposed rule incorporates (1) energy efficiency test 
procedures for commercial packaged boilers, (2) definitions that 
clarify EPCA's coverage of this product, and (3) energy conservation 
standards prescribed by EPCA. In preparing these proposals, we have 
considered both oral and written comments, and have incorporated 
recommendations where appropriate. Section II contains the reasons for 
incorporating or not incorporating any significant recommendations.

II. Discussion

A. General

    This section discusses the issues identified for commercial 
packaged boilers. Subsection (B) addresses ``Commercial Packaged Boiler 
Definition and Scope of Coverage,'' and subsection (C) addresses 
``Commercial Packaged Boiler Test Procedures for the Measurement of 
Energy Efficiency''.

B. Commercial Packaged Boiler Definition and Scope of Coverage

1. Definitions
    EPCA defines a packaged boiler as ``a boiler that is shipped 
complete with heating equipment, mechanical draft equipment, and 
automatic controls; usually shipped in one or more sections.'' EPCA, 
Sec. 340(a)(11)(B). ASHRAE Standard 90.1-1989, section 10, entitled 
``Heating, Ventilating, and Air-Conditioning (HVAC) Equipment'' (which 
appears to be the relevant source referenced by Section 343(a)(4) of 
EPCA, concerning test procedures), refers to five test standards for 
commercial heating boilers. Of these five, four include an explicit 
definition for one or more types of a packaged boiler. The definitions 
in three of the four referenced standards are essentially similar with 
respect to the heating equipment and controls. The fourth standard 
introduces a size limit within the definition of a packaged boiler. The

[[Page 48841]]

fifth standard, ASME PTC 4.1, does not define a packaged boiler.
    Specifically, the first referenced test standard, the Hydronics 
Institute (HI) test standard ``Testing and Rating Standard for Heating 
Boilers--1989'' (HI-1989), defines a packaged boiler as ``a boiler-
burner unit factory assembled and wired'', where the ``boiler-burner 
unit'' is defined as ``a combination of boiler, burner, combustion 
chamber design (if required) and controls, marketed as a unit''. HI-
1989 does not specifically limit the test standard to packaged boilers. 
However, HI-1989 limits the test standard to low pressure heating 
boilers defined in ASME Boiler and Pressure Vessel Code, Section IV, 
Heating Boilers.
    The second referenced test standard, Underwriters Laboratory (UL) 
test standard UL Standard 726 for ``Oil-Fired Boiler Assemblies,'' 
defines an oil-fired boiler assembly as ``a boiler assembly equipped 
with one or more oil burners, and all the necessary safety controls, 
electrical equipment as needed, and related equipment, manufactured for 
assembly as a unit.''
    The third referenced test standard, UL Standard 795 for 
``Commercial-Industrial Gas Heating Equipment,'' including gas-fired 
boilers, defines a gas-fired device as one which ``* * * shall be 
factory-built and shall include all essential components necessary for 
its normal function as intended, and may be shipped as two or more 
major subassemblies.'' In addition, both UL Standard 726 and UL 
Standard 795 specify that `` * * * each subassembly shall be capable of 
being incorporated into the final assembly without requiring 
alteration, cutting, drilling, threading, welding or similar tasks by 
the installer * * *'' Both UL Standard 726 and UL Standard 795 also 
limit the scope of coverage to a boiler assembly.
    The fourth referenced test standard, ANSI Standard Z21.13, does not 
define a packaged boiler. However, the standard limits its scope of 
coverage to gas-fired low pressure steam and hot water boilers (defined 
in its Part IV, Definitions, as a self-contained gas burning appliance 
for supply steam or hot water) with input ratings of less than 
12,500,000 Btu per hour.
    The fifth referenced test standard, ASME Power Testing Codes for 
Steam Generating Units, ASME PTC 4.1, does not include a definition for 
a packaged boiler.
    During the April 1998 DOE workshop, participants discussed the 
defining characteristics of a packaged boiler in terms of its method of 
shipment and assembly, its application (e.g., space heating/
conditioning, service water heating, industrial processing, and utility 
applications), its capacity (size), and its operating characteristics 
(e.g., low pressure steam and hot water heating boilers, high 
temperature hot water boilers, and high pressure steam boilers). Each 
of them are discussed individually below.
2. Method of Shipment and Assembly
    The Gas Appliances Manufacturers Association (GAMA) stated that a 
packaged boiler is a boiler which the manufacturer designs with 
specific component models which are listed in the manufacturer's 
catalog. (GAMA, April 1998 transcript, at 133). The boiler may not come 
out of the manufacturer's factory as a completely assembled product 
ready for shipment, due to a heavy bulk or other considerations. It may 
be shipped in subsections that are assembled together in the field. 
However, when assembled, the boiler would conform to the manufacturer's 
predefined design for its basic model.
    The Council of Industrial Boiler Owners stated that even though 
there were no clear-cut criteria on what constitutes a packaged boiler, 
generally a boiler will not be considered a packaged boiler if it needs 
field welding, pressure parts, or fabrication of the assembly at the 
site. (CIBO, April 1998 transcript, at 136).
    The October 1998 workshop participants also discussed what 
constitutes a packaged boiler. Weil-McLain Co. stated that the cast 
iron boiler industry subscribes to the definition of packaged boiler in 
the Hydronics Institute (HI) Standard, as ``a boiler-burner unit 
factory assembled and wired.'' (Weil-McLain Co., October 1998 
transcript, at 209). Weil-McLain stated that this definition is 
different from the EPCA definition, under which the boiler can be 
shipped in separate sections not assembled in the factory. Weil-McLain 
stated further that it sells cast iron boilers in three different ways: 
(1) Factory assembled and wired as defined by HI, so that the boilers 
can be installed at the site without any further assembly, (2) with 
only the heat exchanger sections bolted together in the factory, and 
with these and other boiler components (e.g., burner, controls and 
jacket) shipped in separate sections for subsequent assembly at the job 
site, and (3) through boiler distributors, who maintain inventories of 
heat exchanger sections, controls and burners (or order them directly 
from their respective manufacturers), and who either ship all the 
necessary components, or have manufacturers ship some or all of the 
components, to the customer for assembly as a complete boiler at the 
customer's site. Weil-McLain stated that the third manner accounts for 
probably 90 percent of their sales and asked whether the manufacturer 
would be held accountable for the performance of boilers sold in this 
way since they had no control over the distributors and how the unit 
was assembled. Mestek, Inc. agreed with Weil-McLain. (Mestek, October 
1998 transcript, at 214).
    Weil-McLain also stated that for every model of boiler that it 
sells for field assembly, it also sells a packaged boiler of the same 
design factory assembled and wired (as per HI definition). These 
factory assembled boilers are tested and certified by the Hydronics 
Institute. Weil-McLain stated that it will guarantee the efficiency 
rating of boilers that are not factory assembled, if all the components 
used in the field assembly (including cast iron heat exchanger 
sections, burner, and controls) are identical (by model, by type, and 
by design) to those on the factory assembled boiler. However, Weil-
McLain stated that it can not guarantee the efficiency of field-
assembled boilers with Weil-McLain cast iron sections, if these use 
burners that were not specified by the company and not tested and 
certified by HI.
    For purposes of this rulemaking, the definition in EPCA for 
packaged boilers is the governing definition. It seems obvious that 
boilers sold in the first two ways described by Weil-McLain fit within 
the EPCA's definition of packaged boiler. As to the third, we 
considered the statements by Weil-McLain and Mestek on sectional cast 
iron boilers, and believe that these boilers also meet the statute's 
definition of a packaged boiler. This conclusion is supported in part 
by our belief that the wording in the definition, ``usually shipped in 
one or more sections,'' is designed to include not only steel and 
copper boilers, which are usually shipped as completely assembled 
units, but also large sectional cast iron boilers, which can be shipped 
in sections. This language would become almost meaningless if the 
definition were construed as excluding boilers sold in the third 
manner, since it appears that 90 percent of cast iron boilers are 
shipped in this way, i.e., components are shipped by distributors or 
separate manufacturers, sometimes from distinct locations. In addition, 
cast iron boilers are a major portion of the commercial boilers that 
provide space heating in buildings. To exclude boilers shipped in this 
manner from coverage under EPCA would, therefore, exclude a major share 
of commercial boilers from the statute's reach. We see no basis for 
concluding that Congress intended such an

[[Page 48842]]

exclusion. In this regard, the statute does not state that the 
components of a packaged boiler must be shipped from the same initial 
location, or at the same time.
    Furthermore, we agree with the manufacturers' concern over the use 
of burners not approved and specified by the boiler manufacturers. EPCA 
defines ``manufacturer'' as ``any person who manufactures a consumer 
product'' and ``manufacture'' to mean ``manufacture, produce, assemble 
or import.'' (42 U.S.C. 6291(12) and (10)). Therefore, we construe EPCA 
as meaning that a firm that produces a boiler in its entirety, or that 
specifies and approves a boiler's components by make and model numbers, 
including burners or other components produced by others, is a 
manufacturer of that boiler within the meaning of the statute. If a 
distributor, installer or another vendor sells a boiler with components 
that are not specified and approved by another manufacturer, we 
consider that vendor to be the manufacturer by virtue of having 
assembled the boiler.
    We believe that the definition of packaged boilers, which may 
consist of boilers shipped in major sub-assemblies for ease of 
transport and designed to fit together at customers' sites, is clear 
enough to distinguish them from custom-designed, field-constructed 
boiler systems, which generally require alteration, cutting, drilling, 
threading, welding or similar tasks by the installer. In this respect 
no additional clarification is needed to establish the definition of 
packaged boilers beyond the text that appears in the statute.

3. Application

    Participants at the April 1998 workshop raised questions regarding 
the effect of a packaged boiler's end use on its coverage under a DOE 
test procedure, since the statute does not explicitly limit its type of 
application. Several attendees, including GAMA and Lennox International 
asserted that EPCA requirements are based on ASHRAE Standard 90.1, and 
that the standard's scope is limited to heating products for space 
conditioning and service water only. (GAMA, April 1998 transcript, at 
144; Lennox, April 1998 transcript, at 237).
    By its title, ``Energy Efficiency Design of New Buildings except 
Low-Rise Residential Buildings'' ASHRAE Standard 90.1 indicates that it 
is concerned with minimizing energy consumption in the operation and 
maintenance of the building per se (that is, energy consumption with 
respect to the function of the building and the comfort of the 
occupants). While ASHRAE Standard 90.1-1989 contains no specific 
language excluding any specific type of heating products installed in 
the building, the test procedures and standards referenced by ASHRAE 
Standard 90.1 do appear in the section for HVAC equipment (Section 10 
of ASHRAE Standard 90.1-1989, Heating, Ventilation, and Air-
Conditioning (HVAC) Equipment). A recent major revision to ASHRAE 90.1, 
entitled ASHRAE Standard 90.1-1999, revised the Title, Purpose, and 
Scope (TPS) of the standard to exclude from coverage ``equipment and 
portions of building systems that use energy primarily to provide for 
industrial, manufacturing or commercial processes.''
    We also reviewed the statute to ascertain its intent with respect 
to the end use of a packaged boiler. The review indicated the 
following:
    (1) In the section that defines ``packaged boiler,'' the statute 
does not explicitly specify the end use of the boiler.
    (2) In EPCA's list of ``covered equipment,'' warm-air furnaces, 
which are used for space heating, and packaged boilers are entered 
together as a single item. EPCA, section 340(1)(E), 42 U.S.C. 
6311(1)(B).
    (3) EPCA groups packaged boilers with other covered products, 
including small commercial packaged air conditioning and heating 
products and storage water heaters, all of which are used exclusively 
for space conditioning and service water heating. EPCA sections 
340(2)(B) and 342(a), 42 U.S.C. 6311(2)(B) and 6313(a).
    (4) EPCA includes ``steam boilers'' in its list of industrial 
equipment, separate from warm air furnaces and packaged boilers. EPCA 
section 340(2)(B), 42 U.S.C. 6311(2)(B).
    (5) The Report that accompanied H.R. 776, the House version of 
EPACT, states that the Act ``amends existing law to set minimum energy 
efficiency standards for electrical air conditioning, electrical 
heating and gas heating equipment, boilers and water heaters intended 
for use in commercial buildings. * * * The standards * * * were 
developed * * * in ASHRAE Standard 90.1.'' HR Report No. 474, 102nd 
Congress, 2nd Session, Part 1, at 175 (1992).
    (6) The conservation standards prescribed in EPCA for heating and 
air conditioning products coincide with those contained in ASHRAE 
Standard 90.1 at the time of enactment, and the statute provides for 
adoption by the Department, under prescribed conditions, of future 
amendments by ASHRAE to Standard 90.1. 42 U.S.C. 6313(a)(1)-(6).
    On the basis of the above review, we believe that the intent of the 
statute is to apply the term ``packaged boiler'' to commercial boilers 
used in buildings for heating, space conditioning and service water 
heating, and to designate the term ``steam boilers'' for other 
industrial applications, such as for manufacturing processes and power 
generation. Therefore, consistent with the comments from the April 1998 
workshop, under DOE's proposed definition of commercial packaged boiler 
EPCA efficiency requirements would apply only to boilers that, to any 
significant extent, are distributed for heating, space conditioning, or 
service water heating applications in buildings.\1\
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    \1\ Boilers that provide service water are generally referred to 
as ``hot water supply boilers.'' For the most part, the Department 
is addressing the efficiency requirements for this product in a 
separate, parallel rulemaking that concerns commercial water heating 
products. The instant rulemaking covers commercial packaged boilers 
that provide service water, however, in two instances. First, a 
boiler that is covered by the water heating requirements, but that 
is also distributed to a significant extent for heating or space 
conditioning applications, would have to comply with both sets of 
requirements. Second, a service water heating boiler that is not 
subject, under Addendum n to ASHRAE Standard 90.1-1989, to the 
efficiency requirements that apply to commercial water heaters, 
would have to meet the requirements for boilers.
---------------------------------------------------------------------------

4. Capacity
    As mentioned above, participants at the April 1998 workshop 
discussed the scope of the definition of packaged boiler with respect 
to capacity (size). Some attendees suggested that size or rated 
capacity can be a possible criterion for defining the scope of coverage 
in a DOE test procedure for packaged boilers. As indicated previously, 
ANSI Standard Z21.13 limits itself to low pressure steam and hot water 
boilers with less than 12,500,000 Btu per hour input. A review of 
commercial boilers in the 1998 certified rating directory of the 
Hydronics Institute showed the largest capacity boiler to be a gas-
fired heating unit with approximately 14,000,000 Btu per hour gross 
output, which would imply that packaged low pressure steam and hot 
water heating boilers are produced in quantity with output capacities 
of up to approximately 14 million Btu per hour. However, the California 
Energy Commission (CEC) stated that the statute does not provide an 
upper limit on capacity in its definition of packaged boilers, and 
asserted that one cannot therefore specify an upper limit on capacity 
in a DOE test procedure for them.

[[Page 48843]]

    We agree with CEC's statement that the statute does not specify an 
upper limit on the capacity. We also understand that there are packaged 
boilers used for heating buildings, especially of the fire tube and 
water tube design, whose capacities greatly exceed the capacity values 
specified in ANSI Standard Z21.13 or those in the Hydronics Institute's 
certified rating directory. Therefore, we see no basis to conclude that 
EPCA covers only commercial packaged boilers below a certain size, and 
we include no upper limit on capacity in today's proposed definition of 
the product. Consequently, the proposed test procedure would apply to 
commercial packaged boilers regardless of size. Nevertheless, DOE 
recognizes that the limited quantities of the types of high-capacity 
boilers used for space heating, coupled with their large capacities, 
may make their testing under a DOE test procedure in laboratory 
conditions costly or impractical. Therefore, we solicit comments from 
all stakeholders on whether there is an upper limit on capacity above 
which the testing procedure proposed today would be unduly burdensome 
to conduct, and thus improper to prescribe under the provisions of EPCA 
(42 U.S.C. 6314 (a) (2)).
5. Operating Characteristics
    During the April 1998 workshop, attendees raised the coverage issue 
for packaged high pressure boilers. CIBO and others pointed out that 
when the end user applies a packaged boiler to produce hot water and 
steam for heating in industrial and manufacturing processes, 
considerations other than efficiency at steady state may strongly 
influence the selection and operation of the boilers. (CIBO, April 1998 
transcript, at 145). The American Boiler Manufacturers Association 
(ABMA) and CIBO stated that the operation of packaged high pressure 
steam and high temperature hot water boilers for industrial processing 
is different from the low pressure steam and hot water heating boilers 
typically used in space heating and service water heating applications. 
(CIBO, April 1998 transcript, at 145).
    According to Chapter 10, Steam Systems, of the 1996 ASHRAE HVAC 
System and Equipment Handbook, investment and operating cost 
considerations, energy efficiency, and control stability all require 
the pressure to be held to a minimum value that will accomplish the 
required heating task. The text goes on to say that space and domestic 
water heating can best be accomplished with low-pressure systems. 
During the October 1998 workshop, NIST proposed in its recommendation 
report that only packaged low pressure steam and hot water boilers 
should be covered in the proposed test procedure. The CEC objected to 
that proposal. CEC stated the opinion that the statute sets a minimum 
efficiency standard for all packaged boilers, which it considers to 
include high pressure boilers, and that DOE cannot limit the scope of 
the test method to low pressure steam and hot water boilers. (CEC, 
October 1998 transcript, at 233). The Natural Resources Canada stated 
that smaller packaged high pressure boilers are used in district 
heating applications, where the boilers are located in a small building 
near the commercial buildings in question and therefore, the high 
pressure boilers used in those applications should be covered. (NRC, 
October 1998 transcript, at 241). Other attendees at the workshop 
stated that high pressure utility boilers and central station boilers 
are not used in commercial buildings and hence should not be covered by 
the DOE test procedure. (Laclede Gas Company, October 1998 transcript, 
at 246; GAMA, October 1998 transcript, at 246; PNNL, October 1998 
transcript, at 248).
    No language in EPCA excludes packaged high pressure boilers from 
coverage under the statute. Moreover, based on the above, we believe 
there are instances where high pressure packaged boilers are used for 
heating buildings. Therefore, under today's proposed rule, EPCA's 
efficiency requirements would in effect apply to packaged high pressure 
boilers which, to any significant extent, are distributed for use for 
space conditioning in buildings.
    During the two DOE workshops, participants expressed differing 
opinions on the coverage of high pressure boilers, and we realize that 
there may not be clear-cut criteria for distinguishing a packaged high 
pressure boiler that can be used for space conditioning. Also, as 
discussed above under the issue of capacity, the limited quantities and 
large sizes of packaged high pressure boilers employed in space heating 
may make testing under the proposed DOE procedure unduly burdensome. 
Therefore, we are soliciting comments from all stakeholders on the 
options of:
    (1) Limiting application either of all EPCA efficiency 
requirements, or of only the proposed DOE test procedure, to packaged 
high pressure boilers that are principally designed for heating 
buildings, or
    (2) Limiting coverage of packaged high pressure boilers to a 
certain maximum working pressure, such as 150 psig, above which one is 
unlikely to use a boiler in a commercial building due to the pressure 
limitation of the terminal heating equipment.

C. Commercial Packaged Boiler Test Procedures for the Measurement of 
Energy Efficiency

    Section 343(a)(4)(A) of EPCA requires the test procedures for 
measuring the efficiency of commercial packaged boilers to be those 
generally accepted industry testing procedures or rating procedures 
that were developed or are recognized by the American Society of 
Heating, Refrigerating and Air Conditioning Engineers, Inc., as 
referenced in ASHRAE/IES Standard 90.1 and that were in effect on June 
30, 1992. 42 U.S.C. 6314(a)(4)(A). Also, if such an industry test 
procedure or rating procedure for commercial packaged boilers is 
amended, the Secretary must adopt such revisions unless the Secretary 
determines that to do so would not produce test results which reflect 
energy efficiency, energy use, and estimated operating costs, or that 
the procedures would be unduly burdensome to conduct. 42 U.S.C. 
6314(a)(4)(B).
    The version of ASHRAE Standard 90.1 in effect on June 30, 1992, 
references five industry test standards that apply to gas-fired boilers 
or oil-fired boilers or both. These are the ANSI Standard Z21.13-1987 
for gas-fired boilers; the HI Testing and Rating Standard for Heating 
Boilers, sixth edition, 1989, for gas and oil-fired boilers (HI 1989); 
ASME Power Test Codes (PTC) 4.1-1964 including the 1968 and 1969 
Addenda (reaffirmed R1991) for Steam Generating Units for fossil fuel 
boilers (ASME PTC 4.1); the Underwriters Laboratory Standard 795-1973 
for gas heating equipment (UL Standard 795); and the Underwriters 
Laboratory Standard UL Standard 726-1990 for oil-fired boilers (UL 
Standard 726). Of the five test standards, four are applicable to gas-
fired boilers and three are applicable to oil-fired boilers.
    Specifically, ANSI Standard Z21.13 covers gas-fired boilers and 
limits the size of the test boiler to 12,500,000 Btu per hour. The 1991 
version of the standard sets the outlet water temperature at 
180 deg.F2 deg.F without specifying an inlet test 
temperature. A value of 80 deg.F 10 deg.F, however, is 
specified in its Combustion Test section. A revision of the standard in 
1993 (ANSI Standard Z21.13a-1993) specifies the inlet temperature of 
80 deg.F10 deg.F.
    HI-1989 is applicable to both low pressure gas-fired and low 
pressure oil-fired heating boilers. For hot water

[[Page 48844]]

boilers, HI specifies a test condition of 200 deg.F outlet water 
temperature, and a range of temperature rises across the boiler, 
ranging from 120 deg.F to 165 deg.F, that result in a test inlet water 
temperature ranging from 35 deg.F to 80 deg.F.
    UL Standards 726 and 795 apply to both low pressure and high 
pressure boiler assemblies fired by oil and gas, respectively. The 
section on Combustion Test specifies that the boiler is to be installed 
and adjusted in accordance with manufacturer's instructions, and fired 
at the rated input until steady state combustion conditions of draft, 
fuel input rate, and flue gas temperature have been established. A flue 
loss which is based on the measured flue gas temperature and flue 
CO2 concentration is used in the efficiency evaluation. 
However, the standards do not provide a calculation procedure for the 
flue loss. The Continuous Operation Test does set the test conditions 
for steam pressure and water temperatures. However, these conditions 
are meant to ensure the continuous safe operation of the boiler and are 
not necessarily those intended for an energy performance test in 
accordance with the manufacturer's instructions. Also, the conditions 
for the Continuous Operations Test are set close to the limit setting 
of the pressure and/or temperature limit control device, and not at the 
settings for normal operation of the boilers.
    ASME PTC 4.1 is devised for steam generating units and high 
temperature water heaters. The standard is basically designed for an 
acceptance testing after installation. It does not specify the 
operational conditions for the efficiency test. The operational 
conditions are to be determined by agreement between interested 
parties. The standard recommends that in determining the efficiency of 
gaseous or liquid fuel-fired steam generating units, the test runs 
should preferably be not less than of four hours duration. The standard 
provides a procedure for an abbreviated efficiency test (Simplified 
Efficiency Test) based on the heat loss method, where only the major 
losses (flue losses and radiation or jacket loss) and the chemical heat 
in the fuel, are considered. Most manufacturers of packaged steel 
boilers use the Simplified Efficiency Test, and not the detailed 
procedure appearing in the standard.
1. Test Procedure and Test Conditions for Low Pressure Steam and Hot 
Water Boilers
    All ASHRAE Standard 90.1 referenced test standards from the above 
list are applicable to low pressure steam and hot water boilers. 
However, we understand that at present, most gas-fired boilers are 
rated for energy efficiency according to the ANSI Standard Z21.13, and 
most oil-fired boilers according to the HI-1989 standard. The two UL 
standards are mostly used for safety certification purposes. The ASME 
PTC 4.1 is used mostly for steel fire tube and water tube type boilers 
with low to very high pressure ratings.
    During the April 1998 workshop, it was suggested that, for 
comparison purposes, a single uniform test procedure for both gas-fired 
and oil-fired boilers would be preferable within the DOE test 
procedure. As stated, HI-1989 covers both gas and oil-fired boilers. 
However, in its Scope section, HI-1989 states that for gas-fired 
boilers, test reports from the American Gas Association (AGA) and 
Canadian Gas Association (CGA) Laboratories which comply with ANSI 
Standard Z21.13a-1993 are acceptable in lieu of the procedures spelled 
out in HI-1989. A comparison of HI-1989 and ANSI Standard Z21.13a-1993 
shows that the test setups, instrumentation, and other features of the 
two test standards for gas-fired boilers are very similar. The only 
differences are the water inlet and outlet conditions for hot water 
boilers, which are discussed later, and the insulation requirement of 
the test flue stack. The difference in the insulation requirement in 
the test setup is that the HI-1989 standard requires insulation of the 
test stack up to the location of flue gas temperature measurement, 
while ANSI Standard Z21.13 does not require any insulation. This would 
result in a higher combustion efficiency (and a lower calculated flue 
loss based on flue gas temperature) by using the ANSI Standard Z21.13 
procedure compared with the HI-1989 procedure, if all other test 
conditions were the same.
    Also at the October 1998 workshop, the CEC recommended that the HI-
1989 test standard be adopted by us as the test standard for both gas-
fired and oil-fired boilers. (CEC, April 1998 transcript, at 178).
    The American Boilers Manufacturers Association (ABMA) and Council 
of Industrial Boiler Owners (CIBO) state that EPACT requires the test 
procedures to be those generally accepted industry testing or rating 
procedures. (ABMA, April 1998 transcript, at 187; CIBO, April 1998 
transcript, at 194). ABMA states that in the boiler industry (those 
represented by ABMA) the HI standard was not generally accepted as the 
industry standard, and that the ASME PTC 4.1 is used more frequently 
than the HI standard. CIBO stated that members, who are involved in 
using packaged boilers for industrial type processing, follow ASME, and 
are not familiar with the HI standard. (CIBO, April 1998 transcript, at 
196). Also, during the October 1998 workshop, BR Laboratories Inc. 
stated that there is no difference in the test method for combustion 
efficiency between packaged low pressure boilers and high pressure 
boilers, and it believes that one can use the HI test procedure 
specified for low pressure boilers to also test the combustion 
efficiency of high pressure boilers. (BR Laboratories, October 1998 
transcript, at 242).
    As mentioned above, ANSI Standard Z21.13 and HI-1989 differ in 
their test conditions for both inlet and outlet water temperatures. At 
the April 1998 workshop, participants pointed out that the 
specification of water inlet temperature in ANSI Standard Z21.13a-1993 
is more precise (80 deg.F 10 deg.F) than the corresponding 
specification in HI-1989 (a range between 35 deg.F to 80 deg.F), and 
that efficiency values resulting from testing identical units under HI-
1989 could vary depending on the test inlet temperature. We understand 
that the reason for this latitude in the HI-1989 specification is that 
the boilers are tested at the manufacturers' locations, and not at the 
Hydronics Institute. Depending on the season and geographical location 
of the manufacturer, the inlet water temperature from the water main 
(or other source) can vary widely. During the workshop, York 
International cautioned that a more stringent test condition could 
require controlling the temperature of a large quantity of inlet water 
in a way that may be difficult to achieve. (York, April 1998 
transcript, at 194).
    At the October 1998 workshop, NIST proposed adopting the HI-1989 
standard for both gas and oil-fired low pressure steam and hot water 
boilers, with a revised inlet water temperature of 80 deg.F 
10 deg.F and an outlet temperature of 180 deg.F 
2 deg.F, to conform to the requirement of ANSI Standard 
Z21.13a-1993. This test, with a controlled inlet water temperature, may 
require temperature pre-conditioning of large volumes of inlet water in 
some regions of the country. However, since this procedure is specified 
in ANSI Standard Z21.13a-1993, and has been an established practice 
since 1993, we believe it will not be a major problem for a boiler of 
less than 12,500,000 Btu per hour rated input.
    The proposed temperature of 180 deg.F2 deg.F for the 
required outlet temperature for hot water boilers, as opposed to the 
200 deg.F 5 deg.F in the HI

[[Page 48845]]

standard, might produce a slight increase in the combustion efficiency 
value of oil-fired boilers currently tested by the HI standard (which 
is due to a lower flue gas temperature and flue loss). However, we 
believe that this increase would be small. BR Laboratories Inc. stated 
that the use of the HI standard's wide range for the permissible inlet 
water temperature would lessen the burden on manufacturers, and the 
inlet temperature specification has no impact on the efficiency. (BR 
Laboratories, October 1998 transcript, at 254-55). Weil-McLain agreed 
that the outlet water temperature has more of an impact on the 
combustion efficiency. A lower (180 deg.F) temperature would give those 
oil and power gas boilers currently tested to the HI standard a better 
efficiency value. (Weil-McLain, October 1998 transcript, at 257). 
However, for gas-fired boilers currently tested to the ANSI Standard 
Z21.13 standard, changing the outlet temperature from 180 deg.F (under 
current specification) to 200 deg.F (if the HI standard is used 
instead, as suggested) might cause their efficiency to degrade. 
Therefore, Weil-McLain recommended keeping the two standards, HI-1989 
and ANSI Standard Z21.13, with the HI standard for use with the power 
gas and oil-fired boilers, and the ANSI Standard Z21.13 for use with 
the gas-fired boilers. However, if a single test standard is needed, 
Weil-McLain would prefer the 180 deg.F outlet water temperature, since 
it reflects the current practice for testing gas-fired boilers, and is 
also the temperature tested under the Hydronics Institute auditing 
program.
    We also considered the other three test standards referenced by 
ASHRAE Standard 90.1-1989. Of these three test standards, the ASME PTC 
4.1 standard, with the exception of its Simplified Efficiency Test 
procedure, is intended for (large) steam generating heating and power 
boilers. It requires a detailed account of the energy expenditures of 
all components in the boiler system, and appears to be burdensome for 
smaller capacity boilers. The HI standard appears to be a satisfactory 
substitute for the ASME PTC 4.1 for low pressure steam boilers, since 
the test and calculation procedure in the HI standard is close to the 
Simplified Efficiency Test (Abbreviated Efficiency Test) of ASME PTC 
4.1. The two UL standards are mainly used for the safety certification 
of boilers. The test procedures for energy performance in the UL 
standards for low pressure boilers are similar to the HI-1989 standard. 
However, the UL standards do not provide a procedure for calculating 
flue loss. We thus believe that the HI-1989 standard is better equipped 
than the two UL standards for testing the energy efficiency of low 
pressure steam and hot water boilers.
    Even though there might be some differences in the test conditions 
between HI-1989 and ANSI Standard Z21.13, the attendees at the two 
workshops suggested that basically the HI test standard can be used to 
cover gas-fired and oil-fired low pressure heating boilers. We 
considered three options. The first is to adopt ANSI Standard Z21.13a 
for all gas-fired boilers and HI-1989 for all oil-fired boilers. This 
would make the currently listed efficiency values (in Hydronics 
Institute Certification Directory, for example) of boiler models that 
are already on the market to stay unchanged. However, because of the 
differences in test conditions between the two test standards, the gas-
and oil-fired boilers will not compare accurately. The second option is 
to adopt the HI-1989 test standard for both gas-and oil-fired heating 
boilers. This option may create the problem that for a gas-fired hot 
water boiler, the resulting efficiency based on a 200 deg.F outlet 
water temperature is likely to be less than its current value based on 
a 180 deg.F temperature. This may create a problem for those boilers 
that just meet the minimum efficiency standard specified in EPCA. The 
third option is to adopt the HI-1989 test standard for both gas-and 
oil-fired heating boilers, with a modification that the outlet 
temperature for hot water boilers be specified at 180 deg.F instead of 
at 200 deg.F. As discussed before, this option will cause an oil-fired 
hot water boiler to attain a test efficiency that could be slightly 
higher than its current value. However, we believe that no re-testing 
is necessary since the boiler's current efficiency value would be a 
conservative one. The other two factors that may cause the efficiency 
value of a gas-fired boiler to change under HI-1989 are the larger 
inlet temperature range permitted (35 deg.F to 80 deg.F) and the flue 
pipe insulation requirement (up to the point of flue temperature 
measurement location--12-inches maximum from the flue collar). However, 
we believe that the effect of these differences is small, since 
combustion efficiency is mainly a function of the outlet water or steam 
temperature (as discussed above), and the portion of the heat loss 
through the flue pipe that would affect the flue temperature 
measurement (and flue loss) due to the insulation is restricted to the 
first 12 inches of the flue pipe.
    Based on the above, we are proposing to adopt the HI-1989 standard 
as the DOE test procedure for gas and oil-fired, low pressure steam and 
hot water commercial packaged boilers, with the provisions that: (1) 
the outlet water temperature for hot water boilers be set at 180 deg.F 
2 deg.F, and (2) for gas-fired boilers, to calculate the 
flue loss a manufacturer may use the procedure specified in Exhibit D 
of ANSI Z21.13-1993 instead of the procedure in section 11.2 of HI-
1989.
    Based on the comments from CIBO that some manufacturers use mainly 
the ASME PTC 4.1 test standard and may not be familiar with the HI-1989 
test standard, we are proposing to allow manufacturers the alternative 
of using the Simplified Efficiency Test of ASME PTC 4.1, with the 
provisions that: (1) The inlet water temperature will range from 
35 deg.F to 80 deg.F, (2) for hot water boilers, the outlet water 
temperature will be 180 deg.F 2 deg.F, (3) for steam 
boilers, steam pressure will range from atmospheric (0 psig) to 2 psig; 
and (4) in the heat loss method of ASME PTC 4.1 for the determination 
of efficiency, the radiation loss term will be set to zero to obtain 
the combustion efficiency (of 100 percent minus percent flue loss).
    We believe the calculation procedures by the heat loss method 
according to HI-1989 and the Simplified Efficiency Test of ASME PTC 4.1 
are nearly identical, and that comparisons between the test results 
from the two standards would be valid when the Simplified Efficiency 
test is used with the above four provisions. We welcome comments from 
all stakeholders on today's proposed test procedures as described in 
this paragraph, and on whether we should adopt instead, one of the 
other considered options.
2. Testing for High Pressure Steam and High Temperature Water Boilers
    ASHRAE Standard 90.1-1999, modified the definition of a boiler 
(section 3.2 of ASHRAE Standard 90.1-1999, definitions) so that a 
boiler is defined as a ``self-contained, low pressure appliance for 
supplying steam or hot water.'' This definition is followed by a 
definition for packaged boilers, which is defined as a specific class 
of boilers. ASHRAE Standard 90.1-1989 did not include the term ``low 
pressure'' in the boiler definition, and did not include a definition 
for packaged boilers. For test procedures that are applicable to 
packaged high pressure steam and high temperature hot water boilers, 
ASHRAE Standard 90.1-1989 references three test procedures. They are 
ASME PTC 4.1 for steam boilers, UL Standard-795 for gas-fired heating 
equipment including boilers, and UL Standard-726 for oil-

[[Page 48846]]

fired boilers. Of these three test procedures, ASME PTC 4.1 provides 
detailed procedures for energy efficiency tests. However, ASME PTC 4.1 
does not specifically provide the test conditions with respect to steam 
pressure or water temperature. The intent of ASME PTC 4.1 is to guide 
the acceptance testing of large steam generating units, where the 
operational conditions are part of the agreements negotiated between 
the interested parties (Sections 3.01and 3.04 of ASME PTC 4.1).
    As described above in section II C, ASME PTC 4.1 also provides for 
an abbreviated (simplified, or short form) efficiency test for small 
heating and industrial steam generators. The two UL standards specify 
test conditions (installed and adjusted in accordance with the 
manufacturer's instructions and fired at the rated input) for 
determining steady state energy performance in their combustion test 
sections (see Section 36 of UL Standard 726 or Section 51.1 of UL 
Standard 495). However, the two standards do not provide procedures for 
the flue loss calculation.
    During the October 1998 workshop, BR Laboratories Inc. suggested 
that one can use the HI-1989 standard to test high pressure boilers, 
since the measurement requirements for combustion efficiency test are 
the same for both low and high pressure boilers. (BR Laboratories, 
October 1998 transcript, at 242). However, during the April 1998 
workshop, both ABMA and CIBO stated that their members use the ASME PTC 
4.1 test procedure, and are not familiar with the HI-1989 standard (see 
discussion under section II.C.1 for low pressure boilers above). 
Informal conversations with some steel boiler manufacturers indicated 
that industry manufacturers of steel fire tube and water tube boilers 
of all pressure ranges (from 15 psig steam pressure and up) use the 
short form test (the Simplified Efficiency Test) of ASME PTC 4.1 and 
not the HI-1989 standard.
    Based on a consideration of the above, we are proposing today to 
adopt the abbreviated efficiency test (the Simplified or short form 
Efficiency Test) as specified in section 1.07 of ASME PTC 4.1 as the 
DOE test procedure for packaged high pressure steam and high 
temperature hot water boilers covered by EPCA. Also, since the ASME PTC 
4.1 does not specify the test condition for the efficiency test, and 
the test conditions with respect to steam pressure and water 
temperature vary with the design of the boiler, we are proposing that 
the conditions specified in the two UL standards be specified as test 
conditions, i.e., the boiler must be installed and adjusted in 
accordance with the manufacturer's instructions and fired at its rated 
input. We further propose that the water temperature and steam pressure 
be prescribed to reflect the normal conditions for which the 
manufacturer designed the boiler. As stated previously, even though the 
calculation procedure for the heat input term (from chemical heat in 
the fuel only, ignoring any other heat credit) and the major heat loss 
terms in ASME PTC 4.1 are similar to those specified in the HI-1989, 
the steel boiler industry's familiarity with the test procedure would 
make the ASME PTC 4.1 test procedure less burdensome to these 
manufacturers.
    We welcome comments on the proposal to adopt the Simplified 
Efficiency Test of ASME PTC 4.1 for packaged high pressure boilers. In 
particular, we solicit suggestions on a uniform procedure for 
determining the normal steam pressures and water temperatures for which 
boilers are designed, perhaps based on (or with reference to) the 
maximum pressure ratings, and for specifying the corresponding 
conditions in the efficiency test procedures.
3. Provisions for Low Temperature Applications
    ASHRAE Standard 90.1 and the test standards referenced by it do not 
specifically provide test conditions for hot water boilers designed for 
low temperature applications (having a supply water temperature of 
140 deg.F or a return water temperature of 120 deg.F, or less). 
Attendees at the April 1998 workshop questioned whether a significant 
number of these boilers were sold on the market, and commented it was 
unnecessary for DOE to develop another set of test conditions that 
deviate from those specified in ASHRAE Standard 90.1. We agree with 
these comments and will not propose a different set of test inlet and 
outlet water temperatures for applications requiring low supply and 
return temperature settings.
4. Provision for Condensing Boilers
    ASHRAE Standard 90.1 and its referenced test standards do not 
specifically provide test conditions for a condensing boiler, which is 
a hot water boiler designed to condense part of the water vapor in the 
flue gases and which is equipped to collect and drain such condensate. 
Attendees at the April 1998 workshop commented that, because of the 
absence of commercial condensing boilers from the market, it was not 
necessary for DOE to develop a test procedure different from that 
specified in the ASHRAE Standard 90.1.
    We disagree with the comments from the workshop attendees on this 
issue. We are unable to conclude that commercial size condensing boiler 
models are unavailable in the market. Also, since condensing boilers 
are significantly more energy efficient than non-condensing boilers, we 
believe that even if there were presently no such boilers on the 
market, a test procedure should be in place so that any manufacturer of 
condensing boilers would have a readily available accurate method for 
testing them to establish their efficiencies for compliance with EPCA. 
In addition, a test procedure is needed for evaluating design options 
underlying any future minimum efficiency standards. Even though the 
ASHRAE Standard 90.1-referenced standards do not specify an appropriate 
test procedure, ASHRAE Standard 103-1993 has been in use over the last 
decade and provides a method for measuring the increased energy 
efficiency of residential condensing boilers under steady state test 
conditions. We believe that the method of collecting and measuring the 
quantity and the temperature of the flue condensate under steady state 
conditions at the maximum rated input over a 30 minute test period can 
also be applicable to a commercial condensing boiler. Therefore, we are 
proposing to adopt the procedure specified in sections 7.2.2.4, 7.8, 
9.2 and 11.3.7 of ASHRAE Standard 103-1993 as the test procedure for 
determining the incremental increase in energy efficiency due to the 
condensing feature of a such a boiler.
    In proposing the adoption of that test procedure, a slight 
modification is applied to the equation in Section 11.3.7.2 of ASHRAE 
103-1993 for steady state heat loss due to hot condensate flowing down 
the drain. In the aforementioned section, the assumed indoor 
temperature is specified as 70 deg.F, and the average outside 
temperature as 42 deg.F. The modification replaces both of these 
temperatures with the actual temperature of the test area. In addition, 
even though the boiler inlet water temperature may not be a major 
factor affecting the combustion efficiency of a non-condensing boiler, 
previous experience with residential condensing boilers indicates that 
the inlet water temperature has a significant effect on the amount of 
flue condensate produced, so a more precise specification is needed for 
the inlet temperature. Therefore, we are proposing that for testing a 
condensing boiler, the boiler inlet water temperature

[[Page 48847]]

be restricted to 80 deg.F5 deg.F instead of the range of 
35 deg.F to 80 deg.F specified for non-condensing boilers.
5. Modular Boilers and Multiple Boilers
    Participants at the DOE April 1998 workshop raised the issue of how 
to rate a modular boiler assembly (consisting of a group of identical, 
smaller boilers or modules, usually of less than 400,000 Btu/h input 
each, installed as a unit) or a multiple boiler system (consisting of a 
group of individual boilers, not necessarily of identical design, 
installed as a system). Since a modular boiler assembly consists of 
identical individual boilers or modules, it was suggested that for 
those types of packaged boilers, only a single boiler from the assembly 
needs to be tested and rated, and that the efficiency rating of the 
boiler assembly can be derived from the efficiency of the module. For a 
multiple boiler system, participants suggested that testing and rating 
the individual boilers in the system should be sufficient, and that the 
rating of the system as a whole can be derived from the individual 
ratings. There was no disagreement on either of these suggestions from 
the workshop attendees, and at the October 1998 workshop, NIST 
recommended these suggestions for adoption.
    The Department is proposing today that the efficiency rating for a 
packaged modular boiler system with the individual modules or boilers 
of identical design and construction may be based on the rating for 
only one boiler module in the assembly. For a multiple boiler system 
where the individual boilers are of different designs, each boiler of a 
different design will be considered a separate packaged boiler and must 
meet the minimum efficiency standard by using the test procedure 
prescribed for this product.
6. Testing and Rating a Steam and Hot Water Boiler
    The test procedures DOE proposes today provide methods for testing 
both hot water and steam boilers. A packaged boiler designed to produce 
only hot water or only steam would obviously be tested and rated for 
efficiency under today's proposed rules only in the applicable mode. As 
to boilers capable of supplying either hot water or steam, DOE 
understands that manufacturers customarily test and rate them in the 
steam mode, and only sometimes in the hot water mode. Moreover, 
participants at the April 1998 workshop indicated that industry 
practice is commonly to use the efficiency rating derived from the 
steam boiler test as the efficiency rating when the boiler is sold as a 
hot water boiler. (April 14 workshop at page 226) Since the steam test 
will generally provide an efficiency rating lower than the rating 
obtained by a hot water test, NIST recommended that we should also 
accept this practice. (October 13 Workshop at page 199)
    In view of the above, DOE proposes to require that a boiler that 
can be used for both steam and hot water applications must be tested as 
a steam boiler, as required by HI-1989 (see Sections 8.1.4.1 and 
8.1.4.2 of HI-1989), and that such efficiency rating must be reported 
to DOE and used to determine whether the boiler complies with the 
applicable efficiency standard. We also propose to allow the 
manufacturer the option of either using such efficiency rating for both 
the steam and water operations of the boiler, or, if the manufacturer 
prefers to report a different rating for water operation, using a 
rating obtained by also testing the boiler in accordance with the test 
procedure for a hot water boiler, as allowed in HI-1989. Section 
431.362(d)(1)(ii) of the proposed rule implements the testing aspect of 
these proposals. Although the proposed rule does not include language 
implementing the rating and reporting proposals, DOE intends to include 
it in the final rule.

III. Procedural Requirements

A. Review Under the National Environmental Policy Act of 1969

    EPCA prescribes energy efficiency standards and test procedures for 
commercial products, and in today's rule, we propose to implement these 
requirements for commercial packaged boilers. We have reviewed the 
proposed rule under the National Environmental Policy Act of 1969 
(NEPA), 42 U.S.C. 4321 et seq., the regulations of the Council on 
Environmental Quality, 40 CFR Parts 1500-1508, the Department's 
regulations for compliance with NEPA, 10 CFR Part 1021, and the 
Secretarial Policy on the National Environmental Policy Act (June 
1994). Implementation of the proposed rule would not result in 
environmental impacts. We have therefore determined that the proposed 
rule is covered under the Categorical Exclusion found at paragraph A6 
of appendix A to subpart D of the Department's NEPA Regulations, which 
applies to rulemakings that are strictly procedural. Accordingly, 
neither an environmental assessment nor an environmental impact 
statement is required.

B. Review Under Executive Order 12866, ``Regulatory Planning and 
Review'

    Today's proposed rule has been determined not to be a ``significant 
regulatory action,'' as defined in section 3(f) of Executive Order 
12866, ``Regulatory Planning and Review.'' 58 FR 51735 (October 4, 
1993). Accordingly, this action was not subject to review under the 
Executive Order by the Office of Information and Regulatory Affairs.

C. Review Under the Regulatory Flexibility Act

    The Regulatory Flexibility Act of 1980, 5 U.S.C. 603, requires the 
preparation of an initial regulatory flexibility analysis for every 
rule which the agency must propose for public comment, by law, unless 
the agency certifies that the rule, if promulgated, will not have a 
significant economic impact on a substantial number of small entities. 
A regulatory flexibility analysis examines the impact of the rule on 
small entities and considers alternative ways of reducing negative 
impacts.
    The Small Business Administration considers an entity to be a small 
business if, together with its affiliates, it employs fewer than a 
threshold number of workers specified in 13 CFR Part 121. The threshold 
number for SIC classification 3433, which includes commercial packaged 
boilers, and other non-electric heating equipment, is 500. We estimate 
that no more than 29 firms manufacture commercial packaged boilers, and 
of these, the majority are considered small businesses. The number of 
small businesses that manufacture commercial-sized packaged boilers 
covered by the EPACT standards (with capacities of 300,000 Btu per hour 
and above) could be smaller.
    EPCA establishes efficiency standards for commercial packaged 
boilers and requires the Department to prescribe test procedures that 
are accepted by industry and referenced in ASHRAE Standard 90.1. For 
the most part, EPCA specifies the standards and test procedures 
incorporated in today's proposed rule. Therefore, any costs of 
complying with them are imposed by EPCA and not the rule. Moreover, 
today's proposed rule codifies testing procedures that are already 
generally employed by manufacturers, both large and small.
    The cost of meeting the requirements of today's proposed rule will 
depend on the number of basic models a manufacturer produces and the 
number of these models that do not comply with the efficiency standards 
imposed by

[[Page 48848]]

EPCA and would consequently need to be redesigned or removed from the 
market. Since the efficiency standards have been in force by statute 
since 1994, we expect that a negligible number of products presently 
manufactured would need to be redesigned or discontinued. The cost of 
performing the proposed test procedures depends on unit size, but could 
amount to several thousands of dollars per basic model. To the extent 
that manufacturers must already test their products for efficiency to 
assure that they meet the existing statutory efficiency standards, or 
for any other reason, they will not incur new costs in complying with 
today's proposed rule. We believe that any significant economic impact 
will fall only on those firms which do not now routinely test their 
products. We further believe that testing is a widely accepted 
practice, and that companies that do not test are rare and do not 
represent a substantial number of small entities.
    We have, at most, very limited discretion to apply different 
requirements to small manufacturers. EPCA mandates uniform standards 
and test procedures for commercial products. In this regard, it is 
noteworthy that although EPCA contains a ``small manufacturer 
exemption'' for consumer products (42 U.S.C. 6295 (t)), it includes no 
such exemption for commercial and industrial products.
    Based on the above, we conclude that the proposed rule would not 
impose a significant impact on a substantial number of small 
businesses.

D. Review Under Executive Order 13132, ``Federalism''

    Executive Order 13132 (64 FR 43255, August 4, 1999) imposes certain 
requirements on agencies formulating and implementing policies or 
regulations that preempt State law or that have Federalism 
implications. Agencies are required to examine the constitutional and 
statutory authority supporting any action that would limit the 
policymaking discretion of the States and carefully assess the 
necessity for such actions. The proposed rule published today would not 
regulate the States. The proposed rule would primarily codify energy 
efficiency standards and test procedures already established in EPCA 
for commercial packaged boilers. We have determined that today's rule 
does not have a substantial direct effect on the States, on the 
relationship between the national government and the States, or on the 
distribution of power and responsibilities among the various levels of 
government. No further action is required by Executive Order 13132.

E. Review Under Executive Order 12630, ``Governmental Actions and 
Interference With Constitutionally Protected Property Rights'

    We have determined under Executive Order 12630, ``Governmental 
Actions and Interference with Constitutionally Protected Property 
Rights,'' 52 FR 8859 (March 18, 1988), that this proposed rule would 
not result in any takings which might require compensation under the 
Fifth Amendment to the United States Constitution.

F. Review Under the Paperwork Reduction Act

    Today's proposed rule will primarily codify energy efficiency 
standards and test procedures already established in EPCA for 
commercial packaged boilers and will not require any additional reports 
or record-keeping. Accordingly, this action was not subject to review 
under the Paperwork Reduction Act.

G. Review Under Executive Order 12988, ``Civil Justice Reform''

    With respect to the review of existing regulations and the 
promulgation of new regulations, Section 3(a) of Executive Order 12988, 
``Civil Justice Reform,'' 61 FR 4729 (February 7, 1996), imposes on 
executive agencies the general duty to adhere to the following 
requirements: (1) Eliminate drafting errors and ambiguity; (2) write 
regulations to minimize litigation; and (3) provide a clear legal 
standard for affected conduct rather than a general standard and 
promote simplification and burden reduction. With regard to the review 
required by Section 3(a), Section 3(b) of the Executive Order 
specifically requires that Executive agencies make every reasonable 
effort to ensure that the regulation: (1) Clearly specifies the 
preemptive effect, if any; (2) clearly specifies any effect on existing 
Federal law or regulation; (3) provide a clear legal standard for 
affected conduct while promoting simplification and burden reduction; 
(4) specifies the retroactive effect, if any; (5) adequately defines 
key terms; and (6) addresses other important issues affecting clarity 
and general draftsmanship under any guidelines issued by the Attorney 
General. Section 3 (c) of the Executive Order requires agencies to 
review regulations in light of applicable standards Section 3(a) and 
Section 3(b) to determine whether they are met or it is unreasonable to 
meet one or more of them.
    We reviewed today's proposed rule under the standards of Section 3 
of the Executive Order and determined that, to the extent permitted by 
law, it meets the requirements of those standards.

H. Review Under Section 32 of the Federal Energy Administration Act of 
1974

    Under section 301 of the Department of Energy Organization Act 
(Pub. L. 95-91), the Department of Energy must comply with section 32 
of the Federal Energy Administration Act of 1974, as amended by the 
Federal Energy Administration Authorization Act of 1977. 15 U.S.C. 788. 
Section 32 provides in essence that, where a proposed rule contains or 
involves use of commercial standards, the notice of proposed rulemaking 
must inform the public of the use and background of such standards.
    The rule proposed in this notice incorporates certain commercial 
standards which EPCA requires to be used. These include testing 
standards referenced by ASHRAE Standard 90.1-1989 for the measurement 
of steady state combustion efficiency of commercial packaged boilers. 
Because we have very limited discretion to depart from the standards 
referenced in ASHRAE/IES 90.1, Section 32 of the FEAA does not apply to 
them.
    The only standard incorporated in this proposed rule that is not 
referenced by ASHRAE Standard 90.1-1989 is ASHRAE Standard 103-1993, `` 
Method of Testing for Annual Fuel Utilization Efficiency of Residential 
Central Furnaces and Boilers.'' We propose to adopt this standard to 
obtain a suitable optional test procedure for condensing boilers, which 
are not covered by the test procedures in ASHRAE Standard 90.1-1989. We 
have evaluated this standard and are unable to conclude whether it 
fully complies with the requirements of section 32(b) of the Federal 
Energy Administration Act, i.e., that it was developed in a manner that 
fully provides for public participation, comment and review.
    As required by section 32(c) of the Federal Energy Administration 
Act, we will consult with the Attorney General and the Chairman of the 
Federal Trade Commission concerning the impact of this standard on 
competition, prior to prescribing a final rule.

I. Review Under Unfunded Mandates Reform Act of 1995

    Section 202 of the Unfunded Mandates Reform Act of 1995 (``Unfunded 
Mandates Act'') requires that we prepare a budgetary impact statement 
before promulgating a rule that includes a Federal mandate that may 
result in expenditure by state, local, and tribal governments, in the

[[Page 48849]]

aggregate, or by the private sector, of $100 million or more in any one 
year. The budgetary impact statement must include: (i) Identification 
of the Federal law under which the rule is promulgated; (ii) a 
qualitative and quantitative assessment of anticipated costs and 
benefits of the Federal mandate and an analysis of the extent to which 
such costs to state, local, and tribal governments may be paid with 
Federal financial assistance; (iii) if feasible, estimates of the 
future compliance costs and of any disproportionate budgetary effects 
the mandate has on particular regions, communities, non-Federal units 
of government, or sectors of the economy; (iv) if feasible, estimates 
of the effect on the national economy; and (v) a description of the 
Department's prior consultation with elected representatives of state, 
local, and tribal governments and a summary and evaluation of the 
comments and concerns presented.
    We have determined that the action proposed today does not include 
a Federal mandate that may result in estimated costs of $100 million or 
more to state, local or to tribal governments in the aggregate or to 
the private sector. Therefore, the requirements of Sections 203 and 204 
of the Unfunded Mandates Act do not apply to this action.

J. Review Under the Plain Language Directives

    The President's Memorandum on ``Plain Language in Government 
Writing,'' 63 FR 31885 (June 10, 1998) directs each Federal agency to 
write all published rulemaking documents in plain language. The 
Memorandum includes general guidance on what constitutes ``plain 
language.'' Plain language requirements will vary from one document to 
another, depending on the intended audience, but all plain language 
documents should be logically organized and clearly written.
    We have tried to make this proposed rule easy to understand. We are 
also requesting suggestions on how to improve its readability further.

K. Review Under the Treasury and General Government Appropriations Act, 
1999

    Section 654 of the Treasury and General Government Appropriations 
Act, 1999 (Pub. L. No. 105-277) requires Federal agencies to issue a 
Family Policymaking Assessment for any proposed rule or policy that may 
affect family well-being. Today's proposal would not have any impact on 
the autonomy or the integrity of the family as an institution. 
Accordingly, DOE has concluded that it is not necessary to prepare a 
Family Policymaking Assessment.

IV. Public Comment

A. Written Comment Procedures

    We invite interested persons to participate in the proposed 
rulemaking by submitting data, comments, or information with respect to 
the issues set forth in today's proposed rule to Ms. Brenda Edwards-
Jones, at the address indicated at the beginning of the notice. We will 
consider all submittals received by the date specified at the beginning 
of this notice in developing the final rule.
    According to 10 CFR 1004.11, any person submitting information 
which he or she believes to be confidential and exempt by law from 
public disclosure should submit one complete copy of the document and 
ten (10) copies, if possible, from which the information believed to be 
confidential has been deleted. The Department of Energy will make its 
own determination with regard to the confidential status of the 
information and treat it according to its determination.
    Factors of interest to us when evaluating requests to treat as 
confidential information that has been submitted include:
    (1) A description of the items;
    (2) An indication as to whether and why such items are customarily 
treated as confidential within the industry;
    (3) Whether the information is generally known by or available from 
other sources;
    (4) Whether the information has previously been made available to 
others without obligation concerning its confidentiality;
    (5) An explanation of the competitive injury to the submitting 
person which would result from public disclosure;
    (6) An indication as to when such information might lose its 
confidential character due to the passage of time; and
    (7) Why disclosure of the information would be contrary to the 
public interest.

B. Public Workshop

1. Procedures for Submitting Requests To Speak
    You will find the time and place of the public workshop listed at 
the beginning of this notice of proposed rulemaking. We invite any 
person who has an interest in today's notice of proposed rulemaking, or 
who is a representative of a group or class of persons that has an 
interest in these proposed rules, to make a request for an opportunity 
to make an oral presentation. If you would like to attend the public 
workshop, please notify Ms. Brenda Edwards-Jones at (202) 586-2945. You 
may hand deliver requests to speak to the address indicated at the 
beginning of this notice between the hours of 8 a.m. and 4 p.m., Monday 
through Friday, except Federal holidays, or send them by mail.
    The person making the request should state why he or she, either 
individually or as a representative of a group or class of persons, is 
an appropriate spokesperson, briefly describe the nature of the 
interest in the rulemaking, and provide a telephone number for contact. 
We request each person selected to be heard to submit an advance copy 
of his or her statement at least two weeks prior to the date of this 
workshop as indicated at the beginning of this notice. We, at our 
discretion, may permit any person wishing to speak who cannot meet this 
requirement to participate if that person has made alternative 
arrangements with the Office of Building Research and Standards in 
advance. The letter making a request to give an oral presentation must 
ask for such alternative arrangements.
2. Conduct of Workshop
    The Department will designate a Department official to preside at 
the workshop and we may also use a professional facilitator to 
facilitate discussion. The workshop will not be a judicial or 
evidentiary-type hearing, but the Department will conduct it in 
accordance with 5 U.S.C. 553 and Section 336 of the Act and a court 
reporter will be present to record the transcript of the workshop. We 
reserve the right to schedule the presentations by workshop 
participants, and to establish the procedures governing the conduct of 
the workshop.
    The Department will permit each participant to make a prepared 
general statement, limited to five (5) minutes, prior to the discussion 
of specific topics. The general statement should not address these 
specific topics, but may cover any other issues pertinent to this 
rulemaking. The Department will permit other participants to briefly 
comment on any general statements. We will divide the remainder of the 
hearing into segments, with each segment consisting of one or more of 
the following specific topics covered by this notice:
Packaged Boiler Definition and Scope of Coverage
     Method of Shipment and Assembly.
     Boiler Application.
     Boiler Capacity.
     Boiler Operation.

[[Page 48850]]

Test Procedures and Energy Efficiency Standards for Commercial Packaged 
Boilers
     Test Procedure and Test Conditions for Low Pressure 
Boilers.
     Test Procedure and Test Conditions for High Pressure 
Boilers.
     Boilers Designed for Low Water Temperature Applications.
     Condensing Boilers.
     Modular Boilers and Multiple Boilers.
     Testing and Rating a Steam and Hot Water Boiler.
     Other Test Standard Topics.
    The Department will introduce each topic with a brief summary of 
the relevant provisions of the proposed rule, and the significant 
issues involved. We will then permit participants in the hearing to 
make a prepared statement limited to five (5) minutes on that topic. At 
the end of all prepared statements on a topic, the Department will 
permit each participant to briefly clarify his or her statement and 
comment on statements made by others. Participants should be prepared 
to answer questions by us and by other participants concerning these 
issues. Our representatives may also ask questions of participants 
concerning other matters relevant to the hearing. The total cumulative 
amount of time allowed for each participant to make prepared statements 
must be 20 minutes.
    The official conducting the hearing will accept additional comments 
or questions from those attending, as time permits. The presiding 
official will announce any further procedural rules, or modification of 
the above procedures, needed for the proper conduct of the hearing.
    We will make the entire record of this rulemaking, including the 
transcript, available for inspection in the Department's Freedom of 
Information Reading Room. Any person may purchase a copy of the 
transcript from the transcribing reporter.

C. Issues on Which Comments Are Requested

    We are interested in receiving comments and/or data concerning the 
feasibility, workability and appropriateness of the test procedures 
proposed in today's rulemaking. Also, we welcome discussion on 
improvements or alternatives to the proposed approaches. We also invite 
comments on how to make this proposed rule easier to understand. For 
example:
     Are the requirements in the rule clearly stated?
     Have we organized the material to suit your needs, or 
would a different organization be better?
     Can we improve the rule's format?

List of Subjects in 10 CFR Part 431

    Administrative practice and procedure, Energy conservation, 
Incorporation by reference.

    Issued in Washington, DC, on May 8, 2000.
Dan W. Reicher,
Assistant Secretary, Energy Efficiency and Renewable Energy.

    For the reasons set forth in the preamble, Title 10, Part 431 of 
the Code of Federal Regulations is proposed to be amended as set forth 
below:

PART 431--ENERGY EFFICIENCY PROGRAM FOR CERTAIN COMMERCIAL AND 
INDUSTRIAL EQUIPMENT

    1. The authority citation for Part 431 continues to read as 
follows:


    Authority: 42 U.S.C. 6311-6316.

    2. Subpart K is added to read as follows:
Subpart K--Commercial Packaged Boilers.
Sec.
431.351   Purpose and scope.
431.352   Definitions for commercial packaged boilers.

Test Procedures

431.361   Materials incorporated by reference.
431.362   Uniform test method for the measurement of energy 
efficiency of commercial packaged boilers.

Energy Conservation Standards

431.371   Energy conservation standards and effective dates.

Subpart K--Commercial Packaged Boilers


Sec. 431.351  Purpose and scope.

    This subpart contains energy conservation requirements for certain 
commercial packaged boilers, pursuant to Part C of Title III of the 
Energy Policy and Conservation Act, as amended, 42 U.S.C 6311-6316.


Sec. 431.352  Definitions for commercial packaged boilers.

    For purposes of subparts I through P of this part, terms are 
defined as provided for elsewhere in this subpart, in section 340 of 
the Act, and as follows--
    Combustion efficiency for a commercial packaged boiler means the 
efficiency descriptor for packaged boilers, determined using test 
procedures prescribed under Sec. 431.362 and equals to 100 percent 
minus percent flue loss.
    Commercial packaged boiler means a packaged boiler that is a 
commercial HVAC & WH product with a capacity of 300,000 Btu per hour or 
more which, to any significant extent, is distributed in commerce,
    (1) For heating or space conditioning applications in buildings, or
    (2) For service water heating in buildings but does not meet the 
definition of ``hot water supply boiler'' in this part.
    Condensing boiler means a packaged boiler which will condense part 
of the water vapor in the flue gases, and which includes a means of 
collecting and draining this condensate from its heat exchanger 
section.
    Flue condensate means liquid formed by the condensation of moisture 
in the flue gases.
    Packaged boiler means a boiler that is shipped complete with 
heating equipment, mechanical draft equipment and automatic controls; 
usually shipped in one or more sections. If the boiler is shipped in 
more than one section, the sections may be produced by more than one 
manufacturer, and may be originated or shipped at different times and 
from more than one location.
    Packaged high pressure steam and high temperature water boiler 
means a commercial packaged boiler which operates at a steam pressure 
higher than 15 psig for a steam boiler, and at a water pressure above 
160 psig or at a water temperature exceeding 250 deg.F, or both, for a 
high temperature water boiler.
    Packaged low pressure steam and hot water boiler means a commercial 
packaged boiler which operates at or below a steam pressure of 15 psig 
for a steam boiler, and at or below 160 psig pressure and 250 deg.F 
temperature for a hot water boiler.

Test Procedures


Sec. 431.361  Materials incorporated by reference.

    (a) The Department incorporates by reference the following test 
procedures which are not otherwise set forth in this part 431. The 
Director of the Federal Register has approved the material listed in 
paragraph (b) of this section for incorporation by reference in 
accordance with 5 U.S.C. 552(a) and 1 CFR part 51. Any subsequent 
amendment to this material by the standard-setting organization will 
not affect the DOE test procedures unless and until DOE amends its test 
procedures. The Department incorporates the material as it exists on 
the date of the approval and a notice of any change in the material 
will be published in the Federal Register.

[[Page 48851]]

    (b) List of test procedures incorporated by reference. (1) The 
Hydronics Institute (HI) Standard ``Testing and Rating Standard for 
Heating Boilers'', 6th Edition, 1989 (``1989 HI Standard'').
    (2) The American Society of Mechanical Engineers Power Test Codes 
for Steam Generating Units, ASME PTC 4.1-1964, Reaffirmed 1991 
(Including 1968 and 1969 Addenda) (``ASME PTC 4.1'').
    (3) American Society of Heating, Refrigerating and Air-Conditioning 
Engineers, Inc. (ASHRAE) Standard 103-1993, ``Method of Testing for 
Annual Fuel Utilization Efficiency of Residential Central Furnaces and 
Boilers'', Sections 7.2.2.4, 7.8, 9.2, 11.2.7.1 and 11.3.7.2.
    (4) American National Standards Institute (ANSI) Standard Z21.13-
1993, ``Gas-Fired Low Pressure Steam and Hot Water Boilers'', Exhibit 
D.
    (c) Availability of references.
    (1) Inspection of test procedures. The test procedures incorporated 
by reference are available for inspection at:
    (i) Office of the Federal Register, 800 North Capitol Street, NW, 
Suite 700, Washington, DC.
    (ii) U.S. Department of Energy, Office of Energy Efficiency and 
Renewable Energy, Hearings and Dockets, ``Test Procedures and 
Efficiency Standards for Commercial Packaged Boilers,'' Docket No. EE-
RM/TP-99-470, 1000 Independence Avenue, SW, Washington, DC 20585.
    (2) Obtaining copies of Standards. Anyone can obtain a copy of 
standards incorporated by reference from the following sources:
    (i) Request copies of the ASHRAE Standards from the American 
Society of Heating, Refrigerating, and Air-Conditioning Engineers, 
Inc., 1971 Tullie Circle, NE, Atlanta, GA 30329, or http://www.ashrae.org/book/bookshop.htm.
    (ii) Request copies of the ANSI Standard from Global Engineering 
Documents, 15 Inverness Way West, Englewood, CO 80112, or http://global.ihs.com/, or http://webstore.ansi.org/ ansidocstore/.
    (iii) Request copies of the HI Standard from the Hydronics 
Institute Inc., 35 Russo Place, Berkeley Heights, NJ 07922, or http://www.gamanet.org/publist/hydroordr.htm.
    (iv) Request copies of the ASME Standard from the American Society 
of Mechanical Engineers, 345 East 47th Street, New York, NY 10017, or 
http://www.asmeny.org/catalog.


Sec. 431.362  Uniform test method for the measurement of energy 
efficiency of commercial packaged boilers.

    (a) Scope. This section covers the test procedures you must follow 
if, pursuant to EPCA, you are measuring the steady state combustion 
efficiency of a gas-fired and oil-fired, packaged commercial boiler 
having a rated capacity of 300,000 Btu per hour or more.
    (b) Definitions. For purposes of this section, the Department 
incorporates by reference the definitions specified in section 3.0 of 
the Hydronics Institute Testing and Rating Standard for Heating 
Boilers, sixth edition, June 1989, with the exception of the definition 
for the terms packaged boiler, condensing boilers, packaged low 
pressure steam and hot water boiler, and packaged high pressure steam 
and high temperature water boiler.
    (c) Test Setup. (1) Test Setup for Packaged Low Pressure Steam and 
Hot Water Boilers. (i) Classifications: If you employ boiler 
classification, you must classify boilers as given in section 4.0 of 
the 1989 Hydronics Institute Testing and Rating Standard for Heating 
Boilers.
    (ii) Requirements: You must conduct the combustion efficiency test 
as given in sections 5.1.2, (Combustion Efficiency Test), 5.4 (Basis of 
Ratings, sec. 5.4.1, 5.4.4, 5.4.5, and 5.4.6) of the 1989 Hydronics 
Institute Testing and Rating Standard for Heating Boilers.
    (iii) Instruments and Apparatus: You must follow the requirements 
for instruments and apparatus in sections 6 (Instruments) and 7 
(Apparatus, with the exception of sec. 7.2.3 which is for boilers of 
less than 300,000 Btu per hour capacity) of the 1989 Hydronics 
Institute Testing and Rating Standard for Heating Boilers.
    (iv) Test Conditions: Use test conditions from section 8.0 of the 
1989 Hydronics Institute Testing and Rating Standard for Heating 
Boilers, with the exception of subsection 8.5.1, in place of which you 
must use the following paragraphs:
    (A) Water Temperatures--For the water test, use a boiler inlet 
temperature of 35 deg.F to 80 deg.F and a boiler outlet temperature of 
180 deg.F2 deg.F.
    (B) Inlet Water Temperature for Condensing Boilers--To test the 
boiler as a condensing boiler (see paragraph (d)(1)(ii) of this section 
for condensing boilers), set the inlet water temperature to 
80 deg.F5 deg.F.
    (v) Alternative Test Procedure for Testing Low Pressure Steam and 
Hot Water Boilers. Instead of the 1989 Hydronics Institute Testing and 
Rating Standard for Heating Boilers as specified in paragraphs 
(c)(1)(ii) and (c)(1)(iii) of this section, you may conduct the 
combustion efficiency test for low pressure steam and hot water boilers 
using the Abbreviated Efficiency Test (Simplified Efficiency Test) as 
specified in ASME PTC 4.1 (see paragraphs (c)(2), (c)(2)(i), 
(c)(2)(ii)(A) of this section). If you select the ASME PTC 4.1 
procedure for conducting the required combustion efficiency test for 
low pressure steam and hot water boilers, you must use the test 
conditions specified in paragraphs (c)(1)(iv), (c)(1)(iv)(A), and 
(c)(1)(iv)(B) of this section.
    (2) Test Setup for Packaged High Pressure Steam and High 
Temperature Water Boilers, and Optional Test Procedure for Packaged Low 
Pressure Steam and Hot Water Boilers. (i) Use the test procedure for 
the efficiency test from ASME PTC 4.1. Conduct the combustion 
efficiency test with the Abbreviated Efficiency Test (Simplified 
Efficiency Test) for gas and oil fuels described in Section 1.07 of 
ASME PTC 4.1.
    (ii) Test Conditions for the Combustion Efficiency.
    (A) Low Pressure Steam and Hot Water Boilers--If you select ASME 
PTC 4.1 for the efficiency test of low pressure steam and hot water 
boilers, use test conditions specified in paragraph (c)(1)(iv) of this 
section.
    (B) High Pressure Steam and High Temperature Water Boilers--For the 
efficiency test, use a test steam pressure for high pressure steam 
boilers, and a test water pressure and water temperature for high 
temperature water boilers, consistent with the normal design point 
operating conditions for which the manufacturer designed the boiler. 
The boiler must be tested at the manufacturer's rated maximum input.
    (d) Test Measurements. (1) Test measurements for Packaged Low 
Pressure Steam and Hot Water Boilers. (i) Test for combustion 
efficiency according to sections 9.1 (excluding sec. 9.1.1.2.3 and 
9.1.2.2.3), 9.2 and 10.2 of the 1989 Hydronics Institute Testing and 
Rating Standard for Heating Boilers, except that you must replace the 
boiler water inlet temperature, boiler water outlet temperature, and 
boiler water temperature rise (outlet minus inlet) in sections 
9.1.2.1.1 and 9.1.2.1.3 of the HI test standard with the inlet and 
outlet temperatures specified in paragraphs (c)(1)(iv)(A) (for non-
condensing boilers) and (c)(1)(iv)(B) (for condensing boilers) of this 
section.
    (ii) Procedure for the Measurement of Condensate for a Condensing 
Boiler. With the inlet water temperature as specified in paragraph 
(c)(1)(iv)(B) of this section, measure the condensate from the flue gas 
under steady state

[[Page 48852]]

operation according to sections 7.2.2.4, 7.8 and 9.2 of ASHRAE Standard 
103-1993 under the rated input conditions. Conduct the measurement 
during an additional 30 minutes of steady state operation after 
completing the steady state combustion efficiency test in paragraph 
(d)(1)(i) of this section.
    (iii) Steam and Hot Water Boilers. Test a steam and hot water 
boiler as a steam boiler for its combustion efficiency. Optionally, you 
may also test this boiler as a hot water boiler to obtain a combustion 
efficiency rating when the boiler is operated as a hot water boiler.
    (2) Test measurements for Packaged High Pressure Steam and High 
Temperature Water Boilers, and Optional Test Procedure for Packaged Low 
Pressure Boilers. Use the test procedure from Section 5, Efficiency by 
Heat Loss Method, of ASME PTC 4.1.
    (e) Calculations. (1) Calculations for Packaged Low Pressure Steam 
and Hot Water Boilers. (i) Combustion Efficiency. Use the calculation 
procedure for combustion efficiency test specified in section 11.2 of 
the 1989 Hydronics Institute Testing and Rating Standard for Heating 
Boilers (except that for gas fuel, do not calculate Item 9 of sec. 
11.2.1 which is for oil fuel only). For gas-fired boilers, instead of 
using section 11.2 of the 1989 HI Standard to calculate the flue loss, 
you may calculate the flue loss by the procedure specified in Exhibit D 
of the ANSI Standard Z21.13a-1993.
    (ii) Procedure for the Calculation of the Additional Heat Gain and 
Heat loss, and Adjustment to the Combustion Efficiency, for a 
Condensing Boiler.
    (A) Procedure for the Calculation of the Additional Heat Gain and 
Heat loss. After following the procedure for the measurement of flue 
condensate of paragraph (d)(1)(ii) of this section, calculate the 
latent heat gain from the condensation of the water vapor in the flue 
gas and heat loss due to the flue condensate down the drain according 
to section 11.3.7.1 and 11.3.7.2 of ASHRAE Standard 103-1993, with the 
exception that in the equation for the heat loss due to hot flue 
condensate flowing down the drain in section 11.3.7.2, replace the 
indoor temperature of 70 deg.F and the temperature term TOA by the 
measured room ambient temperature as determined in section 8.4.3 of the 
1989 Hydronics Institute Testing and Rating Standard for Heating 
Boilers.
    (B) Adjustment to the Combustion Efficiency for a Condensing 
Boiler. Adjust the combustion efficiency calculated in paragraph 
(e)(1)(i) of this section by adding the latent heat gain from the 
condensation of the water vapor in the flue gas, and by subtracting the 
heat loss (due to the flue condensate down the drain) as calculated in 
(e)(1)(ii)(A) of this section, to obtain the combustion efficiency of a 
condensing boiler.
    (2) Calculations for Packaged High Pressure Steam and High 
Temperature Water Boilers, and for the Alternative Test Procedure 
(paragraph (c)(1)(v) of this section) for Packaged Low Pressure 
Boilers. Use the Abbreviated Efficiency Test by the heat loss method 
for gas or oil fuel as specified in section 7.3 and the Test Forms for 
the Abbreviated Efficiency Test, PTC 4.1-a (Summary Sheet) and PTC 4.1-
b (Calculation Sheet), of ASME PTC 4.1 to determine the combustion 
efficiency, except that you must set the following specific heat loss 
terms (as listed in section 7.3 of ASME PTC 4.1) to 0: sections 
7.3.2.03 (moisture in fuel), 7.3.2.01 (combustible in dry refuse), 
7.3.2.10 (radiation to surroundings), 7.3.2.05 through 7.3.2.09 and 
7.3.2.11 through 7.3.2.14 (unmeasured losses).

Energy Efficiency Standards


Sec. 431.371  Energy conservation standards and effective dates.

    Each commercial packaged boiler manufactured on or after January 1, 
1994 must meet the following energy efficiency standard levels:
    (a) For a gas-fired packaged boiler with a capacity of 300,000 Btu 
per hour or more, the combustion efficiency at the maximum rated 
capacity must be not less than 80 percent.
    (b) For an oil-fired packaged boiler with a capacity of 300,000 Btu 
per hour or more, the combustion efficiency at the maximum rated 
capacity must be not less than 83 percent.

[FR Doc. 00-19721 Filed 8-8-00; 8:45 am]
BILLING CODE 6450-01-P