[Federal Register Volume 75, Number 56 (Wednesday, March 24, 2010)]
[Proposed Rules]
[Pages 14319-14322]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-6373]


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DEPARTMENT OF ENERGY

10 CFR Part 430

[Docket No. EERE-2007-BT-STD-0016]
RIN 1904-AB50


Energy Conservation Standards for Fluorescent Lamp Ballasts: 
Public Meeting and Availability of the Preliminary Technical Support 
Document

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

ACTION: Notice of public meeting and availability of preliminary 
technical support document.

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SUMMARY: The U.S. Department of Energy (DOE) will hold a public meeting 
to discuss and receive comments on: the product classes that DOE plans 
to analyze for purposes of establishing energy conservation standards 
for fluorescent lamp ballasts; the analytical framework, models, and 
tools that DOE is using to evaluate standards for these products; the 
results of preliminary analyses DOE performed for these products; and 
potential energy conservation standard levels derived from these 
analyses that DOE could consider for these products. DOE encourages 
written comments on these subjects. To inform interested parties and 
facilitate this process, DOE has prepared an agenda, a preliminary 
technical support document (TSD), and briefing materials, which are 
available at http://www1.eere.energy.gov/buildings/appliance_standards/residential/fluorescent_lamp_ballasts.html.

DATES: DOE will hold a public meeting on Monday, April 26, 2010, 
beginning at 9 a.m. in Washington, DC. The agenda for the public 
meeting will first cover the concurrent test procedure rulemaking for 
fluorescent lamp ballasts (see proposal in today's Federal Register), 
and then this energy conservation standards rulemaking for the same 
products. Any person requesting to speak at the public meeting should 
submit such a request, along with an electronic copy of the statement 
to be given at the public meeting, before 4 p.m., Monday, April 12, 
2010. Written comments are welcome, especially following the public 
meeting, and should be submitted by May 10, 2010.

ADDRESSES: The public meeting will be held at the U.S. Department of 
Energy, Forrestal Building, Room 8E-089, 1000 Independence Avenue, SW., 
Washington, DC 20585-0121. Please note that foreign nationals 
participating in the public meeting are subject to advance security 
screening procedures. If a foreign national wishes to participate in 
the public meeting, please inform DOE of this fact as soon as possible 
by contacting Ms. Brenda Edwards at (202) 586-2945 so that the 
necessary procedures can be completed. Interested persons may submit 
comments, identified by docket number EERE-2007-BT-STD-0016, by any of 
the following methods:
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
     E-mail: [email protected]. Include EERE-2007-
BT-STD-0016 and/or RIN 1904-AB50 in the subject line of the message.
     Postal Mail: Ms. Brenda Edwards, U.S. Department of 
Energy, Building Technologies Program, Mailstop EE-2J, Public Meeting 
for Fluorescent Lamp Ballasts, EERE-2007-BT-STD-0016, 1000 Independence 
Avenue, SW., Washington, DC 20585-0121. Telephone (202) 586-2945. 
Please submit one signed paper original.
     Hand Delivery/Courier: Ms. Brenda Edwards, U.S. Department 
of Energy, Building Technologies Program, Sixth Floor, 950 L'Enfant 
Plaza, SW., Washington, DC 20024. Telephone (202) 586-2945. Please 
submit one signed paper original.
    Instructions: All submissions received must include the agency name 
and docket number.
    Docket: For access to the docket to read background documents or a 
copy of the transcript of the public meeting or comments received, go 
to the U.S. Department of Energy, Sixth Floor, 950 L'Enfant Plaza, SW., 
Washington, DC 20024, (202) 586-2945, between 9 a.m. and 4 p.m., Monday 
through Friday, except Federal holidays. Please call Ms. Brenda Edwards 
at (202) 586-2945 for additional information regarding visiting the 
Resource Room.

[[Page 14320]]


FOR FURTHER INFORMATION CONTACT: Direct requests for additional 
information to Ms. Linda Graves, U.S. Department of Energy, Office of 
Energy Efficiency and Renewable Energy, Building Technologies, EE-2J, 
1000 Independence Avenue, SW., Washington, DC 20585-0121, (202) 586-
8654. E-mail: [email protected]. In the Office of General 
Counsel, contact Ms. Francine Pinto or Ms. Elizabeth Kohl, U.S. 
Department of Energy, Office of General Counsel, GC-71, 1000 
Independence Avenue, SW., Washington, DC 20585, (202) 586-7432. E-mail: 
[email protected]; [email protected].

SUPPLEMENTARY INFORMATION:
I. Statutory Authority
II. History of Standards Rulemaking for Fluorescent Lamp Ballasts
    A. Background
    B. Current Rulemaking Process
III. Summary of the Analyses
    A. Engineering Analysis
    B. Energy Use Characterization
    C. Markups To Determine Installed Price
    D. Life-Cycle Cost and Payback Period Analyses
    E. National Impact Analysis

I. Statutory Authority

    The Energy Policy and Conservation Act (EPCA) of 1975, Public Law 
94-163 (42 U.S.C. 6291-6309), established an energy conservation 
program for major household appliances. Amendments to EPCA in the 
National Appliance Energy Conservation Amendments of 1988 (NAECA 1988), 
Public Law 100-357, established energy conservation standards for 
fluorescent lamp ballasts. These amendments also required that DOE (1) 
conduct two rulemaking cycles to determine whether these standards 
should be amended; and (2) for each rulemaking cycle, determine whether 
the standards in effect for fluorescent lamp ballasts should be amended 
to apply to additional fluorescent lamp ballasts. (42 U.S.C. 
6295(g)(7)(A)-(B)). On September 19, 2000, DOE published a final rule 
in the Federal Register, which completed the first rulemaking cycle to 
amend energy conservation standards for fluorescent lamp ballasts. 65 
FR 56740, 56740-56749 (September 19, 2000). This rulemaking encompasses 
DOE's second cycle of review to determine whether the standards in 
effect for fluorescent lamp ballasts should be amended and whether the 
standards should be applicable to additional fluorescent lamp ballasts.
    DOE must design each standard for these products to (1) achieve the 
maximum improvement in energy efficiency that is technologically 
feasible and economically justified, and (2) result in significant 
conservation of energy. (42 U.S.C. 6295(o)(2)(A) and (o)(3)) To 
determine whether a proposed standard is economically justified, DOE 
must determine whether the benefits of the standard exceed its burdens 
to the greatest extent practicable, weighing the following seven 
factors:
    1. The economic impact of the standard on manufacturers and 
consumers of products subject to the standard;
    2. The savings in operating costs throughout the estimated average 
life of the covered products in the type (or class) compared to any 
increase in the price, initial charges, or maintenance expenses for the 
covered products which are likely to result from the imposition of the 
standard;
    3. The total projected amount of energy savings likely to result 
directly from the imposition of the standard;
    4. Any lessening of the utility or the performance of the covered 
products likely to result from the imposition of the standard;
    5. The impact of any lessening of competition, as determined in 
writing by the Attorney General, that is likely to result from the 
imposition of the standard;
    6. The need for national energy conservation; and
    7. Other factors the Secretary [of Energy] considers relevant.
    (42 U.S.C. 6295(o)(2)(B)(i))
    Before proposing a standard, DOE typically seeks public input on 
the analytical framework, models, and tools that will be used to 
evaluate standards; the results of preliminary analyses; and potential 
energy conservation standard levels derived from these analyses. DOE is 
publishing this document to announce the availability of the 
preliminary technical support document (TSD), which details the 
preliminary analyses, discusses the comments on the framework document, 
and summarizes the preliminary results. In addition, DOE is announcing 
a public meeting to solicit feedback from interested parties on its 
analytical framework, models, and preliminary results.

II. History of Standards Rulemaking for Fluorescent Lamp Ballasts

A. Background

    As mentioned above, NAECA 1988 amended EPCA to establish energy 
conservation standards for fluorescent lamp ballasts and require that 
DOE (1) conduct two rulemaking cycles to determine whether these 
standards should be amended; and (2) for each rulemaking cycle, 
determine whether the standards in effect for fluorescent lamp ballasts 
should be amended so that they would be applicable to additional 
fluorescent lamp ballasts. (42 U.S.C. 6295(g)(7)(A)-(B)) On September 
19, 2000, DOE published a final rule in the Federal Register, which 
completed the first of the two rulemaking cycles to evaluate and amend 
the energy conservation standards for fluorescent lamp ballasts 
(hereafter ``the 2000 Ballast Rule''). 65 FR 56740 (September 19, 
2000). This rulemaking established a consensus standard representing an 
agreement between the fluorescent lamp ballast industry and energy 
efficiency advocacy organizations. A table of the standards DOE 
codified can be found in appendix 3A of the preliminary TSD and in 10 
CFR 430.32(m)(3).
    Congress promulgated new energy conservation standards for certain 
fluorescent lamp ballasts under the Energy Policy Act of 2005 (EPACT 
2005), Public Law 109-58. (EPACT section 135(c)(2); codified at 42 
U.S.C. 6295(g)(8)(A)) On October 18, 2005, DOE published a final rule 
in the Federal Register codifying those new fluorescent lamp ballast 
standards into the Code of Federal Regulations at 10 CFR 430.32(m). 70 
FR 60407. These standards established ballast efficacy requirements for 
``energy saver'' versions of full-wattage ballasts, such as the F34T12 
ballast.
    On December 19, 2007, the President signed the Energy Independence 
and Security Act of 2007 (EISA 2007; Pub. L. 110-140). EISA 2007 did 
not amend standards for fluorescent lamp ballasts, but instead directed 
DOE to amend its test procedure for fluorescent lamp ballasts to 
incorporate a measure of standby mode and off mode energy consumption. 
(42 U.S.C. 6295(gg)(2)) DOE published a notice of proposed rulemaking 
(NOPR) for the standby and off mode test procedure on January 21, 2009. 
74 FR 3450. In addition, DOE is directed to incorporate standby mode 
and off mode energy use in any amended (or new) standard adopted after 
July 1, 2010. (42 USC 6295(gg)(3)) Because this energy conservation 
standards rulemaking for fluorescent lamp ballasts will be completed in 
2011, the requirement to incorporate standby mode energy use into the 
energy conservation standards analysis is applicable.
    This rulemaking encompasses DOE's second cycle of review to 
determine whether the standards in effect for fluorescent lamp ballasts 
should be amended and whether the standards should be made applicable 
to additional fluorescent lamp ballasts. This rulemaking also addresses 
42 U.S.C. 6295(gg)(3), in which DOE is directed to incorporate standby 
mode and off mode

[[Page 14321]]

energy use in any amended (or new) standard adopted after July 1, 2010.
    Under the consolidated Consent Decree in New York v. Bodman, No. 05 
Civ. 7807 (S.D.N.Y. filed Sept. 7, 2005) and Natural Resources Defense 
Council v. Bodman, No. 05 Civ. 7808 (S.D.N.Y. filed Sept. 7, 2005) the 
U.S. Department of Energy is required to publish a final rule amending 
energy conservation standards for fluorescent lamp ballasts no later 
than June 30, 2011.

B. Current Rulemaking Process

    On January 22, 2008, DOE published a notice announcing the 
availability of the framework document, ``Energy Conservation Standards 
Rulemaking Framework Document for Fluorescent Lamp Ballasts,'' and a 
public meeting to discuss the proposed analytical framework for the 
rulemaking. 73 FR 3653. DOE also posted the framework document on its 
website describing the procedural and analytical approaches DOE 
anticipated using to evaluate the establishment of energy conservation 
standards for fluorescent lamp ballasts. This document is available at 
http://www1.eere.energy.gov/buildings/appliance_standards/residential/pdfs/ballast_framework_011408.pdf.
    DOE held a public meeting on February 6, 2008, to describe the 
various rulemaking analyses DOE would conduct, such as the engineering 
analysis, the life-cycle cost (LCC) and payback period (PBP) analyses, 
and the national impact analysis (NIA); the methods for conducting 
them; and the relationship among the various analyses. Manufacturers, 
trade associations, and environmental advocates attended the meeting. 
The participants discussed multiple issues, including the scope of 
covered fluorescent lamp ballasts, definitions, test procedures, the 
ballast efficiency metric, DOE's engineering analysis, life-cycle 
costs, efficiency levels, and energy savings.
    Comments received since publication of the framework document have 
helped DOE identify and resolve issues involved in the preliminary 
analyses. Chapter 2 of the preliminary TSD summarizes and addresses the 
comments DOE received.

III. Summary of the Analyses

    DOE conducted in-depth technical analyses in the following areas 
for the fluorescent lamp ballasts currently under consideration: (1) 
Engineering, (2) energy-use characterization, (3) markups to determine 
product price, (4) LCC and PBP, and (5) national impact. The 
preliminary TSD presents the methodology and results of each analysis. 
The analyses are described in more detail below.
    DOE conducted several other analyses that either support the five 
major analyses or are preliminary analyses that will be expanded in the 
NOPR. These include the market and technology assessment; the screening 
analysis, which contributes to the engineering analysis; and the 
shipments analysis, which contributes to the NIA. DOE has begun some 
preliminary work on the manufacturer impact analysis and identified the 
methods to be used for the LCC subgroup analysis, the environmental 
assessment, the employment analysis, the regulatory impact analysis, 
and the utility impact analysis. DOE will expand on these in the NOPR.

A. Engineering Analysis

    The engineering analysis establishes the relationship between the 
manufacturer selling price and the efficiency of the product. This 
relationship serves as the basis for cost-benefit calculations for 
individual consumers, manufacturers, and the nation. The engineering 
analysis identifies representative baseline models, which is the 
starting point for analyzing technologies that provide energy 
efficiency improvements. A baseline model refers to a model or models 
having features and technologies typically found in products currently 
offered for sale. The baseline model in each equipment class represents 
the characteristics of certain fluorescent lamp ballasts in that class 
and, for ballasts already subject to energy conservation standards, 
usually is a model that just meets the current standard. Chapter 5 of 
the preliminary TSD discusses the engineering analysis.

B. Energy Use Characterization

    The energy use characterization provides estimates of annual energy 
consumption for fluorescent lamp ballasts, which DOE uses in the LCC 
and PBP analyses and the NIA. DOE developed energy consumption 
estimates for all of the product classes analyzed in the engineering 
analysis as the basis for its energy use estimates. Chapters 2 and 6 of 
the preliminary TSD provide detail on the energy use characterization.

C. Markups to Determine Installed Price

    DOE derives the installed prices for products based on manufacturer 
markups, retailer markups, distributor markups, contractor markups, 
builder markups, and sales taxes. In deriving these markups, DOE has 
determined the distribution channels for product sales, the markup 
associated with each party in the distribution channels, and the 
existence and magnitude of differences between markups for baseline 
products (baseline markups) and for more-efficient products 
(incremental markups). DOE calculates both overall baseline and overall 
incremental markups based on the product markups at each step in the 
distribution channel. The overall incremental markup relates the change 
in the manufacturer sales price of higher-efficiency models (the 
incremental cost increase) to the change in the retailer or distributor 
sales price. Chapters 2 and 7 of the preliminary TSD provide detail on 
the estimation of markups.

D. Life-Cycle Cost and Payback Period Analyses

    The LCC and PBP analyses determine the economic impact of potential 
standards on individual consumers. The LCC is the total consumer 
expense for a product over the life of the product. The LCC analysis 
compares the LCCs of products designed to meet possible energy 
conservation standards with the LCCs of the products likely to be 
installed in the absence of standards. DOE determines LCCs by 
considering (1) total installed cost to the purchaser (which consists 
of manufacturer selling price, sales taxes, distribution chain markups, 
and installation cost); (2) the operating expenses of the products 
(energy use and maintenance); (3) product lifetime; and (4) a discount 
rate that reflects the real consumer cost of capital and puts the LCC 
in present-value terms. The PBP represents the number of years needed 
to recover the increase in purchase price (including installation cost) 
of more efficient products through savings in the operating cost of the 
product. PBP is equal to the change in total installed cost due to 
increased efficiency divided by the change in annual operating cost 
from increased efficiency. Chapters 2 and 8 of the preliminary TSD 
provide detail on the LCC and PBP analyses.

E. National Impact Analysis

    The NIA estimates the NES and the NPV of total consumer costs and 
savings expected to result from new standards at specific efficiency 
levels (referred to as candidate standard levels). DOE calculated NES 
and NPV for each level for each candidate standard for fluorescent lamp 
ballasts as the difference between a base-case forecast (without new 
standards) and the standards-case forecast (with standards). DOE 
determined national annual energy consumption by multiplying the number 
of units in use (by vintage) by

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the average unit energy consumption (also by vintage). Cumulative 
energy savings are the sum of the annual NES determined over a 
specified time period. The national NPV is the sum over time of the 
discounted net savings each year, which consists of the difference 
between total operating cost savings and increases in total installed 
costs. Critical inputs to this analysis include shipments projections, 
retirement rates (based on estimated product lifetimes), and estimates 
of changes in shipments and retirement rates in response to changes in 
product costs due to standards. Chapters 2 and 10 of the preliminary 
TSD provide detail on the NIA.
    DOE consulted with interested parties on all of the analyses and 
invites further input on these topics. The preliminary analytical 
results are subject to revision following review and input from the 
public. A revised TSD will be made available upon issuance of a NOPR. 
The final rule will contain the final analysis results and be 
accompanied by a final rule TSD.
    DOE encourages those who wish to participate in the public meeting 
to obtain the preliminary TSD and be prepared to discuss its contents. 
However, public meeting participants need not limit their comments to 
the topics identified in the preliminary TSD. DOE is also interested in 
receiving information on other relevant issues that participants 
believe would affect energy conservation standards for these products 
or that DOE should address in the NOPR.
    DOE welcomes all interested parties, regardless of whether they 
participate in the public meeting, to submit comments and information 
in writing by May 10, 2010.
    The public meeting will be conducted in an informal, conference 
style. A court reporter will be present to record the minutes of the 
meeting. There shall be no discussion of proprietary information, costs 
or prices, market shares, or other commercial matters regulated by 
United States antitrust laws.
    After considering all comments and additional information it 
receives from interested parties or through further analyses, DOE will 
prepare and publish in the Federal Register a NOPR. The NOPR will 
include proposed energy conservation standards for the products covered 
by the rulemaking. Members of the public will have an opportunity to 
submit written and oral comments on the proposed standards.

    Issued in Washington, DC, on February 22, 2010.
Cathy Zoi,
Assistant Secretary, Energy Efficiency and Renewable Energy.
[FR Doc. 2010-6373 Filed 3-23-10; 8:45 am]
BILLING CODE 6450-01-P