[Federal Register Volume 75, Number 84 (Monday, May 3, 2010)]
[Proposed Rules]
[Pages 23191-23194]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-10104]


 ========================================================================
 Proposed Rules
                                                 Federal Register
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 This section of the FEDERAL REGISTER contains notices to the public of 
 the proposed issuance of rules and regulations. The purpose of these 
 notices is to give interested persons an opportunity to participate in 
 the rule making prior to the adoption of the final rules.
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 

  Federal Register / Vol. 75, No. 84 / Monday, May 3, 2010 / Proposed 
Rules  

[[Page 23191]]



DEPARTMENT OF ENERGY

10 CFR Part 430

[Docket No. EERE-2010-BT-STD-0005]
RIN 1904-AC15


Energy Conservation Program for Consumer Products: Energy 
Conservation Standards for Certain Small Diameter, Elliptical 
Reflector, and Bulged Reflector Incandescent Reflector Lamps

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

ACTION: Notice of public meeting and availability of a framework 
document.

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SUMMARY: Pursuant to the Energy Policy and Conservation Act (EPCA), the 
U.S. Department of Energy (DOE) is preparing a notice of proposed 
rulemaking regarding energy conservation standards for certain 
incandescent reflector lamps (IRLs) that have elliptical reflector (ER) 
or bulged reflector (BR) bulb shapes, and for certain IRLs with 
diameters of 2.50 inches. DOE will hold a public meeting to discuss and 
receive comments on the product classes that DOE plans to analyze for 
the purpose of amending energy conservation standards for certain IRLs, 
and the analytical approach, models, and tools that DOE is using to 
evaluate standards for these products. DOE encourages written comments 
on these subjects. To inform interested parties and facilitate this 
process, DOE has prepared a framework document describing the 
analytical approaches DOE anticipates using to evaluate potential 
standards for these lamps.

DATES: DOE will hold a public meeting on Wednesday, May 26, 2010 from 9 
a.m. to 5 p.m. in Washington, DC. DOE must receive requests to speak at 
the public meeting before 4 p.m., Wednesday, May 12, 2010. DOE must 
receive a signed original and an electronic copy of statements to be 
given at the public meeting before 4 p.m., Wednesday, May 19, 2010. DOE 
will accept comments, data, and information before and after the public 
meeting, but no later than June 17, 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. To attend the public meeting, please notify 
Ms. Brenda Edwards at (202) 586-2945. Please note that foreign 
nationals visiting DOE Headquarters are subject to advance security 
screening procedures. Any foreign national wishing to participate in 
the meeting should advise DOE as soon as possible by contacting Ms. 
Brenda Edwards to initiate the necessary procedures.
    Any comments submitted must identify the notice of public meeting 
(NOPM) for Energy Conservation Standards for Certain Incandescent 
Reflector Lamps, and provide the docket number EERE-2010-BT-STD-0005 
and/or regulatory information number (RIN) 1904-AC15. Comments may be 
submitted using any of the following methods:
    1. Federal eRulemaking Portal: http://www.regulations.gov. Follow 
the instructions for submitting comments.
    2. E-mail: [email protected]. Include docket number 
EERE-2010-BT-STD-0005 and/or RIN: 1904-AC15 in the subject line of the 
message.
    3. Postal Mail: Ms. Brenda Edwards, U.S. Department of Energy, 
Building Technologies Program, Mailstop EE-2J, Public Meeting for 
Certain Incandescent Reflector Lamps, EE-2009-BT-STD-0022, 1000 
Independence Avenue, SW., Washington, DC 20585-0121. Please submit one 
signed paper original.
    4. Hand Delivery/Courier: Ms. Brenda Edwards, U.S. Department of 
Energy, Building Technologies Program, 950 L'Enfant Plaza, SW., Suite 
600, Washington, DC 20024. Telephone: (202) 586-2945. Please submit one 
signed paper original.
    Docket: For access to the docket to read background documents or 
comments received, visit the U.S. Department of Energy, Resource Room 
of the Building Technologies Program, 950 L'Enfant Plaza, SW., Suite 
600, Washington, DC (202) 586-2945, between 9 a.m. and 4 p.m., Monday 
through Friday, except Federal holidays. Please call Ms. Brenda Edwards 
at the above telephone number for additional information regarding 
visiting the Resource Room. DOE's framework document is available at: 
http://www1.eere.energy.gov/buildings/appliance_standards/residential/incandescent_lamps.html.

FOR FURTHER INFORMATION CONTACT: Ms. Margaret Sullivan, U.S. Department 
of Energy, Office of Energy Efficiency and Renewable Energy, Building 
Technologies, EE-2J, 1000 Independence Avenue, SW., Washington, DC 
20585-0121. Telephone: (202) 287-1604. E-mail: 
[email protected].
    Mr. Eric Stas, U.S. Department of Energy, Office of the General 
Counsel, GC-71, 1000 Independence Avenue, SW., Washington, DC 20585-
0121. Telephone: (202) 586-9507. E-mail: [email protected].
    For information on how to submit or review public comments and on 
how to participate in the public meeting, contact Ms. Brenda Edwards, 
U.S. Department of Energy, Office of Energy Efficiency and Renewable 
Energy, Building Technologies Program, EE-2J, 1000 Independence Avenue, 
SW., Washington, DC 20585-0121. Telephone: (202) 586-2945. E-mail: 
[email protected].

SUPPLEMENTARY INFORMATION:

I. Authority

    Title III of the Energy Policy and Conservation Act of 1975 (42 
U.S.C. 6291 et seq.) (EPCA or the Act) established the Energy 
Conservation Program for Consumer Products Other Than Automobiles, 
covering major household appliances. Subsequent amendments expanded 
Title III of EPCA to include additional consumer products and certain 
commercial and industrial equipment. In particular, the Energy Policy 
Act of 1992 (EPACT 1992) included amendments to EPCA that added as 
covered products certain IRLs with wattages of 40 watts (W) or higher, 
and that established energy conservation standards for these IRLs. In 
defining the term ``incandescent reflector lamp,'' EPACT 1992 excluded 
lamps with ER and BR bulb shapes, and with diameters of 2.75 inches or 
less. Therefore, such IRLs were neither included as covered products 
nor subject to EPCA's standards for IRLs.
    However, section 322(a)(1) of the Energy Independence and Security 
Act

[[Page 23192]]

of 2007 (EISA 2007) subsequently amended EPCA to expand the Act's 
definition of ``incandescent reflector lamp'' to include lamps with a 
diameter between 2.25 and 2.75 inches, as well as lamps with ER, BR, 
bulged parabolic aluminized reflector (BPAR), or similar bulb shapes. 
(42 U.S.C. 6291(30)(C)(ii) and (F)) Consequently, these lamps became 
covered products subject to EPCA's standards for IRLs, except that 
section 322(b) of EISA 2007 also amended EPCA to exempt from the IRL 
standards the following categories of these lamps: (1) Lamps rated 50 
watts or less that are ER30, BR30, BR40, or ER40; (2) lamps rated 65 
watts that are BR30, BR40, or ER40 lamps; and (3) R20 incandescent 
reflector lamps rated 45 watts or less (lamps that have a diameter of 
2.5 inches or less, such as R20 lamps, are commonly referred to as 
small diameter lamps). (42 U.S.C. 6295(i)(1)(C)) (Hereafter, DOE refers 
to these lamps collectively as the ``exempt IRLs.'')
    In a recent rulemaking to consider amending EPCA's standards for 
IRLs and certain other types of lamps, DOE initially concluded that it 
lacked authority to set standards for the exempt IRLs. 74 FR 16920, 
16930 (April 13, 2009). DOE also concluded, therefore, that these lamps 
were not covered by the EPCA directive (42 U.S.C. 6295(i)) that DOE 
consider amending the Act's standards for IRLs and other lamps. 
However, upon consideration of the comments it received in that 
rulemaking, DOE decided to reexamine these conclusions. 74 FR 16920, 
16930-31 (April 13, 2009); 74 FR 34080, 34092 (July 14, 2009).
    DOE has undertaken this reexamination and has now concluded, for 
the reasons that follow, that it has the authority under EPCA to adopt 
standards for the exempt IRLs, and that these lamps are covered by the 
directive in 42 U.S.C. 6295(i) to amend EPCA's standards for IRLs. 
First, by amending the definition of ``incandescent reflector lamp'' 
(42 U.S.C. 6291(30)(C)(ii) and (F)), EISA 2007 effectively brought ER, 
BR, and small diameter lamps into the Federal energy conservation 
standards program as covered product, thereby granting DOE regulatory 
authority. Additionally, although 42 U.S.C. 6295(i)(1)(C) exempts 
certain ER, BR, and small diameter lamps from statutorily-prescribed 
standards, EISA 2007 grants DOE authority to amend the standards laid 
out in 42 U.S.C. 6295(i)(1), which includes subparagraph (C). As a 
result, the statutory text did not exempt the bulbs from future 
regulation, only from the specified minimum standards in 42 U.S.C. 
6295(i)(1). Consequently, DOE is conducting this rulemaking to address 
the potential for development of energy conservation standards for the 
exempt IRLs.
    DOE must design any new or amended standard for these products to 
achieve the maximum improvement in energy efficiency that is 
technologically feasible and economically justified. Any standard must 
also result in significant conservation of energy. (42 U.S.C. 
6295(o)(2)(A) and (3)) To determine whether a proposed standard is 
economically justified, DOE must, after receiving comments on the 
proposed standard, determine whether the benefits of the standard 
exceed its burdens to the greatest extent practicable, weighing the 
following seven factors:
    1. The economic impact of the standard on manufacturers and 
consumers of products subject to the standard;
    2. The savings in operating costs throughout the estimated average 
life of the covered products in the type (or class) compared to any 
increase in the price, initial charges, or maintenance expenses for the 
covered products which are likely to result from the imposition of the 
standard;
    3. The total projected amount of energy savings likely to result 
directly from the imposition of the standard;
    4. Any lessening of the utility or the performance of the covered 
products likely to result from the imposition of the standard;
    5. The impact of any lessening of competition, as determined in 
writing by the Attorney General, that is likely to result from the 
imposition of the standard;
    6. The need for national energy conservation; and
    7. Other factors the Secretary [of Energy] considers relevant.
    (42 U.S.C. 6295(o)(2)(B)(i)(I)-(VII))

II. History of Standards Rulemaking for ER, BR, and Small Diameter 
Incandescent Reflector Lamps

A. Background

    As indicated above, EISA 2007 amended EPCA both to add as covered 
products the exempt IRLs (42 U.S.C. 6291(30)(C)(ii) and (F)) and to 
exempt them from EPCA's energy conservation standards for IRLs (42 
U.S.C. 6295(i)(1)(C)). As also indicated above, DOE initially concluded 
that it lacked authority to adopt standards for the exempt IRLs. 
Accordingly, in the recent lamps standards rulemaking, DOE's analyses 
did not examine whether standards for these IRLs might be warranted. 
(74 FR 34080, July 14, 2009) Based upon a reexamination of its 
authority, DOE decided to conduct this separate rulemaking to assess 
energy conservations standards for the exempt IRLs.

B. Current Rulemaking Process

    This NOPM represents the first step in the process to consider 
adoption of energy conservation standards for the exempt IRLs. Because 
the previous rulemaking for IRLs was completed relatively recently, DOE 
possesses methodologies for all stages of the analysis that have 
already been vetted and revised according to public comments. 
Accordingly, DOE intends to present the results of its analyses in the 
notice of proposed rulemaking (NOPR) phase. DOE is issuing this NOPM 
with the intention of receiving as much feedback as possible regarding 
the methodologies, data, and key assumptions that will be used for the 
analyses before performing the NOPR analyses. The analyses and proposed 
methodologies that will be used for the NOPR phase of this rulemaking 
are described in detail in the framework document, available at the web 
link provided in the ADDRESSES section of this notice.

III. Summary of the Analyses To Be Performed

    For the exempt IRLs, DOE is planning to conduct in-depth technical 
analyses for the NOPR in the following areas: (1) Engineering; (2) 
energy-use characterization; (3) product price; (4) life-cycle cost 
(LCC) and payback period (PBP); (5) national impacts analysis (NIA); 
(6) manufacturer impact analysis; (7) utility impact analysis; (8) 
employment impact analysis; (9) environmental assessment; and (10) 
regulatory impact analysis. DOE will also conduct several other 
analyses that support those previously listed, including the market and 
technology assessment, the screening analysis (which contributes to the 
engineering analysis), and the shipments analysis (which contributes to 
the national impact analysis). These analyses are described in further 
detail below. In the framework document, DOE describes the 
methodologies and key data sources for these analyses, and sets forth 
issues for which DOE seeks public comment. The framework document is 
available at the web address given in the ADDRESSES section of this 
notice.

A. Engineering Analysis

    The engineering analysis establishes the relationship between the 
manufacturer selling price and the

[[Page 23193]]

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 the 
least efficient, most common products currently offered for sale. 
Section 2.5 of the framework document discusses the engineering 
analysis.

B. Energy Use Characterization

    The energy use characterization provides estimates of annual energy 
consumption for exempt IRL, which DOE uses in the LCC and PBP analyses 
and the NIA. DOE develops energy consumption estimates for all of the 
product classes analyzed in the engineering analysis as the basis for 
its energy use estimates. Section 2.6 of the framework document 
provides detail on the energy use characterization.

C. 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. Section 2.8 of the framework document 
provides detail on the LCC and PBP analyses.

D. National Impact Analysis

    The NIA estimates the national energy savings (NES) and the net 
present value (NPV) of total consumer costs and savings expected to 
result from new standards at specific efficiency levels (referred to as 
candidate standard levels). DOE calculates NES and NPV for each 
candidate standard level as the difference between a base-case forecast 
(without new standards) and the standards-case forecast (with 
standards). DOE determines national annual energy consumption by 
multiplying the number of units in use by the average unit energy 
consumption. 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. Section 2.10 
of the framework document provides detail on the NIA.

E. Manufacturer Impact Analysis

    The purpose of the manufacturer impact analysis (MIA) is to 
identify and quantify the likely impacts of amended energy conservation 
standards on manufacturers of exempt IRL. Using industry research, 
public comments, and interviews with manufacturers and other interested 
parties, DOE will analyze and consider a wide range of quantitative and 
qualitative industry impacts that may occur due to amended energy 
conservation standards. Based on the information gathered during 
interviews and other research, DOE will assess impacts on competition, 
manufacturing capacity, employment, and regulatory burden. Section 2.12 
of the framework document provides detail on the MIA.

F. Utility Impact Analysis

    The utility impact analysis examines the effects of amended energy 
conservation standards on the installed generation capacity of 
electric, gas, and oil utilities. The utility impact analysis reports 
the changes in installed capacity and generation between the base case 
and the standards cases that result from each standard level by plant 
type. Section 2.13 of the framework document provides detail on the 
utility impact analysis.

G. Employment Impact Analysis

    The employment impact analysis will estimate indirect national job 
creation or elimination resulting from possible standards. Indirect 
employment impacts may result from expenditures shifting between goods 
(the substitution effect) and changes in income and overall expenditure 
levels (the income effect) that occur due to the standards. DOE defines 
indirect employment impacts from standards as net jobs eliminated or 
created in the general economy as a result of increased spending driven 
by increased equipment prices and reduced spending on energy. Section 
2.14 of the framework document provides detail on the employment impact 
analysis.

H. Environmental Assessment

    The purpose of the environmental assessment is to quantify and 
consider the environmental effects of amended energy conservation 
standards for exempt IRL. The environmental assessment will assess 
impacts of amended energy conservation standards on the following types 
of energy-related emissions--carbon dioxide (CO2), oxides of 
nitrogen (NOX), sulfur dioxide (SO2), and mercury 
(Hg). As part of the environmental assessment, DOE plans to monetize 
the benefits associated with emissions reductions using a range of 
values. Section 2.15 and 2.16 of the framework document provide detail 
on the environmental assessment and monetization.

I. Regulatory Impact Analysis

    The regulatory impact analysis addresses the potential for non-
regulatory approaches to supplant or augment energy conservation 
standards in order to improve the energy efficiency or reduce the 
energy consumption of the products covered under this rulemaking. DOE 
will base its assessment on the actual impacts of any such initiatives 
to date, but will also consider information presented regarding the 
impacts that any existing initiative might have in the future. Section 
2.17 of the framework document provides detail on the regulatory impact 
analysis.

J. Additional Supporting Analyses

    DOE will also conduct several analyses that support the analyses 
listed above, including the market and technology assessment and the 
screening analysis, which contribute to the engineering analysis, and 
the shipments analysis, which contributes to the NIA. DOE also conducts 
an LCC subgroup analysis, which evaluates economic impacts on selected 
groups of consumers who might be adversely affected by a change in the 
national energy conservation standards for the covered products. Please 
see the framework document for further details on these analyses.

[[Page 23194]]

IV. Public Participation

    DOE considers public participation to be a very important part of 
the process for setting energy conservation standards. DOE actively 
encourages the participation and interaction of the public during the 
comment period at each stage of the rulemaking process. Beginning with 
the NOPM, and during each subsequent public meeting and comment period, 
interactions with and between members of the public provide a balanced 
discussion of the issues to assist DOE in the standards rulemaking 
process.
    Accordingly, DOE encourages those who wish to participate in the 
public meeting to obtain the framework document from DOE's Web site and 
to be prepared to discuss its contents. However, public meeting 
participants need not limit their comments to the topics identified in 
the framework document. DOE is also interested in receiving views and 
information concerning other relevant issues that participants believe 
would affect energy conservation standards for these products or that 
DOE should address in the NOPR.
    Furthermore, DOE welcomes all interested parties, regardless of 
whether they participate in the public meeting, to submit in writing by 
June 17, 2010, comments and information on matters addressed in the 
framework document and on other matters relevant to consideration of 
standards for the exempt IRLs.
    The public meeting will be conducted in an informal, conference 
style. A court reporter will be present to record the minutes of the 
meeting. There shall be no discussion of proprietary information, costs 
or prices, market shares, or other commercial matters regulated by 
United States antitrust laws.
    After the public meeting and the expiration of the period for 
submitting written statements, DOE will consider all comments and 
additional information that is obtained from interested parties or 
through further analyses, and it will prepare a NOPR which will be 
published in the Federal Register. The NOPR will include proposed 
energy conservation standards for the products covered by the 
rulemaking, and members of the public will be given an opportunity to 
submit written and oral comments on the proposed standards.

    Issued in Washington, DC, on April 23, 2010.
Cathy Zoi,
Assistant Secretary, Energy Efficiency and Renewable Energy.
[FR Doc. 2010-10104 Filed 4-30-10; 8:45 am]
BILLING CODE 6450-01-P