[Federal Register Volume 76, Number 41 (Wednesday, March 2, 2011)]
[Proposed Rules]
[Pages 11396-11399]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-4607]
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DEPARTMENT OF ENERGY
10 CFR Part 431
[Docket No. EERE-2010-BT-STD-0048]
RIN 1904-AC04
Energy Conservation Standards for Distribution Transformers:
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 or Department) will hold a
public meeting to discuss and receive comments on the following issues:
The equipment classes DOE plans to analyze for the purpose of
considering the amendment of energy conservation standards for
distribution transformers; the analytical framework, models, and tools
DOE is using to evaluate standards for this type of equipment; the
results of preliminary analyses performed by DOE for this equipment;
and potential energy conservation standard levels derived from these
analyses that DOE could consider for this equipment. DOE also
encourages interested parties to submit written comments on these
subjects. To inform stakeholders and facilitate the public meeting and
comment process, DOE has prepared an agenda, a preliminary technical
support document (TSD), and briefing materials, which are available at:
http://www.eere.energy.gov/buildings/appliance_standards/commercial/distribution_transformers.html.
[[Page 11397]]
DATES: The Department will hold a public meeting on Tuesday, April 5,
2011, from 9 a.m. to 5 p.m. in Washington, DC. Any person requesting to
speak at the public meeting should submit such request, along with an
electronic copy of the statement to be given at the public meeting,
before 4 p.m., Tuesday, March 29, 2011. Written comments are welcome,
especially following the public meeting, and should be submitted by
April 18, 2011.
ADDRESSES: The public meeting will be held at the U.S. Department of
Energy, Forrestal Building, Room 1E-245, 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 the notice
title, the Notice of Public Meeting (NOPM) for Energy Conservation
Standards for Distribution Transformers, and provide the docket number
EERE-2010-BT-STD-0048 and/or regulatory information number (RIN) 1904-
AC04. Comments may be submitted using any of the following methods:
Federal eRulemaking Portal: http://www.regulations.gov.
Follow the instructions for submitting comments.
E-mail: [email protected].
Include EERE-2010-BT-STD-0048 and/or RIN 1904-AC04 in the subject line
of the message.
Mail: Ms. Brenda Edwards, U.S. Department of Energy,
Building Technologies Program, Mailstop EE-2J, Public Meeting for
Distribution Transformers, EERE-2010-BT-STD-0048 and/or RIN 1904-AC04,
1000 Independence Avenue, SW., Washington, DC 20585-0121. Phone: (202)
586-2945. Please submit one signed paper original.
Hand Delivery/Courier: Ms. Brenda Edwards, U.S. Department
of Energy, Building Technologies Program, 6th Floor, 950 L'Enfant
Plaza, SW., Washington, DC 20024. Phone: (202) 586-2945. Please submit
one signed paper original.
Instructions: All submissions received must include the agency name
and docket number or RIN for this proposed rulemaking.
Docket: For access to the docket to read background documents, a
copy of the transcript of the public meeting, or comments received, go
to the U.S. Department of Energy, 6th Floor, 950 L'Enfant Plaza, SW.,
Washington, DC 20024, between 9 a.m. and 4 p.m., Monday through Friday,
except Federal holidays. Please call Ms. Brenda Edwards for additional
information regarding visiting the Resource Room.
FOR FURTHER INFORMATION CONTACT: Mr. Jim Raba, 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) 586-8654. E-mail: [email protected].
Ms. Jennifer Tiedeman, U.S. Department of Energy, Office of the
General Counsel, GC-71, 1000 Independence Avenue, SW., Washington, DC
20585. Telephone: (202) 287-6111. E-mail:
mailto:[email protected].
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Statutory Authority
II. History of Standards Rulemaking for Distribution Transformers
A. Background
B. Current Rulemaking Process
III. Summary of the Analyses Performed by the U.S. Department of
Energy
A. Engineering Analysis
B. Markups to Determine Equipment Prices
C. Energy Use Analysis
D. Life-Cycle Cost and Payback Period Analyses
E. National Impact Analysis
I. Statutory Authority
Title III, Part C of the Energy Policy and Conservation Act of 1975
(EPCA), Public Law 94-163 (42 U.S.C. 6311-6317, as codified), added by
Public Law 95-619, Title IV, Sec. 441(a), established the Energy
Conservation Program for Certain Industrial Equipment, a program
covering distribution transformers, the focus of this notice.\1\ EPCA,
as amended by the Energy Policy Act of 1992, Public Law 102-486,
directs the U.S. Department of Energy (DOE or the Department) to
prescribe energy conservation standards for those distribution
transformers for which the Secretary of Energy (Secretary) determines
that standards ``would be technologically feasible and economically
justified, and would result in significant energy savings.'' (42 U.S.C.
6317(a)) As discussed below in section II.A, DOE issued a final rule
that prescribed standards for distribution transformers. 72 FR 58190
(October 12, 2007) (the 2007 final rule); see 10 CFR 431.196(b)-(c).
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\1\ For editorial reasons, upon codification in the U.S. Code,
Part C was re-designated Part A-1.
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Following the 2007 final rule, several interested parties filed
petitions alleging that DOE's environmental assessment, conducted for
the rulemaking, failed to address employment impacts, the value of
reduced carbon dioxide emissions, and impacts on the price of energy,
as required by the National Environmental Policy Act of 1969. Under the
terms of a settlement agreement dated July 10, 2009, DOE is required to
review the standards for liquid-immersed and medium-voltage dry-type
(MVDT) distribution transformers and publish, no later than October 1,
2011, in the Federal Register either a determination that standards for
these products do not need to be amended, or a notice of proposed
rulemaking including any new proposed standards for these products. If
it is determined that an amendment to the standards is warranted, DOE
is required to publish a final rule in the Federal Register no later
than October 1, 2012.
Before DOE amends any standard for distribution transformers,
however, it must first solicit comments on a proposed standard.
Moreover, DOE will design each standard for this equipment to: (1)
Achieve the maximum improvement in energy efficiency that is
technologically feasible and economically justified, and (2) result in
significant conservation of energy. (42 U.S.C. 6295(o)(2)(A) and
(o)(3), 42 U.S.C. 6316(a), and 42 U.S.C. 6317(a) and (c)) 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
customers of equipment subject to the standard;
2. The savings in operating costs throughout the estimated
average life of the covered equipment in the type (or class)
compared to any increase in the price, initial charges, or
maintenance expenses for the covered equipment which are likely to
result from the imposition of the standard;
3. The total projected amount of energy savings likely to result
directly from the imposition of the standard;
4. Any lessening of the utility or the performance of the
covered equipment likely to result from the imposition of the
standard;
5. The impact of any lessening of competition, as determined in
writing by the Attorney General, that is likely to result from the
imposition of the standard;
6. The need for national energy conservation; and
7. Other factors the Secretary considers relevant.
[[Page 11398]]
(42 U.S.C. 6295(o)(2)(B)(i) and 6316(a))
Prior to 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. With
this notice, DOE is announcing the availability of the preliminary
technical support document (preliminary (TSD)), which details the
preliminary analyses 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 Distribution Transformers
The following sections provide a brief summary of DOE's rulemaking
activities for distribution transformer energy conservation standards.
A. Background
DOE published a final rule in October 2007 that established energy
conservation standards for liquid-immersed and MVDT distribution
transformers. 72 FR 58190 (October 12, 2007); see 10 CFR 431.196(b)-
(c). During the course of that rulemaking, the Energy Policy Act of
2005 (EPACT 2005), Public Law 109-58, amended EPCA to set standards for
low-voltage dry-type (LVDT) distribution transformers. (EPACT 2005,
Section 135(c); codified at 42 U.S.C. 6295(y)) Consequently, DOE
removed these transformers from the scope of that rulemaking. 72 FR at
58191 (October 12, 2007).
After publication of the 2007 final rule, certain parties filed
petitions for review in the United States Courts of Appeals for the
Second and Ninth Circuits, challenging the final rule, and several
additional parties were permitted to intervene in support of these
petitions. (All of these parties are referred to below collectively as
``petitioners.'') The petitioners alleged that, in developing energy
conservation standards for distribution transformers, DOE did not
comply with certain applicable provisions of EPCA and of the National
Environmental Policy Act of 1969 (NEPA), 42 U.S.C. 4321 et seq. DOE and
the petitioners subsequently entered into a settlement agreement to
resolve that litigation. The settlement agreement outlined an expedited
timeline for the Department to determine whether to amend the energy
conservation standards for liquid-immersed and MVDT distribution
transformers. Under the terms of the settlement agreement, DOE must
publish by October 1, 2011 either a determination that the standards
for these distribution transformers do not need to be amended or a
notice of public rulemaking (NOPR) that includes any new proposed
standards and that meets all applicable requirements of EPCA and NEPA.
If DOE finds that amended standards are warranted, DOE must publish a
final rule containing such amended standards by October 1, 2012. This
notice is the Department's first step in satisfying the requirements of
the settlement agreement.
B. Current Rulemaking Process
DOE is initiating this rulemaking at the preliminary analysis stage
rather than the framework document stage. In considering new or amended
standards for a given product or type of equipment, DOE's historic
practice, generally, is to publish a framework document as the first
step in the rulemaking process, and to subsequently issue a preliminary
TSD that contains the Department's preliminary analyses as to potential
standards. The framework document generally advises interested parties
of the analytical methods, data sources, and key assumptions DOE plans
to use in considering the adoption of standards for the product or
equipment type. Typically the document does not contain any analysis of
the data.
On November 16, 2010, DOE announced a number of steps meant to
streamline its regulatory process. Among these measures was the concept
that, in appropriate circumstances, DOE might forego certain
preliminary stages of the rulemaking process and gather data in more
efficient ways. Because the previous rulemaking to develop standards
for distribution transformers was completed in 2007, DOE has a set of
methodologies, data sources and assumptions that have recently been
vetted and revised according to public comments that the Department can
use to perform the analyses needed for this rulemaking. Therefore,
while DOE will conduct the analyses referenced by the petitioners'
complaint and required by EPCA and NEPA according to standard practices
for energy conservation standard rulemakings, DOE is not issuing a
framework document for this rulemaking. Rather, DOE is initiating this
rulemaking at the preliminary analysis stage and has prepared a
preliminary TSD about which it is requesting comment.
At present, DOE plans to examine in this rulemaking amended
standards for LVDT distribution transformers, as well as amended
standards for liquid-immersed and MVDT transformers. DOE is not
required to consider LVDT distribution transformers as part of the
settlement agreement. As such, DOE may subsequently opt to conduct a
separate rulemaking for LVDT transformers with a different timeline.
However, the preliminary analysis considers LVDT distribution
transformers along with liquid-immersed and MVDT distribution
transformers.
III. Summary of the Analyses Performed by the U.S. Department of Energy
For each type of equipment under consideration in this rulemaking,
DOE conducted in-depth technical analyses in the following areas: (1)
Engineering, (2) markups to determine equipment price, (3) energy use,
(4) life-cycle cost (LCC) and payback period (PBP) analyses, and (5)
national impact analysis (NIA). The preliminary TSD presents the
methodology and results of each of these analyses. It is available at
the web address given in the SUMMARY section of this notice. The
analyses are described in more detail below.
DOE also conducted several other analyses that either support the
five aforementioned analyses or are preliminary analyses that will be
expanded upon for the NOPR. These analyses include the market and
technology assessment, the screening analysis (which contributes to the
engineering analysis), and the shipments analysis (which contributes to
the NIA). In addition to these analyses, DOE has completed preliminary
work on the manufacturer impact analysis (MIA) and identified the
methods to be used for the LCC subgroup analysis, the environmental
assessment, the employment impact analysis, the regulatory impact
analysis, and the utility impact analysis. DOE will expand on these
analyses in the NOPR. In conducting these analyses, DOE will
specifically consider employment impacts, the value of reduced carbon
dioxide emissions, impacts on the price of energy, and cumulative
climate change impacts, which were the focus of the petitioners'
complaint from the previous rulemaking.
A. Engineering Analysis
The engineering analysis establishes the relationship between the
cost and efficiency of the equipment DOE is evaluating. This
relationship serves as the basis for cost-benefit calculations for
individual customers, manufacturers, and the nation. The engineering
analysis identifies representative baseline
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equipment, which is the starting point for analyzing technologies that
provide energy efficiency improvements. Baseline equipment refers to a
model or models having features and technologies typically found in
equipment currently offered for sale. The baseline model in each
equipment class represents the characteristics of the least efficient
equipment in that class and, for equipment 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. Markups To Determine Equipment Prices
DOE derives customer prices for equipment from data on manufacturer
costs, manufacturer markups, retailer markups, distributor markups, and
sales taxes. In deriving these markups, DOE has determined (1) The
distribution channels for equipment sales; (2) the markup associated
with each party in the distribution chain; and (3) the existence and
magnitude of differences between markups for baseline equipment
(baseline markups) and for more efficient equipment (incremental
markups). DOE calculates both overall baseline and overall incremental
markups based on the equipment markups at each step in the distribution
chain. 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. Chapter 6 of the preliminary TSD discusses estimating markups.
C. Energy Use Analysis
The energy use analysis provides estimates of the annual energy
consumption of distribution transformers. DOE uses these values in the
LCC and PBP analyses and in the NIA. DOE developed energy consumption
estimates for all equipment analyzed in the engineering analysis and
for those non-analyzed equipment classes included in the NIA. Chapter 7
of the preliminary TSD discusses the energy use analysis.
D. Life-Cycle Cost and Payback Period Analyses
The LCC and PBP analyses determine the economic impact of potential
standards on individual customers. The LCC is the total customer
expense for equipment over the life of the equipment. The LCC analysis
compares the LCCs of equipment designed to meet possible energy
conservation standards with the LCCs of the equipment likely to be
installed in the absence of amended standards. DOE determines LCCs by
considering (1) Total or incremental installed cost to the purchaser
(which consists of manufacturer selling price, sales taxes,
distribution chain markups, and installation cost); (2) the operating
expenses of the equipment (energy use and maintenance); (3) expected
equipment lifetime; and (4) a discount rate that reflects the real
consumer cost of capital and puts the LCC in present-value terms. The
PBP is the number of years needed to recover the increase in purchase
price (including installation cost) of more efficient equipment through
savings in the operating cost of the equipment. It is the quotient of
the change in total installed cost due to increased efficiency divided
by the change in annual operating cost from increased efficiency.
Chapter 8 of the preliminary TSD discusses the LCC and PBP analyses.
E. National Impact Analysis
The NIA estimates the national energy savings (NES) and the net
present value (NPV) of total customer costs and savings expected to
result from amended standards at specific efficiency levels. DOE
calculated NES and NPV for each candidate standard level as the
difference between a base case forecast (without amended standards) and
the standards case forecast (with standards at that particular level).
Cumulative energy savings are the sum of the annual NES determined over
a specified analysis 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,
estimated equipment lifetimes, and estimates of changes in shipments in
response to changes in equipment costs due to standards. Chapter 10 of
the preliminary TSD discusses the NIA.
DOE consulted with interested parties as part of its process for
conducting all of the analyses and invites further input from the
public on these topics. The preliminary analytical results are subject
to revision following review and input from the public. The final rule
will contain the final analysis results.
The Department encourages those who wish to participate in the
public meeting to obtain the preliminary TSD and to be prepared to
discuss its contents. A copy of the preliminary TSD is available at the
web address given in the SUMMARY section of this notice. However,
public meeting participants need not limit their comments to the topics
identified in the preliminary TSD. The Department is also interested in
receiving views concerning other relevant issues that participants
believe would affect energy conservation standards for this equipment
or that DOE should address in the NOPR.
Furthermore, the Department invites all interested parties,
regardless of whether they participate in the public meeting, to submit
in writing by April 18, 2011, comments and information on matters
addressed in the preliminary TSD and on other matters relevant to
consideration of standards for distribution transformers.
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, the Department will consider all
comments and additional information that it obtains from interested
parties or through further analyses. Afterwards, the Department will
publish either a determination that the standards for distribution
transformers need not be amended or a NOPR proposing to amend those
standards. Any NOPR will include proposed energy conservation standards
for the equipment covered by this 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 February 23, 2011.
Cathy Zoi,
Assistant Secretary, Energy Efficiency and Renewable Energy.
[FR Doc. 2011-4607 Filed 3-1-11; 8:45 am]
BILLING CODE 6450-01-P