[Federal Register Volume 76, Number 61 (Wednesday, March 30, 2011)]
[Proposed Rules]
[Pages 17573-17577]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-7452]
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DEPARTMENT OF ENERGY
10 CFR Part 431
[Docket No. EERE-2010-BT-STD-0003]
RIN 1904-AC19
Energy Conservation Standards for Commercial Refrigeration
Equipment: 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 equipment classes that DOE plans
to analyze for establishing energy conservation standards for
commercial refrigeration equipment; the analytical framework, models,
and tools that DOE is using to evaluate standards for this equipment;
the results of preliminary analyses performed by DOE for this
equipment; the potential energy conservation standard levels derived
from these analyses that DOE could consider for this equipment; and any
other issues relevant to the development of energy conservation
standards for commercial refrigeration equipment. In addition, 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 (preliminary TSD), and briefing
materials.
DATES: DOE will hold a public meeting on Tuesday, April 19, 2011, from
9 a.m. to 2 p.m. in Washington, DC. Additionally, DOE plans to allow
for participation in the public meeting via webinar. DOE will accept
comments, data, and other information regarding this rulemaking before
or after the public meeting, but no later than May 16, 2011. See
section IV, ``Public Participation,'' of this notice of public meeting
(NOPM) for details.
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 which require advance notice prior to attendance
of the public meeting. 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-2010-BT-STD-0003 or Regulation Identification Number (RIN) 1904-
AC19, by any of the following methods:
Federal eRulemaking Portal: http://www.regulations.gov.
Follow the instructions for submitting comments.
E-mail: [email protected]. Include the docket
number EERE-2010-BT-STD-0003 and/or RIN 1904-AC19 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 Commercial Refrigeration Equipment, EERE-2010-BT-STD-0003, 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, 6th 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 docket
number or RIN for this rulemaking. For detailed instructions on
submitting comments and additional information on the rulemaking
process, see section IV, ``Public Participation,'' of this document.
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, 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 at (202) 586-
2945 for additional information regarding visiting the Resource Room.
DOE has prepared an agenda, a preliminary TSD, and briefing
materials, which are available at: http://www1.eere.energy.gov/buildings/appliance_standards/commercial/refrigeration_equipment.html.
FOR FURTHER INFORMATION CONTACT: Direct requests for additional
information to Mr. Charles Llenza, 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-
2192. E-mail: [email protected]. In the Office of General
Counsel, contact Mr. Michael Kido, U.S. Department of Energy, Office of
the General Counsel, GC-71, 1000 Independence Avenue, SW., Washington,
DC 20585-0121, (202) 586-8145, [email protected]; or Ms.
Elizabeth Kohl, U.S. Department of Energy, Office of the General
Counsel, GC-71, 1000 Independence Avenue, SW., Washington, DC 20585-
0121, (202) 586-7796, [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. Statutory Authority
II. History of Standards Rulemaking for Commercial Refrigeration
Equipment
A. Background
B. Current Rulemaking Process
III. Summary of the Analyses Performed by DOE
A. Engineering Analysis
B. Markups To Determine Installed Price
C. Energy Use Analysis
D. Life-Cycle Cost and Payback Period Analyses
E. National Impact Analysis
F. Submission of Comments
IV. Public Participation
A. Attendance at Public Meeting
B. Procedure for Submitting Requests To Speak
C. Conduct of Public Meeting
D. Submission of Comments
V. Approval of the Office of the Secretary
I. Statutory Authority
Title III of the Energy Policy and Conservation Act of 1975, as
amended, (EPCA or the Act) sets forth a variety of provisions designed
to improve energy efficiency. Part B of Title III (42 U.S.C. 6291-6309)
provides for the Energy
[[Page 17574]]
Conservation Program for Consumer Products Other Than Automobiles. Part
C of Title III, which established an energy conservation program for
certain industrial equipment \a\ (42 U.S.C. 6311-6317), includes
provisions for commercial refrigeration equipment, which is the subject
of this rulemaking.
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\a\ For editorial reasons, Parts B and C were re-designated as
Parts A and A-1, respectively, on codification in the U.S. Code.
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DOE is required to 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)(B); 42 U.S.C. 6316(e)(1)(A)) To determine whether a proposed
standard is economically justified, DOE will, after receiving comments
on the proposed standard, determine whether the benefits of the
standard exceed its burdens to the greatest extent practicable, using
the following seven factors:
1. The economic impact of the standard on manufacturers and
consumers 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 of Energy considers relevant.
(See 42 U.S.C. 6295(o)(2)(B)(i); 6316(e)(1)(A))
Before proposing a standard, DOE typically seeks public input on
the analytical framework, models, and tools that DOE will use to
evaluate standards for the product at issue; and the results of
preliminary analyses DOE performed for the product. DOE publishes this
document to announce the availability of the preliminary TSD, which
details the preliminary analyses, discusses the comments on the
framework document, and summarizes the preliminary results of DOE's
analyses. In addition, DOE announces a public meeting to solicit
feedback from interested parties on its analytical framework, models,
and preliminary results.
II. History of Standards Rulemaking for Commercial Refrigeration
Equipment
A. Background
EPCA, as amended by EPACT 2005, prescribes energy conservation
standards for certain commercial refrigeration equipment: self-
contained commercial refrigerators, freezers and refrigerator-freezers
with transparent and solid doors designed for holding temperature
applications, and self-contained commercial refrigerators with
transparent doors designed for pull-down temperature applications. (42
U.S.C. 6313(c)(2)-(3)) Compliance with these standards was required as
of January 1, 2010. Id. In addition, EPCA required DOE to set standards
for additional commercial refrigeration equipment, namely: commercial
ice-cream freezers; self-contained commercial refrigerators, freezers,
and refrigerator-freezers without doors; and remote condensing
commercial refrigerators, freezers, and refrigerator-freezers. (See
generally, 42 U.S.C. 6313(c)(4)) DOE published a final rule
establishing these standards on January 9, 2009 (74 FR 1092), and
manufacturers must comply with these standards starting on January 1,
2012. (42 U.S.C. 6313(c)(4)(A))
Additionally, EPCA requires DOE to conduct a second rulemaking to
determine whether to amend the standards established under 42 U.S.C.
6313(c), which includes both the standards prescribed by EPACT 2005 and
those prescribed by DOE in the January 2009 final rule. (42 U.S.C.
6313(c)(5)) If DOE decides as part of this ongoing rulemaking to amend
the standards, DOE must publish a final rule establishing such amended
standards by January 1, 2013. Id.
B. Current Rulemaking Process
In initiating this rulemaking, DOE prepared a framework document,
``Rulemaking Framework for Commercial Refrigeration Equipment,'' which
describes the procedural and analytical approaches DOE anticipates
using to evaluate energy conservation standards for commercial
refrigeration equipment. DOE published a notice that announced both the
availability of the framework document and a public meeting to discuss
the proposed analytical framework for the rulemaking. That notice also
invited written comments from the public. 75 FR 24824 (May 6, 2010).
The framework document is available at http://www1.eere.energy.gov/buildings/appliance_standards/commercial/pdfs/cre_framework_04-30-10.pdf.
DOE held a public meeting on May 18, 2010, at which it presented
the various analyses DOE would conduct as part of the rulemaking, such
as the engineering analysis, the life-cycle cost (LCC) and payback
period (PBP) analyses, and the national impact analysis (NIA).
Manufacturers, trade associations, environmental and energy-efficiency
advocates and other interested parties attended the meeting. The
participants discussed the following major topics: (1) Issues
pertaining to the scope of coverage of the current rulemaking; (2)
equipment classes; (3) analytical approaches and methods used in the
rulemaking; (4) impacts of standards and burden on manufacturers; (5)
technology options; (6) distribution channels, shipments, and end
users; (7) impacts of outside regulations; and (8) environmental
issues.
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, available at the Web
address given in the ADDRESSES section of this notice, summarizes and
addresses the comments received in response to the framework document.
III. Summary of the Analyses Performed by DOE
For the commercial refrigeration equipment covered in this
rulemaking, DOE conducted in-depth technical analyses in the following
areas: (1) Engineering; (2) markups to determine equipment price; (3)
life-cycle cost and payback period; and (4) national impacts. The
preliminary TSD that presents the methodology and results of each of
these analyses is available at http://www1.eere.energy.gov/buildings/appliance_standards/commercial/refrigeration_equipment.html.
DOE also conducted, and has included in the preliminary TSD,
several other analyses that either support the five major analyses.
These analyses include: (1) The market and technology assessment; (2)
the screening analysis, which contributes to the engineering analysis;
and (3) the shipments analysis, which contributes to the LCC and PBP
analysis and NIA. In addition to these analyses, DOE has begun
preliminary work on the manufacturer impact analysis and identified the
methods to be used for the
[[Page 17575]]
LCC subgroup analysis, the environmental assessment, the employment
analysis, the regulatory impact analysis, and the utility impact
analysis. DOE will expand on these analyses in the notice of proposed
rulemaking (NOPR).
A. Engineering Analysis
The engineering analysis establishes the relationship between the
manufacturer selling price and equipment efficiency that DOE is
evaluating for energy conservation standards. This relationship serves
as the basis for cost-benefit calculations for individual consumers,
manufacturers, and the nation. The engineering analysis identifies
representative baseline 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 the minimum efficiency equipment
currently available on the market. After identifying the baseline
models, DOE estimated manufacturer selling prices by using a consistent
methodology and pricing scheme including material costs, cost of
shipping, and manufacturer markups. DOE used these inputs to develop
manufacturer selling prices for the baseline and more efficient
designs. Later, in the markups to determine the installed price
analysis, DOE converts these manufacturer selling prices into installed
prices. In the preliminary TSD, section 2.4 of chapter 2 and chapter 5
each provide details on the engineering analysis and the derivation of
the manufacturer selling prices.
B. Markups To Determine Installed Price
DOE derives the installed prices for equipment based on
manufacturer markups, distributor markups, contractor markups, and
sales taxes. In deriving these markups, DOE determined the major
distribution channels for equipment sales, the markup associated with
each party in each distribution channel, and the existence and
magnitude of differences between markups for baseline equipment
(baseline markups) and higher efficiency equipment (incremental
markups). DOE calculates both overall baseline and overall incremental
markups based on the equipment markups at each step in each
distribution channel. In the preliminary TSD, section 2.5 of chapter 2
and chapter 6 provide detail on the estimation of markups.
C. Energy Use Analysis
DOE carries out the energy use analysis to estimate the energy
consumption of the commercial refrigeration equipment installed in the
field, such as in grocery stores and restaurants. DOE also carries out
additional studies to understand the impact of variations in building
interior temperature and relative humidity on the energy consumption of
the refrigeration equipment. Details of the energy use analysis are
provided in section 2.6 of chapter 2 and chapter 7 of the TSD.
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 cost of the
equipment to the customer 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 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 cost of the equipment (energy
cost and maintenance and repair cost); (3) 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 represents the number of
years needed to recover the increase in purchase price (including
installation cost) of higher efficiency equipment through savings in
the operating cost of the equipment. PBP is calculated by dividing the
incremental increase in installed cost of the higher efficiency
equipment, compared to baseline equipment, by the annual savings in
operating costs. Section 2.7 of chapter 2 and chapter 8 of the
preliminary TSD provide details 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 candidate standard level for commercial refrigeration
equipment 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 the average unit energy consumption
(also by vintage). Cumulative energy savings are the sum of the annual
NES determined from 2016-2045. 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,
equipment retirement rates (based on estimated equipment lifetimes),
equipment installed costs and operating costs, equipment annual energy
consumption, and discount rates. Section 2.8 of chapter 2 and chapter
10 of the preliminary TSD provide details on the NIA.
IV. Public Participation
DOE invites input from the public on all the topics described
above. The preliminary analytical results are subject to revision
following further review and input from the public. A complete and
revised TSD will be made available upon issuance of a NOPR. The final
rule establishing any amended energy conservation standards 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 from DOE's Web site and to be prepared to
discuss its contents. A copy of the preliminary TSD is available at the
Web at http://www1.eere.energy.gov/buildings/appliance_standards/commercial/refrigeration_equipment.html. However, public meeting
participants need not limit their comments to the topics identified in
the preliminary TSD. DOE 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, DOE welcomes all interested parties, regardless of
whether they participate in the public meeting, to submit in writing by
May 16, 2011 comments and information on matters addressed in the
preliminary TSD and on other matters relevant to consideration of
standards for commercial refrigeration equipment.
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.
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After the public meeting and the closing of the comment period, DOE
will consider all timely submitted comments and additional information
obtained from interested parties, as well as information obtained
through further analyses, and prepare a NOPR. The NOPR will include
proposed energy conservation standards for the equipment covered by the
rulemaking, and members of the public will be given an opportunity to
submit written and oral comments on the proposed standards.
A. Attendance at Public Meeting
The time and date of the public meeting are listed in the DATES and
ADDRESSES sections at the beginning of this NOPM. 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. Any foreign national wishing to participate in the meeting
should advise DOE of this fact as soon as possible by contacting Ms.
Brenda Edwards to initiate the necessary procedures.
You can attend the public meeting via webinar, and registration
information, participant instructions, and information about the
capabilities available to webinar participants will be published on the
following Web site: http://www1.eere.energy.gov/buildings/appliance_standards/commercial/refrigeration_equipment.html. Participants are
responsible for ensuring their systems are compatible with the webinar
software.
The purpose of the meeting is to receive comments and to help DOE
understand potential issues associated with this proposed rulemaking.
DOE must receive requests to speak at the meeting before 4 p.m.,
Tuesday, April 12, 2011. DOE must receive a signed original and an
electronic copy of statements to be given at the public meeting before
4 p.m., Tuesday, April 12, 2011.
B. Procedure for Submitting Requests To Speak
Any person who has an interest in today's notice or who is a
representative of a group or class of persons that has an interest in
these issues may request an opportunity to make an oral presentation.
Such persons may hand-deliver requests to speak, along with a computer
diskette or CD in WordPerfect, Microsoft Word, PDF, or text (ASCII)
file format to the address shown in the ADDRESSES section at the
beginning of this NOPM between 9 a.m. and 4 p.m. Monday through Friday,
except Federal holidays. Requests may also be sent by mail or e-mail to
[email protected].
Persons requesting to speak should briefly describe the nature of
their interest in this rulemaking and provide a telephone number for
contact. DOE requests persons selected to be heard to submit an advance
copy of their statements at least two weeks before the public meeting.
At its discretion, DOE may permit any person who cannot supply an
advance copy of their statement to participate, if that person has made
advance alternative arrangements with the Building Technologies
Program. The request to give an oral presentation should ask for such
alternative arrangements.
C. Conduct of Public Meeting
DOE will designate a DOE official to preside at the public meeting
and may also employ a professional facilitator to aid discussion. The
meeting will not be a judicial or evidentiary-type public hearing, but
DOE will conduct it in accordance with section 336 of EPCA. (42 U.S.C.
6306) A court reporter will record the proceedings and prepare a
transcript. DOE reserves the right to schedule the order of
presentations and to establish the procedures governing the conduct of
the public meeting. After the public meeting, interested parties may
submit further comments on the proceedings as well as on any aspect of
the rulemaking until the end of the comment period.
The public meeting will be conducted in an informal conference
style. DOE will present summaries of comments received before the
public meeting, allow time for presentations by participants, and
encourage all interested parties to share their views on issues
affecting this rulemaking. Each participant will be allowed to make a
prepared general statement (within DOE-determined time limits) prior to
the discussion of specific topics. DOE will permit other participants
to comment briefly on any general statements.
At the end of all prepared statements on a topic, DOE will permit
participants to clarify their statements briefly and comment on
statements made by others. Participants should be prepared to answer
questions from DOE and other participants concerning these issues. DOE
representatives may also ask questions of participants concerning other
matters relevant to this rulemaking. The official conducting the public
meeting 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 that
may be needed for the proper conduct of the public meeting.
DOE will make the entire record of this proposed rulemaking,
including the transcript from the public meeting, available for
inspection at the U.S. Department of Energy, 6th 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. The transcript
will also be available on DOE's Web site at: http://www1.eere.energy.gov/buildings/appliance_standards/commercial/refrigeration_equipment.html.
D. Submission of Comments
DOE will accept comments, data, and other information regarding the
proposed rule before or after the public meeting, but no later than the
date provided at the beginning of this NOPM. Please submit comments,
data, and other information as provided in the ADDRESSES section.
Submit electronic comments in WordPerfect, Microsoft Word, PDF, or text
(ASCII) file format and avoid the use of special characters or any form
of encryption. Comments in electronic format should be identified by
the docket number EERE-2010-BT-STD-0003 and/or RIN 1904-AC19 and
wherever possible carry the electronic signature of the author. No
telefacsimiles (faxes) will be accepted.
According to 10 CFR 1004.11, any person submitting information that
he or she believes to be confidential and exempt by law from public
disclosure should submit two copies: One copy of the document including
all the information believed to be confidential and one copy of the
document with the information believed to be confidential deleted. DOE
will make its own determination as to the confidential status of the
information and treat it according to its determination.
Factors of interest to DOE when evaluating requests to treat
submitted information as confidential include (1) a description of the
items; (2) 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) a date upon which such information might lose
its confidential nature due to the
[[Page 17577]]
passage of time; and (7) why disclosure of the information would be
contrary to the public interest.
V. Approval of the Office of the Secretary
The Secretary of Energy has approved publication of this NOPM.
Issued in Washington, DC, on March 24, 2011.
Kathleen B. Hogan,
Deputy Assistant Secretary for Energy Efficiency, Office of Technology
Development, Energy Efficiency and Renewable Energy.
[FR Doc. 2011-7452 Filed 3-29-11; 8:45 am]
BILLING CODE 6450-01-P