[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

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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