[Federal Register Volume 81, Number 209 (Friday, October 28, 2016)]
[Proposed Rules]
[Pages 74950-74962]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-24758]


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 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. 81, No. 209 / Friday, October 28, 2016 / 
Proposed Rules  

[[Page 74950]]


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DEPARTMENT OF ENERGY

10 CFR Part 430

[Docket Number EERE-2011-BT-STD-0043]
RIN 1904-AC51


Energy Conservation Program: Energy Conservation Standards for 
Miscellaneous Refrigeration Products

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

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Energy Policy and Conservation Act of 1975 (``EPCA''), as 
amended, established the Energy Conservation Program for Consumer 
Products Other Than Automobiles. Based on provisions in EPCA that 
enable the Secretary of Energy to classify additional types of consumer 
products as covered products, the U.S. Department of Energy (``DOE'') 
classified miscellaneous refrigeration products (``MREFs'') as covered 
consumer products under EPCA. In determining whether to set standards 
for products, DOE must evaluate whether new standards would be 
technologically feasible and economically justified, and would save a 
significant amount of energy. In this proposed rule, DOE proposes new 
energy conservation standards for MREFs identical to those set forth in 
a direct final rule published elsewhere in this Federal Register. If 
DOE receives adverse comment and determines that such comment may 
provide a reasonable basis for withdrawal, DOE will publish a notice 
withdrawing the final rule and will proceed with this proposed rule.

DATES: DOE will accept comments, data, and information regarding the 
proposed standards no later than February 15, 2017.
    Comments regarding the likely competitive impact of the proposed 
standard should be sent to the Department of Justice contact listed in 
the ADDRESSES section before November 28, 2016.

ADDRESSES: See section III, ``Public Participation,'' for details. If 
DOE withdraws the direct final rule published elsewhere in this Federal 
Register, DOE will hold a public meeting to allow for additional 
comment on this proposed rule. DOE will publish notice of any meeting 
in the Federal Register.
    Any comments submitted must identify the proposed rule for Energy 
Conservation Standards for Miscellaneous Refrigeration Products, and 
provide docket number EERE-2011-BT-STD-0043 and/or regulatory 
information number (RIN) number 1904-AC51. Comments may be submitted 
using any of the following methods:
    1. Federal eRulemaking Portal: www.regulations.gov. Follow the 
instructions for submitting comments.
    2. Email: [email protected]. Include the docket 
number and/or RIN in the subject line of the message. Submit electronic 
comments in WordPerfect, Microsoft Word, PDF, or ASCII file format, and 
avoid the use of special characters or any form of encryption.
    3. Postal Mail: Appliance and Equipment Standards Program, U.S. 
Department of Energy, Building Technologies Office, Mailstop EE-5B, 
1000 Independence Avenue SW., Washington, DC, 20585-0121. If possible, 
please submit all items on a compact disc (CD), in which case it is not 
necessary to include printed copies.
    4. Hand Delivery/Courier: Appliance and Equipment Standards 
Program, U.S. Department of Energy, Building Technologies Office, 950 
L'Enfant Plaza SW., 6th Floor, Washington, DC 20024. Telephone: (202) 
586-6636. If possible, please submit all items on a CD, in which case 
it is not necessary to include printed copies.
    No telefacsimilies (faxes) will be accepted. For detailed 
instructions on submitting comments and additional information on the 
rulemaking process, see section III of this document (``Public 
Participation'').
    Written comments regarding the burden-hour estimates or other 
aspects of the collection-of-information requirements contained in this 
proposed rule may be submitted to Office of Energy Efficiency and 
Renewable Energy through the methods listed above and by email to 
[email protected].
    EPCA requires the Attorney General to provide DOE a written 
determination of whether the proposed standard is likely to lessen 
competition. The U.S. Department of Justice Antitrust Division invites 
input from market participants and other interested persons with views 
on the likely competitive impact of the proposed standard. Interested 
persons may contact the Division at [email protected] before 
November 28, 2016. Please indicate in the ``Subject'' line of your 
email the title and Docket Number of this rulemaking notice.
    Docket: The docket, which includes Federal Register notices, public 
meeting attendee lists and transcripts, comments, and other supporting 
documents/materials, is available for review at www.regulations.gov. 
All documents in the docket are listed in the www.regulations.gov 
index. However, some documents listed in the index may not be publicly 
available, such as those containing information that is exempt from 
public disclosure.
    A link to the docket Web page can be found at: http://www.regulations.gov/#!docketDetail;D=EERE-2011-BT-STD-0043. This Web 
page contains a link to the docket for this notice on the 
www.regulations.gov site. The www.regulations.gov Web page contains 
simple instructions on how to access all documents, including public 
comments, in the docket. See section III, ``Public Participation,'' for 
further information on how to submit comments through 
www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: Joseph Hagerman, U.S. Department of 
Energy, Office of Energy Efficiency and Renewable Energy, Building 
Technologies Office, EE-5B, 1000 Independence Avenue SW., Washington, 
DC, 20585-0121. Telephone: (202) 586-6590. Email: 
[email protected].
    For further information on how to submit a comment, review other 
public comments and the docket, or participate in the public meeting, 
contact the Appliance and Equipment Standards Program staff at (202) 
586-6636 or by email: [email protected].

SUPPLEMENTARY INFORMATION:

[[Page 74951]]

Table of Contents

I. Introduction and Legal Authority
    A. Legal Authority
    B. Rulemaking History
II. Proposed Standards
    A. TSLs Considered for Coolers
    B. TSLs Considered for Combination Cooler Refrigeration Products
    C. Summary of Benefits and Costs of the Proposed Standards
III. Public Participation
    A. Submission of Comments
    B. Public Meeting
IV. Procedural Issues and Regulatory Review
V. Approval of the Office of the Secretary

I. Introduction and Legal Authority

A. Legal Authority

    The Energy Policy and Conservation Act of 1975, as amended 
(``EPCA'') (Public Law 94-163 (December 22, 1975)) includes provisions 
covering the products addressed by this notice. EPCA addresses, among 
other things, the energy efficiency of certain types of consumer 
products. Relevant provisions of the Act specifically include 
definitions (42 U.S.C. 6291), energy conservation standards (42 U.S.C. 
6295), test procedures (42 U.S.C. 6293), labeling provisions (42 U.S.C. 
6294), and the authority to require information and reports from 
manufacturers (42 U.S.C. 6296).
    Under 42 U.S.C. 6292(a)(20), DOE may extend coverage over a 
particular type of consumer product provided that DOE determines that 
classifying products of such type as covered products is necessary or 
appropriate to carry out the purposes of EPCA and that the average 
annual per-household energy use by products of such type is likely to 
exceed 100 kilowatt-hours (``kWh'') or its British thermal unit 
(``Btu'') equivalent per year. See 42 U.S.C. 6292(b)(1). EPCA sets out 
the following additional requirements to establish energy conservation 
standards for a newly covered product: (1) The average per household 
domestic energy use by such products exceeded 150 kWh or its Btu 
equivalent for any 12-month period ending before such determination; 
(2) the aggregate domestic household energy use by such products 
exceeded 4.2 million kWh or its Btu equivalent for any such 12-month 
period; (3) substantial energy efficiency of the products is 
technologically feasible; and (4) applying a labeling rule is unlikely 
to be sufficient to induce manufacturers to produce, and consumers and 
other persons to purchase, products of such type that achieve the 
maximum level of energy efficiency. See 42 U.S.C. 6295(l)(1).
    Pursuant to EPCA, DOE's energy conservation program for covered 
products consists essentially of four parts: (1) Testing; (2) labeling; 
(3) the establishment of Federal energy conservation standards; and (4) 
certification and enforcement procedures. The Federal Trade Commission 
(``FTC'') is primarily responsible for labeling, and DOE implements the 
remainder of the program. Subject to certain criteria and conditions, 
DOE is required to develop test procedures to measure the energy 
efficiency, energy use, or estimated annual operating cost of each 
covered product. (42 U.S.C. 6295(o)(3)(A) and (r)) Manufacturers of 
covered products must use the prescribed DOE test procedure as the 
basis for certifying to DOE that their products comply with the 
applicable energy conservation standards adopted under EPCA and when 
making representations to the public regarding the energy use or 
efficiency of those products. (42 U.S.C. 6293(c) and 6295(s)) 
Similarly, DOE must use these test procedures to determine whether the 
products comply with standards adopted pursuant to EPCA. (42 U.S.C. 
6295(s)) The DOE test procedure for MREFs currently appears at title 10 
of the Code of Federal Regulations (``CFR'') part 430, subpart B, 
appendix A (appendix A).
    DOE follows specific criteria when prescribing new or amended 
standards for covered products. As indicated above, any new or amended 
standard for a covered product must be designed to achieve the maximum 
improvement in energy efficiency that is technologically feasible and 
economically justified. (42 U.S.C. 6295(o)(2)(A) and (3)(B)) 
Furthermore, DOE may not adopt any standard that would not result in 
the significant conservation of energy. (42 U.S.C. 6295(o)(3)) 
Moreover, DOE may not prescribe a standard: (1) for certain products, 
including MREFs, if no test procedure has been established for the 
product, or (2) if DOE determines by rule that the new or amended 
standard is not technologically feasible or economically justified. (42 
U.S.C. 6295(o)(3)(A)-(B)) In deciding whether a new or amended standard 
is economically justified, DOE must determine whether the benefits of 
the standard exceed its burdens. (42 U.S.C. 6295(o)(2)(B)(i)) DOE must 
make this determination after receiving comments on the proposed 
standard and considering, to the greatest extent practicable, the 
following seven factors:
    1. The economic impact of the standard on manufacturers and 
consumers of the 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 that are likely to result from the imposition of the 
standard;
    3. The total projected amount of energy, or as applicable, water, 
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 and water conservation; and
    7. Other factors the Secretary of Energy (Secretary) considers 
relevant.

(42 U.S.C. 6295(o)(2)(B)(i)(I)-(VII))

    Further, EPCA, as codified, establishes a rebuttable presumption 
that a standard is economically justified if the Secretary finds that 
the additional cost to the consumer of purchasing a product complying 
with an energy conservation standard level will be less than three 
times the value of the energy savings during the first year that the 
consumer will receive as a result of the standard, as calculated under 
the applicable test procedure. (42 U.S.C. 6295(o)(2)(B)(iii))
    EPCA also contains what is known as an ``anti-backsliding'' 
provision, which prevents the Secretary from prescribing any amended 
standard that either increases the maximum allowable energy use or 
decreases the minimum required energy efficiency of a covered product. 
(42 U.S.C. 6295(o)(1)) Also, the Secretary may not prescribe an amended 
or new standard if interested persons have established by a 
preponderance of the evidence that the standard is likely to result in 
the unavailability in the United States in any covered product type (or 
class) of performance characteristics (including reliability), 
features, sizes, capacities, and volumes that are substantially the 
same as those generally available in the United States. (42 U.S.C. 
6295(o)(4))
    Additionally, DOE may set energy conservation standards for a 
covered product that has two or more subcategories. In those instances, 
DOE must specify a different standard level for a type or class of 
products that has the same function or intended use if DOE determines 
that products within such group: (A) Consume a different

[[Page 74952]]

kind of energy from that consumed by other covered products within such 
type (or class); or (B) have a capacity or other performance-related 
feature which other products within such type (or class) do not have 
and such feature justifies a higher or lower standard. (42 U.S.C. 
6295(q)(1)) In determining whether a performance-related feature 
justifies a different standard for a group of products, DOE must 
consider such factors as the utility to the consumer of such a feature 
and other factors DOE deems appropriate. Id. Any rule prescribing such 
a standard must include an explanation of the basis on which such 
higher or lower level was established. (42 U.S.C. 6295(q)(2))
    Federal energy conservation requirements generally supersede State 
laws or regulations concerning energy conservation testing, labeling, 
and standards. (42 U.S.C. 6297(a) through (c)) DOE may, however, grant 
waivers of Federal preemption for particular State laws or regulations, 
in accordance with the procedures and other provisions set forth under 
42 U.S.C. 6297(d).
    DOE is also required to address standby mode and off mode energy 
use. (42 U.S.C. 6295(gg)(3)) Specifically, when DOE adopts a standard 
for a covered product after that date, it must, if justified by the 
criteria for the adoption of standards under EPCA (42 U.S.C. 6295(o)), 
incorporate standby mode and off mode energy use into a single 
standard, or, if that is not feasible, adopt a separate standard for 
such energy use for that product. (42 U.S.C. 6295(gg)(3)(A) and (B)) 
DOE's test procedures for MREFs address standby mode and off mode 
energy use, as do the new standards adopted in this notice of proposed 
rulemaking.
    With particular regard to direct final rules, the Energy 
Independence and Security Act of 2007 (``EISA 2007''), Public Law 110-
140 (December 19, 2007), amended EPCA, in relevant part, to grant DOE 
authority to issue a type of final rule (i.e., a ``direct final rule'') 
establishing an energy conservation standard for a product on receipt 
of a statement that is submitted jointly by interested persons that are 
fairly representative of relevant points of view (including 
representatives of manufacturers of covered products, States, and 
efficiency advocates), as determined by the Secretary, and that 
contains recommendations with respect to an energy or water 
conservation standard. In the context of consumer products, if the 
Secretary determines that the recommended standard contained in the 
statement is in accordance with 42 U.S.C. 6295(o), the Secretary may 
issue a final rule establishing the recommended standard. A notice of 
proposed rulemaking (``NOPR'') that proposes an identical energy 
efficiency standard is published simultaneously with the direct final 
rule. A public comment period of at least 110 days is provided. See 42 
U.S.C. 6295(p)(4). Not later than 120 days after the date on which a 
direct final rule issued under this authority is published in the 
Federal Register, the Secretary shall withdraw the direct final rule if 
the Secretary receives one or more adverse public comments relating to 
the direct final rule or any alternative joint recommendation and based 
on the rulemaking record relating to the direct final rule, the 
Secretary determines that such adverse public comments or alternative 
joint recommendation may provide a reasonable basis for withdrawing the 
direct final rule under subsection 42 U.S.C. 6295(o) or any other 
applicable law. On withdrawal of a direct final rule, the Secretary 
shall proceed with the NOPR published simultaneously with the direct 
final rule and publish in the Federal Register the reasons why the 
direct final rule was withdrawn. This direct final rule provision 
applies to the products at issue in the direct final rule published 
simultaneously with this NOPR. See 42 U.S.C. 6295(p)(4).
    DOE also notes that it typically finalizes its test procedures for 
a given regulated product or equipment prior to proposing new or 
amended energy conservation standards for that product or equipment, 
see 10 CFR part 430, subpart C, Appendix A, sec. 7(c) (``Procedures, 
Interpretations and Policies for Consideration of New or Revised Energy 
Conservation Standards for Consumer Products'' or ``Process Rule''). In 
this instance, although DOE has finalized its test procedure for MREFs, 
rather than issue a notice of proposed rulemaking to set standards for 
these products, DOE is moving forward with a direct final rule. As part 
of the negotiated rulemaking that led to the Term Sheet setting out the 
standards that DOE is proposing, Working Group members recommended 
(with ASRAC's approval) that DOE implement the test procedure that DOE 
recently finalized. See 81 FR 46768 (July 18, 2016). The approach laid 
out in that final rule is consistent with the approach agreed upon by 
the various Working Group members who participated in the negotiated 
rulemaking. Accordingly, in accordance with section 14 of the Process 
Rule, DOE tentatively concludes that deviation from the Process Rule is 
appropriate here.

B. Rulemaking History

    DOE has not previously established energy conservation standards 
for MREFs. Consistent with its statutory obligations, DOE sought to 
establish regulatory coverage over these products prior to establishing 
energy conservation standards to regulate MREF efficiency. On November 
8, 2011, DOE published a notice of proposed determination of coverage 
(``NOPD'') to address the potential coverage of those refrigeration 
products that do not use a compressor-based refrigeration system. 76 FR 
69147. Rather than employing a compressor/condenser-based system 
typically installed in the refrigerators, refrigerator-freezers, and 
freezers found in most U.S. homes, these ``non-compressor-based'' 
refrigeration products use a variety of other means to introduce 
chilled air into the interior of the storage cabinet of the product. 
Two systems that DOE specifically examined were thermoelectric- and 
absorption-based systems.\1\ The former of these systems is used in 
some wine chiller applications. With respect to the latter group of 
products, DOE indicated its belief that these types of products were 
used primarily in mobile applications and would likely fall outside of 
DOE's scope of coverage. See 42 U.S.C. 6292(a) (excluding from coverage 
``those consumer products designed solely for use in recreational 
vehicles and other mobile equipment'').
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    \1\ Chapter 3 of the direct final rule technical support 
document provides a detailed description of each of these 
refrigeration technologies.
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    On February 13, 2012, DOE published a notice announcing the 
availability of the framework document, ``Energy Conservation Standards 
Rulemaking Framework Document for Wine Chillers and Miscellaneous 
Refrigeration Products,'' and a public meeting to discuss the proposed 
analytical framework for the energy conservation standards rulemaking. 
77 FR 7547. In the framework document, DOE described the procedural and 
analytical approaches it anticipated using to evaluate potential energy 
conservation standards for four types of consumer refrigeration 
products: Wine chillers, non-compressor refrigerators, hybrid 
refrigerators (i.e., a wine chiller combined with a refrigerator), and 
ice makers.
    DOE held a public meeting on February 22, 2012, to present the 
framework document, describe the analyses DOE planned to conduct during 
the rulemaking, seek comments from interested parties on these 
subjects, and inform the public about, and facilitate public 
participation in, the

[[Page 74953]]

rulemaking. At the public meeting and during the comment period, DOE 
received multiple comments that addressed issues raised in the 
framework document and identified additional issues relevant to the 
rulemaking.
    On October 31, 2013, DOE published in the Federal Register a 
supplemental notice of proposed determination of coverage (the 
``October 2013 SNOPD''), in which it tentatively determined that the 
four categories of consumer products addressed in the framework 
document (wine chillers, non-compressor refrigeration products, hybrid 
refrigerators, and ice makers) satisfy the provisions of 42 U.S.C. 
6292(b)(1). 78 FR 65223.
    DOE published a notice announcing a public meeting and the 
availability of the preliminary technical support document (``TSD'') 
for the MREF energy conservation standards rulemaking on December 3, 
2014. 79 FR 71705. The preliminary analysis considered potential 
standards for the products proposed for coverage in the October 2013 
SNOPD. The preliminary TSD included the results of the following DOE 
preliminary analyses: (1) Market and technology assessment; (2) 
screening analysis; (3) engineering analysis; (4) markups analysis; (5) 
energy use analysis; (6) LCC and PBP analyses; (7) shipments analysis; 
(8) national impact analysis (``NIA''); and (9) preliminary 
manufacturer impact analysis (``MIA'').
    DOE held a public meeting on January 9, 2015, during which it 
presented preliminary results for the engineering and downstream 
economic analyses and sought comments from interested parties on these 
subjects. At the public meeting and during the comment period, DOE 
received comments that addressed issues raised in the preliminary 
analysis and identified additional issues relevant to this rulemaking. 
After reviewing the comments received in response to both the 
preliminary analysis and a test procedure NOPR published on December 
16, 2014 (the ``December 2014 Test Procedure NOPR,'' 79 FR 74894), DOE 
ultimately determined that the development of test procedures and 
potential energy conservation standards for MREFs would benefit from a 
negotiated rulemaking process.
    On April 1, 2015, DOE published a notice of intent to establish an 
Appliance Standards and Rulemaking Federal Advisory Committee 
(``ASRAC'') negotiated rulemaking working group for MREFs (the ``MREF 
Working Group'' or in context, the ``Working Group'') to discuss and, 
if possible, reach consensus on a recommended scope of coverage, 
definitions, test procedures, and energy conservation standards. 80 FR 
17355. The MREF Working Group consisted of 15 members, including two 
members from ASRAC and one DOE representative. The MREF Working Group 
met in person during six sets of meetings in 2015: May 4-5, June 11-12, 
July 15-16, August 11-12, September 16-17, and October 20.
    On August 11, 2015, the MREF Working Group reached consensus on a 
term sheet to recommend a scope of coverage, set of definitions, and 
test procedures for MREFs (``Term Sheet #1'').\2\ That document laid 
out the scope of products that the Working Group recommended that DOE 
adopt with respect to MREFs, the definitions that would apply to MREFs 
and certain other refrigeration products, and the test procedure that 
manufacturers of MREFs would need to use when evaluating the energy 
usage of these products. On October 20, 2015, the MREF Working Group 
reached consensus on a second term sheet embodying its recommended 
energy conservation standards for coolers and combination cooler 
refrigeration products (``Term Sheet #2''). ASRAC approved Term Sheet 
#1 during an open meeting on December 18, 2015, and Term Sheet #2 
during an open meeting on January 20, 2016. ASRAC subsequently sent 
both term sheets to the Secretary for consideration.
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    \2\ The MREF Working Group term sheets are available in docket 
ID EERE-2011-BT-STD-0043 at http://regulations.gov.
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    In addition to these steps, DOE sought to ensure that it had 
obtained complete information and input regarding certain aspects 
related to manufacturers of thermoelectric refrigeration products. To 
this end, on December 15, 2015, DOE published a notice of data 
availability (the ``December 2015 NODA'') in which it requested 
additional public feedback on the methods and information used in the 
development of the MREF Working Group Term Sheets. 80 FR 77589. DOE 
noted in particular its interest in information related to 
manufacturers of thermoelectric refrigeration products. Id. at 77590.
    After considering the MREF Working Group recommendations and 
comments received in response to the December 2015 NODA, DOE published 
an SNOPD and notice of proposed rulemaking (the ``March 2016 SNOPD'') 
on March 4, 2016. 81 FR 11454. The March 2016 SNOPD proposed 
establishing coverage, definitions, and terminology consistent with 
Term Sheet #1. It also proposed to determine that coolers and 
combination cooler refrigeration products--as defined under the 
proposal--would meet the requirements under EPCA to be considered 
covered products. Id. at 11456-11459.
    On July 18, 2016, DOE published a final coverage determination and 
final rule (the ``July 2016 Final Coverage Determination'') to 
establish coolers and combination cooler refrigeration products as 
covered products under EPCA. Because DOE did not receive any comments 
in response to the March 2016 SNOPD that would substantively alter its 
proposals, the findings of the final determination were unchanged from 
those presented in the March 2016 SNOPD. Moreover, DOE determined in 
the July 2016 Final Coverage Determination that MREFs, on average, 
consume more than 150 kWh/yr, and that the aggregate annual national 
energy use of these products exceeds 4.2 TWh. Accordingly, these data 
indicate that MREFs satisfy at least two of the four criteria required 
under EPCA in order for the Secretary to set standards for a product 
whose coverage is added pursuant to 42 U.S.C. 6292(b). See 42 U.S.C. 
6295(l)(1)(A)-(D). 81 FR 46768. With respect to the remaining two 
criteria, as indicated in substantial detail in its accompanying direct 
final rule, DOE's analysis indicates that these two criteria are 
satisfied as well.
    In addition to establishing coverage, the July 2016 Final Coverage 
Determination established definitions for ``miscellaneous refrigeration 
products,'' ``coolers,'' and ``combination cooler refrigeration 
products'' in title 10 of the Code of Federal Regulations (``CFR'') 
Sec.  430.2. The July 2016 Final Coverage Determination also amended 
the existing definitions for ``refrigerator,'' ``refrigerator-
freezer,'' and ``freezer'' for consistency with the newly established 
MREF definitions. These definitions were generally consistent with the 
March 2016 SNOPD. Id.
    DOE has considered the recommended energy conservation standards 
from the MREF Working Group and believes that they meet the EPCA 
requirements for issuance of a direct final rule. As a result, DOE has 
published a direct final rule establishing energy conservation 
standards for MREFs elsewhere in this Federal Register. If DOE receives 
adverse comments that may provide a reasonable basis for withdrawal and 
withdraws the direct final rule, DOE will consider those comments and 
any other comments received in determining how to proceed with this 
proposed rule.
    For further background information on these proposed standards and 
the

[[Page 74954]]

supporting analyses, please see the direct final rule published 
elsewhere in this Federal Register. That document includes additional 
discussion on the EPCA requirements for promulgation of energy 
conservation standards, the history of the standards rulemakings 
establishing such standards, as well as information on the test 
procedures used to measure the energy efficiency of MREFs. The document 
also contains an in-depth discussion of the analyses conducted in 
support of this rulemaking, the methodologies DOE used in conducting 
those analyses, and the analytical results.

II. Proposed Standards

    When considering proposed standards, the new or amended energy 
conservation standard that DOE adopts for any type (or class) of 
covered product shall be designed to achieve the maximum improvement in 
energy efficiency that DOE determines is technologically feasible and 
economically justified. (42 U.S.C. 6295(o)(2)(A)) In determining 
whether a standard is economically justified, DOE must determine 
whether the benefits of the standard exceed its burdens, considering to 
the greatest extent practicable the seven statutory factors set forth 
in EPCA. (42 U.S.C. 6295(o)(2)(B)(i)) The new or amended standard must 
also result in a significant conservation of energy. (42 U.S.C. 
6295(o)(3)(B))
    DOE considered the impacts of standards at each trial standard 
level (``TSL'') considered, beginning with maximum technologically 
feasible (max-tech) level, to determine whether that level was 
economically justified. Where the max-tech level was not economically 
justified, DOE then considered the next most efficient level and 
undertook the same evaluation until it reached the highest efficiency 
level that is both technologically feasible and economically justified 
and saves a significant amount of energy.
    To aid the reader as DOE discusses the benefits and burdens of each 
TSL, DOE has included tables that present a summary of the results of 
DOE's quantitative analysis for each TSL. In addition to the 
quantitative results presented in the tables, DOE also considers other 
burdens and benefits that affect economic justification. These include 
the impacts on identifiable subgroups of consumers, such as low-income 
households and seniors, who may be disproportionately affected by a 
national standard. Section V.B.1.b of the direct final rule published 
elsewhere in this Federal Register presents the estimated impacts of 
each TSL for these subgroups.

A. TSLs Considered for Coolers

    Table II.1 and Table II.2 summarize the quantitative impacts 
estimated for each TSL for coolers. The national impacts are measured 
over the lifetime of coolers purchased in the 30-year period that 
begins in the anticipated year of compliance with new standards (2019-
2048 for TSL 2, and 2021-2050 for the other TSLs). The energy savings, 
emissions reductions, and value of emissions reductions refer to full-
fuel-cycle (``FFC'') results. The efficiency levels contained in each 
TSL are described in section V.A of the direct final rule published 
elsewhere in this Federal Register.

                     Table II.1--Summary of Analytical Results for Coolers: National Impacts
----------------------------------------------------------------------------------------------------------------
                Category                       TSL 1 *           TSL 2 *           TSL 3 *           TSL 4 *
----------------------------------------------------------------------------------------------------------------
                                 Cumulative FFC National Energy Savings (quads)
----------------------------------------------------------------------------------------------------------------
Quads...................................              1.13              1.51              1.84             2.02.
----------------------------------------------------------------------------------------------------------------
                               NPV of Consumer Costs and Benefits (2015$ billion)
----------------------------------------------------------------------------------------------------------------
3% discount rate........................              8.34             11.02             12.19             6.83.
7% discount rate........................              3.41              4.78              4.81             1.81.
----------------------------------------------------------------------------------------------------------------
                            Cumulative FFC Emissions Reduction (Total FFC Emissions)
----------------------------------------------------------------------------------------------------------------
CO[ihel2] (million metric tons).........             67.91             91.76            110.61           121.30.
SO[ihel2] (thousand tons)...............             39.38             54.04             64.13            70.26.
NOX (thousand tons).....................            122.38            163.86            199.36           218.79.
Hg (tons)...............................              0.15              0.20              0.24             0.26.
CH4 (thousand tons).....................            291.14            387.12            474.33           520.85.
CH4 (thousand tons CO2eq)**.............           8151.79          10839.31          13281.37         14583.83.
N2O (thousand tons).....................              0.82              1.12              1.33             1.46.
N2O (thousand tons CO2eq)**.............            217.02            296.92            353.41           387.24.
----------------------------------------------------------------------------------------------------------------
                               Value of Emissions Reduction (Total FFC Emissions)
----------------------------------------------------------------------------------------------------------------
CO[ihel2] (2015$ billion) [dagger]......    0.478 to 6.673    0.679 to 9.266   0.777 to 10.856  0.849 to 11.882.
NOX-3% discount rate (2015$ million)....    229.6 to 523.5     326.1 to743.4    373.3 to 851.2   407.9 to 929.9.
NOX-7% discount rate (2015$ million)....     92.5 to 208.7    141.9 to 319.9    150.2 to 338.7   163.1 to 367.8.
----------------------------------------------------------------------------------------------------------------
Parentheses indicate negative (-) values.
* For TSL 2, the results are forecasted over the lifetime of products sold from 2019-2048. For the other TSLs,
  the results are forecasted over the lifetime of products sold from 2021-2050.
** CO[ihel2]eq is the quantity of CO[ihel2] that would have the same global warming potential (``GWP'').
[dagger] Range of the economic value of CO[ihel2] reductions is based on estimates of the global benefit of
  reduced CO[ihel2] emissions.


[[Page 74955]]


            Table II.2--Summary of Analytical Results for Coolers: Manufacturer and Consumer Impacts
----------------------------------------------------------------------------------------------------------------
                Category                       TSL 1 *           TSL 2 *           TSL 3 *           TSL 4 *
----------------------------------------------------------------------------------------------------------------
                                              Manufacturer Impacts
----------------------------------------------------------------------------------------------------------------
Industry NPV (2015$ million) (No-new-       244.3 to 264.0    208.5 to 253.3    168.4 to 226.5   110.5 to 283.8.
 standards case INPV = 263.3)...........
Industry NPV (% change).................       -7.2 to 0.3     -20.8 to -3.8    -36.0 to -14.0     -58.0 to 7.8.
----------------------------------------------------------------------------------------------------------------
                                      Consumer Average LCC Savings (2015$)
----------------------------------------------------------------------------------------------------------------
Freestanding Compact Coolers............               279               265               288              123.
Built-in Compact Coolers................           ** n.a.                28                60            (230).
Freestanding Coolers....................               648               153               240            (121).
Built-in Coolers........................              n.a.                77               187            (254).
----------------------------------------------------------------------------------------------------------------
                                           Consumer Simple PBP (years)
----------------------------------------------------------------------------------------------------------------
Freestanding Compact Coolers............               1.1               1.4               1.6              3.5.
Built-in Compact Coolers................              n.a.               4.6               4.4             14.8.
Freestanding Coolers....................               1.0               1.8               1.8              4.8.
Built-in Coolers........................              n.a.               6.1               4.7             17.7.
----------------------------------------------------------------------------------------------------------------
                                     % of Consumers that Experience Net Cost
----------------------------------------------------------------------------------------------------------------
Freestanding Compact Coolers............                 6                 9                12               51.
Built-in Compact Coolers................                 0                29                27               93.
Freestanding Coolers....................                 0                22                 9               78.
Built-in Coolers........................                 0                22                 7               86.
----------------------------------------------------------------------------------------------------------------
Parentheses indicate negative (-) values.
* For TSL 2, the results are forecasted over the lifetime of products sold from 2019-2048. For the other TSLs,
  the results are forecasted over the lifetime of products sold from 2021-2050.
** Calculation of savings and PBP is not applicable (n.a.) for an efficiency level that is already met or
  exceeded in the MREF market.

    DOE first considered TSL 4, which represents the max-tech 
efficiency levels. TSL 4 would save 2.02 quads of energy, an amount DOE 
considers significant. Under TSL 4, the net present value (``NPV'') of 
consumer benefit would be $1.81 billion using a discount rate of 7 
percent, and $6.83 billion using a discount rate of 3 percent.
    The cumulative emissions reductions at TSL 4 are 121.3 million 
metric tons (``Mt'') of CO2, 70.3 thousand tons of 
SO2, 218.8 thousand tons of NOX, 0.26 ton of Hg, 
520.9 thousand tons of CH4, and 1.5 thousand tons of 
N2O. The estimated monetary value of the CO2 
emissions reduction at TSL 4 ranges from $849 million to $11,882 
million.
    At TSL 4, the average LCC savings range from -$254 to $123. The 
simple payback period ranges from 3.5 years to 17.7 years. The fraction 
of consumers experiencing a net LCC cost ranges from 51 percent to 93 
percent.
    At TSL 4, the projected change in industry net present value 
(``INPV'') ranges from a decrease of $152.8 million to an increase of 
$20.5 million, which correspond to a decrease of 58.0 percent to an 
increase of 7.8 percent, respectively. Manufacturer feedback during 
confidential interviews indicated that all cooler segments are highly 
price-sensitive, and therefore the lower bound of INPV impacts is more 
likely to occur. Additionally, at TSL 4, disproportionate impacts on 
low-volume manufacturers (``LVMs'') of MREFs may be severe. This could 
have a direct impact on domestic manufacturing capacity and production 
employment in the cooler industry.
    The Secretary concludes that at TSL 4 for coolers, the benefits of 
energy savings, positive NPV of consumer benefits, emission reductions, 
and the estimated monetary value of the emissions reductions would be 
outweighed by the economic burden on some consumers, and the impacts on 
manufacturers, including the conversion costs and profit margin impacts 
that could result in a large reduction in INPV. Consequently, the 
Secretary has concluded that TSL 4 is not economically justified.
    DOE then considered TSL 3, which would save an estimated 1.84 quads 
of energy, an amount DOE considers significant. Under TSL 3, the NPV of 
consumer benefit would be $4.81 billion using a discount rate of 7 
percent, and $12.19 billion using a discount rate of 3 percent.
    The cumulative emissions reductions at TSL 3 are 110.6 Mt of 
CO2, 64.1 thousand tons of SO2, 199.4 thousand 
tons of NOX, 0.24 tons of Hg, 474.3 thousand tons of 
CH4, and 1.33 thousand tons of N2O. The estimated 
monetary value of the CO2 emissions reduction at TSL 3 
ranges from $777 million to $10,856 million.
    At TSL 3, the average LCC savings range from $60 to $288. The 
simple payback period ranges from 1.6 years to 4.7 years. The fraction 
of consumers experiencing a net LCC cost ranges from 7 percent to 27 
percent.
    At TSL 3, the projected change in INPV ranges from a decrease of 
$94.8 million to a decrease of $36.8 million, which correspond to 
decreases of 36.0 percent and 14.0 percent, respectively. Manufacturer 
feedback from confidential interviews indicated that all cooler 
segments are highly price sensitive, and therefore the lower bound of 
INPV impacts is more likely to occur. Again, at TSL 3, disproportionate 
impacts on the LVMs may be severe. This could have a direct impact on 
domestic manufacturing capacity and production employment in the cooler 
industry.
    The Secretary concludes that at TSL 3 for coolers, the benefits of 
energy savings, positive NPV of consumer benefits, emission reductions, 
and the estimated monetary value of the emissions reductions would be 
outweighed by the impacts on manufacturers, including the conversion 
costs and profit margin impacts that could result in a large reduction 
in INPV. Consequently, the Secretary has concluded that TSL 3 is not 
economically justified.

[[Page 74956]]

    DOE then considered TSL 2, which reflects the standard levels 
recommended by the MREF Working Group. TSL 2 would save an estimated 
1.51 quads of energy, an amount DOE considers significant. Under TSL 2, 
the NPV of consumer benefit would be $4.78 billion using a discount 
rate of 7 percent, and $11.02 billion using a discount rate of 3 
percent.
    The cumulative emissions reductions at TSL 2 are 91.8 Mt of 
CO2, 54.0 thousand tons of SO2, 163.9 thousand 
tons of NOX, 0.20 tons of Hg, 387.1 thousand tons of 
CH4, and 1.12 thousand tons of N2O. The estimated 
monetary value of the CO2 emissions reduction at TSL 2 
ranges from $679 million to $9,266 million.
    At TSL 2, the average LCC savings range from $28 to $265. The 
simple payback period ranges from 1.4 years to 6.1 years. The fraction 
of consumers experiencing a net LCC cost ranges from 9 percent to 29 
percent.
    At TSL 2, the projected change in INPV ranges from a decrease of 
$54.8 million to a decrease of $10.0 million, which represent decreases 
of 20.8 percent and 3.8 percent, respectively. Feedback from the LVMs 
indicated that TSL 2 would not impede their ability to maintain their 
current MREF product offerings.
    After considering the analysis and weighing the benefits and 
burdens, DOE has determined that the recommended standards for coolers 
are in accordance with 42 U.S.C. 6295(o). Specifically, the Secretary 
has determined the benefits of energy savings, positive NPV of consumer 
benefits, emission reductions, the estimated monetary value of the 
emissions reductions, and positive average LCC savings would outweigh 
the negative impacts on some consumers and on manufacturers, including 
the conversion costs that could result in a reduction in INPV for 
manufacturers. Accordingly, the Secretary has concluded that TSL 2 
would offer the maximum improvement in efficiency that is 
technologically feasible and economically justified, and would result 
in the significant conservation of energy.
    Therefore, DOE proposes to adopt TSL 2 as the energy conservation 
standard for coolers. The proposed new energy conservation standards 
which are expressed as maximum annual energy use, in kWh/yr, as a 
function of adjusted volume (``AV''), in cubic feet (``ft\3\''), are 
shown in Table II.3.

   Table II.3--Proposed New Energy Conservation Standards for Coolers
------------------------------------------------------------------------
             Product class              Maximum allowable AEU * (kWh/yr)
------------------------------------------------------------------------
Built-in Compact......................  7.88AV [dagger] + 155.8
Built-in..............................
Freestanding Compact..................
Freestanding..........................
------------------------------------------------------------------------
[dagger] AV = Adjusted volume, in ft\3\, as calculated according to
  title 10 CFR part 430, subpart B, appendix A.

B. TSLs Considered for Combination Cooler Refrigeration Products.

    Table II.4 and Table II.5 summarize the quantitative impacts 
estimated for each TSL for combination cooler refrigeration products. 
The national impacts are measured over the lifetime of products 
purchased in the 30-year period that begins in the anticipated year of 
compliance with new standards (2019-2048 for TSL 1, and 2021-2050 for 
the other TSLs). The energy savings, emissions reductions, and value of 
emissions reductions refer to FFC results. The efficiency levels 
contained in each TSL are described in section V.A of the direct final 
rule published elsewhere in this Federal Register.

 Table II.4--Summary of Analytical Results for Combination Cooler Refrigeration Products TSLs: National Impacts
----------------------------------------------------------------------------------------------------------------
                Category                       TSL 1 *           TSL 2 *           TSL 3 *           TSL 4 *
----------------------------------------------------------------------------------------------------------------
                                 Cumulative FFC National Energy Savings (quads)
----------------------------------------------------------------------------------------------------------------
Quads...................................           0.00084             0.007             0.012            0.016.
----------------------------------------------------------------------------------------------------------------
                               NPV of Consumer Costs and Benefits (2015$ billion)
----------------------------------------------------------------------------------------------------------------
3% discount rate........................            0.0045             0.035            (0.06)           (0.14).
7% discount rate........................            0.0017             0.011            (0.04)           (0.09).
----------------------------------------------------------------------------------------------------------------
                            Cumulative FFC Emissions Reduction (Total FFC Emissions)
----------------------------------------------------------------------------------------------------------------
CO[ihel2] (million metric tons).........              0.05              0.44              0.73             0.96.
SO[ihel2] (thousand tons)...............              0.03              0.25              0.42             0.55.
NOX (thousand tons).....................              0.09              0.80              1.32             1.73.
Hg (tons)...............................              0.00              0.00              0.00             0.00.
CH4 (thousand tons).....................              0.21              1.90              3.16             4.13.
CH4 (thousand tons CO2eq) **............              6.02             53.24             88.46           115.75.
N2O (thousand tons).....................              0.00              0.01              0.01             0.01.
N2O (thousand tons CO2eq) **............              0.16              1.40              2.34             3.05.
----------------------------------------------------------------------------------------------------------------
                               Value of Emissions Reduction (Total FFC Emissions)
----------------------------------------------------------------------------------------------------------------
CO[ihel2] (2015$ billion) [dagger]......    0.000 to 0.005    0.003 to 0.042    0.005 to 0.071   0.007 to 0.092.
NOX - 3% discount rate (2015$ million)..        0.2 to 0.4        1.4 to 3.3        2.4 to 5.5       3.1 to 7.1.

[[Page 74957]]

 
NOX - 7% discount rate (2015$ million)..        0.1 to 0.2        0.6 to 1.3        0.9 to 2.1       1.2 to 2.7.
----------------------------------------------------------------------------------------------------------------
Parentheses indicate negative (-) values.
* For TSL 1, the results are forecasted over the lifetime of products sold from 2019-2048. For the other TSLs,
  the results are forecasted over the lifetime of products sold from 2021-2050.
** CO[ihel2]eq is the quantity of CO[ihel2] that would have the same global warming potential (GWP).
[dagger] Range of the economic value of CO[ihel2] reductions is based on estimates of the global benefit of
  reduced CO[ihel2] emissions.


 Table II.5--Summary of Analytical Results for Combination Cooler Refrigeration Products TSLs: Manufacturer and
                                                Consumer Impacts
----------------------------------------------------------------------------------------------------------------
                Category                       TSL 1 *           TSL 2 *           TSL 3 *           TSL 4 *
----------------------------------------------------------------------------------------------------------------
                                              Manufacturer Impacts
----------------------------------------------------------------------------------------------------------------
Industry NPV (2015$ million) (No-new-       107.4 to 107.6    103.7 to 107.5    101.6 to 117.7   100.1 to 128.5.
 standards case INPV = 108.2)...........
Industry NPV (% change).................      -0.7 to -0.5      -4.1 to -0.6       -6.0 to 8.9     -7.5 to 18.8.
----------------------------------------------------------------------------------------------------------------
                                      Consumer Average LCC Savings (2015$)
----------------------------------------------------------------------------------------------------------------
C-3A....................................            n.a.**                58                53            (209).
C-3A-BI.................................               n.a                66                59            (237).
C-9.....................................              n.a.                89                 3            (182).
C-9-BI..................................              n.a.               102                 4            (205).
C-13A...................................                32                17             (123)            (194).
C-13A-BI................................              n.a.                 8             (151)            (232).
----------------------------------------------------------------------------------------------------------------
                                           Consumer Simple PBP (years)
----------------------------------------------------------------------------------------------------------------
C-3A....................................              n.a.               4.1               6.8             25.3.
C-3A-BI.................................              n.a.               4.1               6.8             25.4.
C-9.....................................              n.a.               2.6              12.1             23.3.
C-9-BI..................................              n.a.               2.6              12.0             23.2.
C-13A...................................               4.3               5.0              13.3             16.0.
C-13A-BI................................              n.a.               6.5              21.6             24.6.
----------------------------------------------------------------------------------------------------------------
                                     % of Consumers that Experience Net Cost
----------------------------------------------------------------------------------------------------------------
C-3A....................................                 0                 4                26               92.
C-3A-BI.................................                 0                 4                26               92.
C-9.....................................                 0                 0                62               90.
C-9-BI..................................                 0                 0                63               90.
C-13A...................................                 6                44                94               96.
C-13A-BI................................                 0                49                97               98.
----------------------------------------------------------------------------------------------------------------
Parentheses indicate negative (-) values.
* For TSL 1, the results are forecasted over the lifetime of products sold from 2019-2048. For the other TSLs,
  the results are forecasted over the lifetime of products sold from 2021-2050.
** Calculation of savings and PBP is not applicable (n.a.) for an efficiency level that is already met or
  exceeded in the MREF market.

    DOE first considered TSL 4, which represents the max-tech 
efficiency levels. TSL 4 would save 0.016 quads of energy, an amount 
DOE considers significant. Under TSL 4, the NPV of consumer benefit 
would be -$0.09 billion using a discount rate of 7 percent, and -$0.14 
billion using a discount rate of 3 percent.
    The cumulative emissions reductions at TSL 4 are 0.96 Mt of 
CO2, 0.55 thousand tons of SO2, 1.73 thousand 
tons of NOX, 0.0 ton of Hg, 4.13 thousand tons of 
CH4, and 0.01 thousand tons of N2O. The estimated 
monetary value of the CO2 emissions reduction at TSL 4 
ranges from $7 million to $92 million.
    At TSL 4, the average LCC savings range from -$237 to -$182. The 
simple payback period ranges from 16.0 years to 25.4 years. The 
fraction of consumers experiencing a net LCC cost ranges from 90 
percent to 98 percent.
    Also at TSL 4, the projected change in INPV ranges from a decrease 
of $8.1 million to an increase of $20.3 million, which correspond to a 
decrease of 7.5 percent to an increase of 18.8 percent, respectively. 
Similar to coolers, detailed feedback from manufacturer interviews 
indicated that combination cooler refrigeration products are highly 
price sensitive, and therefore the lower bound of INPV impacts is more 
likely to occur. Additionally, in the context of new standards for 
coolers and other cumulative regulatory burdens, at TSL 4, 
disproportionate impacts on domestic LVMs of combination cooler 
refrigeration products may be severe. This could have a direct impact 
on the availability of certain niche combination cooler refrigeration 
products, as well as on competition, domestic manufacturing capacity, 
and production employment related to the combination cooler 
refrigeration product industry.
    The Secretary concludes that at TSL 4 for combination cooler 
refrigeration products, the benefits of energy savings, emission 
reductions, and the estimated monetary value of the emissions 
reductions would be outweighed by the

[[Page 74958]]

negative NPV of consumer benefits, the economic burden on some 
consumers, and the disproportionate impacts on the LVMs, which could 
directly impact the availability of certain niche combination cooler 
products. Consequently, the Secretary has concluded that TSL 4 is not 
economically justified.
    DOE then considered TSL 3, which would save an estimated 0.012 
quads of energy, an amount DOE considers significant. Under TSL 3, the 
NPV of consumer benefit would be -$0.04 billion using a discount rate 
of 7 percent, and -$0.06 billion using a discount rate of 3 percent.
    The cumulative emissions reductions at TSL 3 are 0.73 Mt of 
CO2, 0.42 thousand tons of SO2, 1.32 thousand 
tons of NOX, 0.00 tons of Hg, 3.16 thousand tons of 
CH4, and 0.01 thousand tons of N2O. The estimated 
monetary value of the CO2 emissions reduction at TSL 3 
ranges from $5 million to $71 million.
    At TSL 3, the average LCC savings range from -$151 to $59. The 
simple payback period ranges from 6.8 years to 21.6 years. The fraction 
of consumers experiencing a net LCC cost ranges from 26 percent to 97 
percent.
    At TSL 3, the projected change in INPV ranges from a decrease of 
$6.5 million to an increase of $9.6 million, which represent a decrease 
of 6.0 percent and an increase of 8.9 percent, respectively. Again, 
manufacturers indicated that combination cooler refrigeration products 
are highly price sensitive, and therefore the lower bound of INPV 
impacts is more likely to occur. In the context of new standards for 
coolers and other cumulative regulatory burdens, at TSL 3, 
disproportionate impacts on domestic LVMs of combination cooler 
refrigeration products may be severe. This could have a direct impact 
on the availability of certain niche combination cooler refrigeration 
products, as well as on competition, domestic manufacturing capacity 
and production employment related to the combination cooler 
refrigeration product industry.
    The Secretary concludes that at TSL 3 for combination cooler 
refrigeration products, the benefits of energy savings, emission 
reductions, and the estimated monetary value of the emissions 
reductions would be outweighed by the negative NPV of consumer benefits 
and disproportionate impacts on the LVMs, which could directly impact 
the availability of certain niche combination cooler products. 
Consequently, the Secretary has concluded that TSL 3 is not 
economically justified.
    DOE then considered TSL 2, which reflects the efficiency levels 
with maximum consumer NPV at seven percent discount rate. TSL 2 would 
save an estimated 0.007 quads of energy, an amount DOE considers 
significant. Under TSL 2, the NPV of consumer benefit would be $0.011 
billion using a discount rate of 7 percent, and $0.035 billion using a 
discount rate of 3 percent.
    The cumulative emissions reductions at TSL 2 are 0.44 Mt of 
CO2, 0.25 thousand tons of SO2, 0.8 thousand tons 
of NOX, 0.00 tons of Hg, 1.90 thousand tons of 
CH4, and 0.013 thousand tons of N2O. The 
estimated monetary value of the CO2 emissions reduction at 
TSL 2 ranges from $3 million to $42 million.
    At TSL 2, the average LCC savings range from $8 to $102. The simple 
payback period ranges from 2.6 years to 6.5 years. The fraction of 
consumers experiencing a net LCC cost ranges from zero percent to 49 
percent.
    At TSL 2, the projected change in INPV ranges from a decrease of 
$4.4 million to a decrease of $0.6 million, which represent decreases 
of 4.1 percent and 0.6 percent, respectively. Again, in the context of 
new standards for coolers and other cumulative regulatory burdens, at 
TSL 2, disproportionate impacts on domestic LVMs may be severe. This 
could have a direct impact on the availability of certain niche 
combination cooler refrigeration products, as well as on competition, 
domestic manufacturing capacity and production employment related to 
the combination cooler refrigeration product industry.
    The Secretary concludes that at TSL 2 for combination cooler 
refrigeration products, the benefits of energy savings, positive NPV of 
consumer benefits, emission reductions, and the estimated monetary 
value of the emissions reductions would again be outweighed by the 
disproportionate impacts on the domestic LVMs, which could directly 
impact the availability of certain niche combination cooler products. 
Consequently, the Secretary has concluded that TSL 2 is not 
economically justified.
    DOE then considered TSL 1, which reflects the standard levels 
recommended by the MREF Working Group. TSL 1 would save an estimated 
0.00084 quads of energy, an amount DOE considers significant. Under TSL 
1, the NPV of consumer benefit would be $0.0017 billion using a 
discount rate of 7 percent, and $0.0045 billion using a discount rate 
of 3 percent.
    The cumulative emissions reductions at TSL 1 are 0.05 Mt of 
CO2, 0.03 thousand tons of SO2, 0.09 thousand 
tons of NOX, 0.00 tons of Hg, 0.21 thousand tons of 
CH4, and 0.00 thousand tons of N2O. The estimated 
monetary value of the CO2 emissions reduction at TSL 1 
ranges from $0 million to $5 million.
    At TSL 1, the combination cooler refrigeration products currently 
available on the market already meet or exceed the corresponding 
efficiency levels in all product classes except for C-13A. As a result, 
for five of the product classes, no consumers experience a net cost, 
and the LCC savings and simple payback period are not applicable. For 
product class C-13A, the average LCC savings is $32, the simple payback 
period is 4.3 years, and the fraction of consumers experiencing a net 
LCC cost is 6 percent.
    At TSL 1, the projected change in INPV ranges from a decrease of 
$0.8 million to a decrease of $0.5 million, which represent decreases 
of 0.7 percent and 0.5 percent, respectively. DOE estimated that all 
combination cooler refrigeration products manufactured domestically by 
LVMs currently meet the standard levels corresponding to TSL 1. 
Therefore, at TSL 1, DOE believes that domestic manufacturers will 
continue to offer the same combination cooler refrigeration products as 
those they currently offer.
    After considering the analysis and weighing the benefits and 
burdens, DOE has determined that the recommended standards for 
combination cooler refrigeration products are in accordance with 42 
U.S.C. 6295(o). Specifically, the Secretary has determined the benefits 
of energy savings, positive NPV of consumer benefits, emission 
reductions, the estimated monetary value of the emissions reductions, 
and positive average LCC savings would outweigh the negative impacts on 
some consumers and on manufacturers, including the conversion costs 
that could result in a reduction in INPV for manufacturers. 
Accordingly, the Secretary has concluded that TSL 1 would offer the 
maximum improvement in efficiency that is technologically feasible and 
economically justified, and would result in the significant 
conservation of energy.
    Therefore, DOE proposes to adopt TSL 1 as the energy conservation 
standard for combination cooler refrigeration products. The proposed 
new energy conservation standards, which are expressed as maximum 
annual energy use, in kWh/yr, as a function of AV, in ft\3\, are shown 
in Table II.6.

[[Page 74959]]



        Table II.6--Proposed Energy Conservation Standards for combination Cooler Refrigeration Products
----------------------------------------------------------------------------------------------------------------
        Product class description             Product class designation       Maximum  allowable AEU  (kWh/yr)
----------------------------------------------------------------------------------------------------------------
Cooler with all-refrigerator--automatic    C-3A                             4.57AV [dagger] + 130.4
 defrost.
Built-in cooler with all-refrigerator--    C-3A-BI                          5.19AV + 147.8
 automatic defrost.
Cooler with upright freezers with          C-9                              5.58AV + 147.7
 automatic defrost without an automatic
 icemaker.
Built-in cooler with upright freezer with  C-9-BI                           6.38AV + 168.8
 automatic defrost without an automatic
 icemaker.
Cooler with upright freezer with           C-9I                             5.58AV + 231.7
 automatic defrost with an automatic
 icemaker.
Built-in cooler with upright freezer with  C-9I-BI                          6.38AV + 252.8
 automatic defrost with an automatic
 icemaker.
Compact cooler with all-refrigerator--     C-13A                            5.93AV + 193.7
 automatic defrost.
Built-in compact cooler with all-          C-13A-BI                         6.52AV + 213.1
 refrigerator--automatic defrost.
----------------------------------------------------------------------------------------------------------------
[dagger] AV = Adjusted volume, in ft\3\, as calculated according to title 10 CFR part 430, subpart B, appendix
  A.

C. Summary of Benefits and Costs of the Proposed Standards

    The benefits and costs of the adopted standards can also be 
expressed in terms of annualized values. The annualized net benefit is 
the sum of: (1) the annualized national economic value (expressed in 
2015$) of the benefits from operating products that meet the adopted 
standards (consisting primarily of operating cost savings from using 
less energy, minus increases in product purchase costs, and (2) the 
annualized monetary value of the benefits of CO2 and 
NOX emission reductions.\3\
---------------------------------------------------------------------------

    \3\ To convert the time-series of costs and benefits into 
annualized values, DOE calculated a present value in 2016, the year 
used for discounting the NPV of total consumer costs and savings. 
For the benefits, DOE calculated a present value associated with 
each year's shipments in the year in which the shipments occur 
(2020, 2030, etc.), and then discounted the present value from each 
year to 2016. The calculation uses discount rates of 3 and 7 percent 
for all costs and benefits except for the value of CO2 
reductions, for which DOE used case-specific discount rates. Using 
the present value, DOE then calculated the fixed annual payment over 
a 30-year period, starting in the compliance year that yields the 
same present value.
---------------------------------------------------------------------------

    Table II.7 shows the annualized values for MREFs under TSL 2 for 
coolers and TSL 1 for combination cooler refrigeration products, 
expressed in 2015$. The results under the primary estimate are as 
follows. Using a 7-percent discount rate for benefits and costs other 
than CO2 reduction, (for which DOE used a 3-percent discount 
rate along with the SCC series that has a value of $40.6/t in 2015),\4\ 
the estimated cost of the standards in this rule is $153 million per 
year in increased equipment costs, while the estimated annual benefits 
are $593 million in reduced equipment operating costs, $165 million in 
CO2 reductions, and $13.1 million in reduced NOX 
emissions. In this case, the net benefit amounts to $619 million per 
year.
---------------------------------------------------------------------------

    \4\ DOE used a 3-percent discount rate because the SCC values 
for the series used in the calculation were derived using a 3-
percent discount rate (see section IV.L of the direct final rule 
published elsewhere in this Federal Register).
---------------------------------------------------------------------------

    Using a 3-percent discount rate for all benefits and costs and the 
SCC series has a value of $40.6/t in 2015, the estimated cost of the 
standards is $157 million per year in increased equipment costs, while 
the estimated annual benefits are $754 million in reduced operating 
costs, $165 million in CO2 reductions, and $17.7 million in 
reduced NOX emissions. In this case, the net benefit amounts 
to $779 million per year.

                                       Table II.7--Annualized Benefits and Costs of Adopted Standards for MREFs *
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                   Low net benefits estimate  High net benefits estimate
                                              Discount rate                Primary estimate*                   *                           *
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                    ................................                                 (Million 2015$/year)
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                        Benefits
--------------------------------------------------------------------------------------------------------------------------------------------------------
Consumer Operating Cost Savings...  7%..............................  593.......................  545.......................  649.
                                    3%..............................  754.......................  686.......................  839.
CO[ihel2] Reduction Value ($12.2/   5%..............................  49........................  46........................  53.
 t)**.
CO[ihel2] Reduction Value ($40.0/   3%..............................  165.......................  155.......................  179.
 t)**.
CO[ihel2] Reduction Value ($62.3/   2.5%............................  242.......................  227.......................  263.
 t)**.
CO[ihel2] Reduction Value ($117/    3%..............................  502.......................  471.......................  546.
 t)**.
NOX Reduction Value [dagger]......  7%..............................  13.1......................  12.4......................  31.6.
                                    3%..............................  17.7......................  16.6......................  43.6.
Total Benefits [dagger][dagger]...  7% plus CO[ihel2] range.........  655 to 1,108..............  603 to 1,028..............  733 to 1,226.
                                    7%..............................  771.......................  712.......................  860.
                                    3% plus CO[ihel2] range.........  820 to 1,273..............  748 to 1,173..............  935 to 1,428.
                                    3%..............................  937.......................  857.......................  1,062.
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                          Costs
--------------------------------------------------------------------------------------------------------------------------------------------------------
Consumer Incremental Product Costs  7%..............................  153.......................  145.......................  118.
                                    3%..............................  157.......................  148.......................  116.
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                      Net Benefits
--------------------------------------------------------------------------------------------------------------------------------------------------------
Total [dagger][dagger]............  7% plus CO[ihel2] range.........  503 to 956................  459 to 884................  615 to 1,108.
                                    7%..............................  619.......................  568.......................  742.
                                    3% plus CO[ihel2] range.........  663 to 1,116..............  601 to 1,026..............  819 to 1,312.

[[Page 74960]]

 
                                    3%..............................  779.......................  709.......................  946.
--------------------------------------------------------------------------------------------------------------------------------------------------------
* This table presents the annualized costs and benefits associated with MREFs shipped in 2019-2048. These results include benefits to consumers which
  accrue after 2048 from the MREFs purchased from 2019-2048. The results account for the incremental variable and fixed costs incurred by manufacturers
  due to the standard, some of which may be incurred in preparation for the rule. The Primary, Low Benefits, and High Benefits Estimates utilize
  projections of energy prices and housing starts from the AEO 2015 Reference case, Low Economic Growth case, and High Economic Growth case,
  respectively. In addition, incremental product costs reflect constant price trend the Primary Estimate and the Low Benefits Estimate, and a high
  decline rate in the High Benefits Estimate. The methods used to derive projected price trends are explained in section IV.F of the direct final rule
  published elsewhere in this Federal Register. Note that the Benefits and Costs may not sum to the Net Benefits due to rounding.
** The CO[ihel2] values represent global monetized values of the SCC, in 2015$ per metric ton (t), in 2015 under several scenarios of the updated SCC
  values. The first three cases use the averages of SCC distributions calculated using 5%, 3%, and 2.5% discount rates, respectively. The fourth case
  represents the 95th percentile of the SCC distribution calculated using a 3% discount rate. The SCC time series incorporate an escalation factor.
[dagger] DOE estimated the monetized value of NOX emissions reductions associated with electricity savings using benefit per ton estimates from the
  ``Regulatory Impact Analysis for the Clean Power Plan Final Rule,'' published in August 2015 by EPA's Office of Air Quality Planning and Standards.
  (Available at www.epa.gov/cleanpowerplan/clean-power-plan-final-rule-regulatory-impact-analysis.) See section IV.L of the direct final rule published
  elsewhere in this Federal Register for further discussion. For the Primary Estimate and Low Net Benefits Estimate, DOE used a national benefit-per-ton
  estimate for NOX emitted from the Electric Generating Unit sector based on an estimate of premature mortality derived from the ACS study (Krewski et
  al. 2009). For DOE's High Net Benefits Estimate, the benefit-per-ton estimates were based on the Six Cities study (Lepuele et al. 2011), which are
  nearly two-and-a-half times larger than those from the ACS study.
[dagger][dagger] Total Benefits for both the 3% and 7% cases are derived using the series corresponding to the average SCC with 3-percent discount rate
  ($40.6/t case). In the rows labeled ``7% plus CO[ihel2] range'' and ``3% plus CO[ihel2] range,'' the operating cost and NOX benefits are calculated
  using the labeled discount rate, and those values are added to the full range of CO[ihel2] values. The value of consumer incremental product costs is
  lower in the high net benefits scenario than it is in the primary case because the high net benefits scenario uses a highly declining price trend that
  more than offsets the increase in shipments due to higher economic growth.

III. Public Participation

A. Submission of Comments

    DOE will accept comments, data, and information regarding this 
proposed rule until the date provided in the DATES section at the 
beginning of this proposed rule. Interested parties may submit 
comments, data, and other information using any of the methods 
described in the ADDRESSES section at the beginning of this proposed 
rule.
    Although DOE welcomes comments on any aspect of the proposal in 
this notice and the analysis as described in the direct final rule 
published elsewhere in this Federal Register, DOE is particularly 
interested in receiving comments and views of interested parties 
concerning the following issues:
    1. Whether the standards proposed in this notice would result in 
any lessening of utility for MREFs, including whether certain features 
would be eliminated from these products. See sections III.H.1.d and 
IV.2 of the direct final rule published elsewhere in this Federal 
Register.
    2. The incremental manufacturer production costs DOE estimated at 
each efficiency level. See section IV.C of the direct final rule 
published elsewhere in this Federal Register.
    3. DOE's method to estimate MREF shipments under the no-new-
standards case and under potential energy conservation standards 
levels. See section IV.G of the direct final rule published elsewhere 
in this Federal Register.
    4. The assumption that installation, maintenance, and repair costs 
do not vary for MREFs at higher efficiency levels. See section IV.F of 
the direct final rule published elsewhere in this Federal Register.
    5. The manufacturer conversion costs (both product and capital) 
used in DOE's analysis. See section V.B.2.d of the direct final rule 
published elsewhere in this Federal Register.
    6. The cumulative regulatory burden to MREF manufacturers 
associated with the proposed standards and on the approach DOE used in 
evaluating cumulative regulatory burden, including the timeframes and 
regulatory dates evaluated. See section V.B.2.e of the direct final 
rule published elsewhere in this Federal Register.
    Submitting comments via www.regulations.gov. The 
www.regulations.gov Web page will require you to provide your name and 
contact information. Your contact information will be viewable to DOE 
Building Technologies staff only. Your contact information will not be 
publicly viewable except for your first and last names, organization 
name (if any), and submitter representative name (if any). If your 
comment is not processed properly because of technical difficulties, 
DOE will use this information to contact you. If DOE cannot read your 
comment due to technical difficulties and cannot contact you for 
clarification, DOE may not be able to consider your comment.
    However, your contact information will be publicly viewable if you 
include it in the comment itself or in any documents attached to your 
comment. Any information that you do not want to be publicly viewable 
should not be included in your comment, nor in any document attached to 
your comment. Otherwise, persons viewing comments will see only first 
and last names, organization names, correspondence containing comments, 
and any documents submitted with the comments.
    Do not submit to www.regulations.gov information for which 
disclosure is restricted by statute, such as trade secrets and 
commercial or financial information (hereinafter referred to as 
Confidential Business Information (CBI)). Comments submitted through 
www.regulations.gov cannot be claimed as CBI. Comments received through 
the Web site will waive any CBI claims for the information submitted. 
For information on submitting CBI, see the Confidential Business 
Information section below.
    DOE processes submissions made through www.regulations.gov before 
posting. Normally, comments will be posted within a few days of being 
submitted. However, if large volumes of comments are being processed 
simultaneously, your comment may not be viewable for up to several 
weeks. Please keep the comment tracking

[[Page 74961]]

number that www.regulations.gov provides after you have successfully 
uploaded your comment.
    Submitting comments via email, hand delivery/courier, or mail. 
Comments and documents submitted via email, hand delivery/courier, or 
mail also will be posted to www.regulations.gov. If you do not want 
your personal contact information to be publicly viewable, do not 
include it in your comment or any accompanying documents. Instead, 
provide your contact information in a cover letter. Include your first 
and last names, email address, telephone number, and optional mailing 
address. The cover letter will not be publicly viewable as long as it 
does not include any comments.
    Include contact information each time you submit comments, data, 
documents, and other information to DOE. If you submit via mail or hand 
delivery/courier, please provide all items on a CD, if feasible, in 
which case it is not necessary to submit printed copies. No 
telefacsimiles (faxes) will be accepted.
    Comments, data, and other information submitted to DOE 
electronically should be provided in PDF (preferred), Microsoft Word or 
Excel, WordPerfect, or text (ASCII) file format. Provide documents that 
are not secured, that are written in English, and that are free of any 
defects or viruses. Documents should not contain special characters or 
any form of encryption and, if possible, they should carry the 
electronic signature of the author.
    Campaign form letters. Please submit campaign form letters by the 
originating organization in batches of between 50 to 500 form letters 
per PDF or as one form letter with a list of supporters' names compiled 
into one or more PDFs. This reduces comment processing and posting 
time.
    Confidential Business Information. Pursuant 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 via 
email, postal mail, or hand delivery/courier two well-marked copies: 
One copy of the document marked ``confidential'' including all the 
information believed to be confidential, and one copy of the document 
marked ``non-confidential'' with the information believed to be 
confidential deleted. Submit these documents via email or on a CD, if 
feasible. DOE will make its own determination about 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 that would result from 
public disclosure; (6) when such information might lose its 
confidential character due to the passage of time; and (7) why 
disclosure of the information would be contrary to the public interest.
    It is DOE's policy that all comments may be included in the public 
docket, without change and as received, including any personal 
information provided in the comments (except information deemed to be 
exempt from public disclosure).

B. Public Meeting

    As stated previously, if DOE withdraws the direct final rule 
published elsewhere in this Federal Register pursuant to 42 U.S.C. 
6295(p)(4)(C), DOE will hold a public meeting to allow for additional 
comment on this proposed rule. DOE will publish notice of any meeting 
in the Federal Register.

IV. Procedural Issues and Regulatory Review

    The regulatory reviews conducted for this proposed rule are 
identical to those conducted for the direct final rule published 
elsewhere in this Federal Register. Please see the direct final rule 
for further details.

V. Approval of the Office of the Secretary

    The Secretary of Energy has approved publication of this proposed 
rule.

List of Subjects in 10 CFR Part 430

    Administrative practice and procedure, Confidential business 
information, Energy conservation, Household appliances, Imports, 
Intergovernmental relations, Reporting and recordkeeping requirements, 
and Small businesses.

    Issued in Washington, DC, on October 4, 2016.
David J. Friedman,
Acting Assistant Secretary, Energy Efficiency and Renewable Energy.

    For the reasons set forth in the preamble, DOE proposes to amend 
part 430 of chapter II, subchapter D, of title 10 of the Code of 
Federal Regulations, as set forth below:

PART 430--ENERGY CONSERVATION PROGRAM FOR CONSUMER PRODUCTS

0
1. The authority citation for part 430 continues to read as follows:

    Authority:  42 U.S.C. 6291-6309; 28 U.S.C. 2461 note.

0
2. Amend Sec.  430.32 by adding paragraph (aa) to read as follows:


Sec.  430.32  Energy and water conservation standards and their 
compliance dates.

* * * * *
    (aa) Miscellaneous refrigeration products. The energy standards as 
determined by the equations of the following table(s) shall be rounded 
off to the nearest kWh per year. If the equation calculation is halfway 
between the nearest two kWh per year values, the standard shall be 
rounded up to the higher of these values.
    (1) Coolers manufactured starting on [date three years after date 
of publication of the direct final rule in the federal register] shall 
have Annual Energy Use (AEU) no more than:

------------------------------------------------------------------------
             Product class                        AEU (kWh/yr)
------------------------------------------------------------------------
1. Built-in compact...................  7.88AV + 155.8
2. Built-in...........................
3. Freestanding compact...............
4. Freestanding.......................
------------------------------------------------------------------------
AV = Total adjusted volume, expressed in ft\3\, as calculated according
  to appendix A of subpart B of this part.

    (2) Combination cooler refrigeration products manufactured starting 
on [date three years after date of publication of the direct final rule 
in the federal register] shall have Annual Energy Use (AEU) no more 
than:

[[Page 74962]]



------------------------------------------------------------------------
             Product class                        AEU (kWh/yr)
------------------------------------------------------------------------
C-3A. Cooler with all-refrigerator--    4.57AV + 130.4
 automatic defrost.
C-3A-BI. Built-in cooler with all-      5.19AV + 147.8
 refrigerator--automatic defrost..
C-9. Cooler with upright freezers with  5.58AV + 147.7
 automatic defrost without an
 automatic icemaker.
C-9-BI. Built-in cooler with upright    6.38AV + 168.8
 freezer with automatic defrost
 without an automatic icemaker.
C-9I. Cooler with upright freezer with  5.58AV + 231.7
 automatic defrost with an automatic
 icemaker.
C-9I-BI. Built-in cooler with upright   6.38AV + 252.8
 freezer with automatic defrost with
 an automatic icemaker.
C-13A. Compact cooler with all-         5.93AV + 193.7
 refrigerator--automatic defrost.
C-13A-BI. Built-in compact cooler with  6.52AV + 213.1
 all-refrigerator--automatic defrost.
------------------------------------------------------------------------
AV = Total adjusted volume, expressed in ft\3\, as calculated according
  to appendix A of subpart B of this part.

[FR Doc. 2016-24758 Filed 10-27-16; 8:45 am]
 BILLING CODE 6450-01-P