[Federal Register Volume 81, Number 211 (Tuesday, November 1, 2016)]
[Proposed Rules]
[Pages 75742-75753]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-26341]


 ========================================================================
 Proposed Rules
                                                 Federal Register
 ________________________________________________________________________
 
 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.
 
 ========================================================================
 

  Federal Register / Vol. 81, No. 211 / Tuesday, November 1, 2016 / 
Proposed Rules  

[[Page 75742]]



DEPARTMENT OF ENERGY

10 CFR Part 431

[Docket No. EERE-2013-BT-STD-0006]
RIN 1904-AC55


Energy Conservation Standards for Commercial and Industrial Fans 
and Blowers: Availability of Provisional Analysis Tools

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

ACTION: Notice of data availability (NODA).

-----------------------------------------------------------------------

SUMMARY: The U.S. Department of Energy (DOE) has completed a 
provisional analysis that estimates the potential economic impacts and 
energy savings that could result from promulgating a regulatory energy 
conservation standard for commercial and industrial fans and blowers 
(``fans''). At this time, DOE is not proposing any energy conservation 
standard for fans. However, it is publishing this analysis so 
stakeholders can review the analysis results and the underlining 
assumptions and calculations that might ultimately support a proposed 
standard. DOE encourages stakeholders to provide any additional data or 
information that may improve the analysis. The analysis is now 
publically available at http://www.regulations.gov/docket?D=EERE-2013-BT-STD-0006.

DATES: DOE will accept comments, data, and information regarding the 
NODA no later than December 1, 2016.

ADDRESSES: Instructions: Any comments submitted must identify the NODA 
for Energy Conservation Standards for Commercial and Industrial Fans 
and Blowers, and provide docket number EERE-2013-BT-STD-0006 and/or 
regulatory information number (RIN) 1904-AC55. Comments may be 
submitted using any of the following methods: Interested persons may 
submit comments, identified by docket number EERE-2013-BT-STD-0006 and/
or regulatory information number (RIN) 1904-AC55, by any of the 
following methods:
     Federal eRulemaking Portal: www.regulations.gov. Follow 
the instructions for submitting comments.
     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.
     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.
     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.
     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.
    The docket Web page can be found at: http://www.regulations.gov/docket?D=EERE-2013-BT-STD-0006. The docket Web page contains simple 
instructions on how to access all documents, including public comments, 
in the docket.

FOR FURTHER INFORMATION CONTACT: Ms. Ashley Armstrong, U.S. Department 
of Energy, Office of Energy Efficiency and Renewable Energy, Building 
Technologies, EE-2J, 1000 Independence Avenue SW., Washington, DC 
20585-0121. Telephone: (202) 586-6590. Email: 
[email protected].
    Mr. Peter Cochran, U.S. Department of Energy, Office of the General 
Counsel, GC-33, 1000 Independence Avenue SW., Washington, DC 20585-
0121. Telephone: (202) 586-9496. Email: [email protected].

SUPPLEMENTARY INFORMATION: 

Table of Contents

I. History of Energy Conservation Standards Rulemaking for 
Commercial and Industrial Fans and Blowers
II. Current Status
III. Summary of the Analyses Performed by DOE
    A. Fan Electrical Input Power
    B. Scope of the Analysis and Addition of Certain Embedded Fans
    C. Equipment Classes
    D. Compliance Year
    E. Engineering Analysis
    F. Manufacturer Impact Analysis
    1. Impacts on OEMs
    G. Life-Cycle Cost and Payback Period Analyses
    H. National Impact Analysis
IV. Issues on Which DOE Seeks Public Comment

I. History of Energy Conservation Standards Rulemaking for Commercial 
and Industrial Fans and Blowers

    On June 28, 2011, DOE published a notice of proposed determination 
of coverage to initiate the energy conservation standards rulemaking 
for fans, blowers, and fume hoods. 76 FR 37678. Subsequently, DOE 
published a notice of public meeting and availability of the Framework 
document for commercial and industrial fans and blowers (``fans'') in 
the Federal Register. 78 FR 7306 (February 1, 2013). In the Framework 
document, DOE requested feedback from interested parties on many 
issues, including the engineering analysis, the manufacturer impact 
analysis (MIA), the life-cycle cost (LCC) and payback period (PBP) 
analyses, and the national impact analysis (NIA).
    On December 10, 2014, DOE published a notice of data availability 
(December 2014 NODA) that estimated the potential economic impacts and 
energy savings that could result from promulgating energy conservation 
standards for fans. 79 FR 73246. The December 2014 NODA comment period 
was originally scheduled to close on January 26, 2015. However, DOE 
subsequently published a notice extending the comment period to 
February 25, 2015, to allow additional time for interested parties to 
submit

[[Page 75743]]

comments. 80 FR 1477 (January 12, 2015). The December 2014 NODA 
analysis used a ``wire-to-air'' fan electrical input power metric, the 
fan energy index (FEI), to characterize fan performance. FEI is the 
ratio of the weighted-average fan electrical input power of a minimally 
compliant fan to the weighted-average fan electrical input power of a 
given fan, at three specified operating points. The FEI metric relied 
on an equation describing fan efficiency as a function of airflow and 
pressure in order to set the minimum fan efficiency of each considered 
efficiency level (EL) analyzed in the December 2014 NODA. In October 
2014, several representatives of fan manufacturers and energy 
efficiency advocates \1\ (Joint Stakeholders) presented DOE with an 
alternative metric approach called ``Fan Efficiency Ratio,'' which 
included a fan efficiency-only metric approach (FERH) and a 
wire-to-air metric approach (FERW).\2\ Both the FEI 
approach, presented in the December 2014 NODA, and the FERW 
approaches relied on an equation to determine required fan efficiency 
as a function of the fan's airflow and pressure. The main differences 
between the December 2014 NODA FEI and the FERW approaches 
were the form of the equation used for the fan efficiency, and the 
operating conditions at which the metric was evaluated. While in the 
December 2014 NODA, the FEI was calculated as a weighted average of the 
fan performance at three specific operating points, the FERW 
was calculated at all manufacturer-declared operating points. On May 1, 
2015, based on the additional information received and comments to the 
December 2014 NODA, DOE published a second NODA (May 2015 NODA) that 
announced the availability of data from DOE analyses conducted using a 
modified FEI metric. 80 FR 24841. The modified FEI metric used in the 
May 2015 NODA is similar to the FERW metric presented by the 
Joint Stakeholders.
---------------------------------------------------------------------------

    \1\ The Air Movement and Control Association (AMCA), New York 
Blower Company, Natural Resources Defense Council (NRDC), the 
Appliance Standards Awareness Project (ASAP), and the Northwest 
Energy Efficiency Alliance (NEEA).
    \2\ Supporting documents from this meeting, including 
presentation slides are available at: http://www.regulations.gov/document?D=EERE-2013-BT-STD-0006-0029.
---------------------------------------------------------------------------

    Concurrent with these efforts, DOE also began a process through the 
Appliance Standards Rulemaking Federal Advisory Committee (ASRAC) to 
discuss negotiated energy conservation standards and test procedure for 
fans.\3\ On April 1, 2015, DOE published a notice of intent to 
establish a negotiated rulemaking Working Group for fans. 80 FR 17359. 
Twenty-five nominees were selected to serve as members of the Working 
Group in addition to one member from ASRAC and one DOE representative. 
Members of the Working Group were selected to ensure all stakeholders' 
interests and areas of expertise were represented.
---------------------------------------------------------------------------

    \3\ Information on the ASRAC, the commercial and industrial fans 
Working Group, and meeting dates is available at: http://energy.gov/eere/buildings/appliance-standards-and-rulemaking-federal-advisory-committee.
---------------------------------------------------------------------------

    The Working Group negotiations comprised 16 meetings and three 
webinars and covered scope, metrics, test procedures, and energy 
conservation standard levels for fans.\4\ The negotiations were 
initially scheduled to end on August 6, 2015, but the Working Group 
voted to extend the process by 30 days. The Working Group concluded its 
negotiations on September 3, 2015, with a consensus vote to approve and 
publish a term sheet containing recommendations for DOE on scope, 
energy conservation standards analysis methodology, and the test 
procedure for fans. The term sheet containing the Working Group 
recommendations is available in the fans energy conservation standard 
rulemaking docket.\5\ ASRAC subsequently voted to approve the 
recommendations of the Working Group during the September 24, 2015 
webinar meeting.
---------------------------------------------------------------------------

    \4\ Details of the negotiation sessions can be found in the 
public meeting transcripts that are posted to the docket for the 
energy conservation standard rulemaking at: http://www.regulations.gov/docket?D=EERE-2013-BT-STD-0006.
    \5\ The term sheet, document No. 179, is posted on the docket 
for the energy conservation standards rulemaking at: http://www.regulations.gov/docket?D=EERE-2013-BT-STD-0006.
---------------------------------------------------------------------------

II. Current Status

    Since the negotiations, DOE has revised its analysis to reflect the 
term sheet recommendations regarding the metric and energy conservation 
standards. DOE is publishing this NODA to inform stakeholders of the 
impacts of potential energy conservation standards for fans based on 
term sheet recommendations and to request feedback on specific issues.
    DOE made several changes to its analysis in preparing this NODA to 
address the term sheet recommendations as well as other stakeholder 
concerns expressed during the negotiations. Table II-1 lists the 
stakeholders who commented on issues addressed in this NODA. These 
changes and the ensuing results are described in section III, the 
accompanying analysis spreadsheets, or both. The most significant 
changes include
    (1) the augmentation of the AMCA sales data used in the May 2015 
NODA to better account for fans made by companies that incorporate 
those fans for sale in their own equipment (see section III.G);
    (2) the augmentation of the AMCA sales data used in the May 2015 
NODA to represent additional sales of forward curved fans, which AMCA 
stated were underrepresented in the original data AMCA provided. (AMCA, 
Public Meeting Transcript, No. 85 at p. 91); and
    (3) the inclusion of OEM equipment conversion costs.
    At this time, DOE is not proposing any energy conservation 
standards for fans. DOE may revise the analyses presented in today's 
NODA based on any new or updated information or data it obtains during 
the course of the rulemaking. DOE encourages stakeholders to provide 
any additional data or information that may improve the analysis.

          Table II-2--List of Commenters on Energy Conservation Standard Issues Addressed in This NODA
----------------------------------------------------------------------------------------------------------------
        Company or organization                 Abbreviation                         Affiliation
----------------------------------------------------------------------------------------------------------------
ACME Engineering & Manufacturing         ACME......................  Manufacturer.
 Corporation.
AcoustiFLO.............................  AcoustiFLO................  Manufacturer.
Air-Conditioning, Heating, and           AHRI......................  Trade Association.
 Refrigeration Institute.
Air Movement and Control Association,    AMCA......................  Trade Association.
 Inc.
Appliance Standards Awareness Program..  ASAP......................  Efficiency Advocate.
California Investor-Owned Utilities....  CA IOUs...................  Utilities.
ebm-papst, Inc.........................  ebm-papst.................  Manufacturer.

[[Page 75744]]

 
Flowcare Engineering Inc...............  Flowcare..................  Manufacturer.
Greenheck Fan Corporation..............  Greenheck.................  Manufacturer.
Ingersoll Rand/Trane...................  Ingersoll Rand/Trane......  Manufacturer.
Morrison Products......................  Morrison..................  Manufacturer.
United Technologies/Carrier............  United Technologies/        Manufacturer.
                                          Carrier.
----------------------------------------------------------------------------------------------------------------

III. Summary of the Analyses Performed by DOE

    DOE developed provisional analyses of fans in the following areas: 
(1) Engineering; (2) manufacturer impacts; (3) LCC and PBP; and (4) 
national impacts. The Government Regulatory Impact Model (GRIM), the 
engineering spreadsheet, the life-cycle cost spreadsheet, and the 
national impact analysis spreadsheet used in preparing these analyses 
and their respective results are available at: http://www.regulations.gov/docket?D=EERE-2013-BT-STD-0006. Each individual 
spreadsheet includes an introduction that provides an overview of the 
contents of the spreadsheet. These spreadsheets present the various 
inputs and outputs to the analysis and, where necessary, instructions. 
Brief descriptions of the calculation of the considered energy 
conservation standard levels, of the scope, of the provisional 
analyses, and of the supporting spreadsheet tools are provided in this 
preamble. If DOE proposes energy conservation standards for fans in a 
future NOPR, then DOE will publish a technical support document (TSD) 
containing a detailed written account of the analyses performed in 
support of the NOPR, which will include updates to the analyses made 
available in this NODA.

A. Fan Electrical Input Power

    Fan energy performance is a critical input in the provisional 
analyses discussed in this notice. DOE used the fan electrical input 
power metric (FEP) as recommended by the Working Group to characterize 
the efficiency levels and represent fan performance. (No. 179, 
Recommendation #6 at p. 5) \6\
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    \6\ A notation in this form refers to a specific recommendation 
from the Working Group term sheet, document No. 179.
---------------------------------------------------------------------------

    The recommended FEP metric represents the electrical input power of 
the fan and includes the performance of the motor, and any transmission 
and/or control if integrated, assembled, or packaged with the fan. The 
Working Group recommended to require manufacturers to determine the FEP 
at each manufacturer-declared operating point, at standard air density, 
where the operating point is characterized by a value of airflow and 
total pressure for ducted fans and by a value of airflow and static 
pressure for unducted fans.7 8 Two methods were recommended 
by the Working Group for determining the FEP: (1) A fan shaft input 
power measurement combined with default values to represent the 
performance of the motor and any transmission and/or control (default 
value testing method); or (2) a direct measurement of the fan 
electrical input power (direct testing method). The recommended default 
value testing method provides different sets of calculation algorithms 
and default values to establish the FEP of a fan depending on its 
configuration (e.g., bare shaft fan, fan with regulated electric motor, 
or fan with motor with transmission and/or control). The Working Group 
also recommended allowing the representation of an index metric, the 
FEI, to allow for better comparability across all regulated fans. The 
engineering analysis and conversion cost spreadsheet presents the 
algorithms and default values used by the default value testing method 
and calculations of the FEP for both testing methods. (No. 179, 
Recommendation #9-16 at pp. 6-10)
---------------------------------------------------------------------------

    \7\ Ducted fans are: Axial cylindrical housed, centrifugal 
housed, inline and mixed-flow, and radial housed fans. Unducted fans 
are panel fans, centrifugal unhoused fans, and power roof 
ventilators. (No. 179, Appendix C at p. 16)
    \8\ In this document, all pressures refer to standard air 
densities. Standard air density is defined by a density of 0.075 lb/
ft\3\, corresponding to air at 68 [deg]F, 50 percent relative 
humidity and 406.78 in.wg.
---------------------------------------------------------------------------

    As noted previously, the FEP of a fan includes the performance of 
the bare shaft fan and of its drive system.\9\ In the December 2014 
NODA and the May 2015 NODA, DOE calculated the FEP of a fan that 
exactly meets a given efficiency level (FEPSTD) using a fan efficiency 
equation and the default values and calculation algorithms of a fan 
sold with a regulated electric motor and transmission, such as a belt 
drive. During the negotiations, the Working Group voted to retain this 
approach and provided further recommendations on how to establish the 
fan efficiency equation and default values for standalone fans.\10\ 
(No. 179, Recommendation #18 at p. 11)
---------------------------------------------------------------------------

    \9\ The drive system includes the motor and any transmission 
and/or control if integrated, assembled or packaged with the fan.
    \10\ A standalone fan is a fan that is not exclusively 
distributed in commerce for incorporation or incorporated in a 
larger piece of equipment.
---------------------------------------------------------------------------

    Based on this recommendation, and applying the same approach for 
embedded fans (see Section III.B), this NODA calculates the FEPSTD,i of 
a fan based on the following equation, in kW, at a given operating 
point i:
[GRAPHIC] [TIFF OMITTED] TP01NO16.152

Where:

Qi = airflow (cfm) at operating point i;
Pi = total pressure for ducted fans, static pressure for unducted 
fans (in.wg.) at operating point i;
[eta]STD,i = standard level fan total efficiency for ducted fans, 
standard level fan static efficiency for unducted fans at operating 
point i (percent), calculated in accordance with Eq. 2;
[eta]T,i = default transmission efficiency (percent) at operating 
point i;
LM,i = default electric motor losses (hp) at operating point i;
6343 = conversion factor for I-P units; and
0.746 = hp to kW conversion factor.


[[Page 75745]]


    The Working Group recommended a fan efficiency equation to use for 
all fans when calculating FEPSTD. (No. 179, Recommendations #19-21 at 
pp. 11-12) For each efficiency level considered, this NODA uses the 
equation recommended by the Working Group to determine the fan total 
efficiency for ducted fans and the fan static efficiency for unducted 
fans (percent) at a given operating point i (percent):
[GRAPHIC] [TIFF OMITTED] TP01NO16.153

Where:

[eta]STD,i = standard level fan total efficiency for ducted fans, 
standard level fan static efficiency for unducted fans (percent) at 
operating point i and considered efficiency level;
Qi = flow (CFM) at operating point i;
Pi = total pressure for ducted fans, static pressure for unducted 
fans (in.wg.) at operating point i;
[eta]target = constant (percent) used to establish the efficiency 
level associated with each standards case considered (see section 
III.E).

    The detailed equations and assumptions used to calculate 
FEPSTD are included in the engineering analysis and 
conversion cost spreadsheet.
    In addition, for this NODA, DOE maintained the Working Group 
recommendation for the FEI calculation, with one modification as 
follows: DOE calculated the FEI using a reference value of FEP 
(FEPREF) instead of using a value equal to the first energy 
conservation standards DOE may set (FEPSTD). As a reference 
value, DOE used the mid-point efficiency level (EL3).
    DOE requests feedback on the calculation of the FEPSTD 
and FEI.

B. Scope of the Analysis and Addition of Certain Embedded Fans

    In the December 2014 NODA and the May 2015 NODA, DOE analyzed the 
following fan categories: Axial housed fans, axial unhoused fans, 
centrifugal housed fans, centrifugal unhoused fans, inline and mixed 
flow fans, radial fans, and power roof ventilators. This NODA analyzes 
the same fan categories based on the recommendation of the Working 
Group, but renames axial housed fans as axial cylindrical housed fans 
and axial unhoused fans as panel fans based on information provided by 
the Working Group. In addition, based on the discussions of the Working 
Group, DOE incorporated more embedded fans into its analysis for this 
NODA.\11\ DOE also added more sales of forward curved fans for this 
NODA, which AMCA stated were under-represented in the original data 
AMCA provided. (AMCA, Public Meeting Transcript, No. 85 at p. 91) 
Accordingly, this NODA analyzes the fans listed in Table III-1 with the 
characteristics discussed in this section and exemptions listed in 
Table III-2. (No. 179, Recommendation #1-4 at pp. 1-4)

                  Table III-1--Fan Categories Analyzed
------------------------------------------------------------------------
             Family                  Fan category       In NODA scope?
------------------------------------------------------------------------
Axial...........................  Axial cylindrical   Yes *
                                   housed.
                                  Panel.............  Yes *
                                  Power Roof          Yes *
                                   Ventilator.
                                  Induced flow fans.  No
                                  Safety fan........  No
                                  Circulating fans..  No
Centrifugal.....................  Centrifugal housed  Yes *
                                  Centrifugal         Yes *
                                   unhoused.
                                  Radial shrouded...  Yes *
                                  Radial unshrouded.  No if impeller is
                                                       less than 30
                                                       inches in
                                                       diameter or less
                                                       than 3 inches in
                                                       blade width.
                                  Power Roof          Yes *
                                   Ventilator.
                                  Induced flow fans.  No
                                  Safety fan........  No
                                  Inline............  Yes *
Mixed flow......................  ..................  Yes *
Cross flow......................  ..................  No
------------------------------------------------------------------------
* Excluding embedded fans listed in Table III-2.


            Table III-2--Embedded Fans Recommended Exemptions
------------------------------------------------------------------------
                           Equipment category
-------------------------------------------------------------------------
Fans exclusively embedded in:
    Single phase central air conditioners and heat pumps with a
     certified cooling capacity rated less than 65,000 Btu per hour,
     subject to DOE's energy conservation standard at 10 CFR 430.32(c).
    Three phase, air-cooled, small commercial packaged air-conditioning
     and heating equipment with a certified cooling capacity rated less
     than 65,000 Btu per hour, subject to DOE's energy conservation
     standard at 10 CFR 431.97(b).
    Residential furnaces subject to DOE's energy conservation standard
     at 10 CFR 430.32(y).
    Transport refrigeration (i.e., Trailer refrigeration, Self-powered
     truck refrigeration, Vehicle-powered truck refrigeration, Marine/
     Rail container refrigerant).
    Vacuums.
    Heat Rejection Equipment:
        Packaged evaporative open circuit cooling towers.

[[Page 75746]]

 
        Evaporative field erected open circuit cooling tower.
        Packaged evaporative closed circuit cooling towers.
        Evaporative field erected closed circuit cooling tower.
        Packaged evaporative condensers.
        Field erected evaporative condensers.
        Packaged air cooled (dry) coolers.
        Field erected air cooled (dry) coolers.
        Air cooled steam condensers.
        Hybrid (water saving) versions of all of the previously listed
         equipment that contain both evaporative and air cooled heat
         exchange sections.
    Air curtains.
Supply or Condenser fans, exclusively embedded in:
    Air-cooled commercial package air conditioners and heat pumps (CUAC,
     CUHP) between 5.5 and 63.5 tons regulated by DOE's energy
     conservation standard at 10 CFR 431.97(b).
    Water-cooled, evaporatively-cooled, and water-source commercial air
     conditioners or heat pumps regulated by DOE's energy conservation
     standard at 10 CFR 431.97(b).
    Single package vertical air conditioners and heat pumps regulated by
     DOE's energy conservation standard at 10 CFR 431.97(d).
    Packaged terminal air conditioners (PTAC) and packaged terminal heat
     pumps (PTHP) regulated by DOE's energy conservation standard at 10
     CFR 431.97(c).
    Computer room air conditioners regulated by DOE's energy
     conservation standard at 10 CFR 431.97(e).
    Variable refrigerant flow multi-split air conditioners and heat
     pumps regulated by DOE's energy conservation standard at 10 CFR
     431.97(f).
------------------------------------------------------------------------

    In addition, based on the recommendation of the Working Group, this 
NODA only considered fans with operating points with a fan shaft input 
power equal to, or greater than, 1 horsepower and a fan airpower equal 
to or less than 150 horsepower. (No. 179, Recommendation #5 at p. 4) 
The horsepower scope limitations are further explained in the 
engineering analysis and conversion cost spreadsheet.

C. Equipment Classes

    When evaluating and establishing energy conservation standards, DOE 
divides covered equipment into equipment classes by the type of energy 
used or by capacity or other performance-related features that justify 
differing standards. In making a determination whether a performance-
related feature justifies a different standard, DOE must consider such 
factors as the utility of the feature to the consumer and other factors 
DOE determines are appropriate. (42 U.S.C. 6295(q)) In the December 
2014 and May 2015 NODAs, DOE divided commercial and industrial fans 
into seven equipment classes based primarily on the direction of the 
airflow through the fan and other features that impact the energy use 
and utility of a fan (see Table III-3). In addition, DOE grouped inline 
and mixed flow fans into a single equipment class and included all 
power roof ventilators in a single equipment class.

                                       Table III-3--Fan Equipment Classes
----------------------------------------------------------------------------------------------------------------
               Airflow                       Fan category               Feature              Equipment class
----------------------------------------------------------------------------------------------------------------
Axial................................  Axial cylindrical        Cylindrical housing....  Axial cylindrical
                                        housed.                                           housed.
                                       Panel..................  Orifice panel or ring..  Panel.
                                       Power Roof Ventilator..  Weather protection       Power Roof Ventilator.
                                                                 housing.
Centrifugal..........................  Power Roof Ventilator..  Weather protection
                                                                 housing..
                                       Centrifugal housed.....  Scroll Housing.........  Centrifugal housed.
                                       Centrifugal unhoused...  No Housing.............  Centrifugal unhoused.
                                       Radial shrouded........  Radial impellers and     Radial housed.
                                       Radial unshrouded......   housing (dust/material
                                                                 handling).
                                       Inline.................  Cabinet or cylindrical   Inline and Mixed Flow.
                                                                 Housing.
Mixed flow
----------------------------------------------------------------------------------------------------------------

    During the negotiations, the Working Group did not come to a 
consensus regarding the equipment classes and stakeholders provided 
several suggestions for modifying these equipment classes. (No. 179, 
Recommendation #30 at p. 19)
    ASAP and AMCA, supported by the CA IOUs, recommended grouping all 
ducted fans into a single equipment class, and all unducted fans in a 
single equipment class. (ASAP and AMCA, No. 50 at p. 2; CA IOUs, No. 49 
at p. 2) Flowcare commented that fans should be classified into three 
classes: Axial fans, centrifugal fans, and mixed flow fans. (Flowcare, 
No. 46 at p. 6)
    Ingersoll Rand/Trane commented that centrifugal housed fans with a 
forward curved blade design have a distinct utility compared to other 
centrifugal housed fans (e.g., backward curved centrifugal housed fans) 
and should be in a separate equipment class. Ingersoll Rand/Trane 
commented that forward curved centrifugal housed fans are compact, have 
a relatively good sound quality, and are most suitable for low-pressure 
applications, in which they are relatively efficient. (Ingersoll Rand/
Trane, No. 153 at p. 5) AHRI provided similar comments. AHRI stated 
that forward curved centrifugal housed fans require a separate 
equipment class for the following reasons: (1) Their compact sizes 
compared to backward curved fans providing the same airflow and 
pressure; (2) their specific applications in low pressure and speed 
ranges, providing good sound quality; and (3) the European Regulation 
327/2011

[[Page 75747]]

considers them separately. (AHRI, No. 129-2 at pp. 1-6)
    DOE did not group all fans into only ducted and unducted equipment 
classes because fans have other unique features that provide different 
utilities to the customer and, as a result, justify additional 
equipment classes. However, DOE recognizes that ducted and unducted 
fans perform differently. For this NODA, the FEPstd at each 
EL is calculated differently for ducted and unducted fans to account 
for these performance differences. (See section III.A for more details) 
For this same reason, DOE also did not establish equipment classes 
based solely on airflow.
    With respect to establishing a separate equipment class for forward 
curved centrifugal housed fans, DOE analyzed a sample of fan selections 
\12\ and found forward curved centrifugal housed fans that meet every 
efficiency level being analyzed. In addition, for small diameter fans, 
DOE also found an example of a forward curved fan with a small impeller 
diameter (i.e., less than 6.5 inches) that met all efficiency levels up 
to EL 5, showing that it is technologically feasible for small forward 
curved fans to reach high efficiency levels.\13\ DOE notes that there 
may be many more forward curved fans with small impeller diameters at 
high efficiency levels in the market than its database shows. DOE 
recognizes that maintaining the utility of small forward curved fans 
across all operating points is important and requires preserving 
forward curved fan availability or acceptable non-forward curved fan 
replacements across sizes and operating points. Based on analysis of 
the data available, DOE believes small forward curved fans or 
acceptable non-forward curved replacements would be available up to EL 
5 across all current sizes and operating points. DOE therefore believes 
that more-efficient forward curved centrifugal housed fans could 
replace inefficient forward curved centrifugal housed fans up to EL 5. 
In addition, to consider the possibility that an original equipment 
manufacturer (OEM) might opt to replace a forward curved centrifugal 
housed fan incorporated in a larger piece of heating, ventilation, air-
conditioning, and refrigeration (HVACR) equipment with a backward 
curved centrifugal housed fan, DOE included the costs of redesigning 
the HVACR equipment to accommodate a different fan in the standards 
case fan price calculation. (See section III.F.1 for more details) 
Therefore, DOE does not believe that forward curved centrifugal housed 
fans merit a separate equipment class.
---------------------------------------------------------------------------

    \12\ See description of the fan selection sample in the life 
cycle analysis section III.F.1.
    \13\ See engineering analysis discussion in section III.E for 
details about the considered efficiency levels.
---------------------------------------------------------------------------

    Regarding the application range, DOE agrees with AHRI and Ingersoll 
Rand/Trane that forward curved centrifugal housed fans are most 
typically used in low pressure (less than 5.0 in.wg.), low speed 
applications (between 800 and 1200 rpm). DOE accounted for the 
specificity of the application range in the metric, which allows 
calculating the FEPSTD of a fan based on a fan efficiency 
equation that provides lower values at decreased pressure and airflow 
(see Eq. 2). In other words, the required FEP at a given efficiency 
level decreases with pressure and airflow in order to account for the 
fact that fans operating in these ranges are inherently less efficient.
    Finally, DOE notes that the latest revision of the European 
Regulation 327/2011 \14\ is considering grouping forward curved 
centrifugal housed fans with backward curved centrifugal housed fans 
for fans with an electrical input power greater than 5 kW (equivalent 
to approximately 6.7 hp). At a given diameter, the European study 
states that forward curved fans typically output more flow compared to 
backward bladed fans, which allows them to run relatively slower. This 
effect is more apparent for smaller diameters and becomes less 
significant as fan diameter increases. The EU therefore concluded that 
forward and backward curved centrifugal housed fans of larger sizes 
(greater than 5 kW of fan electrical input power) could be treated in 
the same product category with the same minimum efficiencies. For 
capacities less than 5 kW, the latest revision of the European 
regulation is considering maintaining forward curved centrifugal housed 
fans as a separate equipment class. DOE's fan selection analysis found 
forward curved centrifugal housed fans with electrical input power 
below 5kW that were compliant up to EL 6. Therefore, DOE believes such 
distinction is not necessary when using the FEP metric. In addition, as 
previously noted, DOE accounted for the costs of potentially 
incorporating a larger fan in a larger piece of equipment as part of 
the OEM equipment conversion costs. Therefore, DOE is not considering 
applying the distinction made in the European regulation 327/2011 and 
retains forward curved centrifugal housed fans in the same equipment 
class as other centrifugal housed fans for this NODA analysis.
---------------------------------------------------------------------------

    \14\ Ecodesign Fan Review, Review Study of Commission Regulation 
(EU) No 327/2011, Final Report prepared by Van Holsteijn en Kemna 
B.V. for the European Commission, Directorate-General for Energy. 
Available at http://www.fanreview.eu/documents.htm (last accessed 
02/02/2016).
---------------------------------------------------------------------------

    AHRI and Bade commented that regulating return fans and exhaust 
fans requires special consideration because they typically operate at 
similar flows but lower static pressures compared to supply fans, which 
inherently affects the fan operating efficiency. (AHRI, No. 158 at pp. 
5-6; Bade, No 116 at p. 1) Similarly, Ingersoll Rand/Trane commented 
that using efficient fans in variable-air-volume applications might 
decrease the capability of the fans to achieve an airflow reduction at 
lower system requirements, which may increase a building's energy 
consumption by pushing consumers to constant volume systems or 
requiring different systems. (Ingersoll Rand/Trane, No. 153 at p. 3) 
DOE agrees with AHRI and Ingersoll Rand/Trane that fans operating at 
lower pressures will have a lower efficiency compared to fans of 
equivalent design operating at higher pressures. To account for this 
effect and preserve the utility of low-pressure fans, DOE is 
considering a metric that is a function of the operating pressure, 
where the required FEP at a given efficiency level is less stringent at 
lower operating pressures. Consequently, a return or exhaust fan 
operating at a lower pressure than a supply fan at a given flow would 
have a lower required FEP at a given efficiency level, which mitigates 
the disproportionate impacts suggested by AHRI and Ingersoll Rand/
Trane.
    Based on these comments, DOE maintained the equipment classes used 
in the May 2015 NODA and presented in Table III-3.
    DOE seeks comments on the equipment classes used in this notice, 
including information on specific sizes or operating points for which 
forward curved fans would no longer be available at efficiency levels 
up to EL 5 and whether, at those sizes or operating points, an 
acceptable non-forward curved fan is available.

D. Compliance Year

    For this analysis, DOE assumed a compliance date of five years 
after publication of a final energy conservation standards rule. (42 
U.S.C. 6316(a); 42 U.S.C. 6295(l)(2)) The Working Group did not make 
any recommendation on the compliance year, and DOE believes that five 
years would allow fan manufacturers sufficient time to redesign their 
existing equipment, as necessary, to meet new energy conservation 
standards. DOE anticipates the final rule to publish in

[[Page 75748]]

2017, resulting in a compliance date for the standards of 2022. 
Stakeholders provided several suggestions for the compliance date.
    ebm-papst commented that a three-year compliance period would 
represent sufficient time. (ebm-papst, No. 45 at p. 2) Morrison 
commented that even five years may not be enough. (Morrison, No. 51 at 
p. 9)
    Ingersoll Rand/Trane and AHRI commented that, in order to allow 
OEMs to redesign their existing equipment to use fans of different 
types or sizes, the compliance date for fans that are components of 
larger piece of equipment should be delayed. For such fans, Ingersoll 
Rand/Trane recommended an additional two years and AHRI recommended an 
additional five years after the compliance date for standalone fans. 
(Ingersoll Rand/Trane, No. 153 at p. 4; AHRI, No. 158 at p. 9)
    In the December 2014 NODA, DOE requested comments on the redesign 
time per fan model. United Technologies/Carrier stated three years 
would be too short in terms of compliance period and that it could take 
18 to 24 months per fan for an OEM to complete a redesign for an 
embedded fan and the equipment incorporating the fan. (United 
Technologies/Carrier, No. 43 at p. 2)
    DOE believes that manufacturers will be able to offer fans that are 
compliant with any energy conservation standards DOE may set before 5 
years after publication of a final rule. Many fans are compliant with 
the highest efficiency levels for at least part of their operating 
range. Consequently, for many fans, any standard may only require 
certifying a different operating range rather than redesigning the fan. 
DOE's analysis estimates that at the most stringent EL (EL 6), 70 
percent of current fan selections \15\ would not meet the standard but 
that more than half of these could be replaced by existing compliant 
substitutes. This means that even at the highest EL, only 33 percent of 
all fan selections would require a redesigned fan. Therefore, DOE 
believes that a five-year compliance period is sufficient for fan 
manufacturers, including OEMs to either redesign their fans and 
equipment or select compliant, alternative fans. For the analyses in 
this NODA, DOE assumed a compliance date of five years after the 
publication of the final rule.
---------------------------------------------------------------------------

    \15\ Based on 2012 data, see section III.G for more details. A 
fan selection is the combination of a fan model and design point at 
which it is purchased.
---------------------------------------------------------------------------

    DOE seeks comments on the use a compliance date of five years after 
the publication of the final rule.

E. Engineering Analysis

    The engineering analysis establishes the relationship between the 
manufacturer production cost (MPC) and efficiency levels of fans. This 
relationship serves as the basis for calculations performed in the 
other analysis tools to estimate the costs and benefits to individual 
consumers, manufacturers, and the Nation.
    DOE used the same methodology in the engineering analysis of this 
NODA as for the December 2014 NODA and the May 2015 NODA. For each fan 
equipment class, DOE identified existing technology options that could 
affect efficiency. Next, DOE conducted a screening analysis to review 
each technology option and decide whether it: (1) Is technologically 
feasible; (2) is practicable to manufacture, install, and service; (3) 
would adversely affect product utility or product availability; or (4) 
would have adverse impacts on health and safety. The technology options 
remaining after the screening analysis consisted of a variety of 
impeller types and guide vanes. DOE categorized the fan equipment 
classes into subcategories by the technology options the fans use. DOE 
then conducted a market-based assessment of the prevalence of each 
subcategory at each efficiency level analyzed. DOE estimated market 
prevalence using the sales data provided by AMCA that was within the 
scope of the analysis and for which there was sufficient information. 
This NODA, like the May 2015 NODA has fewer subgroups than the December 
2014 NODA due to limitations in the sales data provided by AMCA.
    For this NODA, DOE augmented the AMCA sales data used in the May 
2015 NODA to account for embedded fans made by companies that 
incorporate those fans for sale in their own equipment (see section 
III.G) and to represent additional sales of forward curved fans, which 
AMCA stated were underrepresented in the original data AMCA provided. 
(AMCA, Public Meeting Transcript, No. 85 at p. 91) The resulting 
engineering database was analyzed at six efficiency levels (ELs) 
representing different target efficiencies ([eta]target[hairsp], see 
section III.A). In this NODA, efficiency levels were set separately for 
ducted and unducted fans, based on the recommendation of the working 
group. (No. 179, Recommendation #18 at pp. 10-11) For ducted fans, the 
six efficiency levels are calculated using the same six total 
efficiency targets used in the May 2015 NODA. At each of the analyzed 
efficiency levels in this NODA, the static efficiency targets used for 
unducted fans are 0.04 less than the total efficiency target at each 
respective level. The exact target efficiencies used in this NODA are 
presented in Table 3 of the ``MPC Approach'' tab of the engineering 
analysis and conversion cost spreadsheet.
    DOE calculated MPCs at each efficiency level using the same 
methodology as used in the December 2014 NODA and the May 2015 NODA. 
The MPCs were derived from product teardowns and publically available 
product literature and were informed by interviews with manufacturers. 
DOE calculated the MPCs for fans in each subcategory. DOE used these 
MPCs to characterize the relationship between MPC and blade or impeller 
diameter for each subcategory. DOE found that all fan subcategories 
were represented at all ELs, so DOE did not use subcategory MPC 
differences to directly represent higher efficiency. DOE found some 
subcategories to be more prevalent at higher ELs. Therefore, DOE 
calculated MPCs for each fan equipment class at each efficiency level 
analyzed by weighting the MPCs of each subcategory within a class by 
its prevalence at the efficiency level being analyzed.
    DOE's preliminary MPC estimates indicate that the changes in MPC as 
efficiency level increases are small or, in some fan equipment classes, 
zero. However, DOE is aware that aerodynamic redesigns are a primary 
method by which manufacturers improve fan performance. These redesigns 
require manufacturers to make large upfront investments for R&D, 
testing and prototyping, and purchasing new production equipment. DOE's 
preliminary findings indicate that the magnitude of these upfront costs 
are more significant than the difference in MPC of a fan redesigned for 
efficiency compared to its precursor. For this NODA, DOE included a 
conversion cost markup in its calculation of the manufacturer selling 
price (MSP) to account for these conversion costs. These markups and 
associated MSPs were developed and applied in downstream analyses. They 
are discussed in section III.F and presented in the LCC spreadsheet.
    The main outputs of the fans engineering analysis are the MPCs of 
each fan equipment class (including material, labor, and overhead) and 
technology option distributions at each efficiency level analyzed.

F. Manufacturer Impact Analysis

    For the MIA, DOE used the Government Regulatory Impact Model (GRIM) 
to assess the economic impact of potential standards on commercial and 
industrial fan manufacturers. DOE

[[Page 75749]]

developed key industry average financial parameters for the GRIM using 
publicly available data from corporate annual reports along with 
information received through confidential interviews with 
manufacturers. These values include average industry tax rate; working 
capital rate; net property, plant, and equipment rate; selling, 
general, and administrative expense rate; research and development 
expense rate; depreciation rate; capital expenditure rate; and 
manufacturer discount rate.
    Additionally, DOE calculated total industry capital and product 
conversion costs associated with meeting all analyzed efficiency 
levels. Using a proprietary cost model and feedback received from 
manufacturers during interviews, DOE first estimated the average 
industry capital and product conversion costs associated with 
redesigning a single size of a fan series to meet a specific efficiency 
level. DOE estimated the costs for all subcategories within each fan 
equipment class. DOE multiplied these per model conversion costs by the 
number of models that would be required to be redesigned at each 
efficiency level to arrive at the total industry conversion costs. The 
number of models that would be redesigned was calculated using 
information from the engineering database developed from the AMCA sales 
database (see section III.E). Additional information on the number of 
models redesigned is available in the engineering analysis and 
conversion cost spreadsheet, ``Total Fan Conversion Costs'' section of 
the ``Database Overview and Use'' tab.
    The GRIM uses these estimated values in conjunction with inputs 
from other analyses, including the MPCs from the engineering analysis, 
the annual shipments by fan equipment class from the NIA, and the fan 
manufacturer markups for the cost recovery markup scenario from the LCC 
analysis to model industry annual cash flows from the reference year 
through the end of the analysis period. The primary quantitative output 
of this model is the industry net present value (INPV), which DOE 
calculates as the sum of industry annual cash flows, discounted to the 
present day using the industry specific weighted average cost of 
capital, or manufacturer discount rate.
    Standards can affect INPV in several ways including requiring 
upfront investments in manufacturing capital as well as research and 
development expenses, which increase the cost of production and 
potentially alter manufacturer markups. DOE expects that manufacturers 
may lose a portion of INPV due to standards. The potential loss in INPV 
due to standards is calculated as the difference between INPV in the 
no-standards case (absent new energy conservation standards) and the 
INPV in the standards cases (with new energy conservation standards in 
effect). DOE examines a range of possible impacts on industry by 
modeling various pricing strategies commercial and industrial fan 
manufacturers may adopt following the adoption of new energy 
conservations standards for fans.
    In addition to INPV, the MIA also calculates the manufacturer 
markups, which are applied to the MPCs derived in the engineering 
analysis, to arrive at the manufacturer selling prices (MSPs) in the 
no-standards case. In the standards cases manufacturers will incur 
costs from the redesign of models that do not meet the required FEP at 
a given efficiency levels. DOE modeled two markup scenarios for the 
standards cases, a preservation of gross margin markup scenario and a 
conversion cost pass through markup scenario.
    In the preservation of gross margin markup scenario, DOE assumes 
that manufacturers maintain the same manufacturer markup, as a 
percentage, in the standards cases as they do in the no-standards case, 
despite higher levels of investment in the standards cases. This markup 
scenario represents the lower bound, or worst-case scenario for 
manufacturers, since manufacturers are not able to pass the conversion 
costs associated with complying with higher efficiency levels on to 
their customers. In the fan conversion cost recovery markup scenario, 
DOE assumes that manufacturers are able to pass on to their customers 
the fan conversion costs they incur to meet higher efficiency levels. 
In this markup scenario, manufacturer markups are based on the total 
manufacturer fan conversion costs and calculated to allow manufacturers 
to recover their upfront fan conversion costs, in addition to their 
normal no-standards case markup. DOE calculated the conversion cost 
pass through markups for each efficiency level by amortizing the 
conversion costs over the units shipped throughout the analysis period 
that were redesigned to meet the efficiency level being analyzed. This 
fan conversion cost pass through markup scenario represents the upper 
bound, or best-case scenario for manufacturers, since manufacturers are 
able to pass on to their customers the fan conversion costs associated 
with complying with higher efficiency levels. For the standards cases, 
all other downstream analyses use the fan manufacturer markups 
calculated in the fan conversion costs pass through markup scenario.
    DOE requests information on the per-model (size of a fan series) 
redesign costs presented in the engineering analysis and conversion 
cost spreadsheet.
    DOE requests information on the number of models (sizes of a fan 
series) that are currently in the scope of the rulemaking nationally.
    DOE requests feedback on the quantity of redesigns, methodology, 
and results used to calculate the total industry conversion costs by 
equipment class and EL, as presented in the engineering analysis and 
conversion cost spreadsheet.
    DOE requests information on the extent to which product conversion 
costs and/or capital conversion costs are shared among sizes in a fan 
series.
    DOE requests information on the extent to which product conversion 
costs and/or capital conversion costs are shared between belt and 
direct drive fans with the same aerodynamic design.
    DOE requests information on the extent to which product conversion 
costs and/or capital conversion costs are shared between fans of 
different construction classes of the same aerodynamic design.
1. Impacts on OEMs
    Several stakeholders commented that the previous DOE analyses did 
not take into account the significant costs incurred by manufacturers 
who incorporate fans into their equipment. Ingersoll Rand/Trane, United 
Technologies/Carrier, Morrison, AHRI, and Greenheck commented that 
separate costs to redesign the units in which fans are installed would 
be incurred due to this regulation. (Ingersoll Rand/Trane, No. 42 at p. 
4; United Technologies/Carrier, No. 43 at p. 4; Morrison, No. 51 at p. 
5; AHRI, No. 53 at p. 6; Greenheck, No. 54-A at pp. 4-5) AHRI added 
that the cost to redesign the units in which fans are installed can be 
several times greater in terms of both time and money than the cost to 
redesign the fan itself. (AHRI, No. 53 at p. 7) Morrison and Ingersoll 
Rand/Trane commented that fans in commercial and industrial building 
applications are typically housed within other equipment such as air 
handlers or unitary rooftop units that are sized specifically around 
the fan. (Morrison, No. 51 at p. 5; Ingersoll Rand/Trane, No. 42 at p. 
11) AHRI commented that any change to fan size, operating range, or fan 
type will increase the OEM production cost, and urged DOE to consider 
the production cost impact to OEMs as part of the rulemaking. (AHRI, 
No. 53 at p. 6) Ingersoll Rand/Trane added that this increased cost 
would affect building

[[Page 75750]]

owners and could decrease adoption rate by consumers. (Ingersoll Rand/
Trane, No. 42 at p. 11).
    AHRI also commented that in order to pass a regulation imposing 
additional costs (testing, implementation, time-frame, spare part 
availability, re-certification) on OEMs, DOE must consider the costs to 
these manufacturers and compare them to the potential energy saved, and 
in order to do so must conduct manufacturer interviews with OEMs. AHRI 
requested that DOE conduct such interviews and delineate DOE-covered 
equipment made by OEMs as a separate fan equipment class to assess the 
costs and relative benefits of a second layer of regulation on 
currently regulated HVACR equipment and publish a new NODA specifically 
addressing the impact on OEMs who were excluded from DOE's initial 
analysis. (AHRI, No. 158 at p. 3).
    After careful consideration of these comments and the Working Group 
discussions, DOE recognizes that its previous analyses did not 
accurately account for the cost impacts of a fans regulation on all 
impacted manufacturers. DOE revised its analysis for this NODA to 
better account for cost impacts on fan manufacturers, especially OEMs. 
DOE understands that some OEMs manufacture their own fans that they 
then incorporate in the equipment that they manufacture for sale. As 
discussed in section III.B, DOE augmented the database it used for this 
NODA by incorporating fans made by companies that then incorporate 
those fans for sale in their own equipment (see section III.G). The 
presence of these fans in the database DOE used for this NODA ensures 
that its analysis accounts for the impacts on MPC (see section III.E) 
and conversion costs (see previous discussion in this section) for OEMs 
that manufacture fans and incorporate them in the equipment that they 
manufacture for sale. DOE also understands that OEMs that incorporate 
fans may incur additional conversion costs for their equipment not 
directly associated with improving the efficiency of the fan. For this 
NODA, DOE estimated OEM equipment conversion costs and included them in 
its analysis. DOE conducted interviews with manufacturers of equipment 
with embedded fans. DOE used information gathered during these 
interviews in conjunction with its engineering database to estimate OEM 
equipment conversion costs at each EL. In each fan equipment class, fan 
models in the engineering database that were representing fans sold by 
OEMs (whether or not the OEM made the fan) and that needed to be 
redesigned or reselected were determined to incur OEM equipment 
conversion costs. The aggregated industry OEM equipment conversion 
costs are presented in the engineering analysis and conversion cost 
spreadsheet.
    DOE applied OEM equipment conversion costs to all embedded fans in 
its analysis. For OEMs that manufacture the fans that they incorporate 
in the equipment they manufacture for sale, DOE added the OEM equipment 
conversion costs to the fan conversion costs to develop total 
conversion cost recovery markups at each EL, for each fan equipment 
class, using the cost recovery markup methodology described in section 
III.F. For OEMs that incorporate fans that they do not manufacture 
themselves, the OEM equipment conversion cost is used to develop a cost 
recovery markup that is applied downstream of the fan conversion cost 
recovery markup. DOE then used the results as an input to the LCC 
analysis. Consequently, the cost to consumers of embedded fans, and, in 
turn, the cost-justification for the analyzed efficiency levels, 
accounts for both fan and OEM equipment conversion costs in this NODA.
    DOE believes the revisions made for this NODA analysis--augmenting 
DOE's database to more completely incorporate embedded fans and 
including OEM equipment conversion costs--better account for the costs 
and benefits associated with potential energy conservation standards 
for fans incorporated in larger pieces of equipment and address the 
concerns of Ingersoll Rand/Trane, United Technologies/Carrier, 
Morrison, AHRI, and Greenheck.
    DOE did not analyze a separate equipment class for embedded fans. 
DOE believes the revisions to its analysis described previously in this 
section appropriately account for the costs and benefits associated 
with embedded fans. However, the LCC spreadsheet published as part of 
this NODA provides the option to view results by subgroup for embedded 
fans and standalone fans separately.
    DOE requests information on the portion of equipment with embedded 
fans that would require heat testing for certification with any new 
energy conservation standards. DOE also requests feedback on the number 
of embedded fans that would require redesign as presented in the 
engineering analysis and conversion costs spreadsheet.

G. Life-Cycle Cost and Payback Period Analyses

    The LCC and PBP analyses determine the economic impact of potential 
standards on individual consumers, in the compliance year. The LCC is 
the total cost of purchasing, installing, and operating a commercial or 
industrial fan over the course of its lifetime.
    DOE determines the LCC by considering: (1) The total installed cost 
to the consumer (which consists of manufacturer selling price, the 
conversion costs, distribution channel markups, and sales taxes); (2) 
the range of fan annual energy consumption as they are used in the 
field; (3) the fan operating costs; (4) fan lifetime; and (5) 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 of higher-efficiency 
fans through savings in the operating cost. The PBP is calculated by 
dividing the incremental increase in installed cost of the higher 
efficiency product, compared to the baseline product, by the annual 
savings in operating costs.
    For each considered standards case corresponding to each efficiency 
level, DOE measures the change in LCC relative to the no-standards 
case. The no-standards case is characterized by the distribution of fan 
efficiencies in the absence of new standards (i.e., what consumers 
would have purchased in the compliance year in the absence of new 
standards). In the standards cases, fans with efficiency below the 
standard levels ``roll-up'' to the standard level in the compliance 
year.
    To characterize annual fan operating hours, DOE established 
statistical distributions of consumers of each fan equipment class 
across sectors and applications, which in turn determined the fan 
operating hours. Recognizing that several inputs to the determination 
of consumer LCC and PBP are either variable or uncertain (e.g., annual 
operating hours, lifetime, discount rate), DOE conducts the LCC and PBP 
analysis by modeling both the uncertainty and variability in the inputs 
using Monte Carlo simulations and probability distributions.
    In addition to characterizing several of the inputs to the analyses 
with probability distributions, DOE developed a sample of individual 
fan selections representative of the market.\16\ By developing this 
sample, DOE was able to perform the LCC and

[[Page 75751]]

PBP calculations for each fan selection to account for the variability 
in energy consumption associated with each selection.
---------------------------------------------------------------------------

    \16\ A fan selection is a fan model and the fan shaft input 
power, operating flow, and pressure values for which it was 
purchased.
---------------------------------------------------------------------------

    The primary outputs of the LCC and PBP analyses are: (1) Average 
LCC in each standards case; (2) average PBPs; (3) average LCC savings 
at each standards case relative to the no-standards case; and (4) the 
percentage of consumers that experience a net benefit, have no impact, 
or have a net cost for each fan equipment class and efficiency level. 
The average annual energy consumption derived in the LCC analysis is 
used as an input in the NIA (see section III.H).
    In the December 2014 NODA and the May 2015 NODA, DOE developed a 
sample of individual fan selections (i.e., representative database of 
fan models including data on the design flow, pressure, and fan shaft 
input power for which they were purchased, and the drive configuration) 
using fan sales data provided by AMCA. During the negotiations, AMCA 
commented that these sales data included some standalone fans purchased 
by OEMs for incorporation into larger HVACR equipment but was not 
representative of sales of embedded fans. Specifically, AMCA commented 
that forward curved centrifugal housed fans, which are very common in 
HVACR equipment, were under-represented. (AMCA, Public Meeting 
Transcript, No. 85 at p. 91).
    In this NODA, DOE collected additional technical and market 
information specific to embedded fans and revised the LCC sample to 
represent both the embedded fan and standalone fan markets. For each 
fan equipment class, DOE used confidential AMCA sales data for over 
57,000 fan selections (with complete performance data), representing 
over 92,000 units sold, to develop a sample representative of fans sold 
on the US market. Each row in the sample represents a fan selection. 
The number of rows was adjusted to match the US market distributions 
across fan equipment classes, subcategory, fan shaft input power, and 
drive configuration. DOE adjusted the number of standalone fans in the 
LCC sample to mirror the actual standalone fan market distributions 
based on confidential market estimates from AMCA for the U.S standalone 
fan market. For embedded fans, DOE adjusted the number of fan 
selections in the LCC sample to reflect the actual embedded fan market 
distributions based on embedded fan shipments data.\17\ As a result, 
and in line with AMCA's comment, the share of forward curved 
centrifugal housed fans in the sample increased from 3 percent to 19 
percent. Using this sample, DOE was able to perform individual energy 
use calculations for each row in the sample and account for the 
variability in energy consumption associated with each fan selection.
---------------------------------------------------------------------------

    \17\ See description of the LCC sample in the LCC Spreadsheet.
---------------------------------------------------------------------------

    The ``2012 Shipments'' worksheet of the NIA spreadsheet presents 
the standalone fan market and embedded fan market data used to 
calibrate the LCC sample. The worksheet includes breakdowns by 
equipment class, subcategory, as well as the HVACR equipment shipments 
and estimated number of fans per unit used by DOE to calculate the 
number of embedded fans. The LCC sample description worksheet in the 
LCC spreadsheet provides more detailed breakdown of the fan selections 
by power bins and efficiency levels.
    DOE seeks feedback and input on the 2012 standalone fan and 
embedded fan shipments values, by equipment class and subcategory. 
Specifically, DOE requests feedback on: (1) The estimated number of 
fans per HVACR equipment; (2) the distribution of HVACR fans across fan 
subcategories by fan application; and (3) the share of standalone fans 
purchased and incorporated in HVACR equipment.
    DOE seeks feedback and input on the distribution of fan selections 
by power bin and subcategory for standalone fans and embedded fans as 
presented in the ``LCC sample Description'' worksheet of the LCC 
spreadsheet.
    In the December 2014 NODA and the May 2015 NODA, DOE calculated the 
FEP of a fan selection in the LCC sample using the default values and 
calculation algorithms for bare shaft fans. DOE applied this approach 
because the fan selection data included performance data for fans in 
bare shaft configurations. In this NODA, in order to establish the FEP 
of a fan considered in the analysis, DOE retained this approach and 
used the default values and calculation algorithms for bare shaft fans 
as recommended by the Working Group. The engineering analysis and 
conversion cost spreadsheet presents the detailed equations and default 
values used to calculate the FEP of a given fan model in a bare shaft 
configuration. In addition, based on the Working Group recommendation, 
the spreadsheet includes default values and calculation algorithms for 
other fan configurations such as fans with dynamic continuous controls. 
(No. 179, Recommendation #12-16 at pp. 7-9)
    After the publication of the December 2014 NODA, Morrison and AHRI 
commented that the operating hours seemed high but did not provide 
quantified estimates. (Morrison, No. 51 at p. 8; AHRI, No. 53 at p. 13) 
In the December 2014 and May 2015 NODAs, DOE used industrial plant 
assessment and Energy Plus building simulation data to estimate fan 
operating hours, which averaged around 6,500 hours per year.\18\ In 
this NODA, DOE retained the same assumption for the operating hours of 
standalone fans and developed specific operating hours for embedded 
fans based on HVAC fan operating hours data which averaged 2,725 hours 
per year.\19\
---------------------------------------------------------------------------

    \18\ Database of motor nameplate and field measurement data 
compiled by the Washington State University Extension Energy Program 
(WSU) and Applied Proactive Technologies (APT) under contract with 
the New York State Energy Research and Development Authority 
(NYSERDA) (2011); Strategic Energy Group (Jan. 2008), Northwest 
Industrial Motor Database Summary from Regional Technical Forum. 
Retrieved March 5, 2013 from http://rtf.nwcouncil.org/subcommittees/osumotor/Default.htm; U.S. Department of Energy, Energy Efficiency 
and Renewable Energy, Building Technologies Office, EnergyPlus 
Energy Simulation Software (Aug. 2014). Available at http://apps1.eere.energy.gov/buildings/energyplus.
    \19\ Arthur D. Little, Inc. ``Opportunities for Energy Savings 
in the Residential and Commercial Sectors with High-Efficiency 
Electric Motors (Final Report),'' (Dec. 1999); U.S. Department of 
Energy-Office of Energy Efficiency and Renewable Energy. Energy 
Conservation Program for Certain Industrial Equipment: Energy 
Conservation Standards for Water-Cooled and Evaporatively-Cooled 
Commercial Packaged Air-Conditioning and Heating Equipment. Final 
Rule Technical Support Document, Chapter 4 Energy Use 
Characterization (2012). Available at http://www.regulations.gov/document?D=EERE-2011-BT-STD-0029-0039; 1 U.S. Department of Energy-
Office of Energy Efficiency and Renewable Energy. Energy 
Conservation Program for Certain Industrial Equipment: Energy 
Conservation Standards for Small, Large, and Very Large Commercial 
Package Air Conditioning and Heating Equipment. NOPR Technical 
Support Document, Chapter 7 Energy Use Analysis (2014). Available at 
http://www.regulations.gov/document?D=EERE-2013-BT-STD-0007-0027.
---------------------------------------------------------------------------

    DOE seeks feedback and inputs on fan operating hours.
    In the December 2014 NODA and the May 2015 NODA, DOE assumed that 
all fans operated at full design flow and pressure when performing the 
energy use calculation. AHRI noted that most fans in HVAC equipment do 
not run at full design speed but at 60 percent of full speed 
(equivalent to running at 60 percent of design flow). (AHRI, No. 129-1 
at p. 2) AHRI additionally provided input on the typical fan load 
profiles in VAV systems. (AHRI, No. 53 at p. 13) ACME commented that, 
50 percent of the time, the actual operating point of a fan is not 
equal to the design point selection of the fan and has a higher 
pressure value. ACME added that in some situations, the design point of 
the fan is not known and the actual operating point of a fan may fall 
in a region of operation where the fan has a

[[Page 75752]]

poor efficiency. ACME estimated that this could happen at least 30 
percent of the time. In addition, ACME commented that the energy use 
analysis should account for fans operating in variable air volume (VAV) 
systems, for which the actual fan operating point is different than the 
design point. ACME believes that accounting for these situations would 
reduce the energy savings as calculated in the May 2015 NODA. (ACME, 
No. 149 at pp. 1-2) For industrial fans, AcoustiFLO stated that most 
fans operate at their design point. (AcoustiFLO, Public Meeting 
Transcript, No. 85 at p. 193)
    Based on these comments and stakeholder feedback received during 
negotiations DOE revised its December 2014 and May 2015 NODA analyses 
to account for part load operation. For the commercial sector, DOE 
assumed that 80 percent of the fans operated at an airflow that 
differed from the design flow at least some of the time. DOE based the 
80 percent value on results from the EnergyPlus building energy use 
simulation software \20\ that indicated that 80 percent of fans in the 
commercial sector operate along a variable load profile. To reflect 
this, DOE developed variable load profiles for 80 percent of the 
commercial fans based on the information provided by AHRI and the 
EnergyPlus building energy use simulation. In the case of the 
industrial sector, in line with the inputs from the stakeholders, DOE 
assumed about a third of the fans operated outside of the design flow 
(30 percent). The load profiles are presented in the ``Sectors and 
Applications'' worksheet of the LCC spreadsheet.
---------------------------------------------------------------------------

    \20\ The EnergyPlus building energy use simulation software is 
available at http://apps1.eere.energy.gov/buildings/energyplus/.
---------------------------------------------------------------------------

    DOE seeks feedback and inputs on the fan load profiles used in the 
energy use calculation and on the percentage of fans used in variable 
load applications.
    In the December 2014 NODA and the May 2015 NODA, DOE estimated the 
average fan lifetime for standalone fans to be 30 years. AHRI commented 
that the lifetimes seemed high but did not provide quantified 
estimates. Morrison commented that the lifetimes seemed high and that 
fans used in HVAC typically have 12-15 year lifetimes. (AHRI, No. 53 at 
p. 5, Morrison, No. 51 at p. 8) In this NODA, DOE revised the fan 
lifetimes to account for the fact that fans in HVACR application may 
have shorter lifetimes. In line with Morrison's comment, DOE used an 
average embedded fan lifetime of 17 years based on estimates of HVACR 
equipment lifetimes, but maintained an average lifetime of 30 years for 
other fans.\21\ The LCC spreadsheet includes more details on the fan 
lifetime estimates and includes a sensitivity scenario that provides 
results for an average embedded fan lifetime of 15 years.\22\
---------------------------------------------------------------------------

    \21\ Roth, Kurt, Detlef Westphalen, John Dieckmann, Sephir 
Hamilton, and William Goetzler. ``Energy Consumption Characteristics 
of Commercial Building HVAC Systems Volume III: Energy Savings 
Potential.'' National Technical Information Service (NTIS): U.S. 
Department of Commerce (July 2002). Available at http://apps1.eere.energy.gov/buildings/publications/pdfs/commercial_initiative/hvac_volume3_final_report.pdf.
    U.S. Department of Energy-Office of Energy Efficiency and 
Renewable Energy. Energy Conservation Program for Certain Industrial 
Equipment: Energy Conservation Standards for Small, Large, and Very 
Large Commercial Package Air Conditioning and Heating Equipment. 
Life-Cycle Cost Spreadsheet (NOPR) (2014). Available at http://www.regulations.gov/docket?D=EERE-2013-BT-STD-0007.
    \22\ The sensitivity scenario used a mechanical lifetime of 
45,000 hours based on typical annual operating hours of 3000 hours 
and a lifetime in years of 15. The lifetimes calculates in the LCC 
may lead to different lifetimes in years due to the variability in 
applications and associated annual operating hours (i.e., fans 
operating fewer annual hours may have a longer lifetime).
---------------------------------------------------------------------------

    DOE seeks feedback and inputs on fan lifetimes.

H. National Impact Analysis

    The NIA estimates the national energy savings (NES) and the net 
present value (NPV) of total consumer costs and savings expected to 
result from potential new standards at each EL. DOE calculated NES and 
NPV for each EL as the difference between a no-standards case forecast 
(without new standards) and the standards case forecast (with 
standards). Cumulative energy savings are the sum of the annual NES 
determined for the lifetime of all fans shipped during a 30-year 
analysis period assumed to start in 2022. Energy savings include the 
full-fuel cycle energy savings (i.e., the energy needed to extract, 
process, and deliver primary fuel sources such as coal and natural gas, 
and the conversion and distribution losses of generating electricity 
from those fuel sources). The NPV is the sum over time of the 
discounted net savings each year, which consists of the difference 
between total energy cost savings and increases in total equipment 
costs. NPV results are reported for discount rates of 3 and 7 percent.
    To calculate the NES and NPV, DOE projected future shipments and 
efficiency distributions (for each EL) for each potential fan equipment 
class. DOE recognizes the uncertainty in projecting shipments and 
electricity prices; as a result, the NIA includes several different 
scenarios for each. Other inputs to the NIA include the estimated fan 
lifetime used in the LCC analysis, fan price, average annual energy 
consumption, and efficiency distributions from the LCC.
IV. Issues on Which DOE Seeks Public Comment
    DOE is interested in receiving comment on all aspects of this 
analysis. DOE is particularly interested in receiving comments and 
views of interested parties concerning the following issues:
    1. DOE requests feedback on the calculation of the 
FEPSTD and FEI.
    2. DOE seeks comments on the equipment classes used in this notice.
    3. DOE seeks information on whether there are specific sizes or 
operating points where forward curved fans would no longer be available 
at efficiency levels up to EL 5.
    4. DOE seeks comments on the use a compliance date of five years 
after the publication of the final rule.
    5. DOE requests information on the per-model (i.e., a single size 
fan within a fan series) redesign costs presented in the engineering 
analysis and conversion cost spreadsheet.
    6. DOE requests information on the number of models that are 
currently in the scope of the rulemaking nationally.
    7. DOE requests feedback on the quantity of redesigns, methodology, 
and results used to calculate the total industry conversion costs by 
equipment class and EL, as presented in the engineering analysis and 
conversion cost spreadsheet.
    8. DOE requests information on the extent to which product 
conversion costs and/or capital conversion costs are shared among sizes 
in a fan series.
    9. DOE requests information on the extent to which product 
conversion costs and/or capital conversion costs are shared between 
belt and direct drive fans with the same aerodynamic design.
    10. DOE requests information on the extent to which product 
conversion costs and/or capital conversion costs are shared between 
fans of different construction classes of the same aerodynamic design.
    11. DOE requests information on the portion of equipment with 
embedded fans that would require heat testing for certification with 
any new energy conservation standards.
    12. DOE requests feedback on the number of embedded fans that would 
require redesign presented in the engineering analysis and conversion 
costs spreadsheet.
    13. DOE seeks feedback and input on the 2012 standalone fan and 
embedded fan shipments values, by equipment class and subcategory. 
Specifically, DOE

[[Page 75753]]

requests feedback on: (1) The estimated number of fans per HVACR 
equipment; (2) the distribution of HVACR fans across fan subcategory by 
fan application; and (3) the share of standalone fans purchased and 
incorporated in HVACR equipment.
    14. DOE seeks feedback and input on the distribution of fan 
selections by power bin and subcategory for standalone fans and 
embedded fans as presented in the ``LCC sample Description'' worksheet 
of the LCC spreadsheet.
    15. DOE seeks feedback and inputs on the fan operating hours.
    16. DOE seeks feedback and inputs on the fan load profiles used in 
the energy use calculation and on the percentage of fans used in 
variable load applications.
    17. DOE seeks feedback and inputs on the fan lifetimes.
    The purpose of this NODA is to notify industry, manufacturers, 
consumer groups, efficiency advocates, government agencies, and other 
stakeholders of the publication of an analysis of potential energy 
conservation standards for commercial and industrial fans and blowers. 
Stakeholders should contact DOE for any additional information 
pertaining to the analyses performed for this NODA.

    Issued in Washington, DC, on October 19, 2016.
Kathleen B. Hogan,
Deputy Assistant Secretary for Energy Efficiency, Energy Efficiency and 
Renewable Energy.
[FR Doc. 2016-26341 Filed 10-31-16; 8:45 am]
 BILLING CODE 6450-01-P