[Federal Register Volume 81, Number 220 (Tuesday, November 15, 2016)]
[Rules and Regulations]
[Pages 79991-79998]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-26693]



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  Federal Register / Vol. 81, No. 220 / Tuesday, November 15, 2016 / 
Rules and Regulations  

[[Page 79991]]



DEPARTMENT OF ENERGY

10 CFR Part 431

[Docket No. EERE-2012-BT-DET-0033]
RIN 1904-AC83


Energy Conservation Program for Consumer Products and Certain 
Commercial and Industrial Equipment: Final Determination of Compressors 
as Covered Equipment

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

ACTION: Final rule.

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SUMMARY: The U.S. Department of Energy (DOE) is classifying certain 
varieties of compressors as covered equipment under Part A-1 of Title 
III of the Energy Policy and Conservation Act (EPCA), as amended. 
Accordingly, this document establishes the definition of equipment that 
are considered compressors.

DATES: This rule is effective December 15, 2016.

ADDRESSES: This rulemaking can be identified by docket number EERE-
2012-BT-DET-0033 and/or Regulatory Information Numbers (RIN) 1904-AC83.
    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: https://www.regulations.gov/docket?D=EERE-2012-BT-DET-0033. The 
www.regulations.gov Web page contains simple instructions on how to 
access all documents, including public comments, in the docket.
    For further information on how to review the docket, contact the 
Appliance and Equipment Standards Program staff at (202) 586-6636 or by 
email: [email protected].

FOR FURTHER INFORMATION CONTACT:
    James Raba, 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) 
586-8654. Email: [email protected].
    Mary Greene, U.S. Department of Energy, Office of the General 
Counsel, GC-33, 1000 Independence Avenue SW., Washington, DC 20585-
0121. Telephone: (202) 586-1817. Email: [email protected].

SUPPLEMENTARY INFORMATION:

Table of Contents

I. Statutory Authority
II. Current Rulemaking Process
III. Covered Equipment
    A. Compressors in Covered Products
    B. Pressure Ratio
    C. Equipment Configuration
    D. Electrical Connection Method
    E. Non-Electric Compressors
    F. Variety of Equipment Covered
    G. Federal Preemption
    H. Conclusion
IV. Evaluation of Compressors as a Covered Equipment
    A. Energy Consumption in Operation
    B. Distribution in Commerce
    C. Prior Inclusion as a Covered Product
    D. Coverage Necessary To Carry Out Purposes of Part A-1 of the 
Energy Policy and Conservation Act
V. Procedural Issues and Regulatory Review
    A. Review Under Executive Order 12866
    B. Review Under the Regulatory Flexibility Act
    C. Review Under the Paperwork Reduction Act of 1995
    D. Review Under the National Environmental Policy Act of 1969
    E. Review Under Executive Order 13132
    F. Review Under Executive Order 12988
    G. Review Under the Unfunded Mandates Reform Act of 1995
    H. Review Under the Treasury and General Government 
Appropriations Act of 1999
    I. Review Under Executive Order 12630
    J. Review Under the Treasury and General Government 
Appropriations Act of 2001
    K. Review Under Executive Order 13211
    L. Congressional Notification
    M. Review Under the Information Quality Bulletin for Peer Review
VI. Approval of the Office of the Secretary

I. Statutory Authority

    Title III of the Energy Policy and Conservation Act of 1975, as 
amended (``EPCA'' or, in context, ``the Act''), sets forth a variety of 
provisions designed to improve energy efficiency. (42 U.S.C. 6291, et 
seq.) Part C of Title III, which for editorial reasons was re-
designated as Part A-1 upon incorporation into the U.S. Code (42 U.S.C. 
6311-6317), establishes the ``Energy Conservation Program for Certain 
Industrial Equipment.'' The purpose of Part A-1 is to improve the 
efficiency of electric motors and pumps and certain other industrial 
equipment in order to conserve the energy resources of the Nation. (42 
U.S.C 6312(a))
    EPCA provides that DOE may include a type of industrial equipment, 
including compressors, as covered equipment if it determines that to do 
so is necessary to carry out the purposes of Part A-1. (42 U.S.C. 
6311(2)(B)(i) and 6312(b)). Industrial equipment, including 
compressors, must be of a type that consumes, or is designed to 
consume, energy in operation; is distributed in commerce for industrial 
or commercial use; and is not a covered product as defined in 42 U.S.C. 
6291(a)(2) of EPCA. (42 U.S.C. 6311 (2)(A)). DOE has determined that 
compressors, the definition of which DOE is adding to subpart T of 10 
CFR 431 and discusses in this rule, meet the statutory requirements 
under 42 U.S.C. 6311(2)(B)(i) and 6312(b) and is classifying them as 
covered equipment.
    Separately, DOE is conducting rulemakings to consider test 
procedures, and energy conservation standards for compressors. Pursuant 
to EPCA, any new or amended energy conservation standard for 
compressors 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 6316(a)). Furthermore, the new 
or amended standard must result in a significant conservation of 
energy. (42 U.S.C. 6295(o)(3)(B) and 6316(a)). DOE will determine if 
compressors satisfy these provisions during the course of the energy 
conservation standards rulemaking.

[[Page 79992]]

II. Current Rulemaking Process

    On December 31, 2012 (77 FR 76972), DOE issued a Proposed 
Determination of Coverage (2012 NOPD) that proposed to determine that 
compressors qualify as covered equipment under part A-1 of Title III of 
EPCA, as amended (42 U.S.C. 6311 et seq). DOE proposed that coverage 
was necessary for the purposes of Part A-1 because (1) DOE may only 
prescribe energy conservation standards for covered equipment; and (2) 
energy conservation standards for compressors would improve the 
efficiency of such equipment more than would be likely to occur in the 
absence of standards. The 2012 NOPD tentatively determined adoption of 
energy conservation standards for compressors likely would satisfy the 
provisions of 42 U.S.C. 6311(2)(B)(i). On February 7, 2013 (78 FR 
8998), DOE published a notice reopening the comment period on the 2012 
NOPD.
    On February 5, 2014 (79 FR 6839), DOE published a notice of public 
meeting and provided a framework document that addressed potential 
standards and test procedures rulemakings for compressors. DOE held a 
public meeting to discuss the framework document on April 1, 2014. At 
this meeting, DOE discussed and received comments on the framework 
document, which covered the analytical framework, models, and tools 
that DOE used to evaluate potential standards; and all other issues 
raised relevant to the development of energy conservation standards for 
the different categories of compressors. On March 18, 2014 (79 FR 
15061), DOE extended the comment period.
    On May 5, 2016 (81 FR 27219), DOE issued a notice of proposed 
rulemaking (NOPR) to propose a definition for the term ``compressor'' 
and to propose test procedures for certain compressors (hereafter, the 
``test procedure NOPR''). On May 19, 2016 (81 FR 31680), DOE issued a 
NOPR to propose energy conservation standards for certain varieties of 
compressors (hereafter, the ``energy conservation standards NOPR''). On 
June 20, 2016, DOE held a public meeting to discuss the test procedure 
and energy conservation standards NOPRs and to accept comments from 
interested parties.
    In this final rule, DOE responds to the seven comments received 
from interested parties in response to the 2012 NOPD. DOE notes that 
certain comments received in response to the 2012 NOPD discussed topics 
such as: Technology options to improve the efficiency of compressors, 
scope of potential energy conservations standards, and test methods for 
compressors, among other comments. These comments relate to the ongoing 
test procedure and/or energy conservation standards rulemakings and 
are, or will, be addressed in those rulemakings, as applicable. In this 
document, DOE also responds to certain comments that were submitted in 
response to the test procedure NOPR and pertain to the definition of 
``compressor.''
    In this document, DOE addresses comments submitted by the 
following: The Air-Conditioning, Heating, and Refrigeration Institute 
(AHRI); American Council for an Energy-Efficient Economy (ACEEE); 
Appliance Standards Awareness Project (ASAP); Alliance to Save Energy 
(ASE); Atlas Copco AB (Atlas Copco); the Compressed Air & Gas Institute 
(CAGI); Compressed Air Systems; the Edison Electric Institute (EEI); 
Ingersoll Rand; Kaeser Compressors; the National Rural Electric 
Cooperative Association (NRECA); the Northwest Energy Efficiency 
Alliance (NEEA); the Northeast Energy Efficiency Partnerships (NEEP); 
the National Resources Defense Council (NRDC); the Pacific Gas and 
Electric Company (PG&E), San Diego Gas and Electric (SDG&E), Southern 
California Edison (SCE), and Southern California Gas Company (SCGC), 
collectively referred to as the California Investor Owned Utilities (CA 
IOUs); Scales Industrial Technologies; Sullair; Saylor-Beall 
Manufacturing Company and Sullivan-Palatek, collectively referred to as 
Sullivan-Palatek.
    DOE will identify comments received in response to the test 
procedure NOPR by the number of the docket maintained at 
www.regulations.gov (Docket No. EERE-2014-BT-TP-0054), the commenter, 
the number of document as listed in that docket, and the page number of 
that document where the comment appears (for example: EERE-2014-BT-TP-
0054, CAGI, No. 0010 at p. 3CAGI, No. 10 at p. 4). DOE will identify 
comments received in response to the energy conservation standards NOPR 
by the commenter, the number of document as listed in the docket 
maintained at www.regulations.gov (Docket No. EERE-2013-BT-STD-0040), 
and the page number of that document where the comment appears. DOE 
will cite comments in this rule's docket (EERE-2012-BT-DET-0033) solely 
using the commenter name, commenter number, and page number, without a 
docket reference.

III. Covered Equipment

    ``Compressor'' is not an existing defined term under EPCA. In the 
2012 NOPD, DOE tentatively determined to add compressors as a type of 
covered equipment and proposed a definition for ``compressor.'' 77 FR 
76972, 76973 (Dec 31, 2012). Specifically, DOE proposed to define 
compressor as an electric-powered device that takes in air or gas at 
atmospheric pressure and delivers the air or gas at a higher pressure. 
DOE also clarified that compressors typically have a specific ratio, 
the ratio of delivery pressure to supply pressure, greater than 1.20 
and compressors are classified as positive-displacement, dynamic, or 
hybrid. 77 FR 76972, 76973-76974 (Dec 31, 2012). Finally, DOE noted 
that compressors may have pistons, rollers, rotors, impeller wheels, 
spiral disks, cylinders, lubricant, motors and transmissions, controls, 
treatment equipment, filters, and/or a lubricant/air separators. 77 FR 
76972, 76974 (Dec 31, 2012). In the 2016 test procedure NOPR, after 
considering comments in response to the February 5, 2014 framework 
document (79 FR 6839), DOE proposed revisions to its initial proposed 
``of a compressor''. Specifically, DOE proposed that a compressor means 
a machine or apparatus that converts different types of energy into the 
potential energy of gas pressure for displacement and compression of 
gaseous media to any higher pressure values above atmospheric pressure 
and has a pressure ratio greater than 1.3. 81 FR 27220, 27224 (May 5, 
2016)
    Several parties commented in response to the definition of 
``compressor'' considered in the 2012 NOPD and proposed in the 2016 
test procedure NOPR (and its associated public meeting). These comments 
are discussed by topic, in the sections that follow.

A. Compressors in Covered Products

    In response to the 2012 NOPD, AHRI stated that DOE's proposed 
definition of ``compressor'' may unintentionally include some products 
as covered equipment. Specifically AHRI was concerned that heating, 
ventilating, air conditioning, and refrigeration (HVACR) equipment may 
meet the proposed definition, and suggested that DOE include a 
statement to exclude them. (AHRI, No. 0002 at pp. 1-2) AHRI stated that 
the energy consumption of HVACR compressors is already accounted for in 
the efficiency ratings for regulated HVACR equipment, which means that 
covering those compressors under separate regulations would lead to 
unwarranted double regulation on

[[Page 79993]]

HVACR products. (AHRI, No. 0002 at p. 2).
    EEI commented that certain electric motors sized under 500 
horsepower (which are used on certain compressors), are already subject 
to DOE energy conservation standards, and DOE should take this into 
consideration in any future energy conservation standards, in order to 
avoid duplicative regulation of these motors. (EEI, No. 0009 at p. 4)
    This final rule establishes a definition for ``compressors'' and 
classifies them as covered equipment under EPCA; it does not establish 
scope for any potential energy conservation standards. As such, AHRI's 
comment that compressors in HVACR systems and EEI comments regarding 
motors should be excluded from regulation will be addressed in the 
ongoing energy conservation standards rulemaking.

B. Pressure Ratio

    In response to the 2016 test procedure NOPR, Atlas Copco commented 
that DOE should harmonize with international precedent to aid 
manufacturers in exporting their products, and reduce the minimum 
pressure ratio from 1.3 to 1.1, as is stated in European Union (EU) Lot 
31 draft standard.\1\ (EERE-2014-BT-TP-0054, Atlas Copco, No. 0009 at 
p. 11).
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    \1\ The EU Lot 31 draft standard is available at: http://www.regulations.gov/contentStreamer?documentId=EERE-2013-BT-STD-0040-0031&disposition=attachment&contentType=pdf.
---------------------------------------------------------------------------

    In response to Atlas Copco, DOE reiterates that it proposed a 
lower-bound pressure ratio of 1.3 to align the coverage determination 
of compressors with the coverage determination being considered in the 
fans and blowers rulemaking, with the intent that DOE regulations do 
not leave any gaps in coverage. 81 FR 27220, 27224 (May 5, 2016). DOE 
further reiterates that an Appliance Standards Rulemaking Advisory 
Committee (ASRAC) Working Group was established to negotiate proposed 
energy conservation standards for fans and blowers and this group 
discussed and came to general agreement on a maximum fan energy limit 
of 25 kJ/kg, which translates approximately to a 1.3 pressure ratio, as 
the appropriate cutoff to distinguish between fans and compressors. 
(EERE-2014-BT-TP-0054, Docket No. EERE-2013-BT-STD-0006; EERE-2014-BT-
TP-0054, Public Meeting, No. 84 at p. 11) and 81 FR 27220, 27224 (May 
5, 2016). If, through the fans and blowers rulemaking, DOE establishes 
coverage for equipment that incorporates a maximum1.3 pressure ratio 
limit, DOE would have the authority to establish test procedures and 
energy conservation standards for equipment with pressure ratios 
between 1.1 and 1.3, under the coverage of fans and blowers, rather 
than compressors. (see: Docket No. EERE-2013-BT-STD-0006). 
Alternatively, incorporating a minimum 1.1 pressure ratio into the 
definition of ``compressor'' would result in an overlap in coverage 
with fans and blowers, and create confusion in the market.
    Additionally, incorporating a definition for ``compressor'' as 
covered equipment by itself has no material impact on manufacturers. 
Rather, a decision by DOE to establish test procedures and/or energy 
conservation standards for certain compressors could materially impact 
manufacturers and trade. As such, DOE's decision to establish coverage 
for compressors based on a minimum pressure ratio of 1.3 has no impact 
on manufacturing or exporting, as claimed by Atlas Copco.
    In response to the 2012 NOPD, CAGI commented that the 1.2 
compression ratio proposed by DOE is too low. CAGI suggested a 
compression ratio of 2.5 instead. CAGI noted that what are referred to 
as ``low-pressure blowers'' can reach pressure ratios below 2.5, but 
are not generally viewed as compressors. CAGI also stated that a 
compression ratio of 1.2 may result in the inclusion of blowers for 
hand drying and vending machine compressors. (CAGI, No. 0003 at pp. 6-
7) Both Ingersoll Rand and Kaeser Compressors supported CAGI's 
recommendation to use a pressure ratio of 2.5 instead of 1.2. (Kaeser 
Compressors, No. 0007 at p. 1; Ingersoll Rand, No. 0004 at pp. 1-2). 
However, DOE notes that, in response to the 2016 test procedure NOPR, 
CAGI and Ingersoll Rand updated their opinions and provided support for 
the definition of ``compressor,'' with a 1.3 minimum pressure ratio, as 
proposed by DOE in the test procedure NOPR. (EERE-2014-BT-TP-0054, 
CAGI, No. 0010 at p. 3; EERE-2014-BT-TP-0054, Ingersoll Rand, No. 0011 
at p. 1; EERE-2014-BT-TP-0054, Sullair, No. 0006 at p. 1) Kaeser 
Compressors provided no updated comments related minimum pressure 
ratio, in response to the 2016 test procedure NOPR.
    In response to the 2016 test procedure NOPR, Scales Industrial 
Technologies commented that the term ``compressor'' was historically 
used for equipment with pressure values above 18-25 psig, corresponding 
to pressure ratios of 2.2-2.7, and that equipment with pressure values 
below this range were referred to as ``blowers.'' (EERE-2014-BT-TP-
0054, Scales Industrial Technologies, No. 0013, at p. 3)
    In response to Kaeser Compressors and Scales Industrial 
Technologies, DOE acknowledges that lower pressure compressors are 
often termed ``blowers'' in industry. However, significant industry 
precedent exists that classifies blowers (and other lower pressure 
ratio machines) as sub-varieties of compressors. Specifically, in the 
test procedure NOPR, DOE noted that the International Organization for 
Standardization (ISO) Technical Report 12942:2012, ``Compressors--
Classification--Complementary information to ISO 5390,'' (ISO/TR 
12942:2012) defines ``compressor'' as a machine or apparatus converting 
different types of energy into the potential energy of gas pressure for 
displacement and compression of gaseous media to any higher pressure 
values above atmospheric pressure with pressure-increase ratios 
exceeding 1.1. 81 FR 27219, 27223 (May 5, 2016). Additionally, the 
European Union (EU) Lot 31 draft standard,\2\ as previously discussed 
by Atlas Copco, also defines ``compressor'' using a minimum pressure 
ratio of 1.1.\3\ Technically, any machine with a pressure ratio of 
greater than 1.0 could meet the first clause of the proposed definition 
for ``compressor''. In other words, it can convert different types of 
energy into the potential energy of gas pressure for displacement and 
compression of gaseous media to any higher pressure values above 
atmospheric pressure. Given the precedent established by ISO/TR 
12942:2012 and the EU Lot 31 draft standard, DOE believes that 1.1 is 
the minimum pressure ratio used in the industry to describe 
compressors. Consequently, a machine that converts different types of 
energy into the potential energy of gas pressure for displacement and 
compression of gaseous media to any higher pressure values above 
atmospheric pressure and has a pressure ratio of 1.3 would technically 
be considered a compressor by the compressor industry.
---------------------------------------------------------------------------

    \2\ The EU Lot 31 draft standard is available at: http://www.regulations.gov/contentStreamer?documentId=EERE-2013-BT-STD-0040-0031&disposition=attachment&contentType=pdf.
    \3\ As discussed in the previous paragraph, DOE is adopting a 
minimum pressure ratio of 1.3, rather than 1.1, in order to align 
with the fans and blowers rule.
---------------------------------------------------------------------------

    Finally, DOE notes that the CA IOUs, CAGI, Sullivan-Palatek, 
Ingersoll Rand, and Sullair all support the definition of 
``compressor'' with a 1.3 minimum pressure ratio, as proposed in the 
test procedure NOPR. (EERE-2014-BT-TP-0054, CA IOUs, No. 0012 at p. 3; 
EERE-

[[Page 79994]]

2014-BT-TP-0054, CAGI, No. 0010 at p. 3; EERE-2014-BT-TP-0054, 
Sullivan-Palatek, No. 0007 at p. 1; EERE-2014-BT-TP-0054, Ingersoll 
Rand, No. 0011 at p. 1; EERE-2014-BT-TP-0054, Sullair, No. 0006 at p. 
1). For these reasons, DOE reaffirms its conclusion that a minimum 
pressure ratio of 1.3 is appropriate for use in the definition of 
``compressor.''

C. Equipment Configuration

    In response to the 2012 NOPD, Ingersoll Rand made two 
recommendations regarding which components should be included in the 
definition of ``compressor.'' First, Ingersoll Rand suggested that 
``compressor'' should be defined to include ``onboard'' controls that 
are integrated into the compressor package and solely for the operation 
of the compressor package to which they are mounted. (Ingersoll Rand, 
No. 0004 at p. 2).
    Second, Ingersoll Rand suggested that ``compressor'' should be 
defined to include filters and treatment equipment that are integral 
and necessary to operate the compressor, such as oil coolers, 
aftercoolers, and filters, and deliver a certain quality of compressed 
air. (Ingersoll Rand, No. 0004 at p. 2).
    In response, this final rule establishes a definition for 
``compressors'' and classifies them as covered equipment under EPCA; it 
does not establish scope for any potential energy conservation 
standards. To that end, DOE notes that the definition of ``compressor'' 
adopted in this final rule (see section III.H), is broad and does not 
exclude the components recommended by Ingersoll Rand. However, DOE 
notes that it may limit the applicability of any test procedures and 
energy conservations standards it chooses to pursue in the future to 
address the (components/controls) identified by Ingersoll Rand.

D. Electrical Connection Method

    In response to the 2012 NOPD, CAGI commented that the definition of 
``compressor'' should not apply to compressors that are connected 
through a wall outlet using a plug connection. CAGI explained that 
these compressors generally have intermittent usage patterns, are 
small, and are not designed for continuous duty and, therefore, do not 
represent significant energy use. (CAGI, No. 0003 at p. 7)
    DOE recognizes the benefits of focusing on compressors likely to 
account for significant energy use for the purposes of setting 
regulatory requirements. However, DOE notes that compressors can be 
modified to add or remove electrical plugs, without great cost or 
difficulty, by a party aiming to circumvent standards. Additionally, 
for certain compressor sizes (i.e., smaller horsepower), the presence 
of a plug has no bearing on end user utility, as plugs can be added or 
removed at a nominal cost to the end user. Therefore, many compressors 
with and without plugs may serve the same markets and applications and 
should be treated similarly.
    Finally, DOE prefers to use attributes more native to a compressor 
(e.g., pressure ratios) to delineate, where needed, which compressors 
may fall within the coverage determination. As a result, DOE is 
declining CAGI's recommendation to remove from the coverage 
determination those compressors that are connected through a wall 
outlet using a plug connection.

E. Non-Electric Compressors

    In response to the 2012 NOPD, EEI commented that DOE should use a 
definition that applies to non-electric in addition to electric 
compressors, arguing that limiting the definition to electric 
compressors would be inconsistent with DOE's other recent actions for 
similar products, and equipment such as pumps and fans, and would be 
inconsistent with the intent of EPCA. (EEI, No. 0009, at p. 2) NRECA 
also commented that any compressor definition should be fuel-neutral. 
(NRECA, No. 0008, at p. 2) EEI also noted that DOE provided no 
rationale supporting the exclusion of non-electric compressors, and 
that there are significant numbers of fossil fuel-driven compressors 
operating in the United States. (EEI, No. 0009, at p. 5)
    Further, in response to the 2012 NOPD, EEI stated that excluding 
non-electric compressors carries the potential to distort markets--
presumably by incentivizing end users to substitute unregulated 
compressors. (EEI, No. 0009, at p. 7) NRECA also commented that an 
electric-only compressor definition could encourage fuel-switching to 
non-electric compressors and not result in economic or energy savings. 
(NRECA, No. 0008, at p. 2)
    In response to EEI's and NRECA's argument not to limit the 
definition of ``compressor'' to electric compressors, DOE notes that it 
is adopting a fuel-neutral definition of ``compressor.''

F. Variety of Equipment Covered

    In response to the 2016 test procedure NOPR, Compressed Air Systems 
commented that the term ``compressor'' may unintentionally include 
other equipment, such as refrigerators, air conditioners, bellows, hand 
air pumps, or turbochargers, and suggested a more narrow definition of 
the term that would encompass just the products intended for 
regulation. (EERE-2014-BT-TP-0054, Compressed Air Systems, No. 0008 at 
p. 1).
    In response, DOE notes that the definition of ``compressor,'' as 
proposed in the test procedure NOPR, does not specifically include or 
exclude compressors installed as components of other covered products 
or equipment such as refrigerators and air conditioners. Nonetheless, 
it may apply to subcomponents of such equipment. Further, if equipment 
commonly referred to as bellows, hand air pumps, or turbochargers meets 
the definition of ``compressor,'' as proposed in the test procedure 
NOPR and adopted in this document, such equipment would fall within the 
coverage determination for compressors. However, DOE will determine 
appropriate scope(s) of applicability for future test procedure and 
energy conservation standards rulemakings based on the particular 
circumstances of the market.

G. Federal Preemption

    In response to DOE's May 19, 2016 energy conversation standards 
NOPR (81 FR 31680), the CA IOUs, ASAP, ACEEE, NEEA, NRDC, NEEP, and ASE 
commented that if there are no energy conservation standards for 
reciprocating compressors, then reciprocating compressors should not be 
covered equipment in order to allow states to pursue standards. (EERE-
2013-BT-STD-0040, CA IOUs, No. 0059 at pp. 2-3; EERE-2013-BT-STD-0040, 
CA IOUs, Public Meeting Transcript, No. 0044 at p. 153; EERE-2013-BT-
STD-0040, ASAP, ACEEE, NEEA, NRDC, NEEP, ASE, No. 0060 at pp. 2-3)
    In this final rule, DOE is establishing a broad definition for 
``compressors;'' it is not establishing a definition for specific 
categories of compressors. DOE will define specific categories of 
compressors and the scope of applicability of test procedures and 
energy conservation standards in their respective rules. In turn, DOE 
is classifying compressors as covered equipment under EPCA because the 
agency concludes that commercial and industrial compressors qualify as 
covered equipment under part A-1 of Title III of EPCA, as amended. (42 
U.S.C. 6311 et seq.). Once DOE has classified equipment as covered, any 
State regulation concerning the energy use or energy efficiency of the 
covered product is preempted by Federal coverage. (42 U.S.C. 6297(b), 
6316(a)).

[[Page 79995]]

H. Conclusion

    Ultimately, for the reasons discussed in this section and 
established in the test procedure NOPR, DOE is adopting the definition 
of ``compressor,'' as proposed in the test procedure NOPR, with one 
minor modification in nomenclature. Specifically, DOE is replacing the 
term ``pressure ratio'' with ``pressure ratio at full-load operating 
pressure.''.
    DOE will develop specific methods to determine pressure ratio at 
full-load operating pressure as a part of a separate test procedure 
rulemaking process.\4\
---------------------------------------------------------------------------

    \4\ U.S. DOE--Energy Information Administration (2015), Annual 
Energy Outlook 2015, DOE/EIA-0383 (Available at: http://www.eia.gov/forecasts/archive/aeo15/pdf/0383(2015).pdf).
---------------------------------------------------------------------------

IV. Evaluation of Compressors as a Covered Equipment

    The following sections describe DOE's evaluation of whether 
compressors fulfill the criteria for being added as covered equipment 
pursuant to 42 U.S.C. 6311(2) and 42 U.S.C. 6312. Compressors are 
listed as a type of industrial equipment at 42 U.S.C. 6311(2)(B)(i). 
The following discussion addresses DOE's consideration of the three 
requirements of 42 U.S.C. 6311(2)(A) and 42 U.S.C. 6312.

A. Energy Consumption in Operation

    In the 2012 NOPD, DOE cited data from the 2002 United States 
Industrial Electric Motor Systems Market Opportunities Assessment, 
which estimated total annual industrial compressor energy use (from 
Manufacturing SIC codes 20-39) at 91,050 million kWh per year.\5\ DOE 
noted that, because industrial activity in 2012 is greater than it was 
in 2002, it was likely that annual compressor energy use was higher 
than this figure. 77 FR 76972, 76974 (Dec 31, 2012).
---------------------------------------------------------------------------

    \5\ U.S. Department of Commerce, Census Bureau, Manufacturing 
and Construction Division, Series MA333P(10)-1, Stationary Air 
Compressors, Reciprocating, Single and Double Acting (333912110T), 
2011.
---------------------------------------------------------------------------

    In response to DOE's NOPD conclusions, EEI commented that data 
referenced in the proposed determination of coverage was neither 
accurate nor current. EEI noted that although DOE asserted industrial 
activity in 2012 exceeded that of 2002, the amount of industrial 
electricity consumed and number of industrial customers in 2011 were 
lower than in 2003 and 2004, respectively. (EEI, No. 0009 at pp. 2-3).
    In its energy conservation standards NOPR, DOE revised the sources 
used to characterize the compressor market, DOE revised both initial 
shipments, (discussed in section IV.B) and industrial and commercial 
growth indicators. DOE projected future growth using Energy Information 
Administration's (EIA's) Annual Energy Outlook (AEO) Macroeconomic 
projections for the Value of Manufacturing Shipments, and Commercial 
Floor Space for industrial and commercial sectors, respectively.\4\ 
Based on the energy savings results discussed in section IV.D, DOE 
reaffirms its conclusion that compressors consume a significant amount 
of energy in the industrial and commercial sectors.

B. Distribution in Commerce

    In the 2012 NOPD, DOE tentatively concluded that compressors are 
distributed in commerce for both the industrial and commercial sectors. 
Specifically, DOE estimated that 1.3 million motors are shipped 
annually to drive compressors in the U.S. commercial and industrial 
sectors, based on the 2011 International Energy Agency (IEA) Survey. 
DOE also assumed that only a small fraction of these motors are used as 
a motor only replacement in compressor systems (based on additional 
2004 U.S. Census data); consequently, DOE estimated that nearly 1.3 
million compressors were distributed in commerce annually for 
industrial or commercial use. 77 FR 76972, 76974 (Dec 31, 2012).
    In response to DOE's NOPD conclusions, Ingersoll Rand commented 
that the estimate of annual compressor shipments provided by DOE is 
grossly inflated. (Ingersoll Rand, No. 0004 at p. 2) CAGI commented 
that DOE's estimates most likely incorporate compressors going into 
consumer applications, and if only commercial and industrial 
applications were counted, the number would be significantly lower. 
(CAGI, No. 0003 at p. 7) EEI recommended that DOE elaborate on how it 
derived the 1.3 million compressor shipment estimate, if DOE is to use 
it in in any future energy conservation standards analyses. (EEI, No. 
0009 at p. 3)
    In response to comments from Ingersoll Rand, CAGI, and EEI, DOE 
sought, and received, shipments data for rotary screw compressors from 
a number of manufacturer stakeholders and subject matter experts, which 
DOE published in its energy conservation standards NOPR. However, DOE 
was able to find only limited shipments data for reciprocating 
compressors, so DOE continued to use the data from the U.S. Census 
Bureau.\5\ DOE estimated in its energy conservation standards NOPR 
shipments analysis that 31 thousand rotary screw and 538 thousand 
reciprocating compressors were shipped to commercial and industrial 
sectors in 2013. (EERE-2013-BT-STD-0040-0037) Based on these revised 
shipments estimates, DOE reaffirms its conclusion that compressors are 
distributed in commerce to commercial and industrial sectors.

C. Prior Inclusion as a Covered Product

    Compressors are not currently included as covered products under 
Title 10 of the Code of Federal Regulations, part 430.

D. Coverage Necessary To Carry Out Purposes of Part A-1 of the Energy 
Policy and Conservation Act

    The purpose of part A-1 of EPCA is to improve the energy efficiency 
of electric motors, pumps and certain other industrial equipment to 
conserve the energy resources of the Nation. (42 U.S.C. 6312 (a)). In 
the 2012 NOPD, DOE proposed that coverage of compressors was necessary 
to carry out the purposes of part A-1 of EPCA because coverage will 
promote the conservation of energy resources. DOE concluded that 
efficiency standards that may result from coverage would help to 
capture some portion of the potential for improving the efficiency of 
compressors. 77 FR 76972, 76974 (Dec 31, 2012).
    In response to DOE's conclusion that efficiency standards that may 
result from coverage of compressors would help to capture some portion 
of the potential for improving the efficiency of compressors, CAGI 
commented that compressor designs are mature and compressor 
manufacturers have already incorporated the most efficient motor 
designs and technologies available in the market. CAGI believes that 
including compressors as covered equipment would inhibit investment in 
research and development because of the hurdles involved in approving 
new designs for the market. (CAGI, No. 0003 at p. 8) CAGI also argued 
that, due to variation in field applications that lead to changes in 
overall efficiency, regulation of compressor packages is an ineffective 
way to capture significant energy savings. CAGI suggested that, 
therefore, DOE exclude commercial and industrial compressors under Part 
A-1 of Title III of EPCA. (CAGI, No. 0003 at pp. 4-5)
    Kaeser Compressors commented that since manufacturers already 
publish test data at various load levels and that data is verified by a 
third-party and since annual energy costs are dependent on the dynamics 
of an individual system, Kaeser does not believe that including

[[Page 79996]]

compressors alone as covered equipment would be beneficial to carrying 
out the purposes of Part A-1 of EPCA. (Kaeser Compressors, No. 0007 at 
pp. 3)
    DOE published consumer saving for lubricated rotary screw, 
lubricant-free rotary screw, and reciprocating compressors in its 
energy conservation standard NOPR TSD.\6\ These equipment account for 
over 90 percent of compressors in the commercial and industrial sectors 
and are used in a wide variety of applications. While DOE did not 
propose an increase in efficiency above the baseline for lubricant-free 
rotary screw, or, new standards for reciprocating compressors, DOE's 
analysis found that there was energy, and consumer savings for these 
equipment at most efficiency levels. Further, DOE published national 
energy saving estimates for lubricated rotary screw compressors in its 
energy conservation standard NOPR. DOE estimated, at the proposed 
level, significant national energy savings of 0.18 quads.
---------------------------------------------------------------------------

    \6\ U.S. Department of Energy, Energy Efficiency and Renewable 
Energy Office (2015), NOPR Technical Support Document (TSD): Energy 
Efficiency Program for Consumer Products and Commercial and 
Industrial Equipment: Air Compressors (Available at: https://www.regulations.gov/document?D=EERE-2013-BT=STD-0040-0037).
---------------------------------------------------------------------------

    These estimated saving presented in the energy conservation 
standard TSD and NOPR are an indication that coverage will result in 
conservation of energy resources. While DOE proposed new energy 
conservation standards for a sub-set of compressor designs currently 
available in commerce, broadening of the energy conservations standards 
beyond lubricated rotary screw compressors will likely increase the 
amount of energy savings.
    Based on the preceding discussion, DOE reaffirms its conclusion 
that incorporating compressors as covered equipment is necessary to 
carry out the purposes of Part A-1 of EPCA, and that efficiency 
standards that may result from coverage would improve the efficiency of 
compressors and help to capture some portion of the potential for 
energy savings from this improved efficiency. Based on the information 
in sections IV.A, IV.B, and IV.C of this rule, DOE determines that 
commercial and industrial compressors qualify as covered equipment 
under part A-1 of Title III of EPCA, as amended (42 U.S.C. 6311 et 
seq.).

V. Procedural Issues and Regulatory Review

    DOE has reviewed this final rule, which determines coverage for 
compressors, under the following executive orders and acts.

A. Review Under Executive Order 12866

    The Office of Management and Budget (OMB) has determined that 
coverage determination rulemakings do not constitute ``significant 
regulatory actions'' under section 3(f) of Executive Order 12866, 
Regulatory Planning and Review, 58 FR 51735 (Oct. 4, 1993). 
Accordingly, this final action was not subject to review under the 
Executive Order by the Office of Information and Regulatory Affairs 
(OIRA) in the OMB.

B. Review Under the Regulatory Flexibility Act

    The Regulatory Flexibility Act (5 U.S.C. 601 et seq.), as amended 
by the Small Business Regulatory Enforcement Fairness Act of 1996) 
requires preparation of a regulatory flexibility analysis for any rule 
that, by law, must be proposed for public comment, unless the agency 
certifies that the rule, if promulgated, will not have a significant 
economic impact on a substantial number of small entities. A regulatory 
flexibility analysis examines the impact of the rule on small entities 
and considers alternative ways of reducing negative effects. Also, as 
required by E.O. 13272, ``Proper Consideration of Small Entities in 
Agency Rulemaking'' 67 FR 53461 (Aug. 16, 2002), DOE published 
procedures and policies on February 19, 2003 to ensure that the 
potential impact of its rules on small entities are properly considered 
during the DOE rulemaking process. 68 FR 7990 (Feb. 19, 2003). DOE 
makes its procedures and policies available on the Office of the 
General Counsel's Web site at www.gc.doe.gov.
    DOE reviewed this final rule under the provisions of the Regulatory 
Flexibility Act and the policies and procedures published on February 
19, 2003. This final rule sets no test procedures or standards; it only 
positively determines that compressors meet the criteria for 
classification as covered equipment and that future standards may be 
warranted to regulate their energy use. Economic impacts on small 
entities would be considered in the context of such rulemakings. On the 
basis of the foregoing, DOE certifies that the determination has no 
significant economic impact on a substantial number of small entities. 
Accordingly, DOE has not prepared a regulatory flexibility analysis for 
this final rule. DOE will transmit this certification and supporting 
statement of factual basis to the Chief Counsel for Advocacy of the 
Small Business Administration for review under 5 U.S.C. 605(b).

C. Review Under the Paperwork Reduction Act of 1995

    This final rule, which concludes that compressors meet the criteria 
for a covered product for which the Secretary may prescribe an energy 
conservation standard pursuant to 42 U.S.C. 6295(o) and (p), imposes no 
new information or record-keeping requirements. Accordingly, the OMB 
clearance is not required under the Paperwork Reduction Act. (44 U.S.C. 
3501 et seq.)

D. Review Under the National Environmental Policy Act of 1969

    In this document, DOE positively determines that compressors meet 
the criteria for classification as covered equipment and that future 
standards may be warranted to regulate their energy use. Should DOE 
pursue that option, the relevant environmental impacts would be 
explored as part of that rulemaking. As a result, DOE has determined 
that this action falls into a class of actions that are categorically 
excluded from review under the National Environmental Policy Act of 
1969 (42 U.S.C. 4321 et seq.) and DOE's implementing regulations at 10 
CFR part 1021. Specifically, this action establishes a class of 
equipment (compressors) for which energy conservation standards would 
be appropriate. However, this action does not establish energy 
conservation standards, and, therefore, does not result in any 
environmental impacts. Thus, this action is covered by Categorical 
Exclusion A6 ``Procedural rulemakings'' under 10 CFR part 1021, subpart 
D. Accordingly, neither an environmental assessment nor an 
environmental impact statement is required.

E. Review Under Executive Order 13132

    Executive Order (E.O.) 13132, ``Federalism'' 64 FR 43255 (Aug. 10, 
1999), imposes certain requirements on agencies formulating and 
implementing policies or regulations that preempt State law or that 
have Federalism implications. The Executive Order requires agencies to 
examine the constitutional and statutory authority supporting any 
action that would limit the policymaking discretion of the States and 
to assess carefully the necessity for such actions. The Executive Order 
also requires agencies to have an accountable process to ensure 
meaningful and timely input by State and local officials in developing 
regulatory policies that have Federalism implications. On March 14, 
2000 (65 FR 13735), DOE published a statement of policy describing the 
intergovernmental

[[Page 79997]]

consultation process that it will follow in developing such 
regulations. DOE has examined this final rule and concludes that it 
does not preempt State law or have substantial direct effects on the 
States, on the relationship between the Federal government and the 
States, or on the distribution of power and responsibilities among the 
various levels of government. EPCA governs and prescribes Federal 
preemption of State regulations as to energy conservation for the 
product that is the subject of this final rule. States can petition DOE 
for exemption from such preemption to the extent permitted, and based 
on criteria, set forth in EPCA. (42 U.S.C. 6297) No further action is 
required by E.O. 13132.

F. Review Under Executive Order 12988

    With respect to the review of existing regulations and the 
promulgation of new regulations, section 3(a) of E.O. 12988, ``Civil 
Justice Reform'' 61 FR 4729 (Feb. 7, 1996), imposes on Federal agencies 
the duty to: (1) Eliminate drafting errors and ambiguity; (2) write 
regulations to minimize litigation; (3) provide a clear legal standard 
for affected conduct rather than a general standard; and (4) promote 
simplification and burden reduction. Section 3(b) of E.O. 12988 
specifically requires that Executive agencies make every reasonable 
effort to ensure that the regulation specifies the following: (1) The 
preemptive effect, if any; (2) any effect on existing Federal law or 
regulation; (3) a clear legal standard for affected conduct while 
promoting simplification and burden reduction; (4) the retroactive 
effect, if any; (5) definitions of key terms; and (6) other important 
issues affecting clarity and general draftsmanship under any guidelines 
issued by the Attorney General. Section 3(c) of E.O. 12988 requires 
Executive agencies to review regulations in light of applicable 
standards in sections 3(a) and 3(b) to determine whether these 
standards are met, or whether it is unreasonable to meet one or more of 
them. DOE completed the required review and determined that, to the 
extent permitted by law, this final rule meets the relevant standards 
of E.O. 12988.

G. Review Under the Unfunded Mandates Reform Act of 1995

    Title II of the Unfunded Mandates Reform Act of 1995 (UMRA) (Pub. 
L. 104-4, codified at 2 U.S.C. 1501 et seq.) requires each Federal 
agency to assess the effects of Federal regulatory actions on State, 
local, and tribal governments and the private sector. For regulatory 
actions likely to result in a rule that may cause expenditures by 
State, local, and Tribal governments, in the aggregate, or by the 
private sector of $100 million or more in any 1 year (adjusted annually 
for inflation), section 202 of UMRA requires a Federal agency to 
publish a written statement that estimates the resulting costs, 
benefits, and other effects on the national economy. (2 U.S.C. 1532(a) 
and (b)). UMRA requires a Federal agency to develop an effective 
process to permit timely input by elected officers of State, local, and 
tribal governments on a proposed ``significant intergovernmental 
mandate.'' UMRA also requires an agency plan for giving notice and 
opportunity for timely input to small governments that may be 
potentially affected before establishing any requirement that might 
significantly or uniquely affect them. On March 18, 1997 (62 FR 12820), 
DOE published a statement of policy on its process for 
intergovernmental consultation under UMRA. (This policy also is 
available at www.gc.doe.gov). DOE reviewed this final rule pursuant to 
these existing authorities and its policy statement and determined that 
the rule contains neither an intergovernmental mandate nor a mandate 
that may result in the expenditure of $100 million or more in any year, 
so the UMRA requirements do not apply.

H. Review Under the Treasury and General Government Appropriations Act 
of 1999

    Section 654 of the Treasury and General Government Appropriations 
Act of 1999 (Pub. L. 105-277) requires Federal agencies to issue a 
Family Policymaking Assessment for any rule that may affect family 
well-being. This final rule does not have any impact on the autonomy or 
integrity of the family as an institution. Accordingly, DOE has 
concluded that it is not necessary to prepare a Family Policymaking 
Assessment.

I. Review Under Executive Order 12630

    Pursuant to E.O. 12630, ``Governmental Actions and Interference 
with Constitutionally Protected Property Rights'' 53 FR 8859 (Mar. 15, 
1988), DOE determined that this final rule does not result in any 
takings that might require compensation under the Fifth Amendment to 
the U.S. Constitution.

J. Review Under the Treasury and General Government Appropriations Act 
of 2001

    The Treasury and General Government Appropriation Act of 2001 (44 
U.S.C. 3516, note) requires agencies to review most disseminations of 
information they make to the public under guidelines established by 
each agency pursuant to general guidelines issued by the OMB. The OMB's 
guidelines were published at 67 FR 8452 (Feb. 22, 2002), and DOE's 
guidelines were published at 67 FR 62446 (Oct. 7, 2002). DOE has 
reviewed this final rule under the OMB and DOE guidelines and has 
concluded that it is consistent with applicable policies in those 
guidelines.

K. Review Under Executive Order 13211

    E.O. 13211, ``Actions Concerning Regulations That Significantly 
Affect Energy Supply, Distribution, or Use,'' 66 FR 28355 (May 22, 
2001), requires Federal agencies to prepare and submit to OMB a 
Statement of Energy Effects for any proposed significant energy action. 
A ``significant energy action'' is defined as any action by an agency 
that promulgates a final rule or is expected to lead to promulgation of 
a final rule, and that: (1) Is a significant regulatory action under 
E.O. 12866, or any successor order; and (2) is likely to have a 
significant adverse effect on the supply, distribution, or use of 
energy; or (3) is designated by the Administrator of the Office of 
Information and Regulatory Affairs (OIRA) as a significant energy 
action. For any proposed significant energy action, the agency must 
give a detailed statement of any adverse effects on energy supply, 
distribution, or use if the proposal is implemented, and of reasonable 
alternatives to the proposed action and their expected benefits on 
energy supply, distribution, and use.
    DOE has concluded that this regulatory action establishing certain 
definitions and determining that compressors meet the criteria for a 
covered product for which the Secretary may prescribe an energy 
conservation standard pursuant to 42 U.S.C. 6295(o) and (p) does not 
have a significant adverse effect on the supply, distribution, or use 
of energy. This action is also not a significant regulatory action for 
purposes of E.O. 12866, and the OIRA Administrator has not designated 
this final determination as a significant energy action under E.O. 
12866 or any successor order. Therefore, this final rule is not a 
significant energy action. Accordingly, DOE has not prepared a 
Statement of Energy Effects.

L. Congressional Notification

    As required by 5 U.S.C. 801, DOE will report to Congress on the 
promulgation of this rule prior to its effective date. The report will 
state that it has been determined that the rule is a ``major rule'' as 
defined by 5 U.S.C. 804(2).

[[Page 79998]]

M. Review Under the Information Quality Bulletin for Peer Review

    On December 16, 2004, OMB, in consultation with the Office of 
Science and Technology Policy (OSTP), issued its Final Information 
Quality Bulletin for Peer Review (the Bulletin). 70 FR 2664 (Jan. 14, 
2005). The Bulletin establishes that certain scientific information 
shall be peer reviewed by qualified specialists before it is 
disseminated by the Federal government, including influential 
scientific information related to agency regulatory actions. The 
purpose of the Bulletin is to enhance the quality and credibility of 
the Government's scientific information. DOE has determined that the 
analyses conducted for the regulatory action discussed in this document 
do not constitute ``influential scientific information,'' which the 
Bulletin defines as ``scientific information the agency reasonably can 
determine will have or does have a clear and substantial impact on 
important public policies or private sector decisions.'' 70 FR 2667 
(Jan. 14, 2005). The analyses were subject to pre-dissemination review 
prior to issuance of this rulemaking.
    DOE will determine the appropriate level of review that would apply 
to any future rulemaking to establish energy conservation standards for 
compressors.

VI. Approval of the Office of the Secretary

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

    Issued in Washington, DC, on October 28, 2016.
David J. Friedman,
Acting Assistant Secretary, Energy Efficiency and Renewable Energy.

    For the reasons stated in the preamble, DOE amends part 431 of 
chapter II of Title 10, Code of Federal Regulations as set forth below:

PART 431--ENERGY EFFICIENCY PROGRAM FOR CERTAIN COMMERCIAL AND 
INDUSTRIAL EQUIPMENT

0
1. The authority citation for part 431 continues to read as follows:

    Authority:  42 U.S.C. 6291-6317; 28 U.S.C. 2461 note.


0
2. Add subpart T to part 431 to read as follows:
Subpart T--Compressors
Sec.
431.341 Purpose and scope.
431.342 Definitions concerning compressors.

Subpart T--Compressors


Sec.  431.341  Purpose and scope.

    This subpart contains and energy conservation requirements for 
compressors, pursuant to Part A-1 of Title III of the Energy Policy and 
Conservation Act, as amended, 42 U.S.C. 6311-6317.


Sec.  431.342  Definitions concerning compressors.

    Compressor means a machine or apparatus that converts different 
types of energy into the potential energy of gas pressure for 
displacement and compression of gaseous media to any higher pressure 
values above atmospheric pressure and has a pressure ratio at full-load 
operating pressure greater than 1.3.

[FR Doc. 2016-26693 Filed 11-14-16; 8:45 am]
 BILLING CODE 6450-01-P