[Federal Register Volume 82, Number 11 (Wednesday, January 18, 2017)]
[Rules and Regulations]
[Pages 5650-5743]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-31666]



[[Page 5649]]

Vol. 82

Wednesday,

No. 11

January 18, 2017

Part II





 Department of Energy





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 10 CFR Part 431





 Energy Conservation Program: Energy Conservation Standards for 
Dedicated-Purpose Pool Pumps; Direct Final Rule

  Federal Register / Vol. 82 , No. 11 / Wednesday, January 18, 2017 / 
Rules and Regulations  

[[Page 5650]]


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DEPARTMENT OF ENERGY

10 CFR Part 431

[Docket Number EERE-2015-BT-STD-0008]
RIN 1904-AD52


Energy Conservation Program: Energy Conservation Standards for 
Dedicated-Purpose Pool Pumps

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

ACTION: Direct final rule.

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SUMMARY: The Energy Policy and Conservation Act of 1975 (EPCA), as 
amended, sets forth a variety of provisions designed to improve energy 
efficiency. Part C of Title III establishes the ``Energy Conservation 
Program for Certain Industrial Equipment.'' The covered equipment 
includes pumps. In this direct final rule, DOE is adopting new energy 
conservation standards for dedicated-purpose pool pumps. It has 
determined that the energy conservation standards for these products 
would result in significant conservation of energy, and are 
technologically feasible and economically justified.

DATES: The effective date of this rule is May 18, 2017 unless adverse 
comment is received by May 8, 2017. If adverse comments are received 
that DOE determines may provide a reasonable basis for withdrawal of 
the direct final rule, a timely withdrawal of this rule will be 
published in the Federal Register. If no such adverse comments are 
received, compliance with the standards established for dedicated-
purpose pool pumps in this direct final rule is required on and after 
July 19, 2021.

ADDRESSES: The docket for this rulemaking, 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, not all documents listed in 
the index may be publicly available, such as 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-2015-BT-STD-0008. The docket Web page 
contains simple instructions on how to access all documents, including 
public comments, in the docket.

FOR FURTHER INFORMATION CONTACT: 
    Mr. John Cymbalsky, 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) 586-9507. Email: [email protected].
    Ms. Johanna Jochum, U.S. Department of Energy, Office of the 
General Counsel, GC-33, 1000 Independence Avenue SW., Washington, DC 
20585-0121. Telephone: (202) 287-6307. Email: 
[email protected].

SUPPLEMENTARY INFORMATION: 

Table of Contents

I. Synopsis of the Direct Final Rule
    A. Benefits and Costs to Consumers
    B. Impact on Manufacturers
    C. National Benefits and Costs
    D. Conclusion
II. Introduction
    A. Authority
    B. Background
III. General Discussion
    A. Consensus Agreement
    B. Compliance Date
    C. Test Procedure
    D. Scope
    1. Performance-Based Energy Conservation Standards
    2. Prescriptive Energy Conservation Standards
    3. Dedicated-Purpose Pool Pump Motor
    E. Technological Feasibility
    1. General
    2. Maximum Technologically Feasible Levels
    F. Energy Savings
    1. Determination of Savings
    G. Economic Justification
    1. Specific Criteria
    a. Economic Impact on Manufacturers and Consumers
    b. Savings in Operating Costs Compared to Increase in Price (LCC 
and PBP)
    c. Energy Savings
    d. Lessening of Utility or Performance of Equipment
    e. Impact of Any Lessening of Competition
    f. Need for National Energy Conservation
    g. Other Factors
    2. Significance of Savings
    3. Rebuttable Presumption
IV. Methodology and Discussion of Related Comments
    A. Market and Technology Assessment
    1. Equipment Classes and Distinguishing Features
    a. Strainer or Filtration Accessory
    b. Self-Priming Ability
    c. Pump Capacity (Flow, Head, and Power)
    d. Rotational Speed
    e. End User Safety
    f. List of Proposed Equipment Classes
    2. Manufacturers and Industry Structure
    3. Existing Efficiency Programs
    a. U.S. State-Level Programs
    b. Voluntary Standards
    4. Shipments Information
    5. Market and Industry Trends
    a. Equipment Efficiency
    b. Pump Sizing
    6. Technology Options
    a. Improved Motor Efficiency
    b. Ability To Operate at Reduced Speeds
    c. Improved Hydraulic Design
    d. Pool Pump Timer
    B. Screening Analysis
    1. Screened-Out Technologies
    2. Remaining Technologies
    C. Engineering Analysis
    1. Summary of Data Sources
    a. Pool Pump Performance Database
    b. Manufacturer Production Cost Dataset
    2. Representative Equipment
    a. Self-Priming Pool Filter Pumps
    b. Non-Self-Priming Pool Filter Pumps
    c. Pressure Cleaner Booster Pumps
    d. Waterfall Pumps
    e. Integral Sand and Cartridge Filter Pool Pump
    f. Summary of Representative Units
    3. Baseline Configuration and Performance
    4. Efficiency Levels
    a. Design Option Applicability and Ordering
    b. Summary of Available Motor Efficiencies
    c. Summary of Available Hydraulic Efficiencies
    d. Representative Unit Performance at Each Efficiency Level
    e. Efficiency Level Structure for All Pump Capacities
    5. Manufacturer Production Costs
    a. Principal Drivers of DPPP Manufacturing Costs
    b. Pool Filter Pump and Pressure Cleaner Booster Pump Motor 
Costs
    c. Pool Filter Pump and Pressure Cleaner Booster Pump Non-Motor 
Costs
    d. Cost Analysis of Integral Filter Pool Pump Equipment Classes
    e. Cost-Efficiency Results
    f. MPC Cost Components
    6. Other Analytical Outputs
    7. Manufacturer Selling Price
    D. Markups Analysis
    1. Dedicated-Purpose Pool Pump Markups
    2. Replacement Motor Markups
    E. Energy Use Analysis
    1. Dedicated-Purpose Pool Pump Consumer Samples
    2. Energy Use Estimation
    a. Power Inputs
    b. Operating Hours
    c. Annual Days of Operation
    F. Life-Cycle Cost and Payback Period Analyses
    1. Equipment Cost
    2. Installation Cost
    3. Annual Energy Consumption
    4. Energy Prices
    5. Repair and Maintenance Costs
    6. Equipment Lifetime
    7. Discount Rates
    8. Energy Efficiency Distribution in the No-Standards Case
    9. Payback Period Analysis
    G. Shipments Analysis
    H. National Impact Analysis
    1. Equipment Efficiency Trends
    2. National Energy Savings
    3. Net Present Value Analysis
    I. Consumer Subgroup Analysis
    J. Manufacturer Impact Analysis
    1. Overview

[[Page 5651]]

    2. Government Regulatory Impact Model and Key Inputs
    a. Manufacturer Production Costs
    b. Shipments Forecasts
    c. Product and Capital Conversion Costs
    d. Markup Scenarios
    K. Emissions Analysis
    L. Monetizing Carbon Dioxide and Other Emissions Impacts
    1. Social Cost of Carbon
    a. Monetizing Carbon Dioxide Emissions
    b. Current Approach
    2. Social Cost of Methane and Nitrous Oxide
    3. Social Cost of Other Air Pollutants
    M. Utility Impact Analysis
    N. Employment Impact Analysis
V. Analytical Results and Conclusions
    A. Trial Standard Levels
    B. Economic Justification and Energy Savings
    1. Economic Impacts on Individual Consumers
    a. Life-Cycle Cost and Payback Period
    b. Consumer Subgroup Analysis
    c. Rebuttable Presumption Payback
    2. Economic Impacts on Manufacturers
    a. Industry Cash-Flow Analysis Results
    b. Impacts on Direct Employment
    c. Impacts on Manufacturing Capacity
    d. Impacts on Subgroups of Manufacturers
    e. Cumulative Regulatory Burden
    3. National Impact Analysis
    a. Significance of Energy Savings
    b. Net Present Value of Consumer Costs and Benefits
    c. Indirect Impacts on Employment
    4. Impact on Utility or Performance of Equipment
    5. Impact of Any Lessening of Competition
    6. Need of the Nation To Conserve Energy
    7. Other Factors
    8. Summary of National Economic Impacts
    C. Conclusion
    1. Benefits and Burdens of TSLs Considered for Dedicated-Purpose 
Pool Pumps
    2. Annualized Benefits and Costs of the Adopted Standards
VI. Other Prescriptive Requirements
VII. Procedural Issues and Regulatory Review
    A. Review Under Executive Orders 12866 and 13563
    B. Review Under the Regulatory Flexibility Act
    1. Description of Reasons Why Action Is Being Considered
    2. Objectives of, and Legal Basis for, the Rule
    3. Description and Estimate of the Number of Small Entities 
Affected
    a. Methodology for Estimating the Number of Small Entities
    b. Manufacturer Participation
    c. Dedicated-Purpose Pool Pump Industry Structure and Nature of 
Competition
    4. Description of Compliance Requirements
    5. Duplication, Overlap, and Conflict With Other Rules and 
Regulations
    6. Significant Alternatives Considered and Steps Taken To 
Minimize Significant Economic Impacts on Small Entities
    C. Review Under the Paperwork Reduction Act
    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, 1999
    I. Review Under Executive Order 12630
    J. Review Under the Treasury and General Government 
Appropriations Act, 2001
    K. Review Under Executive Order 13211
    L. Information Quality
    M. Congressional Notification
VIII. Approval of the Office of the Secretary

I. Synopsis of the Direct Final Rule

    Title III of the Energy Policy and Conservation Act of 1975 (42 
U.S.C. 6291, et seq; EPCA), sets forth a variety of provisions designed 
to improve energy efficiency of appliances and commercial equipment. 
Part C of Title III, which for editorial reasons was redesignated 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.'' Covered industrial equipment includes pumps. (42 U.S.C. 
6311(1)(H)) \1\ Pumps include dedicated-purpose pool pumps, the subject 
of this document.
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    \1\ All references to EPCA in this document refer to the statute 
as amended through the Energy Efficiency Improvement Act of 2015, 
Public Law 114-11 (Apr. 30, 2015).
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    The energy conservation standards for dedicated-purpose pool pumps 
(also referred to as ``pool pumps'') established in this document 
reflect the consensus of a negotiation among interested parties with a 
broad cross-section of interests, including the manufacturers who 
produce the subject equipment, environmental and energy-efficiency 
advocacy organizations, and electric utility companies. A working group 
representing these parties was established under the Appliance 
Standards and Rulemaking Federal Advisory Committee (ASRAC) \2\ to 
discuss and, if possible, reach consensus on proposed standards for 
pool pump energy efficiency. On June 23, 2016, the dedicated-purpose 
pool pumps (DPPP) Working Group successfully reached consensus on 
recommended energy conservation standards for pool pumps. See section 
III.A for further discussion of the Working Group and its 
recommendations.
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    \2\ In accordance with the Federal Advisory Committee Act and 
the Negotiated Rulemaking Act (5 U.S.C. App.; 5 U.S.C. 561-570).
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    After carefully considering the recommendations submitted by the 
DPPP Working Group and adopted by ASRAC related to energy conservation 
standards for pool pumps, DOE has determined that these recommendations 
comprise a statement submitted by interested persons who represent 
relevant points of view on this matter, and which, if compliant with 
certain statutory requirements, could result in issuance of a direct 
final rule.
    Pursuant to EPCA, any new or amended energy conservation standard 
must be designed to achieve the maximum improvement in energy 
efficiency that DOE determines is technologically feasible and 
economically justified. (42 U.S.C. 6295(o)(2)(A) and 6316(a)) 
Furthermore, the new or amended standard must result in significant 
conservation of energy. (42 U.S.C. 6295(o)(3)(B) and 6316(a)).
    In accordance with these and other statutory provisions discussed 
in this document, DOE is adopting new energy conservation standards for 
certain dedicated-purpose pool pumps. The adopted standards are shown 
in Table I-1 and Table I-2. Standards for the equipment classes in 
Table I-1 are performance based, expressed in terms of weighted energy 
factor (WEF); standards in Table I-2 are prescriptive. These standards 
apply to all equipment listed in Table I-1 and Table I-2 and 
manufactured in or imported into the United States starting on July 19, 
2021. DOE is not adopting standby or off-mode standards for this 
equipment.

           Table I-1--Performance-Based Energy Conservation Standards for Dedicated-Purpose Pool Pumps
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                                     Equipment class
-----------------------------------------------------------------------------------------  Minimum allowable WEF
                                        Hydraulic horsepower                                     ** score
 Dedicated-purpose pool pump variety      applicability *             Motor phase
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Standard-Size Self-Priming Pool       <2.5 hhp and >=0.711     Single...................  WEF =-2.30 * ln (hhp)
 Filter Pumps.                         hhp.                                                + 6.59.

[[Page 5652]]

 
Small-Size Self-Priming Pool Filter   hhp <0.711 hp..........  Single...................  WEF = 5.55 for hhp
 Pumps.                                                                                    <=0.13 hp,
                                                                                          -1.30 * ln (hhp) +
                                                                                           2.90 for hhp >0.13
                                                                                           hp.
Non-Self-Priming Pool Filter Pumps..  hhp <2.5 hp............  Any......................  WEF = 4.60 for hhp
                                                                                           <=0.13 hp,
                                                                                          -0.85 * ln (hhp) +
                                                                                           2.87 for hhp >0.13
                                                                                           hp.
Pressure Cleaner Booster Pumps......  Any....................  Any......................  WEF = 0.42.
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* All instances of hhp refer to rated hydraulic horsepower determined in accordance with the DOE test procedure
  at 10 CFR 431.464 and applicable sampling plans.
** WEF is measured by kgal/kWh.


             Table I-2--Prescriptive Energy Conservation Standards for Dedicated-Purpose Pool Pumps
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                                     Equipment class
------------------------------------------------------------------------------------------
                                        Hydraulic horsepower                               Prescriptive standard
Dedicated-purpose pool pump variety        applicability               Motor phase
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Integral Sand Filter Pool Pump.....  Any......................  Any......................  Must be distributed
                                                                                            in commerce with a
                                                                                            pool pump timer that
                                                                                            is either integral
                                                                                            to the pump or a
                                                                                            separate component
                                                                                            that is shipped with
                                                                                            the pump. *
Integral Cartridge Filter Pool Pump  Any......................  Any......................  Must be distributed
                                                                                            in commerce with a
                                                                                            pool pump timer that
                                                                                            is either integral
                                                                                            to the pump or a
                                                                                            separate component
                                                                                            that is shipped with
                                                                                            the pump. *
All Dedicated-Purpose Pool Pumps     Any......................  Any......................  The pump must be
 Distributed in Commerce with                                                               shipped with freeze
 Freeze Protection Controls.                                                                protection disabled
                                                                                            or with the
                                                                                            following default,
                                                                                            user-adjustable
                                                                                            settings:
                                                                                            The default
                                                                                            dry-bulb air
                                                                                            temperature setting
                                                                                            is no greater than
                                                                                            40 [deg]F;
                                                                                            The default
                                                                                            run time setting
                                                                                            shall be no greater
                                                                                            than 1 hour (before
                                                                                            the temperature is
                                                                                            rechecked); and
                                                                                            The default
                                                                                            motor speed shall
                                                                                            not be more than \1/
                                                                                            2\ of the maximum
                                                                                            available speed.
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* Pool pump timer means a pool pump control that automatically turns off a dedicated-purpose pool pump after a
  run-time of no longer than 10 hours.

A. Benefits and Costs to Consumers \3\
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    \3\ All monetary values in this document are expressed in 2015 
dollars and, where appropriate, are discounted to 2016 unless 
explicitly stated otherwise.
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    Table I-3 presents DOE's evaluation of the economic impacts of the 
adopted standards on consumers of pool pumps, as measured by the 
average life-cycle cost (LCC) savings and the simple payback period 
(PBP).\4\ The average LCC savings are positive for all equipment 
classes, and the PBP is much less than the average lifetime of 
dedicated-purpose pool pumps, which is estimated to range from 4 to 7 
years, depending on equipment class (see section IV.F.6).
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    \4\ The average LCC savings refer to consumers that are affected 
by a standard are measured relative to the efficiency distribution 
in the no-standards case, which depicts the market in the compliance 
year in the absence of new or amended standards (see section 
IV.H.2). The simple PBP, which is designed to compare specific 
efficiency levels, is measured relative to the baseline model (see 
section IV.C.3).

Table I-3--Impacts of Adopted Energy Conservation Standards on End Users
                     of Dedicated-Purpose Pool Pumps
------------------------------------------------------------------------
                                            Average LCC
             Equipment class                  savings     Simple payback
                                              (2015$)     period (years)
------------------------------------------------------------------------
Standard-Size Self-Priming Pool Filter             2,140             0.7
 Pump...................................
Small-Size Self-Priming Pool Filter Pump             295             0.8
Standard-Size Non-Self-Priming Pool                  191             0.2
 Filter Pump............................
Extra-Small Non-Self-Priming Pool Filter              36             0.9
 Pump...................................
Pressure Cleaner Booster Pump...........             111             0.6
Integral Cartridge Filter Pool Pump.....             128             0.4
Integral Sand Filter Pool Pump..........              73             0.5
------------------------------------------------------------------------


[[Page 5653]]

    DOE's analysis of the impacts of the adopted standards on consumers 
is described in section V.B.1 of this document.

B. Impact on Manufacturers

    The industry net present value (INPV) is the sum of the discounted 
cash flows to the industry from the reference year through the end of 
the analysis period 2016-2050. Using a real discount rate of 11.8 
percent, DOE estimates that the INPV for manufacturers of dedicated-
purpose pool pumps in the case without standards is $212.8 million in 
2015$. Under the new standards, DOE expects the change in INPV to range 
from -21.8 percent to 3.3 percent, which is approximately -$46.3 
million to $7.0 million. In order to bring equipment into compliance 
with the new standards, DOE expects the industry to incur total 
conversion costs of $35.6 million.
    DOE's analysis of the impacts of the new standards on manufacturers 
is described in section IV.J and section V.B.2 of this document.

C. National Benefits and Costs

    DOE's analyses indicate that the adopted energy conservation 
standards for dedicated-purpose pool pumps would save a significant 
amount of energy. Relative to the case without new standards, the 
lifetime energy savings for dedicated-purpose pool pumps purchased in 
the 30-year period that begins in the anticipated year of compliance 
with the standards (2021-2050), amount to 3.8 quadrillion British 
thermal units (Btu), or quads.\5\ This represents an estimated savings 
of 61 percent relative to the energy use of this equipment in the case 
without standards (referred to as the ``no-standards case'').
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    \5\ The quantity refers to full-fuel-cycle (FFC) energy savings. 
FFC energy savings includes the energy consumed in extracting, 
processing, and transporting primary fuels (i.e., coal, natural gas, 
petroleum fuels), and, thus, presents a more complete picture of the 
impacts of energy efficiency standards. For more information on the 
FFC metric, see section IV.H.2.
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    The cumulative net present value (NPV) of total consumer benefits 
of the standards for dedicated-purpose pool pumps ranges from $11 
billion (at a 7-percent discount rate) to $24 billion (at a 3-percent 
discount rate). This NPV expresses the estimated total value of future 
operating-cost savings minus the estimated increased equipment costs 
for dedicated-purpose pool pumps purchased in 2021-2050.
    In addition, the standards for dedicated-purpose pool pumps are 
projected to yield significant environmental benefits. DOE estimates 
that the standards would result in cumulative greenhouse gas emission 
reductions (over the same period as for energy savings) of 202 million 
metric tons (Mt \6\ of carbon dioxide (CO2), 147 thousand 
tons of sulfur dioxide (SO2), 257 thousand tons of nitrogen 
oxides (NOX), 968 thousand tons of methane (CH4), 
3.0 thousand tons of nitrous oxide (N2O), and 0.50 tons of 
mercury (Hg).\7\ The cumulative reduction in CO2 emissions 
through 2030 amounts to 48 Mt, which is equivalent to the emissions 
resulting from the annual electricity use of 7.1 million homes.
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    \6\ A metric ton is equivalent to 1.1 short tons. Results for 
emissions other than CO2 are presented in short tons.
    \7\ DOE calculated emissions reductions relative to the no-
standards-case, which reflects key assumptions in the Annual Energy 
Outlook 2016 (AEO2016). AEO2016 generally represents current 
legislation and environmental regulations for which implementing 
regulations were available as of the end of February 2016.
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    The value of the CO2 reduction is calculated using a 
range of values per metric ton (t) of CO2 (otherwise known 
as the ``Social Cost of Carbon Dioxide,'' or SC-CO2) 
developed by a Federal interagency working group.\8\ The derivation of 
the SC-CO2 values is discussed in section IV.L. Using 
discount rates appropriate for each set of SC-CO2 values, 
DOE estimates that the present value of the CO2 emissions 
reduction is between $1.5 billion and $21 billion. Using the central 
SCC case represented by $40.6/metric ton (t) in 2015 and a discount 
rate of 3-percent produces a value of $6.8 billion.
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    \8\ United States Government--Interagency Working Group on 
Social Cost of Carbon. Technical Support Document: Technical Update 
of the Social Cost of Carbon for Regulatory Impact Analysis Under 
Executive Order 12866. May 2013. Revised July 2015. Available at 
www.whitehouse.gov/sites/default/files/omb/inforeg/scc-tsd-final-july-2015.pdf.
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    DOE also calculated the value of the reduction in emissions of the 
non-CO2 greenhouse gases, methane and nitrous oxide, using 
values for the social cost of methane (SC-CH4) and the 
social cost of nitrous oxide (SC-N2O) recently developed by 
the interagency working group.\9\ See section IV.L.2 for description of 
the methodology and the values used for DOE's analysis. The estimated 
present value of the methane emissions reduction is between $0.32 
billion and $2.6 billion, with a value of $0.99billion using the 
central SC-CH4 case, and the estimated present value of the 
N2O emissions reduction is between $0.008 billion and $0.09 
billion, with a value of $0.03 billion using the central SC-
N2O case.
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    \9\ United States Government--Interagency Working Group on 
Social Cost of Greenhouse Gases. Addendum to Technical Support 
Document on Social Cost of Carbon for Regulatory Impact Analysis 
under Executive Order 12866: Application of the Methodology to 
Estimate the Social Cost of Methane and the Social Cost of Nitrous 
Oxide. August 2016. https://www.whitehouse.gov/sites/default/files/omb/inforeg/august_2016_sc_ch4_sc_n2o_addendum_final_8_26_16.pdf.
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    DOE also estimates the present value of the NOX 
emissions reduction to be $0.21 billion using a 7-percent discount 
rate, and $0.48 billion using a 3-percent discount rate.\10\ DOE is 
still investigating appropriate valuation of the reduction in other 
emissions, and therefore did not include any such values in the 
analysis of this direct final rule.
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    \10\ DOE estimated the monetized value of NOX 
emissions reductions associated with electricity savings using 
benefit per ton estimates from the Regulatory Impact Analysis for 
the Clean Power Plan Final Rule, published in August 2015 by EPA's 
Office of Air Quality Planning and Standards. Available at 
www.epa.gov/cleanpowerplan/clean-power-plan-final-rule-regulatory-impact-analysis. See section IV.L for further discussion. The U.S. 
Supreme Court has stayed the rule implementing the Clean Power Plan 
until the current litigation against it concludes. Chamber of 
Commerce, et al. v. EPA, et al., Order in Pending Case, 577 U.S. ___ 
(2016). However, the benefit-per-ton estimates established in the 
Regulatory Impact Analysis for the Clean Power Plan are based on 
scientific studies that remain valid irrespective of the legal 
status of the Clean Power Plan. DOE is primarily using a national 
benefit-per-ton estimate for NOX emitted from the 
Electricity Generating Unit sector based on an estimate of premature 
mortality derived from the ACS study (Krewski et al. 2009). If the 
benefit-per-ton estimates were based on the Six Cities study 
(Lepuele et al. 2011), the values would be nearly two-and-a-half 
times larger.
---------------------------------------------------------------------------

    Table I-4 summarizes the economic benefits and costs expected to 
result from the adopted standards for dedicated-purpose pool pumps.

[[Page 5654]]



   Table I-4--Summary of Economic Benefits and Costs of Adopted Energy
       Conservation Standards for Dedicated-Purpose Pool Pumps ***
------------------------------------------------------------------------
                                           Present value
                Category                     (billion      Discount rate
                                              2015$)            (%)
------------------------------------------------------------------------
                                Benefits
------------------------------------------------------------------------
Consumer Operating Cost Savings.........              13               7
                                                      26               3
GHG Reduction (using avg. social costs               1.9               5
 at 5% discount rate) *.................
GHG Reduction (using avg. social costs               7.8               3
 at 3% discount rate) *.................
GHG Reduction (using avg. social costs                12             2.5
 at 2.5% discount rate) *...............
GHG Reduction (using 95th percentile                  23               3
 social costs at 3% discount rate) *....
NOX Reduction **........................            0.21               7
                                                    0.48               3
Total Benefits [dagger].................              21               7
                                                      35               3
------------------------------------------------------------------------
                                  Costs
------------------------------------------------------------------------
Consumer Incremental Installed Costs....             1.3               7
                                                     2.6               3
------------------------------------------------------------------------
                           Total Net Benefits
------------------------------------------------------------------------
Including GHG and NOX Reduction                       19               7
 Monetized Value........................              32               3
------------------------------------------------------------------------
*** This table presents the costs and benefits associated with pool
  pumps shipped in 2021-2050. These results include benefits to
  consumers which accrue after 2050 from the equipment purchased in 2021-
  2050. The incremental installed costs include incremental equipment
  cost as well as installation costs. The costs account for the
  incremental variable and fixed costs incurred by manufacturers due to
  the proposed standards, some of which may be incurred in preparation
  for the rule. The CO2 reduction benefits are global benefits due to
  actions that occur domestically.
* The interagency group selected four sets of SC-CO2 SC-CH4, and SC-N2O
  values for use in regulatory analyses. Three sets of values are based
  on the average social costs from the integrated assessment models, at
  discount rates of 5 percent, 3 percent, and 2.5 percent. The fourth
  set, which represents the 95th percentile of the social cost
  distributions calculated using a 3-percent discount rate, is included
  to represent higher-than-expected impacts from climate change further
  out in the tails of the social cost distributions. The social cost
  values are emission year specific. See section IV.L.1 for more
  details.
** DOE estimated the monetized value of NOX emissions reductions
  associated with electricity savings using benefit per ton estimates
  from the Regulatory Impact Analysis for the Clean Power Plan Final
  Rule, published in August 2015 by EPA's Office of Air Quality Planning
  and Standards. (Available at www.epa.gov/cleanpowerplan/clean-power-plan-final-rule-regulatory-impact-analysis.) See section IV.L.3 for
  further discussion. DOE is primarily using a national benefit-per-ton
  estimate for NOX emitted from the electricity generating unit sector
  based on an estimate of premature mortality derived from the ACS study
  (Krewski et al. 2009). If the benefit-per-ton estimates were based on
  the Six Cities study (Lepuele et al. 2011), the values would be nearly
  two-and-a-half times larger.
[dagger] Total Benefits for both the 3-percent and 7-percent cases are
  presented using only the average social costs with 3-percent discount
  rate.

    The benefits and costs of the adopted standards for dedicated-
purpose pool pumps sold between 2021-2050 can also be expressed in 
terms of annualized values. The monetary values for the total 
annualized net benefits are (1) the reduced consumer operating costs, 
minus (2) the increases in equipment purchase prices and installation 
costs, plus (3) the value of the benefits of CO2 and 
NOX emission reductions, all annualized.\11\
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    \11\ To convert the time-series of costs and benefits into 
annualized values, DOE calculated a present value in 2016, the year 
used for discounting the NPV of total consumer costs and savings. 
For the benefits, DOE calculated a present value associated with 
each year's shipments in the year in which the shipments occur 
(e.g., 2020 or 2030), and then discounted the present value from 
each year to 2016. The calculation uses discount rates of 3 and 7 
percent for all costs and benefits except for the value of 
CO2 reductions, for which DOE used case-specific discount 
rates, as shown in Table . Using the present value, DOE then 
calculated the fixed annual payment over a 30-year period, starting 
in the compliance year, which yields the same present value.
---------------------------------------------------------------------------

    The national operating cost savings are domestic private U.S. 
consumer monetary savings that occur as a result of purchasing the 
covered equipment and are measured for the lifetime of dedicated-
purpose pool pumps shipped in 2021-2050. The benefits associated with 
reduced CO2 emissions achieved as a result of the adopted 
standards are also calculated based on the lifetime of dedicated-
purpose pool pumps shipped in 2021-2050. Because CO2 
emissions have a very long residence time in the atmosphere, the SC-
CO2 values for emissions in future years reflect 
CO2-emissions impacts that continue through 2300. The 
CO2 reduction is a benefit that accrues globally. DOE 
maintains that consideration of global benefits is appropriate because 
of the global nature of the climate change problem.
    Estimates of annualized benefits and costs of the adopted standards 
are shown in Table I-5. The results under the primary estimate are as 
follows. Using a 7-percent discount rate for benefits and costs other 
than GHG reduction (for which DOE used average social costs with a 3-
percent discount rate),\12\ the estimated cost of the standards in this 
rule is $138 million per year in increased equipment costs, while the 
estimated annual benefits are $1.3 billion in reduced equipment 
operating costs, $449 million in GHG reductions, and $22 million in 
reduced NOX emissions. In this case, the net benefit amounts 
to $1.7 billion per year. Using a 3-percent discount rate for all 
benefits and costs, the estimated cost of the standards is $149 million 
per year in increased equipment costs, while the estimated annual 
benefits are $1.5 billion in reduced operating costs, $449 million in 
GHG reductions, and $27 million in reduced NOX emissions. In 
this case, the net benefit amounts to $1.8 billion per year.
---------------------------------------------------------------------------

    \12\ DOE used average social costs with a 3-percent discount 
rate because these values are considered as the ``central'' 
estimates by the interagency group.

[[Page 5655]]



                            Table I-5--Annualized Benefits and Costs of Adopted Standards for Dedicated-Purpose Pool Pumps *
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                            Discount rate (%)              Primary estimate        Low-net-benefits estimate  High-net-benefits estimate
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                       Million 2015$/year
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                        Benefits
--------------------------------------------------------------------------------------------------------------------------------------------------------
Consumer Operating Cost Savings...  7...............................  1,340.....................  1,221.....................  1,467.
                                    3...............................  1,516.....................  1,367.....................  1,678.
GHG Reduction (using avg. social    5...............................  147.......................  129.......................  164.
 costs at 5% discount rate) **.
GHG Reduction (using avg. social    3...............................  449.......................  392.......................  504.
 costs at 3% discount rate) **.
GHG Reduction (using avg. social    2.5.............................  642.......................  560.......................  721.
 costs at 2.5% discount rate) **.
GHG Reduction (using 95th           3...............................  1,346.....................  1,175.....................  1,510.
 percentile social costs at 3%
 discount rate) **.
NOX Reduction [dagger]............  7...............................  22........................  20........................  55.
                                    3...............................  27........................  24........................  70.
Total Benefits [Dagger]...........  7% plus GHG range...............  1,509 to 2,708............  1,369 to 2,416............  1,686 to 3,032.
                                    7%..............................  1,811.....................  1,633.....................  2,026.
                                    3% plus GHG range...............  1,690 to 2,890............  1,520 to 2,566............  1,912 to 3,258.
                                    3...............................  1,993.....................  1,783.....................  2,252.
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                          Costs
--------------------------------------------------------------------------------------------------------------------------------------------------------
Consumer Incremental Product Costs  7...............................  138.......................  124.......................  151.
                                    3...............................  149.......................  133.......................  164.
Manufacturer Conversion Costs       7...............................  3.........................  3.........................  3.
 [dagger][dagger].                  3...............................  2.........................  2.........................  2.
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                      Net Benefits
--------------------------------------------------------------------------------------------------------------------------------------------------------
Total [Dagger]....................  7% plus GHG range...............  1,371 to 2,570............  1,245 to 2,292............  1,535 to 2,881.
                                    7%..............................  1,673.....................  1,509.....................  1,875.
                                    3 plus GHG range................  1,542 to 2,741............  1,387 to 2,433............  1,748 to 3,094.
                                    3...............................  1,844.....................  1,651.....................  2,088.
--------------------------------------------------------------------------------------------------------------------------------------------------------
* This table presents the annualized costs and benefits associated with pool pumps shipped in 2021-2050. These results include benefits to consumers
  which accrue after 2050 from the pool pumps purchased from 2021-2050. The incremental equipment costs include incremental equipment cost as well as
  installation costs. The costs account for the incremental variable and fixed costs incurred by manufacturers due to the adopted standards, some of
  which may be incurred in preparation for the rule. The Primary, Low Net Benefits, and High Net Benefits Estimates utilize projections of energy prices
  and real GDP from the AEO2016 No-CPP case, a Low Economic Growth case, and a High Economic Growth case, respectively. In addition, incremental product
  costs reflect the default price trend in the Primary Estimate, a high price trend in the Low Benefits Estimate, and a low price trend in the High
  Benefits Estimate. The methods used to derive projected price trends are explained in section IV.F.1. The benefits and costs are based on equipment
  efficiency distributions as described in sections IV.F.8 and IV.H.1. Purchases of higher efficiency equipment are a result of many different factors
  unique to each consumer including past purchases, expected usage, and others. For each consumer, all other factors being the same, it would be
  anticipated that higher efficiency purchases in the no-new-standards case may correlate positively with higher energy prices. To the extent that this
  occurs, it would be expected to result in some lowering of the consumer operating cost savings from those calculated in this rule. Note that the
  Benefits and Costs may not sum to the Net Benefits due to rounding.
** The interagency group selected four sets of SC-CO2 SC-CH4, and SC-N2O values for use in regulatory analyses. Three sets of values are based on the
  average social costs from the integrated assessment models, at discount rates of 5 percent, 3 percent, and 2.5 percent. The fourth set, which
  represents the 95th percentile of the social cost distributions calculated using a 3-percent discount rate, is included to represent higher-than-
  expected impacts from climate change further out in the tails of the social cost distributions. The social cost values are emission year specific. The
  GHG reduction benefits are global benefits due to actions that occur nationally. See section IV.L for more details.
[dagger] DOE estimated the monetized value of NOX emissions reductions associated with electricity savings using benefit per ton estimates from the
  Regulatory Impact Analysis for the Clean Power Plan Final Rule, published in August 2015 by EPA's Office of Air Quality Planning and Standards.
  (Available at www.epa.gov/cleanpowerplan/clean-power-plan-final-rule-regulatory-impact-analysis.) See section IV.L.3 for further discussion. For the
  Primary Estimate and Low Net Benefits Estimate, DOE used national benefit-per-ton estimates for NOX emitted from the Electric Generating Unit sector
  based on an estimate of premature mortality derived from the ACS study (Krewski et al. 2009). For the High Net Benefits Estimate, the benefit-per-ton
  estimates were based on the Six Cities study (Lepuele et al. 2011); these are nearly two-and-a-half times larger than those from the ACS study.
[Dagger] Total Benefits for both the 3-percent and 7-percent cases are presented using the average social costs with 3-percent discount rate. In the
  rows labeled ``7% plus GHG range'' and ``3% plus GHG range,'' the operating cost and NOX benefits are calculated using the labeled discount rate, and
  those values are added to the full range of social cost values.
[dagger][dagger] Manufacturers are estimated to incur $35.6 million in conversion costs between 2017 and 2020.

    DOE's analysis of the national impacts of the adopted standards is 
described in sections IV.H, IV.K, and IV.L of this document.

D. Conclusion

    Based on the analyses in this direct final rule, DOE found the 
benefits to the nation of the standards (energy savings, consumer LCC 
savings, positive NPV of consumer benefit, and emission reductions) 
outweigh the burdens (loss of INPV and LCC increases for some end users 
of this equipment). DOE has concluded that the standards in this direct 
final rule represent the maximum improvement in energy efficiency that 
is technologically feasible and economically justified, and would 
result in significant conservation of energy.

II. Introduction

    The following sections briefly discuss the statutory authority 
underlying this

[[Page 5656]]

direct final rule, as well as some of the relevant historical 
background related to the establishment of standards for dedicated-
purpose pool pumps.

A. Authority

    Title III, Part C \13\ of the Energy Policy and Conservation Act of 
1975 (EPCA), (42 U.S.C. 6311-6317, as codified) established the Energy 
Conservation Program for Certain Industrial Equipment, a program 
covering certain industrial equipment.\14\ ``Pumps'' are listed as a 
type of covered industrial equipment. (42 U.S.C. 6311(1)(A))
---------------------------------------------------------------------------

    \13\ For editorial reasons, upon codification in the U.S. Code, 
part C was re-designated part A-1.
    \14\ All references to EPCA refer to the statute as amended 
through the Energy Efficiency Improvement Act of 2015, Public Law 
114-11 (April 30, 2015).
---------------------------------------------------------------------------

    While pumps are listed as a type of covered equipment, EPCA does 
not define the term ``pump.'' To address this, in January 2016, DOE 
published a test procedure final rule (January 2016 general pumps test 
procedure final rule) that established a definition for the term 
``pump.'' 81 FR 4086, 4147 (January 25, 2016). In the December 2016 
DPPP test procedure final rule (``test procedure final rule''),\15\ DOE 
noted the applicability of the definition of ``pump'' and associated 
terms to dedicated-purpose pool pumps.
---------------------------------------------------------------------------

    \15\ See https://www1.eere.energy.gov/buildings/appliance_standards/standards.aspx?productid=41.
---------------------------------------------------------------------------

    Pursuant to EPCA, DOE's energy conservation program for covered 
equipment consists essentially of four parts: (1) Testing, (2) 
labeling, (3) the establishment of Federal energy conservation 
standards, and (4) certification and enforcement procedures. Subject to 
certain criteria and conditions, DOE is required to develop test 
procedures to measure the energy efficiency, energy use, or estimated 
annual operating cost of covered equipment. (42 U.S.C. 6295(o)(3)(A) 
and 6316(a)) Manufacturers of covered equipment must use the prescribed 
DOE test procedure as the basis for certifying to DOE that their 
equipment complies with the applicable energy conservation standards 
adopted under EPCA, and when making representations to the public 
regarding their energy use or efficiency. (42 U.S.C. 6314(d)) 
Similarly, DOE must use these test procedures to determine whether the 
equipment complies with standards adopted pursuant to EPCA. Id. The DOE 
test procedures for dedicated-purpose pool pumps appear at title 10 of 
the Code of Federal Regulations (CFR) part 431, subpart Y, appendix B.
    DOE must follow specific statutory criteria for prescribing new or 
amended standards for covered equipment, including dedicated-purpose 
pool pumps. Any new or amended standard for covered equipment must be 
designed to achieve the maximum improvement in energy efficiency that 
the Secretary of Energy determines is technologically feasible and 
economically justified. (42 U.S.C. 6313(a)(6)(C), 6295(o), and 6316(a)) 
Furthermore, DOE may not adopt any standard that would not result in 
the significant conservation of energy. (42 U.S.C. 6295(o)(3)) and 
6316(a)) Moreover, DOE may not prescribe a standard (1) for certain 
equipment, including dedicated-purpose pool pumps, if no test procedure 
has been established for the product, or (2) if DOE determines by rule 
that the standard is not technologically feasible or economically 
justified. (42 U.S.C. 6295(o) and 6316(a)) In deciding whether a 
proposed standard is economically justified, DOE must determine whether 
the benefits of the standard exceed its burdens. DOE must make this 
determination after receiving comments on the proposed standard, and by 
considering, to the greatest extent practicable, the following seven 
statutory factors:
    1. The economic impact of the standard on manufacturers and 
consumers of the equipment subject to the standard;
    2. The savings in operating costs throughout the estimated average 
life of the covered equipment in the type (or class) compared to any 
increase in the price, initial charges, or maintenance expenses for the 
covered equipment that are likely to result from the standard;
    3. The total projected amount of energy (or as applicable, water) 
savings likely to result directly from the standard;
    4. Any lessening of the utility or the performance of the covered 
equipment likely to result from the standard;
    5. The impact of any lessening of competition, as determined in 
writing by the Attorney General, that is likely to result from the 
standard;
    6. The need for national energy and water conservation; and
    7. Other factors the Secretary of Energy (Secretary) considers 
relevant. (42 U.S.C. 6295(o)(2)(B)(i)(I)-(VII)) and 6316(a))
    Further, EPCA establishes a rebuttable presumption that a standard 
is economically justified if the Secretary finds that the additional 
cost to the consumer of purchasing a product complying with an energy 
conservation standard level will be less than three times the value of 
the energy savings during the first year that the consumer will receive 
as a result of the standard, as calculated under the applicable test 
procedure. (42 U.S.C. 6295(o)(2)(B)(iii)) and 6316(a))
    EPCA also contains what is known as an ``anti-backsliding'' 
provision, which prevents the Secretary from prescribing any amended 
standard that either increases the maximum allowable energy use or 
decreases the minimum required energy efficiency of a covered product. 
(42 U.S.C. 6295(o)(1)) and 6316(a)) Also, the Secretary may not 
prescribe an amended or new standard if interested persons have 
established by a preponderance of the evidence that the standard is 
likely to result in the unavailability in the United States in any 
covered product type (or class) of performance characteristics 
(including reliability), features, sizes, capacities, and volumes that 
are substantially the same as those generally available in the United 
States. (42 U.S.C. 6295(o)(4) and 6316(a))
    Additionally, EPCA specifies requirements when promulgating an 
energy conservation standard for a covered product that has two or more 
subcategories. DOE must specify a different standard level for a type 
or class of products that has the same function or intended use if DOE 
determines that equipment within such group (a) consumes a different 
kind of energy from that consumed by other covered equipment within 
such type (or class); or (b) has a capacity or other performance-
related feature that other equipment within such type (or class) do not 
have and such feature justifies a higher or lower standard. (42 U.S.C. 
6295(q)(1) and 6316(a)) In determining whether a performance-related 
feature justifies a different standard for a group of equipment, DOE 
must consider such factors as the utility to the consumer of such a 
feature and other factors DOE deems appropriate. Id. Any rule 
prescribing such a standard must include an explanation of the basis on 
which such higher or lower level was established. (42 U.S.C. 6295(q)(2) 
and 6316(a))
    Federal energy conservation requirements generally supersede State 
laws or regulations concerning energy conservation testing, labeling, 
and standards. (42 U.S.C. 6297(a)-(c) and 6316(a)) DOE may, however, 
grant waivers of Federal preemption for particular State laws or 
regulations, in accordance with the procedures and other provisions set 
forth under 42 U.S.C. 6297(d).
    With particular regard to direct final rules, the Energy 
Independence and Security Act of 2007 (EISA 2007), Public

[[Page 5657]]

Law 110-140 (December 19, 2007), amended EPCA, in relevant part, to 
grant DOE authority to issue a type of final rule (i.e., a ``direct 
final rule'') establishing an energy conservation standard for a 
product or equipment (including dedicated-purpose pool pumps) on 
receipt of a statement submitted jointly by interested persons that are 
fairly representative of relevant points of view (including 
representatives of manufacturers of covered equipment, States, and 
efficiency advocates), as determined by the Secretary. (42 U.S.C. 
6295(p)(4)(A)) and 6316(a)) That statement must contain recommendations 
with respect to an energy or water conservation standard that are in 
accordance with the provisions of 42 U.S.C. 6295(o). (42 U.S.C. 
6295(p)(4)(A)(i)) A notice of proposed rulemaking (NOPR) that proposes 
an identical energy efficiency standard must be published 
simultaneously with the direct final rule and a public comment period 
of at least 110 days provided. (42 U.S.C. 6295(p)(4)(A)-(B)) Not later 
than 120 days after issuance of the direct final rule, if DOE receives 
one or more adverse comments or an alternative joint recommendation 
relating to the direct final rule, the Secretary must determine whether 
the comments or alternative joint recommendation may provide a 
reasonable basis for withdrawal under 42 U.S.C. 6295(o) or other 
applicable law. (42 U.S.C. 6295(p)(4)(C)(i)) If the Secretary makes 
such a determination, DOE must withdraw the direct final rule and 
proceed with the simultaneously published NOPR, and publish in the 
Federal Register the reason why the direct final rule was withdrawn. 
(42 U.S.C. 6295(p)(4)(C)(ii))

B. Background

    Currently, no Federal energy conservation standards exist for 
dedicated-purpose pool pumps. DOE excluded this category of pumps from 
its recent consensus-based energy conservation standard final rule for 
general pumps. 81 FR 4368 (January 26, 2016). The general pumps final 
rule, which was also the product of a pumps working group that had been 
created through the ASRAC, examined a variety of pump categories. While 
dedicated-purpose pool pumps were one of the pump categories that were 
considered during the working group's discussions, the working group 
ultimately recommended that DOE initiate a separate rulemaking for 
dedicated-purpose pool pumps. (Docket No. EERE-2013-BT-NOC-0039, No. 
0092 at p. 2)
    DOE began the separate rulemaking for dedicated-purpose pool pumps 
on May 8, 2015, when it issued a Request for Information (RFI) (May 
2015 DPPP RFI). 80 FR 26475. The May 2015 DPPP RFI presented 
information and requested public comment about definitions, metrics, 
test procedures, equipment characteristics, and typical applications 
relevant to DPPP equipment. DOE received six written comments in 
response to the May 2015 DPPP RFI. The commenters included the 
Association of Pool and Spa Professionals (APSP); Pacific Gas and 
Electric Company (PG&E), Southern California Gas Company (SCG), 
Southern California Edison (SCE), and San Diego Gas and Electric 
Company (SDG&E), collectively referred to herein as the California 
Investor-Owned Utilities (CA IOUs); the Hydraulic Institute (HI); Ms. 
Tamara Newman; the National Electrical Manufacturers Association 
(NEMA); and River City Pool and Spa (River City).
    In response to the May 2015 DPPP RFI, APSP, HI, and CA IOUs 
encouraged DOE to pursue a negotiated rulemaking for dedicated-purpose 
pool pumps. (Docket. No. EERE-2015-BT-STD-0008, APSP, No. 10 at p. 2; 
HI, No. 8 at p. 2; CA IOUs, No. 11 at p. 2) Consistent with feedback 
from these interested parties, DOE began a process through the ASRAC to 
charter a working group to recommend energy conservation standards and 
a test procedure for dedicated-purpose pool pumps rather than 
continuing down the traditional notice and comment route that DOE had 
already begun. (Docket No. EERE-2015-BT-STD-0008) On August 25, 2015, 
DOE published a notice of intent to establish a working group for 
dedicated-purpose pool pumps (the DPPP Working Group) 80 FR 51483. The 
initial DPPP Working Group charter allowed for 3 months of DPPP Working 
Group meetings to establish the scope, metric, definitions, and test 
procedure for dedicated-purpose pool pumps. The charter reserved the 
discussion of standards for a later set of meetings, after the working 
group produced a term sheet recommending a scope, metric, definitions, 
and test procedure for DPPPs. (Docket No. EERE-2013-BT-NOC-0005, No. 56 
at p. 27) On October 15, 2015, DOE published a notice of public open 
meetings of the DPPP Working Group to establish three additional 
meetings under the initial charter. 80 FR 61996. DOE selected the 
members of the DPPP Working Group to ensure a broad and balanced array 
of interested parties and expertise, including representatives from 
efficiency advocacy organizations and manufacturers, as well as one 
representative from a state government organization. Additionally, one 
member from ASRAC and one DOE representative were part of the group. 
Table II-1 lists the 13 members of the DPPP Working Group and their 
affiliations.

         Table II-1--DPPP Working Group Members and Affiliations
------------------------------------------------------------------------
            Member                  Affiliation          Abbreviation
------------------------------------------------------------------------
John Caskey..................  National Electrical    NEMA.
                                Manufacturers
                                Association (and
                                ASRAC
                                representative).
John Cymbalsky...............  U.S. Department of     DOE.
                                Energy.
Kristin Driskell.............  California Energy      CEC.
                                Commission.
Scott Durfee.................  Nidec Motor            Nidec.
                                Corporation.
Jeff Farlow..................  Pentair Aquatic        Pentair.
                                Systems.
Gary Fernstrom...............  California Investor-   CA IOUs.
                                Owned Utilities.
                               (PG&E, SDG&E, SCG,
                                and SCE).
Patrizio Fumagalli...........  Bestway USA, Inc.....  Bestway.
Paul Lin.....................  Regal Beloit           Regal.
                                Corporation.
Joanna Mauer.................  Appliance Standards    ASAP.
                                Awareness Project.
Ray Mirzaei..................  Waterway Plastics....  Waterway.
Doug Philhower...............  Hayward Industries,    Hayward.
                                Inc.
Shajee Siddiqui..............  Zodiac Pool Systems,   Zodiac.
                                Inc.
Meg Waltner..................  Natural Resources      NRDC.
                                Defense Council.
------------------------------------------------------------------------


[[Page 5658]]

    The DPPP Working Group commenced negotiations at an open meeting 
between September 30 and October 1, 2015, and then held three 
additional meetings to discuss scope, metrics, and the test 
procedure.\16\ The DPPP Working Group completed its initial charter on 
December 8, 2015, with a consensus vote to approve a term sheet 
containing recommendations to DOE on scope, metric, and the basis of 
test procedure (``December 2015 DPPP Working Group 
recommendations'').\17\ The term sheet containing these recommendations 
is available in the DPPP Working Group docket. (Docket No. EERE-2015-
BT-STD-0008, No. 51) ASRAC subsequently voted unanimously to approve 
the December 2015 DPPP Working Group recommendations during its January 
20, 2016 meeting. (Docket No. EERE-2015-BT-STD-0008, No. 0052) The 
December 2015 DPPP Working Group recommendations pertinent to the test 
procedure and metric are discussed in section III.C of this document 
and reflected in DOE's DPPP test procedure final rule, issued in 
December 2016.\18\ DOE's test procedure for dedicated-purpose pool 
pumps appears at title 10 of the Code of Federal Regulations (CFR) part 
431, subpart Y, appendix B.
---------------------------------------------------------------------------

    \16\ Details of the negotiations sessions can be found in the 
public meeting transcripts that are posted to the docket for the 
Working Group (www.regulations.gov/#!docketDetail;D=EERE-2015-BT-
STD-0008).
    \17\ The ground rules of the DPPP Working Group define consensus 
as no more than three negative votes. (Docket No. EERE-2015-BT-0008-
0016 at p. 3) Abstention was not construed as a negative vote.
    \18\ See https://www1.eere.energy.gov/buildings/appliance_standards/standards.aspx?productid=41.
---------------------------------------------------------------------------

    At the January 20, 2016, ASRAC meeting, the DPPP Working Group also 
requested more time to discuss potential energy conservation standards 
for dedicated-purpose pool pumps. In response, ASRAC recommended that 
the DPPP Working Group continue its work in a second phase of 
negotiations to recommend potential energy conservation standards for 
dedicated-purpose pool pumps. (Docket No. EERE-2013-BT-NOC-0005, No. 71 
at pp. 20-52) The second phase of meetings commenced on March 21, 2016 
(81 FR 10152, 10153) and concluded on June 23, 2016, with approval of a 
second term sheet (June 2016 DPPP Working Group recommendations). This 
term sheet contained DPPP Working Group recommendations on performance-
based energy conservation standard levels, scope of such standards, 
certain prescriptive requirements, certain labeling requirements, 
certain definitions, and certain amendments to its previous test 
procedure recommendations. (Docket No. EERE-2015-BT-STD-0008, No. 82) 
ASRAC subsequently voted unanimously to approve the June 2016 DPPP 
Working Group recommendations during a July 29, 2016 meeting. (Docket 
No. EERE-2013-BT-NOC-0005, No. 87) The energy conservation standards, 
definitions, and prescriptive requirements established in this direct 
final rule directly reflect the June 2016 DPPP Working Group 
recommendations.
    In this direct final rule, DOE refers to both formal 
recommendations of the DPPP Working Group, as well as informal 
discussion and suggestions that were not formally recommended. All 
references to approved recommendations are specified with a citation to 
the June 2016 DPPP Working Group term sheet and noted with the 
recommendation number (e.g., Docket No. EERE-2015-BT-STD-0008, No. #82 
Recommendation #X at p. Y); all references to discussions or 
suggestions of the DPPP Working Group not found in the June 2016 DPPP 
Working Group recommendations will have a citation to meeting 
transcripts and the commenter, if applicable (e.g., Docket No. EERE-
2015-BT-STD-0008, [Organization], No. X at p. Y).
    In this direct final rule, DOE also refers to certain submitted 
comments pertaining to the 2015 RFI that have to do with energy 
conservation standards (e.g., Docket No. EERE-2015-BT-STD-0008, No. X 
at p. Y). Any RFI comments related to the test procedure or 
informational in nature are not included here. DOE notes that many of 
the interested parties that submitted comments pertaining to the 2015 
RFI later became members of the DPPP Working Group, or in the case of 
APSP, several of their members became members of the Working Group. As 
such, the concerns of these commenters were fully discussed as part of 
the group's meetings, and their positions may have changed as a result 
of the compromises inherent in a negotiation. Table II-2 lists the RFI 
commenters, as well as whether they participated in the DPPP Working 
Group.

                   Table II-2--List of RFI Commenters
------------------------------------------------------------------------
                                                           DPPP working
                        Commenter                          group member
------------------------------------------------------------------------
APSP....................................................             No.
CA IOU..................................................            Yes.
Hydraulic Institute.....................................             No.
Ms. Newman..............................................             No.
NEMA....................................................            Yes.
River City Pool and Spa.................................             No.
------------------------------------------------------------------------

III. General Discussion

A. Consensus Agreement

    As discussed in section II.B, DOE established a working group to 
negotiate a test procedure and energy conservation standards for 
dedicated-purpose pool pumps. On June 23, 2016, the Working Group 
reached unanimous consensus on a term sheet related to performance-
based energy conservation standards, scope of such standards, certain 
definitions, certain prescriptive requirements, certain labeling 
requirements, and certain test procedure aspects for dedicated-purpose 
pool pumps. This term sheet included the following recommendations 
related to energy conservation standards: \19\
---------------------------------------------------------------------------

    \19\ Note that the recommendations appear as-written in the June 
2016, Working Group recommendation (https://www.regulations.gov/document?D=EERE-2015-BT-STD-0008-0082); i.e., all text and tables 
are verbatim.
---------------------------------------------------------------------------

    Recommendation #1. Each dedicated-purpose pool pump shall be 
required to meet the applicable minimum energy efficiency standards 
(WEF) set forth in the following table on and after July 19, 2021:

[[Page 5659]]

[GRAPHIC] [TIFF OMITTED] TR18JA17.014

    The working group does not recommend standards for: (1) Waterfall 
pumps of any size or (2) self-priming and non-self-priming pool filter 
pumps greater than or equal to 2.5 HHP.
    All instances of HHP refer to hydraulic horsepower on Curve C at 
Max Speed.\20\
---------------------------------------------------------------------------

    \20\ The test procedure final rule contains a detailed 
discussion of the system curves used in pump testing, and section 
IV.A.1.c of this document describes how system curve C defines the 
relationship between the power, head, and flow of a pump.
---------------------------------------------------------------------------

    Recommendation #2. On and after July 19, 2021, integral cartridge-
filter pool pumps and integral sand-filter pool pumps must be 
distributed in commerce with a timer. Timer may be integral to the pump 
or a separate component that is shipped with the pump.
    Recommendation #3. The scope of the recommended standards for self-
priming pool filter pumps are only applicable to self-priming pool 
filter pumps served by single-phase power.
    The recommended test procedure and reporting requirements would be 
applicable to all self-priming pool filter pumps (served by single- and 
three-phase power).
    The recommended hydraulic horsepower limitation (<2.5 hydraulic hp) 
still applies.
    Recommendation #4. For the purposes of establishing compliance with 
the standards for integral cartridge-filter and integral sand-filter 
pool pumps discussed in Recommendation #2, pool pump timer is defined 
as follows:
    Pool pump timer means a pool pump control that automatically turns 
off a dedicated-purpose pool pump after a run-time of no longer than 10 
hours.
    The recommended definition captures the intent of the working group 
and should be adopted as-written or as modified in a manner that 
captures the same intent.
    Recommendation #6A. All dedicated-purpose pool pumps with freeze 
protection controls distributed in commerce with the pump shall be 
shipped with freeze protection disabled or with the following default, 
user-adjustable settings:
    1. The default dry-bulb air temperature setting is no greater than 
40 [deg]F
    2. The default run time setting shall be no greater than 1 hour 
(before the temperature is rechecked); and
    3. The default motor speed shall not be more than \1/2\ of the 
maximum available speed
    As part of certification reporting, manufacturers must include the 
default dry-bulb air temperature setting (in [deg]F), default run time 
setting (in minutes), and default motor speed (in rpm).
    (Docket No. EERE-2015-BT-STD-0008, No. 82) This term sheet was 
ultimately submitted to, and accepted by the ASRAC, on July 29, 2016 
(Docket No. EERE-2013-BT-NOC-0005, No. 87). All recommendations not 
shown here are related to test procedure or certification and were 
addressed in the recently issued test procedure final rule.
    After carefully considering the consensus recommendations submitted 
by the DPPP Working Group and adopted by ASRAC related to energy 
conservation standards for dedicated-purpose pool pumps, DOE has 
determined that these recommendations, submitted in the previously 
discussed term sheet, comprise a statement submitted by interested 
persons who are fairly representative of relevant points of view on 
this matter. If compliant with certain statutory requirements, the 
recommendations could result in issuance of a direct final rule. In 
reaching this determination, DOE considered that the DPPP Working 
Group, in conjunction with ASRAC members who approved the 
recommendations, consisted of representatives of manufacturers of the 
covered equipment at issue, States, and efficiency advocates--all of 
which are groups specifically identified by Congress as relevant 
parties to any consensus recommendation. (42 U.S.C. 6295(p)(4)(A) and 
6316(a)) As discussed above, the term sheet was signed and submitted by 
a broad cross-section of interests, including the manufacturers who 
produce the subject equipment, environmental and energy-efficiency 
advocacy organizations, electric utility companies, and a member 
representing a State.\21\ In addition, the ASRAC Committee approving 
the DPPP Working Group's recommendations included at least two members 
representing States, one representing the National Association of State 
Energy Officials (NASEO) and one representing the State of 
California.\22\ By explicit language of the statute, the Secretary has 
the discretion to determine when a joint recommendation for an energy 
or water conservation standard has met the requirement for 
representativeness (i.e., ``as determined by the Secretary''). (42 
U.S.C. 6295(p) (For today's direct final rule, DOE has determined that 
the DPPP working group represents all relevant points of view of 
interested parties.
---------------------------------------------------------------------------

    \21\ This individual was Kristen Driskell (CEC).
    \22\ These individuals were Deborah E. Miller (NASEO) and David 
Hungerford (CEC).
---------------------------------------------------------------------------

    Pursuant to 42 U.S.C. 6295(p)(4), the Secretary must also determine 
whether a jointly submitted recommendation for an energy or water 
conservation standard satisfies 42 U.S.C. 6295(o) or 42 U.S.C. 
6313(a)(6)(B), as applicable. In making this determination, DOE has 
conducted an analysis to evaluate whether the potential energy 
conservation standards under consideration would meet these 
requirements. This evaluation is the same comprehensive approach that 
DOE typically conducts whenever it considers potential energy 
conservation standards for a given type of product or equipment. DOE 
applies the same principles to any consensus recommendations it may 
receive to satisfy its statutory obligation to ensure that any energy 
conservation standard it adopts achieves the maximum improvement in 
energy efficiency that is technologically feasible and economically 
justified and will result in

[[Page 5660]]

significant conservation of energy. Upon review, the Secretary 
determined that the term sheet submitted in the dedicated-purpose pool 
pump rulemaking comports with the standard-setting criteria set forth 
under 42 U.S.C. 6295(o). Accordingly, the consensus-recommended 
efficiency levels were included as Trial Standard Level (TSL) 3 for 
dedicated-purpose pool pumps in this rule (see section V.A for 
descriptions of all of the considered TSLs). Details regarding how the 
consensus-recommended TSL complies with the standard-setting criteria 
are discussed and demonstrated in the relevant sections throughout this 
document.
    In sum, as the relevant criteria under 42 U.S.C. 6295(p)(4) have 
been satisfied, and the Secretary has determined that it is appropriate 
to adopt the consensus-recommended energy conservation standards for 
dedicated-purpose pool pumps through this direct final rule.
    As required by the same statutory provision, DOE also is 
simultaneously publishing a notice of proposed rulemaking (NOPR) 
proposing that the identical standard levels contained in this direct 
final rule be adopted. Consistent with the statute, DOE is providing a 
110-day public comment period on the direct final rule. While DOE 
typically provides a comment period of 60 days on proposed standards, 
DOE is providing a 110-day comment period for this NOPR, which is the 
same length as the comment period for the direct final rule. Based on 
the comments received during this period, the direct final rule will 
either become effective or DOE will withdraw it if one or more adverse 
comments is received and if DOE determines that those comments, when 
viewed in light of the rulemaking record related to the direct final 
rule, provide a reasonable basis for withdrawal of the direct final 
rule and for DOE to continue this rulemaking under the NOPR. Receipt of 
an alternative joint recommendation may also trigger a DOE withdrawal 
of the direct final rule in the same manner. 42 U.S.C. 6295(p)(4)(C). 
Typical of other rulemakings, it is the substance, rather than the 
quantity, of comments that will ultimately determine whether a direct 
final rule will be withdrawn. To this end, the substance of any adverse 
comment(s) received will be weighed against the anticipated benefits of 
the jointly submitted recommendations and the likelihood that further 
consideration of the comment(s) would change the results of the 
rulemaking. To the extent an adverse issue had been previously raised 
and addressed in the rulemaking proceeding, such a submission will not 
typically provide a basis for withdrawal of a direct final rule. Under 
the statute, withdrawal would occur by the 120th day after the direct 
final rule's publication.

B. Compliance Date

    EPCA does not prescribe a lead time for pumps, or the number of 
years between the date of publication of a final standards rule and the 
date on which manufacturers must comply with the new standard. The DPPP 
Working Group recommended that the standards for dedicated-purpose pool 
pumps be applicable 54 months following publication of the direct final 
rule in the Federal Register. (EERE-2015-BT-STD-0008, No. 51, 
Recommendations #1 and #2 at pp. 1-2) DOE has adopted this date for 
this direct final rule.

C. Test Procedure

    This section discusses DOE's requirements with respect to test 
procedures as well as summarizes the test procedure for dedicated-
purpose pool pumps adopted by DOE.
    EPCA sets forth generally applicable criteria and procedures for 
DOE's adoption and amendment of test procedures. (42 U.S.C. 6314) 
Manufacturers of covered equipment must use these test procedures to 
certify to DOE that their equipment complies with energy conservation 
standards and to quantify the efficiency of their equipment. As noted, 
in December 2016, DOE issued the DPPP test procedure final rule to 
establish test procedures for dedicated-purpose pool pumps.\23\ The 
test procedure for dedicated-purpose pool pumps will appear at title 10 
of the CFR part 431, subpart Y, appendix B.
---------------------------------------------------------------------------

    \23\ See https://www1.eere.energy.gov/buildings/appliance_standards/standards.aspx?productid=41.
---------------------------------------------------------------------------

    DOE notes that 10 CFR part 430, subpart C, Appendix A established 
procedures, interpretations, and policies to guide DOE in the 
consideration and promulgation of new or revised appliance efficiency 
standards under EPCA. (See section 1.) These procedures are a general 
guide to the steps DOE typically follows in promulgating energy 
conservation standards. The guidance recognizes that DOE can and will, 
on occasion, deviate from the typical process. (See 10 CFR part 430, 
subpart C, appendix A, section 14(a)) In this particular instance, DOE 
deviated from its typical process by conducting a negotiated rulemaking 
process, per the request of multiple key stakeholders and as chartered 
by ASRAC. The DPPP Working Group initially met four times and 
successfully reached consensus on the recommended test procedure and 
metric for different varieties of dedicated-purpose pool pumps. 
Following ASRAC approval, the DPPP Working Group commenced a second 
phase of meetings, resulting in consensus on the recommended energy 
conservation standards as well as certain additional test procedure 
recommendations. These recommendations are contained in the December 
2015 and June 2016 DPPP Working Group term sheets, which ASRAC adopted. 
(Docket No. EERE-2015-BT-STD-0008, No. 51 and 82, respectively)
    As discussed in section III.A, the June 2016 term sheet meets the 
criteria of a consensus recommendation, and DOE has determined that 
these recommendations are in accordance with the statutory requirements 
of 42 U.S.C. 6295(p)(4) (and 6316(a)) for the issuance of a direct 
final rule. DOE ultimately adopted the test procedure provisions and 
recommended standard levels that the DPPP Working Group included in the 
term sheets, which illustrates that DOE's deviations from the typical 
rulemaking process in this instance did not adversely impact the 
manufacturers' ability to understand and provide input to DOE's 
rulemaking process. The process that DOE used, in this case, was a more 
collaborative negotiated rulemaking effort resulting in an agreement on 
recommended standard levels, which DOE is fully implementing in this 
direct final rule.
    Consistent with the recommendations of the DPPP Working Group, in 
September 2016 DOE published a test procedure notice of proposed 
rulemaking proposing (September 2016 DPPP TP NOPR) to propose new 
definitions, a new test procedure, new sampling and rating 
requirements, and new enforcement provisions for dedicated-purpose pool 
pumps. DOE held a public meeting on September 26, 2016, to discuss and 
request public comment on the September 2016 DPPP test procedure NOPR. 
Subsequently, DOE published a test procedure final rule reflecting 
relevant recommendations of the DPPP Working Group, as well as input 
from interested parties received in response to the September 2016 DPPP 
test procedure NOPR. (Docket No. EERE-2016-BT-TP-0002)
    In the test procedure final rule, DOE prescribed a test procedure 
for measuring the WEF for certain varieties of dedicated-purpose pool 
pumps. Specifically, the adopted test procedure applies only to self-
priming and non-

[[Page 5661]]

self-priming pool filter pumps,\24\ waterfall pumps, and pressure 
cleaner booster pumps. The test procedure does not apply to integral 
cartridge filter pool pumps, integral sand filter pool pumps, storable 
electric spa pumps, or rigid electric spa pumps.
---------------------------------------------------------------------------

    \24\ DOE's DPPP test procedure applies to certain varieties of 
dedicated-purpose pool pumps that are served by both single-phase 
and three-phase power, whereas this direct final rule only 
establishes energy conservation standards for self-priming pool 
filter pumps served by single-phase power.
---------------------------------------------------------------------------

    For those applicable varieties of dedicated-purpose pool pumps, DOE 
prescribed methods to measure and calculate WEF, which is determined as 
a weighted average of water flow rate over the input power to the 
dedicated-purpose pool pump at different load points, depending on the 
variety of dedicated-purpose pool pump and the number of operating 
speeds with which it is distributed in commerce. The equation for WEF 
is shown in Equation 1:
[GRAPHIC] [TIFF OMITTED] TR18JA17.000

Where:

WEF = weighted energy factor in kgal/kWh;
wi = weighting factor at each load point i;
Qi = flow at each load point i in gal/min;
Pi = input power to the motor (or controls, if present) 
at each load point i in W;
i = load point(s), defined uniquely for each DPPP variety; and
n = number of load point(s), defined uniquely for each speed 
configuration.

    DOE prescribed unique load points for the different varieties and 
speed configurations of dedicated-purpose pool pumps, as recommended by 
the DPPP Working Group. The load points (i) and weights (wi) used in 
determining WEF for each pump variety are presented in Table III-1.

[[Page 5662]]

[GRAPHIC] [TIFF OMITTED] TR18JA17.001

    The test procedure final rule also contains methods to determine 
the self-priming capability of pool filter pumps to effectively 
differentiate self-priming and non-self-priming pool filter pumps, and 
the rated hydraulic horsepower,

[[Page 5663]]

both of which are necessary to determine the applicable energy 
conservation standard for certain varieties of dedicated-purpose pool 
pumps.

D. Scope

    In the test procedure final rule, DOE adopted the following 
definition for dedicated-purpose pool pumps, consistent with that 
recommended by the DPPP Working Group (EERE-2015-BT-STD-0008, No. 51 
Recommendation #4 at p. 3):
    ``Dedicated-purpose pool pump'' means a self-priming pool filter 
pump, a non-self-priming pool filter pump, a waterfall pump, a pressure 
cleaner booster pump, an integral sand filter pool pump, an integral 
cartridge filter pool pump, a storable electric spa pump, or a rigid 
electric spa pump.
    The test procedure final rule also specifically defines several 
varieties of dedicated-purpose pool pumps, some of which are included 
in the scope of energy conservation standards. The following sections 
describe the scope for the adopted performance-based and prescriptive 
energy conservation standards, respectively, for dedicated-purpose pool 
pumps.
1. Performance-Based Energy Conservation Standards
    The DPPP Working Group recommended energy conservation standards 
for a subset of dedicated-purpose pool pumps to which the test 
procedure applies. Specifically, while the test procedure applies to 
self-priming pool filter pumps, non-self-priming pool filter pumps, 
pressure cleaner booster pumps, and waterfall pumps, the DPPP Working 
Group recommended energy conservation standards only for the first 
three categories, excepting waterfall pumps due to limited economic 
benefits. (EERE-2015-BT-STD-0008, No. 82 Recommendation #2 at pp. 1-2). 
DOE agrees with the reasoning of the DPPP Working Group and is 
establishing energy conservation standards in this direct final rule 
only for those pump varieties recommended by the DPPP Working Group. 
Further detail on the economic benefits and burdens for all dedicated-
purpose pool pump varieties analyzed, including waterfall pumps, can be 
found in section V.B. The scope of the performance-based energy 
conservation standards established in this document is summarized in 
Table III-2.

 Table III--2 Scope of Performance-Based Standards for Dedicated-Purpose
                               Pool Pumps
------------------------------------------------------------------------
                                    Hydraulic        Power that pump is
         Pump variety            horsepower range        served by
------------------------------------------------------------------------
Self-priming pool filter pump.  All pumps less     Single Phase.
                                 than 2.5 hhp.
Non-self-priming pool filter    All pumps less     No Restriction.
 pumps.                          than 2.5 hhp.
Pressure cleaner booster pumps  No Restriction...  No Restriction.
------------------------------------------------------------------------

    DOE notes that in response to the May 2015 DPPP RFI, HI suggested 
that ``auxiliary pool pumps [now referred to as pressure cleaner 
booster pumps] below 1 hp should be excluded because it will be 
difficult to adequately differentiate them from other CIP ESCC pumps 
below 1 hp. Including auxiliary pool pumps below 1 hp could potentially 
extend the scope of the CIP rulemaking outside the ASRAC working group 
negotiation. [sic]'' (Docket. No. EERE-2015-BT-STD-0008, HI, No. 8 at 
p. 3) DOE acknowledges the concerns raised by HI, and clarifies that in 
test procedure rulemaking, DOE proposed, received comment on, and 
ultimately established, a definition for pressure cleaner booster pumps 
that effectively differentiated these pumps from end suction close-
coupled pumps less than 1 horsepower. Specifically, pressure cleaner 
booster pump was defined to mean an end suction, dry rotor pump 
designed and marketed for pressure-side pool cleaner applications, and 
which may be UL listed under ANSI/UL 1081-2014, ``Standard for Swimming 
Pool Pumps, Filters, and Chlorinators.'' Because DOE was able to, in 
the test procedure final rule, develop a definition to adequately 
differentiate pressure cleaner booster pumps from other end suction 
close-coupled pump, DOE will not exclude pressure cleaner booster pumps 
from energy conservation standards, as recommended by HI.
    As shown in Table III-2, the DPPP Working Group recommended a scope 
of standards that restricts self-priming and non-self-priming pool 
filter pumps to those with a hydraulic output power less than 2.5 
horsepower (Docket No. EERE-2015-BT-STD-0008, No. 82, Recommendation #1 
at p. 1). DOE notes that the DPPP Working Group first discussed a 
cutoff point of 2.5 hydraulic horsepower in the March 21, 2016 DPPP 
Working Group meeting. Initially, the DPPP Working Group members were 
confused about whether the discussion of pump capacity was using terms 
of hydraulic horsepower, nameplate horsepower, or shaft horsepower. DOE 
clarified that capacity discussions are in terms of hydraulic 
horsepower. (Docket No. EERE-2015-BT-STD-0008, No. 94 at p. 38-42) In a 
subsequent April 19 Working Group meeting, DOE again clarified that the 
scope metric is in terms of hydraulic horsepower. (Docket No. EERE-
2015-BT-STD-0008, No. 79 at p. 34-39)
    Ultimately, the DPPP Working Group recommendation for horsepower 
limitations is consistent with the scope of self-priming and non-self-
priming pool filter pumps established in the test procedure final rule. 
The DPPP Working Group recommended this restriction based on the 
combination of three key reasons: (1) Low shipments volume, (2) low 
potential for energy savings (due to the prevalence of motors already 
regulated by DOE), and (3) lack of performance data. (Docket No. EERE-
2015-BT-STD-0008, No. 79 at p. 36-47) DOE agrees with the reasoning of 
the DPPP Working Group and is adopting this scope restriction in this 
direct final rule.
    DOE notes that prior to the formation of the DPPP Working Group, 
APSP responded to the May 2015 DPPP RFI and recommended that DOE define 
scope using total horsepower, noting that it was also open to 
discussing and developing alternative or additional methods in which we 
can rate covered pump systems by total input power draw. (Docket. No. 
EERE-2015-BT-STD-0008, APSP, No. 10 at p. 5) APSP provided no further 
rationale for their option. APSP's recommendation conflicts with the 
use of hydraulic horsepower recommended by the DPPP Working Group and 
discussed in the previous paragraphs. DOE notes that five members of 
APSP (Waterway Plastics, Hayward Industries, Inc., Zodiac Pool Systems, 
Inc., Pentair Aquatic Systems, and Bestway USA, Inc.) participated in 
the DPPP Working Group and unanimously supported the

[[Page 5664]]

term sheet recommendations enumerated in the previous paragraphs. 
(EERE-2015-BT-STD-0008, No. 51) Further, DOE notes that a 
representative of APSP was present at the final DPPP Working Group 
meeting, and offered no public comment in opposition to the term sheet 
adopted by the DPPP Working Group. (Docket No. EERE-2015-BT-STD-0008, 
June 23 DPPP Working Group Meeting, No. 92, at p. 3) For these reasons, 
DOE believes that the interests of APSP were sufficiently satisfied by 
the recommendations unanimously agreed upon by the DPPP Working 
Group.Also as shown in Table III-2, the DPPP Working Group recommended 
that the scope of the recommended standards for self-priming pool 
filter pumps only be applicable to self-priming pool filter pumps 
served by single-phase power. The DPPP Working Group clarified that the 
recommended test procedure and reporting requirements would still be 
applicable to all self-priming pool filter pumps--both those served by 
single-phase power and those served by three-phase power. (Docket No. 
EERE-2015-BT-STD-0008, No. 82 Recommendations #3 at p. 2) Regardless of 
whether the pump is supplied by single- or three-phase power, the 
recommended hydraulic horsepower limitation of 2.5 rated hydraulic 
horsepower would still apply to such self-priming pool filter pumps.
    The DPPP Working Group recommended this restriction based on low 
shipments volume and low potential for energy savings (due to the 
prevalence of motors already regulated by DOE) (Docket No. EERE-2015-
BT-STD-0008, No. 91 at p. 171). DOE agrees with the reasoning of the 
DPPP Working Group and is adopting this scope restriction in this 
direct final rule.
    Finally, consistent with the test procedure scope, standards do not 
apply to submersible pumps. In the test procedure final rule, DOE 
defined a submersible pump as a pump that is designed to be operated 
with the motor and bare pump fully submerged in the pumped liquid. As 
discussed in the test procedure final rule, DOE determined that some 
end suction submersible pond pumps may meet the definition of self-
priming or non-self-priming pool filter pump, but were not reviewed by 
the DPPP Working Group and were not intended by the DPPP Working Group 
to be in the scope of this rulemaking. In order to exclude these pumps 
from this regulation, DOE excluded submersible pumps from the scope of 
the test procedure final rule, and is in turn excluding them from the 
scope of this direct final rule.
2. Prescriptive Energy Conservation Standards
    Consistent with the DPPP Working Group recommendations, DOE is 
setting prescriptive energy conservation standards for integral 
cartridge filter pool pumps and integral sand filter pool pumps. This 
equipment is specifically defined in the test procedure final rule.
    DOE notes that before the formation of the DPPP Working Group, APSP 
responded to the May 2015 DPPP RFI and generally recommended that DOE 
pursue a performance-based metric versus a prescriptive regulation. 
(Docket. No. EERE-2015-BT-STD-0008, APSP, No. 10 at p. 11) APSP 
provided no further rationale for their option. APSP's recommendation 
conflicts with the mix of performance-based and prescriptive standards 
recommended by the DPPP Working Group and enumerated in section III.A. 
DOE notes that five members of APSP (Waterway Plastics, Hayward 
Industries, Inc., Zodiac Pool Systems, Inc., Pentair Aquatic Systems, 
and Bestway USA, Inc.) participated in the DPPP Working Group and 
unanimously supported the term sheet recommendations enumerated in 
section III.A. (EERE-2015-BT-STD-0008, No. 51) Further, DOE notes that 
a representative of APSP was present at the final DPPP Working Group 
meeting, and offered no public comment in opposition to the term sheet 
adopted by the DPPP Working Group. (Docket No. EERE-2015-BT-STD-0008, 
June 23 DPPP Working Group Meeting, No. 92, at p. 3) For these reasons, 
DOE believes that the interests of APSP were sufficiently satisfied by 
the recommendations unanimously agreed upon by the DPPP Working Group.
3. Dedicated-Purpose Pool Pump Motor
    In response to the May 2015 DPPP RFI, NEMA recommended that DOE 
consider proposing a replacement motor standard for pool pumps, as has 
been done in the California Title 20 Appliance Efficiency Program. NEMA 
asserted that the replacement pool filter pump motor subject is one 
that requires nationwide uniformity of compliance and enforcement 
through specific language regarding replacement motors within the pool 
filter pump system. (Docket. No. EERE-2015-BT-STD-0008, NEMA, No. 9 at 
p. 2) DOE acknowledges that replacement dedicated-purpose pool pump 
motors may have an impact on national energy consumption. However, 
establishing energy conservation standards or prescriptive requirements 
for dedicated-purpose pool pump motors is outside of the scope of 
authority of this rulemaking, as replacement motors do not meet the 
definition of ``dedicated-purpose pool pump'' or ``pump,'' as defined 
in part 431 of title 10 of the Code of Federal Regulations. For this 
reason, in this direct final rule, DOE will not establish energy 
conservation standards for replacement dedicated-purpose pool pump 
motors.
    However, DOE notes that in the test procedure final rule, DOE 
established an optional test procedure for rating replacement 
dedicated-purpose pool pump motors. DOE believes that this optional 
test procedure will aid the industry in moving towards uniformity in 
the rating and labeling of replacement dedicated-purpose pool pump 
motors.

E. Technological Feasibility

1. General
    In each energy conservation standards rulemaking, DOE conducts a 
screening analysis based on information gathered on all current 
technology options and prototype designs that could improve the 
efficiency of the products or equipment that are the subject of the 
rulemaking. As the first step in such an analysis, DOE develops a list 
of technology options for consideration in consultation with 
manufacturers, industry experts, and other interested parties. DOE then 
determines which of those means for improving efficiency are 
technologically feasible. DOE considers technologies incorporated in 
commercially available products or in working prototypes to be 
technologically feasible. 10 CFR part 430, subpart C, appendix A, 
section 4(a)(4)(i).
    After DOE has determined that particular technology options are 
technologically feasible, it further evaluates each technology option 
in light of the following additional screening criteria: (1) 
Practicability to manufacture, install, and service; (2) adverse 
impacts on product utility or availability; and (3) adverse impacts on 
health or safety. 10 CFR part 430, subpart C, appendix A, section 
4(a)(4)(ii)-(iv) Additionally, it is DOE policy not to include in its 
analysis any proprietary technology that is a unique pathway to 
achieving a certain efficiency level. Section IV.B of this notice 
discusses the results of the screening analysis for dedicated-purpose 
pool pumps, particularly the designs DOE considered, those it screened 
out, and those that are the basis for the standards considered in this 
rulemaking. For further details on the screening analysis for this 
rulemaking, see chapter 4 of the direct

[[Page 5665]]

final rule technical support document (TSD).
2. Maximum Technologically Feasible Levels
    When DOE proposes to adopt or amend a standard for a type or class 
of covered equipment, it must determine the maximum improvement in 
energy efficiency or maximum reduction in energy use that is 
technologically feasible for such product. (42 U.S.C. 6295(p)(1)) and 
6316(a)) Accordingly, in the engineering analysis, DOE determined the 
maximum technologically feasible (max-tech) improvements in energy 
efficiency for dedicated-purpose pool pumps based on the most efficient 
equipment available on the market for certain equipment classes, and 
theoretical maximum attainable efficiency for others. The max-tech 
levels that DOE determined for this rulemaking are described in section 
IV.C.4 of this direct final rule and in chapter 5 of the direct final 
rule TSD.

F. Energy Savings

1. Determination of Savings
    For each trial standard level (TSL), DOE projected energy savings 
from application of the TSL to pool pumps purchased in the 30-year 
period that begins in the year of compliance with any new standards 
(2021-2050).\25\ The savings are measured over the entire lifetime of 
equipment purchased in the 30-year analysis period. DOE quantified the 
energy savings attributable to each TSL as the difference in energy 
consumption between each standards case and the no-standards case. The 
no-standards case represents a projection of energy consumption that 
reflects how the market for equipment would likely evolve in the 
absence of energy conservation standards.
---------------------------------------------------------------------------

    \25\ DOE also presents a sensitivity analysis that considers 
impacts for equipment shipped in a 9-year period.
---------------------------------------------------------------------------

    DOE used its national impact analysis (NIA) spreadsheet model to 
estimate national energy savings (NES) from potential standards for 
pool pumps. The NIA spreadsheet model (described in section IV.H of 
this document) calculates energy savings in terms of site energy, which 
is the energy directly consumed by equipment at the locations where 
they are used. For electricity, DOE reports national energy savings in 
terms of primary energy savings, which is the savings in the energy 
that is used to generate and transmit the site electricity. DOE also 
calculates NES in terms of full-fuel-cycle (FFC) energy savings. The 
FFC metric includes the energy consumed in extracting, processing, and 
transporting primary fuels (i.e., coal, natural gas, petroleum fuels), 
and thus presents a more complete picture of the impacts of energy 
conservation standards.\26\ DOE's approach is based on the calculation 
of an FFC multiplier for each of the energy types used by covered 
products or equipment. For more information on FFC energy savings, see 
section IV.H.2 of this direct final rule.
---------------------------------------------------------------------------

    \26\ The FFC metric is discussed in DOE's statement of policy 
and notice of policy amendment. 76 FR 51282 (August 18, 2011), as 
amended at 77 FR 49701 (August 17, 2012).
---------------------------------------------------------------------------

G. Economic Justification

1. Specific Criteria
    As noted, EPCA provides seven factors to be evaluated in 
determining whether a potential energy conservation standard is 
economically justified. (42 U.S.C. 6295(o)(2)(B)(i)(I)(VII) and 
6316(a)) The following sections discuss how DOE has addressed each of 
those seven factors in this rulemaking.
a. Economic Impact on Manufacturers and Consumers
    In determining the impacts of a potential amended standard on 
manufacturers, DOE conducts a manufacturer impact analysis (MIA), as 
discussed in section IV.J. DOE first uses an annual cash-flow approach 
to determine the quantitative impacts. This step includes both a short-
term assessment--based on the cost and capital requirements during the 
period between when a regulation is issued and when entities must 
comply with the regulation--and a long-term assessment over a 30-year 
period. The industry-wide impacts analyzed include (1) INPV, which 
values the industry on the basis of expected future cash flows; (2) 
cash flows by year; (3) changes in revenue and income; and (4) other 
measures of impact, as appropriate. Second, DOE analyzes and reports 
the impacts on different types of manufacturers, including impacts on 
small manufacturers. Third, DOE considers the impact of standards on 
domestic manufacturer employment and manufacturing capacity, as well as 
the potential for standards to result in plant closures and loss of 
capital investment. Finally, DOE takes into account cumulative impacts 
of various DOE regulations and other regulatory requirements on 
manufacturers.
    For individual consumers, measures of economic impact include the 
changes in LCC and PBP associated with new or amended standards. These 
measures are discussed further in the following section. For consumers 
in the aggregate, DOE also calculates the national net present value of 
the economic impacts applicable to a particular rulemaking. DOE also 
evaluates the LCC impacts of potential standards on identifiable 
subgroups of consumers that may be affected disproportionately by a 
national standard.
b. Savings in Operating Costs Compared to Increase in Price (LCC and 
PBP)
    EPCA requires DOE to consider the savings in operating costs 
throughout the estimated average life of the covered product in the 
type (or class) compared to any increase in the price of, or in the 
initial charges for, or maintenance expenses of, the covered product 
that are likely to result from a standard. (42 U.S.C. 
6295(o)(2)(B)(i)(II) and 6316(a)) DOE conducts this comparison in its 
LCC and PBP analyses.
    The LCC is the sum of the purchase price of equipment (including 
its installation) and the operating cost (including energy, 
maintenance, and repair expenditures) discounted over the lifetime of 
the equipment. The LCC analysis requires a variety of inputs, such as 
equipment prices, equipment energy consumption, energy prices, 
maintenance and repair costs, equipment lifetime, and discount rates 
appropriate for consumers. To account for uncertainty and variability 
in specific inputs, such as equipment lifetime and discount rate, DOE 
uses a distribution of values, with probabilities attached to each 
value.
    The PBP is the estimated amount of time (in years) it takes 
consumers to recover the increased purchase cost (including 
installation) of more efficient equipment through lower operating 
costs. DOE calculates the PBP by dividing the change in purchase cost 
due to a more-stringent standard by the change in annual operating cost 
for the year in which compliance is required with standards.
    For its LCC and PBP analyses, DOE assumes that consumers will 
purchase the covered equipment in the first year of compliance with new 
standards. The LCC savings for the considered efficiency levels are 
calculated relative to the case that reflects projected market trends 
in the absence of new or amended standards. DOE's LCC and PBP analyses 
are discussed in further detail in section IV.F.
c. Energy Savings
    Although significant conservation of energy is a separate statutory 
requirement for adopting an energy conservation standard, EPCA requires 
DOE, in determining the economic

[[Page 5666]]

justification of a standard, to consider the total projected energy 
savings that are expected to result directly from the standard. (42 
U.S.C. 6295(o)(2)(B)(i)(III) and 6316(a)) As discussed in section IV.H, 
DOE uses the NIA spreadsheet model to project national energy savings.
d. Lessening of Utility or Performance of Equipment
    In establishing equipment classes, and in evaluating design options 
and the impact of potential standard levels, DOE evaluates potential 
standards that would not lessen the utility or performance of the 
considered equipment. (42 U.S.C. 6295(o)(2)(B)(i)(IV) and 6316(a)) DOE 
reviewed performance data and characteristics for dedicated-purpose 
pool pump models that are currently available on the market, including 
models that meet the standards adopted in this final rule and models 
that do not meet the standards adopted in this final rule. For these 
models, DOE examined characteristics such as the capacity, controls, 
and physical size of the pumps. DOE was unable to identify any DPPP 
features or associated end-user utility that would become unavailable 
following the adoption of the standards in this final rule. 
Consequently, DOE concludes that the standards adopted in this direct 
final rule would not reduce the utility or performance of the equipment 
subject to this rulemaking. DOE's assessment of available technology 
options (see section IV.A.6) discusses, in detail, the features and 
technologies associated with the select standard level.
e. Impact of Any Lessening of Competition
    EPCA directs DOE to consider the impact of any lessening of 
competition, as determined in writing by the Attorney General, which is 
likely to result from a standard. (42 U.S.C. 6295(o)(2)(B)(i)(V) and 
6316(a)) It also directs the Attorney General to determine the impact, 
if any, of any lessening of competition likely to result from a 
standard and to transmit such determination to the Secretary within 60 
days of the publication of a proposed rule, together with an analysis 
of the nature and extent of the impact. (42 U.S.C. 6295(o)(2)(B)(ii) 
and 6316(a)) DOE will transmit a copy of this direct final rule to the 
Attorney General with a request that the Department of Justice (DOJ) 
provide its determination on this issue. DOE will consider DOJ's 
comments on the rule in determining whether to proceed with the direct 
final rule. DOE will also publish and respond to the DOJ's comments in 
the Federal Register in a separate notice.
f. Need for National Energy Conservation
    DOE also considers the need for national energy and water 
conservation in determining whether a new or amended standard is 
economically justified. (42 U.S.C. 6295(o)(2)(B)(i)(VI) and 6316(a)) 
The energy savings from the adopted standards are likely to provide 
improvements to the security and reliability of the nation's energy 
system. Reductions in the demand for electricity also may result in 
reduced costs for maintaining the reliability of the Nation's 
electricity system. DOE conducts a utility impact analysis to estimate 
how standards may affect the nation's needed power generation capacity, 
as discussed in section IV.M.
    DOE maintains that environmental and public health benefits 
associated with the more efficient use of energy are important to take 
into account when considering the need for national energy 
conservation. The adopted standards are likely to result in 
environmental benefits in the form of reduced emissions of air 
pollutants and greenhouse gases (GHGs) associated with energy 
production and use. DOE conducts an emissions analysis to estimate how 
potential standards may affect these emissions, as discussed in section 
IV.K; the estimated emissions impacts are reported in section V.B.6 of 
this document. DOE also estimates the economic value of emissions 
reductions resulting from the considered TSLs, as discussed in section 
IV.L.
g. Other Factors
    In determining whether an energy conservation standard is 
economically justified, DOE may consider any other factors that the 
Secretary deems to be relevant. (42 U.S.C. 6295(o)(2)(B)(i)(VII) and 
6316(a)) To the extent DOE identifies any relevant information 
regarding economic justification that does not fit into the other 
categories described above, DOE could consider such information under 
``other factors.''
2. Significance of Savings
    To adopt standards for a covered product or equipment, DOE must 
determine that such action would result in significant energy savings. 
(42 U.S.C. 6295(o)(3)(B) and 6316(a)) Although EPCA does not define the 
term ``significant,'' in Natural Resources Defense Council v. 
Herrington, the U.S. Court of Appeals for the District of Columbia 
indicated that Congress intended ``significant'' energy savings in the 
context of EPCA to be savings that are not ``genuinely trivial.'' 768 
F.2d 1355, 1373 (D.C. Cir. 1985). The energy savings for all the TSLs 
considered in this rulemaking, including the adopted standards, are not 
trivial, and, therefore, DOE considers them ``significant'' within the 
meaning of section 325 of EPCA.
3. Rebuttable Presumption
    EPCA creates a rebuttable presumption that an energy conservation 
standard is economically justified if the additional cost to the 
consumer of a product that meets the standard is less than three times 
the value of the first year's energy savings resulting from the 
standard, as calculated under the applicable DOE test procedure. (42 
U.S.C. 6295(o)(2)(B)(iii)) DOE's LCC and PBP analyses generate values 
used to calculate the effect potential amended energy conservation 
standards would have on the payback period for consumers. These 
analyses include, but are not limited to, the 3-year payback period 
contemplated under the rebuttable-presumption test. In addition, DOE 
routinely conducts an economic analysis that considers the full range 
of impacts to consumers, manufacturers, the Nation, and the 
environment, as required under EPCA. (42 U.S.C. 6295(o)(2)(B)(i)) The 
results of this analysis serve as the basis for DOE's evaluation of the 
economic justification for a potential standard level (thereby 
supporting or rebutting the results of any preliminary determination of 
economic justification). The rebuttable presumption payback results are 
discussed in section V.B.1.cof this direct final rule.

IV. Methodology and Discussion of Related Comments

    This section addresses the rulemaking analyses DOE performed for 
this direct final rule. Separate subsections address each component of 
DOE's analyses.
    DOE used several analytical tools to estimate the impact of the 
standards considered in this document. The first tool is a spreadsheet 
that calculates the LCC savings and PBP of potential amended or new 
energy conservation standards. The national impacts analysis uses a 
second spreadsheet set that provides shipments forecasts and calculates 
national energy savings and net present value of total consumer costs 
and savings expected to result from potential energy conservation 
standards. DOE uses the third spreadsheet tool, the Government 
Regulatory Impact Model (GRIM), to assess manufacturer impacts of 
potential standards. These three spreadsheet tools

[[Page 5667]]

are available on the DOE Web site for this rulemaking: https://www1.eere.energy.gov/buildings/appliance_standards/standards.aspx?productid=67. Additionally, DOE used output from the 
Energy Information Administration (EIA)'s Annual Energy Outlook 2016 
(AEO2016), a widely known energy forecast for the United States, for 
the emissions and utility impact analyses.

A. Market and Technology Assessment

    DOE develops information in the market and technology assessment 
that provides an overall picture of the market for dedicated-purpose 
pool pumps, including purpose of the equipment, industry structure, 
manufacturers, market characteristics, and technologies used in the 
equipment. This activity includes both quantitative and qualitative 
assessments, based primarily on publicly available information (e.g., 
manufacturer specification sheets and industry publications) and data 
submitted by manufacturers, trade associations, and other stakeholders. 
The market and technology assessment for this rulemaking addresses: (1) 
Equipment classes, (2) manufacturers and industry structure, (3) 
existing efficiency programs, (4) shipments information, (5) market and 
industry trends, and (6) technologies or design options that could 
improve the energy efficiency of dedicated-purpose pool pumps. The key 
findings of DOE's market assessment are summarized below. See chapter 3 
of the direct final rule TSD for further discussion of the market and 
technology assessment.
1. Equipment Classes and Distinguishing Features
    When evaluating and establishing energy conservation standards, DOE 
divides covered equipment into equipment classes by the type of energy 
used, by capacity, or by 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) and 
6316(a))
    In the test procedure final rule, DOE defined different varieties 
of DPPP equipment. A pool filter pump is an end suction pump that 
either: (1) Includes an integrated basket strainer, or (2) does not 
include an integrated basket strainer, but requires a basket strainer 
for operation, as stated in manufacturer literature provided with the 
pump; and may be distributed in commerce connected to, or packaged 
with, a sand filter, removable cartridge filter, or other filtration 
accessory, as long as the bare pump and filtration accessory are 
connected with consumer-removable connections that allow the pump to be 
plumbed to bypass the filtration accessory for testing.
    A self-priming pool filter pump is a pool filter pump that is 
certified under NSF/ANSI 50-2015 to be self-priming or is capable of 
re-priming to a vertical lift of at least 5 feet with a true priming 
time less than or equal to 10 minutes, when tested in accordance with 
NSF/ANSI 50-2015, ``Equipment for Swimming Pools, Spas, Hot Tubs and 
Other Recreational Water Facilities.''
    A non-self-priming pool filter pump is a pool filter pump that is 
not certified under NSF/ANSI 50-2015 to be self-priming and is not 
capable of re-priming to a vertical lift of at least 5 feet with a true 
priming time less than or equal to 10 minutes, when tested in 
accordance with NSF/ANSI 50-2015.
    A pressure cleaner booster pump is an end suction, dry rotor pump 
designed and marketed for pressure-side pool cleaner applications, and 
which may be UL listed under ANSI/UL 1081-2014, ``Standard for Swimming 
Pool Pumps, Filters, and Chlorinators.''
    A waterfall pump is a pool filter pump with maximum head less than 
or equal to 30 feet, and a maximum speed less than or equal to 1,800 
rpm.
    An integral cartridge filter pool pump is a pump that requires a 
removable cartridge filter, installed on the suction side of the pump, 
for operation; and the pump cannot be plumbed to bypass the cartridge 
filter for testing.
    An integral sand filter pool pump is a pump distributed in commerce 
with a sand filter that cannot be bypassed for testing.
    The DPPP varieties defined above serve as the basis for the DPPP 
equipment classes established in this direct final rule. Further, the 
class of self-priming pool filter pumps is being subdivided into two 
classes based on pump capacity. In this direct final rule, DOE is 
establishing DPPP equipment classes based on the following performance-
related features:

 Strainer or filtration accessory
 self-priming ability
 pump capacity (flow, head, and horsepower)
 rotational speed

    Stakeholder comments regarding equipment classes, the specific 
separation of equipment classes based on the listed factors, and the 
final list of proposed equipment classes are discussed further in 
sections IV.A.1.a through IV.A.1.d.
a. Strainer or Filtration Accessory
    Dedicated-purpose pool pumps employ several different varieties of 
strainer and filtration accessories, each providing a different utility 
to the end user. As defined in the test procedure final rule, a pool 
filter pump either includes a basket strainer or requires a basket 
strainer for operation. A basket strainer is a specific component that 
the test procedure final rule defines as ``a perforated or otherwise 
porous receptacle that prevents solid debris from entering a pump, when 
mounted within a housing on the suction side of a pump. The basket 
strainer receptacle is capable of passing spherical solids of 1 mm in 
diameter, and can be removed by hand or with simple tools. Simple tools 
include but are not limited to a screwdriver, pliers, and an open-ended 
wrench.'' The basket strainer provides a direct utility to the pool 
filter pump end user, as it protects the pump from debris that would 
otherwise enter the impeller and cause damage to the pump. However, 
this utility comes at the cost of pump efficiency. The basket strainer 
has head-loss associated with it, which means a measurable amount of 
hydraulic power is lost as water traverses the basket strainer and the 
basket strainer housing. Ultimately, this reduces efficiency for pumps 
that include or require a basket strainer, compared to those that do 
not. Based on this relationship between end-user utility and achievable 
efficiency, DOE concludes that the presence of or requirement for a 
basket strainer is an appropriate feature to differentiate and 
establish pool filter pump equipment classes (including standard-size 
and small-size self-priming pool filter pumps, non-self-priming pool 
filter pumps, and waterfall pumps).
    Typically, if a pool utilizes a pool filter pump, the filtration of 
particulates less than 1mm in diameter takes place in a separate 
filtration device, which is either installed separately from the pump, 
or is attached to the pump and may be removed using simple tools. 
Alternatively, integral cartridge filter and integral sand filter pump 
varieties include a filtration accessory, designed to remove 
particulates less than 1mm in diameter, which is integrally and 
permanently mounted to the pump. These integral filter pump varieties 
are typically distributed in commerce with a storable pool (e.g., 
inflatable or collapsible pools) or as a replacement pump for such a 
pool. These storable pools are intended for temporary or seasonal use, 
and their application and

[[Page 5668]]

usage profile are unique from other dedicated-purpose pool pump 
varieties. The end user is required to assemble the pump and pool at 
the beginning of the season and disassemble the pump and pool for 
storage at the end of the season. Combining the pump and filtration 
equipment into one integral piece of equipment enables the user to 
assemble, disassemble, and store the equipment more easily than if the 
pump and filter were separate components. Thus, the integral nature of 
the filtration accessory provides utility to the end user.
    Similar to the basket strainer, the integral filtration accessory 
has head-loss associated with it, which means a measurable amount of 
hydraulic power is lost as water traverses the integral filtration 
accessory. However, due to the finer filtering capability of the 
integral filtration accessory (designed to remove particulates less 
than 1 mm in diameter), the integral filtration accessory will 
experience a larger head-loss than a comparably sized strainer basket. 
Ultimately, this translates to a reduced efficiency for integral 
cartridge filter and integral sand filter pool pumps, as compared to 
similarly sized pool filter pumps and other pumps not requiring a 
basket strainer. Based on this relationship between end-user utility 
and achievable efficiency, DOE concludes that the presence of an 
integral filtration accessory is an appropriate feature to 
differentiate and establish integral pump equipment classes (including 
integral cartridge filter and integral sand filter pumps).
    The two specific varieties of integral filter pumps (integral 
cartridge and integral sand) offer different utility to end users. Sand 
filter pumps typically weigh more (when filled with sand media), but 
require less ongoing intervention and attention by the end user than 
cartridge filters. However, integral sand filter pool pumps typically 
have a greater head-loss across the filtration accessory than integral 
cartridge filter pool pumps. Ultimately, this translates to a reduced 
efficiency for integral sand filter pumps, compared to integral 
cartridge filter pumps. Based on this relationship between end-user 
utility and achievable efficiency, DOE concludes that the variety of 
integral filtration accessory (sand filter versus cartridge filter) is 
an appropriate feature to differentiate integral pumps into two 
equipment classes, integral cartridge and integral sand filter pumps.
b. Self-Priming Ability
    All pool filter pumps on the market are either self-priming or non-
self-priming. The test procedure final rule defines a self-priming pool 
filter pump as, ``a pool filter pump that is certified under NSF/ANSI 
50-2015 to be self-priming or is capable of re-priming to a vertical 
lift of at least 5 feet with a true priming time less than or equal to 
10 minutes, when tested in accordance with NSF/ANSI 50-2015.'' Self-
priming pumps are able to lift liquid that originates below the 
centerline of the pump inlet and, after initial manual priming, are 
able to subsequently re-prime without the use of external vacuum 
sources, manual filling, or a foot valve. In contrast, non-self-priming 
pumps must be re-primed in order to operate after an idle period. This 
re-priming may be achieved by manually filling the pump with water, or 
re-priming may be induced by placing the pump at a lower vertical 
height than the surface of the water it will pump. The self-priming 
capability of a pool filter pump affects typical applications for which 
the pump is appropriate, and thus the utility to the end user. For 
example, typical inground pool constructions consist of a pump at 
ground level (above the water level), and main and skimmer drains below 
the water level. In this configuration, when the pump is cycled off 
(which will typically happen during the day), prime is lost. A self-
priming pump provides the end user with the ability to restart the pump 
(typically using a timer) without any need for manual intervention. 
Alternatively, a non-self-priming pump would require the end user to 
manually refill the pump casing (re-prime) the pump, each time the end 
user wanted to restart the pump.
    To achieve self-priming capability, self-priming pumps are 
constructed in a different manner than non-self-priming pumps. 
Specifically, self-priming pool filter pumps typically incorporate 
diffusers and reservoirs that work together to remove air from the 
suction side of the pump and regain the prime after an idle period. 
Prime is achieved by recirculating water that is trapped in the 
reservoir. The water in the pump mixes with air entering the pump from 
the suction line, and that mixture is discharged back into the 
reservoir, where air is released out of the pump discharge. Once all of 
the air is removed from the suction line, the pump is primed. However, 
once the self-priming pump is primed and running, the diffuser and 
reservoir configuration, by design, results in significant water 
recirculation within the bare pump, compared to a non-self-priming 
pump, where there is less internal recirculation. Internal water 
recirculation means that a portion of the hydraulic output of the pump 
is recirculated back to the reservoir of the pump, and is not 
immediately discharged out of the pump; as such, recirculation reduces 
the efficiency of the pump. Based on this relationship between end-user 
utility and achievable efficiency, DOE concludes that self-priming 
capability is an appropriate feature to differentiate equipment classes 
(self-priming versus non-self-priming pool filter pumps).\27\
---------------------------------------------------------------------------

    \27\ More information on the construction and capabilities of 
self-priming and non-self-priming pumps is available at Hayward 
Industries' Web page of frequently asked questions. In particular, 
the descriptions of inground and aboveground pump operations discuss 
priming. These descriptions are available at: https://www.hayward-pool.com/shop/en/pools/faqs#q188, and at https://www.hayward-pool.com/shop/en/pools/faqs#q192.
---------------------------------------------------------------------------

c. Pump Capacity (Flow, Head, and Power)
    The capacity of a dedicated-purpose pool pump can be expressed 
using measurements of head, flow, and hydraulic power. These three 
parameters define the useful output to the end user and are 
interrelated and bound by the Equation 2:
[GRAPHIC] [TIFF OMITTED] TR18JA17.003

Where:

Phydro = hydraulic power (hp)
Q = volumetric flow (gpm), and
H = total dynamic head (feet of water)

    The requirements of a pool (or any water system), can be expressed 
in terms of a system curve. When a pump is tested on a system curve 
(such as

[[Page 5669]]

curve C),\28\ any one of these three measurements can be used to 
calculate the other two measurements. Equation 3 and Equation 4 
illustrate this relationship.
---------------------------------------------------------------------------

    \28\ The test procedure final rule contains a detailed 
discussion of the system curves used in pump testing.
[GRAPHIC] [TIFF OMITTED] TR18JA17.004

---------------------------------------------------------------------------
Where:

QCurveC = volumetric flow on system curve C (gpm) and
HCurveC = head on system curve C (feet of water)
[GRAPHIC] [TIFF OMITTED] TR18JA17.005

Where:

Phydro,CurveC = hydraulic power on system curve C (hp)

    In this direct final rule, in agreement with DPPP Working Group 
recommendations, DOE is subdividing self-priming pool filter pumps into 
two equipment classes based on capacity, or more specifically, 
hydraulic horsepower at maximum speed on curve C (which is also 
referred to as rated hydraulic horsepower in test procedure final 
rule).
    During meetings, some DPPP Working Group members commented that 
small pool filter pumps are inherently more efficient than large pool 
filter pumps, and the group considered introducing a breakpoint to 
divide the self-priming pool filter pump variety into two equipment 
classes based on capacity. (Docket No. EERE-2015-BT-STD-0008-0101, May 
19 DPPP Working Group Meeting, at pp. 78-87) Initially, several DPPP 
Working Group members proposed to set this breakpoint at a level such 
that pumps rated above 0.75 thp would fall in a larger equipment class. 
(Docket No. EERE-2015-BT-STD-0008-0091, June 22 DPPP Working Group 
Meeting, at pp. 44-50) DPPP manufacturers commented that pumps rated 
below 1.0 thp make up a small portion of total pool filter pump 
shipments, and manufacturers proposed a higher breakpoint for the 
equipment classes, at a hydraulic horsepower corresponding to 1.25 thp. 
(Docket No. EERE-2015-BT-STD-0008-0091, June 22 DPPP Working Group 
Meeting, at pp. 54) To aid discussion, DPPP manufacturers provided pool 
filter pump shipment data to DOE's contractor and DOE presented 
aggregated shipment data to the DPPP Working Group. The aggregated 
shipment data showed that approximately 10 percent of pool filter pump 
shipments are rated below 1.0 thp and approximately 5 percent of pool 
filter pump shipments are rated below 0.75 thp. (Docket No. EERE-2015-
BT-STD-0008-0092, June 23 DPPP Working Group Meeting, at pp. 233-239) 
Based on these shipment data, the DPPP Working Group agreed on a 
recommendation to set the breakpoint between small-size and standard-
size self-priming pool filter pumps at 0.711 hhp, so that most of the 
currently available pool filter pumps rated at 1.0 thp and below would 
fall below the 0.711-hhp breakpoint. (Docket No. EERE-2015-BT-STD-0008-
0092, June 23 DPPP Working Group Meeting, at pp. 276-277; No. 82 
Recommendation #1 at p. 1) Equation 4 dictates that 0.711 hhp 
corresponds to a flow rate of 70 gpm on curve C.
    As discussed earlier in this subsection, pump capacity may also be 
considered in terms of pump head (or total dynamic pressure). In this 
direct final rule, DOE is distinguishing waterfall pump equipment from 
other pool filter pump varieties using head limitations. Specifically, 
as discussed by the DPPP Working Group, pumps used in waterfall 
applications do not need to produce high heads because waterfall pumps 
are typically not connected to pool circulation plumbing or to 
ancillary pool components like heaters and chlorinators (Docket No. 
EERE-2015-BT-STD-0008-0056, December 7 DPPP Working Group Meeting, at 
p. 237). Therefore, the DPPP Working Group recommended distinguishing 
the waterfall pump equipment class by establishing a maximum pump head 
of 30 feet (inclusive) for the waterfall pump equipment class. (Docket 
No. EERE-2015-BT-STD-0008, No. 51 Recommendation #4 at p. 3)
    Finally, in this direct final rule, DOE is distinguishing pressure 
cleaner booster pumps from other pumps based on their unique flow and 
head output. DPPP Working Group members asked whether pressure cleaner 
booster pumps would be covered by the energy conservation standard for 
general pumps. DOE clarified that the pressure cleaner booster pumps 
would not be covered by the general pumps standard since the general 
pumps standard has a lower bound of 25 gpm at the pump's best 
efficiency point, and the best efficiency point of pressure cleaner 
booster pumps is typically less than 25 gpm. (Docket No. EERE-2015-BT-
STD-0008-0058, October 19 Working Group Meeting, at pp. 76-81) As 
discussed by the DPPP Working Group, pressure cleaner booster pumps 
must provide a high amount of head at a low flow rate to propel 
pressure-side pool cleaners along the bottom of the pool and to remove 
debris as the cleaner moves. Specifically, pressure-side pool cleaners 
(and associated piping and hoses) require a pump that provides at least 
60 feet of head at approximately 10 gpm of flow; noting that the actual 
head requirements vary with each specific system, but will not 
typically be lower than 60 feet of head. (Docket No. EERE-2015-BT-STD-
0008, March 22 Working Group Meeting, at pp. 207-210) Figure IV.1 
illustrates the performance of four

[[Page 5670]]

pressure cleaner booster pump models from the three largest 
manufacturers (representing the majority of the pressure cleaner 
booster pump market) and highlights the range of head and flow rates 
for which these pumps are currently designed.
[GRAPHIC] [TIFF OMITTED] TR18JA17.006

    Although the pumps in Figure IV.1 all provide between 100 and 127 
feet of head at 10 gpm, the DPPP Working Group concluded that certain 
systems require less head (down to 60 feet of head). DPPP Working Group 
members expressed a desire that the test procedure allow better ratings 
for variable-speed pressure cleaner pumps that are able to reduce speed 
and energy consumption to avoid supplying (and wasting) excess pressure 
beyond what is required to drive the cleaner. (Docket No. EERE-2015-BT-
STD-0008-0101, May 19 Working Group Meeting, at pp. 49) The DPPP 
Working Group recommended that, for the test procedure, pressure 
cleaner booster pumps be evaluated at the lowest speed that can achieve 
60 feet of head at a flow rate of 10 gpm. (Docket No. EERE-2015-BT-STD-
0008, No. 82 Recommendation #8 at pp. 4) Consequently, DOE has 
concluded that the aforementioned capacity range provides a specific 
utility to the consumer, or end user, and is therefore appropriate to 
use as the basis for distinguishing pressure cleaner booster pumps from 
other pump equipment classes.
d. Rotational Speed
    For dedicated-purpose pool pumps, DOE has determined that 
rotational speed is not a sufficient differentiator to establish an 
equipment class without adding specific utility. However, the DPPP 
Working Group recommended DOE define waterfall pumps as ``a pool filter 
pump with maximum head less than or equal to 30 feet, and a maximum 
speed less than or equal to 1,800 rpm'' and establish an equipment 
class for this variety of pool filter pump (Docket No. EERE-2015-BT-
STD-0008, No. 44, Recommendation #4 at p. 3). Waterfall pumps are used 
in applications with low head and high flow requirements; i.e., 
applications that require ``flat'' head versus flow performance curves. 
This is because waterfall pumps are not typically plumbed through a 
filter or other auxiliary equipment, and thus do not have a large 
amount of head to overcome.
    Pumps running at 1,800 rpm typically exhibit the fairly flat head 
versus flow operating curve that is usually required by waterfall 
applications. Figure IV.2 illustrates this property in contrast to the 
steeper head-versus-flow curves that are typical for self-priming pool 
filter pumps.

[[Page 5671]]

[GRAPHIC] [TIFF OMITTED] TR18JA17.007

    Due to the inherent curve shape of 1,800 rpm pumps, this rotational 
speed limitation in conjunction with the 30-foot head limitation serves 
to establish a capacity differentiation. The limitations recommended by 
the DPPP Working Group effectively categorize a set of pumps with 
similar performance curves (heads, flows, and hydraulic horsepowers) 
into one equipment class--waterfall pumps. Figure IV.3 illustrates this 
phenomenon.

[[Page 5672]]

[GRAPHIC] [TIFF OMITTED] TR18JA17.008

e. End User Safety
    Pressure cleaner booster pumps share many similar design features 
with end suction close-coupled pumps. However, dedicated-purpose pool 
pumps (including pressure cleaner booster pumps) must specifically 
consider the safety of the pool operator (typically a homeowner or 
renter) in their design (e.g., reduced electrocution or injury risk). 
To do so, the dedicated-purpose pool pump industry relies on the safety 
requirements established in the voluntary standard ANSI/UL 1081-2014, 
``Standard for Swimming Pool Pumps, Filters, and Chlorinators.'' \29\ 
Based on DPPP Working Group discussion, DOE concludes that most pool 
filter pumps and all pressure cleaner booster pumps comply with and are 
currently listed to ANSI/UL 1081-2014. Conversely, general purpose end 
suction close-coupled pumps are typically installed in commercial and 
industrial applications and do not need to account for the same 
specific safety concerns. Differences in safety consideration result in 
differences in design choices that ultimately affect the performance of 
the pump. Consequently, DOE concludes that safety considerations are 
appropriate features to differentiate pressure cleaner booster pumps 
from end suction close-coupled pumps.
---------------------------------------------------------------------------

    \29\ ANSI/UL 1081-2014 is available for purchase at http://ulstandards.ul.com/standard/?id=1081_6.
---------------------------------------------------------------------------

f. List of Proposed Equipment Classes
    Based on the performance-related features and distinguishing 
characteristics described from section IV.A.1.a to section IV.A.1.d, 
DOE is establishing the following equipment classes, listed in Table 
IV-1 and Table IV-2:

                                                 Table IV-1--DOE Equipment Classes for Pool Filter Pumps
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                           Pump capacity
 Strainer or filtration accessory     Priming capability  ----------------------------------------------   Rotational speed         Equipment class
                                                                 Pump power             Pump head                                     designation
--------------------------------------------------------------------------------------------------------------------------------------------------------
Basket strainer...................  Self-priming.........  <2.5 hhp, >0.711 hhp.  n/s *................  n/s *...............  Self-priming pool filter
                                                           <=0.711 hhp..........  n/s*.................  n/s*................   pump, standard-size.
                                                                                                                               Self-priming pool filter
                                                                                                                                pump, small-size.
                                    Non-self-priming.....  <2.5 hhp.............  n/s *................  n/s *...............  Non-self-priming pool
                                                                                                                                filter pump.**
                                    n/s *................  n/s *................  <=30 ft..............  <=1800 rpm..........  Waterfall pump.
--------------------------------------------------------------------------------------------------------------------------------------------------------
* n/s indicates not specified.
** DOE analyzed non-self-priming pool filter pumps as two equipment classes: Extra-small (less than 0.13 hhp) and standard-size (less than 2.5 hhp and
  greater than 0.13 hhp). These two equipment classes were ultimately merged into one after DOE selected the same efficiency level for both extra-small
  and standard-size non-self-priming pool filter pumps.


[[Page 5673]]


Table IV-2--DOE Equipment Classes for Other Dedicated-Purpose Pool Pumps
------------------------------------------------------------------------
         Distinguishing feature(s)           Equipment class designation
------------------------------------------------------------------------
Integrated cartridge filter...............  Integral cartridge filter
                                             pool pump.
Integrated sand filter....................  Integral sand filter pool
                                             pump.
     Capacity (designed and         Pressure cleaner booster
     marketed for pressure-side pool         pump.
     cleaner applications).
     End User Safety (UL listed
     under ANSI/UL 1081-2014).
------------------------------------------------------------------------

2. Manufacturers and Industry Structure
    Manufacturers of dedicated-purpose pool pumps can be categorized 
into two distinct segments: (1) Those that primarily offer pool filter 
pumps greater than 0.40 hhp and varieties of auxiliary pumps such as 
waterfall and pressure cleaner booster pumps, (the pool filter pump 
industry) and (2) those that offer integral filter pumps and pool 
filter pumps smaller than 0.40 hhp, but not other auxiliary pumps (the 
integral filter pump industry). The former typically offers larger 
self-priming pool filter pumps, non-self-priming pool filter pumps, 
waterfall pumps, and pressure cleaner booster pumps. The latter 
typically offers very small pool filter pumps, as well as integral 
cartridge and sand filter pumps that are sold as a package with a 
seasonal pool, or as a replacement for a pump sold with a seasonal 
pool. DOE is unaware of any manufacturers that participate in both 
segments. Consequently, the two categories are discussed separately.
    In the pool filter pump industry, DOE identified 17 manufacturers. 
Of the 17, DOE found that three large manufacturers hold approximately 
90 percent of the market in terms of equipment shipments: Hayward 
Industries, Inc.; Pentair Aquatic Systems; and Zodiac Pool Systems, 
Inc. These manufacturers primarily produce equipment at manufacturing 
facilities in the United States. The remaining 10 percent of the market 
is held by AquaPro Systems; Aquatech Corp.; Asia Connection LLC; 
Bridging China International, Ltd.; Carvin Pool Equipment, Inc.; ECO 
H2O Tech, Inc.; Fluidra USA, LLC; Hoffinger Industries; Raypak; Speck 
Pumps; SpectraLight Technologies; Waterway Plastics, Inc.; Waterco 
Ltd.; and Wayne Water Systems.
    DOE identified four manufacturers in the integral filter pump 
industry: Bestway (USA), Inc.; Great American Merchandise and Events 
(GAME); Intex Recreation Corp.; and Polygroup. Based on public records 
found in Hoovers,\30\ DOE determined that all four manufacturers are 
U.S.-based entities. During the DPPP Working Group meeting on April 19, 
2016, DOE presented the assumption that none of the integral cartridge 
and integral sand filter pumps are manufactured domestically. (See 
EERE-2015-BT-STD-0008-0067, at p. 104) When this information was 
presented to the DPPP Working Group, there were no objections to this 
assumption. (Docket No. EERE-2015-BT-STD-0008-0079, April 19 Working 
Group Meeting, at pp. 132-134) DOE therefore concludes that all 
manufacturers in the integral filter pump industry produce equipment 
abroad and import it for sale in the United States.
---------------------------------------------------------------------------

    \30\ Hoovers Inc., Company Profiles, Various Companies 
(Available at www.hoovers.com/).
---------------------------------------------------------------------------

3. Existing Efficiency Programs
    DOE reviewed several existing and proposed regulatory and voluntary 
energy conservation programs for pool pumps. These programs are 
described in the following sections.
a. U.S. State-Level Programs
    The CEC first issued standards for residential pool pumps under the 
California Code of Regulations (CCR) 2006.\31\ See 20CCR section 1601-
1608 (2013). The CEC standards (or similar variations) were 
subsequently adopted by a number of other states.\32\ The CEC's 
regulations cover all residential pool pump and motor combinations, 
replacement residential pool pump motors, and portable electric spas.
---------------------------------------------------------------------------

    \31\ California Energy Commission. ``Appliance Efficiency 
Regulations.'' December 2006. CEC-400-2006-002-REV2. Available at 
www.energy.ca.gov/2006publications/CEC-400-2006-002/CEC-400-2006-002-REV2.PDF.
    \32\ See, e.g. Ariz. Rev. Stat. Sec.  44-1375 (2015); 
Conn.Agencies Regs. Sec.  16a-48.4 (2015); Fla. Stat. Ann. Sec.  
533.909 (2015); and Wash. Rev. Code Ann. Sec.  19.260.040 (2015).
---------------------------------------------------------------------------

    The CEC's current standard (amended in 2008) has prescriptive 
design requirements, rather than performance-based regulations for 
residential pool pump and motor combinations. See 20CCR section 
1605.3(g)(5). The CEC defines ``residential pool pump and motor 
combination'' as a residential pool pump motor coupled to a residential 
pool pump. ``Residential pool pump'' is defined as an impeller attached 
to a motor that is used to circulate and filter pool water in order to 
maintain clarity and sanitation. ``Residential pool pump motor'' refers 
to a motor that is used as a replacement residential pool pump motor or 
as part of a residential pool pump and motor combination. (Motors used 
in these applications are electrically driven.) The CEC imposes a 
design standard that prohibits the use of split-phase start \33\ and 
capacitor-start-induction-run \34\ motor designs in residential pool 
pump motors manufactured on or after January 1, 2006. (Id. section 
1605.3(g)(5)(A)) The CEC also requires that residential pool pump 
motors with a motor capacity \35\ of 1 hp or greater manufactured on or 
after January 1, 2010, have the capability of operating at two or more 
speeds. The low speed must have a rotation rate that is no more than 
one-half of the motor's maximum rotation rate, and must be operated 
with an applicable multi-speed pump control. (Id. section 
1605.3(g)(5)(B))
---------------------------------------------------------------------------

    \33\ Defined as: A motor that employs a main winding with a 
starting winding to start the motor. After the motor has attained 
approximately 75 percent of rated speed, the starting winding is 
automatically disconnected by means of a centrifugal switch or by a 
relay. 20 CCR1602(g).
    \34\ Defined as: A motor that uses a capacitor via the starting 
winding to start an induction motor, where the capacitor is switched 
out by a centrifugal switch once the motor is up to speed. 20 
CCR1602(g).
    \35\ Defined as a value equal to the product of motor's 
nameplate hp and service factor and also referred to a ``total hp,'' 
where ``service factor (of an AC motor)'' means a multiplier which, 
when applied to the rated hp, indicates a permissible hp loading 
which can be carried under the conditions specified for the service 
factor. 20 CCR 1602(g).
---------------------------------------------------------------------------

    The CEC also prescribes design requirements for pump controls. Pump 
motor controls that are manufactured on or after January 1, 2008, and 
are sold for use with a pump that has two or more speeds are required 
to be capable of operating the pool pump at a minimum of two speeds. 
The default circulation speed setting shall be no more than one half of 
the motor's maximum rotation rate, and high speed overrides should be 
temporary and not for a period exceeding 24 hours. (Id. section 1605.3 
(g)(5)(B)) \36\
---------------------------------------------------------------------------

    \36\ California Energy Commission, 2014 Appliance Efficiency 
Regulations, available at www.energy.ca.gov/2014publications/CEC-400-2014-009/CEC-400-2014-009-CMF.pdf.
---------------------------------------------------------------------------

    In addition to these prescriptive design requirements, the CEC also 
requires manufacturers of residential pool pump and motor combinations 
and

[[Page 5674]]

manufacturers of replacement residential pool pump motors \37\ to 
report certain data regarding the characteristics of their certified 
equipment. This includes information necessary to verify compliance 
with the requirements of Section 1605.3(g)(5), as well as the tested 
flow and input power of the equipment at several specific load points. 
Manufacturers must also submit the pool pump and motor combinations' 
energy factor (EF) in gallons per watt-hour (gal/Wh) when tested in 
accordance with the specified test procedure for residential pool 
pumps. See 20CCR 1604(g)(3).
---------------------------------------------------------------------------

    \37\ Defined as a replacement motor intended to be coupled to an 
existing residential pool pump that is used to circulate and filter 
pool water in order to maintain clarity and sanitation. Cal. Code 
Regs., tit. 20, Sec.  1602, subd. (g).
---------------------------------------------------------------------------

    The CEC is considering revising its pool pump regulations. A recent 
CEC report \38\ proposes updated regulations for all single-phase 
dedicated-purpose pool pump motors under 5 total horsepower \39\ (thp). 
This report recommends that pool pump motors be covered regardless of 
whether they are sold with a new pump, or sold as replacement for use 
with an existing pump wet-end. The report recommends a timer 
requirement for integral filter pool pumps, and a requirement for 
freeze protection for pool filter pumps. Additionally, the report 
recommends that the CEC move to performance-based standards, rather 
than prescriptive design standards. The prescriptive standards that 
exist under the 2008 rule prohibit the use of certain motor 
technologies, and the 2016 proposal would allow these previously-
prohibited technologies as long as they meet minimum efficiency 
standards. Using the modified CSA C747-09 test procedure, the CEC 
recommends that single-speed motors less than 0.5 thp use motors that 
are at least 70 percent efficient. Single-speed pumps greater than or 
equal to 0.5 thp and less than 1 thp must use motors that are at least 
75 percent efficient. Variable-, multi-, and two-speed pumps greater 
than or equal to 1 and less than or equal to 5 thp must use motors with 
nameplate efficiency of at least 80 percent efficient at full speed and 
at least 65 percent efficient at half speed.\40\ The CEC presented 
portions of this report that are related to dedicated-purpose pool 
pumps to the DPPP Working Group. Members of the DPPP Working Group 
asked clarifying questions to confirm that with the proposed changes 
(1) California's reporting requirements for pumps will not change, (2) 
previously disallowed motor types would be allowed, provided they meet 
the minimum CEC motor efficiency requirements. (Docket No. EERE-2015-
BT-STD-0008-0091, June 22 Working Group Meeting, at pp. 6-12) The DPPP 
Working Group had no further comments or objections. DOE also notes 
that the DPPP CEC regulations are preempted following the compliance 
date of this DFR.
---------------------------------------------------------------------------

    \38\ Revised Analysis of Efficiency Standards for Pool Pumps and 
Motors, and Spas--Draft Staff Report, June 2016. Available at http://docketpublic.energy.ca.gov/PublicDocuments/15-AAER-02/TN211842_20160616T124038_Revised_Analysis_of_Efficiency_Standards_for_Pool_Pumps_and_Mot.pdf.
    \39\ Total hp is the product of motor service factor and motor 
nameplate (rated) hp.
    \40\ Revised Analysis of Efficiency Standards for Pool Pumps and 
Motors, and Spas--Draft Staff Report. http://docketpublic.energy.ca.gov/PublicDocuments/15-AAER-02/TN211842_20160616T124038_Revised_Analysis_of_Efficiency_Standards_for_Pool_Pumps_and_Mot.pdf.
---------------------------------------------------------------------------

b. Voluntary Standards
    In response to the May 2015 DPPP RFI, APSP recommended that ``DOE 
should rely on and reference, or recite the applicable language from 
the ANSI/APSP/ICC-15 2013 standard for residential swimming pool and 
spa energy efficiency.'' (Docket. No. EERE-2015-BT-STD-0008, APSP, No. 
10 at p. 2) In response DOE thoroughly reviewed the 2013 version of the 
American National Standards Institute (ANSI), APSP, and the 
International Code Council (ICC) published standard ANSI/APSP/ICC-15a-
2013, ``American National Standard for Residential Swimming Pool and 
Spa Energy Efficiency.'' Similar to the CEC's current standard (amended 
in 2008), ANSI/APSP/ICC-15a-2013 has prescriptive design requirements, 
rather than performance-based regulations for residential pool pump and 
motor combinations. This voluntary standard prohibits split-phase, 
shaded-pole, or capacitor start-induction run motors in dedicated-
purpose pool pumps, with the exception of motors that are powered 
exclusively by onsite electricity generation from renewable energy 
sources. The standard also requires that pool pump motors with a 
capacity of 1.0 total horsepower or greater have the capability of 
operating at two or more speeds, with the low speed having a rotation 
rate that is no more than one-half of the motor's maximum rotation 
rate. Ultimately, for the reasons discussed throughout this document, 
DOE is adopting a mix of performance-based and prescriptive standards 
that differ from those established in ANSI/APSP/ICC-15a-2013. DOE notes 
that five members of APSP (Waterway Plastics, Hayward Industries, Inc., 
Zodiac Pool Systems, Inc., Pentair Aquatic Systems, and Bestway USA, 
Inc.) participated in the DPPP Working Group and unanimously supported 
the term sheet that serves as the basis for the standards established 
in this direct final rule. (EERE-2015-BT-STD-0008, No. 51)
4. Shipments Information
    DOE gathered annual DPPP shipment data from two general sources: 
(1) Veris Consulting and PK Data; and (2) interviews with individual 
manufacturers that were conducted under non-disclosure agreements with 
DOE's contractors.\41\ The Veris Consulting and PK Data information 
included industrywide shipment information for certain dedicated-
purpose pool pump varieties. This data was previously aggregated by 
Veris Consulting and PK Data for use within the industry, DOE gathered 
and aggregated shipments information for all varieties of dedicated-
purpose pool pump, specifically for this rulemaking. DOE used both 
sources to shape its initial shipment estimates. These shipments 
estimates were presented to the DPPP Working Group throughout the 
negotiation process and were revised based on the group's feedback.
---------------------------------------------------------------------------

    \41\ In developing standards, DOE may choose to contract with 
third party organizations who specialize in various functions.
---------------------------------------------------------------------------

    DOE's final estimates of historical shipments by equipment class 
are shown in Table IV-3. The estimates show that the shipments of all 
classes of dedicated-purpose pool pumps have increased over the past 5 
years. In 2015, the shipments of self-priming pool filter pumps were 
nearly double the shipments of non-self-priming pool filter pumps. 
Waterfall pumps made up a small portion of the industry, less than 0.5 
percent of total shipments in 2015. Since 2013, the integral cartridge 
filter and integral sand filter pump classes have totaled over one 
million shipments per year.

[[Page 5675]]



          Table IV-3--Estimates of Historical Dedicated-Purpose Pool Pump Shipments, by Equipment Class
                                                   [Thousands]
----------------------------------------------------------------------------------------------------------------
         Equipment class               2011            2012            2013            2014            2015
----------------------------------------------------------------------------------------------------------------
Self-Priming Pool Filter Pump,             543.8           561.1           578.9           597.3           616.3
 standard-size..................
Self-Priming Pool Filter Pump,              70.6            72.8            75.1            77.5            80.0
 small-size.....................
Non-Self-Priming Pool Filter               329.0           339.5           350.2           361.4           372.9
 Pump...........................
Waterfall Pump..................             8.8             9.1             9.4             9.7            10.0
Pressure Cleaner Booster Pump...           121.6           123.3           125.0           126.8           128.6
Integral Cartridge Filter Pool             843.2           860.4           878.0           895.9           914.2
 Pump...........................
Integral Sand Filter Pool Pump..           130.3           133.0           135.7           138.4           141.3
----------------------------------------------------------------------------------------------------------------

5. Market and Industry Trends
    DOE gathered data on DPPP market and industry trends. Several of 
DOE's observations and conclusions are noted in the following sections.
a. Equipment Efficiency
    DOE assembled a Pool Pump Performance Database that describes the 
capacity, speed configuration, and estimated efficiency of the majority 
of dedicated-purpose pool pumps that are available on the market.\42\ 
Using data from the database, Table IV-4 lists the ranges of efficiency 
that are available for the different speed configurations of standard-
size self-priming pool filter pumps. In terms of total annual energy 
consumption, standard-size self-priming pool filter pumps are the 
largest equipment class covered by this rulemaking.\43\
---------------------------------------------------------------------------

    \42\ See section IV.C.1.a for more information regarding the 
Pool Pump Performance Database.
    \43\ The self-priming pool filter pump equipment class is 
defined in section IV.A.1 of this document.

 Table IV-4--Ranges of Dedicated-Purpose Pool Pump Efficiency Available
            for Standard-Size Self-Priming Pool Filter Pumps
------------------------------------------------------------------------
  Speed configuration of self-priming     Efficiency range available in
 pool filter pump, standard-size (0.711     the pool pump performance
            to 2.5 hydro hp)                       database WEF
------------------------------------------------------------------------
Single-Speed...........................  1.81 to 3.73 kgal/kWh.
Two-speed..............................  3.41 to 5.45 kgal/kWh.
Variable-Speed.........................  5.81 to 10.25 kgal/kWh.
------------------------------------------------------------------------

    The engineering analysis, found in section IV.C of this document, 
provides a full discussion of DPPP efficiency data for all of the 
equipment classes, from the lowest performing pump available on the 
market to the highest performing pump that is technologically feasible.
b. Pump Sizing
    Based on manufacturer interviews, DOE concluded that approximately 
76 percent of the installed base of dedicated-purpose pool pumps are 
single-speed and two-speed pumps that use single-phase induction 
motors. These pumps come in a wide range of nominal horsepower ratings. 
Single-phase induction motor pumps are typically available in a wide 
variety of nominal horsepower ratings, such as 0.5 hp, 0.75 hp, 1 hp, 
1.5 hp, 2 hp, 2.5 hp, and 3 hp, as well as other ratings above, below, 
and in between. This variety gives a pump installation contractor the 
ability to select a pump that is appropriately sized for the 
application. The contractor can make this decision based on the volume 
of water the pump needs to circulate (related to the pool volume) and 
the head that the pump needs to overcome (related to the piping and 
ancillary pool equipment such as heaters and chlorinators).
    The remainder of the installed base of dedicated-purpose pool pumps 
are variable-speed pool pumps that use electronically commutating 
motors (ECMs) or other variable-speed motor technologies. These 
variable-speed pumps are typically only available in a small number of 
nominal horsepower ratings, such as 1.65 hp, 2.40 hp, 2.70 hp, and 3.45 
hp. Due to the limited number of nominal horsepower ratings available, 
it is common for variable-speed dedicated-purpose pool pumps to be 
oversized for their application, when evaluated at maximum speed 
capability. A variable-speed pump can be programmed by the installer or 
end user to operate at an appropriate speed that is less than 100 
percent.
6. Technology Options
    This section describes the technology options that can be used to 
reduce the energy consumption of DPPP equipment. The technology options 
are divided into two categories: Options relevant to DPPP equipment 
classes that are analyzed for performance standards (e.g., varieties of 
pool filter pumps, pressure cleaner booster pumps, and waterfall pumps) 
and options relevant to DPPP equipment classes that are analyzed for 
prescriptive standards (e.g., integral cartridge filter pool pumps and 
integral sand filter pool pumps).
    In the May 2015 RFI, DOE requested comments on technology options 
that could be considered to improve the energy efficiency of dedicated-
purpose pool pumps. 80 FR 26483 (May 8, 2015). APSP commented that 
APSP-15 and California Title 20 capture many of the technology options 
that are available to the industry. APSP asked DOE to reference these 
programs. (APSP, No. 10 at p. 13) The following technologies are 
described in the APSP and California standards:
     APSP-15 and California Title 20 identify motor performance 
as a technology option to reduce energy consumption, and both standards 
prohibit the sale of pool pumps that incorporate particular motor 
constructions. See ANSI/APSP/ICC-15a-2013, section 4.1.1.1; and 20CCR 
section 1605.3 (g)(5)(A).
     APSP-15 and California Title 20 identify two-speed, multi-
speed, and variable-speed pumps as a technology to reduce energy 
consumption. See ANSI/

[[Page 5676]]

APSP/ICC-15a-2013, section 4.1.1.2; and 20CCR section 1605.3 (g)(5)(B).
     APSP-15 requires a time switch or similar control 
mechanism to control the pool pump's operation schedule. See ANSI/APSP/
ICC-15a-2013, section 5.3.3.
    Based on the DPPP Working Group's review of the APSP and California 
standards and independent research, DOE identified three technology 
options that can be used to reduce the energy consumption of the DPPP 
equipment classes for which performance standards were being analyzed 
(i.e., self-priming pool filter pumps, non-self-priming pool filter 
pumps, pressure cleaner booster pumps, and waterfall pumps). 
Specifically, those performance standard technology options are:
     Improved motor efficiency;
     ability to operate at reduced speeds; and
     improved hydraulic design.
    DOE identified one technology option, a pool pump timer, which 
could be used to reduce the energy consumption of the DPPP equipment 
classes for which prescriptive standards were being analyzed (i.e., 
integral cartridge filter pool pumps and integral sand filter pool 
pumps).
    The DPPP Working Group reviewed both sets of technology options 
(Docket No. EERE-2015-BT-STD-0008-0053, November 12 DPPP Working Group 
Meeting, at pp. 51-78; Docket No. EERE-2015-BT-STD-0008-0094, March 21 
DPPP Working Group Meeting, at pp. 37-38) and offered no objections to 
DOE's approach. The DPPP Working Group ultimately evaluated standards 
based on efficiency levels determined by these options.
    Each technology option is addressed separately in the sections that 
follow.
a. Improved Motor Efficiency
    Different varieties (or constructions) of motors have different 
achievable efficiencies. Two general motor constructions are present in 
dedicated-purpose pool pump market: Single-phase induction motors and 
electronically commutated motors (ECMs).\44\ Single-phase induction 
motors may be further differentiated and include split phase, 
capacitor-start induction-run (CSIR), capacitor-start capacitor-run 
(CSCR), and permanent split capacitor (PSC) motors.
---------------------------------------------------------------------------

    \44\ Three-phase induction motors also are found on certain 
self-priming pool filter pumps; however this motor construction is 
specifically excluded from the scope of this rulemaking for self-
priming pool filter pumps (as described in section III.C).
---------------------------------------------------------------------------

    The majority of pool filter pumps available on the market come 
equipped with single-phase induction motors. According to manufacturer 
interviews, very few pool filter pumps on the market use split phase or 
CSIR motors. This is partly due to the regulatory prohibition of these 
motor constructions in California and other states. Most pool filter 
pumps on the market use CSCR or PSC motors; both have similar 
attainable efficiencies, although CSCR motors are typically able to 
provide greater starting torque.
    ECMs are typically used in variable-speed pool filter pump 
applications. However, induction motors, coupled to a proper variable 
speed drive, can also be used in variable-speed pool filter pump 
applications. ECMs are inherently more efficient than single-phase 
induction motors because their construction minimizes slip losses 
between the rotor and stator components. Unlike single-phase induction 
motors, ECMs require an electronic drive to function. This electronic 
drive consumes electricity, and variations in drive losses and 
mechanical designs lead to a range of ECM efficiencies.
    As part of the engineering analysis (section IV.C), DOE assessed 
the range of attainable motor efficiency for certain representative 
motor capacities and constructions. As motor capacity increases, the 
attainable efficiency of the motor at full load also increases. Higher 
horsepower motors also operate close to their peak efficiency for a 
wider range of loading conditions.\45\ Table IV-5 presents these 
ranges, based on nameplate (or nominal) motor efficiencies listed in 
the Pool Pump Performance Database. Motor efficiency data submitted by 
pump and motor manufacturers to DOE confirms the ranges reported in 
this table.
---------------------------------------------------------------------------

    \45\ U.S. DOE Building Technologies Office. Energy Savings 
Potential and Opportunities for High-Efficiency Electric Motors in 
Residential and Commercial Equipment. December 2013. Prepared for 
the DOE by Navigant Consulting. pp. 4. Available at http://energy.gov/sites/prod/files/2014/02/f8/Motor%20Energy%20Savings%20Potential%20Report%202013-12-4.pdf.

  Table IV-5--Ranges of Nameplate Motor Efficiencies Reported for Three Capacities of Self-Priming Pool Filter
                                                      Pumps
----------------------------------------------------------------------------------------------------------------
                                                                        Range of full speed motor nameplate
                                         Hydraulic horsepower on      efficiencies reported in the pool pump
                                           curve C of a typical    performance database, by motor construction *
     Motor total horsepower (thp) *       dedicated-purpose pool                       (%) *
                                           pump with this motor  -----------------------------------------------
                                                                   CSCR [dagger]   PSC [dagger]    ECM [dagger]
----------------------------------------------------------------------------------------------------------------
0.75...................................                     0.44           64-79           51-75              77
1.35...................................                     0.95           65-81           61-78           78-86
3.45...................................                     1.88           75-81           74-82           77-92
----------------------------------------------------------------------------------------------------------------
* The three pump capacities described in this table align with the representative unit capacities that are
  defined in section IV.C.2 and used throughout the engineering analysis in section IV.C.
** Neither split phase nor CSIR motors are listed in this table because no self-priming pool filter pumps in the
  Pool Pump Performance Database utilize these motor types.
[dagger] Members of the DPPP Working Group stated that there may be small errors in the motor nameplate
  efficiency data reported for pumps in the CEC database that DOE incorporated into the Pool Pump Performance
  Database. (Docket No. EERE-2015-BT-STD-0008-0056, December 7 DPPP Working Group Meeting, at pp. 38-40).

    DPPP manufacturers do not typically manufacture motors inhouse. 
Instead, they purchase complete or partial motors from motor 
manufacturers and/or distributors. As such, improving the nameplate 
motor efficiency of the pump is typically achieved by swapping a less 
efficient purchased motor component for a more efficient one.
b. Ability To Operate at Reduced Speeds
Self-Priming and Non-Self-Priming Pool Filter Pumps
    Self-priming and non-self-priming pool filter pumps at or above 
49.4 gpm

[[Page 5677]]

max flow on curve C can achieve a higher (more favorable) WEF value if 
they have the ability to operate at reduced speeds. As discussed 
previously in section III.C, the WEF metric is a weighted average of 
energy factors, measured at one or more test points. The DPPP test 
procedure allows WEF values for two-, multi-, and variable-speed pumps 
to be calculated as the weighted average of performance at both high 
and reduced speeds, while WEF for single-speed pumps is calculated 
based only on performance at high speed. Due to pump affinity laws, 
most pumps will achieve higher energy factors at lower rotational 
speeds, compared to higher rotational speeds. As such, the WEF 
efficiency metric confers benefits on pool filter pumps that are able 
to operate at reduced rotational speeds.
    Specifically, pump affinity laws describe the relationship of pump 
operating speed, flow rate, head, and hydraulic power. According to the 
affinity laws, speed is proportional to flow such that a relative 
change in speed will result in a commensurate change in flow, as 
described in Equation 5. The affinity laws also establish that pump 
total head is proportional to speed squared, as described in Equation 
6, and pump hydraulic power is proportional to speed cubed, as 
described in Equation 7.
[GRAPHIC] [TIFF OMITTED] TR18JA17.009

[GRAPHIC] [TIFF OMITTED] TR18JA17.010

[GRAPHIC] [TIFF OMITTED] TR18JA17.011


Where:
Q1 and Q2 = volumetric flow rate at two operating points
H1 and H2 = pump total head at two operating points
N1 and N2 = pump rotational speed at two operating points
P1 and P2 = pump hydraulic power at two operating points

    This means that a pump operating at half speed will provide one 
half of the pump's full-speed flow and one eighth of the pump's full-
speed power.\46\ However, pump affinity laws do not account for changes 
in hydraulic and motor efficiency that may occur as a pump's rotational 
speed is reduced. Typically, hydraulic efficiency and motor efficiency 
will be reduced at lower operating speeds. Consequently, at reduced 
speeds, power consumption is not reduced as drastically as hydraulic 
output power. Even so, the efficiency losses at low-speed operation are 
typically outweighed by the exponential reduction in hydraulic output 
power at low-speed operation; this results in a higher (more 
beneficial) energy factor at low speed operation.
---------------------------------------------------------------------------

    \46\ A discussion of reduced-speed pump dynamics is available at 
https://www.regulations.gov/document?D=EERE-2015-BT-STD-0008-0099.
---------------------------------------------------------------------------

    Self-priming and non-self-priming pool filter pumps with a two-
speed motor configuration that produce less than 49.4 gpm maximum flow 
on curve C cannot achieve higher WEF score through reduced speed 
operation. This is because the test procedure final rule specifies two 
load points for two-speed self-priming and non-self-priming pool filter 
pumps--one at 100 percent of maximum speed and one 50 percent of 
maximum speed. Further, the test procedure final rule specifies that 
the lower of the two load points cannot be below 24.7 gpm, and that the 
pump will be tested at the ``lowest speed capable of meeting the 
specified flow and head values.'' Consequently, a two-speed pump that 
delivers less than 49.4 gpm of flow at maximum speed on curve C would 
deliver less than 24.7 gpm of flow at half of the maximum, which mean 
the half-speed setting would not be considered in the calculation of 
the pump's WEF.\47\ Such a two-speed pump would effectively be tested 
as a single-speed pump.
---------------------------------------------------------------------------

    \47\ The DOE DPPP test procedure final rule specifies that flow 
be measured to the nearest tenth of a gpm.
---------------------------------------------------------------------------

    Self-priming and non-self-priming pool filter pumps with a 
variable- or multi-speed motor configuration that produce less than 
49.4 gpm max flow on curve C could conceivably achieve a higher WEF 
score through reduced speed operation. However, DOE did not apply the 
``ability to operate at reduced speeds'' technology option to pumps 
that provide less than 49.4 gpm at maximum speed on curve C. A flow of 
49.4 gpm at maximum speed on curve C is equivalent to a hydraulic power 
of 0.25 hhp; such a pump would typically require a motor shaft power of 
approximately 0.60 horsepower. Comparatively, the smallest currently 
available variable-speed pool pump motor is 1.65 thp. Due to the 
mismatch in physical size and performance of such a wet end and motor 
combination, DOE concludes that it is not technologically feasible to 
pair a 1.65-thp motor with a pump wet end that provides only 49.4 gpm 
at maximum speed on curve C. For this reason, DOE's analysis assumes 
that that the design option described as ``ability to operate at 
reduced speeds'' does not apply to self-

[[Page 5678]]

priming or non-self-priming pool filter pumps that are below 49.4 gpm 
at maximum speed on curve C.
Pressure Cleaner Booster Pumps
    In the field, pressure cleaner booster pumps are only operated at 
one speed and therefore the test procedure final rule specifies only 
one load point for testing pressure cleaner booster pumps. However, the 
test procedure final rule specifies that pressure cleaner booster pumps 
are tested at the lowest speed that can achieve 60 feet of head at the 
10 gpm test condition. Consequently, a pressure cleaner booster pump 
can see benefits from the ability to operate at reduced speeds as the 
pump may vary its speed to achieve this load point.\48\ For instance, a 
pressure cleaner booster pump equipped with a variable-speed motor may 
produce more than 60 feet of head when operated at maximum speed at the 
10 gpm test point. Such a pump could be tested at a reduced speed that 
produces exactly 60 feet of head at 10 gpm, while consuming less power 
than it would at maximum speed. In this case, testing at a reduced 
speed would result in a higher (more beneficial) WEF value.
---------------------------------------------------------------------------

    \48\ The DPPP Working Group requested that DOE examine variable-
speed pumps as a design option for pressure cleaner booster pumps. 
(Docket No. EERE-2015-BT-STD-0008-0095, March 22 DPPP Working Group 
Meeting, at pp. 197-203)
---------------------------------------------------------------------------

Waterfall Pumps
    The test procedure final rule specifies that waterfall pumps are 
only tested at 100 percent speed. Consequently, waterfall pumps cannot 
achieve a higher (more beneficial) WEF value if they have the ability 
to operate at reduced speeds. Consequently, DOE did not consider the 
``ability to operate at reduced speeds'' as a technology option for the 
waterfall pump equipment class.
c. Improved Hydraulic Design
    The performance characteristics of a pump, such as flow, head, and 
efficiency, are a direct result of the pump's hydraulic design. For 
purposes of the DOE analysis, ``hydraulic design'' is a broad term DOE 
used to describe the system design of the wetted components of a pump. 
Although hydraulic design focuses on the specific hydraulic 
characteristics of the impeller and the volute/casing, it also includes 
design choices related to bearings, seals, and other ancillary 
components.
    Impeller and volute/casing geometries, clearances, and associated 
components can be redesigned to a higher efficiency (at the same flow 
and head) using a combination of historical best practices and modern 
computer-aided design (CAD) and analysis methods. The wide availability 
of modern CAD packages and techniques now enables pump designers to 
more quickly reach designs with improved vane shapes, flow paths, and 
cutwater designs, all of which work to improve the efficiency of the 
pump as a whole.
Self-Priming Pool Filter Pumps
    For self-priming pool filter pumps, DOE used empirical data from 
the Pool Pump Performance Database to estimate the potential efficiency 
gains available from improved hydraulic design. DOE used hydraulic 
power, line input power, and nameplate motor efficiency to estimate the 
hydraulic efficiency of these pumps and to observe the range of 
hydraulic efficiencies available for self-priming pool filter pumps at 
pump capacities less than 2.5 hhp. For any given capacity less than 2.5 
hhp, DOE found that the best hydraulic efficiency of self-priming pool 
filter pumps at maximum speed on curve C could be 116.2 percent of the 
baseline hydraulic efficiency. Chapter 3 of the direct final rule TSD 
contains more details regarding the hydraulic improvements estimated 
for self-priming pool filter pumps.
Non-Self-Priming Pool Filter Pumps
    For non-self-priming pool filter pumps, DOE attempted to follow a 
similar methodology to self-priming pumps. While DOE's Pool Pump 
Performance Database contains few records of non-self-priming pool 
filter pumps, these records were sufficient to establish a baseline 
hydraulic efficiency, which DOE identified as 51.5 percent. In the May 
2015 DPPP RFI, DOE requested information regarding the magnitude of 
efficiency improvements available from any potential technology 
options. 80 FR 26483 (May 8, 2015). DOE did not receive public comment 
regarding the range of hydraulic efficiency improvements that are 
available to pool filter pumps. With limited data, DOE was not able to 
use this database to empirically identify the maximum hydraulic 
efficiency that is technologically feasible, nor estimate the range of 
hydraulic efficiency improvements that are available to non-self-
priming pool filter pumps.
    Instead, DOE referred to empirical data gathered during the 2016 
general pumps \49\ rulemaking. During the general pumps rulemaking, DOE 
estimated the maximum technologically feasible hydraulic efficiency for 
end suction, close-coupled pumps as a function of flow and specific 
speed.\50\ For this dedicated-purpose pool pumps direct final rule, DOE 
evaluated a 0.52-hhp, end suction, close-coupled pump that is optimized 
for curve-C flow and head using equations from the general pumps 
rulemaking analysis, and found that such a pump can achieve a hydraulic 
efficiency of up to 69.7 percent.\51\ This pump has a configuration 
that is nearly identical to a non-self-priming pool filter pump, with 
the exception that non-self-priming pool filter pumps are defined by 
the presence (or requirement of) a basket strainer. As discussed in 
section IV.A, the addition of a basket strainer and strainer housing 
reduce a pump's hydraulic efficiency by a measurable amount. Based on 
discussions with pump industry professionals, the impact may be in the 
range of 1 to 3 points of hydraulic efficiency. Consequently, DOE 
conservatively established a maximum hydraulic efficiency of 67 percent 
for non-self-priming pool filter pumps. This represents an improvement 
of 30 percent over the baseline hydraulic efficiency. At the April 18, 
2016, Working Group meeting, DOE presented the DPPP Working Group with 
values for motor efficiency and wire-to-water efficiency of 
representative units at each efficiency level. This data enables the 
calculation of hydraulic efficiency, since wire-to-water efficiency 
equals the product of motor efficiency multiplied by hydraulic 
efficiency. (Docket No. EERE-2015-BT-STD-0008-0078, April 18, 2016 DPPP 
Working Group Meeting, at p. 20-30) At subsequent meetings, DOE 
presented max tech wire-to-water efficiency results, based on the 
aforementioned 67 percent hydraulic efficiency. DPPP Working Group 
members offered no objections to DOE's hydraulic efficiency 
assumptions. The DPPP Working Group ultimately evaluated standards 
based on efficiency levels determined by these assumptions. (Docket No. 
EERE-2015-BT-STD-

[[Page 5679]]

0008-0100, May 18 DPPP Working Group Meeting, at p. 140-149) Chapter 3 
of the direct final rule TSD contains more details regarding the 
hydraulic improvements estimated for non-self-priming pool filter 
pumps.
---------------------------------------------------------------------------

    \49\ The pumps energy conservation standard rulemaking docket 
EERE-2011-BT-STD-0031 contains all notices, public comments, public 
meeting transcripts, and supporting documents pertaining to this 
rulemaking.
    \50\ Specific speed is a dimensionless index describing the 
geometry of a pump impeller and provides an indication of the pump's 
pressure/flow ratio at the pump's best efficiency point. For more 
details, see chapter 3 of the general pumps rulemaking final rule 
TSD, at https://www.regulations.gov/document?D=EERE-2011-BT-STD-0031-0056.
    \51\ See the discussion of efficiency levels for general pumps 
equipment in the general pumps final rule TSD, available at 
www.regulations.gov/document?D=EERE-2011-BT-STD-0031-0056. In 
particular, DOE calculates the standard pump efficiency 
[eta]STD of 69.7% for the max-tech level of the ESCC.3600 
equipment class at a flow rate Q of 63 GPM, a constant C of 125.3, 
and a specific speed, NS, of 2,760.
---------------------------------------------------------------------------

Pressure Cleaner Booster Pumps
    DOE's contractor received motor specifications and test data for 
pressure cleaner booster pumps from manufacturers, which DOE used to 
calculate the total pump efficiency and the hydraulic efficiency for 
several pumps at the pressure cleaner booster pump test point of 10 gpm 
flow. DOE found that the best available hydraulic efficiency of 
pressure cleaner booster pumps, at the test point of 10 gpm, could be 
112.2 percent of the baseline hydraulic efficiency. Chapter 3 of the 
direct final rule TSD contains more details regarding the hydraulic 
improvements estimated for pressure cleaner booster pumps.
Waterfall Pumps
    DOE's contractor used manufacturer-supplied motor specifications 
and test data for waterfall pumps to calculate the total pump 
efficiency and the pump hydraulic efficiency for several pumps at the 
waterfall pump test point of 17 feet of head. DOE found that the best 
available hydraulic efficiency of waterfall pumps at this test point 
could be 111.5 percent of the baseline hydraulic efficiency. Chapter 3 
of the direct final rule TSD contains more details regarding the 
hydraulic improvements estimated for waterfall pumps.
d. Pool Pump Timer
    Pool pump timers can reduce the energy consumed by dedicated-
purpose pool pumps by reducing the number of hours that the pump is 
operated unnecessarily.
    Many smaller-size pools do not require a dedicated-purpose pool 
pump to operate 24 hours per day to achieve the desired turnover of 
pool water. DOE initially surveyed recommendations for pool turnover 
rates collected by the Consortium for Energy Efficiency.\52\ DOE stated 
that California recommends one turnover every 12 to 14 hours. (EERE-
2015-BT-STD-0008-0059, October 20 DPPP Working Group Meeting, at p. 88) 
Several members of the DPPP Working Group commented that the California 
recommendation cited by DOE pertains to commercial pools, and that the 
pool industry recommends one turnover per day for residential 
applications. (EERE-2015-BT-STD-0008-0059, October 20 DPPP Working 
Group Meeting, at p. 134-135; EERE-2015-BT-STD-0008-0053, November 12 
DPPP Working Group Meeting, at p. 134) DOE only considered the pool 
pump timer design option for the integral cartridge filter pump and 
integral sand filter pump equipment classes. Pump models in these 
equipment classes are marketed exclusively to residential end users. 
Therefore, DOE assumed that the pool pump timer design option applies 
only to pumps that must provide a minimum of one turnover per day. In 
support of the DPPP Working Group, DOE reviewed the integral pump 
products on the market and the pool volumes that they are recommended 
to service. DOE concluded that, when paired with the appropriate size 
pool, integral filter pumps should achieve one turnover in 8 hours or 
less. If a pool pump timer turned off the pump after 10 hours, DOE 
concluded that it would have allowed at least one full turnover to 
occur (thus meeting the industry recommendation for daily turnovers and 
maintaining end user utility), and it would prevent the pump for 
running unnecessarily for the remainder of the day.
---------------------------------------------------------------------------

    \52\ Consortium for Energy Efficiency. 2012. ``CEE High 
Efficiency Residential Swimming Pool Initiative.'' Boston, MA. 
https://library.cee1.org/sites/default/files/library/9986/cee_res_swimmingpoolinitiative_07dec2012_pdf_10557.pdf.
---------------------------------------------------------------------------

    DOE initially suggested that a pool pump timer be defined as a pool 
pump control that automatically turns a dedicated-purpose pool pump on 
and off based on a pre-programmed user-selectable schedule. (Docket No. 
EERE-2015-BT-STD-0008-0101, May 19 Working Group Meeting, at pp. 112) 
In response, Bestway requested that the pool pump timer be defined 
instead as a type of countdown timer, where the end user turns on the 
pump, the pump runs for a set amount of time, and then the pump shuts 
off automatically and remains off until the end user starts the pump 
again. (Docket No. EERE-2015-BT-STD-0008-0101, May 19 Working Group 
Meeting, at pp. 39-40) Bestway commented that this style of timer is 
what currently exists in the market for integrated cartridge and 
integrated sand filter pumps. (Docket No. EERE-2015-BT-STD-0008-0101, 
May 19 Working Group Meeting, at pp. 124-125)
    DOE also asked the DPPP Working Group whether end users should be 
able to program the run time of the pool pump timer or whether the pool 
pump timer should ship with a preprogrammed run-time that cannot be 
adjusted by the end user. (Docket No. EERE-2015-BT-STD-0008-0101, May 
19 Working Group Meeting, at pp. 113-115) The DPPP Working Group 
clarified that integrated cartridge filter pumps and integrated sand 
filter pumps are typically sold in a package with the pool that they 
are meant to service, so the pump run-time necessary to achieve one 
turnover may be determined prior to sale based upon the relative sizes 
of the pump and the pool. (Docket No. EERE-2015-BT-STD-0008-0101, May 
19 Working Group Meeting, at pp. 116-117) Therefore, the Working Group 
agreed that there would be little benefit to allowing end users to 
modify the pump run-time that the pool pump timer allows.
    The DPPP Working Group also discussed whether end users might be 
burdened by a pool pump timer that cannot automatically turn on a pump, 
since end users would be required to initiate the pump operation on a 
daily basis to maintain a sanitary pool. Bestway commented that the 
burden, if any, on the end user to activate their pump on a daily basis 
would be minimal. (Docket No. EERE-2015-BT-STD-0008-0101, May 19 
Working Group Meeting, at pp. 116-119) A DPPP Working Group member 
speculated that if an end user were to leave their home for a week, a 
simple countdown timer would not be able to activate the pump on a 
daily basis to maintain sanitary pool conditions while the end user is 
away. Bestway commented that the pool pump timer definition Bestway 
proposed does not prevent manufacturers from offering a pool pump timer 
with automatic start and stop functionality. Bestway commented that, 
with their proposed definition, manufacturers could offer more advanced 
timers as a selling feature for their pumps. (Docket No. EERE-2015-BT-
STD-0008-0101, May 19 Working Group Meeting, at pp. 119-121)
    The DPPP Working Group voted, and did not reach consensus on a pool 
pump timer definition that included automatic on-off functionality and 
user-selectable scheduling. (Docket No. EERE-2015-BT-STD-0008-0101, May 
19 Working Group Meeting, at pp. 124) Instead, the DPPP Working Group 
voted to recommend defining a pool pump timer to mean a pool pump 
control that automatically turns off a dedicated-purpose pool pump 
after a run-time of no longer than 10 hours. (EERE-2015-BT-STD-0008, 
No. 82 Recommendation #4 at p. 2) DOE agrees with this reasoning and is 
adopting the definition recommended by the DPPP Working Group in this 
direct final rule.

B. Screening Analysis

    DOE uses the following four screening criteria to determine which 
technology options are suitable for further

[[Page 5680]]

consideration in an energy conservation standards rulemaking:
    1. Technological feasibility. Technologies that are not 
incorporated in commercial products or in working prototypes will not 
be considered further.
    2. Practicability to manufacture, install, and service. If it is 
determined that mass production and reliable installation and servicing 
of a technology in commercial products could not be achieved on the 
scale necessary to serve the relevant market at the time of the 
projected compliance date of the standard, then that technology will 
not be considered further.
    3. Impacts on product utility or product availability. If it is 
determined that a technology would have significant adverse impact on 
the utility of the product to significant subgroups of consumers or 
would result in the unavailability of any covered product type with 
performance characteristics (including reliability), features, sizes, 
capacities, and volumes that are substantially the same as products 
generally available in the United States at the time, it will not be 
considered further.
    4. Adverse impacts on health or safety. If it is determined that a 
technology would have significant adverse impacts on health or safety, 
it will not be considered further.
    See 10 CFR part 430, subpart C, appendix A, 4(a)(4) and 5(b).
    Technologies that pass through the screening analysis are referred 
to as ``design options'' in the engineering analysis. The screening 
analysis and engineering analysis are discussed in detail, 
respectively, in chapters 4 and 5 of the direct final rule TSD.
1. Screened-Out Technologies
    Of the identified technology options, DOE was not able to identify 
any that would fail the screening criteria.
2. Remaining Technologies
    After reviewing each technology, DOE concluded that all of the 
identified technologies listed in section IV.A.6 met all four screening 
criteria to be examined further as design options in DOE's analysis. In 
summary, DOE continued its analysis for the following technology 
options:
     improved motor efficiency
     ability to operate at reduced speeds
     improved hydraulic design
     pool pump timers
    DOE determined that these technology options are technologically 
feasible because they are being used or have been used in commercially 
available products or working prototypes. DOE also found that these 
technology options met the other screening criteria (i.e., practicable 
to manufacture, install, and service; and do not result in adverse 
impacts on consumer utility, equipment availability, health, or 
safety). For additional details, see chapter 4 of the direct final rule 
TSD.

C. Engineering Analysis

    In the engineering analysis, DOE describes the relationship between 
manufacturer production cost (MPC) and improved DPPP efficiency. This 
relationship serves as the basis for cost-benefit calculations for 
individual end users, manufacturers, and the Nation. The following 
sections describe methods DOE used to conduct the engineering analysis.
1. Summary of Data Sources
    For the engineering analysis, DOE used two principal data sources: 
(1) The Pool Pump Performance Database; and (2) the manufacturer 
production cost dataset. The following subsections provide a brief 
description of each data source. Complete details are found in chapter 
5 of the direct final rule TSD.
a. Pool Pump Performance Database
    DOE assembled a database of pool pump performance data by 
collecting current and archived records of pool pump performance from 
public databases maintained by the CEC,\53\ APSP,\54\ and the ENERGY 
STAR program.\55\ The Pool Pump Performance Database also includes 
historic records from prior CEC database versions, which were provided 
to DOE by stakeholders. These historic records include pumps that met 
previous CEC efficiency standards but do not meet the current CEC 
standards.
---------------------------------------------------------------------------

    \53\ Appliance Efficiency Database: Public Search, California 
Energy Commission. Available at https://cacertappliances.energy.ca.gov/Pages/ApplianceSearch.aspx.
    \54\ Energy Efficiency Pool Pumps, APSP. Available at http://apsp.org/resources/energy-efficient-pool-pumps.aspx.
    \55\ ENERGY STAR Certified Pool Pumps. Available at 
www.energystar.gov/productfinder/product/certified-pool-pumps/results.
---------------------------------------------------------------------------

    The CEC, APSP, and ENERGY STAR databases contain third-party test 
data that manufacturers submit as a means of certifying their pump 
equipment to the relevant entity's standards. The database records 
contain pump performance information such as motor horsepower, flow and 
head on pump performance curves, and pump speed configuration. DOE 
added records to the database based on pump data published in 
manufacturer specification sheets. These specification sheets typically 
publish motor horsepower and performance curves but they do not 
typically provide information regarding the pump's electrical 
performance or efficiency.
    DOE filtered the collected data to remove duplicate entries, 
entries that only represented a replacement motor (but no pump), and 
entries with incomplete data. To allow for easier analysis, DOE 
combined and reformatted the databases into a user-friendly format. DOE 
performed a regression analysis to estimate the part-load efficiencies 
of variable-speed pumps at the test points specified in the test 
procedure final rule. DOE then calculated the WEF value of each pump 
record in the database, according to the calculation method described 
in section III.C. Chapter 5 of the direct final rule TSD contains more 
detail regarding the regression analysis and the calculation of WEF 
values.
b. Manufacturer Production Cost Dataset
    DOE collected MPC and performance data from manufacturers for pool 
pumps and motors across a range of capacities and equipment classes. 
Data collected for individual DPPP models included the nominal 
horsepower and efficiency of the pump motor; the MPC of the motor and 
the finished pump; and the efficiency, flow rate, head, and input power 
of the pump at full load and partial loads.
    DOE also collected retail price data for DPPPs and replacement 
motors sold by the online retailers Leslie's Swimming Pool 
Supplies,\56\ INYO Pools,\57\ and Pool Supply World.\58\ These retail 
price data are publicly available on each retailer's Web site. DOE 
estimated MPCs for various pump models using this retail price data and 
several assumptions about supply chain markups (see section IV.D for a 
discussion of markups). DOE primarily used this retail price data 
analysis to supplement and validate the individual MPCs submitted by 
manufacturers.
---------------------------------------------------------------------------

    \56\ www.lesliespool.com/.
    \57\ www.inyopools.com/.
    \58\ www.poolsupplyworld.com/.
---------------------------------------------------------------------------

2. Representative Equipment
    For the engineering analysis, DOE analyzed the MPC-efficiency 
relationships for the equipment classes specified in section IV.A.1. 
Generally, the manufacturing cost and the attainable efficiency of 
dedicated-purpose pool pumps vary as a function of pump capacity (i.e., 
hydraulic horsepower). Because it is impractical to assess the MPC-
efficiency relationship

[[Page 5681]]

for all dedicated-purpose pool pump capacities available on the market, 
DOE selected a set of representative units to analyze. These 
representative units exemplify typical capacities in each equipment 
class and are used to quantify the manufacturing costs and the energy 
savings potential for each equipment class. In general, to determine 
representative capacities for each equipment class, DOE analyzed the 
distribution of available models and/or shipments and discussed its 
finding with the DPPP Working Group. The following subsections discuss 
each equipment class in further detail.
a. Self-Priming Pool Filter Pumps
    The scope of this direct final rule includes self-priming pool 
filter pumps with capacities less than 2.5 hhp at maximum speed on 
curve C. As described in section IV.A.1.c of this document, the DPPP 
Working Group recommended that this range be subdivided into two 
equipment classes, with a breakpoint of 0.711 hhp. This breakpoint 
divides the range of self-priming pool filter pumps into a standard-
size equipment class and a small-size equipment class. DOE used 
shipment distributions provided by manufacturers, distributions of 
models listed in the Pool Pump Performance Database, and feedback from 
the DPPP Working Group to select representative capacities for these 
equipment classes.
    For the standard-size self-priming pool filter pumps, DOE selected 
two representative units, with 1.88 hhp and 0.95 hhp. At the baseline 
efficiency level (discussed further in section IV.C.3), a 1.88-hhp pump 
and a 0.95-hhp pump require 3.0 hp and 1.6 hp shaft input power from 
the motor, respectively. Typically, these pumps are equipped with 
motors rated between 3.5-3.9 thp and 1.7-2.2 thp, respectively.
b. Non-Self-Priming Pool Filter Pumps
    For the small-size self-priming pool filter pump equipment class, 
DOE selected one representative unit with hydraulic horsepower of 0.44 
hhp. DOE reviewed an initial selection of representative units with the 
DPPP Working Group. (Docket No. EERE-2015-BT-STD-0008-0078, April 18 
DPPP Working Group Meeting, at pp. 12-19) The DPPP Working Group 
recommended a break point capacity of 0.711 hhp to separate the small- 
and standard-size self-priming pool filter pump equipment classes (see 
section IV.A.1.c for discussion of this break point). DOE revised the 
capacities of the representative units after this break point was 
introduced, to include a representative capacity of 0.44 hhp for the 
small size self-priming pool filter pump equipment class.
    The scope of this direct final rule also includes non-self-priming 
pool filter pumps with capacities less than 2.5 hhp at maximum speed on 
curve C. However, the majority of non-self-priming pool filter pump 
models on the market deliver less than 1.0 hhp at maximum speed on 
curve C. Accordingly, the representative capacities DOE used to analyze 
the non-self-priming pool filter pump equipment class were different 
from the representative capacities used to analyze the self-priming 
pool filter pump equipment classes. Specifically, DOE selected two 
representative capacities for non-self-priming pool filter pumps, 0.52 
hhp and 0.09 hhp at maximum speed on curve C. The smaller unit (at 0.09 
hhp) is representative of pumps that are typically sold with (or as 
replacements for) seasonal pools. These pumps are typically distributed 
in commerce on a skid with a sand filter, where the pump and the sand 
filter are connected with removable hoses. The larger representative 
unit (at 0.52 hhp) is representative of pumps that are typically sold 
for applications where the pump is installed and operated below the 
waterline of the pool that it services, such as in aboveground pool 
applications. These pumps are typically distributed in commerce as 
standalone pumps. DOE presented the larger representative capacity (at 
0.52 hhp) and the smaller representative capacity (at 0.09 hhp) to the 
DPPP Working Group. (Docket No. EERE-2015-BT-STD-0008-0078, April 18 
DPPP Working Group Meeting, at pp. 27-29; and Docket No. EERE-2015-BT-
STD-0008-0091, June 22 DPPP Working Group Meeting, at pp. 115-118) The 
DPPP Working Group did not offer any opposition to the selected 
representative capacities and ultimately evaluated standards based on 
the analysis of these representative capacities.
c. Pressure Cleaner Booster Pumps
    The pressure cleaner booster pumps on the market are clustered in a 
small range of capacities. For this equipment class, DOE selected a 
capacity that is representative of the cluster of models on the market.
    Specifically, DOE selected a representative capacity of 10 gpm of 
flow and 112 feet of head, which equates to 0.28 hhp. Ten gpm aligns 
with the testing load point specified in the test procedure final rule 
for pressure cleaner booster pumps. The DPPP Working Group recommended 
that pressure cleaner booster pumps be tested at the load point of 10 
gpm and a head greater than 60 feet, to represent the typical pressure 
cleaner booster pump operation.\59\ (Docket No. EERE-2015-BT-STD-0008, 
No. 82 Recommendation #8 at pp. 4-5)
---------------------------------------------------------------------------

    \59\ The DPPP Working Group initially recommended that pressure 
cleaner booster pumps be tested at 90 feet of head and a volumetric 
flow rate that corresponds to 90 feet of head. (Docket No. EERE-
2015-BT-STD-0008, No. 51 Recommendation #6 at pp. 5) However, the 
DPPP Working Group discussed that the minimum pressure requirement 
to drive a pressure cleaner is approximately 60 feet of head. 
(Docket No. EERE-2015-BT-STD-0008-0095, March 22 Working Group 
Meeting, at pp. 207-210) ASAP expressed a desire that the test 
procedure allow better ratings for variable-speed pressure cleaner 
pumps that are able to reduce speed to avoid supplying (and wasting) 
excess pressure beyond what is required to drive the cleaner. 
(Docket No. EERE-2015-BT-STD-0008-0101, May 19 Working Group 
Meeting, at pp. 49) The DPPP Working Group subsequently revised its 
recommendation to recommend that pressure cleaner booster pumps be 
tested at a flow rate of 10 gpm and the minimum head the pump can 
achieve that is greater than or equal to 60 feet. (Docket No. EERE-
2015-BT-STD-0008, No. 82 Recommendation #8 at pp. 4)
---------------------------------------------------------------------------

    At 10 gpm, the pressure cleaner booster pump models from the three 
largest manufacturers (representing the majority of the pressure 
cleaner booster pump market) all achieve a similar head in a range from 
100 feet to 127 feet of head. To represent the average performance of 
the pressure cleaner booster pump models available on the market, DOE 
selected a head value of 112 feet as the value the representative unit 
would achieve at the test condition of 10 gpm.
d. Waterfall Pumps
    The waterfall pumps on the market are clustered in a small range of 
capacities. For this equipment class, DOE selected a capacity that is 
representative of the cluster of models on the market. Specifically, 
DOE selected a representative capacity of 93 gpm of flow and 17 feet of 
head, which equates to 0.40 hhp. Seventeen feet of head aligns with the 
testing load point specified in the test procedure final rule for 
pressure cleaner booster pumps. The DPPP Working Group recommended the 
testing load point of 17 feet of head (and flow corresponding to 17 
feet of head on the pump curve) to represent the typical waterfall pump 
operation. (Docket No. EERE-2015-BT-STD-0008, No. 51 Recommendation #6 
at p. 5)
e. Integral Sand and Cartridge Filter Pool Pump
    In this direct final rule, DOE is establishing a prescriptive 
design standard, rather than a performance standard, for integral sand 
and cartridge filter pool pumps. The DPPP Working

[[Page 5682]]

Group considered two alternatives for this analysis: (1) A prescriptive 
standard that would require a timer for integrated cartridge and 
integrated sand filter pumps, and (2) a performance standard that would 
likely be achieved through the use of advanced motors. To help evaluate 
these alternatives, DOE developed cost-efficiency relationships for 
integrated cartridge and integrated sand filter pool pumps that 
describe (1) the use of a timer on all pumps, and (2) the use of 
advanced motors where possible. The DPPP Working Group reviewed these 
cost-efficiency relationships. DPPP Working Group members commented 
that a prescriptive standard requiring a timer may be economically 
justified, but that a performance standard with advanced motors would 
not be economically justified. A DPPP Working Group member commented 
that a prescriptive standard requiring a timer may not be beneficial 
because some end users may choose to disable or circumvent the timer 
mechanism. DOE clarified that the analytical results will account for 
such instances of misuse, since the rulemaking analysis of a 
prescriptive standard takes into account that a certain percentage of 
end users may not use the prescribed technology properly. (Docket No. 
EERE-2015-BT-STD-0008-0053, November 12 DPPP Working Group Meeting, at 
pp. 45-78)
    As such, in the test procedure final rule, DOE did not establish a 
test method for these equipment classes. However, as a part of this 
direct final rule, DOE still evaluated the incremental MPC-efficiency 
relationship for the prescriptive standard. To do so, DOE established 
representative models based on performance characteristics of these 
pumps on system curve C.
    DOE examined model availability in the integral sand and cartridge 
filter pool pumps and selected one representative equipment capacity 
(0.03 hhp at maximum speed on curve C) for integral sand filter pool 
pumps, and two representative equipment capacities (0.02 hhp and 0.18 
hhp at maximum speed on curve C) for integral cartridge filter pool 
pumps. The DPPP Working Group reviewed the representative equipment 
capacities for integral filter pumps and offered no objections. (Docket 
No. EERE-2015-BT-STD-0008-0094, March 21 DPPP Working Group Meeting, at 
pp. 54-58)
f. Summary of Representative Units
    DOE's representative dedicated-purpose pool pump capacities are 
summarized in Table IV-6.

                     Table IV-6--Characteristics of Representative Units, by Equipment Class
----------------------------------------------------------------------------------------------------------------
                                                                      Performance at test point at 100% speed
         DPPP equipment class                  Test point        -----------------------------------------------
                                                                     Power hhp       Head feet       Flow gpm
----------------------------------------------------------------------------------------------------------------
Self-priming pool filter pump,          Curve C.................            1.88            76.8            96.8
 standard-size.
                                        Curve C.................            0.95            48.7            77.1
Self-priming pool filter pump, small-   Curve C.................            0.44            29.2            59.7
 size.
Non-self-priming pool filter pump.....  Curve C.................            0.52            32.6            63.1
                                        Curve C.................            0.09            10.1            35.1
Pressure cleaner booster pump.........  10 gpm flow.............            0.28           110.0            10.0
Waterfall pump........................  17 ft. head.............            0.40            17.0            93.0
Integral sand filter pool pump........  n/a *...................            0.03             4.9            24.4
Integral cartridge filter pool pump...  n/a *...................            0.18            16.1            44.3
                                        n/a *...................            0.02             3.7            21.3
----------------------------------------------------------------------------------------------------------------
** DOE did not establish a test procedure for integral sand filter pool pumps or integral cartridge filter pool
  pumps, because these equipment classes are not subject to performance standards. However, the performance
  reported for integral pumps in this table is measured on curve C.

3. Baseline Configuration and Performance
    The baseline configuration defines the lowest efficiency equipment 
in each analyzed equipment class. DOE established baseline 
configurations by reviewing the configurations and performance of pumps 
listed in the Pool Pump Performance Database. DOE determined that, for 
pool filter pumps (including all sub-varieties) and pressure cleaner 
booster pumps, the baseline configuration has the following 
characteristics:
     single-speed
     low-efficiency motor
     low hydraulic efficiency
    To determine an appropriate level of performance for each 
representative pool filter pump unit at the baseline, DOE identified 
pumps in the Pool Pump Performance Database that have similar hydraulic 
capacity to the representative units, and that share the baseline 
equipment characteristics. DOE adopted the estimated WEF values of 
these identified pumps as the baseline performance level for each 
representative unit. Pressure cleaner booster pumps and waterfall pumps 
are not listed in the Pool Pump Performance Database. Manufacturers 
provided test data for several models of pressure cleaner booster pumps 
and waterfall pumps, and these test data enabled DOE to estimate the 
performance of representative units at the baseline.
    The baseline configuration for integral filter pumps for which 
prescriptive standards were considered is characterized by median 
performance and lack of a timer mechanism.
    Table IV-7 summarizes the baseline configurations and performance 
levels for the representative units used in this analysis. These 
baseline configurations ultimately define the energy consumption and 
associated costs for the lowest efficiency equipment analyzed in each 
equipment class.

      Table IV-7--Baseline Configurations and Performance for DPPP
                          Representative Units
------------------------------------------------------------------------
                                                             Baseline
     DPPP representative unit             Baseline          performance
                                        configuration           WEF
------------------------------------------------------------------------
Self-priming pool filter pump,      Single-speed, low               1.74
 1.88 hhp.                           efficiency motor,
                                     low hydraulic
                                     efficiency.
Self-priming pool filter pump,                                      2.13
 0.95 hhp.

[[Page 5683]]

 
Self-priming pool filter pump,                                      2.69
 0.44 hhp.
Non-self-priming pool filter pump,                                  2.77
 0.52 hhp.
Non-self-priming pool filter pump,                                  3.93
 0.09 hhp.
Pressure cleaner booster pump.....                                  0.34
Waterfall pump....................                                  7.46
Integral sand filter pool pump....  No timer............             n/a
Integral cartridge filter pool                                       n/a
 pump, 0.18 hhp.
Integral cartridge filter pool                                       n/a
 pump, 0.02 hhp.
------------------------------------------------------------------------

    Chapter 5 of the direct final rule TSD describes the process that 
DOE used to select the baseline configuration for each equipment class 
and discusses the baseline in greater detail.
4. Efficiency Levels
    For each equipment class, DOE established and analyzed a set of 
efficiency levels above the baseline configuration to assess the 
relationship between MPC and DPPP efficiency. These efficiency levels 
are discrete tiers of energy efficiency that can be represented by the 
WEF test metric.
a. Design Option Applicability and Ordering
    For pool filter pump varieties, DOE considered incremental 
improvements that could be applied to the baseline configuration; these 
improvements are related to the three design options discussed in 
section IV.A.6: (1) Improved motor efficiency, (2) ability to operate 
at reduced speeds, and (3) improved hydraulic design.
    Specifically, for the ``improved motor efficiency'' design option, 
DOE considered three tiers or motor efficiency (low, medium, and high 
efficiency) for both single-speed and two-speed pump motors. The 
specific nameplate motor efficiency associated with these tiers varied 
by pump variety and capacity. For the ``ability to operate at reduced 
speeds'' design option, DOE considered three motor speed 
configurations: Single-speed, two-speed, and variable-speed. Finally, 
for the ``improved hydraulic design'' design option, DOE considered two 
hydraulic efficiencies (low and high efficiency). The specific 
hydraulic efficiencies associated with these tiers varied by pump 
variety and capacity.
    For pressure cleaner booster pumps, DOE evaluated the same design 
options as pool filter pumps. However, DOE did not consider two-speed 
motors because pressure cleaner booster pumps only operate at one speed 
and cannot benefit from the ability to switch between two discrete 
speeds. Alternatively, DOE did consider variable-speed motors for 
pressure cleaner booster pumps, as the WEF metric accounts for energy 
savings available from adjusting the pump speed to reach the minimum 
required pressure, i.e., 60 feet.
    For waterfall pumps, DOE evaluated the same improved motor 
efficiency and improved hydraulic efficiency design options as pool 
filter pumps, but did not evaluate the ability to operate at reduced 
speeds. This is because DOE determined that waterfall pumps only 
operate at one speed and therefore cannot benefit from the ability to 
switch speeds.
    To order the design options for each equipment class, DOE 
considered all of the costs (both incremental MPCs and one-time product 
conversion costs) that would be incurred with each design option. Based 
on data from manufacturer interviews, as well as DPPP Working Group 
discussions (Docket No. EERE-2015-BT-0008, March 21 DPPP Working Group 
Meeting, at pp. 108-122), DOE concluded that a direct relationship 
exists between motor MPC and pump WEF score, while a flat relationship 
exists between motor-related conversion costs and WEF score, i.e., 
better performing motors cost more, but manufacturers face similar 
conversion costs for all motor-related design options, regardless of 
whether they are substituting on the basis of motor efficiency or on 
the basis of motor speed configuration. DPPP Working Group members 
clarified that the motor-related conversion costs associated with 
upgrading a pump motor include the costs of sourcing and qualifying the 
pump motor as a purchased component, but they do not include the costs 
that motor manufacturers would incur (e.g., the costs of designing, 
testing, and marketing a motor model). (Docket No. EERE-2015-BT-0008-
0094, March 21 DPPP Working Group Meeting, at pp. 113-114; Docket No. 
EERE-2015-BT-0008-0100, May 18 DPPP Working Group Meeting, at pp. 89-
90) DPPP Working Group members also clarified that the conversion costs 
associated with upgrading motors are not cumulative across multiple 
efficiency levels, i.e., if a manufacturer pays a conversion cost to 
upgrade from EL 0 to EL 2, they do not pay the conversion cost 
associated with an interim upgrade to EL 1. (Docket No. EERE-2015-BT-
STD-0008-0100, May 18 DPPP Working Group Meeting, at pp. 102)
    In discussions with the DPPP Working Group, DOE stated the 
assumption that MPC does not increase as hydraulic efficiency 
increases. Hayward commented that the addition of a diffuser would 
change the efficiency and the MPC of a pump wet end, but DOE noted that 
the analysis already accounts for this effect. The addition of a 
diffuser would change a pump's ability to self-prime and thus, would 
change the pump's equipment class, and DOE already determined the MPCs 
and efficiencies of the different equipment classes on the basis of 
these design differences. (Docket No. EERE-2015-BT-STD-0008-0094, March 
21 DPPP Working Group Meeting, at pp. 117-118) Based on data from 
manufacturer interviews and these Working Group discussions, DOE 
concluded that hydraulic redesign has a negligible effect on MPC, but 
results in significant conversion costs--much greater than those 
incurred for motor-related improvement. The DPPP Working Group did not 
object to these conclusions. Complete discussions of incremental MPC 
and conversion costs are found in sections IV.C.5 and IV.J.2, 
respectively.
    Ultimately, DOE ordered its design options to first employ all 
motor-related design options, based on ascending incremental MPC, 
followed by improved hydraulic design to reach the maximum 
technologically feasible efficiency level. This ordering was reviewed 
by the DPPP Working Group (Docket No. EERE-2015-BT-STD-0008-0094, March 
21 DPPP Working Group Meeting, at pp. 58-105), which

[[Page 5684]]

offered no objections, and ultimately evaluated standards based on 
efficiency levels resulting from this ordering. Table IV-8 describes 
the design options applied to each equipment class at each efficiency 
level from the baseline up to the max-tech level.

       Table IV-8--Design Options by Efficiency Level for Pump Varieties Subject to Performance Standards
----------------------------------------------------------------------------------------------------------------
                                                                      DPPP variety
                                      --------------------------------------------------------------------------
                                                       Pool filter pumps
           Efficiency level           --------------------------------------------------     Pressure cleaner
                                        Self-priming/Non-self-                                 booster pump
                                               priming              Waterfall pump *
----------------------------------------------------------------------------------------------------------------
0 (Baseline).........................  1-speed motor, Low       1-speed motor, Low       1-speed motor, Low
                                        efficiency motor, Low    efficiency motor, Low    efficiency motor, Low
                                        hydraulic efficiency.    hydraulic efficiency.    hydraulic efficiency.
1....................................  1-speed motor, Medium    1-speed motor, Medium    1-speed motor, Medium
                                        efficiency motor, Low    efficiency motor, Low    efficiency motor, Low
                                        hydraulic efficiency.    hydraulic efficiency.    hydraulic efficiency.
2....................................  1-speed motor, High      1-speed motor, High      1-speed motor, High
                                        efficiency motor, Low    efficiency motor, Low    efficiency motor, Low
                                        hydraulic efficiency.    hydraulic efficiency.    hydraulic efficiency.
3....................................  2-speed motor, Low       1-speed motor, High       Variable-speed motor,
                                        efficiency motor, Low    efficiency motor, High   Low hydraulic
                                        hydraulic efficiency.    hydraulic efficiency.    efficiency.
4....................................  2-speed motor, Medium    .......................   Variable-speed motor,
                                        efficiency motor, Low                             High hydraulic
                                        hydraulic efficiency.                             efficiency.
5....................................  2-speed motor, High
                                        efficiency motor, Low
                                        hydraulic efficiency.
6....................................  Variable-speed motor,
                                        Low hydraulic
                                        efficiency.
7 (max tech).........................  Variable-speed motor,
                                        High hydraulic
                                        efficiency.
----------------------------------------------------------------------------------------------------------------
* As described in section IV.A.6.b, DOE did not consider efficiency levels above EL2 for non-self-priming pool
  filter pumps that produce less than 49.4 gpm maximum flow on curve C.

    DOE analyzed one design option for the integral cartridge filter 
pool pump and integral sand filter pool pump classes that are subject 
to prescriptive standards. Table IV-9 presents the two efficiency 
levels considered for those classes: The baseline (without a pool pump 
timer), and EL1 (with a pool pump timer). Chapter 5 of the direct final 
rule TSD contains more details on the development of efficiency levels.

    Table IV-9--Design Options by Efficiency Level for DPPP Varieties
                   Subject to a Prescriptive Standards
------------------------------------------------------------------------
                                            DPPP variety
                           ---------------------------------------------
     Efficiency level         Integral cartridge    Integral sand filter
                                 filter pumps              pumps
------------------------------------------------------------------------
0 (Baseline)..............  Does not include pool  Does not include pool
                             pump timer.            pump timer.
1.........................  Includes pool pump     Includes pool pump
                             timer.                 timer.
------------------------------------------------------------------------

b. Summary of Available Motor Efficiencies
    For the improved motor efficiency design option, DOE selected a 
discrete motor efficiency (or efficiencies, for two-speed motors) for 
each representative unit at each efficiency level. DOE presented 
initial motor efficiency assumptions to the DPPP Working Group. These 
initial figures showed full-speed nameplate motor efficiency ranging 
from 55 percent to 81 percent for motors used in small self-priming 
pool filter pumps and in 0.52-hhp non-self-priming pool filter pumps; 
ranging from 75 percent to 92 percent for motors used in 1.88-hp self-
priming pool filter pumps; ranging from 55 percent to 77 percent for 
motors used in pressure cleaner booster pumps; and ranging from 38 
percent to 50 percent for motors used in waterfall pumps. (Docket No. 
EERE-2015-BT-STD-0008-0094, March 21 DPPP Working Group Meeting, at pp. 
58-65) DPPP Working Group members commented that certain manufacturers 
offer a wider variety of two-speed motors than were represented in 
DOE's initial assumptions. In particular, certain manufacturers offer 
two-speed motors that are designed to have improved efficiency at low 
speed. The DPPP Working Group requested DOE revise the motor efficiency 
assumptions to include a new efficiency level representing a two-speed 
motor with an improved low-speed motor efficiency. (Docket No. EERE-
2015-BT-STD-0008-0094, March 21 DPPP Working Group Meeting, at pp. 76-
77) DOE subsequently added an efficiency level (specifically, EL 4) 
that incorporates a motor with high-speed efficiency of 68 percent and 
low-speed efficiency of 48 percent.
    DPPP Working Group members also commented that the efficiency range 
DOE assumed for waterfall pumps was lower than what exists in the 
market. DPPP Working Group members suggested that DOE examine typical 
motor efficiencies for dedicated 1725-rpm motors. (Docket No. EERE-
2015-BT-STD-0008-0094, March 21 DPPP Working Group Meeting, at pp. 96-
99) DOE reviewed motor catalog data and subsequently revised its 
waterfall motor efficiency assumptions upward. DOE revised the baseline 
waterfall pump motor efficiency from 38 percent to 65 percent 
efficient, and the max tech waterfall pump motor efficiency from 50 
percent to 78 percent efficient.
    Based on motor efficiency data in the CEC pool pump database, DOE 
initially assumed that variable-speed ECM motors are available with 
nameplate efficiency of 92 percent. Members of the DPPP Working Group 
commented that 92 percent would be too high for a nameplate motor 
efficiency, and suggested that the 92 percent figure did not account 
for efficiency losses in the

[[Page 5685]]

motor's electronic drive. DPPP Working Group members requested that DOE 
review its assumption for variable-speed nameplate motor efficiency and 
revise it appropriately. (Docket No. EERE-2015-BT-STD-0008-0094, March 
21 DPPP Working Group Meeting, at pp. 80-82) DOE subsequently revised 
its assumption of typical variable-speed motor efficiency at high-speed 
from 92 percent downward to 82 percent. The DPPP Working Group did not 
object to this assumption.
    DOE also initially assumed that smaller 48-frame motors typically 
used in non-self-priming pumps would be able to achieve the same 
nameplate motor efficiency as the larger 56-frame motors typically used 
in self-priming pool filter pumps. DOE initially assumed that both 48-
frame and 56-frame single-speed motors would be available ranging from 
55 percent efficiency to 77 percent efficiency. DPPP Working Group 
members commented that, due to constraints of their smaller frame size, 
48-frame motors could not always achieve the same efficiency as 56-
frame motors at the same capacity, and that 48-frame motors likely 
could not achieve the 77 percent nameplate efficiency that DOE 
initially assumed. (Docket No. EERE-2015-BT-STD-0008-0091, June 22 DPPP 
Working Group Meeting, pp. 132-138 and pp. 189-191) DOE subsequently 
revised its assumption regarding the nameplate efficiency from 77 
percent to 72 percent for the larger (0.52-hhp) non-self-priming pool 
filter pump representative unit, which used a 48-frame motor. The DPPP 
Working Group did not object to this assumption.
    Table IV-10 presents the revised motor efficiencies for each 
combination of motor efficiency and motor configuration described in 
Table IV-8. DOE selected these motor efficiencies based on data listed 
in the Pool Pump Performance Database, publicly available catalog data, 
and motor data that manufacturers submitted to DOE. Motor components 
with the efficiencies listed in Table IV-10 are currently available on 
the market at the appropriate frame sizes and capacities to drive the 
representative unit pumps.

                                            Table IV-10--Motor Nameplate Efficiencies for Representative Units With Different Motor Configurations *
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                Motor efficiencies (and corresponding ELs) for representative units at high speed except as noted
                               -----------------------------------------------------------------------------------------------------------------------------------------------------------------
       Motor description                            Self-priming pool filter pump                           Non-self-priming pool filter pump
                               --------------------------------------------------------------------------------------------------------------------    Pressure cleaner     Water-fall pump  (%)
                                     0.44 hhp  (%)          0.95 hhp  (%)          1.88 hhp  (%)          0.09 hhp  (%)          0.52 hhp  (%)        booster pump  (%)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
1-speed, low efficiency         55 (EL0)..............  55 (EL0).............  75 (EL0).............  55 (EL0).............  55 (EL0).............  55 (EL0).............  65 (EL0)
 (Baseline).
1-speed, mid efficiency.......  69 (EL1)..............  69 (EL1).............  79 (EL1).............  69 (EL1).............  69 (EL1).............  67 (EL1).............  70 (EL1)
1-speed, high efficiency......  76 (EL2)..............  77 (EL2).............  84 (EL2).............  72 (EL2).............  72 (EL2).............  72 (EL2).............  78 (EL2-3)
2-speed, low efficiency.......  64 high, 38 low (EL3).  64 high, 38 low (EL3)  74 high, 49 low (EL3)  n/a **...............  61 high, 38 low (EL3)  n/a [Dagger].........  n/a [Dagger]
2-speed, mid efficiency.......  70 high, 46 low (EL4).  71 high, 46 low (EL4)  76 high, 55 low (EL4)  n/a **...............  68 high, 48 low (EL4)  n/a [Dagger].........  n/a [Dagger]
2-speed, high efficiency......  73 high, 51 low (EL5).  73 high, 51 low (EL5)  83 high, 62 low (EL5)  n/a **...............  72 high, 51 low (EL5)  n/a [Dagger].........  n/a [Dagger]
Variable Speed................  81 (EL6-7)............  81 (EL6-7)...........  82 (EL6-7)...........  n/a [dagger].........  81 (EL6-7)...........  81 (EL3-4)...........  n/a [Dagger]
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
* The integral cartridge filter pool pump and integral sand filter pool pump equipment classes are not included in this table because DOE did not separately consider the motor costs for these
  equipment classes.
** As discussed in section IV.A.6.b this analysis does not consider two-speed motor configurations for the extra-small non-self-priming pool filter pump representative unit. According to the
  test procedure final rule, this representative unit would always be subject to the single-speed test procedure because the half-speed flow rate for a 0.09 hhp pump would be 17.8 gpm, which
  is less than the test procedure minimum flow rate of 24.7 gpm.
[dagger] As discussed in section IV.A.6.b, this analysis does not consider variable-speed motor configurations for the extra-small non-self-priming pool filter pump representative unit.
[Dagger] Two-speed motors were not considered for waterfall pumps or pressure cleaner booster pumps, and variable-speed motors were not considered for waterfall pumps, because DOE assumes
  these pump varieties are always operated at a single-speed.

c. Summary of Available Hydraulic Efficiencies
    For the ``improved hydraulic design'' design option, DOE evaluated 
two discrete hydraulic efficiencies (``low'' and ``high'') for each 
representative unit. The low hydraulic efficiency represents the pump 
hydraulic efficiency of a baseline unit that has not been optimized. 
The high hydraulic efficiency represents the hydraulic efficiency of a 
pump that has been hydraulically redesigned to improve hydraulic 
efficiency, as described in section IV.A.6.c.
    Table IV-11 presents the selected hydraulic efficiencies at each 
efficiency level described in Table IV-8. DOE selected these hydraulic 
efficiencies based on data listed in the Pool Pump Performance 
Database, publicly available catalog data, and pump test data submitted 
by manufacturers.\60\
---------------------------------------------------------------------------

    \60\ For further information regarding the estimation of 
hydraulic efficiencies, refer to chapter 5 of the direct final rule 
TSD.

[[Page 5686]]



                                                                  Table IV-11--Hydraulic Efficiencies for Representative Units
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                               Hydraulic efficiencies and corresponding efficiency levels for representative units at maximum speed
                                ----------------------------------------------------------------------------------------------------------------------------------------------------------------
Hydraulic efficiency descriptor                      Self-priming pool filter pump                            Non-self-priming pool filter pump
              (%)               ---------------------------------------------------------------------------------------------------------------------   Pressure cleaner       Waterfall pump
                                      0.44 hhp  (%)           0.95 hhp  (%)          1.88 hhp  (%)          0.09 hhp  (%)          0.52 hhp  (%)        booster pump  (%)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Low Hydraulic Efficiency         45 (EL0-EL6)...........  59 (EL0-EL6).........  62 (EL0-EL6).........  23 (EL0-EL2).........  51 (EL0-EL6).........  24 (EL0-EL3)........  61 (EL0-EL2)
 (Applicable ELs).
High Hydraulic Efficiency        49 (EL7)...............  63 (EL7).............  72 (EL7).............  n/a *................  67 (EL7).............  27 (EL4)............  67 (EL3)
 (Applicable ELs).
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
* DOE did not have sufficient data to evaluate a 0.09-hhp non-self-priming pool filter pump with high hydraulic efficiency.

d. Representative Unit Performance at Each Efficiency Level
    In the previous sections of this direct final rule, DOE described 
efficiency levels and the available improvements in motor and hydraulic 
efficiency for different equipment classes. This section describes how 
DOE used that information to calculate the WEF value of each 
representative unit at each efficiency level.
    The DPPP equipment classes within the scope of this direct final 
rule are varied in terms of the number of pump models that are offered 
on the market and in terms of the amount of data available for those 
models. Because of these variations, DOE calculated WEF values using 
slightly different methodologies for each equipment class. The 
following sections describe the methodologies that DOE used for each 
equipment class.
Self-Priming Pool Filter Pumps
    This subsection describes how DOE used the baseline and incremental 
performance data presented in sections IV.C.3 through IV.C.4.c to 
determine the WEF value for three representative self-priming pool 
filter pump units (0.44 hhp, 0.95 hhp, and 1.88 hhp) from efficiency 
levels one through max tech.
    Efficiency levels one and two represent single-speed pumps. For EL1 
and EL2, DOE held hydraulic efficiency constant and replaced the 
baseline maximum speed motor efficiency with the EL1 and EL2 maximum 
speed motor efficiencies (presented in Table IV-10). In doing so, DOE 
was able to calculate the wire-to-water efficiency, input power, and 
ultimately the WEF at maximum speed on curve C. Chapter 5 of the direct 
final rule TSD provides full details regarding the calculations and 
estimations presented in this section.
    Efficiency levels three through five represent two-speed pumps. For 
EL3, EL4, and EL5, DOE used the same method as described for EL1 and 
EL2 to determine pump performance at maximum speed on curve C. However, 
a dedicated-purpose pool pump operating at half-speed will exhibit 
lower hydraulic efficiency and lower motor efficiency compared to its 
full speed operation. To characterize the performance of pumps at half-
speed, DOE referred to the Pool Pump Performance Database, which 
includes half-speed performance data for listings of two-speed self-
priming pool filter pumps. For all three representative units, DOE 
identified pumps in the Pool Pump Performance Database that exemplify 
EL3, with design characteristics of low motor efficiency, two-speed 
motor, and low hydraulic efficiency. DOE used the half-speed motor 
efficiency and input power for these EL3 units to estimate a 
representative baseline half-speed hydraulic efficiency.\61\ Then DOE 
calculated the total efficiency and the input power for EL4 and EL5 at 
half speed by holding the half-speed hydraulic efficiency constant at 
baseline and substituting the half-speed motor efficiencies assumed for 
EL4 and EL5 (presented in Table IV-10). DOE calculated WEF for 
representative units at EL4 and EL5 by combining the half-speed 
performance with the max-speed performance, as specified in the test 
procedure final rule.
---------------------------------------------------------------------------

    \61\ For further information on this method of calculating the 
half-speed hydraulic efficiency and WEF for two-speed pumps, refer 
to chapter 5 of the direct final rule TSD.
---------------------------------------------------------------------------

    Efficiency levels 6 and 7 describe variable-speed pumps. Similar to 
previous ELs, DOE assumed that the baseline motor would be replaced 
with the EL6 and EL7 motors presented in Table IV-10. Unlike two-speed 
pumps, the high-speed test point for variable speed pumps is at 80 
percent of maximum speed on curve C, and the low-speed test point is at 
either 24.7 gpm flow or 31.1 gpm flow on curve C (depending on the pump 
capacity). Although the Pool Pump Performance Database contains 
performance data for many variable-speed pumps, data for these pumps is 
not typically reported at these specific test points. Consequently, DOE 
used the variable-speed performance data available for other speeds to 
estimate performance for the representative units at the specific 
variable-speed test points.
    Based on examination of power-flow curves for many variable-speed 
pumps and variable-speed motor performance data, DOE concluded that 
total efficiency at 80 percent of maximum speed is approximately equal 
to the pump's total efficiency at maximum speed. As such, the hydraulic 
and motor efficiency of each variable-speed representative unit remains 
constant, between 100 percent and 80 percent of maximum speed.\62\
---------------------------------------------------------------------------

    \62\ See chapter 5 of the direct final rule TSD for more details 
regarding the estimation of variable-speed pump performance at the 
80-percent-speed and the low-speed test points.
---------------------------------------------------------------------------

    However, examination of the same power-flow curves and variable-
speed motor performance data indicated that that pump's total 
efficiency will be lower at the low-speed test point, as hydraulic and 
motor efficiency tend to be significantly reduced at low speeds. DOE 
constructed a regression of these power-flow data to quantify the 
relationship between wire-to-water efficiency and speed reduction. This 
relationship allowed DOE to estimate wire-to-water efficiency, and thus 
input power, for each representative unit, based on each unit's wire-
to-water efficiency at maximum speed on curve C. The DPPP Working Group 
reviewed this method of estimating low-speed performance and certain 
members expressed explicit agreement with the results of this low-speed 
estimation methodology. (Docket No. EERE-2015-BT-STD-0008-0094, March 
21 DPPP Working Group Meeting, at pp. 26-35 and Docket No. EERE-2015-
BT-STD-0008-0095, March 22 DPPP Working Group Meeting, at pp. 4-5) None 
of the DPPP Working Group members

[[Page 5687]]

expressed disagreement with this method of estimating low-speed 
performance. The remainder of the DPPP Working Group offered no 
objections, and ultimately evaluated standards based on this 
methodology. Details regarding this regression and the estimation of 
low-speed performance is included in chapter 5 of the direct final rule 
TSD.
    At EL6, DOE also estimated representative baseline low-speed and 
high-speed hydraulic efficiency using data from the Pool Pump 
Performance Database. To do so, DOE identified pumps in the Pool Pump 
Performance Database that exemplify EL6, (those with variable-speed 
motor and low hydraulic efficiency) and referenced the low-speed and 
high-speed motor efficiencies and input power values that DOE estimated 
for those units. DOE used these estimated values to calculate the 
representative hydraulic efficiency of these pumps at low speed and at 
high speed. Details regarding this estimation of hydraulic efficiency 
are included in chapter 5 of the direct final rule TSD.
    Then DOE calculated the total efficiency and the input power for 
EL7 at low speed by holding the low-speed motor efficiency constant at 
its EL6 level and substituting an improved hydraulic efficiency at 
maximum speed on curve C, up to the values specified in Table IV-11. 
DOE calculated the high-speed performance at EL7 in the same way, by 
calculating total efficiency and input power holding the high-speed 
motor efficiency constant and substituting an improved hydraulic 
efficiency. Ultimately, DOE calculated WEF for representative units at 
EL6 and EL7 by combining low-speed performance with the high-speed 
performance, as specified in the test procedure final rule.
Non-Self-Priming Pool Filter Pumps
    This subsection describes how DOE used the baseline and incremental 
performance data presented in sections IV.C.3 through IV.C.4.c to 
determine the WEF values for two representative non-self-priming pool 
filter pump units (0.09 hhp and 0.52 hhp) from efficiency levels 1 
through max tech. DOE analyzed the 0.09-hhp non-self-priming 
representative unit separately from the 0.52-hhp non-self-priming 
representative unit.\63\
---------------------------------------------------------------------------

    \63\ The DPPP Working Group ultimately determined that separate 
standard levels were not appropriate for standard-size non-self-
priming and extra-small non-self-priming pool filter pumps (Docket 
No. EERE-2015-BT-STD-0008-0092, June 23 DPPP Working Group Meeting, 
pp. 277-280), and the two representative capacities are regulated 
together in one equipment class.
---------------------------------------------------------------------------

    DOE did not analyze any efficiency levels above EL2 for the 0.09-
hhp non-self-priming pool filter pump representative unit. As discussed 
in section IV.A.6.b, the design option described as ``ability to 
operate at reduced speeds'' does not benefit pool filter pumps that are 
below 49.4 gpm at maximum speed on curve C. The representative unit 
characteristics in Table IV-6 show that the 0.09-hhp non-self-priming 
representative unit achieves a flow rate of 35.1 gpm at maximum speed 
on curve C. This flow rate is below the 49.4 gpm threshold, so DOE 
analyzed only single-speed efficiency levels (EL0 through EL2) for the 
0.09-hhp non-self-priming pool filter pump. DOE discussed this point 
with the DPPP Working Group and the group did not offer any comments or 
objections. (Docket No. EERE-2015-BT-STD-0008-0091, June 22 DPPP 
Working Group Meeting, pp. 115-116)
    To calculate the WEF of non-self-priming pool filter pumps at EL1 
and EL2 at maximum speed on curve C, DOE used the same methods as those 
described for self-priming pool filter pumps at EL1 and EL2.
    To calculate the WEF of 0.52-hhp non-self-priming pool filter pumps 
at EL3, EL4, and EL5, DOE used the same methods as those described for 
self-priming pool filter pumps at EL3, EL4, and EL5.
    Efficiency levels 6 and 7 describe variable-speed pumps. Similar to 
previous ELs, DOE assumed that the baseline motor would be replaced 
with the EL6 and EL7 motors presented in Table IV-10. As described in 
the discussion of self-priming pool filter pumps, the high-speed test 
point for variable-speed pumps is at 80 percent of maximum speed on 
curve C, and the low-speed test point is at either 24.7 gpm flow or 
31.1 gpm flow on curve C (depending on the pump capacity). However, the 
Pool Pump Performance Database does not contain performance data for 
any variable-speed non-self-priming pool filter pumps, and DOE is not 
aware of any non-self-priming pool filter pumps on the market that 
incorporate a variable-speed motor. To characterize EL6 and EL7, DOE 
estimated the performance of a hypothetical variable-speed non-self-
priming pool filter pump. Based on examinations of power-flow curves 
for self-priming and non-self-priming pool filter pumps, DOE concluded 
that these two pump varieties experience similar degradation of motor 
and hydraulic efficiency as pump flow is reduced. DOE estimated the 
low-speed efficiencies of non-self-priming pumps using the same 
relationship between wire-to-water efficiency and speed reduction that 
was determined by regression of self-priming pool filter pump data. DOE 
applied this relationship to the 0.52-hhp representative non-self-
priming unit to this representative unit at 80-percent speed and at low 
speed.
    DOE then calculated the total efficiency and the input power for 
EL7 at low speed by holding the low-speed motor efficiency constant at 
its EL6 level and substituting an improved hydraulic efficiency at 
maximum speed on curve C, up to the values specified in Table IV-11. 
Ultimately, DOE calculated WEF for representative units at EL6 and EL7 
by combining low-speed performance with the high-speed performance, as 
specified in the test procedure final rule.
Pressure Cleaner Booster Pumps
    This subsection describes how DOE used the baseline and incremental 
performance data presented in sections IV.C.3 through IV.C.4.c to 
determine the WEF value for one representative pressure cleaner booster 
pump (at 0.28 hhp at the test point of 10 gpm flow) from efficiency 
levels 1 through max tech.
    To calculate the WEF of pressure cleaner booster pumps at EL1 and 
EL2 at the pressure cleaner booster pump test point of 10 gpm of flow, 
DOE used the same methods as those described for self-priming pool 
filter pumps at EL1 and EL2.
    EL 3 represents a variable-speed pump. As described in section 
IV.A.6.b, pressure cleaner booster pumps are tested at 100 percent 
speed or (for variable-speed pumps) at the lowest speed that can 
achieve 60 feet of head at the 10 gpm test condition.\64\ DOE assumed 
that the representative unit's motor efficiency would improve from EL2 
to EL3, as the shift from single speed to variable speed would likely 
be achieved by switching from induction motor technology to the more 
efficient ECM technology.\65\ For EL3, DOE held hydraulic efficiency 
constant and replaced the EL2 motor efficiency with the EL3 maximum 
speed motor efficiency (presented in Table IV-10).

[[Page 5688]]

DOE used pump affinity laws \66\ to calculate the input power that the 
representative unit would consume at 60 feet of head at 10 gpm 
flow.\67\ In doing so, DOE was able to calculate the wire-to-water 
efficiency and ultimately WEF at the waterfall pump test point of 10 
gpm flow.
---------------------------------------------------------------------------

    \64\ The DPPP Working Group requested that DOE examine variable-
speed pumps as a design option for pressure cleaner booster pumps. 
(Docket No. EERE-2015-BT-STD-0008-0095, March 22 DPPP Working Group 
Meeting, at pp. 197-203)
    \65\ As noted in section IV.A.6.a, ECMs are inherently more 
efficient than induction motors because their construction minimizes 
slip losses between the rotor and stator components.
    \66\ The pump affinity laws relevant to this calculation are 
stated in Equation 5, Equation 6, and Equation 7.
    \67\ DOE calculated that, for the representative pressure 
cleaner booster pump, this operating point represents 73 percent of 
the pump's maximum speed. Based on examination of power-flow curves 
for many variable-speed self-priming pool filter pumps and variable-
speed motor performance data, DOE concluded that this reduced-speed 
operation would incur negligible motor efficiency and hydraulic 
efficiency losses. Thus, DOE assumed that the representative 
pressure cleaner booster pump operating at 73 percent speed would 
exhibit the same motor efficiency and hydraulic efficiency as it 
would when operating at 100 percent speed.
---------------------------------------------------------------------------

    Efficiency level four represents a variable-speed pressure cleaner 
booster pump with improved hydraulic design. DOE calculated the total 
efficiency and the input power for EL4 by holding the motor efficiency 
constant at its EL3 level and substituting an improved hydraulic 
efficiency at maximum speed on curve C, up to the value specified in 
Table IV-11. Chapter 5 of the direct final rule TSD provides full 
details regarding the calculations and estimations presented in this 
section.
Waterfall Pumps
    This subsection describes how DOE used the baseline and incremental 
performance data presented in sections IV.C.3 through IV.C.4.c to 
determine the WEF value for one representative waterfall pump (at 0.40 
hhp at the test point of 17 feet of head) from efficiency levels 1 
through max tech.
    To calculate the WEF of waterfall pumps at EL1 and EL2 at the 
waterfall pump test point of 17 feet of head, DOE used the same methods 
as those described for self-priming pool filter pumps at EL1 and EL2.
    Efficiency level three represents a single-speed pump with improved 
hydraulic design. DOE calculated the total efficiency and the input 
power for EL3 by holding the motor efficiency constant at its EL2 level 
and substituting an improved hydraulic efficiency at maximum speed on 
curve C, up to the values specified in Table IV-11. Chapter 5 of the 
direct final rule TSD provides full details regarding the calculations 
and estimations presented in this section.
Summary of Representative Unit Performance at Each Efficiency Level
    Table IV-12 presents the performance in terms of WEF calculated for 
each of the representative units at each efficiency level.

                                        Table IV-12 Performance of Representative Units at Each Efficiency Level
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                       Representative units
                                         ---------------------------------------------------------------------------------------------------------------
                                                           Self-priming                          Non-self-priming
            Efficiency level             ---------------------------------------------------------------------------------------------------------------
                                                                                                                            Water-fall       Pressure
                                          0.44 hhp (WEF)  0.95 hhp (WEF)  1.88 hhp (WEF)  0.09 hhp (WEF)  0.52 hhp (WEF)       (WEF)       cleaner (WEF)
--------------------------------------------------------------------------------------------------------------------------------------------------------
0 (Baseline)............................            2.69            2.13            1.74            3.93            2.77            7.46            0.34
1.......................................            3.37            2.67            2.03            4.93            3.47            7.95            0.42
2.......................................            3.72            2.98            2.16            5.14            3.62            8.95            0.45
3.......................................            4.68            3.98            3.45           * n/a            4.62            9.85            0.51
4.......................................            5.38            4.60            3.66           * n/a            5.47          ** n/a            0.56
5.......................................            5.77            4.88            4.18           * n/a            5.80          ** n/a          ** n/a
6.......................................            8.78            6.89            5.21           * n/a            7.42          ** n/a          ** n/a
7.......................................           11.71            8.59            6.97           * n/a           11.96          ** n/a          ** n/a
(Max Tech)..............................
--------------------------------------------------------------------------------------------------------------------------------------------------------
* DOE evaluated 0.09-hhp non-self-priming pool pumps at single-speed efficiency levels only.
** The max-tech efficiency level is EL3 for waterfall pumps and EL4 for pressure cleaner booster pumps.

e. Efficiency Level Structure for All Pump Capacities
    The previous section summarizes the performance of the 
representative units at each efficiency level. However, the market for 
self-priming and non-self-priming pool filter pumps is more diverse 
than these representative units. The self-priming and non-self-priming 
pool filter pump classes include pumps less than 2.5 hhp, and the range 
of available pump efficiencies (as measured by WEF) decreases as pump 
capacity increases. To reflect this variation, DOE developed efficiency 
levels for these equipment classes in the form of equations to specify 
the WEF performance of equipment across the range of hydraulic power.
    For self-priming and non-self-priming pool filter pumps, DOE 
constructed mathematical functions that fit the performance of the 
representative units at each efficiency level. DOE observed that the 
natural logarithm function provides curves with the best fit (i.e., the 
least error) when comparing the calculated curve values to the 
performance values that DOE estimated for representative units. DOE 
constructed scatterplots (Figure IV.4 and Figure IV.5) to visualize the 
performance of the self-priming and non-self-priming pool filter pumps 
listed in the Pool Pump Performance Database, along with the 
representative unit performance at each efficiency level and the 
efficiency level curve equations.
    DOE manually adjusted coefficients in the efficiency level curves 
to shape the curves to meet the needs of the DPPP Working Group. For 
instance, DOE adjusted the EL6 curve for self-priming pool filter pumps 
so that all variable-speed self-priming pool filter pumps listed in the 
Pool Pump Performance Database would meet a standard set at EL6. The 
development of the finished efficiency level curve equations is 
described further in chapter 5 of the direct final rule TSD. After DOE 
adjusted the efficiency level curves, the DPPP Working Group reviewed 
them (Docket No. EERE-2015-BT-STD-0008-0078, April 18 DPPP Working 
Group Meeting, at pp. 17-18), offered no objections, and ultimately 
evaluated standards based on these efficiency levels. DOE presented an 
alternate curve for EL 6 that accounted for the statistical error 
inherent in the estimation of WEF scores.\68\ (Docket No. EERE-2015-BT-

[[Page 5689]]

STD-0008-0100, May 18 DPPP Working Group Meeting, at pp. 118-120) The 
DPPP Working Group ultimately reached consensus, with no dissenting 
votes, to recommend the original EL 6 curve that does not include 
corrections for statistical error. (Docket No. EERE-2015-BT-STD-0008-
0092, June 23 DPPP Working Group Meeting, at pp. 282-283) .
---------------------------------------------------------------------------

    \68\ DOE did not have access to performance data for variable-
speed pool filter pumps at the load points prescribed in the test 
procedure final rule. DOE estimated the performance of pool filter 
pumps at these load points using statistical regression analysis, as 
described in section IV.C.1.a. DOE estimated that the regression 
analysis introduces statistical error of about 8 percent for the WEF 
scores calculated for representative pool filter pump units.
[GRAPHIC] [TIFF OMITTED] TR18JA17.012


[[Page 5690]]


[GRAPHIC] [TIFF OMITTED] TR18JA17.013

    As evidenced in Figure IV.4 and Figure IV.5, the DPPP Working Group 
ultimately requested that each efficiency level curve become a flat 
line at 40 gpm (which is equivalent to 0.13 hhp on curve C) so that for 
each curve, all flow values below 40 gpm correspond to the WEF score 
for the efficiency level at 40 gpm. (Docket No. EERE-2015-BT-STD-0008-
0092, June 23 DPPP Working Group Meeting, at pp. 277-280) The DPPP 
Working Group made this request for both self-priming and non-self-
priming pool filter pumps.
    The pressure cleaner booster pumps on the market are clustered in a 
small range of capacities, with hydraulic power ranging from 0.26 hhp 
to 0.32 hhp at the test point of 10 gpm flow. Due to the limit range of 
available capacities, DOE did not use equations to describe the 
efficiency levels for pressure cleaner booster pumps. Instead, DOE 
selected fixed WEF values to represent the efficiency levels. The DPPP 
Working Group reviewed this method and recommended that DOE set a 
standard level for pressure cleaner booster pumps that is a single 
value. (EERE-2015-BT-STD-0008, No. 82, Recommendation #1 at pp. 1-2) 
Chapter 5 of the direct final rule TSD contains complete details 
regarding the development of efficiency levels for pressure cleaner 
booster pumps.
    For waterfall pumps, DOE performed the economic analyses on the 
waterfall pump representative units from baseline to max tech and 
presented the results to the DPPP Working Group. DOE's analytical 
results showed that EL 1 and EL 2 would have negative LCC savings. Many 
DPPP Working Group members commented that the energy savings for the 
waterfall class would be small and thus not economically justifiable to 
pursue standards for waterfall pumps. (Docket No. EERE-2015-BT-STD-
0008-0101, May 19 DPPP Working Group Meeting, at pp. 35-36 and pp. 45-
46) Consequently, DOE did not establish detailed potential standard 
levels for waterfall pumps beyond the aforementioned representative 
units.
    Table IV-13 presents the equations used to calculate the WEF at 
each efficiency level as a function of hydraulic horsepower for self-
priming and non-self-priming pool filter pumps. Table IV-14 presents 
the fixed WEF values at each efficiency level for pressure cleaner 
booster pumps.

       Table IV-13--Efficiency Level WEF Equations for Self-Priming and Non-Self-Priming Pool Filter Pumps
----------------------------------------------------------------------------------------------------------------
                                                                   Equipment class
                                   -----------------------------------------------------------------------------
                                    Self-priming pool filter pumps, small  Non-self-priming pool filter pumps **
         Efficiency level                and standard classes (WEF) *                     (WEF) *
                                   -----------------------------------------------------------------------------
                                      <=0.13 hhp          >0.13 hhp          <=0.13 hhp          >0.13 hhp
----------------------------------------------------------------------------------------------------------------
0 (Baseline)......................            3.51  -0.69 x ln(hhp) +                3.71  -0.69 x ln(hhp) +
                                                     2.10.                                  2.30.
1.................................            4.84  -1.10 x ln(hhp) +                4.60  -0.85 x ln(hhp) +
                                                     2.60.                                  2.87.

[[Page 5691]]

 
2.................................            5.55  -1.30 x ln(hhp) +                4.92  -0.90 x ln(hhp) +
                                                     2.90.                                  3.08.
3.................................            5.89  -1.00 x ln(hhp) +                5.89  -1.00 x ln(hhp) +
                                                     3.85.                                  3.85.
4.................................            7.05  -1.30 x ln(hhp) +                7.05  -1.30 x ln(hhp) +
                                                     4.40.                                  4.40.
5.................................            7.60  -1.30 xln(hhp) + 4.95            7.60  -1.30 x ln(hhp) +
                                                                                            4.95.
6.................................           11.28  -2.30 x ln(hhp) +                9.36  -1.60 x ln(hhp) +
                                                     6.59.                                  6.10.
7.................................           13.40  -2.45 x ln(hhp) +               13.86  -1.60 x ln(hhp) +
(Max Tech)........................                   8.40.                                  10.60.
----------------------------------------------------------------------------------------------------------------
* hhp represents the hydraulic horsepower of the pump, measured at maximum speed on system curve C and reported
  in units of horsepower.
** As described in section IV.A.6.b, DOE did not consider efficiency levels above EL2 for non-self-priming pool
  filter pumps that produce less than 49.4 gpm maximum flow on curve C.


  Table IV-14--Efficiency Level WEF Values for Pressure Cleaner Booster
                                  Pumps
------------------------------------------------------------------------
                                                        Equipment class
                                                     -------------------
                  Efficiency level                     Pressure cleaner
                                                       booster pumps, at
                                                       10 gpm flow (WEF)
------------------------------------------------------------------------
0 (Baseline)........................................                0.34
1...................................................                0.42
2...................................................                0.45
3...................................................                0.51
4...................................................                0.56
------------------------------------------------------------------------

5. Manufacturer Production Costs
    This section present the MPCs at each efficiency level, for each 
equipment class, and discusses the analytical methods used to develop 
these MPCs. This section contains six subsections. The first subsection 
describes the principal drivers of manufacturing costs. The second and 
third subsections focus on the motor costs and non-motor costs for pool 
filter pumps and pressure cleaner booster pumps. The fourth subsection 
focuses specifically on the costs of integral sand filter and integral 
cartridge filter pumps. The final two subsections present cost-
efficiency tables and MPC breakdowns for all DPPP equipment classes.
a. Principal Drivers of DPPP Manufacturing Costs
    For most models of pool filter pumps and pressure cleaner booster 
pumps, the motor is the most expensive component of the pump. As 
discussed previously, for these equipment classes, all efficiency 
levels except max tech are defined by a motor substitution. In a motor 
substitution, the pump motor of a representative baseline (low 
efficiency, single-speed) unit is exchanged with a motor that will 
provide improved performance (e.g., improved efficiency or ability to 
operate at reduced speed).
    DOE researched the design and engineering constraints associated 
with motor substitution, examining manufacturer interview responses and 
holding discussions with the DPPP working group. In particular, Hayward 
commented that manufacturers would incur costs, such as costs 
associated with testing, packaging, and labeling, when substituting the 
motor component of a pump. (Docket No. EERE-2015-BT-STD-0008-0079, 
April 19 DPPP Working Group Meeting, at pp. 105-106) Zodiac commented 
that manufacturers would incur costs for motor substitutions associated 
with qualification testing, reliability testing, and updating catalogs 
and marketing materials. (Docket No. EERE-2015-BT-STD-0008-0100, May 18 
DPPP Working Group Meeting, at pp. 78) DOE included the cost items 
described by Hayward and Zodiac in the product conversion costs 
(discussed in section IV.J.2.c) in the MIA and did not account for them 
in the MPC figures estimated for dedicated-purpose pool pumps. DOE 
concluded that for the representative equipment capacities being 
considered, a given DPPP wet end could be paired with a range of motors 
of various efficiencies and speed configurations without significant 
changes to the per-unit costs associated with manufacturing the wet 
end. In other words, a motor swap results in negligible incremental MPC 
to the non-motor components of the dedicated-purpose pool pump. Thus, 
DOE concluded that the incremental MPC of the motor swap design options 
(improved motor efficiency and ability to operate at reduced speeds) 
may be considered equivalent to the incremental MPC of the motor 
component being swapped.
    Consequently, DOE broke the equipment MPCs for pool filter pumps 
and pressure cleaner booster pumps into two categories--motor costs and 
non-motor costs--and estimated the MPC of each separately. However, DOE 
did not break out the motor costs of the integral cartridge and 
integral sand filter pool pump classes because no motor design options 
were considered for these equipment classes.
b. Pool Filter Pump and Pressure Cleaner Booster Pump Motor Costs
    DOE quantified pump motor MPCs at each efficiency level, for each 
representative unit. These MPCs represent the cost incurred by DPPP 
manufacturers to either purchase the motors or assemble them in house.
    DOE estimated motor costs using two data sources: (1) Estimates 
provided by manufacturers, and (2) publicly available motor catalogs. 
DOE presented initial motor cost estimates to the DPPP Working Group 
and received feedback from the group. (Docket No. EERE-2015-BT-0008-
0094, March 21 DPPP Working Group Meeting, at pp. 108-122) Hayward 
commented that the motor MPCs that DOE initially presented for 
variable-speed pump motors were extremely low, and Hayward asked DOE to 
ensure that these MPC figures include the cost of all three components 
(the motor, the motor drive, and the user interface) that are required 
to replace a single-speed or two-speed motor. (Docket No. EERE-2015-BT-
0008-0100, May 18 DPPP Working Group Meeting, at pp. 130-131) DOE's 
contractor subsequently received new motor cost data and revised the 
MPC assumptions for variable-speed motors based on those numbers.
    The revised motor component costs presented in Table IV-15 
represent aggregate cost estimates for the dedicated-purpose pool pump 
industry,

[[Page 5692]]

and do not represent the costs incurred by any one pump manufacturer. 
The costs in Table IV-15 include all of the costs incurred to deliver 
finished motor components that are ready for assembly into a pump.\69\ 
For variable-speed motors, the listed costs include the cost of 
controls (which include a motor driver and a user interface), as 
variable-speed motors require this equipment to operate. (Docket No. 
EERE-2015-BT-STD-0008-0079, April 19 DPPP Working Group Meeting, at pp. 
207-208)
---------------------------------------------------------------------------

    \69\ For manufacturers that purchase third-party motors, these 
costs include shipping and delivery costs, as well as the overhead 
associated with ordering and inventory. For manufacturers that 
assemble motors in house, these costs include the components, labor, 
and depreciation associated with motor assembly.
---------------------------------------------------------------------------

    As discussed in section IV.A.5.b, variable-speed motors are not 
currently available in capacities smaller than 1.65 thp. Initially, DOE 
assumed that motor manufacturers would begin to offer variable-speed 
motors smaller than 1.65-thp, and DOE estimated the costs of these 
smaller motors by extrapolating the costs of larger variable-speed 
motors that are currently available. (Docket No. EERE-2015-BT-STD-0008-
0078, April 18 DPPP Working Group Meeting, at pp. 31-32) The DPPP 
Working Group recommended that DOE consider only motors that that are 
currently available on the market. (EERE-2015-BT-STD-0008-0079, April 
19 DPPP Working Group Meeting, at pp. 109-112) Specifically, the DPPP 
Working Group did not find it reasonable to assume that motor suppliers 
would develop smaller variable-speed motor that are not are already 
available on the market. (Docket No. EERE-2015-BT-STD-0008-0079, April 
19 DPPP Working Group Meeting, at pp. 109) Thus, DOE modeled a 1.65-thp 
variable-speed motor that would be the motor of choice for smaller 
representative units at efficiency levels that are defined by variable-
speed motors.
    DPPP Working Group members commented that smaller DPPP models may 
require additional design changes to accommodate a 1.65-thp variable-
speed motor. DOE requested comments on the product conversion costs 
that would be required to adapt smaller DPPP models to use 1.65-thp 
variable-speed motors. (Docket No. EERE-2015-BT-STD-0008-0079, April 19 
DPPP Working Group Meeting, at pp. 108-113) DOE incorporated 
manufacturer feedback into the product conversion cost assumptions, 
which are discussed in section IV.J.2.c.
    DOE presented the revised motor costs in Table IV-15 to the DPPP 
Working Group and the DPPP Working Group did not offer any comments in 
opposition. (Docket No. EERE-2015-BT-STD-0008-0100, May 18 DPPP Working 
Group Meeting, at pp. 115-116; Docket No. EERE-2015-BT-0008-0101, May 
19 DPPP Working Group Meeting, at pp. 6-10)

                                                       Table IV-15--MPC of DPPP Motor Components *
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                       Representative units
                                         ---------------------------------------------------------------------------------------------------------------
                                                   Self-priming pool filter pump           Non-self-priming pool filter      Pressure
            Motor description            ------------------------------------------------              pump                   cleaner       Water-fall
                                                                                         --------------------------------  booster pump      pump ($)
                                           0.44 hhp ($)    0.95 hhp ($)    1.88 hhp ($)    0.09 hhp ($)    0.52 hhp ($)         ($)
--------------------------------------------------------------------------------------------------------------------------------------------------------
(Baseline) 1-speed low efficiency.......              55              66             142              24              46              53              58
1-speed, mid efficiency.................              68              85             177              30              50              63              69
1-speed, high efficiency................              87             101             198              36              64              83              88
2-speed, low efficiency.................              90             102             226          ** n/a              68  [dagger][dagge  [dagger][dagge
                                                                                                                                  r] n/a          r] n/a
2-speed, mid efficiency.................             100             119             239          ** n/a              82  [dagger][dagge  [dagger][dagge
                                                                                                                                  r] n/a          r] n/a
2-speed, high efficiency................             111             137             253          ** n/a              96  [dagger][dagge  [dagger][dagge
                                                                                                                                  r] n/a          r] n/a
Variable Speed..........................             273             273             367    [dagger] n/a             273             273  [dagger][dagge
                                                                                                                                                  r] n/a
--------------------------------------------------------------------------------------------------------------------------------------------------------
* The integral cartridge filter pool pump and integral sand filter pool pump equipment classes are not included in this table because DOE did not
  separately consider the motor costs for these equipment classes.
** As discussed in section IV.A.6.b this analysis does not consider two-speed motor configurations for the 0.09-hhp non-self-priming pool filter pump
  representative unit. According to the test procedure final rule, this representative unit would always be subject to the single-speed test procedure
  because the half-speed flow rate for a 0.09-hhp pump would be 17.8 gpm, which is less than the test procedure minimum flow rate of 24.7 gpm.
[dagger] As discussed in section IV.A.6.b, this analysis does not consider variable-speed motor configurations for the 0.09-hhp non-self-priming pool
  filter pump representative unit.
[dagger][dagger] Two-speed motors were not considered for waterfall pumps or pressure cleaner booster pumps, and variable-speed motors were not
  considered for waterfall pumps, because DOE assumes these pump varieties are always operated at a single-speed.

c. Pool Filter Pump and Pressure Cleaner Booster Pump Non-Motor Costs
    The non-motor costs of manufacturing pool filter pumps and pressure 
cleaner booster pumps include the costs associated with manufacturing 
the wet end of the pump and the costs associated with assembling and 
packaging the pump. To determine the MPC of non-motor components, DOE 
developed a comprehensive spreadsheet model itemizing all component 
parts and their associated costs. The spreadsheet model took inputs 
from virtual teardowns as well as data obtained through manufacturer 
interviews and independent research. For the virtual teardowns, DOE 
referenced catalogs of replacement pump parts and analyzed the 
materials and the manufacturing processes used to produce the various 
pump components. With this information, DOE calculated the amount a 
DPPP manufacturer would pay to produce each representative unit. 
Chapter 5 of the direct final rule TSD includes further detail on the 
inputs and methods used to determine MPC, including material, labor, 
and overhead breakdowns.
    Table IV-16 presents the non-motor MPCs associated with producing 
representative units in the pool filter pump and pressure cleaner 
booster pump equipment classes. DOE presented these costs to the DPPP 
Working Group (Docket No. EERE-2015-BT-STD-0008-0094, March 21 DPPP 
Working Group Meeting, at pp. 117-118) and received no objections.

[[Page 5693]]



                               Table IV-16--Non-Motor MPC for Pool Filter Pump and Pressure Cleaner Booster Pump Classes *
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                           Representative units
                                  ------------------------------------------------------------------------------------------------------
                                             Self-priming pool filter pump              Non-self-priming pool filter
                                  ---------------------------------------------------               pump                    Pressure
                                                                                     ---------------------------------- cleaner booster
                                       0.44 hhp         0.95 hhp         1.88 hhp         0.09 hhp         0.52 hhp           pump
----------------------------------------------------------------------------------------------------------------------------------------
Non-Motor Costs..................             $47              $47              $50              $23              $24              $35              $42
--------------------------------------------------------------------------------------------------------------------------------------------------------
* The integral cartridge filter pool pump and integral sand filter pool pump equipment classes are not included in this table because DOE did not
  separately consider the motor costs for these equipment classes.

    DOE investigated the incremental MPC associated with manufacturing 
a pool filter pump with high hydraulic efficiency compared to a pool 
filter pump with low hydraulic efficiency. To do this, DOE identified 
several pairs of pool filter pumps that had identical capacities and 
motor efficiencies, but one pump had higher total efficiency than the 
other at maximum speed on curve C. DOE used a manufacturing cost model 
to individually model the MPCs of the higher efficiency wet end and the 
lower efficiency wet end. DOE determined that the MPC of producing a 
higher efficiency wet end would be approximately equal to the MPC of 
producing a low efficiency wet end. Thus, DOE concluded that there 
would be no incremental MPC associated with improving the hydraulic 
efficiency of a pool filter pump.\70\ DOE presented this conclusion to 
the DPPP Working Group, which raised no objections. (Docket No. EERE-
2015-BT-STD-0008-0094, March 21 DPPP Working Group Meeting, at pp. 117-
118)
---------------------------------------------------------------------------

    \70\ DOE notes that manufacturers would still likely incur costs 
for component design, prototyping, tooling, and testing. These costs 
are not included in the per-unit MPC figures described in this 
section. Instead, these one-time conversion costs are discussed in 
the manufacturer impact analysis discussed in section IV.J of this 
direct final rule.
---------------------------------------------------------------------------

d. Cost Analysis of Integral Filter Pool Pump Equipment Classes
    DOE did not break out the motor component costs for integral filter 
pool pump equipment classes estimating MPCs for that class. DOE first 
estimated the MPC of the three representative units associated with 
these classes at the baseline efficiency level. DOE then estimated the 
incremental cost of the sole design option (pool pump timer) considered 
for these classes.
Baseline MPCs of Integral Filter Pump Classes
    DOE used several data sources to estimate the MPC of integral 
filter pumps at the baseline efficiency level:
     DOE received MPC estimates from manufacturers, including 
estimates of the MPC of integral filter pumps at the baseline level.
     DOE retrieved retail price data for integral filter pumps 
that are commercially available on the market. These retail prices 
represent the MPC of producing a unit plus the various markups and 
taxes that are applied along the distribution chain.\71\ DOE aggregated 
retail price data for representative integral filter pump units and 
divided by a set of assumed markups to estimate the MPCs of 
representative units.
---------------------------------------------------------------------------

    \71\ Markups are discussed in section IV.D of this notice and 
markup assumptions are presented in chapter 6 of the direct final 
rule TSD.
---------------------------------------------------------------------------

     DOE conducted a reverse-engineering teardown as a bottom-
up approach to estimate the MPC of a representative unit. DOE purchased 
and disassembled an integral filter pump and created a manufacturing 
cost model to estimate the manufacturing costs associated with 
producing the pump at the same volumes as integral pump manufacturers.
    DOE aggregated the cost data from these sources. Table IV-17 
presents the estimated MPC for the three representative units of 
integral filter pool pumps. DOE presented the MPCs in Table IV-17 to 
the DPPP Working Group and the DPPP Working Group did not offer any 
opposition or additional comments. (Docket No. EERE-2015-BT-STD-0008-
0094, March 21 DPPP Working Group Meeting, at pp. 132-133).

                          Table IV-17--MPCs for Integral Filter Pump Equipment Classes
----------------------------------------------------------------------------------------------------------------
                                                                            Representative equipment
                                                              --------------------------------------------------
                                                                Integral sand    Integral cartridge filter pool
                                                                 filter pool                  pump
                                                                     pump      ---------------------------------
                                                              -----------------
                                                                   0.03 hhp         0.02 hhp         0.18 hhp
----------------------------------------------------------------------------------------------------------------
Baseline MPC.................................................             $57              $17              $92
----------------------------------------------------------------------------------------------------------------

Incremental Cost of Pool Pump Timer Design Option
    The only design option considered for the integral cartridge filter 
pool pump and integral sand filter pool pump equipment classes is the 
addition of a pool pump timer. The DPPP Working Group recommended that 
the prescriptive standard for including a timer with integral filter 
pumps should be fulfilled by a timer that is either integral to the 
pump or that is a separate component shipped with the pump. (Docket No. 
EERE-2015-BT-STD-0008-0082, Recommendation #2 at p. 2) Based on 
manufacturer interviews, DOE concluded that the incremental cost of 
adding a pool pump timer would be approximately the same for all three 
representative units associated with the integral filter pump equipment 
classes.
    DOE separately evaluated the costs of integrating a timer into an 
existing integral filter pump and the costs of including a timer with 
an existing pump. To estimate the cost of integrating a timer into an 
existing pump, DOE used MPC estimates provided by pump manufacturers.

[[Page 5694]]

These data included manufacturer estimates of the incremental MPC of 
integrating a timer into existing integral pump products. To estimate 
the cost of including a timer with an existing pump, DOE conducted a 
retail price analysis of timers that are available off the shelf. DOE 
retrieved retail prices for off-the-shelf timers that would meet the 
criteria required for servicing an outdoor integral filter pump (e.g., 
timer is waterproof, timer is electrically grounded, and is rated to an 
amperage greater than what the pump requires). DOE then derated the 
retail price to estimate the price of timers purchased in bulk.
    DOE aggregated the cost data from these sources, and estimated that 
the industry average incremental cost of adding a pool pump timer to an 
integral filter pump is $6.67 per unit. DOE presented this incremental 
cost to the DPPP Working Group and the DPPP Working Group did not 
oppose it or offer additional comments. (Docket No. EERE-2015-BT-STD-
0008-0094, March 21 DPPP Working Group Meeting, at pp. 132).
e. Cost-Efficiency Results
    This subsection presents the cost-efficiency tables that result 
from the combination of motor and wet end costs at each efficiency 
level. Table IV-18 through Table IV-22 present results for each 
representative unit.

                    Table IV-18--MPCs for Self-Priming Pool Filter Pump Representative Units
----------------------------------------------------------------------------------------------------------------
                                                                  Representative unit capacity on system curve C
                                                                 -----------------------------------------------
                        Efficiency level                           0.44 hhp (MPC   0.95 hhp (MPC   1.88 hhp (MPC
                                                                        $)              $)              $)
----------------------------------------------------------------------------------------------------------------
0 (Baseline)....................................................             102             113             192
1...............................................................             115             132             227
2...............................................................             134             148             248
3...............................................................             137             149             276
4...............................................................             147             166             290
5...............................................................             158             184             303
6...............................................................             320             320             417
7 (Max Tech)....................................................             320             320             417
----------------------------------------------------------------------------------------------------------------


 Table IV-19--MPCs for Non-Self-Priming Pool Filter Pump Representative
                                  Units
------------------------------------------------------------------------
                                           Representative unit capacity
                                                 on system curve C
            Efficiency level             -------------------------------
                                           0.09 hhp (MPC   0.52 hhp (MPC
                                                $)              $)
------------------------------------------------------------------------
0 (Baseline)............................              47              69
1.......................................              53              74
2.......................................              59              87
3.......................................           * n/a              91
4.......................................           * n/a             105
5.......................................           * n/a             119
6.......................................           * n/a             297
7 (Max Tech)............................           * n/a             297
------------------------------------------------------------------------
* DOE did not analyze any efficiency levels above EL2 for the 0.09-hhp
  non-self-priming pool filter pump representative unit, as discussed in
  section IV.C.4.d.


Table IV-20--MPCs for Pressure Cleaner Booster Pump Representative Units
------------------------------------------------------------------------
                                                 Representative unit
                                                       capacity
              Efficiency level              ----------------------------
                                              0.28 hhp at 10 gpm of flow
                                                       (MPC $)
------------------------------------------------------------------------
0 (Baseline)...............................                           88
1..........................................                           99
2..........................................                          118
3..........................................                          308
4 (Max Tech)...............................                          308
------------------------------------------------------------------------


        Table IV-21--MPCs for Waterfall Pump Representative Units
------------------------------------------------------------------------
                                                 Representative unit
                                                       capacity
              Efficiency level              ----------------------------
                                             0.40 hhp at 17 feet of head
                                                       (MPC $)
------------------------------------------------------------------------
0 (Baseline)...............................                          100
1..........................................                          110
2..........................................                          130
3 (Max Tech)...............................                          130
------------------------------------------------------------------------


[[Page 5695]]


                         Table IV-22--MPCs for Integral Filter Pump Representative Units
----------------------------------------------------------------------------------------------------------------
                                                                  Representative unit capacity on system curve C
                                                                 -----------------------------------------------
                                                                   Integral sand  Integral cartridge filter pool
                                                                    filter pool                pump
                        Efficiency level                               pump      -------------------------------
                                                                 ----------------
                                                                   0.03 hhp (MPC   0.02 hh (MPC    0.18 hhp (MPC
                                                                        $)              $)              $)
----------------------------------------------------------------------------------------------------------------
0 (Baseline)....................................................              57              17              92
1 (With Timer)..................................................              64              23              99
----------------------------------------------------------------------------------------------------------------

f. MPC Cost Components
    The MIA requires MPCs to be disaggregated the MPCs into material, 
labor, depreciation, and overhead costs. DOE estimated MPC breakdowns 
using the manufacturing cost model tool described in section IV.C.5.c, 
and the estimated MPC breakdowns during interviews with manufacturers. 
The MPC cost components are reported in the manufacturer impact 
analysis described in chapter 9 of the direct final rule TSD.
6. Other Analytical Outputs
    As discussed previously in section III.C, the DOE test procedure 
specifies test points for the pool filter pump, waterfall pump, and 
pressure cleaner booster pump equipment classes covered by this direct 
final rule. For instance, the test points for self-priming and non-
self-priming pool filter pumps are at specified pump speeds on system 
curve C, and the test point for pressure cleaner booster pumps is at 10 
gpm of flow. In the field, the conditions in which these pumps operate 
will not exactly match the test points. For instance, some pumps may 
service pools with plumbing that approximates system curve A instead of 
curve C, and some variable-speed pumps will be programmed to operate at 
speeds that are higher or lower than the test point speeds specified in 
the DOE test procedure. These variations in installation conditions are 
modeled in the energy use analysis, which is discussed in section IV.D. 
To facilitate the energy use analysis, DOE estimated the power 
consumption of representative units across a variety of potential 
installation conditions.
    For self-priming and non-self-priming pool filter pumps, DOE 
estimated the flow and energy factor of representative units operating 
on system curves A, B, and C. DOE developed these estimates using 
actual pump performance data on curves A, B, and C from the Pool Pump 
Performance Database, combined with the motor substitution methodology 
described in section IV.C.4.c. For efficiency levels with single-speed 
motor configurations, DOE estimated flow and EF at 100-percent speed. 
For efficiency levels with two-speed motor configurations, DOE 
estimated flow and EF at 100 percent speed and at 50 percent speed. For 
efficiency levels with variable-speed motor configurations, DOE 
estimated flow and EF at 80 percent speed and at a low-speed test point 
of either 24.7 gpm or 31.1 gpm, depending on the pump capacity. For 
these variable-speed units, DOE also developed equations to estimate EF 
as a function of flow for variable-speed representative units operating 
at reduced speeds near the low-speed test point. DOE developed these 
equations using the pump affinity laws and the regressions of pump 
total efficiency versus pump speed described in section IV.C.4.c. 
Chapter 5 of the direct final rule TSD provides further details on 
these analytical outputs.
    DOE also developed equations to estimate the power consumption as a 
function of flow for waterfall pumps and pressure cleaner booster pumps 
operating near the respective test points for those equipment classes. 
DOE developed these equations by aggregating pump test data that was 
submitted to DOE by manufacturers. The resulting equations estimate 
head and power consumption as a function of flow for waterfall pumps 
and pressure cleaner booster pumps at all efficiency levels. The 
distribution of field installations and their operating parameters are 
discussed further in the energy use analysis in section IV.E. Chapter 5 
of the direct final rule TSD presents more details regarding these 
analytical outputs.
7. Manufacturer Selling Price
    To account for manufacturers' non-production costs and profit 
margin, DOE applied a non-production cost multiplier (the manufacturer 
markup) to the MPC. The resulting manufacturer selling price (MSP) is 
the price at which the manufacturer distributes a unit into commerce.
    DOE developed an average manufacturer markup by examining the 
annual Securities and Exchange Commission (SEC) 10-K reports filed by 
publicly traded manufacturers primarily engaged in pool pump 
manufacturing and whose combined product range includes pool pumps. DOE 
adjusted these estimates based on feedback received during confidential 
manufacturer interviews. DOE estimated a manufacturer markup of 1.46 
for self-priming and waterfall pool pumps, 1.35 for non-self-priming 
and pressure cleaner booster pool pumps, and 1.27 for integral 
cartridge filter and integral sand filter pool pumps.

D. Markups Analysis

    The markups analysis develops appropriate markups in the 
distribution chain and sales taxes to convert the MSP estimates derived 
in the engineering analysis to consumer prices, which are then used in 
the LCC and PBP analyses. At each step in the distribution channel, 
companies mark up the price of the equipment to cover business costs 
and profit margin.
1. Dedicated-Purpose Pool Pump Markups
    For this dedicated-purpose pool pump direct final rule, DOE 
identified two markets in which dedicated-purpose pool pumps pass from 
the manufacturer to residential and commercial consumers: (1) 
Replacement of a pool pump for an existing swimming pool; (2) 
installation of a pool pump in a new swimming pool.
    Based on manufacturer interviews, the distribution channels for 
dedicated-purpose pool pumps were characterized as noted in Table IV-
23.

[[Page 5696]]



  Table IV-23--Fraction of Dedicated-Purpose Pool Pump Distribution by
                                 Channel
------------------------------------------------------------------------
                                                          Fraction of
                Distribution channel                   dedicated-purpose
                                                        pool pumps (%)
------------------------------------------------------------------------
                    Replacement for an Existing Pool
------------------------------------------------------------------------
Manufacturer [rarr] Wholesaler [rarr] Pool Service                    75
 Contractor [rarr] Consumer.........................
Manufacturer [rarr] Pool Product Retailer [rarr]                      20
 Consumer...........................................
------------------------------------------------------------------------
                     New Installation for a New Pool
------------------------------------------------------------------------
Manufacturer [rarr] Pool Builder [rarr] Consumer....                   5
------------------------------------------------------------------------

    For all market participants except for manufacturers, DOE developed 
baseline and incremental markups. Baseline markups are applied to the 
price of equipment with baseline efficiency, while incremental markups 
are applied to the difference in price between baseline and higher 
efficiency models (the incremental cost increase). The incremental 
markup is typically less than the baseline markup, and is designed to 
maintain similar per-unit operating profit before and after new or 
amended standards.\72\
---------------------------------------------------------------------------

    \72\ Because the projected price of standards-compliant 
equipment is typically higher than the price of baseline equipment, 
using the same markup for the incremental cost and the baseline cost 
would tend to result in higher per-unit operating profit. While such 
an outcome is possible, DOE maintains that in markets that are 
reasonably competitive it is unlikely that standards would lead to a 
sustainable increase in profitability in the long run.
---------------------------------------------------------------------------

    To estimate baseline and incremental markups, DOE relied on several 
sources, including: (1) For pool wholesalers, SEC form 10-K from Pool 
Corp; \73\ (2) for pool product retailers, SEC form 10-K from several 
major home improvement centers \74\ and U.S. Census Bureau 2012 Annual 
Retail Trade Report,\75\ and (3) for pool contractors and pool 
builders, U.S. Census Bureau 2012 Economic Census data \76\ on the 
building construction industry.
---------------------------------------------------------------------------

    \73\ U.S. Securities and Exchange Commission. SEC 10-K Reports 
for Pool Corp (2010-2015). Available at www.sec.gov/ (Last accessed 
May 26, 2016.).
    \74\ U.S. Securities and Exchange Commission. SEC 10-K Reports 
for Home Depot, Lowe's, Wal-Mart and Costco. Available at 
www.sec.gov/ (Last accessed May 26, 2016.).
    \75\ U.S. Census Bureau, 2012 Annual Retail Trade Report, 
available at www.census.gov/retail/index.html (last accessed Dec. 3, 
2015).
    \76\ U.S. Census Bureau, 2012 Economic Census Data, available at 
www.census.gov/econ/ (last accessed Dec. 3, 2015).
---------------------------------------------------------------------------

2. Replacement Motor Markups
    As discussed in section IV.F, in some cases, only the motor 
component in the pool pump is replaced instead of the entire pool pump. 
DOE treated motor replacement as a repair of the pump. In this case, 
the replacement motor typically goes through different distribution 
channels than pool pumps. Based on inputs from motor manufacturers 
inputs, DOE considered three distribution channels to characterize how 
motors are distributed in the motor replacement market. Table IV-24 
shows these distribution channels.

 Table IV-24--Fraction of Dedicated-Purpose Pool Pump Replacement Motor
                         Distribution by Channel
------------------------------------------------------------------------
                                                       Fraction of pool
                Distribution channel                       pumps (%)
------------------------------------------------------------------------
                         Via Motor Manufacturer
------------------------------------------------------------------------
(1) Motor Manufacturer [rarr] Wholesaler [rarr]                       25
 Contractor [rarr] Consumer.........................
(2) Motor Manufacturer [rarr] Wholesaler [rarr]                       25
 Retailer [rarr] Consumer via Internet or direct
 sale at local stores...............................
------------------------------------------------------------------------
                       Via Pool Pump Manufacturer
------------------------------------------------------------------------
(3) Pump Manufacturer [rarr]Pump Product Retailer                     50
 [rarr] Consumer....................................
------------------------------------------------------------------------

    Due to limited available information, DOE assumed that the motor 
wholesaler markup in the second motor replacement channel via Internet 
and direct local store sales is the same as in the first motor 
replacement channel via contractor. To estimate baseline and 
incremental markups for each of the market participants (except for 
manufacturers) mentioned in Table IV-24, DOE relied on several sources, 
including: (1) For motor wholesalers, U.S. Census Bureau 2012 Annual 
Wholesale Trade Report; \77\ (2) for electrical contractors, RSMeans 
electrical cost data; \78\ and (3) for motor retailers, U.S. Census 
Bureau 2012 Annual Retail Trade Report.\79\
---------------------------------------------------------------------------

    \77\ U.S. Census Bureau, 2012 Annual Wholesale Trade Report, 
available at www.census.gov/wholesale/index.html (last accessed Dec. 
3, 2015).
    \78\ RSMeans. Electrical Cost Data 2015. 2014. RSMeans: Norwell, 
MA.
    \79\ U.S. Census Bureau, 2012 Annual Retail Trade Report, 
available at www.census.gov/retail/index.html (last accessed April 
28, 2016).
---------------------------------------------------------------------------

    In addition to the markups, DOE obtained state and local taxes from 
data provided by the Sales Tax Clearinghouse.\80\ These data represent 
weighted average taxes that include county and city rates. DOE derived 
shipment-weighted average tax values for each region considered in the 
analysis.
---------------------------------------------------------------------------

    \80\ Sales Tax Clearinghouse Inc., State Sales Tax Rates Along 
with Combined Average City and County Rates (2016), available at 
http://thestc.com/STrates.stm (last accessed April 18, 2016).
---------------------------------------------------------------------------

    Chapter 6 of the direct final rule TSD provides details on DOE's 
development of markups for pool pumps.

[[Page 5697]]

E. Energy Use Analysis

    The purpose of the energy use analysis is to determine the annual 
energy consumption of pool pumps at different efficiencies in 
representative U.S. applications, and to assess the energy savings 
potential of increased dedicated-purpose pool pump efficiency. The 
energy use analysis estimates the range of energy use of dedicated-
purpose pool pumps in the field (i.e., as they are actually used by 
consumers). The energy use analysis provides the basis for other 
analyses DOE performed, particularly assessments of the energy savings 
and the savings in consumer operating costs that could result from 
adoption of standards.
1. Dedicated-Purpose Pool Pump Consumer Samples
    DOE created individual consumer samples for five dedicated-purpose 
pool pump markets: (1) Single-family homes with a swimming pool; (2) 
indoor swimming pools in commercial applications; (3) single-family 
community swimming pools; (4) multi-family community swimming pools; 
and (5) outdoor swimming pools in commercial applications. DOE used the 
samples to determine dedicated-purpose pool pump annual energy 
consumption as well as for conducting the LCC and PBP analyses.
    DOE used the Energy Information Administration's (EIA) 2009 
Residential Energy Consumption Survey (RECS 2009) to establish a sample 
of single-family homes that have a swimming pool.\81\ For dedicated-
purpose pool pumps used in indoor swimming pools in commercial 
applications, DOE developed a sample using the 2012 Commercial Building 
Energy Consumption Survey (CBECS 2012).\82\ RECS and CBECS include 
information such as the household or building owner demographics and 
the location of the household or building.
---------------------------------------------------------------------------

    \81\ U.S. Department of Energy--Energy Information 
Administration. 2009 RECS Survey Data. (Last accessed July 27, 
2016.) www.eia.gov/consumption/residential/data/2009/.
    \82\ U.S. Department of Energy--Energy Information 
Administration. 2012 CBECS Survey Data. (Last accessed: July 27, 
2016.) www.eia.gov/consumption/commercial/data/2012/index.cfm?view=microdata.
---------------------------------------------------------------------------

    Neither RECS nor CBECS provide data on community pools or outdoor 
swimming pools in commercial applications, so DOE created samples based 
on other available data. To develop samples for dedicated-purpose pool 
pumps in single or multi-family communities, DOE used a combination of 
RECS 2009, U.S. Census 2009 American Home Survey Data (2009 AHS),\83\ 
and 2015 PK Data report.\84\ To develop a sample for pool pumps in 
outdoor commercial swimming pools, DOE used a combination of CBECS 2012 
and 2015 PK Data report.
---------------------------------------------------------------------------

    \83\ U.S. Census Bureau. 2009 AHS survey data (Last accessed: 
July 27, 2016.) www.census.gov/programs-surveys/ahs/data/2009/ahs-2009-public-use-file-puf-/2009-ahs-national-puf-microdata.html.
    \84\ PK Data. 2015 Swimming Pool and Pool Heater Customized 
Report for LBNL. (Last accessed: April 30, 2016.) www.pkdata.com/current-reports.html.
---------------------------------------------------------------------------

    Table IV-25 shows the estimated shares of the five dedicated-
purpose pool pump markets in the existing stock based on the afore-
mentioned sources. The vast majority of dedicated-purpose pool pumps 
are used for residential single-family swimming pools.

  Table IV-25--Fraction of Dedicated-Purpose Pool Pumps by DPPP Market
------------------------------------------------------------------------
                                                            Fraction of
          Pool type ID                 Description        pool pumps (%)
------------------------------------------------------------------------
1..............................  Residential Single                 95.1
                                  Family Swimming Pools.
2..............................  Community Pools (Single             0.8
                                  Family).
3..............................  Community Pools (Multi              0.4
                                  Family).
4..............................  Commercial Indoor Pools             0.3
5..............................  Commercial Outdoor                  3.4
                                  Swimming Pools.
------------------------------------------------------------------------

    Dedicated-purpose pool pumps can be installed with either above-
ground or in-ground swimming pools. DOE established separate sets of 
consumer samples for in-ground pools and above-ground pools by 
adjusting the original sample weights based on the number of installed 
in-ground and above-ground pools in 2014 per state provided by APSP. 
(EERE-2015-BT-STD-0008-0010, No. 31 at pp. 14-15) The consumer samples 
for self-priming, auxiliary (waterfall) and pressure cleaner booster 
pumps are drawn from the in-ground pool samples; the consumer samples 
for non-self-priming and integral pumps are obtained from the above-
ground pool samples.
    See chapter 7 of the direct final rule TSD for more details about 
the creation of the consumer samples and the regional breakdowns.
2. Energy Use Estimation
    DOE calculated the annual unit energy consumption (UEC) of pool 
pumps at the considered efficiency levels by multiplying the average 
daily UEC by the annual days of operation. For single-speed pool pumps, 
the daily UEC is simply the pool pump power multiplied by the daily 
operating hours. For two-speed and variable-speed pool pumps, the daily 
UEC is the sum of low-speed mode power multiplied by the low-speed 
daily operating hours and the high-speed mode power multiplied by the 
corresponding daily operating hours.
a. Power Inputs
Self-Priming and Non-Self-Priming Pumps
    For self-priming and non-self-priming pool pumps, the power inputs 
are obtained by using flow (Q, in gallon/minute) divided by energy 
factor (in gallon/Wh). In the case of single-speed pumps, Q and EF are 
provided in the engineering analysis for each representative unit at 
each system curve (A, B or C).\85\ In the case of two-speed pumps, Q 
and EF are provided for both low-speed and high-speed modes for each 
representative unit at each system curve. For variable-speed pumps, Q 
and EF are provided only for the high-speed mode, which, according to 
the DOE test procedure, corresponds to 80 percent of maximum speed; for 
the low-speed mode, Q is specific to each consumer

[[Page 5698]]

and EF is provided as a function of Q. For each consumer in the sample, 
DOE specified the system curve used (A, B or C) by drawing from a 
probability distribution suggested by the DPPP Working Group. The 
suggested distribution was based on field testing and experience 
indicating that many pools are closer to curve C, but additional 
amenities such as a sand filter or a heater would bring a pump's 
performance to curve A. (EERE-2015-BT-STD-0008-0094, pp. 144-147) In 
the recommended distribution, 35 percent of the pool pumps follow curve 
A, 10 percent of the pool pumps follow curve B, and the remaining 55 
percent follow curve C.
---------------------------------------------------------------------------

    \85\ The requirements of a pool (or any water system), can be 
expressed in terms of a system curve. When a pump is tested on a 
system curve (such as curve C), any one of the measurements 
hydraulic power, P (hp), volumetric flow, Q (gpm) and total dynamic 
head, H (feet of water) can be used to calculate the other two 
measurements. See section IV.A.1 for further details.
---------------------------------------------------------------------------

    For variable-speed pumps, to define the consumer-specific low-speed 
flow, DOE used the pool size divided by the desired time per turnover, 
which was assumed by the DPPP Working Group to be 12 hours for 
residential applications, and 6 or 10 hours for commercial applications 
(EERE-2015-BT-STD-0008-0094 pp. 143-144). DOE developed a distribution 
for pool size based on information given in several 
references.86 87 88 The minimum of the pool size 
distribution for standard-size self-priming pool pumps and integral 
pool pumps was then decreased by the DPPP Working Group based on the 
existing small pools on the market, and the mode of the pool size 
distribution for standard-size non-self-priming pool pumps was 
increased based on the DPPP Working Group's decision. (EERE-2015-BT-
STD-0008-0094 pp. 163-171) The pool size distributions for integral 
pumps were later adjusted by the DPPP Working Group based on the 
suggested pool sizes for the integral pumps on the market. (EERE-2015-
BT-STD-0008-0078 pp. 75-77) A minimum threshold of flow Q is considered 
according to the capacity of the pumps. The variable-speed EF can 
therefore be calculated, as it was provided in the engineering analysis 
as a function of Q for each representative unit on each system curve.
---------------------------------------------------------------------------

    \86\ CEE Residential Swimming Pool Initiative. (Last Accessed: 
July 28, 2016) http://library.cee1.org/sites/default/files/library/9986/cee_res_swimmingpoolinitiative_07dec2012_pdf_10557.pdf.
    \87\ California Energy Commission Pool Heater CASE. (Last 
Accessed: July 28, 2016) www.energy.ca.gov/appliances/2013rulemaking/documents/proposals/12-AAER-2F_Residential_Pool_Pumps_and_Replacement_Motors/California_IOUs_Response_to_the_Invitation_for_Standards_Proposals_for_Pool_Heaters_2013-07-29_TN-71754.pdf.
    \88\ Evaluation of potential best management practices--Pools, 
Spas, and Fountains 2010. (Last Accessed: July 28, 2016) http://cuwcc.org/LinkClick.aspx?fileticket=3p3DgiY6ObY%3D.
---------------------------------------------------------------------------

Pressure Cleaner Booster Pumps and Waterfall Pumps
    The test procedure final rule established a test point at 10 gpm of 
flow for pressure cleaner booster pumps and a test point at 17 feet of 
head for waterfall pumps. DOE developed a distribution for each of 
these equipment classes, in coordination with the DPPP Working Group, 
from which a flow or head value, respectively is drawn for each sampled 
consumer. (Pressure cleaner booster pumps: EERE-2015-BT-STD-0008-0092 
pp. 310; waterfall pumps: EERE-2015-BT-STD-0008-0094 pp. 149-150) For 
waterfall pumps, DOE used the pump curve H = f(Q) provided in the 
engineering analysis for each representative unit to determine the flow 
Q associated with the selected head, from which the corresponding power 
can be calculated based on the power curve P = f(Q), also provided by 
the engineering analysis. For single-speed pressure cleaner booster 
pumps, DOE calculated the power directly from the power curve P = f(Q) 
from the engineering analysis. For variable-speed pressure cleaner 
booster pumps, DOE estimated power consumption at reduced speed for 
consumers with sampled Q above 10 gpm.
Integral Pumps
    For integral pumps, the power value was provided for each 
representative unit. DOE did not apply a distribution to this value 
given that integral pumps are designed to be used for specific pools, 
and therefore the power is not expected to vary widely.
b. Operating Hours
    The following sub-sections describe DOE's methodology for 
calculating daily operating hours for each pump variety. For self-
priming and non-self-priming pool filter pumps in residential 
applications, operating hours are calculated uniquely for each consumer 
based on pool size, number of turnovers per day (itself based on 
ambient conditions), and the pump flow rate. In commercial 
applications, DOE assumes these pumps operate 24 hours per day. For 
integral pumps, those without a timer operate 12 hours a day, while 
those with a timer have operating hours determined the same way as for 
pool filter pumps. For pressure cleaner booster pumps and waterfall 
pumps, operating hours are drawn from a distribution. Table IV-26 
summarizes the results of these calculations.

   Table IV-26--Weighted Average Daily Operating Hours by Pump Variety
------------------------------------------------------------------------
                                              Weighted average daily
                                                 operating hours *
              Pump variety               -------------------------------
                                            Residential     Commercial
------------------------------------------------------------------------
Standard-Size Self-Priming Pool Filter                10              24
 Pump...................................
Small-Size Self-Priming Pool Filter Pump             7.7  ..............
Standard-Size Non-Self-Priming Pool                  6.2  ..............
 Filter Pump............................
Extra-Small Non-Self-Priming Pool Filter             3.3  ..............
 Pump...................................
Waterfall Pump..........................             2.0            12.0
Pressure Cleaner Booster Pump...........             2.5             2.5
Integral Cartridge Filter Pool Pump.....             5.0  ..............
Integral Sand Filter Pool Pump..........             4.8  ..............
------------------------------------------------------------------------
* Only during the pool operating season.

Self-Priming and Non-Self-Priming Pool Filter Pumps
    For self-priming and non-self-priming pool filter pumps in 
residential applications, the single-speed pump daily run time is the 
product of the assigned pool size and the number of turnovers per day 
divided by pump flow rate. For two-speed and variable-speed pumps, DOE 
calculated run time at both high speed and low speed. For high speed, 
DOE assumed a maximum of 2 hours a day based on the ENERGY

[[Page 5699]]

STAR calculator.\89\ For low speed, DOE calculated the runtime in the 
same manner as for single-speed pumps and then subtracted two hours 
(for assumed high-speed operation).\90\ In the two-speed analysis, DOE 
followed the recommendation of the DPPP Working Group based on the 
observations that some of the timer controls for two-speed pumps are 
not wired correctly, or some of the consumers never operate at low-
speed. (EERE-2015-BT-STD-0008-0079 pp. 199-203) DOE assumed that 5 
percent of the consumers either would not purchase or would not 
correctly operate the timer control to switch from high-speed mode (the 
default mode) to low-speed mode. For these consumers, high-speed 
runtime was calculated in the same manner as for single-speed pumps, 
and low-speed runtime was assumed to be zero.
---------------------------------------------------------------------------

    \89\ ENERGY STAR Pool Pump Calculator. (Last Accessed: July, 
2016) www.energystar.gov/sites/default/files/asset/document/Pool%20Pump%20Calculator.xlsx.
    \90\ In cases where the calculation (product of pool volume 
times turns per day, divided by flow) results in less than 2 hours, 
the high speed run time is reduced to that value, and low speed run 
time is assumed to be zero.
---------------------------------------------------------------------------

    For each equipment class, DOE developed distributions for the 
number of turnovers per day (i.e., the number of times a pool's 
contents can be filtered through its filtration equipment in a 24-hour 
period). The number of turnovers per day is drawn from a probability 
distribution linked to the ambient condition of the sampled consumer 
(hot humid, warm or cold) and sanitary requirements, especially for the 
commercial pool samples. This distribution was adjusted and approved by 
the DPPP Working Group based on the observation that some consumers do 
not follow the Centers for Disease Control and Prevention (CDC) 
recommendation \91\ and operate fewer turnovers than recommended. 
(EERE-2015-BT-STD-0008-0094 pp. 175-186)
---------------------------------------------------------------------------

    \91\ CDC suggests 4 turnovers per day for public aquatic 
facilities. (Last accessed: September 21, 2016) http://www.cdc.gov/healthywater/pdf/swimming/pools/mahc/Complete-First-Edition-MAHC-Code.pdf.
---------------------------------------------------------------------------

    For commercial applications, DOE assumed that single-speed pumps 
operate 24 hours a day. (EERE-2015-BT-STD-0008-0094 p. 151) For the 
two-speed and variable-speed pumps, based on the ENERGY STAR 
calculator, the high speed was assumed to operate 2 hours per day, 
while the low speed was assumed to operate the remaining 22 hours per 
day. (EERE-2015-BT-STD-0008-0094 pp. 172-185)
Pressure Cleaner Booster Pumps and Waterfall Pumps
    For pressure cleaner booster pumps and waterfall pumps, DOE drew 
the operating hours from operating hours distributions suggested and 
approved by the DPPP Working Group. (EERE-2015-BT-STD-0008-0094 pp. 
159-162)
Integral Pumps
    For integral pumps, the DPPP Working Group suggested that 80 
percent of the consumers use these pumps without a timer. (EERE-2015-
BT-STD-0008-0094 p. 157) DOE assumed that integral pumps without a 
timer operate 12 hours per day, based on the recommendation of the DPPP 
Working Group (EERE-2015-BT-STD-0008-0094 pp. 155-157). For those that 
have a timer, DOE calculated the operating hours the same way as for 
residential single-speed self-priming pool filter pumps.
c. Annual Days of Operation
    DOE calculated the annual unit energy consumption (UEC) by 
multiplying the daily operating hours by the annual days of operation, 
which depends on the number of months of pool operation. For each 
consumer sample, DOE assigned different annual days of operation 
depending on the region in which the dedicated-purpose pool pump is 
installed. Table IV-27 provides the assumptions of pool pump operating 
season based on geographical locations. This assignment was based on 
DOE's Energy Saver Web site assumptions \92\ and PK Data \93\ that 
include average pool season length (i.e., operating months) by state, 
along with discussion of the geographic distribution of pool operating 
days by the DPPP Working Group, which suggested that although some of 
the regions had warm weather, the pool pumps should still be operating 
all year long. (EERE-2015-BT-STD-0008-0094 pp. 191-193)
---------------------------------------------------------------------------

    \92\ DOE Energy Saver. (Last Accessed: April 26, 2016) http://energy.gov/energysaver/articles/heat-pump-swimming-pool-heaters.
    \93\ PK Data. 2015 Swimming Pool and Pool Heater Customized 
Report for LBNL. (Last accessed: April 16, 2016) www.pkdata.com/current-reports.html.

   Table IV-27--Pool Pump Operating Season Assumption by Geographical
                                Location
------------------------------------------------------------------------
                                          Average months     Pool use
  Location (States or census divisions)     of pool use       months
------------------------------------------------------------------------
CT,ME,NH,RI,VT..........................               4        5/1-8/31
MA......................................               4        5/1-8/31
NY......................................               4        5/1-8/31
NJ......................................               4        5/1-8/31
PA......................................               4        5/1-8/31
IL......................................               4        5/1-8/31
IN,OH...................................               4        5/1-8/31
MI......................................               4        5/1-8/31
WI......................................               4        6/1-9/30
IA,MN,ND,SD.............................               4        6/1-9/30
KS,NE...................................               4        6/1-9/30
MO......................................               4        6/1-9/30
VA......................................               7       4/1-10/31
DE,DC,MD................................               5        5/1-9/30
GA......................................               7       4/1-10/31
NC,SC...................................               7       4/1-10/31
FL......................................              12       1/1-12/31
AL,KY,MS................................              12       1/1-12/31
TN......................................              12       1/1-12/31
AR,LA,OK................................              12       1/1-12/31
TX......................................              12       1/1-12/31
CO......................................               4        5/1-8/31
ID,MT,UT,WY.............................               4        5/1-8/31

[[Page 5700]]

 
AZ......................................              12       1/1-12/31
NV,NM...................................              12       1/1-12/31
CA......................................              12       1/1-12/31
OR,WA...................................               3        6/1-8/31
AK......................................               5        5/1-9/30
HI......................................              12       1/1-12/31
WV......................................               5        5/1-9/30
New England.............................               4        5/1-8/31
Middle Atlantic.........................               5        5/1-9/30
East North Central......................               5        5/1-9/30
West North Central......................               4        6/1-9/30
South Atlantic..........................              12       1/1-12/31
East South Central......................              12       1/1-12/31
West South Central......................              12       1/1-12/31
Mountain................................               4        5/1-8/31
Pacific.................................              12       1/1-12/31
------------------------------------------------------------------------

    Chapter 7 of the direct final rule TSD provides details on DOE's 
energy use analysis for pool pumps.

F. Life-Cycle Cost and Payback Period Analyses

    DOE conducted LCC and PBP analyses to evaluate the economic impacts 
on individual consumers of potential energy conservation standards for 
dedicated-purpose pool pumps. The effect of new or amended energy 
conservation standards on individual consumers usually involves a 
reduction in operating cost and an increase in purchase cost. DOE used 
the following two metrics to measure consumer impacts:
     The LCC (life-cycle cost) is the total consumer expense of 
equipment over the life of that equipment, consisting of total 
installed cost (MSP, distribution chain markups, sales tax, and 
installation costs) plus operating costs (expenses for energy use, 
maintenance, and repair). To compute the operating costs, DOE discounts 
future operating costs to the time of purchase and sums them over the 
lifetime of the equipment.
     The PBP is the estimated amount of time it takes consumers 
to recover the increased purchase cost (including installation) of 
more-efficient equipment through lower operating costs. DOE calculates 
the PBP by dividing the change in purchase cost at higher efficiency 
levels by the change in annual operating cost for the year that amended 
or new standards are assumed to take effect.
    For any given efficiency level, DOE measures the change in LCC 
relative to the LCC in the no-standards case, which reflects the 
estimated efficiency distribution of pool pumps in the absence of 
energy conservation standards. In contrast, the PBP for a given 
efficiency level is measured relative to the baseline equipment.
    For each considered efficiency level in each equipment class, DOE 
calculated the LCC and PBP for a nationally representative set of 
consumers. As stated previously, DOE developed consumer samples from 
the 2009 RECS and 2012 CBECS. For each consumer in the sample, DOE 
determined the energy consumption for the pool pump and the appropriate 
energy price. By developing a representative sample of consumers, the 
analysis captured the variability in energy consumption and energy 
prices associated with the use of pool pumps.
    Inputs to the calculation of total installed cost include the cost 
of the equipment--which includes MPCs, manufacturer markups, retailer 
and distributor markups, and sales taxes--and installation costs. 
Inputs to the calculation of operating expenses include annual energy 
consumption, energy prices and price projections, repair and 
maintenance costs, equipment lifetimes, and discount rates. DOE created 
distributions of values for equipment lifetime, discount rates, and 
sales taxes, with probabilities attached to each value, to account for 
their uncertainty and variability.
    The computer model DOE uses to calculate the LCC and PBP, which 
incorporates Crystal Ball\TM\ (a commercially-available software 
program), relies on a Monte Carlo simulation to incorporate uncertainty 
and variability into the analysis. The Monte Carlo simulations randomly 
sample input values from the probability distributions and pool pump 
consumer samples. The model calculated the LCC and PBP for equipment at 
each efficiency level for 10,000 units per simulation run.
    DOE calculated the LCC and PBP for all consumers of pool pumps as 
if each were to purchase a new product in the expected year of required 
compliance with new energy efficiency standards. As discussed in 
section III.B, the standards would apply to pool pumps manufactured 54 
months years after the date on which new standards are published. At 
the time of the analysis for this rule, DOE estimated publication of 
this direct final rule in the second half of 2016. Therefore, for 
purposes of its analysis, DOE used 2021 as the year of compliance with 
any new standards for pool pumps.
    Table IV-28 summarizes the approach and data DOE used to derive 
inputs to the LCC and PBP calculations. The subsections that follow 
provide further discussion. Details of the spreadsheet model, and of 
all the inputs to the LCC and PBP analyses, are contained in chapter 8 
of the direct final rule TSD and its appendices.

                    Table IV-28--Summary of Inputs and Methods for the LCC and PBP Analysis *
----------------------------------------------------------------------------------------------------------------
                            Inputs                                               Source/method
----------------------------------------------------------------------------------------------------------------
Equipment Cost...............................................  Derived by multiplying MPCs by manufacturer and
                                                                retailer markups and sales tax, as appropriate.
                                                                Used historical data to derive a price scaling
                                                                index to project equipment costs.

[[Page 5701]]

 
Installation Costs...........................................  Baseline installation cost determined with data
                                                                from manufacturer interviews.
Annual Energy Use............................................  The daily energy consumption multiplied by the
                                                                number of operating days per year.
                                                               Variability: Based on regional data and 2009 RECS
                                                                and 2012 CBECS.
Energy Prices................................................  Electricity: Based on EIA's Form 861 data for
                                                                2014.
                                                               Variability: Regional energy prices determined
                                                                for 30 regions for pool pumps in individual
                                                                single-family homes and 9 census divisions for
                                                                pool pumps in community and commercial pool
                                                                pumps.
                                                               Marginal prices used for electricity.
Energy Price Trends..........................................  Based on AEO2016 No-CPP case price projections.
Repair and Maintenance Costs.................................  Consider only motor replacement as repair cost,
                                                                which includes labor cost from RS Means and
                                                                motor cost provided with MPC.
Equipment Lifetime...........................................  For residential applications, on average 7 years
                                                                for self-priming and waterfall pumps, 5 years
                                                                for non-self-priming and pressure cleaner
                                                                booster pumps, and 4 years for integral pumps.
                                                                For commercial applications, the residential
                                                                equipment lifetime is adjusted according to the
                                                                ratio of commercial to residential daily
                                                                operating hours.
                                                               Variability: Based on Weibull distribution.
Discount Rates...............................................  Residential: Approach involves identifying all
                                                                possible debt or asset classes that might be
                                                                used to purchase the considered appliances, or
                                                                might be affected indirectly. Primary data
                                                                source was the Federal Reserve Board's Survey of
                                                                Consumer Finances.
                                                               Commercial: Calculated as the weighted average
                                                                cost of capital for entities purchasing pool
                                                                pumps. Primary data source was Damodaran Online.
Compliance Date..............................................  2021.
----------------------------------------------------------------------------------------------------------------
* References for the data sources mentioned in this table are provided in the sections following the table or in
  chapter 8 of the direct final rule TSD.

1. Equipment Cost
    To calculate consumer equipment costs, DOE multiplied the MPCs 
developed in the engineering analysis by the markups described above 
(along with sales taxes). DOE used different markups for baseline 
products and higher efficiency products, because DOE applies an 
incremental markup to the increase in MSP associated with higher 
efficiency products.
    To project an equipment price trend for the direct final rule, DOE 
derived an inflation-adjusted index of the Producer Price Index (PPI) 
for pumps and pumping equipment over the period 1984-2015.\94\ These 
data show a general price index increase from 1987 through 2009. Since 
2009, there has been no clear trend in the price index. Given the 
relatively slow global economic activity in 2009 through 2015, the 
extent to which the future trend can be predicted based on the last two 
decades is uncertain and the observed data do not provide a firm basis 
for projecting future cost trends for pump equipment. Therefore, for 
single-speed and two-speed pumps, DOE used a constant price assumption 
as the default trend to project future pump prices in 2021. For 
variable-speed pool pumps, however, DOE assumed that the controls 
portion of the electrically commutated motor would be affected by price 
learning. DOE used PPI data on ``Semiconductors and related device 
manufacturing'' between 1967 and 2015 to estimate the historic price 
trend of electronic components in the control.\95\ The regression 
performed as an exponential trend line fit results in an R-square of 
0.98, with an annual price decline rate of 6 percent.
---------------------------------------------------------------------------

    \94\ Series ID PCU333911333911; www.bls.gov/ppi/ ppi/.
    \95\ Semiconductors and related device manufacturing PPI series 
ID: PCU334413334413; www.bls.gov/ppi/.
---------------------------------------------------------------------------

2. Installation Cost
    Installation cost includes labor, overhead, and any miscellaneous 
materials and parts needed to install the product. DOE estimates all 
the installation costs associated with fitting a dedicated-purpose pool 
pump in a new housing unit (new owners), or as a replacement for an 
existing pool pump. To simplify the calculation, DOE only accounted for 
the difference of installation cost by efficiency levels. For two-speed 
pumps, DOE included the cost of a timer control and its installation 
where applicable, as recommended by the DPPP Working Group (EERE-2015-
BT-STD-0008-0079 pp. 199-203). DOE used information obtained in the 
manufacturer interviews to calculate the supplemental installation 
labor costs for two-speed and variable-speed pumps.
    See chapter 8 of the direct final rule TSD for more details on 
installation costs.
3. Annual Energy Consumption
    For each sampled installation, DOE determined the energy 
consumption for a dedicated-purpose pool pump at different efficiency 
levels using the approach described in section IV.E of this direct 
final rule.
4. Energy Prices
    DOE used residential electricity prices for dedicated-purpose pool 
pumps in residential applications, and commercial electricity prices 
for dedicated-purpose pool pumps in commercial applications.
    DOE derived average annual residential marginal electricity prices 
for 30 geographic regions and commercial marginal electricity prices 
for 9 census divisions using 2015 data from the EIA.\96\
---------------------------------------------------------------------------

    \96\ U.S. Department of Energy-Energy Information 
Administration, Form EIA-826 Database Monthly Electric Utility Sales 
and Revenue Data (2015) available at www.eia.doe.gov/cneaf/electricity/page/eia826.html.
---------------------------------------------------------------------------

    To estimate electricity prices in future years, DOE multiplied the 
average regional prices by annual energy price factors derived from the 
forecasts of annual average residential and commercial electricity 
price changes by region that are consistent with cases described on p. 
E-8 in AEO 2016.\97\ AEO

[[Page 5702]]

2016 has an end year of 2040. To estimate price trends after 2040, DOE 
used the average annual rate of change in prices from 2030 to 2040.
---------------------------------------------------------------------------

    \97\ EIA. Annual Energy Outlook 2016 with Projections to 2040. 
Washington, DC. Available at www.eia.gov/forecasts/aeo/. The 
standards finalized in this rulemaking will take effect a few years 
prior to the 2022 commencement of the Clean Power Plan compliance 
requirements. As DOE has not modeled the effect of CPP during the 30 
year analysis period of this rulemaking, there is some uncertainty 
as to the magnitude and overall effect of the energy efficiency 
standards. These energy efficiency standards are expected to put 
downward pressure on energy prices relative to the projections in 
the AEO 2016 case that incorporates the CPP. Consequently, DOE used 
the electricity price projections found in the AEO 2016 No-CPP case 
as these electricity price projections are expected to be lower, 
yielding more conservative estimates for consumer savings due to the 
energy efficiency standards.
---------------------------------------------------------------------------

5. Repair and Maintenance Costs
    Repair costs are associated with repairing or replacing equipment 
components that have failed in an appliance; maintenance costs are 
associated with maintaining the operation of the equipment. Typically, 
small incremental increases in equipment efficiency produce no, or only 
minor, changes in repair and maintenance costs compared to baseline 
efficiency equipment. DOE assumed that for maintenance costs, there is 
no change with efficiency level, and therefore DOE did not include 
those costs in the model.
    The primary repair cost for dedicated-purpose pool pumps is motor 
replacement, and cost of a motor does vary by efficiency level. DOE 
estimated that such replacement occurs at the halfway point in a pump's 
lifetime, but only for those dedicated-purpose pool pumps whose 
lifetime exceeds the average lifetime for the relevant equipment class. 
The cost of the motor was determined in the engineering analysis and 
the markups analysis. DOE used 2015 RS Means, a well-known and 
respected construction cost estimation source, to estimate labor costs 
for pump motor replacement.\98\ DOE accounted for the difference in 
labor hours depending on the dedicated-purpose pool pump horsepower, as 
well as regional differences in labor hourly costs.
---------------------------------------------------------------------------

    \98\ RS Means Company, Inc., RS Means Electrical Cost Data 2015 
(2015).
---------------------------------------------------------------------------

    Further detail regarding the repair costs developed for dedicated-
purpose pool pumps can be found in chapter 8 of the direct final rule 
TSD.
6. Equipment Lifetime
    DOE used dedicated-purpose pool pump lifetime estimates from 
manufacturer input and the DPPP Working Group's discussion (EERE-2015-
BT-STD-0008-0094 pp. 209-223). The data allowed DOE to develop a 
survival function, which provides a distribution of lifetime ranging 
from a minimum of 2 or 3 years based on warranty covered period, to a 
maximum of 15 years, with a mean value of 7 years for self-priming and 
waterfall pumps, 5 years for non-self-priming and pressure cleaner 
booster pumps, and 4 years for integral pumps. These values are 
applicable to pumps in residential applications. For commercial 
applications, DOE scaled the lifetime to acknowledge the higher 
operating hours compared to residential applications, resulting in a 
reduced average lifetime.
7. Discount Rates
    In calculating the LCC, DOE applies discount rates appropriate to 
consumers to estimate the present value of future operating costs. The 
discount rate used in the LCC analysis represents the rate from an 
individual consumer's perspective. DOE estimated a distribution of 
residential discount rates for dedicated-purpose pool pumps based on 
the opportunity cost of funds related to appliance energy cost savings 
and maintenance costs.
    To establish residential discount rates for the LCC analysis, DOE 
identified all relevant household debt or asset classes in order to 
approximate a consumer's opportunity cost of funds related to appliance 
energy cost savings. It estimated the average percentage shares of the 
various types of debt and equity by household income group using data 
from the Federal Reserve Board's Survey of Consumer Finances \99\ (SCF) 
for 1995, 1998, 2001, 2004, 2007, 2010 and 2013. Using the SCF and 
other sources, DOE developed a distribution of rates for each type of 
debt and asset by income group to represent the rates that may apply in 
the year in which amended standards would take effect. DOE assigned 
each sample household a specific discount rate drawn from one of the 
distributions. The average rate across all types of household debt and 
equity and income groups, weighted by the shares of each type, is 4.6 
percent.
---------------------------------------------------------------------------

    \99\ Board of Governors of the Federal Reserve System. Survey of 
Consumer Finances. 1995, 1998, 2001, 2004, 2007, 2010, and 2013. 
(Last accessed December 15, 2015.) (www.federalreserve.gov/econresdata/scf/scfindex.htm).
---------------------------------------------------------------------------

    DOE applies weighted average discount rates calculated from 
consumer debt and asset data, rather than marginal or implicit discount 
rates.\100\ The LCC does not analyze the equipment purchase decision, 
so the implicit discount rate is not relevant in this model. The LCC 
estimates net present value over the lifetime of the equipment, so the 
appropriate discount rate will reflect the general opportunity cost of 
household funds, taking this time scale into account. Given the long 
time horizon modeled in the LCC, the application of a marginal interest 
rate associated with an initial source of funds is inaccurate. 
Regardless of the method of purchase, consumers are expected to 
continue to rebalance their debt and asset holdings over the LCC 
analysis period, based on the restrictions consumers face in their debt 
payment requirements and the relative size of the interest rates 
available on debts and assets. DOE estimates the aggregate impact of 
this rebalancing using the historical distribution of debts and assets.
---------------------------------------------------------------------------

    \100\ The implicit discount rate is inferred from a consumer 
purchase decision between two otherwise identical goods with 
different first cost and operating cost. It is the interest rate 
that equates the increment of first cost to the difference in net 
present value of lifetime operating cost, incorporating the 
influence of several factors: Transaction costs; risk premiums and 
response to uncertainty; time preferences; interest rates at which a 
consumer is able to borrow or lend.
---------------------------------------------------------------------------

    To establish commercial discount rates for the small fraction of 
applications where businesses purchase and use dedicated-purpose pool 
pumps, DOE estimated the weighted-average cost of capital using data 
from Damodaran Online.\101\ The weighted-average cost of capital is 
commonly used to estimate the present value of cash flows to be derived 
from a typical company project or investment. Most companies use both 
debt and equity capital to fund investments, so their cost of capital 
is the weighted average of the cost to the firm of equity and debt 
financing. DOE estimated the cost of equity using the capital asset 
pricing model, which assumes that the cost of equity for a particular 
company is proportional to the systematic risk faced by that company.
---------------------------------------------------------------------------

    \101\ Damodaran Online, Data Page: Costs of Capital by Industry 
Sector (2016). (Last accessed April, 2016) http://
pages.stern.nyu.edu/~adamodar/.
---------------------------------------------------------------------------

    See chapter 8 of the direct final rule TSD for further details on 
the development of consumer discount rates.
8. Energy Efficiency Distribution in the No-Standards Case
    To accurately estimate the share of consumers that would be 
affected by a potential energy conservation standard at a particular 
efficiency level, DOE's LCC analysis considered the projected 
distribution (market shares) of equipment efficiencies under the no-
standards case.
    The estimated efficiency market shares for dedicated-purpose pool 
pumps for 2015 were based on manufacturer interviews. To project 
efficiencies to the compliance year, 2021, DOE shifted 1 percent per 
year of the market share in the single-speed efficiency levels to the 
variable-speed efficiency levels. (See section IV.H.1 for more detail.) 
For the equipment classes that don't have variable-speed efficiency 
levels (i.e., waterfall pumps and integral

[[Page 5703]]

pumps), efficiency was held constant at 2015 levels based on the 
Working Group discussion. (EERE-2015-BT-STD-0008-0078 pp. 138-141)
    Table IV-29 shows the efficiency distribution for the self-priming 
pool filter pump equipment class as an example. See chapter 8 of the 
direct final rule TSD for further information on the derivation of the 
efficiency distributions, as well as the distributions for the 
remaining equipment classes.

 Table IV-29--Efficiency Distribution in the No-Standards Case for Self-
                    Priming Pool Filter Pumps in 2021
------------------------------------------------------------------------
                                                             National
     Efficiency level                Description           market share
                                                                (%)
------------------------------------------------------------------------
0 (Baseline)..............  Low efficiency single-speed               39
                             motor; Low hydro efficiency.
1.........................  Medium efficiency single-                 15
                             speed motor; Low hydro
                             efficiency.
2.........................  High efficiency single-speed              10
                             motor; Low hydro efficiency.
3.........................  Low efficiency two-speed                   2
                             motor; Low hydro efficiency.
4.........................  Medium efficiency two-speed                2
                             motor; Low hydro efficiency.
5.........................  High efficiency two-speed                  2
                             motor; Low hydro efficiency.
6.........................  Variable-speed motor; Low                 11
                             hydro efficiency (High
                             speed is 80% of max).
7.........................  Variable-speed motor; High                19
                             hydro efficiency (High
                             speed is 80% of max).
------------------------------------------------------------------------

9. Payback Period Analysis
    The payback period is the amount of time it takes the consumer to 
recover the additional installed cost of more-efficient equipment, 
compared to baseline equipment, through energy cost savings. Payback 
periods are expressed in years. Payback periods that exceed the life of 
the equipment mean that the increased total installed cost is not 
recovered in reduced operating expenses.
    The inputs to the PBP calculation for each efficiency level are the 
change in total installed cost of the equipment and the change in the 
first-year annual operating expenditures relative to the baseline. The 
PBP calculation uses the same inputs as the LCC analysis, except that 
discount rates are not needed.
    As noted above, EPCA, as amended, establishes a rebuttable 
presumption that a standard is economically justified if the Secretary 
finds that the additional cost to the consumer of purchasing a product 
complying with an energy conservation standard level will be less than 
three times the value of the first year's energy savings resulting from 
the standard, as calculated under the applicable test procedure. (42 
U.S.C. 6295(o)(2)(B)(iii)) For each considered efficiency level, DOE 
determined the value of the first year's energy savings by calculating 
the energy savings in accordance with the applicable DOE test 
procedure, and multiplying those savings by the average energy price 
forecast for the year in which compliance with the new standards would 
be required.

G. Shipments Analysis

    DOE uses projections of annual equipment shipments to calculate the 
national impacts of potential or new amended energy conservation 
standards on energy use, emissions, NPV, and future manufacturer cash 
flows. The shipments model takes an accounting approach, tracking 
market shares of each equipment class and the vintage of units in the 
stock. Stock accounting uses equipment shipments as inputs to estimate 
the age distribution of in-service product stocks for all years. The 
age distribution of in-service product stocks is a key input to 
calculations of both the NES and NPV, because operating costs for any 
year depend on the age distribution of the stock.
    For the direct final rule, because there was no readily available 
data on dedicated-purpose pool pump shipments, DOE estimated shipments 
in 2015 using data collected from manufacturer interviews. Shipments 
were projected from 2015 throughout the end of the analysis period 
(2050) initially using growth rates obtained from manufacturer 
interviews, the Veris Consulting report, and several macroeconomic 
indicators. These rates were then reviewed by the DPPP Working Group, 
which recommended minor modifications to the growth rates \102\ (EERE-
2015-BT-STD-0008-0078, pp. 106-120). The modified growth rates were 
also applied in reverse to determine historical shipments. DOE was then 
able to apply retirement functions derived from dedicated-purpose pool 
pump lifetime estimates to each vintage in historical shipments to 
calculate the existing stock. Shipments were divided into two market 
segments: Replacements and new pool construction. The market segment 
associated with dedicated-purpose pool pump replacements was calculated 
such that the stock is maintained, using historical shipments, lifetime 
curves, and repair-replace decision making. The market segment for new 
pool construction pool pump installations is thus the difference 
between total shipments and replacement shipments.
---------------------------------------------------------------------------

    \102\ The initial growth rates for Non-Self-Priming Pool Filter 
Pumps and Integral Cartridge Filter Pumps were -2.77% and -2.0%, 
respectively. These were adjusted due to Working Group 
recommendations to 3.08% (so that Non-Self-Priming Pool Filter Pumps 
matched the rate of Self-Priming Pool Filter Pumps) and 2.0% (so 
that Integral Cartridge Filter Pumps matched the rate of Integral 
Sand Filter Pumps).
---------------------------------------------------------------------------

    Because the standards-case projections take into account the 
increase in purchase price and the decrease in operating costs 
associated with higher efficiency equipment, projected shipments for a 
standards case typically deviate from those for the no- standards case. 
Because purchase price tends to have a larger impact than operating 
cost on equipment purchase decisions, standards-case projections 
typically show a decrease in shipments relative to the no-standards 
case. For dedicated-purpose pool pumps, DOE modeled this impact in two 
ways. In the replacement segment, DOE implemented a repair-replace 
model in which under the standards case where the pool pump is more 
expensive, 60 percent of the time the pump is repaired (i.e., motor 
replacement) rather than replaced, compared to only around 40 percent 
in the base case. (EERE-2015-BT-STD-0008-0100 pp. 173-175) In the new 
construction segment, DOE implemented a relative price elasticity. 
However, DOE determined that where the cost of the pool far exceeds the 
incremental cost of a more-efficient pump (i.e., inground pool 
installations or, where timers are considered, larger inflatable/rigid 
steel-framed installations), shipments would not be affected by an 
increase in purchase price of the dedicated-purpose pool pump. 
Therefore, a relative price elasticity, which accounts for the total

[[Page 5704]]

installed cost of the pool including the pump, is only applied to non-
self-priming pool filter pumps, smaller integral cartridge filter pool 
pumps, and smaller integral sand filter pool pumps, and is based on 
DPPP Working Group recommendations and data obtained from manufacturer 
interviews. The elasticity \103\ implemented was 0.2. (EERE-2015-BT-
STD-0008-0079 pp. 67-72, 138-139) See chapter 9 of the direct final 
rule TSD for more detail on the shipments model.
---------------------------------------------------------------------------

    \103\ Elasticity of -0.2 was only applied to approximately 40% 
of the integral cartridge filter and integral sand filter pump 
shipments, thus yielding an effective elasticity of -0.08 for these 
two categories rather than -0.2. This percentage represents the 
smallest and least expensive segment of this market, where an 
increase in pump price due to standards is significant relevant to 
the pool price.
---------------------------------------------------------------------------

H. National Impact Analysis

    The NIA assesses the national energy savings (NES) and the national 
net present value from a national perspective of total consumer costs 
and savings that would be expected to result from new or amended 
standards at specific efficiency levels.\104\ DOE calculates the NES 
and NPV for the potential standard levels considered based on 
projections of annual equipment shipments, along with the annual energy 
consumption and total installed cost data from the energy use and LCC 
analyses. For the present analysis, DOE projected the energy savings, 
operating cost savings, equipment costs, and NPV of consumer benefits 
over the lifetime of pool pumps sold from 2021 through 2050.
---------------------------------------------------------------------------

    \104\ The NIA accounts for impacts in the 50 States and U.S. 
territories.
---------------------------------------------------------------------------

    DOE evaluated the impacts of new standards by comparing a case 
without such standards with standards-case projections. The no-
standards case characterizes energy use and consumer costs for each 
equipment class in the absence of new energy conservation standards. 
For this projection, DOE considers trends in efficiency and various 
forces that are likely to affect the mix of efficiencies over time. DOE 
compares the no-standards case with projections characterizing the 
market for each equipment class if DOE adopted new standards at 
specific energy efficiency levels (i.e., the TSLs or standards cases) 
for that class. For the standards cases, DOE considers how a given 
standard would likely affect the market shares of equipment with 
efficiencies greater than the standard.
    DOE uses a spreadsheet model to calculate the energy savings and 
the national consumer costs and savings from each TSL. Interested 
parties can review DOE's analyses by changing various input quantities 
within the spreadsheet. The NIA spreadsheet model uses typical values 
(as opposed to probability distributions) as inputs.
    Table IV-30 summarizes the inputs and methods DOE used for the NIA 
analysis for the direct final rule. Discussion of these inputs and 
methods follows the table. See chapter 10 of the direct final rule TSD 
for further details.

   Table IV-30--Summary of Inputs and Methods for the National Impact
                                Analysis
------------------------------------------------------------------------
                Inputs                               Method
------------------------------------------------------------------------
Shipments............................  Annual shipments from shipments
                                        model.
Compliance Date of Standard..........  2021.
Efficiency Trends....................  No-standards case: Future trend
                                        shifts 1% per year from single-
                                        speed efficiency levels to
                                        variable-speed efficiency
                                        levels.
                                       Standards cases: Roll-up in the
                                        compliance year. 1% shift also
                                        used.
Annual Energy Consumption per Unit...  Annual weighted-average values
                                        are a function of energy use at
                                        each efficiency level.
Total Installed Cost per Unit........  Annual weighted-average values
                                        are a function of cost at each
                                        efficiency level.
                                       Incorporates projection of future
                                        equipment prices based on
                                        historical data.
Annual Energy Cost per Unit..........  Annual weighted-average values as
                                        a function of the annual energy
                                        consumption per unit and energy
                                        prices.
Repair and Maintenance Cost per Unit.  Annual values increase with
                                        higher efficiency levels.
Energy Prices........................  AEO2016 no-CPP case price
                                        forecasts (to 2040) and
                                        extrapolation through 2050.
Energy Site-to-Primary and FFC         A time-series conversion factor
 Conversion.                            based on AEO2016.
Discount Rate........................  Three and seven percent.
Present Year.........................  2016.
------------------------------------------------------------------------

1. Equipment Efficiency Trends
    A key component of the NIA is the trend in energy efficiency 
projected for the no-standards case and each of the standards cases. 
Chapter 8 of the direct final rule TSD describes how DOE developed an 
energy efficiency distribution for the no-standards case for each of 
the considered equipment classes for the first year of anticipated 
compliance with an amended or new standard. To project the trend in 
efficiency absent standards for pool pumps over the entire shipments 
projection period, DOE shifted 1 percent per year of the market share 
in the single-speed efficiency levels to the variable-speed efficiency 
levels. For the equipment classes that do not have variable-speed 
efficiency levels, efficiency was held constant at 2015 levels. The 
DPPP Working Group agreed with DOE's assumptions. (EERE-2015-BT-STD-
0008-0078 pp. 138-141).
    For the standards cases, DOE used a ``roll-up'' scenario to 
establish the shipment-weighted efficiency for the first year of 
compliance assumed for standards (2021). In this scenario, the market 
shares of equipment in the no-standards case that do not meet the 
standard under consideration would roll up'' to meet the new standard 
level, and the market share of equipment above the standard would 
remain unchanged. In the standards cases, the efficiency after the 
compliance year increases at a rate similar to that of the no-standards 
case.
2. National Energy Savings
    The national energy savings analysis involves a comparison of 
national energy consumption of the considered equipment between each 
potential standards case (TSL) and the case with no energy conservation 
standards. DOE calculated the national energy consumption by 
multiplying the number of units (stock) of each equipment (by vintage 
or age) by the unit energy consumption (also by vintage). DOE 
calculated annual NES based on the difference in national energy 
consumption for the no-standards case and for each higher efficiency 
standard case. DOE estimated energy consumption and savings based on 
site energy and converted the

[[Page 5705]]

electricity consumption and savings to primary energy (i.e., the energy 
consumed by power plants to generate site electricity) using annual 
conversion factors derived from AEO2016. Cumulative energy savings are 
the sum of the NES for each year over the timeframe of the analysis.
    In 2011, in response to the recommendations of a committee on 
Point-of-Use and Full-Fuel-Cycle Measurement Approaches to Energy 
Efficiency Standards appointed by the National Academy of Sciences, DOE 
announced its intention to use full-fuel-cycle (FFC) measures of energy 
use and greenhouse gas and other emissions in the national impact 
analyses and emissions analyses included in future energy conservation 
standards rulemakings.76 FR 51281 (August 18, 2011). After evaluating 
the approaches discussed in the August 18, 2011 document, DOE published 
a statement of amended policy in which DOE explained its determination 
that EIA's National Energy Modeling System (NEMS) is the most 
appropriate tool for its FFC analysis and its intention to use NEMS for 
that purpose. 77 FR 49701 (August 17, 2012). NEMS is a public domain, 
multi-sector, partial equilibrium model of the U.S. energy sector \105\ 
that EIA uses to prepare its Annual Energy Outlook. The FFC factors 
incorporate losses in production and delivery in the case of natural 
gas (including fugitive emissions) and additional energy used to 
produce and deliver the various fuels used by power plants. The 
approach used for deriving FFC measures of energy use and emissions is 
described in appendix 10B of the direct final rule TSD.
---------------------------------------------------------------------------

    \105\ For more information on NEMS, refer to The National Energy 
Modeling System: An Overview, DOE/EIA-0581 (2009) (Oct. 2009) 
(Available at www.eia.gov/forecasts/aeo/nems/overview/pdf/0581(2009).pdf).
---------------------------------------------------------------------------

3. Net Present Value Analysis
    The inputs for determining the NPV of the total costs and benefits 
experienced by consumers are: (1) Total annual installed cost; (2) 
total annual operating costs (energy costs and repair and maintenance 
costs); and (3) a discount factor to calculate the present value of 
costs and savings. DOE calculates net savings each year as the 
difference between the no-standards case and each standards case in 
terms of total savings in operating costs versus total increases in 
installed costs. DOE calculates operating cost savings over the 
lifetime of each unit shipped during the projection period.
    As previously noted in section IV.F.1, for single-speed and two-
speed pumps, DOE used a constant price assumption as the default price 
trend to project future pump prices for single-speed and two-speed 
pumps. For variable-speed pool pumps, however, DOE followed a 
suggestion from the Working Group and assumed that the controls portion 
of the electrically commutated motor would be affected by price 
learning,\106\ and used an annual price decline rate of 6 percent. To 
evaluate the effect of uncertainty regarding the price trend estimates, 
DOE investigated the impact of different product price forecasts on the 
consumer NPV for the considered TSLs for dedicated-purpose pool pumps. 
In addition to the default price trend, DOE considered two product 
price sensitivity cases: (1) A low price trend based on an exponential 
fit to the integral horsepower motors and generators PPI from 1991 to 
2000 for equipment classes with integral sized motors (self-priming 1 
hp and self-priming 3 hp), and an exponential fit to fractional 
horsepower motors PPI from 1967 to 2015 for equipment classes with 
fractional sized motors (small-size self-priming pool filter pumps, 
standard-size non-self-priming pool filter pumps, extra-small non-self-
priming pool filter pumps, waterfall pumps, pressure cleaner booster 
pumps, integral sand filter pool pumps, and integral cartridge filter 
pool pumps); and (2) a high price trend based on an exponential fit to 
the integral horsepower motors and generators PPI from 1969 to 2015 for 
the equipment classes with integral sized motors, and an exponential 
fit to the fractional horsepower motors PPI from 2001 to 2015 for the 
equipment classes with fractional sized motors.\107\ The derivation of 
these price trends and the results of these sensitivity cases are 
described in appendix 10C of the direct final rule TSD.
---------------------------------------------------------------------------

    \106\ A member of the Working Group suggested adding price 
learning to the controls portion of variable-speed efficiency 
levels, similar to what was done in the Ceiling Fans Rulemaking 
(EERE-2015-BT-STD-0008-0079, pp. 95-96, and also EERE-2015-BT-STD-
0008-0100, pp. 159-161).
    \107\ U.S. Census. Producer Price Index data. Available at 
www.bls.gov/ppi/
---------------------------------------------------------------------------

    The operating cost savings are the sum of the differences in energy 
cost savings, maintenance, and repair costs, which are calculated using 
the estimated energy savings in each year and the projected price of 
the appropriate form of energy. To estimate energy prices in future 
years, DOE multiplied the average regional prices by annual energy 
price factors derived from the forecasts of annual average residential 
and commercial electricity price changes by region that are consistent 
with cases described on p. E-8 in AEO 2016,\108\ which has an end year 
of 2040. To estimate price trends after 2040, DOE used the average 
annual rate of change in prices from 2030 to 2040. As part of the NIA, 
DOE also analyzed scenarios that used lower and higher energy price 
trends. NIA results based on these cases are presented in appendix 10C 
of the DPPP direct final rule TSD.
---------------------------------------------------------------------------

    \108\ The standards finalized in this rulemaking will take 
effect a few years prior to the 2022 commencement of the Clean Power 
Plan compliance requirements. As DOE has not modeled the effect of 
CPP during the 30 year analysis period of this rulemaking, there is 
some uncertainty as to the magnitude and overall effect of the 
energy efficiency standards. These energy efficiency standards are 
expected to put downward pressure on energy prices relative to the 
projections in the AEO 2016 case that incorporates the CPP. 
Consequently, DOE used the electricity price projections found in 
the AEO 2016 No-CPP case as these electricity price projections are 
expected to be lower, yielding more conservative estimates for 
consumer savings due to the energy efficiency standards.
---------------------------------------------------------------------------

    In calculating the NPV, DOE multiplies the net savings in future 
years by a discount factor to determine their present value. For this 
NOPR, DOE estimated the NPV of consumer benefits using both a 3-percent 
and a 7-percent real discount rate. DOE uses these discount rates in 
accordance with guidance provided by the Office of Management and 
Budget (OMB) to Federal agencies on the development of regulatory 
analysis.\109\ The discount rates for the determination of NPV are in 
contrast to the discount rates used in the LCC analysis, which are 
designed to reflect a consumer's perspective. The 7-percent real value 
is an estimate of the average before-tax rate of return to private 
capital in the U.S. economy. The 3-percent real value represents the 
``social rate of time preference,'' which is the rate at which society 
discounts future consumption flows to their present value.
---------------------------------------------------------------------------

    \109\ United States Office of Management and Budget. Circular A-
4: Regulatory Analysis (September 17, 2003), section E. (Available 
at www.whitehouse.gov/omb/memoranda/m03-21.html).
---------------------------------------------------------------------------

I. Consumer Subgroup Analysis

    In analyzing the potential impact of new or amended energy 
conservation standards on consumers, DOE evaluates the impact on 
identifiable subgroups of consumers that may be disproportionately 
affected by a new or amended national standard. The purpose of a 
subgroup analysis is to determine the extent of any such 
disproportional impacts. DOE evaluates impacts on particular subgroups 
of consumers by analyzing the LCC impacts and PBP for those particular 
consumers from alternative standard

[[Page 5706]]

levels. For this direct final rule, DOE analyzed the impacts of the 
considered standard levels on senior-only households.\110\ The analysis 
used a subset of the RECS 2009 sample is comprised of households that 
meet the criteria for the subgroup. DOE used the LCC and PBP 
spreadsheet model to estimate the impacts of the considered efficiency 
levels on the subgroup. Chapter 11 in the direct final rule TSD 
describes the consumer subgroup analysis.
---------------------------------------------------------------------------

    \110\ DOE did not evaluate low-income consumer subgroup impacts 
because the sample size of the subgroup is too small for meaningful 
analysis.
---------------------------------------------------------------------------

J. Manufacturer Impact Analysis

1. Overview
    DOE conducted an MIA for dedicated-purpose pool pumps to estimate 
the financial impact of standards on manufacturers of dedicated-purpose 
pool pumps. The MIA has both quantitative and qualitative aspects. The 
quantitative part of the MIA relies on the GRIM, an industry cash-flow 
model customized for the dedicated-purpose pool pumps covered in this 
rulemaking. The key GRIM inputs are data on the industry cost 
structure, MPCs, shipments, assumptions about manufacturer markups, and 
conversion costs. The key MIA output is INPV. DOE used the GRIM to 
calculate cash flows using standard accounting principles and to 
compare changes in INPV between the no-standards case and various TSLs 
(the standards cases). The difference in INPV between the no-standards 
case and the standards cases represents the financial impact of energy 
conservation standards on dedicated-purpose pool pump manufacturers. 
Different sets of assumptions (scenarios) produce different INPV 
results. The qualitative part of the MIA addresses factors such as 
manufacturing capacity; characteristics of, and impacts on, any 
particular subgroup of manufacturers, including small manufacturers; 
and impacts on competition.
    DOE conducted the MIA for this rulemaking in three phases. In the 
first phase, DOE prepared an industry characterization based on the 
market and technology assessment and publicly available information. In 
the second phase, DOE estimated industry cash flows in the GRIM using 
industry financial parameters derived in the first phase and the 
shipments derived in the shipment analysis. In the third phase, DOE 
conducted interviews with dedicated-purpose pool pumps manufacturers 
that account for the large majority of domestic DPPP sales covered by 
this rulemaking. During these interviews, DOE discussed engineering, 
manufacturing, procurement, and financial topics specific to each 
company, and obtained each manufacturer's view of the dedicated-purpose 
pool pump industry as a whole. The interviews provided information that 
DOE used to evaluate the impacts of amended standards on manufacturers' 
cash flows, manufacturing capacities, and direct domestic manufacturing 
employment levels. See section V.B.2.b of this direct final rule for 
the discussion on the estimated changes in the number of domestic 
employees involved in manufacturing dedicated-purpose pool pumps 
covered by energy conservation standards.
    During the third phase, DOE used the results of the industry 
characterization analysis in the first phase and feedback from 
manufacturer interviews to group manufacturers that exhibit similar 
production and cost structure characteristics. DOE identified one 
manufacturer subgroup for a separate impact analysis: Small businesses. 
DOE determined that dedicated-purpose pool pump manufacturing falls 
under the North American Industry Classification System (NAICS) code 
333911, pump and pumping equipment manufacturing. The U.S. Small 
Business Administration (SBA) defines a small business as having less 
than 750 total employees for manufacturing under this NAICS code. This 
threshold includes all employees in a business' parent company and any 
other subsidiaries. Based on this classification, DOE identified five 
domestic dedicated-purpose pool pump businesses that manufacture 
dedicated-purpose pool pumps in the United States and qualify as small 
businesses per the SBA threshold. DOE analyzed the impact on the small 
business subgroup in the complete MIA in the Regulatory Flexibility 
analysis, required by the Regulatory Flexibility Act, 5 U.S.C. 601, et. 
seq., presented in section VII.B of this final rule.
2. Government Regulatory Impact Model and Key Inputs
    DOE uses the GRIM to quantify the changes in cash flow due to new 
standards that result in a higher or lower industry value. The GRIM 
uses an annual discounted cash-flow analysis that incorporates MPCs, 
manufacturer markups, shipments, and industry financial information as 
inputs. The GRIM models the changes in MPCs, the distribution of 
shipments, manufacturing investments, and manufacturer margins that 
could change as a result from new energy conservation standards. The 
GRIM spreadsheet uses the inputs to arrive at a series of annual cash 
flows, beginning in 2016 (the reference year of the analysis) and 
continuing to 2050 (the terminal year of the analysis). DOE calculated 
INPVs by summing the stream of annual discounted cash flows during this 
period. DOE used a real discount rate of 11.8 percent for all 
dedicated-purpose pool pump equipment classes. This discount rate is 
derived from industry financials and modified based on feedback 
received during manufacturer interviews.
    The GRIM calculates cash flows using standard accounting principles 
and compares changes in INPV between the no-standards case and each 
standards case. The difference in INPV between the no-standards case 
and the standards cases represents the financial impact of new energy 
conservation standards on manufacturers. As discussed previously, DOE 
developed critical GRIM inputs using a number of sources, including 
publicly available data, results of the engineering analysis, results 
of the shipments analysis, and information gathered from industry 
stakeholders during the course of manufacturer interviews and 
subsequent working group meetings. The GRIM results are presented in 
section V.B.2. Additional details about the GRIM, the discount rate, 
and other financial parameters can be found in chapter 12 of the direct 
final rule TSD.
a. Manufacturer Production Costs
    Manufacturing more efficient equipment is typically more expensive 
than manufacturing baseline equipment due to the use of more complex 
components, which are typically more costly than baseline components. 
The changes in the MPCs of covered equipment can affect the revenues, 
gross margins, and cash flow of the industry.
    In the MIA, DOE used the MPCs calculated in the engineering 
analysis, as described in section IV.C.5 and further detailed in 
chapter 5 of the direct final rule TSD. DOE made several revisions to 
the MPCs based on feedback and data that was received during the 
working group meetings. The MIA used these MPCs as inputs to the MIA 
for the direct final rule.
b. Shipments Forecasts
    The GRIM estimates manufacturer revenues based on (1) total unit 
shipment forecasts and the distribution of those shipments by 
efficiency level, (2) MPCs, and (3) manufacturer markups. Changes in 
sales volumes and efficiency mix over time can significantly affect 
manufacturer

[[Page 5707]]

finances. For this analysis, the GRIM uses the annual shipment 
forecasts derived from the shipments analysis from 2016 to 2050. See 
section IV.G of this direct final rule for additional details.
c. Product and Capital Conversion Costs
    Energy conservation standards could cause manufacturers to incur 
conversion costs to bring their production facilities and equipment 
designs into compliance. DOE evaluated the level of conversion-related 
expenditures that would be needed to comply with each considered 
efficiency level in each equipment class. For the MIA, DOE classified 
these conversion costs into two major groups: (1) Product conversion 
costs; and (2) capital conversion costs. Product conversion costs are 
investments in research and development, testing, marketing, and other 
non-capitalized costs necessary to make product designs to comply with 
new energy conservation standards. Capital conversion costs are 
investments in property, plant, and equipment necessary to adapt or 
change existing production facilities such that new compliant product 
designs can be fabricated and assembled.
    In general, DOE assumes all conversion-related investments occur 
between the year of publication of the direct final rule and the year 
by which manufacturers must comply with the new standards. DOE used 
inputs from manufacturer interviews and feedback from the working group 
meetings to evaluate the level of conversion costs manufacturers would 
likely incur to comply with new energy conservation standards. The 
majority of design options analyzed represent the implementation of 
more efficient motors, either single-speed, two-speed, or variable-
speed. For standard-size self-priming, small-size self-priming, 
standard-size non-self-priming, waterfall, and pressure cleaner booster 
pool pumps, the max-tech efficiency level represents a hydraulic wet-
end redesign. For extra-small non-self-priming pool filter pumps max-
tech represents the implementation of a more efficient single-speed 
motor, and for integral cartridge-filter pool pumps and integral sand 
filter pool pumps DOE analyzed the incorporation of a timer as a design 
option.
    Product conversion costs represent the majority of conversion costs 
for efficiency levels that represent a motor redesign and are estimated 
on a per model basis. DOE estimated product conversion costs of 
$140,000, $160,000, and $500,000 per model to implement a single-speed, 
two-speed, or variable-speed motor in a dedicated-purpose pool pump, 
respectively. DOE estimated the incorporation of a variable-speed motor 
to cost an additional $100,000 for standard-size non-self-priming pool 
filter pumps, because there are currently no non-self-priming pool 
filter pumps on the market with variable-speed motors. The additional 
product conversion costs represent housing redesign costs to 
accommodate variable-speed motors.
    In addition to motor redesign costs and testing and certification 
costs, DOE estimated the per-model cost for new tooling and machinery 
that would be needed as a result of new standards. DOE approximated 
capital conversion costs of $100,000 per wet-end when incorporating 
single-speed, two-speed, or variable-speed motors in dedicated-purpose 
pool pumps. These estimates are based on comments from manufacturers 
made during working group meetings that a motor change could alter the 
dimensions of a dedicated-purpose pool pump and require investments in 
packaging machines and other equipment. The working group offered no 
objections to this estimate. (Docket No. EERE-2015-BT-STD-0008-0079, 
April 19 DPPP Working Group Meeting, at p. 105)
    Max-tech represents a hydraulic wet-end redesign for all equipment 
classes except for extra-small non-self-priming pool filter pumps, 
integral cartridge filter pumps, and integral sand filter pumps. DOE 
estimated product conversion costs for a hydraulic redesign at $500,000 
per wet-end, in addition to the previously discussed $500,000 per model 
to incorporate a variable-speed motor. The hydraulic redesign costs 
represent research and development costs associated with optimizing the 
impeller and the volute for efficiency. For capital conversion costs, 
at max-tech, DOE estimated $1.5 million per wet-end for self-priming 
and waterfall pumps, $750,000 per wet-end for non-self-priming pool 
filter pumps, and $375,000 per wet-end for pressure cleaner booster 
pumps. These estimates vary based on the type of tooling and machinery 
that is used to manufacture pumps in different equipment classes.
    Max-tech for extra-small non-self-priming pool filter pumps 
represents the incorporation of a more efficient single-speed motor. 
DOE used the conversion cost estimates previously described to 
implement a single-speed motor.
    After gathering per-model and per-wet-end conversion cost 
estimates, DOE analyzed self-priming pool filter pump equipment 
offerings to estimate the number of dedicated-purpose pool pumps that 
would be redesigned at each efficiency level. DOE used catalogs from 
the three largest dedicated-purpose pool pump manufacturers that have 
approximately 75 percent of all self-priming pool filter pump models in 
the market based on DOE's product database. DOE first listed all self-
priming pool filter pumps of the three manufacturers and estimated 
their efficiency based on descriptions found in catalogs. All analyzed 
manufacturer catalogs list the number of speeds (i.e., single-speed, 
two-speed, multi-speed, or variable-speed) and the catalogs provided an 
estimate of their efficiency (i.e., single-speed standard efficiency 
compared to single-speed energy efficient).
    After DOE estimated the efficiency of each dedicated-purpose pool 
pump, DOE grouped pumps together for each manufacturer based on their 
performance characteristics, including: The pump wet-ends, port size, 
voltage, total horsepower, and pump performance curve (i.e., head vs. 
flow curve). This allowed DOE to make a mapping with pump 
characteristics on one axis and pump efficiency level on the other 
axis. DOE used this mapping to estimate the number of dedicated-purpose 
pool pumps that would be redesigned if a standard were set at each 
efficiency level. DOE assumed that:
     Pumps with the same performance characteristics, but a 
different efficiency, can replace each other.
     There can be no gaps in equipment offerings. At least one 
pump has to meet the efficiency at each performance characteristic.
     A redesigned single- or two-speed pump can only replace 
one other pump.
     A variable-speed pump can replace multiple single and two-
speed pumps with the same wet-end, port size, voltage, and similar 
total horsepower.
    These assumptions were discussed during the working group meetings 
and allowed DOE to estimate the number of self-priming pool filter 
pumps needed to be redesigned at each efficiency level for each 
manufacturer. (Docket No. EERE-2015-BT-STD-0008-0100, May 18 DPPP 
Working Group Meeting, at p. 23-24) To estimate the total number of 
industry redesigns DOE divided the number of redesigns per efficiency 
level by the percent of models that belongs to the three largest 
manufacturers.
    DOE did not have reliable performance data for non-self-priming, 
waterfall, and pressure cleaner booster pumps. Therefore, DOE used the 
shipments distribution to estimate the number of pumps that do not meet 
each efficiency level. In the absence of data, DOE assumed 
manufacturers would redesign 25 percent of non-compliant

[[Page 5708]]

non-self-priming models. DOE presented this number to the working 
group, which included manufacturers of such equipment. However the 
working group offered no suggestions on how to change the number. 
Therefore DOE continued using the assumption that manufacturers would 
redesign 25 percent of non-compliant non-self-priming models. (Docket 
No. EERE-2015-BT-STD-0008-0079, April 19 DPPP Working Group Meeting, at 
p. 64) Further, DOE assumed that all non-compliant pressure cleaner 
booster and waterfall models would be redesigned due to the limited 
number of models in the market.
    The design option analyzed for integral cartridge filter and 
integral sand filter pool pumps represents the incorporation of a 
timer. Based on confidential interviews with manufacturers that 
represent the majority of the market, DOE estimates that the R&D 
required to design a pump with a timer requires a full month of work 
for three engineers, and involves testing and certification costs. DOE 
estimated that the per model product conversion costs associated with 
adding a timer are $50,000 for integral cartridge filter pumps and 
$60,000 for integral sand filter pumps. DOE used specification sheets 
to determine the number of integral cartridge filter pumps and integral 
sand filter pumps that do not have a timer and multiplied this by the 
per model product conversion cost to calculate industry product 
conversion costs.
    In addition, manufacturers that own tooling and machinery may incur 
capital conversion costs to replace molding machines and tooling. DOE 
estimated that the capital conversion costs associated with these 
activities would be $220,000 per manufacturer. DOE multiplied this by 
the number of manufacturers that own tooling and machinery, to 
calculate industry capital conversion costs. DOE presented these 
conversion cost estimates to the DPPP working group.
    In responses, Hayward stated that the product conversion costs [for 
integral pumps] are probably nominally low. (Docket No. EERE-2015-BT-
STD-0008-0079, April 19 DPPP Working Group Meeting, at p. 130) However, 
Hayward is not a manufacturer of integral cartridge filter and integral 
sand filter pool pumps and did not provide specific recommendations to 
alter the estimates. In addition the numbers presented during the 
working group reflect input from manufacturers that represent the 
majority of the market. Therefore, DOE used the product conversion 
costs estimates presented during the working group.
Testing and Certification Costs
    DOE also estimated the magnitude of the aggregate industry 
compliance testing costs needed to conform to new energy conservation 
standards. Although compliance testing costs are a subset of product 
conversion costs, DOE estimated these costs separately. DOE pursued 
this approach because no energy conservation standards currently exist 
for dedicated-purpose pool pumps; as such, all basic models will be 
required to be tested and certified to comply with new energy 
conservation standards regardless of the level of such a standard. As a 
result, the industry-wide magnitude of these compliance testing costs 
will be constant, regardless of the selected standard level.
    DOE notes that new energy conservation standards will require every 
model offered for sale to be tested according to the sampling plan 
proposed in the test procedure final rule. This sampling plan specifies 
that a minimum of two units must be tested to certify a basic model as 
compliant. DOE estimated the industry-wide magnitude of compliance 
testing by multiplying the estimated number of models currently in each 
equipment class by the cost to test each model. DOE used product 
specification sheets and information from manufacturer interviews to 
estimate the total number of models in each equipment class. DOE 
estimated testing and certification costs based on input from third-
party test labs and manufacturers to be $11,000 per model, which 
applies to all self-priming, all non-self-priming, pressure cleaner 
booster and waterfall pumps.
d. Markup Scenarios
    As discussed in section IV.C.5, the MPCs for dedicated-purpose pool 
pumps are the manufacturers' production costs for those units. These 
costs include materials, labor, depreciation, and overhead, which are 
collectively referred to as the cost of goods sold. The MSP is the 
price received by DPPP manufacturers from the first sale, typically to 
a wholesaler or a retailer, regardless of the downstream distribution 
channel through which the dedicated-purpose pool pumps are ultimately 
sold. The MSP is not the same as the cost the end user pays for the 
dedicated-purpose pool pump, because there are typically multiple sales 
along the distribution chain and various markups applied to each sale. 
The MSP equals the MPC multiplied by the manufacturer markup. The 
manufacturer markup covers all the dedicated-purpose pool pump 
manufacturer's non-production costs (i.e., selling, general, and 
administrative expenses; research and development; interest) as well as 
profit. Total industry revenue for DPPP manufacturers equals the MSPs 
at each efficiency level multiplied by the number of shipments at that 
efficiency level.
    Modifying these manufacturer markups in the standards cases yields 
a different set of impacts on DPPP manufacturers than in the no-
standards case. For the MIA, DOE modeled three standards case markup 
scenarios for dedicated-purpose pool pumps to represent the uncertainty 
regarding the potential impacts on prices and profitability for DPPP 
manufacturers following the implementation of standards. The three 
scenarios are: (1) A preservation of gross margin markup scenario, or 
flat markup; (2) a preservation of operating profit markup scenario; 
and (3) a two-tiered markup scenario. Each scenario leads to different 
manufacturer markup values, which, when applied to the inputted MPCs, 
result in varying revenue and cash-flow impacts on DPPP manufacturers.
    Under the preservation of gross margin percentage scenario, DOE 
applied a single uniform ``gross margin percentage'' markup across all 
efficiency levels, which assumes that manufacturers would be able to 
maintain the same amount of profit as a percentage of revenues at all 
efficiency levels within an equipment class. DOE used manufacturer 
interviews, and publicly available financial information for 
manufacturers to estimate the preservation of gross margin markup for 
each equipment class. DOE estimated a manufacturer markup of 1.46 for 
all self-priming and waterfall pumps, 1.35 for all non-self-priming and 
pressure cleaner booster pumps, and 1.27 for integral cartridge filter 
and integral sand filter pool pumps. DOE presented these manufacturer 
markups to the working group and did not receive any objection. (Docket 
No. EERE-2015-BT-STD-0008-0079, April 19 DPPP Working Group Meeting, at 
p. 92-99)
    The preservation of operating profit markup scenario assumes that 
manufacturers are not able to yield additional operating profit from 
higher production costs and the investments that are required to comply 
with new DPPP energy conservation standards. Instead this scenario 
assumes that manufacturers are only able to maintain the no-standards 
case total operating profit in absolute dollars in the standards cases, 
despite higher product costs and investment.

[[Page 5709]]

    DOE implemented the two-tiered markup scenario because multiple 
manufacturers stated in interviews that they offer tiers of product 
lines that are differentiated, in part, by efficiency level. 
Specifically, manufacturers stated that they earn lower markups on 
self-priming pool filter pumps that have variable-speed functionality, 
compared to self-priming pool filter pumps with single or two-speed 
functionality. As higher standards push more consumers to purchase 
variable-speed motors, manufacturers lose sales of higher margin 
single- and two-speed motor dedicated-purpose pool pumps. Therefore, 
average manufacturer markups decrease.
    A comparison of industry financial impacts under the three markup 
scenarios is presented in section V.B.2.a of this direct final rule.

K. Emissions Analysis

    The emissions analysis consists of two components. The first 
component estimates the effect of potential energy conservation 
standards on power sector and site (where applicable) combustion 
emissions of CO2, NOX, SO2, and Hg. 
The second component estimates the impacts of potential standards on 
emissions of two additional greenhouse gases, CH4 and 
N2O, as well as the reductions to emissions of all species 
due to ``upstream'' activities in the fuel production chain. These 
upstream activities comprise extraction, processing, and transporting 
fuels to the site of combustion. The associated emissions are referred 
to as upstream emissions.
    The analysis of power sector emissions uses marginal emissions 
factors that were derived from data in AEO2016, as described in section 
IV.M. The methodology is described in chapter 13 and chapter 15 of the 
DPPP direct final rule TSD.
    Combustion emissions of CH4 and N2O are 
estimated using emissions intensity factors published by the EPA: 
Greenhouse Gases HG Emissions Factors Hub.\111\ The FFC upstream 
emissions are estimated based on the methodology described in chapter 
15 of the DPPP direct final rule TSD. The upstream emissions include 
both emissions from fuel combustion during extraction, processing, and 
transportation of fuel, and ``fugitive'' emissions (direct leakage to 
the atmosphere) of CH4 and CO2.
---------------------------------------------------------------------------

    \111\ Available at www.epa.gov/climateleadership/center-corporate-climate-leadership-ghg-emission-factors-hub.
---------------------------------------------------------------------------

    The emissions intensity factors are expressed in terms of physical 
units per megawatt-hour (MWh) or million Btu (MMBtu) of site energy 
savings. Total emissions reductions are estimated using the energy 
savings calculated in the national impact analysis.
    For CH4 and N2O, DOE calculated emissions 
reduction in tons and also in terms of units of CO2- 
equivalent (CO2eq). Emissions of CH4 and 
N2O are often converted to CO2eq by multiplying 
each ton of gas by the gas' global warming potential (GWP) over a 100-
year time horizon. Based on the Fifth Assessment Report of the 
Intergovernmental Panel on Climate Change,\112\ DOE used GWP values of 
28 for CH4 and 265 for N2O.
---------------------------------------------------------------------------

    \112\ IPCC (2013). Climate Change 2013: The Physical Science 
Basis. Contribution of Working Group I to the Fifth Assessment 
Report of the Intergovernmental Panel on Climate Change Stocker, 
T.F., D. Qin, G.-K. Plattner, M. Tignor, S.K. Allen, J. Boschung, A. 
Nauels, Y. Xia, V. Bex and P.M. Midgley (eds.). Cambridge University 
Press, Cambridge, United Kingdom and New York, NY, USA. Chapter 8.
---------------------------------------------------------------------------

    The AEO incorporates the projected impacts of existing air quality 
regulations on emissions. AEO2016 generally represents current 
legislation and environmental regulations, including recent government 
actions, for which implementing regulations were available as of the 
end of February 2016. DOE's estimation of impacts accounts for the 
presence of the emissions control programs discussed in the following 
paragraphs.
    SO2 emissions from affected electric generating units 
(EGUs) are subject to nationwide and regional emissions cap-and-trade 
programs. Title IV of the Clean Air Act sets an annual emissions cap on 
SO2 for affected EGUs in the 48 contiguous States and the 
District of Columbia (DC). (42 U.S.C. 7651 et seq.) SO2 
emissions from 28 eastern States and DC were also limited under the 
Clean Air Interstate Rule (CAIR). 70 FR 25162 (May 12, 2005). CAIR 
created an allowance-based trading program that operates along with the 
Title IV program. In 2008, CAIR was remanded to EPA by the U.S. Court 
of Appeals for the District of Columbia Circuit, but it remained in 
effect.\113\ In 2011, EPA issued a replacement for CAIR, the Cross-
State Air Pollution Rule (CSAPR). 76 FR 48208 (Aug. 8, 2011). On August 
21, 2012, the D.C. Circuit issued a decision to vacate CSAPR,\114\ and 
the court ordered EPA to continue administering CAIR. On April 29, 
2014, the U.S. Supreme Court reversed the judgment of the D.C. Circuit 
and remanded the case for further proceedings consistent with the 
Supreme Court's opinion.\115\ On October 23, 2014, the D.C. Circuit 
lifted the stay of CSAPR.\116\ Pursuant to this action, CSAPR went into 
effect (and CAIR ceased to be in effect) as of January 1, 2015.\117\ 
AEO2016 incorporates implementation of CSAPR.
---------------------------------------------------------------------------

    \113\ See North Carolina v. EPA, 531 F.3d 896 (D.C. Cir. 2008), 
modified on rehearing, 550 F.3d 1176 (D.C. Cir. 2008).
    \114\ See EME Homer City Generation, LP v. EPA, 696 F.3d 7.
    \115\ See EPA v. EME Homer City Generation, 134 S. Ct. 1584, 
1610 (U.S. 2014). The Supreme Court held in part that EPA's 
methodology for quantifying emissions that must be eliminated in 
certain States due to their impacts in other downwind States was 
based on a permissible, workable, and equitable interpretation of 
the Clean Air Act provision that provides statutory authority for 
CSAPR.
    \116\ See EME Homer City Generation, L.P. v. EPA, Order (D.C. 
Cir. filed October 23, 2014) (No. 11-1302).
    \117\ On July 28, 2015, the D.C. Circuit issued its opinion 
regarding the remaining issues raised with respect to CSAPR that 
were remanded by the Supreme Court. The D.C. Circuit largely upheld 
CSAPR, but remanded to EPA without vacatur certain States' emission 
budgets for reconsideration. EME Homer City Generation, LP v. EPA, 
795 F.3d 118 (D.C. Cir. 2015).
---------------------------------------------------------------------------

    The attainment of emissions caps is typically flexible among EGUs 
and is enforced through the use of emissions allowances and tradable 
permits. Under existing EPA regulations, any excess SO2 
emissions allowances resulting from the lower electricity demand caused 
by the adoption of an efficiency standard could be used to permit 
offsetting increases in SO2 emissions by any regulated EGU. 
In past years, DOE recognized that there was uncertainty about the 
effects of efficiency standards on SO2 emissions covered by 
the existing cap-and-trade system, but it concluded that negligible 
reductions in power sector SO2 emissions would occur as a 
result of standards.
    Beginning in 2016, however, SO2 emissions will fall as a 
result of the Mercury and Air Toxics Standards (MATS) for power plants. 
77 FR 9304 (Feb. 16, 2012). In the MATS final rule, EPA established a 
standard for hydrogen chloride as a surrogate for acid gas hazardous 
air pollutants (HAP), and also established a standard for 
SO2 (a non-HAP acid gas) as an alternative equivalent 
surrogate standard for acid gas HAP. The same controls are used to 
reduce HAP and non-HAP acid gas; thus, SO2 emissions will be 
reduced as a result of the control technologies installed on coal-fired 
power plants to comply with the MATS requirements for acid gas. AEO2016 
assumes that, in order to continue operating, coal plants must have 
either flue gas desulfurization or dry sorbent injection systems 
installed by 2016. Both technologies, which are used to reduce acid gas 
emissions, also reduce SO2 emissions. Under the MATS, 
emissions will be far below the cap established by

[[Page 5710]]

CSAPR, so it is unlikely that excess SO2 emissions 
allowances resulting from the lower electricity demand would be needed 
or used to permit offsetting increases in SO2 emissions by 
any regulated EGU.\118\ Therefore, DOE believes that energy 
conservation standards that decrease electricity generation will 
generally reduce SO2 emissions in 2016 and beyond.
---------------------------------------------------------------------------

    \118\ DOE notes that on June 29, 2015, the U.S. Supreme Court 
ruled that the EPA erred when the agency concluded that cost did not 
need to be considered in the finding that regulation of hazardous 
air pollutants from coal- and oil-fired electric utility steam 
generating units (EGUs) is appropriate and necessary under section 
112 of the Clean Air Act (CAA). Michigan v. EPA, 135 S. Ct. 2699 
(2015). The Supreme Court did not vacate the MATS rule, and DOE has 
tentatively determined that the Court's decision on the MATS rule 
does not change the assumptions regarding the impact of energy 
conservation standards on SO2 emissions. Further, the 
Court's decision does not change the impact of the energy 
conservation standards on mercury emissions. The EPA, in response to 
the U.S. Supreme Court's direction, has now considered cost in 
evaluating whether it is appropriate and necessary to regulate coal- 
and oil-fired EGUs under the CAA. EPA concluded in its final 
supplemental finding that a consideration of cost does not alter the 
EPA's previous determination that regulation of hazardous air 
pollutants, including mercury, from coal- and oil-fired EGUs, is 
appropriate and necessary. 79 FR 24420 (April 25, 2016). The MATS 
rule remains in effect, but litigation is pending in the D.C. 
Circuit Court of Appeals over EPA's final supplemental finding MATS 
rule.
---------------------------------------------------------------------------

    CSAPR established a cap on NOX emissions in 28 eastern 
States and the District of Columbia. Energy conservation standards are 
expected to have little effect on NOX emissions in those 
States covered by CSAPR because excess NOX emissions 
allowances resulting from the lower electricity demand could be used to 
permit offsetting increases in NOX emissions from other 
facilities. However, standards would be expected to reduce 
NOX emissions in the States not affected by the caps, so DOE 
estimated NOX emissions reductions from the standards 
considered in this direct final rule for these States.
    The MATS limit mercury emissions from power plants, but they do not 
include emissions caps and, as such, DOE's energy conservation 
standards would likely reduce Hg emissions. DOE estimated mercury 
emissions reduction using emissions factors based on AEO2016, which 
incorporates the MATS.
    The AEO2016 Reference case (and some other cases) assumes 
implementation of the Clean Power Plan (CPP), which is the EPA program 
to regulate CO2 emissions at existing fossil-fired electric 
power plants.\119\ DOE used the AEO2016 No-CPP case as a basis for 
developing emissions factors for the electric power sector to be 
consistent with its use of the No-CPP case in the NIA.\120\
---------------------------------------------------------------------------

    \119\ U.S. Environmental Protection Agency, ``Carbon Pollution 
Emission Guidelines for Existing Stationary Sources: Electric 
Utility Generating Units'' (Washington, DC: October 23, 2015). 
https://www.federalregister.gov/articles/2015/10/23/2015-22842/carbon-pollution-emission-guidelines-for-existing-stationary-sources-electric-utility-generating.
    \120\ As DOE has not modeled the effect of CPP during the 30 
year analysis period of this rulemaking, there is some uncertainty 
as to the magnitude and overall effect of the energy efficiency 
standards. With respect to estimated CO2 and 
NOX emissions reductions and their associated monetized 
benefits, if implemented the CPP would result in an overall decrease 
in CO2 emissions from electric generating units (EGUs), 
and would thus likely reduce some of the estimated CO2 
reductions associated with this rulemaking.
---------------------------------------------------------------------------

L. Monetizing Carbon Dioxide and Other Emissions Impacts

    As part of the development of this rule, DOE considered the 
estimated monetary benefits from the reduced emissions of 
CO2, CH4, N2O and NOX that 
are expected to result from each of the TSLs considered. In order to 
make this calculation analogous to the calculation of the NPV of 
consumer benefit, DOE considered the reduced emissions expected to 
result over the lifetime of products shipped in the projection period 
for each TSL. This section summarizes the basis for the values used for 
monetizing the emissions benefits and presents the values considered in 
this direct final rule.
1. Social Cost of Carbon
    The SC-CO2 is an estimate of the monetized damages 
associated with an incremental increase in carbon emissions in a given 
year. It is intended to include (but is not limited to) climate-change-
related changes in net agricultural productivity, human health, 
property damages from increased flood risk, and the value of ecosystem 
services. Estimates of the SC-CO2 are provided in dollars 
per metric ton of CO2. A domestic SC-CO2 value is 
meant to reflect the value of damages in the United States resulting 
from a unit change in CO2 emissions, while a global SC-
CO2 value is meant to reflect the value of damages 
worldwide.
    Under section 1(b)(6) of Executive Order 12866, ``Regulatory 
Planning and Review,'' 58 FR 51735 (Oct. 4, 1993), agencies must, to 
the extent permitted by law, ``assess both the costs and the benefits 
of the intended regulation and, recognizing that some costs and 
benefits are difficult to quantify, propose or adopt a regulation only 
upon a reasoned determination that the benefits of the intended 
regulation justify its costs.'' The purpose of the SC-CO2 
estimates presented here is to allow agencies to incorporate the 
monetized social benefits of reducing CO2 emissions into 
cost-benefit analyses of regulatory actions. The estimates are 
presented with an acknowledgement of the many uncertainties involved 
and with a clear understanding that they should be updated over time to 
reflect increasing knowledge of the science and economics of climate 
impacts.
    As part of the interagency process that developed these SC-
CO2 estimates, technical experts from numerous agencies met 
on a regular basis to consider public comments, explore the technical 
literature in relevant fields, and discuss key model inputs and 
assumptions. The main objective of this process was to develop a range 
of SC-CO2 values using a defensible set of input assumptions 
grounded in the existing scientific and economic literatures. In this 
way, key uncertainties and model differences transparently and 
consistently inform the range of SC-CO2 estimates used in 
the rulemaking process.
a. Monetizing Carbon Dioxide Emissions
    When attempting to assess the incremental economic impacts of 
CO2 emissions, the analyst faces a number of challenges. A 
report from the National Research Council \121\ points out that any 
assessment will suffer from uncertainty, speculation, and lack of 
information about (1) future emissions of GHGs, (2) the effects of past 
and future emissions on the climate system, (3) the impact of changes 
in climate on the physical and biological environment, and (4) the 
translation of these environmental impacts into economic damages. As a 
result, any effort to quantify and monetize the harms associated with 
climate change will raise questions of science, economics, and ethics 
and should be viewed as provisional.
---------------------------------------------------------------------------

    \121\ National Research Council. Hidden Costs of Energy: 
Unpriced Consequences of Energy Production and Use. 2009. National 
Academies Press: Washington, DC.
---------------------------------------------------------------------------

    Despite the limits of both quantification and monetization, SC-
CO2 estimates can be useful in estimating the social 
benefits of reducing CO2 emissions. Although any numerical 
estimate of the benefits of reducing carbon dioxide emissions is 
subject to some uncertainty, that does not relieve DOE of its 
obligation to attempt to factor those benefits into its cost-benefit 
analysis. Moreover, the interagency working group (IWG) SC-
CO2 estimates are well supported by the existing scientific 
and economic

[[Page 5711]]

literature. As a result, DOE has relied on the IWG SC-CO2 
estimates in quantifying the social benefits of reducing CO2 
emissions. DOE estimates the benefits from reduced (or costs from 
increased) emissions in any future year by multiplying the change in 
emissions in that year by the SC-CO2 values appropriate for 
that year. The NPV of the benefits can then be calculated by 
multiplying each of these future benefits by an appropriate discount 
factor and summing across all affected years.
    It is important to emphasize that the current SC-CO2 
values reflect the IWG's best assessment, based on current data, of the 
societal effect of CO2 emissions. The IWG is committed to 
updating these estimates as the science and economic understanding of 
climate change and its impacts on society improves over time. In the 
meantime, the interagency group will continue to explore the issues 
raised by this analysis and consider public comments as part of the 
ongoing interagency process.
    In 2009, an interagency process was initiated to offer a 
preliminary assessment of how best to quantify the benefits from 
reducing carbon dioxide emissions. To ensure consistency in how 
benefits are evaluated across Federal agencies, the Administration 
sought to develop a transparent and defensible method, specifically 
designed for the rulemaking process, to quantify avoided climate change 
damages from reduced CO2 emissions. The interagency group 
did not undertake any original analysis. Instead, it combined SC-
CO2 estimates from the existing literature to use as interim 
values until a more comprehensive analysis could be conducted. The 
outcome of the preliminary assessment by the interagency group was a 
set of five interim values that represented the first sustained 
interagency effort within the U.S. government to develop an SC-
CO2 estimate for use in regulatory analysis. The results of 
this preliminary effort were presented in several proposed and final 
rules issued by DOE and other agencies.
b. Current Approach
    After the release of the interim values, the IWG reconvened on a 
regular basis to generate improved SC-CO2 estimates. 
Specially, the IWG considered public comments and further explored the 
technical literature in relevant fields. It relied on three integrated 
assessment models commonly used to estimate the SC-CO2: The 
FUND, DICE, and PAGE models. These models are frequently cited in the 
peer-reviewed literature and were used in the last assessment of the 
Intergovernmental Panel on Climate Change (IPCC). Each model was given 
equal weight in the SC-CO2 values that were developed.
    Each model takes a slightly different approach to model how changes 
in emissions result in changes in economic damages. A key objective of 
the interagency process was to enable a consistent exploration of the 
three models, while respecting the different approaches to quantifying 
damages taken by the key modelers in the field. An extensive review of 
the literature was conducted to select three sets of input parameters 
for these models: Climate sensitivity, socio-economic and emissions 
trajectories, and discount rates. A probability distribution for 
climate sensitivity was specified as an input into all three models. In 
addition, the IWG used a range of scenarios for the socio-economic 
parameters and a range of values for the discount rate. All other model 
features were left unchanged, relying on the model developers' best 
estimates and judgments.
    In 2010, the IWG selected four sets of SC-CO2 values for 
use in regulatory analyses. Three sets of values are based on the 
average SC-CO2 from the three integrated assessment models, 
at discount rates of 2.5, 3, and 5 percent. The fourth set, which 
represents the 95th percentile SC-CO2 estimate across all 
three models at a 3-percent discount rate, was included to represent 
higher-than-expected impacts from climate change further out in the 
tails of the SC-CO2 distribution. The values grow in real 
terms over time. Additionally, the IWG determined that a range of 
values from 7 percent to 23 percent should be used to adjust the global 
SC-CO2 to calculate domestic effects,\122\ although 
preference is given to consideration of the global benefits of reducing 
CO2 emissions. Table IV-31 presents the values in the 2010 
IWG report.\123\
---------------------------------------------------------------------------

    \122\ It is recognized that this calculation for domestic values 
is approximate, provisional, and highly speculative. There is no a 
priori reason why domestic benefits should be a constant fraction of 
net global damages over time.
    \123\ United States Government-Interagency Working Group on 
Social Cost of Carbon. Social Cost of Carbon for Regulatory Impact 
Analysis Under Executive Order 12866. February 2010. https://www.whitehouse.gov/sites/default/files/omb/inforeg/for-agencies/Social-Cost-of-Carbon-for-RIA.pdf.

                               Table IV-31--Annual SCC Values From 2010 IWG Report
                                           [2007$ per metric ton CO2]
----------------------------------------------------------------------------------------------------------------
                                                                    Discount rate and statistic
                                                 ---------------------------------------------------------------
                                                        5%              3%             2.5%             3%
                      Year                       ---------------------------------------------------------------
                                                                                                       95th
                                                      Average         Average         Average       Percentile
----------------------------------------------------------------------------------------------------------------
2010............................................             4.7            21.4            35.1            64.9
2015............................................             5.7            23.8            38.4            72.8
2020............................................             6.8            26.3            41.7            80.7
2025............................................             8.2            29.6            45.9            90.4
2030............................................             9.7            32.8            50.0           100.0
2035............................................            11.2            36.0            54.2           109.7
2040............................................            12.7            39.2            58.4           119.3
2045............................................            14.2            42.1            61.7           127.8
2050............................................            15.7            44.9            65.0           136.2
----------------------------------------------------------------------------------------------------------------

    In 2013 the IWG released an update (which was revised in July 2015) 
that contained SC-CO2 values that were generated using the 
most recent versions of the three integrated assessment models that 
have been published in the peer-reviewed literature.\124\ DOE used

[[Page 5712]]

these values for this direct final rule. Table IV-32 shows the four 
sets of SC-CO2 estimates from the 2013 interagency update 
(revised July 2015) in 5-year increments from 2010 through 2050. The 
full set of annual SC-CO2 estimates from 2010 through 2050 
is reported in appendix 14A of the direct final rule TSD. The central 
value that emerges is the average SC-CO2 across models at 
the 3-percent discount rate. However, for purposes of capturing the 
uncertainties involved in regulatory impact analysis, the IWG 
emphasizes the importance of including all four sets of SC-
CO2 values.
---------------------------------------------------------------------------

    \124\ United States Government-Interagency Working Group on 
Social Cost of Carbon. Technical Support Document: Technical Update 
of the Social Cost of Carbon for Regulatory Impact Analysis Under 
Executive Order 12866. May 2013. Revised July 2015. https://www.whitehouse.gov/sites/default/files/omb/inforeg/scc-tsd-final-july-2015.pdf. In 2015, the IWG asked the National Academies of 
Science, Engineering and Medicine (NAS) to review the latest 
research on modeling the economic aspects of climate change to 
inform future revisions of the SC-CO2. The NAS Committee on the 
Social Cost of Carbon issued an interim report in January 2016 that 
recommended against a near-term update of the SC-CO2 estimates, but 
included recommendations for enhancing the presentation and 
discussion of uncertainty around the current estimates. A new 
Technical Support Document, released by the IWG in August 2016, 
responds to these recommendations (https://www.whitehouse.gov/sites/default/files/omb/inforeg/scc_tsd_final_clean_8_26_16.pdf). The NAS 
Committee's final report, expected in early 2017, will provide 
longer term recommendations for a more comprehensive update.

                   Table IV-32--Annual SC-CO2 Values From 2013 IWG Update (Revised July 2015)
                                           [2007$ per metric ton CO2]
----------------------------------------------------------------------------------------------------------------
                                                                    Discount rate and statistic
                                                 ---------------------------------------------------------------
                                                        5%              3%             2.5%             3%
                      Year                       ---------------------------------------------------------------
                                                                                                       95th
                                                      Average         Average         Average       Percentile
----------------------------------------------------------------------------------------------------------------
2010............................................              10              31              50              86
2015............................................              11              36              56             105
2020............................................              12              42              62             123
2025............................................              14              46              68             138
2030............................................              16              50              73             152
2035............................................              18              55              78             168
2040............................................              21              60              84             183
2045............................................              23              64              89             197
2050............................................              26              69              95             212
----------------------------------------------------------------------------------------------------------------

    It is important to recognize that a number of key uncertainties 
remain, and that current SC-CO2 estimates should be treated 
as provisional and revisable because they will evolve with improved 
scientific and economic understanding. The interagency group also 
recognizes that the existing models are imperfect and incomplete. The 
National Research Council report mentioned previously points out that 
there is tension between the goal of producing quantified estimates of 
the economic damages from an incremental ton of carbon and the limits 
of existing efforts to model these effects. There are a number of 
analytical challenges that are being addressed by the research 
community, including research programs housed in many of the Federal 
agencies participating in the interagency process to estimate the SC-
CO2. The interagency group intends to periodically review 
and reconsider those estimates to reflect increasing knowledge of the 
science and economics of climate impacts, as well as improvements in 
modeling.\125\
---------------------------------------------------------------------------

    \125\ In November 2013, OMB announced a new opportunity for 
public comment on the interagency technical support document 
underlying the revised SCC estimates. 78 FR 70586. In July 2015 OMB 
published a detailed summary and formal response to the many 
comments that were received: This is available at https://www.whitehouse.gov/blog/2015/07/02/estimating-benefits-carbon-dioxide-emissions-reductions. It also stated its intention to seek 
independent expert advice on opportunities to improve the estimates, 
including many of the approaches suggested by commenters.
---------------------------------------------------------------------------

    DOE converted the values from the 2013 interagency report (revised 
July 2015) to 2015$ using the implicit price deflator for gross 
domestic product (GDP) from the Bureau of Economic Analysis. For each 
of the four sets of SC-CO2 cases, the values for emissions 
in 2020 are $13.5, $47.4, $69.9, and $139 per metric ton avoided 
(values expressed in 2015$). DOE derived values after 2050 based on the 
trend in 2010-2050 in each of the four cases in the interagency update.
    DOE multiplied the CO2 emissions reduction estimated for 
each year by the SC-CO2 value for that year in each of the 
four cases. To calculate a present value of the stream of monetary 
values, DOE discounted the values in each of the four cases using the 
specific discount rate that had been used to obtain the SC-
CO2 values in each case.
2. Social Cost of Methane and Nitrous Oxide
    While carbon dioxide is the most prevalent greenhouse gas emitted 
into the atmosphere, other GHGs are also important contributors. These 
include methane and nitrous oxide. Global warming potential values 
(GWPs) are often used to convert emissions of non-CO2 GHGs 
to CO2-equivalents to facilitate comparison of policies and 
inventories involving different GHGs. While GWPs allow for some useful 
comparisons across gases on a physical basis, using the social cost of 
carbon to value the damages associated with changes in CO2-
equivalent emissions is not optimal. This is because non-CO2 
GHGs differ not just in their potential to absorb infrared radiation 
over a given time frame, but also in the temporal pathway of their 
impact on radiative forcing, which is relevant for estimating their 
social cost but not reflected in the GWP. Physical impacts other than 
temperature change also vary across gases in ways that are not captured 
by GWP.
    In light of these limitations and the paucity of peer-reviewed 
estimates of the social cost of non-CO2 gases in the 
literature, the 2010 SCC Technical Support Document did not include an 
estimate of the social cost of non-CO2 GHGs and did not 
endorse the use of GWP to approximate the value of non-CO2 
emission changes in regulatory analysis. Instead, the IWG noted that 
more work was needed to link non-CO2 GHG emission changes to 
economic impacts.
    Since that time, new estimates of the social cost of non-
CO2 GHG emissions have been developed in the scientific 
literature, and a recent study by Marten et al. (2015) provided the 
first set of published estimates for the social cost of CH4 
and N2O emissions that are consistent with the methodology 
and

[[Page 5713]]

modeling assumptions underlying the IWG SC-CO2 
estimates.\126\ Specifically, Marten et al. used the same set of three 
integrated assessment models, five socioeconomic and emissions 
scenarios, equilibrium climate sensitivity distribution, three constant 
discount rates, and the aggregation approach used by the IWG to develop 
the SC-CO2 estimates. An addendum to the IWG's Technical 
Support Document on Social Cost of Carbon for Regulatory Impact 
Analysis under Executive Order 12866 summarizes the Marten et al. 
methodology and presents the SC-CH4 and SC-N2O 
estimates from that study as a way for agencies to incorporate the 
social benefits of reducing CH4 and N2O emissions 
into benefit-cost analyses of regulatory actions that have small, or 
``marginal,'' impacts on cumulative global emissions.\127\
---------------------------------------------------------------------------

    \126\ Marten, A.L., Kopits, E.A., Griffiths, C.W., Newbold, 
S.C., and A. Wolverton. 2015. Incremental CH4 and 
N2O Mitigation Benefits Consistent with the U.S. 
Government's SC-CO2 Estimates. Climate Policy. 15(2): 272-298 
(published online, 2014).
    \127\ United States Government-Interagency Working Group on 
Social Cost of Greenhouse Gases. Addendum to Technical Support 
Document on Social Cost of Carbon for Regulatory Impact Analysis 
under Executive Order 12866: Application of the Methodology to 
Estimate the Social Cost of Methane and the Social Cost of Nitrous 
Oxide. August 2016. https://www.whitehouse.gov/sites/default/files/omb/inforeg/august_2016_sc_ch4_sc_n2o_addendum_final_8_26_16.pdf.
---------------------------------------------------------------------------

    The methodology and estimates described in the addendum have 
undergone multiple stages of peer review and their use in regulatory 
analysis has been subject to public comment. The estimates are 
presented with an acknowledgement of the limitations and uncertainties 
involved and with a clear understanding that they should be updated 
over time to reflect increasing knowledge of the science and economics 
of climate impacts, just as the IWG has committed to do for the SC-
CO2. The OMB has determined that the use of the Marten et 
al. estimates in regulatory analysis is consistent with the 
requirements of OMB's Information Quality Guidelines Bulletin for Peer 
Review and OMB Circular A-4.
    The SC-CH4 and SC-N2O estimates are presented 
in Table IV-33. Following the same approach as with the SC-
CO2, values for 2010, 2020, 2030, 2040, and 2050 are 
calculated by combining all outputs from all scenarios and models for a 
given discount rate. Values for the years in between are calculated 
using linear interpolation. The full set of annual SC-CH4 
and SC-N2O estimates between 2010 and 2050 is reported in 
appendix 14-A of the direct final rule TSD. DOE derived values after 
2050 based on the trend in 2010-2050 in each of the four cases in the 
IWG addendum.

                                         Table IV-33--Annual SC-CH4 and SC-N2O Estimates From 2016 IWG Addendum
                                                                 [2007$ per metric ton]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                    SC-CH4                                                 SC-N2O
                                           -------------------------------------------------------------------------------------------------------------
                                                         Discount rate and statistic                            Discount rate and statistic
                                           -------------------------------------------------------------------------------------------------------------
                   Year                          5%           3%          2.5%           3%             5%           3%          2.5%           3%
                                           -------------------------------------------------------------------------------------------------------------
                                                                                        95th                                                   95th
                                              Average      Average      Average      percentile      Average      Average      Average      percentile
--------------------------------------------------------------------------------------------------------------------------------------------------------
2010......................................          370          870        1,200           2,400        3,400       12,000       18,000          31,000
2015......................................          450        1,000        1,400           2,800        4,000       13,000       20,000          35,000
2020......................................          540        1,200        1,600           3,200        4,700       15,000       22,000          39,000
2025......................................          650        1,400        1,800           3,700        5,500       17,000       24,000          44,000
2030......................................          760        1,600        2,000           4,200        6,300       19,000       27,000          49,000
2035......................................          900        1,800        2,300           4,900        7,400       21,000       29,000          55,000
2040......................................        1,000        2,000        2,600           5,500        8,400       23,000       32,000          60,000
2045......................................        1,200        2,300        2,800           6,100        9,500       25,000       34,000          66,000
2050......................................        1,300        2,500        3,100           6,700       11,000       27,000       37,000          72,000
--------------------------------------------------------------------------------------------------------------------------------------------------------

    DOE multiplied the CH4 and N2O emissions 
reduction estimated for each year by the SC-CH4 and SC-
N2O estimates for that year in each of the four cases. To 
calculate a present value of the stream of monetary values, DOE 
discounted the values in each of the four cases using the specific 
discount rate that had been used to obtain the SC-CH4 and 
SC-N2O estimates in each case.
3. Social Cost of Other Air Pollutants
    As noted previously, DOE estimated how the considered energy 
conservation standards would decrease power sector NOX 
emissions in those 22 States not affected by CSAPR. Unlike greenhouse 
gas emissions, the social cost of other air pollution emissions depends 
upon the location of those emissions (and conversely, the social 
benefit of emissions reductions depends on the location of those 
reductions), making monetization more complicated.
    DOE estimated the monetized value of NOX emissions 
reductions from electricity generation using benefit per ton estimates 
from the Regulatory Impact Analysis for the Clean Power Plan Final 
Rule, published in August 2015 by EPA's Office of Air Quality Planning 
and Standards.\128\ The report includes high and low values for 
NOX (as PM2.5) for 2020, 2025, and 2030 using 
discount rates of 3 percent and 7 percent; these values are presented 
in appendix 14B of the direct final rule TSD. DOE primarily relied on 
the low estimates to be conservative.\129\ DOE developed values 
specific to the sector for dedicated-purpose pool pumps using a method 
described in appendix 14B of the direct final rule TSD. For this 
analysis DOE used linear interpolation to define values for the years 
between 2020 and 2025 and between 2025 and 2030; for years beyond 2030 
the value is held constant.
---------------------------------------------------------------------------

    \128\ Available at www.epa.gov/cleanpowerplan/clean-power-plan-final-rule-regulatory-impact-analysis. See Tables 4A-3, 4A-4, and 
4A-5 in the report. The U.S. Supreme Court has stayed the rule 
implementing the Clean Power Plan until the current litigation 
against it concludes. Chamber of Commerce, et al. v. EPA, et al., 
Order in Pending Case, 577 U.S. ___ (2016). However, the benefit-
per-ton estimates established in the Regulatory Impact Analysis for 
the Clean Power Plan are based on scientific studies that remain 
valid irrespective of the legal status of the Clean Power Plan.
    \129\ For the monetized NOX benefits associated with 
PM2.5, the related benefits are primarily based on an 
estimate of premature mortality derived from the ACS study (Krewski 
et al. 2009), which is the lower of the two EPA central tendencies. 
Using the lower value is more conservative when making the policy 
decision concerning whether a particular standard level is 
economically justified. If the benefit-per-ton estimates were based 
on the Six Cities study (Lepuele et al. 2012), the values would be 
nearly two-and-a-half times larger. (See chapter 14 of the direct 
final rule TSD for citations for the studies mentioned above.)

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

[[Page 5714]]

    DOE multiplied the emissions reduction (in tons) in each year by 
the associated $/ton values, and then discounted each series using 
discount rates of 3 percent and 7 percent as appropriate.
    DOE is evaluating appropriate monetization of reduction in other 
emissions in energy conservation standards rulemakings. DOE has not 
included monetization of those emissions in the current analysis.

M. Utility Impact Analysis

    The utility impact analysis estimates several effects on the 
electric power generation industry that would result from the adoption 
of new or amended energy conservation standards. The utility impact 
analysis estimates the changes in installed electrical capacity and 
generation that would result for each TSL. The analysis is based on 
published output from the NEMS associated with AEO2016. NEMS produces 
the AEO Reference case, as well as a number of side cases that estimate 
the economy-wide impacts of changes to energy supply and demand. For 
the current analysis, impacts are quantified by comparing the levels of 
electricity sector generation, installed capacity, fuel consumption and 
emissions consistent with the projections described on page E-8 of AEO 
2016 and various side cases. Details of the methodology are provided in 
the appendices to chapters 13 and 15 of the direct final rule TSD.
    The output of this analysis is a set of time-dependent coefficients 
that capture the change in electricity generation, primary fuel 
consumption, installed capacity, and power sector emissions due to a 
unit reduction in demand for a given end use. These coefficients are 
multiplied by the stream of electricity savings calculated in the NIA 
to provide estimates of selected utility impacts of potential new or 
amended energy conservation standards.

N. Employment Impact Analysis

    DOE considers employment impacts in the domestic economy as one 
factor in selecting a proposed standard. Employment impacts from new 
conservation standards include both direct and indirect impacts. Direct 
employment impacts are any changes in the number of employees of 
manufacturers of the products subject to standards, their suppliers, 
and related service firms. The MIA addresses those impacts. Indirect 
employment impacts are changes in national employment that occur due to 
the shift in expenditures and capital investment caused by the purchase 
and operation of more-efficient appliances. Indirect employment impacts 
from standards consist of the net jobs created or eliminated in the 
national economy, other than in the manufacturing sector being 
regulated, caused by: (1) Reduced spending by consumers on energy, (2) 
reduced spending on new energy supply by the utility industry, (3) 
increased consumer spending on the products to which the new standards 
apply and other goods and services, and (4) the effects of those three 
factors throughout the economy.
    One method for assessing the possible effects on the demand for 
labor of such shifts in economic activity is to compare sector 
employment statistics developed by the Labor Department's Bureau of 
Labor Statistics (BLS).\130\ BLS regularly publishes its estimates of 
the number of jobs per million dollars of economic activity in 
different sectors of the economy, as well as the jobs created elsewhere 
in the economy by this same economic activity. Data from BLS indicate 
that expenditures in the utility sector generally create fewer jobs 
(both directly and indirectly) than expenditures in other sectors of 
the economy.\131\ There are many reasons for these differences, 
including wage differences and the fact that the utility sector is more 
capital-intensive and less labor-intensive than other sectors. Energy 
conservation standards have the effect of reducing consumer utility 
bills. Because reduced consumer expenditures for energy likely lead to 
increased expenditures in other sectors of the economy, the general 
effect of efficiency standards is to shift economic activity from a 
less labor-intensive sector (i.e., the utility sector) to more labor-
intensive sectors (e.g., the retail and service sectors). Thus, the BLS 
data suggest that net national employment may increase due to shifts in 
economic activity resulting from energy conservation standards.
---------------------------------------------------------------------------

    \130\ Data on industry employment, hours, labor compensation, 
value of production, and the implicit price deflator for output for 
these industries are available upon request by calling the Division 
of Industry Productivity Studies (202-691-5618) or by sending a 
request by email to [email protected].
    \131\ See Bureau of Economic Analysis, Regional Multipliers: A 
User Handbook for the Regional Input-Output Modeling System (RIMS 
II), U.S. Department of Commerce (1992).
---------------------------------------------------------------------------

    DOE estimated indirect national employment impacts for the standard 
levels considered in this direct final rule using an input/output model 
of the U.S. economy called Impact of Sector Energy Technologies version 
4 (ImSET).\132\ ImSET is a special-purpose version of the ``U.S. 
Benchmark National Input-Output'' (I-O) model, which was designed to 
estimate the national employment and income effects of energy-saving 
technologies. The ImSET software includes a computer-based I-O model 
having structural coefficients that characterize economic flows among 
187 sectors most relevant to industrial, commercial, and residential 
building energy use.
---------------------------------------------------------------------------

    \132\ J. Livingston, O.V., S.R. Bender, M.J. Scott, and R.W. 
Schultz (2015). ImSET 4.0: Impact of Sector Energy Technologies 
Model Description and User's Guide. Pacific Northwest National 
Laboratory. PNNL-24563.
---------------------------------------------------------------------------

    DOE notes that ImSET is not a general equilibrium forecasting 
model, and understands the uncertainties involved in projecting 
employment impacts, especially changes in the later years of the 
analysis. Because ImSET does not incorporate price changes, the 
employment effects predicted by ImSET may over-estimate actual job 
impacts over the long run for this rule. Therefore, DOE used ImSET only 
to generate results for near-term timeframes (2028), where these 
uncertainties are reduced. For more details on the employment impact 
analysis, see chapter 16 of the direct final rule TSD.

V. Analytical Results and Conclusions

    The following section addresses the results from DOE's analyses 
with respect to the considered energy conservation standards for 
dedicated-purpose pool pumps. It addresses the TSLs examined by DOE, 
the projected impacts of each of these levels if adopted as energy 
conservation standards for dedicated-purpose pool pumps, and the 
standards levels that DOE is adopting in this direct final rule. 
Additional details regarding DOE's analyses are contained in the direct 
final rule TSD supporting this document.

A. Trial Standard Levels

    DOE analyzed the benefits and burdens of five TSLs for dedicated-
purpose pool pumps. These TSLs were developed by combining specific 
efficiency levels for each of the equipment classes analyzed by DOE. 
DOE presents the results for the TSLs in this direct final rule. The 
results for all efficiency levels that DOE analyzed are in the direct 
final rule TSD.
    Table V-1 presents the TSLs and the corresponding efficiency levels 
that DOE identified for potential amended energy conservation standards 
for dedicated-purpose pool pumps. TSL 5 represents the maximum 
technologically feasible energy efficiency for all equipment classes. 
TSL 4 represents the combination of highest

[[Page 5715]]

efficiency levels without hydraulic improvements (variable speed for 
relevant equipment classes). TSL 3 represents the standard levels 
recommended by the DPPP Working Group. (EERE-2015-BT-STD-0008, No. 82 
Recommendation #1 at p. 1-2) TSL 2 represents the efficiency levels 
with the highest NPV based on dual speed for relevant equipment 
classes, and in other classes the same efficiency level as in TSL 1. 
TSL 1 represents the efficiency levels with the highest NPV based on 
single-speed technology and no hydraulic improvements.

                        Table V-1--Trial Standard Levels for Dedicated-Purpose Pool Pumps
----------------------------------------------------------------------------------------------------------------
                                                                       Trial standard level
                Equipment class                 ----------------------------------------------------------------
                                                      1            2            3            4            5
----------------------------------------------------------------------------------------------------------------
                                                                         Efficiency level
                                                ----------------------------------------------------------------
Standard-Size Self-Priming Pool Filter Pump....            2            5            6            6            7
Small-Size Self-Priming Pool Filter Pump.......            2            5            2            6            7
Standard-Size Non-Self-Priming Pool Filter Pump            1            4            1            6            7
Extra-Small Non-Self-Priming Pool filter Pump..            1            1            1            2            2
Waterfall Pump.................................            1            1            0            2            3
Pressure Cleaner Booster Pump..................            1            1            1            3            4
Integral Cartridge Filter Pool Pump............            0            0            1            0            0
Integral Sand Filter Pool Pump.................            0            0            1            0            0
----------------------------------------------------------------------------------------------------------------

    DOE only considers an efficiency level above the baseline for 
integral cartridge filter and integral sand filter pumps in TSL3, the 
recommended TSL, because DOE is only able to adopt prescriptive 
standards and performance standards for the same equipment through use 
of a direct final rule based on consensus recommendations. (42 U.S.C. 
6295(p)(4)(A) and 6316(a))

B. Economic Justification and Energy Savings

1. Economic Impacts on Individual Consumers
    DOE analyzed the economic impacts on consumers of pool pumps by 
looking at the effects potential standards at each TSL would have on 
the LCC and PBP. DOE also examined the impacts of potential standards 
on selected consumer subgroups. These analyses are discussed below.
a. Life-Cycle Cost and Payback Period
    In general, higher efficiency equipment affects consumers in two 
ways: (1) Purchase price increases and (2) annual operating costs 
decrease. Inputs used for calculating the LCC and PBP include total 
installed costs (i.e., equipment price plus installation costs), and 
operating costs (i.e., annual energy use, energy prices, energy price 
trends, repair costs, and maintenance costs). The LCC calculation also 
uses equipment lifetime and a discount rate. Chapter 8 of the direct 
final rule TSD provides detailed information on the LCC and PBP 
analyses.
    Table V-2 through Table V-17 show the LCC and PBP results for the 
TSLs considered for each equipment class. In the first of each pair of 
tables, the simple payback is measured relative to the baseline 
equipment. In the second of each pair of tables, the impacts are 
measured relative to the efficiency distribution in the no-standards 
case in the compliance year (see Section IV.F.8 of this document). 
Because some consumers purchase equipment with higher efficiency in the 
no-standards case, the average savings are less than the difference 
between the average LCC of the baseline equipment and the average LCC 
at each TSL. The savings refer only to consumers who are affected by a 
standard at a given TSL. Those who already purchase equipment with 
efficiency at or above a given TSL are not affected. Consumers for whom 
the LCC increases at a given TSL experience a net cost.

                                 Table V-2--Average LCC and PBP Results for Standard-Size Self-Priming Pool Filter Pump
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                               Average costs (2015$)
                                            Efficiency   ---------------------------------------------------------------- Simple payback      Average
                   TSL                         level                       First year's      Lifetime                         (years)        lifetime
                                                          Installed cost  operating cost  operating cost        LCC                           (years)
--------------------------------------------------------------------------------------------------------------------------------------------------------
--......................................        Baseline             481             774           4,565           5,046             n/a             6.7
1.......................................               2             576             605           3,640           4,216             0.6             6.7
2.......................................               5             823             315           2,082           2,906             0.7             6.7
3,4.....................................               6             853             223           1,644           2,497             0.7             6.8
5.......................................               7             853             181           1,402           2,255             0.6             6.8
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note: The results for each TSL are calculated assuming that all consumers use equipment at that efficiency level. The PBP is measured relative to the
  baseline equipment.


[[Page 5716]]


Table V-3--Average LCC Savings Relative to the No-Standards Case for Standard-Size Self-Priming Pool Filter Pump
----------------------------------------------------------------------------------------------------------------
                                                                                    Life-cycle cost savings
                                                                             -----------------------------------
                                                                                                   Percent of
                            TSL                             Efficiency level     Average LCC     consumers that
                                                                                  savings *      experience net
                                                                                   (2015$)          cost (%)
----------------------------------------------------------------------------------------------------------------
1.........................................................                 2               669                 1
2.........................................................                 5             1,779                 5
3,4.......................................................                 6             2,140                10
5.........................................................                 7             2,085                 8
----------------------------------------------------------------------------------------------------------------
* The savings represent the average LCC for affected consumers.


                                   Table V-4--Average LCC and PBP Results for Small-Size Self-Priming Pool Filter Pump
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                               Average costs (2015$)
                                            Efficiency   ---------------------------------------------------------------- Simple payback      Average
                   TSL                         level                       First year's      Lifetime                         (years)        lifetime
                                                          Installed cost  operating cost  operating cost        LCC                           (years)
--------------------------------------------------------------------------------------------------------------------------------------------------------
--......................................        Baseline             320             282           1,743           2,063             n/a             6.8
1,3.....................................               2             386             200           1,294           1,679             0.8             6.8
2.......................................               5             588             146           1,004           1,593             2.0             6.8
4.......................................               6             720              94             826           1,546             2.1             6.8
5.......................................               7             720              77             723           1,443             1.9             6.8
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note: The results for each TSL are calculated assuming that all consumers use equipment at that efficiency level. The PBP is measured relative to the
  baseline equipment.


  Table V-5--Average LCC Savings Relative to the No-Standards Case for Small-Size Self-Priming Pool Filter Pump
----------------------------------------------------------------------------------------------------------------
                                                                                    Life-cycle cost savings
                                                                             -----------------------------------
                                                                                                   Percent of
                            TSL                             Efficiency level     Average LCC     consumers that
                                                                                  savings *      experience net
                                                                                   (2015$)          cost (%)
----------------------------------------------------------------------------------------------------------------
1,3.......................................................                 2               295                 4
2.........................................................                 5               322                27
4.........................................................                 6               360                29
5.........................................................                 7               414                26
----------------------------------------------------------------------------------------------------------------
* The savings represent the average LCC for affected consumers.


                               Table V-6--Average LCC and PBP Results for Standard-Size Non-Self-Priming Pool Filter Pump
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                               Average costs (2015$)
                                            Efficiency   ---------------------------------------------------------------- Simple payback      Average
                   TSL                         level                       First year's      Lifetime                         (years)        lifetime
                                                          Installed cost  operating cost  operating cost        LCC                           (years)
--------------------------------------------------------------------------------------------------------------------------------------------------------
--......................................        Baseline             199             225           1,055           1,254             n/a             4.7
1,3.....................................               1             208             177             858           1,066             0.2             4.7
2.......................................               4             411             131             684           1,095             2.3             4.7
4.......................................               6             576              64             541           1,117             2.3             4.8
5.......................................               7             576              45             458           1,034             2.1             4.8
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note: The results for each TSL are calculated assuming that all consumers use equipment at that efficiency level. The PBP is measured relative to the
  baseline equipment.


[[Page 5717]]


 Table V-7--Average LCC Savings Relative to the No-Standards Case for Standard-Size Non-Self-Priming Pool Filter
                                                      Pump
----------------------------------------------------------------------------------------------------------------
                                                                                    Life-cycle cost savings
                                                                             -----------------------------------
                                                                                                   Percent of
                            TSL                             Efficiency level     Average LCC     consumers that
                                                                                  savings *      experience net
                                                                                   (2015$)          cost (%)
----------------------------------------------------------------------------------------------------------------
1,3.......................................................                 1               191                 0
2.........................................................                 4                35                58
4.........................................................                 6                10                51
5.........................................................                 7                93                47
----------------------------------------------------------------------------------------------------------------
* The savings represent the average LCC for affected consumers.


                                Table V-8--Average LCC and PBP Results for Extra-Small Non-Self-Priming Pool Filter Pump
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                               Average costs (2015$)
                                            Efficiency   ----------------------------------------------------------------     Simple          Average
                   TSL                         level                       First year's      Lifetime                         payback        lifetime
                                                          Installed cost  operating cost  operating cost        LCC           (years)         (years)
--------------------------------------------------------------------------------------------------------------------------------------------------------
--......................................        Baseline             135              57             305             440             n/a             4.7
1,2,3...................................               1             146              45             259             405             0.9             4.7
4,5.....................................               2             158              43             255             413             1.6             4.7
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note: The results for each TSL are calculated assuming that all consumers use equipment at that efficiency level. The PBP is measured relative to the
  baseline equipment.


  Table V-9--Average LCC Savings Relative to the No-Standards Case for Extra-Small Non-Self-Priming Pool Filter
                                                      Pump
----------------------------------------------------------------------------------------------------------------
                                                                                    Life-cycle cost savings
                                                                             -----------------------------------
                                                                                                   Percent of
                            TSL                             Efficiency level     Average LCC     consumers that
                                                                                  savings *      experience net
                                                                                   (2015$)          cost (%)
----------------------------------------------------------------------------------------------------------------
1,2,3.....................................................                 1                36                 4
4,5.......................................................                 2                10                39
----------------------------------------------------------------------------------------------------------------
* The savings represent the average LCC for affected consumers.


                                               Table V-10--Average LCC and PBP Results for Waterfall Pumps
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                               Average costs (2015$)
                                            Efficiency   ----------------------------------------------------------------     Simple          Average
                   TSL                         level                       First year's      Lifetime                         payback        lifetime
                                                          Installed cost  operating cost  operating cost        LCC           (years)         (years)
--------------------------------------------------------------------------------------------------------------------------------------------------------
--......................................        Baseline             313              73             500             813             n/a             6.6
1,2.....................................               1             335              67             481             816             4.5             6.6
3.......................................               0             313              73             500             813             n/a             6.6
4.......................................               2             375              60             459             834             5.4             6.6
5.......................................               3             375              54             429             803             3.7             6.6
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note: The results for each TSL are calculated assuming that all consumers use equipment at that efficiency level. The PBP is measured relative to the
  baseline equipment.


              Table V-11--Average LCC Savings Relative to the No-Standards Case for Waterfall Pumps
----------------------------------------------------------------------------------------------------------------
                                                                                    Life-cycle cost savings
                                                                             -----------------------------------
                                                                                                   Percent of
                            TSL                             Efficiency level     Average LCC     consumers that
                                                                                  savings *      experience net
                                                                                   (2015$)          cost (%)
----------------------------------------------------------------------------------------------------------------
1,2.......................................................                 1                -3                50

[[Page 5718]]

 
3.........................................................                 0               n/a               n/a
4.........................................................                 2               -20                70
5.........................................................                 3                13                55
----------------------------------------------------------------------------------------------------------------
* The savings represent the average LCC for affected consumers.


                                       Table V-12--Average LCC and PBP Results for Pressure Cleaner Booster Pumps
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                               Average costs (2015$)
                                            Efficiency   ----------------------------------------------------------------     Simple          Average
                   TSL                         level                       First year's      Lifetime                         payback        lifetime
                                                          Installed cost  operating cost  operating cost        LCC           (years)         (years)
--------------------------------------------------------------------------------------------------------------------------------------------------------
--......................................        Baseline             255             173             858           1,113             n/a             4.8
1,2,3...................................               1             276             140             726           1,001             0.6             4.8
4.......................................               3             631             110             758           1,390             6.0             4.8
5.......................................               4             631              99             711           1,343             5.1             4.8
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note: The results for each TSL are calculated assuming that all consumers use equipment at that efficiency level. The PBP is measured relative to the
  baseline equipment.


      Table V-13--Average LCC Savings Relative to the No-Standards Case for Pressure Cleaner Booster Pumps
----------------------------------------------------------------------------------------------------------------
                                                                                    Life-cycle cost savings
                                                                             -----------------------------------
                                                                                                   Percent of
                            TSL                             Efficiency level     Average LCC     consumers that
                                                                                  savings *      experience net
                                                                                   (2015$)          cost (%)
----------------------------------------------------------------------------------------------------------------
1,2,3.....................................................                 1               111                 0
4.........................................................                 3              -372                69
5.........................................................                 4              -313                68
----------------------------------------------------------------------------------------------------------------
* The savings represent the average LCC for affected consumers.


                                     Table V-14--Average LCC and PBP Results for Integral Cartridge Filter Pool Pump
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                               Average costs (2015$)
                                            Efficiency   ---------------------------------------------------------------- Simple payback      Average
                   TSL                         level                       First year's      Lifetime                         (years)        lifetime
                                                          Installed cost  operating cost  operating cost        LCC                           (years)
--------------------------------------------------------------------------------------------------------------------------------------------------------
1,2,4,5.................................               0              98              65             234             332             n/a             3.8
3.......................................               1             110              26              93             203             0.4             3.8
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note: The results for each TSL are calculated assuming that all consumers use equipment at that efficiency level. The PBP is measured relative to the
  baseline equipment.


    Table V-15--Average LCC Savings Relative to the No-Standards Case for Integral Cartridge Filter Pool Pump
----------------------------------------------------------------------------------------------------------------
                                                                                    Life-cycle cost savings
                                                                             -----------------------------------
                                                                                                   Percent of
                            TSL                             Efficiency level     Average LCC     consumers that
                                                                                  savings *      experience net
                                                                                   (2015$)          cost (%)
----------------------------------------------------------------------------------------------------------------
1,2,4,5...................................................                 0               n/a               n/a

[[Page 5719]]

 
3.........................................................                 1               128                 3
----------------------------------------------------------------------------------------------------------------
* The savings represent the average LCC for affected consumers.


                                       Table V-16--Average LCC and PBP Results for Integral Sand Filter Pool Pump
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                               Average costs (2015$)
                                            Efficiency   ---------------------------------------------------------------- Simple payback      Average
                   TSL                         level                       First year's      Lifetime                         (years)        lifetime
                                                          Installed cost  operating cost  operating cost        LCC                           (years)
--------------------------------------------------------------------------------------------------------------------------------------------------------
1,2,4,5.................................               0             154              39             133             287             n/a             3.8
3.......................................               1             166              14              48             214             0.5             3.8
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note: The results for each TSL are calculated assuming that all consumers use equipment at that efficiency level. The PBP is measured relative to the
  baseline equipment.


      Table V-17--Average LCC Savings Relative to the No-Standards Case for Integral Sand Filter Pool Pump
----------------------------------------------------------------------------------------------------------------
                                                                                    Life-cycle cost savings
                                                                             -----------------------------------
                                                                                                   Percent of
                            TSL                             Efficiency level     Average LCC     consumers that
                                                                                  savings *      experience net
                                                                                   (2015$)          cost (%)
----------------------------------------------------------------------------------------------------------------
1,2,4,5...................................................                 0               n/a               n/a
3.........................................................                 1                73                 3
----------------------------------------------------------------------------------------------------------------
* The savings represent the average LCC for affected consumers.

b. Consumer Subgroup Analysis
    In the consumer subgroup analysis, DOE estimated the impact of the 
considered TSLs on senior-only households. Table V-18 through Table V-
25 compare the average LCC savings and PBP at each efficiency level for 
the consumer subgroups, along with the average LCC savings for the 
entire consumer sample. In most cases, the average LCC savings and PBP 
for senior-only households at the considered efficiency levels are not 
substantially different from the average for all households. Chapter 11 
of the direct final rule TSD presents the complete LCC and PBP results 
for the subgroup analysis.

 Table V-18--Comparison of LCC Savings and PBP for Consumer Subgroup and All Households for Standard-Size Self-
                                            Priming Pool Filter Pump
----------------------------------------------------------------------------------------------------------------
                                                      Average life-cycle cost      Simple payback period (years)
                                                          savings (2015$)        -------------------------------
                       TSL                       --------------------------------
                                                    Senior-only                     Senior-only   All households
                                                    households    All households    households
----------------------------------------------------------------------------------------------------------------
1...............................................             741             651             0.6             0.6
2...............................................           1,902           1,664             0.7             0.8
3,4.............................................           2,344           2,054             0.7             0.7
5...............................................           2,282           2,004             0.6             0.7
----------------------------------------------------------------------------------------------------------------


[[Page 5720]]


   Table V-19--Comparison of LCC Savings and PBP for Consumer Subgroup and All Households for Small-Size Self-
                                            Priming Pool Filter Pump
----------------------------------------------------------------------------------------------------------------
                                                      Average life-cycle cost      Simple payback period (years)
                                                          savings (2015$)        -------------------------------
                       TSL                       --------------------------------
                                                    Senior-only                     Senior-only   All households
                                                    households    All households    households
----------------------------------------------------------------------------------------------------------------
1,3.............................................             336             295             0.7             0.8
2...............................................             377             322             1.8             2.0
4...............................................             446             360             1.9             2.1
5...............................................             501             414             1.8             1.9
----------------------------------------------------------------------------------------------------------------


  Table V-20--Comparison of LCC Savings and PBP for Consumer Subgroup and All Households for Standard-Size Non-
                                          Self-Priming Pool Filter Pump
----------------------------------------------------------------------------------------------------------------
                                                      Average life-cycle cost      Simple payback period (years)
                                                          savings (2015$)        -------------------------------
                       TSL                       --------------------------------
                                                    Senior-only                     Senior-only   All households
                                                    households    All households    households
----------------------------------------------------------------------------------------------------------------
1,3.............................................             217             191             0.2             0.2
2...............................................              62              35             1.9             2.3
4...............................................              86              10             2.0             2.3
5...............................................             182              93             1.8             2.1
----------------------------------------------------------------------------------------------------------------


Table V-21--Comparison of LCC Savings and PBP for Consumer Subgroup and All Households for Extra-Small Non-Self-
                                            Priming Pool Filter Pump
----------------------------------------------------------------------------------------------------------------
                                                      Average life-cycle cost      Simple payback period (years)
                                                          savings (2015$)        -------------------------------
                       TSL                       --------------------------------
                                                    Senior-only                     Senior-only   All households
                                                    households    All households    households
----------------------------------------------------------------------------------------------------------------
1,2,3...........................................              42              36             0.8             0.9
4,5.............................................              15              10             1.4             1.6
----------------------------------------------------------------------------------------------------------------


    Table V-22--Comparison of LCC Savings and PBP for Consumer Subgroup and All Households for Waterfall Pump
----------------------------------------------------------------------------------------------------------------
                                                      Average life-cycle cost      Simple payback period (years)
                                                          savings (2015$)        -------------------------------
                       TSL                       --------------------------------
                                                    Senior-only                     Senior-only   All households
                                                    households    All households    households
----------------------------------------------------------------------------------------------------------------
1,2.............................................               0              -4             4.1             4.7
3...............................................             n/a             n/a             n/a             n/a
4...............................................             -14             -22             4.9             5.6
5...............................................              21               9             3.4             3.8
----------------------------------------------------------------------------------------------------------------


   Table V-23--Comparison of LCC Savings and PBP for Consumer Subgroup and All Households for Pressure Cleaner
                                                  Booster Pump
----------------------------------------------------------------------------------------------------------------
                                                      Average life-cycle cost      Simple payback period (years)
                                                          savings (2015$)        -------------------------------
                       TSL                       --------------------------------
                                                    Senior-only                     Senior-only   All households
                                                    households    All households    households
----------------------------------------------------------------------------------------------------------------
1,2,3...........................................             134             112             0.5             0.6
4...............................................            -353            -372             5.2             6.0
5...............................................            -287            -312             4.4             5.1
----------------------------------------------------------------------------------------------------------------


[[Page 5721]]


  Table V-24--Comparison of LCC Savings and PBP for Consumer Subgroup and All Households for Integral Cartridge
                                                Filter Pool Pump
----------------------------------------------------------------------------------------------------------------
                                                      Average life-cycle cost      Simple payback period (years)
                                                          savings (2015$)        -------------------------------
                       TSL                       --------------------------------
                                                    Senior-only                     Senior-only   All households
                                                    households    All households    households
----------------------------------------------------------------------------------------------------------------
1,2,4,5.........................................             n/a             n/a             n/a             n/a
3...............................................             161             128             0.3             0.4
----------------------------------------------------------------------------------------------------------------


 Table V-25--Comparison of LCC Savings and PBP for Consumer Subgroup and All Households for Integral Sand Filter
                                                    Pool Pump
----------------------------------------------------------------------------------------------------------------
                                                      Average life-cycle cost      Simple payback period (years)
                                                          savings (2015$)        -------------------------------
                       TSL                       --------------------------------
                                                    Senior-only                     Senior-only   All households
                                                    households    All households    households
----------------------------------------------------------------------------------------------------------------
1,2,4,5.........................................             n/a             n/a             n/a             n/a
3...............................................              92              73             0.4             0.5
----------------------------------------------------------------------------------------------------------------

c. Rebuttable Presumption Payback
    As discussed in section III.G.3, EPCA establishes a rebuttable 
presumption that an energy conservation standard is economically 
justified if the increased purchase cost for a product that meets the 
standard is less than three times the value of the first-year energy 
savings resulting from the standard. In calculating a rebuttable 
presumption payback period for each of the considered TSLs, DOE used 
discrete values, and as required by EPCA, based the energy use 
calculation from the DOE test procedures for dedicated-purpose pool 
pumps. In contrast, the PBPs presented in section V.B.1.a were 
calculated using distributions that reflect the range of energy use in 
the field.
    Table V-26 presents the rebuttable-presumption payback periods for 
the considered TSLs for dedicated-purpose pool pumps. While DOE 
examined the rebuttable-presumption criterion, it considered whether 
the standard levels considered for this rule are economically justified 
through a more detailed analysis of the economic impacts of those 
levels, pursuant to 42 U.S.C. 6295(o)(2)(B)(i) and 6316(a), that 
considers the full range of impacts to the consumer, manufacturer, 
Nation, and environment. The results of that analysis serve as the 
basis for DOE to definitively evaluate the economic justification for a 
potential standard level, thereby supporting or rebutting the results 
of any preliminary determination of economic justification.

                               Table V-26--Rebuttable-Presumption Payback Periods
----------------------------------------------------------------------------------------------------------------
                                                                        TSL
         Equipment class         -------------------------------------------------------------------------------
                                         1               2               3               4               5
----------------------------------------------------------------------------------------------------------------
                                                                      (Years)
                                 -------------------------------------------------------------------------------
Self-Priming, Standard Size.....             0.5             0.8             0.8             0.8             0.8
Self-Priming, Small Size........             0.9             2.1             0.9             2.4             2.1
Non-Self-Priming, Standard Size.             0.2             2.4             0.2             2.8             2.5
Non-Self-Priming, Extra-Small...             1.0             1.0             1.0             1.8             1.8
Waterfall.......................             3.9             3.9             n/a             4.7             3.2
Pressure Cleaner Booster........             0.6             0.6             0.6             7.8             6.5
Integral Cartridge..............             n/a             n/a             0.3             n/a             n/a
Integral Sand...................             n/a             n/a             0.5             n/a             n/a
----------------------------------------------------------------------------------------------------------------

2. Economic Impacts on Manufacturers
    DOE performed an MIA to estimate the impact of new energy 
conservation standards on manufacturers of dedicated-purpose pool 
pumps. The next section describes the expected impacts on manufacturers 
at each considered TSL. Chapter 12 of the direct final rule TSD 
explains the analysis in further detail.
a. Industry Cash-Flow Analysis Results
    In this section, DOE provides results from the GRIM, which examines 
changes to the industry that would result from the analyzed standards. 
Table V-27 through Table V-29 illustrate the estimated financial 
impacts (represented by changes in INPV) of analyzed energy 
conservation standards on manufacturers of dedicated-purpose pool 
pumps, as well as the conversion costs that DOE estimates DPPP 
manufacturers would incur at each TSL.
    As discussed in section IV.J.2.d, DOE modeled three different 
manufacturer markup scenarios to evaluate a range of cash flow impacts 
on the DPPP industry: (1) The preservation of gross margin markup 
scenario, (2) the preservation of operating profit markup scenario, and 
(3) a two-tiered markup scenario. To assess the upper (less severe) 
bound on the range of potential impacts on DPPP manufacturers, DOE

[[Page 5722]]

modeled a preservation of gross margin markup scenario. This scenario 
assumes that in the standards cases, manufacturers would be able to 
pass along the higher production costs required for more efficient 
products to their consumers. Specifically, the industry would be able 
to maintain its no-standards case gross margin (as a percentage of 
revenue) for each equipment class despite the higher production costs 
in the standards cases.
    To assess the lower (more severe) bound on the range of potential 
impacts on DPPP manufacturers, DOE modeled two additional manufacturer 
markup scenarios; a preservation of operating profit markup scenario 
and a two-tiered markup scenario. In the preservation of operating 
profit markup scenario manufacturers are not able to yield additional 
operating profit from higher production costs and the investments that 
are required to comply with new DPPP energy conservation standards, but 
instead are only able to maintain the same per-unit operating profit in 
the standards cases that was earned in the no-standards case. This 
scenario represents a potential lower bound on the range of impacts on 
manufacturers because manufacturers are only able to maintain the 
operating profit, in dollars, that they would have earned in the no-
standards case despite higher production costs and investments. 
Manufacturers must, therefore, reduce margins as a result of this 
manufacturer markup scenario, which reduces profitability.
    DOE also modeled a two-tiered markup scenario as a potential lower 
(more severe) bound on the range of potential impacts on DPPP 
manufacturers. In this manufacturer markup scenario, manufacturers have 
two tiers of markups that are differentiated, in part, by efficiency 
level. Several manufacturers suggested that new standards would lead to 
a reduction in overall markups and could reduce their overall 
profitability. During manufacturer interviews, manufacturers stated 
that they have lower margins on self-priming pool filter pumps that use 
a variable-speed motor. DOE used this information to estimate 
manufacturer markups for self-priming pool filter pumps under a two-
tiered pricing strategy in the no-standards case. In the standards 
cases, DOE modeled the situation in which standards result in more 
variable-speed self-priming pool filter pumps being purchased by 
consumers. Since these products are modeled to have a lower 
manufacturer markup than the single- and two-speed self-priming pool 
filter pumps, the overall manufacturer markup declines and results in a 
lower overall manufacturer markup and reduction in profitability.
    Each of the modeled scenarios results in a unique set of cash-flows 
and corresponding industry values at each TSL. In the following 
discussion, the INPV results refer to the difference in industry value 
between the no-standards case and each standards case resulting from 
the sum of discounted cash-flows from 2016 (the reference year) through 
2050 (the end of the analysis period). To provide perspective on the 
short-run cash-flow impact, DOE includes in the discussion of results a 
comparison of free cash flow between the no-standards case and the 
standards case at each TSL in the year before new standards take 
effect.
    Table V-27 through Table V-29 show the MIA results for each TSL 
using the manufacturer markup scenarios previously described.

           Table V-27--Manufacturer Impact Analysis for Dedicated-Purpose Pool Pumps Under the Preservation of Gross Margin Markup Scenario *
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                    Trial standard level
                                                                     Units         No-standards   ------------------------------------------------------
                                                                                       case            1          2          3          4          5
--------------------------------------------------------------------------------------------------------------------------------------------------------
INPV.........................................................        2015($ MM)             212.8      209.0      197.8      219.8      195.9      110.5
Change in INPV...............................................        2015($ MM)  ................      (3.7)     (15.0)        7.0     (16.9)    (102.3)
Change in INPV...............................................                 %  ................      (1.8)      (7.1)        3.3      (7.9)     (48.1)
Product Conversion Costs.....................................        2015($ MM)  ................       11.7       29.8       30.8       61.7      116.3
Capital Conversion Costs.....................................        2015($ MM)  ................        3.5        6.0        4.8        6.7       83.3
Total Investment Required....................................        2015($ MM)  ................       15.2       35.8       35.6       68.4      199.5
--------------------------------------------------------------------------------------------------------------------------------------------------------
* INPV results do not trend monotonically due to the efficiency level composition. The efficiency levels for each TSL are depicted in Table V-1 in
  section V.A.


          Table V-28--Manufacturer Impact Analysis for Dedicated-Purpose Pool Pumps Under the Preservation of Operating Profit Markup Scenario
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                    Trial standard level
                                                                     Units         No-standards   ------------------------------------------------------
                                                                                       case            1          2          3          4          5
--------------------------------------------------------------------------------------------------------------------------------------------------------
INPV.........................................................        2015($ MM)             212.8      201.0      178.8      166.5      126.2       36.8
Change in INPV...............................................        2015($ MM)  ................     (11.7)     (34.0)     (46.3)     (86.6)    (176.0)
Change in INPV...............................................                 %  ................      (5.5)     (16.0)     (21.8)     (40.7)     (82.7)
Product Conversion Costs.....................................        2015($ MM)  ................       11.7       29.8       30.8       61.7      116.3
Capital Conversion Costs.....................................        2015($ MM)  ................        3.5        6.0        4.8        6.7       83.3
Total Investment Required....................................        2015($ MM)  ................       15.2       35.8       35.6       68.4      199.5
--------------------------------------------------------------------------------------------------------------------------------------------------------


                     Table V-29--Manufacturer Impact Analysis for Dedicated-Purpose Pool Pumps Under the Two-Tiered Markup Scenario
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                    Trial standard level
                                                                     Units         No-standards   ------------------------------------------------------
                                                                                       case            1          2          3          4          5
--------------------------------------------------------------------------------------------------------------------------------------------------------
INPV.........................................................        2015($ MM)             212.8      210.9      200.2      182.6      144.9       59.3

[[Page 5723]]

 
Change in INPV...............................................        2015($ MM)  ................      (1.9)     (12.6)     (30.2)     (67.8)    (153.5)
Change in INPV...............................................                 %  ................      (0.9)      (5.9)     (14.2)     (31.9)     (72.1)
Product Conversion Costs.....................................        2015($ MM)  ................       11.7       29.8       30.8       61.7      116.3
Capital Conversion Costs.....................................        2015($ MM)  ................        3.5        6.0        4.8        6.7       83.3
Total Investment Required....................................        2015($ MM)  ................       15.2       35.8       35.6       68.4      199.5
--------------------------------------------------------------------------------------------------------------------------------------------------------

    At TSL 1, DOE estimates impacts on INPV range from -$11.7 million 
to -$1.9 million, or a change in INPV of -5.5 percent to -0.9 percent. 
At TSL 1, industry free cash-flow is expected to decrease by $5.3 
million to $13.2 million, compared to the no-standards case value of 
$18.5 million in 2020, the year leading up to the standards.
    DOE estimates that 46 percent of all self-priming shipments, 67 
percent of extra-small non-self-priming shipments, 71 percent of 
standard-size non-self-priming shipments, 87 percent of pressure 
cleaner booster shipments, 30 percent of waterfall shipments, 100 
percent of integral cartridge filter shipments, and 100 percent of 
integral sand filter DPPP shipments would already meet or exceed the 
efficiency levels required at TSL 1 in the standards year. To bring 
non-compliant equipment into compliance, DOE expects DPPP manufacturers 
to incur $11.7 million in product conversion costs for redesign and 
testing. In addition, DOE estimates manufacturers will incur $3.5 
million in capital conversion costs at TSL 1.
    At TSL 1, the shipment-weighted average MPC for all dedicated-
purpose pool pumps increases by 6.1 percent relative to the no-
standards case shipment-weighted average MPC for all dedicated-purpose 
pool pumps in 2021, the year of compliance for new DPPP energy 
conservation standards. In the preservation of gross margin markup 
scenario, manufacturers are able to fully pass on this cost increase to 
consumers. The increase in shipment-weighted average MPC for all 
dedicated-purpose pool pumps is outweighed by the $15.2 million in 
conversion costs, causing a slightly negative change in INPV at TSL 1 
under the preservation of gross margin markup scenario.
    Under the preservation of operating profit markup scenario, 
manufacturers earn the same operating profit as would be earned in the 
no-standards case, but manufacturers do not earn additional profit from 
their investments. The average manufacturer markup for both the 
preservation of operating profit and two-tiered markup scenarios is 
calculated by averaging the DPPP industry manufacturer markup, for all 
DPPP equipment classes in aggregate, from the year of compliance (2021) 
until the terminal year (2050). In this preservation of operating 
profit markup scenario, the 6.1 percent increase in the shipment-
weighted average MPC for all dedicated-purpose pool pumps results in a 
slight reduction in average manufacturer markup, from 1.413 in the no-
standards case to 1.409 at TSL 1. The slight reduction in average 
manufacturer markup and $15.2 million in conversion costs causes a 
negative change in INPV at TSL 1 under the preservation of operating 
profit markup scenario.
    Under the two-tiered markup scenario, where manufacturers earn 
lower markups for more efficient products, the average manufacturer 
markup increases from 1.409 in the no-standards case to 1.412 at TSL 1. 
The increase in the average manufacturer markup and the increase in the 
shipment-weighted average MPC for all dedicated-purpose pool pumps are 
outweighed by the $15.2 million in conversion costs, causing a slightly 
negative change in INPV at TSL 1 under the two-tiered markup scenario.
    At TSL 2, DOE estimates impacts on INPV range from -$34.0 million 
to -$12.6 million, or a change in INPV of -16.0 percent to -5.9 
percent. At TSL 2, industry free cash-flow is expected to decrease by 
$11.9 million to $6.6 million, compared to the no-standards case value 
of $18.5 million in 2020, the year leading up to the standards.
    DOE estimates that 32 percent of all self-priming shipments, 67 
percent of extra-small non-self-priming shipments, 7 percent of 
standard-size non-self-priming shipments, 87 percent of pressure 
cleaner booster shipments, 30 percent of waterfall shipments, 100 
percent of integral cartridge filter shipments, and 100 percent of 
integral sand filter pool pump shipments would already meet or exceed 
the efficiency levels required at TSL 2 in the standards year. To bring 
non-compliant equipment into compliance, DOE expects dedicated-purpose 
pool pump manufacturers to incur $29.8 million in product conversion 
costs for redesign and testing. In addition, DOE estimates 
manufacturers will incur $6.0 million in capital conversion costs 
associated with TSL 2, to make investments in tooling and machinery 
required to incorporate the design options analyzed at TSL 2.
    At TSL 2, the shipment-weighted average MPC for all dedicated-
purpose pool pumps decreases by 3.4 percent relative to the no-
standards case shipment-weighted average MPC for all dedicated-purpose 
pool pumps in 2021. At TSL 2, consumers will repair existing self-
priming and non-self-priming pool pumps instead of replacing the entire 
pump, which reduces shipments in the standards year by 0.5 million 
compared to the no-standards case shipments. In the preservation of 
gross margin markup scenario, the decrease in the shipment-weighted 
average MPC for all dedicated-purpose pool pumps, the reduction in 
shipments, and the $35.8 million in conversion costs, causes a negative 
change in INPV at TSL 2 under the preservation of gross margin markup 
scenario.
    Under the preservation of operating profit markup scenario, the 3.4 
percent decrease in the shipment-weighted average MPC for all 
dedicated-purpose pool pumps results in a reduction in average 
manufacturer markup, from 1.413 in the no-standards case to 1.399 at 
TSL 2. The reduction in average manufacturer markup, the reduction in 
shipments, and the $35.8 million in conversion costs causes a negative 
change in INPV at TSL 2 under the preservation of operating profit 
markup scenario.
    Under the two-tiered markup scenario, where manufacturers earn 
lower markups for more efficient products, the average manufacturer 
markup slightly increases from 1.409 in the no-standards case to 1.412 
at TSL 2. The increase in the average manufacturer markup is outweighed 
by the reduction in shipments, and the $35.8 million in conversion 
costs, causing a negative change in INPV at

[[Page 5724]]

TSL 2 under the two-tiered markup scenario.
    At TSL 3, DOE estimates impacts on INPV range from -$46.3 million 
to $7.0 million, or a change in INPV of -21.8 percent to 3.3 percent. 
At TSL 3, industry free cash flow is expected to decrease by $11.9 
million to $6.6 million, compared to the no-standards case value of 
$18.5 million in 2020, the year leading up to the standards.
    DOE estimates that 46 percent of small-size self-priming shipments, 
30 percent of standard-size self-priming shipments, 67 percent of 
extra-small non-self-priming shipments, 71 percent of standard-size 
non-self-priming shipments, 87 percent of pressure cleaner booster 
shipments, 100 percent of waterfall shipments, 20 percent of integral 
cartridge filter shipments, and 20 percent of integral sand filter pool 
pump shipments would already meet or exceed the efficiency levels 
required at TSL 3 in the standards year. To bring non-compliant 
equipment into compliance, DOE expects DPPP manufacturers to incur 
$30.8 million in product conversion costs for redesign and testing. In 
addition, DOE estimates manufacturers will incur $4.8 million in 
capital conversion costs to make changes to machinery and tooling.
    At TSL 3, the shipment-weighted average MPC for all dedicated-
purpose pool pumps increases by 10.5 percent relative to the no-
standards case shipment-weighted average MPC for all dedicated-purpose 
pool pumps in 2021. At TSL 3 consumers repair existing self-priming 
pool filter pumps instead of replacing the entire pump, which reduces 
shipments in the standards year by 0.3 million compared to the no-
standards case shipments. In the preservation of gross margin markup 
scenario, the increase in the shipment-weighted average MPC for all 
dedicated-purpose pool pumps outweighs the reduction in shipments in 
the standards year, and the $35.6 million in conversion costs, which 
causes a slightly positive change in INPV at TSL 3 under the 
preservation of gross margin markup scenario.
    Under the preservation of operating profit markup scenario, the 
10.5 percent increase in the shipment-weighted average MPC for all 
dedicated-purpose pool pumps results in a reduction in average 
manufacturer markup, from 1.413 in the no-standards case to 1.380 at 
TSL 3. The reduction in average manufacturer markup, the reduction in 
shipments, and $35.6 million in conversion costs causes a negative 
change in INPV at TSL 3 under the preservation of operating profit 
markup scenario.
    Under the two-tiered markup scenario, where manufacturers earn 
lower markups for more efficient products, the average manufacturer 
markup decreases from 1.409 in the no-standards case to 1.389 at TSL 3. 
The decrease in the average manufacturer markup, the reduction in 
shipments, and the $35.6 million in conversion costs cause a negative 
change in INPV at TSL 3 under the two-tiered markup scenario.
    At TSL 4, DOE estimates impacts on INPV range from -$86.6 million 
to -$16.9 million, or a change in INPV of -40.7 percent to -7.9 
percent. At TSL 4, industry free cash-flow is expected to decrease by 
$23.1 million to -$4.6 million, compared to the no-standards case value 
of $18.5 million in 2020, the year leading up to the standards.
    DOE estimates that 30 percent of all self-priming shipments, 33 
percent of extra-small non-self-priming shipments, 6 percent of 
standard-size non-self-priming shipments, 6 percent of pressure cleaner 
booster shipments, 10 percent of waterfall shipments, 100 percent of 
integral cartridge filter shipments and 100 percent of integral sand 
filter pool pump shipments would already meet or exceed the efficiency 
levels required at TSL 4 in the standards year. To bring non-compliant 
equipment into compliance, DOE expects DPPP manufacturers to incur 
$61.7 million in product conversion costs for redesign and testing. In 
addition, DOE estimates manufacturers will incur $6.7 million in 
capital conversion costs associated with TSL 4 to make changes to 
machinery and tooling.
    At TSL 4, the shipment-weighted average MPC for all dedicated-
purpose pool pumps increases by 39.4 percent relative to the no-
standards case shipment-weighted average MPC for all dedicated-purpose 
pool pumps in 2021. At TSL 4, consumers repair existing self-priming, 
non-self-priming, and pressure cleaner booster pumps instead of 
replacing the entire pump, which reduces total shipments in the 
standards year by 0.6 million units compared to the no-standards case 
shipments. In the preservation of gross margin markup scenario, the 
increase in the shipment-weighted average MPC for all dedicated-purpose 
pool pumps is outweighed by the reduction in shipments and the $68.4 
million in conversion costs, which causes a negative change in INPV at 
TSL 4 under the preservation of gross margin markup scenario.
    Under the preservation of operating profit markup scenario, the 
39.4 percent increase in the shipment-weighted average MPC for all 
dedicated-purpose pool pumps results in a reduction in average 
manufacturer markup, from 1.413 in the no-standards case to 1.367 at 
TSL 4. The reduction in average manufacturer markup, the reduction in 
shipments, and $68.4 million in conversion costs causes a significantly 
negative change in INPV at TSL 4 under the preservation of operating 
profit markup scenario.
    Under the two-tiered markup scenario, where manufacturers earn 
lower markups for more efficient products, the average manufacturer 
markup decreases from 1.409 in the no-standards case to 1.376 at TSL 4. 
The decrease in the average manufacturer markup, the reduction in 
shipments, and the $68.4 million in conversion costs cause a 
significantly negative change in INPV at TSL 4 under the two-tiered 
markup scenario.
    At TSL 5, DOE estimates impacts on INPV range from -$176.0 million 
to -$102.3 million, or a change in INPV of -82.7 percent to -48.1 
percent. At TSL 5, industry free cash flow is expected to decrease by 
$79.3 million to -$60.9 million, compared to the no-standards case 
value of $18.5 million in 2020, the year leading up to the standards.
    DOE estimates that 19 percent of all self-priming shipments, 33 
percent of extra-small non-self-priming shipments, 3 percent of 
standard-size non-self-priming shipments, 3 percent of pressure cleaner 
booster shipments, 0 percent of waterfall shipments, 100 percent of 
integral cartridge filter shipments and 100 percent of integral sand 
filter pool pump shipments would already meet the efficiency levels 
required at TSL 5 in the standards year. To bring non-compliant 
equipment into compliance, DOE expects dedicated-purpose pool pump 
manufacturers to incur $116.3 million in product conversion costs for 
redesign and testing. In addition, DOE estimates manufacturers will 
incur $83.3 million in capital conversion costs associated with TSL 5 
to make changes to machinery and tooling.
    At TSL 5, the shipment-weighted average MPC for all dedicated-
purpose pool pumps increases by 39.4 percent relative to the no-
standards case shipment-weighted average MPC for all dedicated-purpose 
pool pumps in 2021. At TSL 5, consumers repair existing self-priming, 
non-self-priming, and pressure cleaner booster pumps instead of 
replacing the entire pump, which reduces total shipments in the 
standards year by 0.6 million units compared to the no-standards case 
shipments. In the preservation of gross margin markup scenario, the 
increase in the shipment-weighted average MPC for all dedicated-

[[Page 5725]]

purpose pool pumps is outweighed by the reduction in shipments and the 
$199.5 million in conversion costs, which causes a significantly 
negative change in INPV at TSL 5 under the preservation of gross margin 
markup scenario.
    Under the preservation of operating profit markup scenario, the 
39.4 percent increase in the shipment-weighted average MPC for all 
dedicated-purpose pool pumps results in a reduction in average 
manufacturer markup, from 1.413 in the no-standards case to 1.363 at 
TSL 5. The reduction in average manufacturer markup, the reduction in 
shipments, and $199.5 million in conversion costs causes a 
significantly negative change in INPV at TSL 5 under the preservation 
of operating profit markup scenario.
    Under the two-tiered markup scenario, where manufacturers earn 
lower markups for more efficient products, the average manufacturer 
markup decreases from 1.409 in the no-standards case to 1.375 at TSL 5. 
The decrease in the average manufacturer markup, the reduction in 
shipments, and the $199.5 million in conversion costs cause a negative 
change in INPV at TSL 5 under the two-tiered markup scenario.
b. Impacts on Direct Employment
    To quantitatively assess the impacts of new energy conservation 
standards on direct employment, DOE used the GRIM to estimate the 
domestic labor expenditures and number of employees in the no-standards 
case and at each TSL from 2016 through 2050. DOE used statistical data 
from the U.S. Census Bureau's 2014 Annual Survey of Manufacturers (ASM) 
and the results of the engineering analysis to calculate industry-wide 
labor expenditures and domestic employment levels. Labor expenditures 
related to equipment manufacturing depend on the labor intensity of the 
equipment, the sales volume, and an assumption that wages remain fixed 
in real terms over time. The total labor expenditures in each year are 
calculated by multiplying the MPCs by the labor percentage of MPCs.
    The total labor expenditures in the GRIM were then converted to 
domestic production employment levels by dividing production labor 
expenditures by the annual payment per production worker (production 
worker hours multiplied by the labor rate found in the ASM). The 
estimates of production workers in this section cover workers, 
including line supervisors, who are directly involved in fabricating 
and assembling equipment within the original equipment manufacturer 
facility. Workers performing services that are closely associated with 
production operations, such as materials handling tasks using 
forklifts, are also included as production labor. DOE's production 
worker estimates only account for workers who manufacture the specific 
equipment covered by this rulemaking.
    DOE calculated the total direct employment associated with the 
covered equipment by multiplying the number of production workers by 
the ratio of ``number of employees'' to ``production workers average 
per year'' calculated using the employment data in the 2014 ASM. Using 
the GRIM, DOE estimates there would be 101 domestic production workers 
for original equipment manufacturers in 2021 in the absence of new 
energy conservation standards. Using ASM data, DOE estimated 175 full-
time employees work directly on the covered equipment. Table V-30 shows 
the range of the impacts of energy conservation standards on U.S. 
production on dedicated-purpose pool pumps. Additional detail on the 
analysis of direct employment can be found in chapter 12 of the direct 
final rule TSD.

                Table V-30--Total Number of Domestic Dedicated-Purpose Pool Pump Workers in 2021
----------------------------------------------------------------------------------------------------------------
                                                                            Trial standard level
                                           No-standards   ------------------------------------------------------
                                               case            1          2          3          4          5
----------------------------------------------------------------------------------------------------------------
Domestic Production Workers in 2021                   101        101         80         94         78         78
 (without changes in production
 locations)............................
Total Number of Domestic Employees in                 175        175        139        163        135        135
 2021..................................
Potential Changes in Domestic            ................     (10)-0  (25)-(21)   (51)-(7)  (51)-(23)  (51)-(23)
 Production Workers in 2021............
----------------------------------------------------------------------------------------------------------------

    The employment impacts shown in Table V-30 represent the potential 
employment changes that could result following the compliance date for 
dedicated-purpose pool pumps. The upper end of the results in the table 
(less severe) estimates the decline in employment due to the decrease 
in the number of DPPPs sold in 2021, as more customers repair their 
dedicated-purpose pool pumps instead of replacing them as they would in 
the no-standards case. This case assumes that manufacturers would 
continue to produce the same scope of covered equipment within the 
United States. The lower end of the range (more severe) represents the 
maximum potential decrease to employment due to production moving to 
lower labor-cost countries, in addition to the decrease in the number 
of DPPPs sold in 2021.
    DOE estimated the lower end of the range based on manufacturer 
interviews. Manufacturers could move production abroad depending on the 
requirements of a standard for self-priming pool filter pumps. Based on 
the complexity of the motor technology used in dedicated-purpose pool 
pumps, either single-speed, two-speed, or variable-speed, DOE estimated 
that the number of domestic production workers could be reduced by 10 
percent if standards were set at TSL 1 (represented by a single-speed 
motor for self-priming pool filter pumps), 25 percent if standards were 
set at TSL 2 (represented by a two-speed motor for self-priming pool 
filter pumps), and 50 percent if standards were set at TSL 3, TSL 4, or 
TSL 5 (represented by a variable-speed motor for self-priming pool 
filter pumps).
    The direct employment impacts shown are independent of the 
employment impacts from the broader U.S. economy, which are documented 
in the employment impact analysis found in chapter 16 of the direct 
final rule TSD.
c. Impacts on Manufacturing Capacity
    DOE did not identify any significant capacity constraints for the 
design options being evaluated for this rulemaking. 46 percent of 
small-size self-priming, 30 percent of standard-size self-priming, 67 
percent of extra-small non-self-priming, 71 percent of standard-size 
non-self-priming, 87 percent of pressure cleaner booster, 100 percent 
of waterfall, 20 percent of integral cartridge filter, and 20 percent 
of integral sand filter pool pump shipments already meet or exceed the 
adopted standard levels. In addition, the design options being 
evaluated are

[[Page 5726]]

widely available as products that are on the market today.
    DOE believes there is a sufficient supply of variable-speed motors 
to be used in all standard-size self-priming pool filter pumps in 2021. 
Variable speed motors are used a wide variety of equipment, and 
dedicated-purpose pool pumps only represent a small fraction all the 
equipment that use variable speed motors. As such existing production 
lines can cope with the change in equipment offerings, and DOE does not 
expect the industry to experience capacity constraints due to the 
increase in demand of variable speed motors or for any other reason 
directly resulting from new energy conservation standards.
d. Impacts on Subgroups of Manufacturers
    As discussed in section IV.J.1, using average cost assumptions to 
develop an industry cash-flow estimate may not be adequate for 
assessing differential impacts among manufacturer subgroups. Small 
manufacturers, niche manufacturers, and manufacturers exhibiting a cost 
structure substantially different from the industry average could be 
affected disproportionately. DOE used the results of the industry 
characterization to group manufacturers exhibiting similar 
characteristics. Consequently, DOE identified small business 
manufacturers as a subgroup for a separate impact analysis.
    For the small business subgroup analysis, DOE applied the small 
business size standards published by the SBA to determine whether a 
company is considered a small business. The size standards are codified 
at 13 CFR part 121. To be categorized as a small business under NAICS 
code 333911, ``Pump and Pumping Equipment Manufacturing,'' a DPPP 
manufacturer and its affiliates may employ a maximum of 750 employees. 
The 750-employee threshold includes all employees in a business' parent 
company and any other subsidiaries. Based on this classification, DOE 
identified five manufacturers that qualify as domestic small 
businesses. The small business subgroup analysis is discussed in 
section VII.B of this document and in chapter 12 of the direct final 
rule TSD.
e. Cumulative Regulatory Burden
    One aspect of assessing manufacturer burden involves considering 
the cumulative impact of multiple DOE standards and the product-
specific regulatory actions of other Federal agencies that affect the 
manufacturers of a covered product or equipment. While any one 
regulation may not impose a significant burden on manufacturers, the 
combined effects of several existing or impending regulations may have 
serious consequences for some manufacturers, groups of manufacturers, 
or an entire industry. Assessing the impact of a single regulation may 
overlook this cumulative regulatory burden. In addition to energy 
conservation standards, other regulations can significantly affect 
manufacturers' financial operations. Multiple regulations affecting the 
same manufacturer can strain profits and lead companies to abandon 
product lines or markets with lower expected future returns than 
competing equipment. For these reasons, DOE conducts an analysis of 
cumulative regulatory burden as part of its rulemakings pertaining to 
appliance efficiency.
    Some DPPP manufacturers also make other products or equipment that 
could be subject to energy conservation standards set by DOE. DOE looks 
at these regulations that could affect DPPP manufacturers that will 
take effect approximately 3 years before or after the estimated 2021 
compliance date or during the compliance period of the new energy 
conservation standards for DPPPs.
    The compliance dates and expected industry conversion costs of 
relevant energy conservation standards are indicated in Table V-31. 
Also, included in the table are Federal regulations that have 
compliance dates beyond the three years before or after the DPPP 
compliance date.

      Table V-31--Compliance Dates and Expected Conversion Expenses of Federal Energy Conservation Standards Affecting Dedicated-Purpose Pool Pump
                                                                      Manufacturers
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                   Number of                                                 Industry
                                                                 Number of       manufacturers     Approximate     Industry conversion      conversion
            Federal energy conservation standard              manufacturers *    from today's    standards year     costs (Millions $)    costs/ revenue
                                                                                    rule **                                                     ***
--------------------------------------------------------------------------------------------------------------------------------------------------------
Small, Large, and Very Large Commercial Package Air                        13                 1            2018            520.8 (2014$)           4.9%.
 Conditioning and Heating Equipment 81 FR 2420 (January 15,
 2016).....................................................
Commercial Packaged Boilers 81 FR 15836 (March 24, 2016)                   45                 1            2019             27.5 (2014$)           2.3%.
 [dagger]..................................................
Commercial Water Heaters 81 FR 34440 (May 31, 2016)                        25                 1            2019             29.8 (2014$)           3.0%.
 [dagger]..................................................
Commercial Warm Air Furnaces 81 FR 2420 (January 15, 2016).                13                 1            2019      7.5 to 22.2 (2014$)      1.7%-5.2%.
Furnace Fans 79 FR 3813 (July 3, 2014).....................                38                 1            2019             40.6 (2013$)           1.6%.
Commercial Compressors 81 FR 40197 (June 21, 2016) [dagger]                40                 1            2019       99.0-125.1 (2014$)      3.1%-3.9%.
Commercial and Industrial Pumps 80 FR 17826 (January 26,                   86                 5            2020             81.2 (2014$)           5.6%.
 2016).....................................................
Residential Boilers 81 FR 2320 (January 15, 2016)..........                36                 2            2021              2.5 (2014$)            <1%.
Residential Furnace 80 FR 13120 (March 12, 2015) [dagger]..                14                 1            2021             55.0 (2013$)            <1%.
Direct Heating Equipment and Residential Water Heaters 75                  39                 1            2015             17.5 (2009$)           4.9%.
 FR 20112 (April 16, 2010) [dagger][dagger]................
Residential Central Air Conditioners and Heat Pumps 76 FR                  39                 4            2015             44.0 (2009$)           0.1%.
 37408 (June 27, 2011) [dagger][dagger]....................

[[Page 5727]]

 
External Power Supplies 79 FR 7846 (February 10, 2014)                    243                 1            2016             43.4 (2012$)           2.3%.
 [dagger][dagger]..........................................
Walk-in Cooler and Walk-in Freezer Components 79 FR 32049                  63                 1            2017             33.6 (2012$)           2.7%.
 (June 3, 2014) [dagger][dagger]...........................
--------------------------------------------------------------------------------------------------------------------------------------------------------
* This column presents the total number of manufacturers identified in the energy conservation standard rule contributing to cumulative regulatory
  burden.
** This column presents the number of manufacturers producing dedicated-purpose pool pumps that are also listed as manufacturers in the energy
  conservation standard contributing to cumulative regulatory burden.
*** This column presents conversion costs as a percentage of cumulative revenue for the industry during the conversion period. The conversion period is
  the timeframe over which manufacturers must make conversion cost investments and lasts from the announcement year of the final rule to the standards
  year of the final rule. This period typically ranges from 3 to 5 years, depending on the energy conservation standard.
[dagger] The final rule for this energy conservation standard has not been published. The compliance date and analysis of conversion costs have not been
  finalized at this time. If a value is provided for total industry conversion expense, this value represents an estimate from the NOPR or SNOPR.
[dagger][dagger] Consistent with Chapter 12 of the TSD, DOE has assessed whether this rule will have significant impacts on manufacturers that are also
  subject to significant impacts from other EPCA rules with compliance dates within three years of this rule's compliance date. However, DOE recognizes
  that a manufacturer incurs costs during some period before a compliance date as it prepares to comply, such as by revising product designs and
  manufacturing processes, testing products, and preparing certifications. As such, to illustrate a broader set of rules that may also create additional
  burden on manufacturers, DOE has included another rule with compliance dates that fall within six years of the compliance date of this rule by
  expanding the timeframe of potential cumulative regulatory burden. Note that the inclusion of any given rule in this Table does not indicate that DOE
  considers the rule to contribute significantly to cumulative impact. DOE has chosen to broaden its list of rules in order to provide additional
  information about its rulemaking activities. DOE will continue to evaluate its approach to assessing cumulative regulatory burden for use in future
  rulemakings to ensure that it is effectively capturing the overlapping impacts of its regulations. DOE plans to seek public comment on the approaches
  it has used here (i.e., both the 3 and 6 year timeframes from the compliance date) in order to better understand at what point in the compliance cycle
  manufacturers most experience the effects of cumulative and overlapping burden from the regulation of multiple products.

    In addition to the Federal energy conservation standards listed in 
Table V-31, there are appliance standards in progress that do not yet 
have a proposed rule or final rule. The compliance date, manufacturer 
lists, and analysis of conversion costs are not available at this time. 
These appliance standards include pool heaters 80 FR 15922 (March 17, 
2015), circulator pumps 80 FR 51483, (August 25, 2015), central air 
conditioners, and commercial and industrial fans and blowers.
    During the working group negotiations manufacturers did not 
indicate that cumulative regulatory burden was a concern. In the DPPP 
Working Group meeting on April 19, 2016, DOE presented initial 
cumulative regulatory burden findings and provided interested parties 
the opportunity to comment. Interested parties did not identify any 
additional federal regulations. (Docket No. EERE-2015-BT-STD-0008-0079, 
April 19 DPPP Working Group Meeting, at p. 136) DOE identified one 
manufacturer that was affected by more federal regulations than other 
DPPP manufacturers.
    DOE discusses these and other requirements and includes the full 
details of the cumulative regulatory burden analysis in chapter 12 of 
the direct final rule TSD. DOE will continue to evaluate its approach 
to assessing cumulative regulatory burden for use in future rulemakings 
to ensure that it is effectively capturing the overlapping impacts of 
its regulations. DOE plans to seek public comment on the approaches it 
has used here (i.e., both the 3 and 6 year timeframes from the 
compliance date) in order to better understand at what point in the 
compliance cycle manufacturers most experience the effects of 
cumulative and overlapping burden from the regulation of multiple 
product classes.
3. National Impact Analysis
    This section presents DOE's estimates of the national energy 
savings and the NPV of consumer benefits that would result from each of 
the TSLs considered as potential amended standards.
a. Significance of Energy Savings
    To estimate the energy savings attributable to potential standards 
for dedicated-purpose pool pumps, DOE compared their energy consumption 
under the no-standards case to their anticipated energy consumption 
under each TSL. The savings are measured over the entire lifetime of 
equipment purchased in the 30-year period that begins in the year of 
anticipated compliance with amended standards (2021-2050). Table V-32 
presents DOE's projections of the national energy savings for each TSL 
considered for pool pumps. The savings were calculated using the 
approach described in section IV.H.2 of this document.

              Table V-32--Cumulative National Energy Savings for Pool Pumps; 30 Years of Shipments
                                                   [2021-2050]
----------------------------------------------------------------------------------------------------------------
                                                                Trial standard level
                                  ------------------------------------------------------------------------------
                                          1               2              3               4               5
----------------------------------------------------------------------------------------------------------------
                                                                       Quads
                                  ------------------------------------------------------------------------------
Primary energy...................            0.75             2.9           3.6              3.9             4.4
FFC energy.......................            0.79             3.0           3.8              4.1             4.6
----------------------------------------------------------------------------------------------------------------


[[Page 5728]]

    OMB Circular A-4 \133\ requires agencies to present analytical 
results, including separate schedules of the monetized benefits and 
costs that show the type and timing of benefits and costs. Circular A-4 
also directs agencies to consider the variability of key elements 
underlying the estimates of benefits and costs. For this rulemaking, 
DOE undertook a sensitivity analysis using nine, rather than 30, years 
of product shipments. The choice of a 9-year period is a proxy for the 
timeline in EPCA for the review of certain energy conservation 
standards and potential revision of and compliance with such revised 
standards.\134\ The review timeframe established in EPCA is generally 
not synchronized with the product lifetime, product manufacturing 
cycles, or other factors specific to dedicated-purpose pool pumps. 
Thus, such results are presented for informational purposes only and 
are not indicative of any change in DOE's analytical methodology. The 
NES sensitivity analysis results based on a 9-year analytical period 
are presented in Table V-33. The impacts are counted over the lifetime 
of pool pumps purchased in 2021-2029.
---------------------------------------------------------------------------

    \133\ U.S. Office of Management and Budget. Circular A-4: 
Regulatory Analysis. September 17, 2003. www.whitehouse.gov/omb/circulars_a004_a-4/.
    \134\ Section 325(m) of EPCA requires DOE to review its 
standards at least once every 6 years, and requires, for certain 
equipment, a 3-year period after any new standard is promulgated 
before compliance is required, except that in no case may any new 
standards be required within 6 years of the compliance date of the 
previous standards. While adding a 6-year review to the 3-year 
compliance period adds up to 9 years, DOE notes that it may 
undertake reviews at any time within the 6 year period and that the 
3-year compliance date may yield to the 6-year backstop. A 9-year 
analysis period may not be appropriate given the variability that 
occurs in the timing of standards reviews and the fact that for some 
equipment, the compliance period is 5 years rather than 3 years.

               Table V-33--Cumulative National Energy Savings for Pool Pumps; 9 Years of Shipments
                                                   [2021-2029]
----------------------------------------------------------------------------------------------------------------
                                                               Trial standard level
                                 -------------------------------------------------------------------------------
                                         1               2               3               4               5
----------------------------------------------------------------------------------------------------------------
                                                                       Quads
----------------------------------------------------------------------------------------------------------------
Primary energy..................            0.24            0.76            0.95             1.0             1.1
FFC energy......................            0.25            0.80             1.0             1.0             1.2
----------------------------------------------------------------------------------------------------------------

b. Net Present Value of Consumer Costs and Benefits
    DOE estimated the cumulative NPV of the total costs and savings for 
consumers that would result from the TSLs considered for pool pumps. In 
accordance with OMB's guidelines on regulatory analysis,\135\ DOE 
calculated NPV using both a 7-percent and a 3-percent real discount 
rate. Table V-34 shows the consumer NPV results with impacts counted 
over the lifetime of equipment purchased in 2021-2050.
---------------------------------------------------------------------------

    \135\ U.S. Office of Management and Budget. Circular A-4: 
Regulatory Analysis. September 17, 2003. www.whitehouse.gov/omb/circulars_a004_a-4/.

       Table V-34--Cumulative Net Present Value of Consumer Benefits for Pool Pumps; 30 Years of Shipments
                                                   [2021-2050]
----------------------------------------------------------------------------------------------------------------
                                                       Trial standard level (billion 2015$)
          Discount rate          -------------------------------------------------------------------------------
                                         1               2               3               4               5
----------------------------------------------------------------------------------------------------------------
3 percent.......................             5.1              17              24              21              25
7 percent.......................             2.5             8.1              11              10              12
----------------------------------------------------------------------------------------------------------------

    The NPV results based on the aforementioned 9-year analytical 
period are presented in Table V-35. The impacts are counted over the 
lifetime of equipment purchased in 2021-2029. As mentioned previously, 
such results are presented for informational purposes only and are not 
indicative of any change in DOE's analytical methodology or decision 
criteria.

       Table V-35--Cumulative Net Present Value of Consumer Benefits for Pool Pumps; 9 Years of Shipments
                                                   [2021-2029]
----------------------------------------------------------------------------------------------------------------
                                                       Trial standard level (billion 2015$)
          Discount rate          -------------------------------------------------------------------------------
                                         1               2               3               4               5
----------------------------------------------------------------------------------------------------------------
3 percent.......................             2.1             6.4             8.5             7.7             8.8
7 percent.......................             1.3             4.2             5.6             5.0             5.7
----------------------------------------------------------------------------------------------------------------

    The above results reflect the use of a default price trend to 
estimate the change in price for dedicated-purpose pool pumps over the 
analysis period (see section IV.F.1 of this document). DOE also 
conducted a sensitivity analysis that considered one scenario with a 
low price trend and one scenario with a high price trend. The results 
of

[[Page 5729]]

these alternative cases are presented in appendix 10C of the direct 
final rule TSD. In the high price case, the NPV of consumer benefits is 
lower than in the default case. In the low price case, the NPV of 
consumer benefits is higher than in the default case.
c. Indirect Impacts on Employment
    DOE expects that energy conservation standards for dedicated-
purpose pool pumps would reduce energy expenditures for consumers of 
those equipment, with the resulting net savings being redirected to 
other forms of economic activity. These expected shifts in spending and 
economic activity could affect the demand for labor. As described in 
section IV.N of this document, DOE used an input/output model of the 
U.S. economy to estimate indirect employment impacts of the TSLs that 
DOE considered. There are uncertainties involved in projecting 
employment impacts, especially changes in the later years of the 
analysis. Therefore, DOE generated results for near-term timeframes 
(2021-2026), where these uncertainties are reduced.
    The results suggest that the adopted standards would be likely to 
have a negligible impact on the net demand for labor in the economy. 
The net change in jobs is so small that it would be imperceptible in 
national labor statistics and might be offset by other, unanticipated 
effects on employment. Chapter 16 of the direct final rule TSD presents 
detailed results regarding anticipated indirect employment impacts.
4. Impact on Utility or Performance of Equipment
    As discussed in section IV.B.2 of this direct final rule, DOE has 
concluded that the standards adopted in this direct final rule would 
not lessen the utility or performance of the pool pumps under 
consideration in this rulemaking. Manufacturers of these equipment 
currently offer units that meet or exceed the adopted standards.
5. Impact of Any Lessening of Competition
    EPCA directs DOE to consider the impact of any lessening of 
competition, as determined in writing by the Attorney General, that is 
likely to result from a proposed standard. (42 U.S.C. 
6313(a)(6)(B)(ii)(V)) Specifically, it instructs DOE to consider the 
impact of any lessening of competition, as determined in writing by the 
Attorney General, that is likely to result from the imposition of the 
standard. DOE is simultaneously publishing a NOPR containing proposed 
energy conservation standards identical to those set forth in this 
direct final rule and has transmitted a copy of the rule and the 
accompanying TSD to the Attorney General, requesting that the DOJ 
provide its determination on this issue. DOE will consider DOJ's 
comments on the direct final rule in determining whether to proceed 
with finalizing its standards. DOE will also publish and respond to the 
DOJ's comments in the Federal Register in a separate document.
6. Need of the Nation To Conserve Energy
    Enhanced energy efficiency, where economically justified, improves 
the Nation's energy security, strengthens the economy, and reduces the 
environmental impacts (costs) of energy production. Reduced electricity 
demand due to energy conservation standards is also likely to reduce 
the cost of maintaining the reliability of the electricity system, 
particularly during peak-load periods. As a measure of this reduced 
demand, chapter 15 in the direct final rule TSD presents the estimated 
reduction in generating capacity, relative to the no-new-standards 
case, for the TSLs that DOE considered in this rulemaking.
    Energy conservation resulting from potential energy conservation 
standards for dedicated-purpose pool pumps is expected to yield 
environmental benefits in the form of reduced emissions of certain air 
pollutants and greenhouse gases. Table V-36 provides DOE's estimate of 
cumulative emissions reductions expected to result from the TSLs 
considered in this rulemaking. The emissions were calculated using the 
multipliers discussed in section IV.K. DOE reports annual emissions 
reductions for each TSL in chapter 13 of the direct final rule TSD.

                 Table V-36--Cumulative Emissions Reduction for Pool Pumps Shipped in 2021-2050
----------------------------------------------------------------------------------------------------------------
                                                               Trial standard level
                                 -------------------------------------------------------------------------------
                                         1               2               3               4               5
----------------------------------------------------------------------------------------------------------------
                                             Power Sector Emissions
----------------------------------------------------------------------------------------------------------------
CO2 (million metric tons).......              40             152             192             205             233
SO2 (thousand tons).............              30             115             145             155             176
NOX (thousand tons).............              22              82             103             110             125
Hg (tons).......................            0.10            0.39            0.50            0.53            0.60
CH4 (thousand tons).............             4.2              16              20              22              25
N2O (thousand tons).............            0.61             2.3             2.9             3.1             3.5
----------------------------------------------------------------------------------------------------------------
                                               Upstream Emissions
----------------------------------------------------------------------------------------------------------------
CO2 (million metric tons).......             2.2             8.3              11              11              13
SO2 (thousand tons).............            0.26            0.99             1.2             1.3             1.5
NOX (thousand tons).............              32             122             154             165             188
Hg (tons).......................            0.00            0.00            0.00            0.00            0.00
CH4 (thousand tons).............             196             749             948           1,013           1,155
N2O (thousand tons).............            0.01            0.06            0.07            0.07            0.08
----------------------------------------------------------------------------------------------------------------
                                               Total FFC Emissions
----------------------------------------------------------------------------------------------------------------
CO2 (million metric tons).......              42             160             202             216             246
SO2 (thousand tons).............              31             116             147             156             178
NOX (thousand tons).............              53             203             257             275             313
Hg (tons).......................            0.10            0.39            0.50            0.53            0.60
CH4 (thousand tons).............             200             765             968           1,035           1,179

[[Page 5730]]

 
N2O (thousand tons).............            0.62             2.3             3.0             3.2             3.6
----------------------------------------------------------------------------------------------------------------

    As part of the analysis for this rule, DOE estimated monetary 
benefits likely to result from the reduced emissions of CO2 
that DOE estimated for each of the considered TSLs for dedicated-
purpose pool pumps. As discussed in section IV.L of this document, DOE 
used the most recent values for the SC-CO2 developed by the 
interagency working group. The four sets of SC-CO2 values 
correspond to the average values from distributions that use a 5-
percent discount rate, a 3-percent discount rate, and a 2.5-percent 
discount rate, and the 95th-percentile values from a distribution that 
uses a 3-percent discount rate. The actual SC-CO2 values 
used for emissions in each year are presented in appendix 14A of the 
direct final rule TSD.
    Table V-37 presents the global value of the CO2 
emissions reduction at each TSL. DOE calculated domestic values as a 
range from 7 percent to 23 percent of the global values; these results 
are presented in chapter 14 of the direct final rule TSD. Table V-38 
presents the annualized values for CO2 emissions reduction 
at each TSL.

      Table V-37--Estimates of Present Value of CO2 Emissions Reduction for Pool Pumps Shipped in 2021-2050
----------------------------------------------------------------------------------------------------------------
                                                                           SCC case
                                             -------------------------------------------------------------------
                     TSL                                                                           3% Discount
                                                5% Discount      3% Discount     2.5% Discount      rate, 95th
                                               rate, average    rate, average    rate, average      percentile
----------------------------------------------------------------------------------------------------------------
                                                                         Billion 2015$
----------------------------------------------------------------------------------------------------------------
                                               Total FFC Emissions
----------------------------------------------------------------------------------------------------------------
1...........................................              327            1,442            2,269            4,388
2...........................................            1,207            5,385            8,496           16,402
3...........................................            1,524            6,804           10,734           20,724
4...........................................            1,624            7,256           11,450           22,104
5...........................................            1,841            8,242           13,011           25,113
----------------------------------------------------------------------------------------------------------------


           Table V-38--Annualized Value of CO2 Emissions Reduction for Pool Pumps Shipped in 2021-2050
----------------------------------------------------------------------------------------------------------------
                                                                           SCC case
                                             -------------------------------------------------------------------
                     TSL                                                                           3% Discount
                                                5% Discount      3% Discount     2.5% Discount      rate, 95th
                                               rate, average    rate, average    rate, average      percentile
----------------------------------------------------------------------------------------------------------------
                                                                         Million 2015$
----------------------------------------------------------------------------------------------------------------
                                               Total FFC Emissions
----------------------------------------------------------------------------------------------------------------
1...........................................               26               83              120              252
2...........................................               95              309              448              942
3...........................................              121              391              566            1,190
4...........................................              128              417              604            1,269
5...........................................              146              473              686            1,442
----------------------------------------------------------------------------------------------------------------

    As discussed in section IV.L.2, DOE estimated monetary benefits 
likely to result from the reduced emissions of methane and 
N2O that DOE estimated for each of the considered TSLs for 
dedicated-purpose pool pumps. DOE used the recent values for the SC-
CH4 and SC-N2O developed by the interagency 
working group. Table V-39 presents the value of the CH4 
emissions reduction at each TSL, and Table V-40 presents the value of 
the N2O emissions reduction at each TSL. The annualized 
values for CH4 and N2O emissions reductions at 
each TSL are presented in Table V-40 and Table V-42, respectively.

[[Page 5731]]



          Table V-39--Present Value of Methane Emissions Reduction for Pool Pumps Shipped in 2021-2050
----------------------------------------------------------------------------------------------------------------
                                                                          SC-CH4 case
                                             -------------------------------------------------------------------
                     TSL                                                                           3% Discount
                                                5% Discount      3% Discount     2.5% Discount      rate, 95th
                                               rate, average    rate, average    rate, average      percentile
----------------------------------------------------------------------------------------------------------------
                                                                         Billion 2015$
                                             -------------------------------------------------------------------
1...........................................               69              206              289              549
2...........................................              256              782            1,100            2,082
3...........................................              324              989            1,392            2,632
4...........................................              346            1,057            1,487            2,812
5...........................................              393            1,203            1,694            3,202
----------------------------------------------------------------------------------------------------------------


         Table V-40--Annualized Value of Methane Emissions Reduction for Pool Pumps Shipped in 2021-2050
----------------------------------------------------------------------------------------------------------------
                                                                          SC-CH4 case
                                             -------------------------------------------------------------------
                     TSL                                                                           3% Discount
                                                5% Discount      3% Discount     2.5% Discount      rate, 95th
                                               rate, average    rate, average    rate, average      percentile
----------------------------------------------------------------------------------------------------------------
                                                                         Million 2015$
                                             -------------------------------------------------------------------
1...........................................              5.4               12               15               32
2...........................................               20               45               58              120
3...........................................               26               57               73              151
4...........................................               27               61               78              161
5...........................................               31               69               89              184
----------------------------------------------------------------------------------------------------------------


       Table V-41--Present Value of Nitrous Oxide Emissions Reduction for Pool Pumps Shipped in 2021-2050
----------------------------------------------------------------------------------------------------------------
                                                                          SC-N2O case
                                             -------------------------------------------------------------------
                     TSL                                                                           3% Discount
                                                5% Discount      3% Discount     2.5% Discount      rate, 95th
                                               rate, average    rate, average    rate, average      percentile
----------------------------------------------------------------------------------------------------------------
                                                                         Billion 2015$
                                             -------------------------------------------------------------------
1...........................................              1.8              7.2               11               19
2...........................................              6.5               27               42               72
3...........................................              8.3               34               54               91
4...........................................              8.8               36               57               97
5...........................................               10               41               65              110
----------------------------------------------------------------------------------------------------------------


      Table V-42--Annualized Value of Nitrous Oxide Emissions Reduction for Pool Pumps Shipped in 2021-2050
----------------------------------------------------------------------------------------------------------------
                                                                          SC-N2O case
                                             -------------------------------------------------------------------
                     TSL                                                                           3% Discount
                                                5% Discount      3% Discount     2.5% Discount      rate, 95th
                                               rate, average    rate, average    rate, average      percentile
----------------------------------------------------------------------------------------------------------------
                                                                         Million 2015$
                                             -------------------------------------------------------------------
1...........................................             0.14             0.41             0.60              1.1
2...........................................             0.52              1.6              2.2              4.1
3...........................................             0.65              2.0              2.8              5.2
4...........................................             0.70              2.1              3.0              5.6
5...........................................             0.79              2.4              3.4              6.3
----------------------------------------------------------------------------------------------------------------

    DOE is well aware that scientific and economic knowledge about the 
contribution of CO2 and other GHG emissions to changes in 
the future global climate and the potential resulting damages to the 
world economy continues to evolve rapidly. Thus, any value placed on 
reduced GHG emissions in this rulemaking is subject to change. DOE, 
together with other Federal agencies, will continue to review various 
methodologies for estimating the monetary value of reductions in 
CO2 and other GHG emissions. This ongoing review will 
consider the comments on this subject that are part of the public 
record for this and other rulemakings, as well as other methodological 
assumptions and issues. Consistent with DOE's legal obligations, and 
taking into account the uncertainty involved with this particular 
issue, DOE has included in this rule the most recent values resulting 
from the interagency review

[[Page 5732]]

process. DOE notes, however, that the adopted standards would be 
economically justified, as defined under EPCA, even without inclusion 
of monetized benefits of reduced GHG emissions.
    DOE also estimated the monetary value of the economic benefits 
associated with NOX emissions reductions anticipated to 
result from the considered TSLs for dedicated-purpose pool pumps. The 
dollar-per-ton values that DOE used are discussed in section IV.L of 
this document. Table V-43 presents the present value for NOX 
emissions reduction for each TSL calculated using 7-percent and 3-
percent discount rates. This table presents results that use the low 
benefit-per-ton values, which reflect DOE's primary estimate. Results 
that reflect the range of NOX benefit-per-ton values are 
presented in Table V-45.

      Table V-43--Estimates of Present Value of NOX Emissions Reduction for Pool Pumps Shipped in 2021-2050
----------------------------------------------------------------------------------------------------------------
                              TSL                                   3% Discount rate         7% Discount rate
----------------------------------------------------------------------------------------------------------------
                                                                                  Billion 2015$
                                                               -------------------------------------------------
1.............................................................                      103                       47
2.............................................................                      378                      167
3.............................................................                      477                      210
4.............................................................                      508                      222
5.............................................................                      575                      250
----------------------------------------------------------------------------------------------------------------
Note: Results are based on the low benefit-per-ton values.

7. Other Factors
    The Secretary of Energy, in determining whether a standard is 
economically justified, may consider any other factors that the 
Secretary deems to be relevant. (42 U.S.C. 6295(o)(2)(B)(i)(VII)) and 
6316(a)) No other factors were considered in this analysis.
8. Summary of National Economic Impacts
    Table V-44 presents the NPV values that result from adding the 
estimates of the potential economic benefits resulting from reduced GHG 
and NOX emissions to the NPV of consumer savings calculated 
for each TSL considered in this rulemaking>

                               Table V-44--Consumer NPV Combined With Present Value of Benefits From Emissions Reductions
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                        Consumer NPV and low NOX values at 3% discount rate added with:
                                                     ---------------------------------------------------------------------------------------------------
                         TSL                           GHG 5% discount rate,    GHG 3% discount rate,   GHG 2.5% discount rate,   GHG 3% discount rate,
                                                            average case             average case             average case         95th percentile case
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                 Billion 2015$
                                                     ---------------------------------------------------------------------------------------------------
1...................................................                      5.6                      6.8                      7.7                       10
2...................................................                       19                       23                       27                       36
3...................................................                       26                       32                       36                       48
4...................................................                       24                       30                       35                       47
5...................................................                       28                       35                       41                       54
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                        Consumer NPV and low NOX values at 7% discount rate added with:
                                                     ---------------------------------------------------------------------------------------------------
TSL                                                                    GHG 5%                   GHG 3%                 GHG 2.5%                   GHG 3%
                                                               discount rate,           discount rate,           discount rate,           discount rate,
                                                                 average case             average case             average case     95th percentile case
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                 Billion 2015$
                                                     ---------------------------------------------------------------------------------------------------
1...................................................                      2.9                      4.2                      5.1                      7.5
2...................................................                      9.7                       14                       18                       27
3...................................................                       13                       19                       24                       35
4...................................................                       12                       19                       23                       35
5...................................................                       14                       22                       27                       41
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note: The GHG benefits include the estimated benefits for reductions in CO2, CH4, and N2O emissions using the four sets of SC-CO2, SC-CH4, and SC-N2O
  values developed by the interagency working group. See section IV.L.

    The national operating cost savings are domestic U.S. monetary 
savings that occur as a result of purchasing the covered equipment, and 
are measured for the lifetime of equipment shipped in 2021-2050. The 
benefits associated with reduced GHG emissions achieved as a result of 
the adopted standards are also calculated based on the lifetime of 
dedicated-purpose pool pumps shipped in 2021-2050. However, the 
CO2 reduction is a benefit that accrues globally because 
CO2 emissions have a very long residence time in the 
atmosphere, the SC-CO2 values for future emissions reflect 
climate-related impacts that continue through 2300.

C. Conclusion

    When considering new energy conservation standards, the standards

[[Page 5733]]

that DOE adopts for any type (or class) of covered equipment must be 
designed to achieve the maximum improvement in energy efficiency that 
the Secretary determines is technologically feasible and economically 
justified. (42 U.S.C. 6295(o)(2)(A) and 6316(a)) In determining whether 
a standard is economically justified, the Secretary must determine 
whether the benefits of the standard exceed its burdens by, to the 
greatest extent practicable, considering the seven statutory factors 
discussed previously. (42 U.S.C. 6295(o)(2)(B)(i) and 6316(a)) The new 
standard must also result in significant conservation of energy. (42 
U.S.C. 6295(o)(3)(B) and 6316(a))
    For this direct final rule, DOE considered the impacts of potential 
standards for pool pumps at each TSL, beginning with the maximum 
technologically feasible level, to determine whether that level was 
economically justified. Where the max-tech level was not justified, DOE 
then considered the next most efficient level and undertook the same 
evaluation until it reached the highest efficiency level that is both 
technologically feasible and economically justified, as defined under 
EPCA, and saves a significant amount of energy.
    To aid the reader, as DOE discusses the benefits and/or burdens of 
each TSL, tables in this section present a summary of the results of 
DOE's quantitative analysis for each TSL. In addition to the 
quantitative results presented in the tables, DOE also considers other 
burdens and benefits that affect economic justification. These include 
the impacts on identifiable subgroups of consumers who may be 
disproportionately affected by a national standard and impacts on 
employment.
1. Benefits and Burdens of TSLs Considered for Dedicated-Purpose Pool 
Pumps
    Table V-45 and Table V-46 summarize the quantitative impacts 
estimated for each TSL for pool pumps. The national impacts are 
measured over the lifetime of dedicated-purpose pool pumps purchased in 
the 30-year period that begins in the anticipated year of compliance 
with new standards (2021-2050). The energy savings, emissions 
reductions, and value of emissions reductions refer to full-fuel-cycle 
results. The efficiency levels contained in each TSL are described in 
section V.A of this direct final rule.

                                     Table V-45--Summary of Analytical Results for Pool Pumps TSLs: National Impacts
--------------------------------------------------------------------------------------------------------------------------------------------------------
           Category                      TSL 1                    TSL 2                    TSL 3                   TSL 4                   TSL 5
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                     Cumulative FFC National Energy Savings (quads)
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                0.79...................  3.0....................  3.8...................  4.1...................  4.6.
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                   NPV of Consumer Costs and Benefits (billion 2015$)
--------------------------------------------------------------------------------------------------------------------------------------------------------
3% discount rate..............  5.1....................  17.....................  24....................  21....................  25.
7% discount rate..............  2.5....................  8.1....................  11....................  10....................  12.
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                           Cumulative FFC Emissions Reduction
--------------------------------------------------------------------------------------------------------------------------------------------------------
CO2 (million metric tons).....  42.....................  160....................  202...................  216...................  246.
SO2 (thousand tons)...........  31.....................  116....................  147...................  156...................  178.
NOX (thousand tons)...........  53.....................  203....................  257...................  275...................  313.
Hg (tons).....................  0.10...................  0.39...................  0.50..................  0.53..................  0.60.
CH4 (thousand tons)...........  200....................  765....................  968...................  1,035.................  1,179.
N2O (thousand tons)...........  0.62...................  2.3....................  3.0...................  3.2...................  3.6.
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                              Value of Emissions Reduction
--------------------------------------------------------------------------------------------------------------------------------------------------------
CO2 (billion 2015$) *.........  0.327 to 4.388.........  1.207 to 16.402........  1.524 to 20.724.......  1.624 to 22.104.......  1.841 to 25.113.
CH4 (billion 2015$)...........  0.069 to 0.549.........  0.256 to 2.082.........  0.324 to 2.632........  0.346 to 2.812........  0.393 to 3.202.
N2O (billion 2015$)...........  0.002 to 0.019.........  0.007 to 0.072.........  0.008 to 0.091........  0.009 to 0.097........  0.010 to 0.110.
NOX--3% discount rate (billion  0.103 to 0.231.........  0.378 to 0.851.........  0.477 to 1.075........  0.508 to 1.144........  0.575 to 1.297.
 2015$).
NOX--7% discount rate (billion  0.047 to 0.106.........  0.167 to 0.377.........  0.210 to 0.475........  0.222 to 0.503........  0.25 to 0.566.
 2015$).
--------------------------------------------------------------------------------------------------------------------------------------------------------
Parentheses indicate negative (-) values.
* Range of the economic value of CO2 reductions is based on estimates of the global benefit of reduced CO2 emissions.


        Table V-46--Summary of Analytical Results for Pool Pumps TSLs: Manufacturer and Consumer Impacts
----------------------------------------------------------------------------------------------------------------
            Category                  TSL 1 *         TSL 2 *         TSL 3 *         TSL 4 *         TSL 5 *
----------------------------------------------------------------------------------------------------------------
                                              Manufacturer Impacts
----------------------------------------------------------------------------------------------------------------
Industry NPV (million 2015$) (No-    201.0-210.9     178.8-200.2     166.5-219.8     126.2-195.9      36.8-110.5
 standards case INPV = $212.8)..
Industry NPV (% change).........     (5.5)-(0.9)    (16.0)-(5.9)      (21.8)-3.3    (40.7)-(7.9)   (82.7)-(48.1)
----------------------------------------------------------------------------------------------------------------
                                      Consumer Average LCC Savings (2015$)
----------------------------------------------------------------------------------------------------------------
Standard-Size Self-Priming Pool              669           1,779           2,140           2,140           2,085
 Filter Pump....................
Small-Size Self-Priming Pool                 295             322             295             360             414
 Filter Pump....................
Standard-Size Non-Self-Priming               191              35             191              10              93
 Pool Filter Pump...............
Extra-Small Non-Self-Priming                  36              36              36              10              10
 Pool Filter Pump...............
Waterfall Pump..................             (3)             (3)             n/a            (20)              13
Pressure Cleaner Booster Pump...             111             111             111           (372)           (313)
Integral Cartridge Filter Pump..             n/a             n/a             128             n/a             n/a

[[Page 5734]]

 
Integral Sand Filter Pump.......             n/a             n/a              73             n/a             n/a
----------------------------------------------------------------------------------------------------------------
                                           Consumer Simple PBP (years)
----------------------------------------------------------------------------------------------------------------
Standard-Size Self-Priming Pool              0.6             0.7             0.7             0.7             0.6
 Filter Pump....................
Small-Size Self-Priming Pool                 0.8             2.0             0.8             2.1             1.9
 Filter Pump....................
Standard-Size Non-Self-Priming               0.2             2.3             0.2             2.3             2.1
 Pool Filter Pump...............
Extra-Small Non-Self-Priming                 0.9             0.9             0.9             1.6             1.6
 Pool Filter Pump...............
Waterfall Pumps.................             4.5             4.5             n/a             5.4             3.7
Pressure Cleaner Booster Pumps..             0.6             0.6             0.6             6.0             5.1
Integral Cartridge Filter Pump..             n/a             n/a             0.4             n/a             n/a
Integral Sand Filter Pump.......             n/a             n/a             0.5             n/a             n/a
----------------------------------------------------------------------------------------------------------------
                               Percent of Consumers That Experience a Net Cost (%)
----------------------------------------------------------------------------------------------------------------
Standard-Size Self-Priming Pool                1               5              10              10               8
 Filter Pump....................
Small-Size Self-Priming Pool                   4              27               4              29              26
 Filter Pump....................
Standard-Size Non-Self-Priming                 0              58               0              51              47
 Pool Filter Pump...............
Extra-Small Non-Self-Priming                   4               4               4              39              39
 Pool Filter Pump...............
Waterfall Pumps.................              50              50             n/a              70              55
Pressure Cleaner Booster Pumps..               0               0               0              69              68
Integral Cartridge Filter Pump..             n/a             n/a               3             n/a             n/a
Integral Sand Filter Pump.......             n/a             n/a               3             n/a             n/a
----------------------------------------------------------------------------------------------------------------
* Parentheses indicate negative (-) values.

    DOE first considered TSL 5, which represents the max-tech 
efficiency levels. TSL 5 would save an estimated 4.6 quads of energy, 
an amount DOE considers significant. Under TSL 5, the NPV of consumer 
benefit would be $12 billion using a discount rate of 7 percent, and 
$25 billion using a discount rate of 3 percent.
    The cumulative emissions reductions at TSL 5 are 246 Mt of 
CO2; 178 thousand tons of SO2; 313 thousand tons 
of NOX; 0.60 tons of Hg; 1,179 thousand tons of 
CH4; and 3.6 thousand tons of N2O. The estimated 
monetary value of the GHG emissions reduction at TSL 5 ranges from $1.8 
billion to $25 billion for CO2, from $393 million to 3,202 
million for CH4, and from $10 million to $110 million for 
N2O. The estimated monetary value of the NOX 
emissions reduction at TSL 5 is $250 million using a 7-percent discount 
rate and $575 million using a 3-percent discount rate.
    At TSL 5, the average LCC impact is a savings that ranges from $10 
for extra-small non-self-priming pumps, to $2,085 for standard-size 
self-priming pump, except for pressure cleaner booster pumps, which 
have a savings of negative $313. The simple payback period ranges from 
0.6 years for standard-size self-priming pumps to 5.1 years for 
pressure cleaner booster pumps. The fraction of consumers experiencing 
a net LCC cost ranges from eight percent for standard-size self-priming 
pumps to 68 percent for pressure cleaner booster pumps.
    At TSL 5, the projected change in INPV ranges from a decrease of 
$176.0 million to a decrease of $102.3 million, which correspond to 
decreases of 82.7 percent and 48.1 percent, respectively. DOE estimates 
that industry must invest $199.5 million to comply with standards set 
at TSL 5. Manufacturers would need to redesign a significant portion of 
the equipment they offer, including hydraulic redesigns to convert the 
vast majority of their standard-size self-priming pool filter pumps.
    The Secretary concludes that at TSL 5 for dedicated-purpose pool 
pumps, the benefits of energy savings, positive NPV of consumer 
benefits, emission reductions, and the estimated monetary value of the 
emissions reductions would be outweighed by the economic burden on some 
consumers, and the significant impacts on manufacturers, including the 
large conversion costs and profit margin impacts that could result in a 
large reduction in INPV. Consequently, the Secretary has concluded that 
TSL 5 is not economically justified.
    DOE then considered TSL 4, which represents efficiency levels based 
on variable speed technology for most equipment classes. TSL 4 would 
save an estimated 4.1 quads of energy, an amount DOE considers 
significant. Under TSL 4, the NPV of consumer benefit would be $10 
billion using a discount rate of 7 percent, and $21 billion using a 
discount rate of 3 percent.
    The cumulative emissions reductions at TSL 4 are 216 Mt of 
CO2, 156 thousand tons of SO2, 275 thousand tons 
of NOX, 0.53 tons of Hg, 1,035 thousand tons of 
CH4, and 3.2 thousand tons of N2O. The estimated 
monetary value of the GHG emissions reduction at TSL 4 ranges from $1.6 
billion to $22 billion for CO2, from $346 million to $2,812 
million for CH4, and from $8.8 million to $97 million for 
N2O. The estimated monetary value of the NOX 
emissions reduction at TSL 4 is $222 million using a 7-percent discount 
rate and $508 million using a 3-percent discount rate.
    At TSL 4, the average LCC impact is a savings that ranges from $10 
for extra-small non-self-priming pumps, to $2,140 for standard-size 
self-priming pumps, except for pressure cleaner booster pumps, which 
have a savings of negative $372, and waterfall pumps, which have a 
savings of negative $20. The simple payback period ranges from 0.7 
years for standard-size self-priming pumps to 6.0 years for pressure 
cleaner booster pumps. The fraction of consumers experiencing a net LCC 
cost ranges from 10 percent for standard-size self-priming pumps to 70 
percent for waterfall pumps.
    At TSL 4, the projected change in INPV ranges from a decrease of 
$86.6 million to a decrease of $16.9 million, which correspond to 
decreases of 40.7 percent and 7.9 percent, respectively. DOE estimates 
that industry must invest $68.4 million to comply with standards set at 
TSL 4.
    The Secretary concludes that at TSL 4 for dedicated-purpose pool 
pumps,

[[Page 5735]]

the benefits of energy savings, positive NPV of consumer benefits, 
emission reductions, and the estimated monetary value of the emissions 
reductions, would be outweighed by the economic burden on some 
consumers, and the significant impacts on manufacturers, including the 
large conversion costs and profit margin impacts that could result in a 
large reduction in INPV. Consequently, the Secretary has concluded that 
TSL 4 is not economically justified.
    DOE then considered TSL 3, the recommended TSL, which would save an 
estimated 3.8 quads of energy, an amount DOE considers significant. 
Under TSL 3, the NPV of consumer benefit would be $11 billion using a 
discount rate of 7 percent, and $24 billion using a discount rate of 3 
percent.
    The cumulative emissions reductions at TSL 3 are 202 Mt of 
CO2; 147 thousand tons of SO2; 257 thousand tons 
of NOX, 0.50 tons of Hg, 968 thousand tons of 
CH4; and 3.0 thousand tons of N2O. The estimated 
monetary value of the GHG emissions reduction at TSL 3 ranges from $1.5 
billion to $21 billion for CO2, from $324 million to $2,632 
million for CH4, and from $8.3 million to $91 million for 
N2O. The estimated monetary value of the NOX 
emissions reduction at TSL 3 is $210 million using a 7-percent discount 
rate and $477 million using a 3-percent discount rate.
    At TSL 3, the average LCC impact is a savings that ranges from $36 
for extra-small non-self-priming pool filter pumps to $2,140 for 
standard-size self-priming pumps. The simple payback period ranges from 
0.2 years for standard-size non-self-priming pool filter pumps to 0.8 
years for extra-small non-self-priming pool filter pumps. The fraction 
of consumers experiencing a net LCC cost ranges from zero percent for 
standard-size non-self-priming pumps and pressure cleaner booster pumps 
to 10 percent for standard-size self-priming pumps.
    At TSL 3, the projected change in INPV ranges from a decrease of 
$46.3 million to an increase of $7.0 million, which represents a 
decrease of 21.8 percent to an increase of 3.3 percent, respectively. 
DOE estimates that industry must invest $35.6 million to comply with 
standards set at TSL 3.
    After considering the analysis and weighing the benefits and 
burdens, the Secretary has concluded that, at TSL 3 for dedicated-
purpose pool pumps, the benefits of energy savings, positive NPV of 
consumer benefits, emission reductions, the estimated monetary value of 
the emissions reductions, and positive average LCC savings, would 
outweigh the potential negative impacts on manufacturers. Accordingly, 
the Secretary has concluded that TSL 3 would offer the maximum 
improvement in efficiency that is technologically feasible and 
economically justified, as defined under EPCA, and would result in the 
significant conservation of energy.
    Therefore, based on the above considerations, as well as those 
discussed in section III.A, DOE adopts the energy conservation 
standards for pool pumps at TSL 3. The new performance-based energy 
conservation standards for pool pumps, which are expressed as kgal/kWh, 
are shown in Table V-47. The new prescriptive energy conservation 
standards for pool pumps are shown in Table V-48.

      Table V-47--Adopted Performance-Based Energy Conservation Standards for Dedicated-Purpose Pool Pumps
----------------------------------------------------------------------------------------------------------------
                                    Equipment class
---------------------------------------------------------------------------------------   Minimum allowable WEF
   Dedicated-purpose pool  pump                                                             score  [kgal/kwh]
             variety                      hhp applicability *            Motor phase
----------------------------------------------------------------------------------------------------------------
Self-priming pool filter pumps...  0.711 hp <=hhp <2.5 hp...........  Single..........  -2.30 * ln (hhp) + 6.59.
Self-priming pool filter pumps...  hhp <0.711 hp....................  Single..........  5.55, for hhp <=0.13 hp
                                                                                         1.30 * ln (hhp) + 2.90,
                                                                                         for hhp >0.13 hp.
Non-self-priming pool filter       hhp <2.5 hp......................  Any.............  4.60, for hhp <=0.13 hp
 pumps **.                                                                               0.85 * ln (hhp) + 2.87,
                                                                                         for hhp >0.13 hp.
Pressure cleaner booster pumps...  Any..............................  Any.............  0.42.
----------------------------------------------------------------------------------------------------------------
* All instances of hhp refer to rated hydraulic horsepower as determined in accordance with the DOE test
  procedure at 10 CFR 431.464 and applicable sampling plans.
** Because DOE selected the same efficiency level for both extra-small and standard-size non-self-priming pool
  filter pumps, the two equipment classes were ultimately merged into one.


         Table V-48--Adopted Prescriptive Energy Conservation Standards for Dedicated-Purpose Pool Pumps
----------------------------------------------------------------------------------------------------------------
                                    Equipment class
---------------------------------------------------------------------------------------
   Dedicated-purpose pool  pump                                                           Prescriptive standard
             variety                      hhp applicability *            Motor phase
----------------------------------------------------------------------------------------------------------------
Integral sand filter pool pump...  Any..............................  Any.............  Must be distributed in
                                                                                         commerce with a pool
                                                                                         pump timer that is
                                                                                         either integral to the
                                                                                         pump or a separate
                                                                                         component that is
                                                                                         shipped with the pump.
Integral cartridge filter pool     Any..............................  Any.............  Must be distributed in
 pump.                                                                                   commerce with a pool
                                                                                         pump timer that is
                                                                                         either integral to the
                                                                                         pump or a separate
                                                                                         component that is
                                                                                         shipped with the pump.
----------------------------------------------------------------------------------------------------------------

2. Annualized Benefits and Costs of the Adopted Standards
    The benefits and costs of the adopted standards can also be 
expressed in terms of annualized values. The annualized net benefit is 
(1) the annualized national economic value (expressed in 2015$) of the 
benefits from operating equipment that meet the adopted standards 
(consisting primarily of operating cost savings from using less 
energy), minus increases in product purchase costs, and (2) the 
annualized monetary value of the benefits of GHG and NOX 
emission reductions.
    Table V-49 shows the annualized values for dedicated-purpose pool 
pumps under TSL 3, expressed in

[[Page 5736]]

2015$. The results under the primary estimate are as follows.
    Using a 7-percent discount rate for benefits and costs other than 
GHG reduction (for which DOE used average social costs with a 3-percent 
discount rate),\136\ the estimated cost of the standards in this rule 
is $138 million per year in increased equipment costs, while the 
estimated annual benefits are $1.3 billion in reduced equipment 
operating costs, $449 million in GHG reductions, and $22 million in 
reduced NOX emissions. In this case, the net benefit amounts 
to $1.7 billion per year.
---------------------------------------------------------------------------

    \136\ DOE used average social costs with a 3-percent discount 
rate these values are considered as the ``central'' estimates by the 
interagency group.
---------------------------------------------------------------------------

    Using a 3-percent discount rate for all benefits and costs, the 
estimated cost of the adopted standards for dedicated-purpose pool 
pumps is $149 million per year in increased equipment costs, while the 
estimated annual benefits are $1.5 billion in reduced operating costs, 
$449 million in CO2 reductions, and $27 million in reduced 
NOX emissions. In this case, the net benefit amounts to $1.8 
billion per year.

                         Table V-49--Annualized Benefits and Costs of Adopted Standards (TSL 3) for Dedicated-Purpose Pool Pumps
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                  High-net- benefits
                                            Discount rate (%)              Primary estimate       Low-net- benefits estimate           estimate
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                      Million 2015$/year
                                   ---------------------------------------------------------------------------------------------------------------------
                                                                        Benefits
--------------------------------------------------------------------------------------------------------------------------------------------------------
Consumer Operating Cost Savings...  7...............................  1,340.....................  1,221.....................  1,467
                                    3...............................  1,516.....................  1,367.....................  1,678
GHG Reduction (using avg. social    5...............................  147.......................  129.......................  164
 costs at 5% discount rate) **.
GHG Reduction (using avg. social    3...............................  449.......................  392.......................  504
 costs at 3% discount rate) **.
GHG Reduction (using avg. social    2.5.............................  642.......................  560.......................  721.
 costs at 2.5% discount rate) **.
GHG Reduction (using 95th           3...............................  1,346.....................  1,175.....................  1,510.
 percentile social costs at 3%
 discount rate) **.
NOX Reduction [dagger]............  7%..............................  22........................  20........................  55.
                                    3%..............................  27........................  24........................  70.
Total Benefits [Dagger]...........  7% plus GHG range...............  1,509 to 2,708............  1,369 to 2,416............  1,686 to 3,032.
                                    7%..............................  1,811.....................  1,633.....................  2,026.
                                    3% plus GHG range...............  1,690 to 2,890............  1,520 to 2,566............  1,912 to 3,258.
                                    3%..............................  1,993.....................  1,783.....................  2,252.
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                         Costs *
--------------------------------------------------------------------------------------------------------------------------------------------------------
Consumer Incremental Equipment      7%..............................  138.......................  124.......................  151.
 Costs.
                                    3%..............................  149.......................  133.......................  164.
Manufacturer Conversion Costs       7%..............................  3.........................  3.........................  3.
 [dagger][dagger].
                                    3%..............................  2.........................  2.........................  2.
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                      Net Benefits
--------------------------------------------------------------------------------------------------------------------------------------------------------
Total [Dagger]....................  7% plus GHG range...............  1,371 to 2,570............  1,245 to 2,292............  1,535 to 2,881.
                                    7%..............................  1,673.....................  1,509.....................  1,875.
                                    3% plus GHG range...............  1,542 to 2,741............  1,387 to 2,433............  1,748 to 3,094.
                                    3%..............................  1,844.....................  1,651.....................  2,088.
--------------------------------------------------------------------------------------------------------------------------------------------------------
* This table presents the annualized costs and benefits associated with pool pumps shipped in 2021-2050. These results include benefits to consumers
  which accrue after 2050 from the pool pumps purchased from 2021-2050. The incremental equipment costs include incremental equipment cost as well as
  installation costs. The costs account for the incremental variable and fixed costs incurred by manufacturers due to the adopted standards, some of
  which may be incurred in preparation for the rule. The Primary, Low Net Benefits, and High Net Benefits Estimates utilize projections of energy prices
  and real GDP from the AEO2016 No-CPP case, a Low Economic Growth case, and a High Economic Growth case, respectively. In addition, incremental product
  costs reflect the default price trend in the Primary Estimate, a high price trend in the Low Benefits Estimate, and a low price trend in the High
  Benefits Estimate. The methods used to derive projected price trends are explained in section IV.F.1. Note that the Benefits and Costs may not sum to
  the Net Benefits due to rounding.
** The interagency group selected four sets of SC-CO2 SC-CH4, and SC-N2O values for use in regulatory analyses. Three sets of values are based on the
  average social costs from the integrated assessment models, at discount rates of 5 percent, 3 percent, and 2.5 percent. The fourth set, which
  represents the 95th percentile of the social cost distributions calculated using a 3-percent discount rate, is included to represent higher-than-
  expected impacts from climate change further out in the tails of the social cost distributions. The social cost values are emission year specific. The
  GHG reduction benefits are global benefits due to actions that occur nationally. See section IV.L for more details.
[dagger] DOE estimated the monetized value of NOX emissions reductions associated with electricity savings using benefit per ton estimates from the
  Regulatory Impact Analysis for the Clean Power Plan Final Rule, published in August 2015 by EPA's Office of Air Quality Planning and Standards.
  (Available at www.epa.gov/cleanpowerplan/clean-power-plan-final-rule-regulatory-impact-analysis.) See section IV.L.3 for further discussion. For the
  Primary Estimate and Low Net Benefits Estimate, DOE used national benefit-per-ton estimates for NOX emitted from the Electric Generating Unit sector
  based on an estimate of premature mortality derived from the ACS study (Krewski et al. 2009). For the High Net Benefits Estimate, the benefit-per-ton
  estimates were based on the Six Cities study (Lepuele et al. 2011); these are nearly two-and-a-half times larger than those from the ACS study.

[[Page 5737]]

 
[Dagger] Total Benefits for both the 3-percent and 7-percent cases are presented using the average social costs with 3-percent discount rate. In the
  rows labeled ``7% plus GHG range'' and ``3% plus GHG range,'' the operating cost and NOX benefits are calculated using the labeled discount rate, and
  those values are added to the full range of social cost values.
[dagger][dagger] Manufacturers are estimated to incur $35.6 million in conversion costs between 2017 and 2020.

VI. Other Prescriptive Requirements

    As part of the DPPP Working Group's extended charter, the DPPP 
Working Group considered requirements for pumps distributed in commerce 
with freeze protections controls. (Docket No. EERE-2013-BT-NOC-0005, 
No. 71 at pp. 20-52) Freeze protection controls, as defined in the test 
procedure final rule, are controls that, at certain ambient 
temperature, turn on the dedicated-purpose pool pump to circulate water 
for a period of time to prevent the pool and water in plumbing from 
freezing. As the control schemes for freeze protection vary widely 
between manufacturers, the resultant energy consumption associated with 
such control can also vary depending on control settings and climate. 
To ensure freeze protection controls on dedicated-purpose pool pumps 
only operate when necessary and do not result in unnecessary energy 
use, the DPPP Working Group discussed two different approaches for 
regulating freeze protection controls: (1) Regulation by incorporating 
freeze protection into the WEF metric, and (2) regulation with a 
prescriptive standard. Several DPPP Working Group members commented 
that regulation by prescriptive standard would be the simplest 
approach, since it would not involve revision of the WEF metric that 
the DPPP Working Group previously recommended. The DPPP Working Group 
reached consensus that freeze protection should be regulated by 
prescriptive standard. (Docket No. EERE-2015-BT-STD-0008-0079, April 19 
DPPP Working Group Meeting, at pp. 148)
    The CA IOUs suggested that the prescriptive standard prescribe the 
default settings for trigger temperature, run time, and operation speed 
that would be pre-programmed into freeze-protection-enabled dedicated-
purpose pool pumps at the time of shipment. The CA IOUs commented that 
models with default settings of 42 degrees Fahrenheit, 12 hours of run 
time, and high-speed operation result in unnecessary energy use. The CA 
IOUs proposed that freeze-protection-enabled pumps either ship with 
freeze protection disabled or ship with default settings with maximums 
of 39 degrees Fahrenheit, 30 minutes of run time, and a half-speed 
operation. Hayward and Pentair commented that the suggested default 
settings were too restrictive and may cause end users to experience 
frozen piping. Pentair proposed default freeze protection settings with 
a trigger temperature of 40 degrees Fahrenheit and a run time of one 
hour. The DPPP Working Group agreed to these amended settings. (Docket 
No. EERE-2015-BT-STD-0008-0101, May 19 DPPP Working Group Meeting, at 
pp. 93-104)
    Ultimately, the DPPP Working Group recommended establishing 
prescriptive requirements for dedicated-purpose pool pumps that are 
distributed in commerce with freeze protection controls. Specifically, 
the DPPP Working Group made the following recommendation, which it 
purports to maintain end-user utility while also reducing energy 
consumption:
    All dedicated-purpose pool pumps distributed in commerce with 
freeze protection controls must be shipped either with freeze 
protection disabled, or with the following default, user-adjustable 
settings: (1) The default dry-bulb air temperature setting is no 
greater than 40 [deg]F; and (2) the default run time setting shall be 
no greater than 1 hour (before the temperature is rechecked); and (3) 
the default motor speed shall not be more than half of the maximum 
available speed. Id. (Docket No. EERE-2015-BT-STD-0008, No. 82, 
Recommendation #6A at p. 4). DOE agrees with the DPPP Working Group's 
reasoning, and given the considerations discussed in section III.A, DOE 
adopts the recommended prescriptive standard for dedicated-purpose pool 
pumps distributed in commerce with freeze protection controls.

VII. Procedural Issues and Regulatory Review

A. Review Under Executive Orders 12866 and 13563

    Section 1(b)(1) of Executive Order 12866, ``Regulatory Planning and 
Review,'' 58 FR 51735 (Oct. 4, 1993), requires each agency to identify 
the problem that it intends to address, including, where applicable, 
the failures of private markets or public institutions that warrant new 
agency action, as well as to assess the significance of that problem. 
The problems that the adopted standards for dedicated-purpose pool 
pumps are intended to address are as follows:
    (1) Insufficient information and the high costs of gathering and 
analyzing relevant information leads some consumers to miss 
opportunities to make cost-effective investments in energy efficiency.
    In some cases the benefits of more efficient equipment are not 
realized due to misaligned incentives between purchasers and users. An 
example of such a case is when the equipment purchase decision is made 
by a building contractor or building owner who does not pay the energy 
costs.
    There are external benefits resulting from improved energy 
efficiency of products and equipment that are not captured by the users 
of such equipment. These benefits include externalities related to 
public health, environmental protection and national energy security 
that are not reflected in energy prices, such as reduced emissions of 
air pollutants and greenhouse gases that impact human health and global 
warming. DOE attempts to qualify some of the external benefits through 
use of social cost of carbon values.
    The Administrator of the Office of Information and Regulatory 
Affairs (OIRA) in the OMB has determined that the regulatory action in 
this direct final rule is a significant regulatory action under section 
(3)(f) of Executive Order 12866. Accordingly, pursuant to section 
6(a)(3)(B) of the Order, DOE has provided to OIRA: (i) The text of the 
draft regulatory action, together with a reasonably detailed 
description of the need for the regulatory action and an explanation of 
how the regulatory action will meet that need; and (ii) an assessment 
of the potential costs and benefits of the regulatory action, including 
an explanation of the manner in which the regulatory action is 
consistent with a statutory mandate. DOE has included these documents 
in the rulemaking record.
    In addition, the Administrator of OIRA has determined that the 
regulatory action is an ``economically'' significant regulatory action 
under section (3)(f)(1) of Executive Order 12866. Accordingly, pursuant 
to section 6(a)(3)(C) of the Order, DOE has provided to OIRA an 
assessment, including the underlying analysis, of benefits and costs 
anticipated from the regulatory action, together with, to the extent 
feasible, a quantification of those costs; and an assessment, including 
the underlying analysis, of costs and benefits of potentially effective 
and reasonably feasible alternatives to the planned regulation, and an 
explanation why the planned regulatory action is preferable

[[Page 5738]]

to the identified potential alternatives. These assessments can be 
found in the direct final rule TSD.
    DOE also has reviewed this regulation pursuant to Executive Order 
13563, issued on January 18, 2011. 76 FR 3281, Jan. 21, 2011. E.O. 
13563 is supplemental to and explicitly reaffirms the principles, 
structures, and definitions governing regulatory review established in 
E.O. 12866. To the extent permitted by law, agencies are required by 
E.O. 13563 to (1) propose or adopt a regulation only upon a reasoned 
determination that its benefits justify its costs (recognizing that 
some benefits and costs are difficult to quantify); (2) tailor 
regulations to impose the least burden on society, consistent with 
obtaining regulatory objectives, taking into account, among other 
things, and to the extent practicable, the costs of cumulative 
regulations; (3) select, in choosing among alternative regulatory 
approaches, those approaches that maximize net benefits (including 
potential economic, environmental, public health and safety, and other 
advantages; distributive impacts; and equity); (4) to the extent 
feasible, specify performance objectives, rather than specifying the 
behavior or manner of compliance that regulated entities must adopt; 
and (5) identify and assess available alternatives to direct 
regulation, including providing economic incentives to encourage the 
desired behavior, such as user fees or marketable permits, or providing 
information upon which choices can be made by the public.
    DOE emphasizes as well that E.O. 13563 requires agencies to use the 
best available techniques to quantify anticipated present and future 
benefits and costs as accurately as possible. In its guidance, OIRA has 
emphasized that such techniques may include identifying changing future 
compliance costs that might result from technological innovation or 
anticipated behavioral changes. In response to this guidance, DOE will 
conduct a retrospective review of the seven EPCA statutory factors that 
DOE evaluated to determine that the energy conservation standards in 
this direct final rule were economically justified. (42 U.S.C. 
6295(o)(2)(B)(i)(I)(VII)) and 6316(a)). For example, DOE's review will 
seek to verify the projected manufacturer impacts following compliance 
with the rule by comparing the estimated product conversion costs and 
industry net present value to the actual costs. Other parts of the 
review will cover the estimated impacts on consumers by assessing the 
accuracy of the assumed pool pump operating hours in order to update, 
as necessary, the estimated consumer energy savings, lifecycle savings, 
and payback period estimates associated with this direct final rule. 
DOE's review will investigate any potential utility or consumer welfare 
impacts that may not have been quantified in the engineering cost 
analysis. DOE's research will cover publicly available information, but 
will also consist of a survey of manufacturers and pool owners to 
assess the agency's assumptions. DOE will conduct this retrospective 
review of this direct final rulemaking prior to issuing any future 
revised energy efficiency standards for this product category.
    For the reasons stated in the preamble, this direct final rule is 
consistent with these principles, including the requirement that, to 
the extent permitted by law, benefits justify costs.

B. Review Under the Regulatory Flexibility Act

    The Regulatory Flexibility Act (5 U.S.C. 601 et seq.) requires 
preparation of an initial regulatory flexibility analysis (IRFA) and a 
final regulatory flexibility analysis (FRFA) 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. As required by Executive 
Order 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 impacts of 
its rules on small entities are properly considered during the 
rulemaking process. 68 FR 7990. DOE has made its procedures and 
policies available on the Office of the General Counsel's Web site 
(http://energy.gov/gc/office-general-counsel). DOE has prepared the 
following IRFA for the equipment that are the subject of this 
rulemaking.
1. Description of Reasons Why Action Is Being Considered
    Currently, no Federal energy conservation standards exist for 
dedicated-purpose pool pumps. DOE excluded this category of pumps from 
its recent consensus-based energy conservation standard final rule for 
general pumps. 81 FR 4368 (January 26, 2016). That final rule, which 
was the product of a pumps working group that had been created through 
the ASRAC, examined a variety of pump categories. While dedicated-
purpose pool pumps were one of the pump categories that were considered 
during the working group's discussions, the working group ultimately 
recommended that DOE initiate a separate rulemaking for dedicated-
purpose pool pumps. (Docket No. EERE-2013-BT-NOC-0039, No. 0092 at p. 
2)
2. Objectives of, and Legal Basis for, the Rule
    Title III, Part C \137\ of the Energy Policy and Conservation Act 
of 1975 (EPCA), (42 U.S.C. 6311-6317, as codified) established the 
Energy Conservation Program for Certain Industrial Equipment, a program 
covering certain industrial equipment.\138\ ``Pumps'' are listed as a 
type of covered industrial equipment. (42 U.S.C. 6311(1)(A))
---------------------------------------------------------------------------

    \137\ For editorial reasons, upon codification in the U.S. Code, 
Part C was re-designated Part A-1.
    \138\ All references to EPCA refer to the statute as amended 
through the Energy Efficiency Improvement Act of 2015, Public Law 
114-11 (April 30, 2015).
---------------------------------------------------------------------------

    While pumps are listed as a type of covered equipment, EPCA does 
not define the term ``pump.'' To address this, in January 2016, DOE 
published a test procedure final rule (January 2016 general pumps test 
procedure final rule) that established a definition for the term 
``pump.'' 81 FR 4086, 4147 (January 25, 2016). Dedicated-purpose pool 
pumps meet the definition of ``pump'' and are therefore a category of 
pump.
3. Description and Estimate of the Number of Small Entities Affected
a. Methodology for Estimating the Number of Small Entities
    For manufacturers of dedicated-purpose pool pumps, the Small 
Business Administration (SBA) has set a size threshold, which defines 
those entities classified as ``small businesses'' for the purposes of 
the statute. DOE used the SBA's small business size standards to 
determine whether any small entities would be subject to the 
requirements of this rule. The size standards are codified at 13 CFR 
part 121. The standards are listed by North American Industry 
Classification System (NAICS) code and industry description and are 
available at: www.sba.gov/sites/default/files/files/Size_Standards_Table.pdf.
    DPPP manufacturing is classified under NAICS 333911, pump and 
pumping equipment manufacturing. The SBA sets a threshold of 750 
employees or fewer for an entity to be considered a small business for 
this category.
    DOE reviewed the potential standard levels considered in this 
direct final rule under the provisions of the Regulatory

[[Page 5739]]

Flexibility Act and the procedures and policies published on February 
19, 2003. During its market survey, DOE used publicly available 
information, such as databases from the CEC, APSP, and ENERY STAR; 
individual company Web sites; and market research tools (e.g., Hoover's 
reports) to create a list of companies that manufacture dedicated-
purpose pool pumps covered by this direct final rule. During 
manufacturer interviews, DOE also asked stakeholders and industry 
representatives if they were aware of any additional small 
manufacturers. DOE then reviewed the list of companies manufacturing 
equipment covered by this direct final rule, used publicly available 
data sources (e.g., Hoovers,\139\ Cortera,\140\ LinkedIn,\141\ etc.), 
and direct contact with various companies to determine if they met the 
SBA's definition of a small business manufacturer. DOE screened out 
companies that do not offer equipment affected by this direct final 
rule, do not meet the definition of a ``small business,'' are foreign 
owned and operated, or do not manufacture dedicated-purpose pool pumps 
in the United States.
---------------------------------------------------------------------------

    \139\ www.hoovers.com.
    \140\ www.cortera.com.
    \141\ www.linkedin.com.
---------------------------------------------------------------------------

    DOE identified 21 manufacturers of dedicated-purpose pool pumps 
products affected by this rulemaking. Of these, DOE identified five as 
domestic small businesses.
b. Manufacturer Participation
    DOE contacted the five identified small businesses and invited them 
to take part in a manufacturer impact analysis interview. Of the small 
businesses contacted, DOE was able to discuss potential standards with 
one. DOE also obtained information about small businesses and potential 
impacts on small businesses while interviewing large manufacturers.
c. Dedicated-Purpose Pool Pump Industry Structure and Nature of 
Competition
    Self-priming pool filter pumps account for approximately 65 percent 
of manufacturer revenues in the dedicated-purpose pool pump industry. 
Three manufacturers have approximately 75 percent of all self-priming 
pool filter pump models in the market, which accounts for approximately 
90 percent of shipments. None of these three major manufacturers are 
small businesses. Besides the three major manufacturers, DOE identified 
twelve other manufacturers that make self-priming pool filter pumps, 
including all five small businesses.
    The same three manufacturers that control the majority of the self-
priming pool filter pump market also control the majority of the 
standard-size non-self-priming pool filter pump, pressure cleaner 
booster pump, and waterfall pump market. Manufacturer revenues for 
these equipment classes are substantially smaller than revenues for the 
self-priming pool filter pump equipment classes. One small business 
only makes standard-size self-priming pool filter pumps; three small 
businesses make small-size self-priming, standard-size self-priming 
pool filter pumps, and standard-size non-self-priming pool filter 
pumps; and one small business makes small-size self-priming, standard-
size self-priming, standard-size non-self-priming, and pressure cleaner 
booster pumps.
    The large majority of integral cartridge filter pool pumps, 
integral sand filter pool pumps, and extra-small non-self-priming pool 
filter pumps market is controlled by manufacturers that focus on 
seasonal pools, such inflatable or collapsible frame pools. These 
manufacturers typically design dedicated-purpose pool pumps and have 
them manufactured overseas. DOE did not identify any small businesses 
that manufacture integral cartridge-filter pool pumps and integral sand 
filter pool pumps, since this equipment is imported from China.
4. Description of Compliance Requirements
    As previously stated, DOE identified five small DPPP manufacturers. 
The small manufacturers make small-size self-priming, standard-size 
self-priming, standard-size non-self-priming, and pressure cleaner 
booster pumps. Accordingly, this analysis of small business impacts 
focuses exclusively on these equipment classes.
    To evaluate impacts facing manufacturers of dedicated-purpose pool 
pumps, DOE estimated both the capital conversion costs (i.e., 
investments in property, plant, and equipment) and product conversion 
costs (i.e., expenditures on R&D, testing, marketing, and other non-
depreciable expense) manufacturers would incur to bring their 
manufacturing facilities and product designs into compliance with 
adopted standards. As outlined in section IV.C and in chapter 5 of the 
direct final rule TSD, the design options analyzed to comply with the 
adopted energy conservation standards include changing the motor to 
either variable-speed for standard-size self-priming pool filter pumps, 
or a more efficient single-speed motor for small-size self-priming, 
non-self-priming, and pressure cleaner booster pumps. DOE estimated 
per-model and per-wet-end redesign costs to determine product and 
capital conversion costs.
    DOE used manufacturer specification sheets and product catalogs to 
estimate the number of models that each small business needs to 
redesign to comply with the adopted standards. DOE then multiplied this 
number by the per model redesign costs. This methodology is outlined in 
more detail in section IV.J.2.c.
    The largest burden small businesses face is to bring standard-size 
self-priming pool filter pumps into compliance with the adopted 
standard. All five small businesses manufacture standard-size self-
priming pool filter pumps and all of them make at least one compliant 
variable-speed pool filter pump. These small manufacturers could decide 
to ramp up the production of their already-compliant models and 
discontinue their non-compliant equipment. However, this could cause 
gaps in equipment offerings for manufacturers. Therefore, it is likely 
that manufacturers will redesign some non-compliant pumps to fill 
potential gaps in their equipment offerings. As described in section 
IV.J.2.c, DOE assumed that one variable-speed pool filter pump can 
replace multiple single- and two-speed pool filter pumps. Using this 
assumption DOE estimated that small businesses will incur $5.3 million 
in conversion costs to bring non-compliant standard-size self-priming 
pool filter pumps into compliance.
    Four small businesses make small-size self-priming pool filter 
pumps. The adopted efficiency level for this equipment class analyzes 
the incorporation of a more efficient single-speed motor. All four 
manufacturers make multiple single-speed models and some might need to 
be redesigned to maintain a complete product offering. DOE expected 
that two small businesses will not incur any conversion costs, and the 
other two small businesses will incur a combined total of $0.6 million 
in conversion costs to bring non-compliant small-size self-priming pool 
filter pumps into compliance.
    DOE identified four small businesses that make standard-size non-
self-priming pool filter pumps. The adopted efficiency level for this 
equipment class can be achieved through the incorporation of a more 
efficient single-speed motor. Two manufacturers offer all non-self-
priming pool filter pumps in both single- and two-speed configurations. 
DOE estimated that these manufacturers will not incur any

[[Page 5740]]

conversion costs, because they could discontinue non-compliant single-
speed dedicated-purpose pool pumps and still continue to have the same 
product offering with their two-speed dedicated-purpose pool pumps. The 
two other manufacturers have a greater number of single-speed than two-
speed non-self-priming pool filter pumps and DOE expected these 
manufacturers will redesign some dedicated-purpose pool pumps to 
maintain a complete product offering. In total, small manufacturers of 
non-self-priming pool filter pumps are estimated to redesign two 
standard-size non-self-priming pool filter pumps and incur $0.7 million 
in conversion costs to bring non-compliant equipment into compliance.
    Only one pressure cleaner booster pump model is offered in the 
market by small businesses. DOE did not have performance data for this 
pump; however, based on the no-standards case shipments distribution, 
87 percent of pressure cleaner booster shipments already meet or exceed 
the adopted standard. Therefore, DOE expected that this model does not 
have to be redesigned under the adopted standard.
    DOE estimates that the five small business will incur a total of 
$6.6 million in conversion costs to bring non-complaint standard-size 
self-priming, small-size self-priming, standard-size non-self-priming, 
and pressure cleaner booster pool pumps into compliance. Using publicly 
available data, DOE estimates the average annual revenue of the five 
small manufacturers to be $53.6 million.\142\ DOE expects small 
manufacturers will be able to spread their conversion costs over the 
four-and-a-half year and a half year compliance period between the 
expected publication of a final rule (2016) and the expected compliance 
year (2021). Given these assumptions, DOE estimates that conversion 
costs are 0.55 percent of total small business four-and-a-half year 
revenue. While the standards creates additional business risk for these 
small businesses, DOE's calculations show that the conversion costs 
associated with this increase in efficiency are moderate.
---------------------------------------------------------------------------

    \142\ This estimate is based on estimates from Hoovers 
(www.hoovers.com), Last accessed July 27, 2016.
---------------------------------------------------------------------------

5. Duplication, Overlap, and Conflict With Other Rules and Regulations
    DOE is not aware of any rules or regulations that duplicate, 
overlap, or conflict with the rule being considered today.
6. Significant Alternatives Considered and Steps Taken To Minimize 
Significant Economic Impacts on Small Entities
    The discussion in the previous section analyzes impacts on small 
businesses that would result from adoption of this direct final rule, 
represented by TSL 3. In reviewing alternatives to the adopted rule, 
DOE examined energy conservation standards set at lower efficiency 
levels. While TSL 1 and TSL 2 would reduce the impacts on small 
business manufacturers, it would come at the expense of a reduction in 
energy savings and NPV benefits to consumers. TSL 1 achieves 79 percent 
lower energy savings and 77 percent less NPV benefits discounted at 7 
percent to consumers compared to the energy savings and NPV benefits at 
TSL 3. TSL 2 achieves 21 percent lower energy savings and 26 percent 
less NPV benefits discounted at 7 percent to consumers compared to the 
energy savings and NPV benefits at TSL 3.
    Establishing standards at TSL 3 balances the benefits of the energy 
savings and benefits to consumers at TSL 3 with the potential more 
significant burdens placed on DPPP manufacturers, including small 
business manufacturers. Accordingly, DOE is choosing not to adopt one 
of the other TSLs considered in the analysis, or the other policy 
alternatives examined as part of the regulatory impact analysis, 
included in chapter 17 of the direct final rule TSD.
    Additional compliance flexibilities may be available through other 
means. EPCA provides that a manufacturer whose annual gross revenue 
from all of its operations does not exceed $8 million may apply for an 
exemption from all or part of the energy conservation standards for a 
period not longer than 24 months after the effective date of a final 
rule establishing the standards. Additionally, Section 504 of the 
Department of Energy Organization Act, 42 U.S.C. 7194, provides 
authority for the Secretary to adjust a rule issued under EPCA in order 
to prevent ``special hardship, inequity, or unfair distribution of 
burdens'' that may be imposed on that manufacturer as a result of such 
rule. Manufacturers should refer to 10 CFR part 430, subpart E, and 10 
CFR part 1003 for additional details.

C. Review Under the Paperwork Reduction Act

    Manufacturers of dedicated-purpose pool pumps must certify to DOE 
that their products comply with any applicable energy conservation 
standards. In certifying compliance, manufacturers must test their 
products according to the DOE test procedures for dedicated-purpose 
pool pumps, including any amendments adopted for those test procedures. 
DOE has established regulations for the certification and recordkeeping 
requirements for all covered consumer products and commercial 
equipment, including pumps. 76 FR 12422 (March 7, 2011); 80 FR 5099 
(Jan. 30, 2015). The collection-of-information requirement for the 
certification and recordkeeping is subject to review and approval by 
OMB under the Paperwork Reduction Act (PRA). This requirement has been 
approved by OMB under OMB control number 1910-1400. Public reporting 
burden for the certification is estimated to average 30 hours per 
response, including the time for reviewing instructions, searching 
existing data sources, gathering and maintaining the data needed, and 
completing and reviewing the collection of information.
    Notwithstanding any other provision of the law, no person is 
required to respond to, nor shall any person be subject to a penalty 
for failure to comply with, a collection of information subject to the 
requirements of the PRA, unless that collection of information displays 
a currently valid OMB Control Number.

D. Review Under the National Environmental Policy Act of 1969

    Pursuant to the National Environmental Policy Act (NEPA) of 1969, 
DOE has determined that this direct final rule fits within the category 
of actions included in Categorical Exclusion (CX) B5.1 and otherwise 
meets the requirements for application of a CX. (See 10 CFR part 1021, 
app. B, B5.1(b); 1021.410(b) and App. B, B(1)-(5).) The rule fits 
within this category of actions because it is a rulemaking that 
establishes energy conservation standards for consumer products or 
industrial equipment, and for which none of the exceptions identified 
in CX B5.1(b) apply. Therefore, DOE has made a CX determination for 
this rulemaking, and DOE does not need to prepare an Environmental 
Assessment or Environmental Impact Statement for this rule. DOE's CX 
determination for this rule is available at http://energy.gov/nepa/categorical-exclusion-cx-determinations-cx.

E. Review Under Executive Order 13132

    Executive Order 13132, ``Federalism,'' 64 FR 43255 (Aug. 10, 1999) 
imposes certain requirements on Federal agencies formulating and 
implementing policies or regulations that preempt

[[Page 5741]]

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 carefully assess 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 
the development of regulatory policies that have Federalism 
implications. On March 14, 2000, DOE published a statement of policy 
describing the intergovernmental consultation process it will follow in 
the development of such regulations. 65 FR 13735.
    DOE understands that publication of this direct final rule will 
preempt certain California Energy Commission regulations governing 
energy efficiency requirements for pool pumps. In accordance with 
Executive Order 13132, DOE has examined this rule and has determined 
that it would not have a substantial direct effect on any States, 
including California, on the relationship between the national 
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 products, including DPPP, that are the subject of 
this direct final rule. Additionally, DOE solicited and received 
comments from the California Energy Commission, which are reflected in 
this rulemaking. Finally, States, including California, can petition 
DOE for exemption from such preemption to the extent, and based on 
criteria, set forth in EPCA. (42 U.S.C. 6297) Therefore, no further 
action is required by Executive Order 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 Executive Order 12988, 
``Civil Justice Reform,'' imposes on Federal agencies the general duty 
to adhere to the following requirements: (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. 
61 FR 4729 (Feb. 7, 1996). Regarding the review required by section 
3(a), section 3(b) of Executive Order 12988 specifically requires that 
Executive agencies make every reasonable effort to ensure that the 
regulation (1) clearly specifies the preemptive effect, if any, (2) 
clearly specifies any effect on existing Federal law or regulation, (3) 
provides a clear legal standard for affected conduct while promoting 
simplification and burden reduction, (4) specifies the retroactive 
effect, if any, (5) adequately defines key terms, and (6) addresses 
other important issues affecting clarity and general draftsmanship 
under any guidelines issued by the Attorney General. Section 3(c) of 
Executive Order 12988 requires Executive agencies to review regulations 
in light of applicable standards in section 3(a) and section 3(b) to 
determine whether they are met or it is unreasonable to meet one or 
more of them. DOE has completed the required review and determined 
that, to the extent permitted by law, this direct final rule meets the 
relevant standards of Executive Order 12988.

G. Review Under the Unfunded Mandates Reform Act of 1995

    Title II of the Unfunded Mandates Reform Act of 1995 (UMRA) 
requires each Federal agency to assess the effects of Federal 
regulatory actions on State, local, and Tribal governments and the 
private sector. (2 U.S.C. 1531) For a regulatory action likely to 
result in a rule that may cause the expenditure by State, local, and 
Tribal governments, in the aggregate, or by the private sector of $100 
million or more in any one 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), (b)) The UMRA also 
requires a Federal agency to develop an effective process to permit 
timely input by elected officers of State, local, and Tribal 
governments on a ``significant intergovernmental mandate,'' and 
requires an agency plan for giving notice and opportunity for timely 
input to potentially affected small governments before establishing any 
requirements that might significantly or uniquely affect them. On March 
18, 1997, DOE published a statement of policy on its process for 
intergovernmental consultation under UMRA. 62 FR 12820. DOE's policy 
statement is also available at http://energy.gov/sites/prod/files/gcprod/documents/umra_97.pdf.
    DOE has concluded that this direct final rule may require 
expenditures of $100 million or more in any one year by the private 
sector. Such expenditures may include (1) investment in research and 
development and in capital expenditures by pool pump manufacturers in 
the years between the direct final rule and the compliance date for the 
new standards and (2) incremental additional expenditures by consumers 
to purchase higher-efficiency pool pumps, starting at the compliance 
date for the applicable standard.
    Section 202 of UMRA authorizes a Federal agency to respond to the 
content requirements of UMRA in any other statement or analysis that 
accompanies the direct final rule. (2 U.S.C. 1532(c)) The content 
requirements of section 202(b) of UMRA relevant to a private sector 
mandate substantially overlap the economic analysis requirements that 
apply under section 325(o) of EPCA and Executive Order 12866. The 
SUPPLEMENTARY INFORMATION section of this document and the TSD for this 
direct final rule respond to those requirements.
    Under section 205 of UMRA, the Department is obligated to identify 
and consider a reasonable number of regulatory alternatives before 
promulgating a rule for which a written statement under section 202 is 
required. (2 U.S.C. 1535(a)) DOE is required to select from those 
alternatives the most cost-effective and least burdensome alternative 
that achieves the objectives of the rule unless DOE publishes an 
explanation for doing otherwise, or the selection of such an 
alternative is inconsistent with law. As required by 42 U.S.C. 6295(m) 
and 6316(a), this direct final rule establishes energy conservation 
standards for pumps that are designed to achieve the maximum 
improvement in energy efficiency that DOE has determined to be both 
technologically feasible and economically justified, as required by 
6295(o)(2)(A), 6295(o)(3)(B) and 6316(a)). A full discussion of the 
alternatives considered by DOE is presented in chapter [17] of the TSD 
for this direct final rule.

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

    Section 654 of the Treasury and General Government Appropriations 
Act, 1999 (Pub. L. 105-277) requires Federal agencies to issue a Family 
Policymaking Assessment for any rule that may affect family well-being. 
This rule would 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 Executive Order 12630, ``Governmental Actions and 
Interference with Constitutionally Protected Property Rights,'' 53 FR 
8859 (March 18, 1988), DOE has determined that this rule

[[Page 5742]]

would 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, 
2001

    Section 515 of the Treasury and General Government Appropriations 
Act, 2001 (44 U.S.C. 3516, note) provides for Federal agencies to 
review most disseminations of information to the public under 
information quality guidelines established by each agency pursuant to 
general guidelines issued by OMB. 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 direct 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

    Executive Order 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 OIRA 
at OMB, a Statement of Energy Effects for any significant energy 
action. A ``significant energy action'' is defined as any action by an 
agency that promulgates or is expected to lead to promulgation of a 
direct final rule, and that (1) is a significant regulatory action 
under Executive Order 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 OIRA as a 
significant energy action. For any significant energy action, the 
agency must give a detailed statement of any adverse effects on energy 
supply, distribution, or use should the proposal be implemented, and of 
reasonable alternatives to the action and their expected benefits on 
energy supply, distribution, and use.
    DOE has concluded that this regulatory action, which sets forth 
energy conservation standards for pool pumps, is not a significant 
energy action because the standards are not likely to have a 
significant adverse effect on the supply, distribution, or use of 
energy, nor has it been designated as such by the Administrator at 
OIRA. Accordingly, DOE has not prepared a Statement of Energy Effects 
on this direct final rule.

L. Information Quality

    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. Under the Bulletin, the energy 
conservation standards rulemaking analyses are ``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.'' Id at FR 2667.
    In response to OMB's Bulletin, DOE conducted formal peer reviews of 
the energy conservation standards development process and the analyses 
that are typically used and prepared a report describing that peer 
review.\143\ Generation of this report involved a rigorous, formal, and 
documented evaluation using objective criteria and qualified and 
independent reviewers to make a judgment as to the technical/
scientific/business merit, the actual or anticipated results, and the 
productivity and management effectiveness of programs and/or projects. 
DOE has determined that the peer-reviewed analytical process continues 
to reflect current practice, and the Department followed that process 
for developing energy conservation standards in the case of the present 
rulemaking.
---------------------------------------------------------------------------

    \143\ The 2007 ``Energy Conservation Standards Rulemaking Peer 
Review Report'' is available at the following Web site: http://energy.gov/eere/buildings/downloads/energy-conservation-standards-rulemaking-peer-review-report-0.
---------------------------------------------------------------------------

M. 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).

VIII. Approval of the Office of the Secretary

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

List of Subjects in 10 CFR Part 431

    Administrative practice and procedure, Confidential business 
information, Energy conservation, Imports, Intergovernmental relations, 
Small businesses.

    Issued in Washington, DC, on December 23, 2016.
David J. Friedman,
Acting Assistant Secretary, Energy Efficiency and Renewable Energy.

    For the reasons set forth in the preamble, DOE amends part 431 of 
chapter II, subchapter D, of title 10 of the 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. Section 431.462 is amended by adding the definition for ``pool pump 
timer'' in alphabetical order to read as follows:


Sec.  431.462   Definitions.

* * * * *
    Pool pump timer means a pool pump control that automatically turns 
off a dedicated-purpose pool pump after a run-time of no longer than 10 
hours.
* * * * *

0
3. Section 431.465 is amended by adding paragraphs (e), (f), (g) and 
(h) to read as follows:


Sec.  431.465  Pumps energy conservation standards and their compliance 
dates.

* * * * *
    (e) For the purposes of paragraph (f) of this section, ``WEF'' 
means the weighted energy factor and ``hhp'' means the rated hydraulic 
horsepower, as determined in accordance with the test procedure in 
Sec.  431.464(b) and applicable sampling plans in Sec.  429.59 of this 
chapter.
    (f) Each dedicated-purpose pool pump that is not a submersible pump 
and is manufactured starting on July 19, 2021 must have a WEF rating 
that is not less than the value calculated from the following table:

[[Page 5743]]



--------------------------------------------------------------------------------------------------------------------------------------------------------
                                      Equipment class                                        Minimum allowable WEF score    Minimum allowable WEF score
-------------------------------------------------------------------------------------------           [kgal/kWh]                     [kgal/kWh]
                                                                                           -------------------------------------------------------------
  Dedicated-purpose pool pump variety                    hhp Applicability                           Motor phase
--------------------------------------------------------------------------------------------------------------------------------------------------------
Self-priming pool filter pumps........  0.711 hp <=hhp <2.5 hp............................  Single.......................  WEF = -2.30 * ln (hhp) +
                                                                                                                            6.59.
Self-priming pool filter pumps........  hhp <0.711 hp.....................................  Single.......................  WEF = 5.55, for hhp <=0.13 hp
                                                                                                                            -1.30 * ln (hhp) + 2.90, for
                                                                                                                            hhp >0.13 hp.
Non-self-priming pool filter pumps....  hhp <2.5 hp.......................................  Any..........................  WEF = 4.60, for hhp <=0.13 hp
                                                                                                                            -0.85 * ln (hhp) + 2.87, for
                                                                                                                            hhp >0.13 hp.
Pressure cleaner booster pumps........  Any...............................................  Any..........................  WEF = 0.42.
--------------------------------------------------------------------------------------------------------------------------------------------------------

    (g) Each integral cartridge filter pool pump and integral sand 
filter pool pump that is manufactured starting on July 19, 2021 must be 
distributed in commerce with a pool pump timer that is either integral 
to the pump or a separate component that is shipped with the pump.
    (h) For all dedicated-purpose pool pumps distributed in commerce 
with freeze protection controls, the pump must be shipped with freeze 
protection disabled or with the following default, user-adjustable 
settings:
    (1) The default dry-bulb air temperature setting is no greater than 
40 [deg]F;
    (2) The default run time setting shall be no greater than 1 hour 
(before the temperature is rechecked); and
    (3) The default motor speed shall not be more than \1/2\ of the 
maximum available speed.

[FR Doc. 2016-31666 Filed 1-17-17; 8:45 am]
 BILLING CODE 6450-01-P