[Federal Register Volume 82, Number 101 (Friday, May 26, 2017)]
[Rules and Regulations]
[Pages 24211-24214]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-10869]



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 Rules and Regulations
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  Federal Register / Vol. 82, No. 101 / Friday, May 26, 2017 / Rules 
and Regulations  

[[Page 24211]]



DEPARTMENT OF ENERGY

10 CFR Part 430

[EERE-2014-BT-STD-0048]
RIN 1904-AD37


Energy Conservation Program: Energy Conservation Standards for 
Residential Central Air Conditioners and Heat Pumps

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

ACTION: Confirmation of effective date and compliance date for direct 
final rule.

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

SUMMARY: On January 6, 2017, the U.S. Department of Energy (``DOE'') 
published in the Federal Register a direct final rule to establish new 
energy conservation standards for residential central air conditioners 
and heat pumps. DOE has determined that the comments received in 
response to that direct final rule do not provide a reasonable basis 
for withdrawing it. Therefore, DOE is providing notice confirming the 
adoption of the energy conservation standards established in that 
direct final rule and announces the effective dates of those standards.

DATES: The direct final rule for residential air conditioners and heat 
pumps published on January 6, 2017 (82 FR 1786) became effective on May 
8, 2017. Compliance with the residential air conditioners and heat 
pumps standards in the direct final rule will be required on January 1, 
2023.

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.
    The docket Web page can be found at https://www.regulations.gov/docket?D=EERE-2014-BT-STD-0048. The docket web page contains simple 
instructions on how to access all documents, including public comments, 
in the docket.
    For further information on how to review the docket, contact the 
Appliance and Equipment Standards Program staff at (202) 586-6636 or by 
email: [email protected].

FOR FURTHER INFORMATION CONTACT: 
    Mr. Antonio Bouza, 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) 586-4563. 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:

I. Authority

    As amended by the Energy Efficiency Improvement Act of 2015, Public 
Law 114-11 (April 30, 2015), the Energy Policy and Conservation Act 
(``EPCA'' or, in context, ``the Act''), Public Law 94-163 (42 U.S.C. 
6291-6309, as codified), authorizes DOE to issue a direct final rule 
establishing an energy conservation standard for a product 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 products, States, and efficiency advocates) as 
determined by the Secretary of Energy (``Secretary''). 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) or 42 U.S.C. 6313(a)(6)(B), as applicable. 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). 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 is received relating to the direct 
final rule, the Secretary must determine whether the comments or 
alternative recommendation may provide a reasonable basis for 
withdrawal under 42 U.S.C. 6295(o) or other applicable law.
    When making a determination whether to withdraw a direct final 
rule, DOE considers the substance, rather than the quantity, of 
comments. To this end, DOE weighs the substance of any adverse 
comment(s) received against the anticipated benefits of the consensus 
recommendations and the likelihood that further consideration of the 
comment(s) would change the results of the rulemaking. DOE notes that 
to the extent an adverse comment 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. If the 
Secretary makes such a determination, DOE must withdraw the direct 
final rule and proceed with the simultaneously published NOPR. DOE must 
publish in the Federal Register the reasons why the direct final rule 
was withdrawn.
    DOE determined that it did not receive any adverse comments 
providing a basis for withdrawal as described above for the direct 
final rule that is the subject of this document--residential central 
air conditioners (``CACs'') and heat pumps (``HPs''). As such, DOE did 
not withdraw the direct final rule and allowed it to go final on its 
effective date. Although not required under EPCA, DOE customarily 
publishes a summary of the comments received during the 110-day comment 
period and its responses to those comments.\1\ This document contains 
such a summary, as well as DOE's responses.
---------------------------------------------------------------------------

    \1\ See, e.g., Notice of effective date and compliance dates for 
direct final rule, 76 FR 67037 (Oct. 31, 2011).
---------------------------------------------------------------------------

II. Background

    During the rulemaking proceeding to consider amended energy 
conservation standards for CACs and HPs, DOE received a statement 
submitted by an Appliance Standards and Rulemaking Federal Advisory 
Committee

[[Page 24212]]

(``ASRAC'') that a consensus had been reached by a negotiated 
rulemaking working group for CACs and HPs (the ``the CAC/HP Working 
Group'' or, in context, the ``Working Group''). The CAC/HP Working 
Group consisted of 15 members, including one member from ASRAC and one 
DOE representative, with the balance comprising representatives of 
manufacturers of the covered products at issue, efficiency advocates, 
and utility representatives. The CAC/HP Working Group submitted to 
ASRAC a Term Sheet, that, in the commenters' view, would satisfy the 
EPCA requirements at 42 U.S.C. 6295(o), and ASRAC voted unanimously to 
adopt these consensus recommendations. (CAC/HP Term Sheet, Docket No. 
EERE-2014-BT-STD-0048, No. 0076)
    After careful consideration of the Term Sheet related to amended 
energy conservation standards for CACs and HPs, the Secretary has 
determined that the recommendations contained therein are compliant 
with 42 U.S.C. 6295(o), and were submitted by interested persons who 
are fairly representative of relevant points of view on this matter, as 
required by 42 U.S.C. 6295(p)(4)(A)(i) for the issuance of a direct 
final rule.
    DOE conducted separate test procedure rulemakings simultaneously 
with the energy conservation standard rulemaking to amend the DOE 
central air conditioners and heat pumps test procedure. As per the 
request of the CAC/HP Working Group, the analyses documented in this 
direct final rule are based on the DOE test procedure at the time of 
the 2015-2016 Negotiations. Efficiency levels selected on the basis of 
these analyses were then translated to efficiency levels based on the 
amended test procedure. This methodology was first advocated by 
Carrier/United Technologies Corporation (``UTC'') and adopted by 
stakeholders during the Negotiations. (ASRAC Public Meeting, No. 87 at 
p. 48) This methodology is also reflected in the CAC/HP Term Sheet. 
Thus, DOE notes that while amended standard levels presented in Table 
III-1 in this notice (and in the Table I-1 of the direct final rule) 
are in terms of the test procedure that was in place at the time of the 
CAC/HP Working Group Negotiations, the standard levels added to the 
regulatory text are in terms of the test procedure as amended.
    Ultimately, DOE found that the standard levels recommended in the 
Term Sheet would result in significant energy savings and are 
technologically feasible and economically justified. Table II-1 
documents the amended standards for central air conditioners and heat 
pumps based on the DOE test procedure at the time of the 2015-2016 
Negotiations. The amended standards correspond to the recommended trial 
standard level (``TSL'') and are expressed in terms of Seasonal Energy 
Efficiency Ratio (``SEER''), Energy Efficiency Ratio (``EER''), and 
Heating Seasonal Performance Factor (``HSPF''). The amended standards 
are the same as those recommended by the Working Group. These amended 
standards will apply to all central air conditioners and heat pumps 
listed in Table II-1 and manufactured in, or imported into, the United 
States starting on January 1, 2023. The amended standards listed in 
Table II-1 will result in less energy consumption for these products 
than the current standards, which remain in effect until January 1, 
2023.

 Table II-1--Amended Energy Conservation Standards for Residential Central Air Conditioners and Heat Pumps Based
                       on the DOE Test Procedure at the Time of the 2015-2016 Negotiations
                                                [Recommended TSL]
----------------------------------------------------------------------------------------------------------------
                                             National               Southeast *            Southwest **
          Product class          -------------------------------------------------------------------------------
                                       SEER            HSPF            SEER            SEER             EER
----------------------------------------------------------------------------------------------------------------
Split-System Air Conditioners                 14  ..............              15              15   *** 12.2/10.2
 with a Certified Cooling
 Capacity <45,000 Btu/h.........
Split-System Air Conditioners                 14  ..............            14.5            14.5   *** 11.7/10.2
 with a Certified Cooling
 Capacity >=45,000 Btu/h........
Split-System Heat Pumps.........              15             8.8  ..............  ..............  ..............
Single-Package Air Conditioners               14  ..............  ..............  ..............            11.0
 [dagger].......................
Single-Package Heat Pumps                     14             8.0  ..............  ..............  ..............
 [dagger].......................
Space-Constrained Air                         12  ..............  ..............  ..............  ..............
 Conditioners [dagger]..........
Space-Constrained Heat Pumps                  12             7.4  ..............  ..............  ..............
 [dagger].......................
Small-Duct High-Velocity Systems              12             7.2  ..............  ..............  ..............
 [dagger].......................
----------------------------------------------------------------------------------------------------------------
* Southeast includes: The states of Alabama, Arkansas, Delaware, Florida, Georgia, Hawaii, Kentucky, Louisiana,
  Maryland, Mississippi, North Carolina, Oklahoma, Puerto Rico, South Carolina, Tennessee, Texas, Virginia, the
  District of Columbia, and the U.S. territories.
** Southwest includes the states of Arizona, California, Nevada, and New Mexico.
*** The 10.2 EER amended energy conservation standard applies to split-system air conditioners with a seasonal
  energy efficiency ratio greater than or equal to 16.
[dagger] The energy conservation standards for single-package, small-duct high-velocity and space-constrained
  product classes remain unchanged from current levels.

III. Comments on the CAC/HP Direct Final Rule

    Of the 24 substantive comments received in response to the direct 
final rule, 20 were from interested parties that expressed support for 
the direct final rule and its outcome. (All comments are available for 
public viewing at https://www.regulations.gov/docket?D=EERE-2014-BT-STD-0048.) Among these commenters, eight manufacturers and one trade 
group all commented positively on finalizing the rule based on 
manufacturing certainty.
    Three consumer groups, three utility representatives, three State 
representatives, and six environmental advocacy groups all commented in 
support of the significant economic benefits to consumers and 
ratepayers that the direct final rule would provide. In particular, the 
three consumer groups stated that that withdrawing the rule would 
increase the cost to taxpayers in initiating further rulemaking 
activity. The consumer groups also pointed out that life-cycle cost 
savings published in the direct final rule are realized in every region 
of the country and that total cost of ownership is lower with the 
amended standard. The utility representatives, states, and 
environmental advocates agreed, observing that the lower standard in 
the northern climate would alleviate costs to those customers, while 
the EER requirement in the hot

[[Page 24213]]

southwest would reduce stress on the grid and other reliability 
problems with peak demand. The environmental advocates suggested that 
DOE had underestimated the benefits of the rule to consumers, due to 
the alignment of the refrigerant phase-outs.
    Other interested parties submitted comments that did not support 
the CAC/HP direct final rule. The following sections discuss these 
specific comments and DOE's determination that the comments do not 
provide a reasonable basis for withdrawal of the direct final rule.

A. Manufactured Housing

    DOE received a comment from a manufacturer that attended many of 
the Working Group meetings. The manufacturer stated in its comments 
that it supported the rule generally but that the Working Group and the 
direct final rule should have excluded manufactured housing air 
conditioners based on the niche nature of the product and the potential 
inability of these products to meet the adopted efficiency levels. In 
response, DOE notes that the Working Group discussed this issue in 
detail. In recognition of the unique installation characteristics of 
manufactured home products that impact efficiency, the Working Group 
agreed to amend the accompanying test procedure to the direct final 
rule to require a lower default fan power value for manufactured homes 
(406 W/1000 CFM) compared to more conventional products addressed by 
the direct final rule (i.e. split systems). This difference will enable 
manufacturers of these products to obtain more representative results 
under the modified test procedure by accounting for the unique 
characteristics of these systems--the net effect of which would be to 
mitigate the penalizing effect of the current procedure. DOE proposed 
the new, unique default fan power value for manufactured home products 
in a related August 2016 CAC/TP test procedure supplemental notice of 
proposed rulemaking and received comments in support of its approach 
from other manufacturers of manufactured housing air conditioners, 
leading it to finalize it in the January 2017 CAC/HP test procedure 
final rule. See 82 FR 1426 (Jan. 5, 2017). Thus, because the comment 
has already been accounted for in other rulemaking proceedings, DOE 
does not consider this comment to provide a basis for withdrawal.

B. Cost/Benefit Analysis

    Two think tanks and one individual generally commented that the 
costs (regulatory and consumer) published in the CAC/HP direct final 
rule were too high. In particular, one commenter suggested that the 
high conversion costs required from manufacturers could result in an 
INPV decline and manufacturers would move production outside the United 
States. Two other commenters noted that consumers could see price 
increases in central air conditioners due to higher installed costs; 
one commenter additionally noted that the percent of negatively 
impacted consumers did not justify the TSL levels published in the CAC/
HP direct final rule. Finally, one commenter stated that DOE did not 
meet the rebuttable presumption laid out in EPCA.
    In response, DOE notes that all of these issues were discussed in 
detail during the Working Group negotiations. Those discussions 
recognized that, although consumers in some regions would bear a higher 
net cost than consumers in other regions, the national average at the 
recommended TSL is cost-justified when examining the standard 
articulated in the direct final rule as a whole. DOE notes that EPCA 
does not require it to choose the standard level with the least 
consumer cost, or the least cost to manufacturers, but only to assess 
those, among other costs and benefits (using the 7 factors articulated 
at 42 U.S.C. 6295(o)) and determine whether the burdens outweigh the 
benefits. In this case, the recommended TSL met that standard, and 
DOE's analysis and conclusions would not change based on the comments 
received. Thus, DOE does not consider these comments to provide a basis 
to justify a withdrawal of this direct final rule under EPCA.

C. Consumer Groups as Interested Parties

    DOE received a comment from an individual who commented that 
consumers and those representing consumers' interests did not have 
input in the rulemaking process, and thus the Working Group Term Sheet 
was not a ``statement submitted jointly by interested persons that are 
fairly representative of relevant points of view.'' In response, DOE 
disagrees and believes that (1) consumers' interests were represented 
in the rulemaking process and; (2) that the Working Group Term Sheet 
was a consensus recommendation made by interested persons fairly 
representative of relevant points of view. Although consumer groups 
were not direct signatories to the Term Sheet, the ASRAC Committee 
approving the CAC/HP Working Group's recommendations included one 
member representing Consumers' Union. In addition, representatives of 
State governments participated in the Working Group, who directly 
represent the consumers that live in those states. DOE also received 
many comments from members of the public and other consumer advocacy 
groups in support of the direct final rule.

IV. Department of Justice Analysis of Competitive Impacts

    EPCA directs DOE to consider any lessening of competition that is 
likely to result from new or amended standards. It also directs the 
Attorney General of the United States (``Attorney General'') to 
determine the impact, if any, of any lessening of competition likely to 
result from a proposed 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)(i)(V) and (B)(ii)) For the direct final rule 
discussed in this document, DOE published a NOPR containing energy 
conservation standards identical to those set forth the direct final 
rule and transmitted a copy of the direct final rule and the 
accompanying technical support document (``TSD'') to the Attorney 
General, requesting that the U.S. Department of Justice (``DOJ'') 
provide its determination on this issue. DOE has published DOJ's 
comments at the end of this document.
    DOJ reviewed the new standards in the direct final rule and the 
direct final rule TSD discussed in this document. As a result of its 
analysis, DOJ concluded that the new standards issued in this direct 
final rule are unlikely to have a significant adverse impact on 
competition. DOJ further noted that the standards established in this 
direct final rule were the same as recommended standards submitted in 
the consensus recommendations signed by industry participants who 
believed they could meet the standards (as well as other interested 
parties).

V. Social Cost of Carbon

    DOE notes that the direct final rule discussed in this notice 
preceded Executive Order 13783's requirement to revise future analyses 
involving carbon monetization. See 82 FR 16093 (March 31, 2017). The 
direct final rule included an analysis that examined the impacts 
associated with the social cost of carbon. These values, which were 
ancillary to the primary analyses that DOE conducted to determine 
whether the standards adopted in the rule were justified under the 
statutory criteria

[[Page 24214]]

prescribed under 42 U.S.C. 6295(o), did not change the results of DOE's 
analyses. Accordingly, while the inclusion of these values helped in 
providing additional detail regarding the impacts from the rule, those 
details played no role in determining the outcome of DOE's decision 
under EPCA.

VI. National Environmental Policy Act

    Pursuant to the National Environmental Policy Act of 1969 
(``NEPA''), 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 Appendix B, B(1)-(5). 
This rule fits within the category of actions because it is a 
rulemaking establishing 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 them. 
DOE's CX determination that applies to this direct final rule is 
available at http://energy.gov/nepa/categorical-exclusion-cx-determinations-cx.

VII. Conclusion

    In summary, based on the discussion above, DOE has determined that 
the comments received in response to the direct final rule for new 
energy conservation standards for CAC and HPs do not provide a 
reasonable basis for withdrawal of the direct final rule. As a result, 
the energy conservation standards set forth in this direct final rule 
became effective on May 8, 2017. Compliance with the standards 
articulated in this direct final rule will be required on January 1, 
2023.

    Issued in Washington, DC, on May 22, 2017.
Daniel R Simmons,
Acting Assistant Secretary, Energy Efficiency and Renewable Energy.

Appendix

[The following letter will not appear in the Code of Federal 
Regulations]

U.S. DEPARTMENT OF JUSTICE
Antitrust Division

BRENT SNYDER
Acting Assistant Attorney General
Main Justice Building
950 Pennsylvania Avenue, N.W.
Washington, D.C. 20530-0001
(202) 514-2401/(202) 616-2645 (Fax)

March 7, 2017

Daniel Cohen
Assistant General Counsel
Department of Energy
Washington, DC 20585

    Dear Assistant General Counsel Cohen:
    I am responding to your January 13, 2017, letter seeking the 
views of the Attorney General about the potential impact on 
competition of proposed energy conservation standards for 
residential central air conditioners and heat pumps. Your request 
was submitted under Section 325(o)(2)(B)(i)(V) of the Energy Policy 
and Conservation Act, as amended (ECPA), 42 U.S.C. 
6295(o)(2)(B)(i)(V) and 43 U.S.C. 6316(a), which requires the 
Attorney General to make a determination of the impact of any 
lessening of competition that is likely to result from the 
imposition of proposed energy conservation standards. The Attorney 
General's responsibility for responding to requests from other 
departments about the effect of a program on competition has been 
delegated to the Assistant Attorney General for the Antitrust 
Division in 28 CFR Sec.  0.40(g). In conducting its analysis, the 
Antitrust Division examines whether a proposed standard may lessen 
competition, for example, by substantially limiting consumer choice 
or increasing industry concentration. A lessening of competition 
could result in higher prices to manufacturers and consumers.
    We have reviewed the proposed standards contained in the Direct 
Final Rule (82 Fed. Reg. 1786, January 6, 2017). We have also 
reviewed supplementary information submitted to the Attorney General 
by the Department of Energy. Based on this review, our conclusion is 
that the proposed energy conservation standards for residential 
central air conditioners and heat pumps are unlikely to have a 
significant adverse impact on competition.

Sincerely,

Brent Snyder.

[FR Doc. 2017-10869 Filed 5-25-17; 8:45 am]
 BILLING CODE 6450-01-P