[Federal Register Volume 84, Number 68 (Tuesday, April 9, 2019)]
[Proposed Rules]
[Pages 14027-14038]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-06869]


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DEPARTMENT OF ENERGY

10 CFR Part 431

[EERE-2019-BT-STD-0008]


Energy Conservation Program: Energy Conservation Standards for 
Small Electric Motors

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

ACTION: Request for information.

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SUMMARY: The U.S. Department of Energy (``DOE'') is initiating an 
effort to determine whether to amend the current energy conservation 
standards for small electric motors. Under the Energy Policy and 
Conservation Act of 1975, as amended (``EPCA''), DOE must review these 
standards at least once every six years and publish either a notice of 
proposed rulemaking (``NOPR'') to propose new standards for small 
electric motors or a notice of determination that the existing 
standards do not need to be amended. This request for information 
(``RFI'') solicits information from the public to help DOE determine 
whether amending the standards for small electric motors would result 
in significant energy savings and whether such standards would be 
technologically feasible and economically justified. DOE welcomes 
written comments from the public on any subject within the scope of 
this document (including topics not raised in this RFI).

DATES: Written comments and information are requested and will be 
accepted on or before May 24, 2019.

ADDRESSES: Interested persons are encouraged to submit comments using 
the Federal eRulemaking Portal at http://www.regulations.gov. Follow 
the instructions for submitting comments. Alternatively, interested 
persons may submit comments, identified by docket number EERE-2019-BT-
STD-0008, by any of the following methods:
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
     Email: [email protected]. Include the 
docket number EERE-2019-BT-STD-0008 in the subject line of the message.
     Postal Mail: Appliance and Equipment Standards Program, 
U.S. Department of Energy, Building Technologies Office, Mailstop EE-
5B, 1000 Independence Avenue SW, Washington, DC 20585-0121. If 
possible, please submit all items on a compact disc (``CD''), in which 
case it is not necessary to include printed copies.
     Hand Delivery/Courier: Appliance and Equipment Standards 
Program, U.S. Department of Energy, Building Technologies Office, 950 
L'Enfant Plaza SW, 6th Floor, Washington, DC 20024. Telephone: (202) 
287-1445. If possible, please submit all items on a CD, in which case 
it is not necessary to include printed copies.
    No telefacsimiles (faxes) will be accepted. For detailed 
instructions on submitting comments and additional information on the 
rulemaking process, see section III of this document.
    Docket: The docket for this activity, which includes Federal 
Register notices, comments, and other supporting documents/materials, 
is available for review at http://www.regulations.gov. All documents in 
the docket are listed in the http://www.regulations.gov index. However, 
some documents listed in the index, such as those containing 
information that is exempt from public disclosure, may not be publicly 
available.
    The docket web page can be found at http://www.regulations.gov/#!docketDetail;D=EERE-2019-BT-STD-0008. The docket web page will 
contain instructions on how to access all documents, including public 
comments, in the docket. See section III for information on how to 
submit comments through http://www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: Mr. Jeremy Dommu, U.S. Department of 
Energy, Office of Energy Efficiency and Renewable Energy, Building 
Technologies Program, EE-5B, 1000 Independence Avenue SW, Washington, 
DC 20585-0121. Telephone: (202) 586-9870. Email: 
[email protected].
    Michael Kido, U.S. Department of Energy, Office of the General 
Counsel, GC-33, 1000 Independence Avenue SW, Washington, DC 20585-0121. 
Telephone: (202) 586-8145. Email: [email protected].
    For further information on how to submit a comment, review other 
public comments and the docket, contact the Appliance and Equipment 
Standards Program staff at (202) 586-6636 or by email: 
[email protected].

SUPPLEMENTARY INFORMATION:

Table of Contents

I. Introduction
    A. Authority and Background
    B. Rulemaking Process
II. Request for Information and Comments
    A. Equipment Covered by This Request for Information
    1. Definition of ``Small Electric Motor''
    2. Small Electric Motors Currently Subject to Standards
    B. Market and Technology Assessment
    1. Equipment Classes
    2. Technology Assessment
    C. Screening Analysis
    D. Engineering Analysis
    1. Baseline Efficiency Levels
    2. Maximum Available and Maximum Technologically Feasible Levels
    3. Manufacturer Production Costs and Manufacturer Selling Price
    E. Distribution Channels
    F. Energy Use Analysis
    G. Life-Cycle Cost and Payback Period Analysis
    1. Lifetimes
    2. Installation Costs
    3. Repair and Maintenance Costs
    H. Shipments
    I. Manufacturer Impact Analysis
    J. Other Energy Conservation Standards Topics
    1. Market Failures
    2. Other
III. Submission of Comments

I. Introduction

A. Authority and Background

[[Page 14028]]

    The Energy Policy and Conservation Act of 1975, as amended 
(``EPCA'' or ``the Act''),\1\ among other things, authorizes DOE to 
regulate the energy efficiency of a number of consumer products and 
industrial equipment. (42 U.S.C. 6291-6317). Title III, Part C \2\ of 
EPCA, added by Public Law 95-619, Title IV, section 441(a), established 
the Energy Conservation Program for Certain Industrial Equipment, which 
sets forth a variety of provisions designed to improve energy 
efficiency. This equipment includes small electric motors, the subject 
of this RFI. (See generally 42 U.S.C. 6311(13)(G) and 42 U.S.C. 
6317(b))
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    \1\ All references to EPCA in this document refer to the statute 
as amended through the America's Water Infrastructure Act of 2018, 
Public Law 115-270 (October 23, 2018).
    \2\ For editorial reasons, upon codification in the U.S. Code, 
Part C was redesignated Part A-1.
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    Under EPCA, DOE's energy conservation program consists essentially 
of four parts: (1) Testing, (2) labeling, (3) Federal energy 
conservation standards, and (4) certification and enforcement 
procedures. Relevant provisions of the Act specifically include 
definitions (42 U.S.C. 6311), energy conservation standards (42 U.S.C. 
6313), test procedures (42 U.S.C. 6314), labeling provisions (42 U.S.C. 
6315), and the authority to require information and reports from 
manufacturers (42 U.S.C. 6316). EPCA includes specific authority to 
establish test procedures and standards for small electric motors. (42 
U.S.C. 6317(b))
    Federal energy efficiency requirements for covered equipment 
established under EPCA generally supersede State laws and regulations 
concerning energy conservation testing, labeling, and standards. (See 
42 U.S.C. 6316(a) and (b); 42 U.S.C. 6297(a)-(c)).
    EPCA defines ``small electric motor'' as ``a NEMA general purpose 
alternating current single-speed induction motor, built in a two-digit 
frame number series in accordance with NEMA Standards Publication MG 1-
1987.'' (42 U.S.C. 6311(13)(G)) EPCA directed DOE to establish a test 
procedure for those small electric motors for which DOE makes a 
determination that energy conservation standards would be 
technologically feasible and economically justified, and would result 
in significant energy savings. (42 U.S.C. 6317(b)(1)) EPCA further 
directed DOE to prescribe energy conservation standards for those small 
electric motors for which test procedures were established. (42 U.S.C. 
6317(b)(2)) Additionally, EPCA prescribed that any such standards shall 
not apply to any small electric motor which is a component of a covered 
product or covered equipment under EPCA. (42 U.S.C. 6317(b)(3))
    On July 10, 2006, DOE published its determination that energy 
conservation standards for certain single-phase, capacitor-start, 
induction-run, small electric motors are technologically feasible and 
economically justified, and would result in significant energy savings. 
71 FR 38799. DOE completed the first rulemaking cycle in 2010 by 
publishing a final rule (the ``2010 standards Final Rule''), which 
established energy conservation standards for small electric motors 
manufactured starting on March 9, 2015.\3\ 75 FR 10874 (March 9, 2010). 
The current energy conservation standards are located in title 10 of 
the Code of Federal Regulations (``CFR'') part 431, section 446. The 
currently applicable DOE test procedures for small electric motors 
appear at 10 CFR 431.444.
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    \3\ In a technical correction, DOE revised the compliance date 
for energy conservation standards to March 9, 2015, for each small 
electric motor manufactured (alone or as a component of another 
piece of non-covered equipment), or March 9, 2017, in the case of a 
small electric motor which requires listing or certification by a 
nationally recognized safety testing laboratory. 75 FR 17036 (April 
5, 2010).
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    EPCA requires that, not later than 6 years after the issuance of 
any final rule establishing or amending a standard, DOE evaluate the 
energy conservation standards for each type of covered equipment, 
including those at issue here, and publish either a notice of 
determination that the standards do not need to be amended, or a NOPR 
that includes new proposed energy conservation standards (proceeding to 
a final rule, as appropriate). (42 U.S.C. 6316(a); 42 U.S.C. 
6295(m)(1)). DOE must make the analysis on which the determination is 
based publicly available and provide an opportunity for written 
comment. (42 U.S.C. 6316(a); 42 U.S.C. 6295(m)(2)) In making a 
determination that the standards do not need to be amended, DOE must 
evaluate whether amended standards (1) will result in significant 
conservation of energy, (2) are technologically feasible, and (3) are 
cost effective as described under 42 U.S.C. 6295(o)(2)(B)(i)(II). (42 
U.S.C. 6316(a); 42 U.S.C. 6295(m)(1)(A)) (Under 42 U.S.C. 
6295(o)(2)(B)(i)(II), DOE must determine whether the benefits of the 
standard exceed its burdens by, to the greatest extent practicable, 
considering 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 products which are likely to 
result from the imposition of the standard. See 42 U.S.C. 
6295(m)(1)(A), 6295(n)(2), and 6295(o)(2)(B)(i)(II).) In determining 
whether to propose new standards, DOE must evaluate that proposal 
against the criteria of 42 U.S.C. 6295(o) and follow the rulemaking 
procedures set out in 42 U.S.C. 6295(p).
    DOE is publishing this RFI to collect data and information to 
inform its decision consistent with its obligations under EPCA.

B. Rulemaking Process

    DOE must follow specific statutory criteria for prescribing new or 
amended standards for covered equipment. EPCA requires that a new or 
amended energy conservation standard prescribed by the Secretary be 
designed to achieve the maximum improvement in energy or water 
efficiency that is technologically feasible and economically justified. 
(42 U.S.C. 6316(a); 42 U.S.C. 6295(o)(2)(A)). To determine whether a 
standard is economically justified, EPCA requires that DOE determine 
whether the benefits of the standard exceed its burdens by considering, 
to the greatest extent practicable, the following seven factors:
    (1) The economic impact of the standard on the manufacturers and 
consumers of the affected equipment;
    (2) The savings in operating costs throughout the estimated average 
life of the equipment compared to any increases in the initial cost, or 
maintenance expense;
    (3) The total projected amount of energy savings likely to result 
directly from the standard;
    (4) Any lessening of the utility or the performance of the 
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. 6316(a); 42 U.S.C. 6295(o)(2)(B)(i)(I)-(VII))
    DOE fulfills these and other applicable requirements by conducting 
a series of analyses throughout the rulemaking process. Table I-1 shows 
the individual analyses that are performed to satisfy each of the 
requirements within EPCA.

[[Page 14029]]



       Table I-1--EPCA Requirements and Corresponding DOE Analysis
------------------------------------------------------------------------
            EPCA requirement                Corresponding DOE analyses
------------------------------------------------------------------------
Technological Feasibility..............   Market and Technology
                                          Assessment.
                                          Screening Analysis.
                                          Engineering Analysis.
Economic Justification:
    1. Economic impact on manufacturers   Manufacturer Impact
     and consumers.                       Analysis.
                                          Life-Cycle Cost and
                                          Payback Period Analysis.
                                          Life-Cycle Cost
                                          Subgroup Analysis.
                                          Shipments Analysis.
    2. Lifetime operating cost savings    Markups for Product
     compared to increased cost for the   Price Determination.
     product.                             Energy and Water Use
                                          Determination.
                                          Life-Cycle Cost and
                                          Payback Period Analysis.
    3. Total projected energy savings..   Shipments Analysis.
                                          National Impact
                                          Analysis.
    4. Impact on utility or performance   Screening Analysis.
                                          Engineering Analysis.
    5. Impact of any lessening of         Manufacturer Impact
     competition.                         Analysis.
    6. Need for national energy and       Shipments Analysis.
     water conservation.                  National Impact
                                          Analysis.
    7. Other factors the Secretary        Employment Impact
     considers relevant.                  Analysis.
                                          Utility Impact
                                          Analysis.
                                          Emissions Analysis.
                                          Monetization of
                                          Emission Reductions Benefits.
                                          Regulatory Impact
                                          Analysis.
------------------------------------------------------------------------

    As detailed throughout this RFI, DOE is publishing this document 
seeking input and data from interested parties to aid in the 
development of the technical analyses on which DOE will ultimately rely 
to determine whether (and if so, how) to amend the standards for small 
electric motors.

II. Request for Information and Comments

    In the following sections, DOE has identified a variety of issues 
on which it seeks input to aid in the development of the technical and 
economic analyses regarding whether to amend its standards for small 
electric motors. Additionally, DOE welcomes comments on other issues 
relevant to the conduct of this rulemaking that may not specifically be 
identified in this document. In particular, DOE notes that under 
Executive Order 13771, ``Reducing Regulation and Controlling Regulatory 
Costs,'' Executive Branch agencies such as DOE are directed to manage 
the costs associated with the imposition of expenditures required to 
comply with Federal regulations. See 82 FR 9339 (February 3, 2017). 
Consistent with that Executive Order, DOE encourages the public to 
provide input on measures DOE could take to lower the cost of its 
energy conservation standards rulemakings, recordkeeping and reporting 
requirements, and compliance and certification requirements applicable 
to small electric motors while remaining consistent with the 
requirements of EPCA.

A. Equipment Covered by This Request for Information

    This RFI covers equipment that meet the definition of small 
electric motor, as codified in 10 CFR 431.442. The definition for small 
electric motor was most recently amended in a test procedure final 
rule. 74 FR 32059 (July 7, 2009).
1. Definition of ``Small Electric Motor''
    Section 340(13)(G) of EPCA, as amended by the Energy Independence 
and Security Act of 2007 (``EISA 2007''), defines ``small electric 
motor'' as ``a NEMA general purpose alternating-current single-speed 
induction motor, built in a two-digit frame number series in accordance 
with NEMA Standards Publication MG 1-1987.'' (42 U.S.C. 6311(13)(G)). 
As part of that definition, DOE clarified that it includes ``IEC metric 
equivalent motors.'' 10 CFR 431.442. DOE currently regulates the energy 
efficiency of those small electric motors that fall within three 
topologies: Capacitor-start induction-run (``CSIR''), capacitor-start 
capacitor-run (``CSCR''), and certain polyphase motors. See 10 CFR 
431.446.
    Issue A.1. DOE requests comment on whether the definition for the 
types of motors that comprise small electric motors. In particular, DOE 
requests feedback on whether definitions of ``capacitor-start 
induction-run,'' ``capacitor-start capacitor-run,'' and ``polyphase'' 
within the context of the small electric motor definition are needed--
or whether cross-references to particular industry-based standards 
would suffice. DOE also requests input on whether revisions to any of 
the other definitions found--or otherwise related to--the small 
electric motor regulations at subpart X of 10 CFR part 431 are needed.
2. Small Electric Motors Currently Subject to Standards
    Subpart X of 10 CFR part 431 includes energy conservation standards 
and test procedures for the small electric motors listed in Table II-1. 
DOE is currently not considering any changes to the scope of 
applicability of energy conservation standards for small electric 
motors.

      Table II-1--Small Electric Motors Currently Subject to Energy
                         Conservation Standards
------------------------------------------------------------------------
                                       Pole
        Motor topology            configuration      Motor output power
------------------------------------------------------------------------
Single-phase:
    CSIR......................  2, 4, 6..........  0.25-3 hp (0.18-2.2
                                                    kW).*
    CSCR......................  2, 4, 6..........  0.25-3 hp (0.18-2.2
                                                    kW).

[[Page 14030]]

 
Polyphase.....................  2, 4, 6..........  0.25-3 hp (0.18-2.2
                                                    kW).
------------------------------------------------------------------------
Certain motor categories are not currently subject to standards. These
  include:
 Polyphase, 6-pole, 2 and 3 hp motors;
 CSCR and CSIR, 6-pole, 1.5, 2, and 3 hp motors;
 CSCR and CSIR, 4-pole, 3 hp motors.
* The values in parentheses are the equivalent metric ratings.

B. Market and Technology Assessment

    The market and technology assessment that DOE routinely conducts 
when analyzing the impacts of a potential new and/or amended energy 
conservation standard provides information about the relevant industry 
that will be used in DOE's analysis. DOE uses qualitative and 
quantitative information to characterize the structure of the industry 
and market. DOE identifies manufacturers, estimates market shares and 
trends, addresses regulatory and non-regulatory initiatives intended to 
improve energy efficiency or reduce energy consumption, and explores 
the potential for efficiency improvements in the design and 
manufacturing of small electric motors. DOE also reviews product 
literature, industry publications, and company websites. Additionally, 
DOE considers conducting interviews with manufacturers to improve its 
assessment of the market and available technologies for small electric 
motors.
1. Equipment Classes
    When evaluating and establishing energy conservation standards, DOE 
may divide covered equipment into equipment classes by the type of 
energy used, by capacity, or other performance-related feature. (42 
U.S.C. 6316(a); 41 U.S.C. 6295(q)). In making a determination whether 
capacity or another performance-related feature would justify a 
different standard, DOE must consider such factors as the utility of 
the feature to the consumer and other factors DOE deems appropriate. 
(Id.)
    For small electric motors, DOE currently specifies standards in 10 
CFR 431.446 for 62 equipment classes \4\ that are delineated by motor 
topology (polyphase, CSIR, or CSCR), pole configuration (2, 4, or 6 
poles), and rated motor horsepower/standard kilowatt equivalent (0.25 
to 3 horsepower or 0.18 to 2.2 kilowatts). 75 FR 10874, 10886-10887. 
Chapter 3 of the 2010 Final Rule technical support document (``TSD'') 
provides additional details on the establishment of the 62 equipment 
classes.\5\ Tables II-3, II-4, and II-5 that follow enumerate each 
equipment class (``EC'') found in the DOE standards.
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    \4\ The term ``equipment classes'' is used here to refer to the 
classes identified as ``Product Classes'' in the 2010 standards 
final rule.
    \5\ See Small Electric Motors Final Rule TSD chapter 3 at: 
www.regulations.gov/document?D=EERE-2007-BT-STD-0007-0053.

            Table II-2--Equipment Classes for Polyphase Small Electric Motors With Open Construction
----------------------------------------------------------------------------------------------------------------
  Motor horsepower/standard kilowatt
              equivalent                      Six poles                Four poles               Two poles
----------------------------------------------------------------------------------------------------------------
0.25/0.18............................  EC #1..................  EC #2..................  EC #3
0.33/0.25............................  EC #4..................  EC #5..................  EC #6
0.50/0.37............................  EC #7..................  EC #8..................  EC #9
0.75/0.55............................  EC #10.................  EC #11.................  EC #12
1/0.75...............................  EC #13.................  EC #14.................  EC #15
1.5/1.1..............................  EC #16.................  EC #17.................  EC #18
2/1.5................................  .......................  EC #19.................  EC #20
3/2.2................................  .......................  EC #21.................  EC #22
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  Table II-3--Equipment Classes for Capacitor-Start Induction-Run Small Electric Motors With Open Construction
----------------------------------------------------------------------------------------------------------------
  Motor horsepower/standard kilowatt
              equivalent                      Six poles                Four poles               Two poles
----------------------------------------------------------------------------------------------------------------
0.25/0.18............................  EC #23.................  EC #24.................  EC #25
0.33/0.25............................  EC #26.................  EC #27.................  EC #28
0.5/0.37.............................  EC #29.................  EC #30.................  EC #31
0.75/0.55............................  EC #32.................  EC #33.................  EC #34
1/0.75...............................  EC #35.................  EC #36.................  EC #37
1.5/1.1..............................  .......................  EC #38.................  EC #39
2/1.5................................  .......................  EC #40.................  EC #41
3/2.2................................  .......................  .......................  EC #42
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  Table II-4--Equipment Classes for Capacitor-Start Capacitor-Run Small Electric Motors With Open Construction
----------------------------------------------------------------------------------------------------------------
  Motor horsepower/standard kilowatt
              equivalent                      Six poles                Four poles               Two poles
----------------------------------------------------------------------------------------------------------------
0.25/0.18............................  EC #43.................  EC #44.................  EC #45
0.33/0.25............................  EC #46.................  EC #47.................  EC #48

[[Page 14031]]

 
0.5/0.37.............................  EC #49.................  EC #50.................  EC #51
0.75/0.55............................  EC #52.................  EC #53.................  EC #54
1/0.75...............................  EC #55.................  EC #56.................  EC #57
1.5/1.1..............................  .......................  EC #58.................  EC #59
2/1.5................................  .......................  EC #60.................  EC #61
3/2.2................................  .......................  .......................  EC #62
----------------------------------------------------------------------------------------------------------------

    For the 2010 standards Final Rule, DOE considered CSIR and CSCR 
motors to be distinct equipment classes because of efficiency and 
physical size differences due to the presence of a run capacitor. The 
run capacitor of a CSCR motor is often mounted in an external housing, 
and therefore; DOE was concerned that CSCR motors may have limited 
utility in space constrained applications compared to CSIR motors which 
do not have a run capacitor. However, DOE ultimately established the 
same energy conservation standards for both CSIR and CSCR motors. Based 
on a recent review of major motor manufacturer catalogs, DOE has found 
no CSIR motors for sale that meet or exceed the current energy 
conservation standards. The physical size or type of start and run 
capacitors used on CSCR motors may have changed since the 2010 
standards Final Rule, possibly permitting the use of a CSCR motor in 
space-constrained applications. In light of the possibility that CSIR 
motors may no longer be offered for sale and CSCR motor have been able 
to effectively take the place of CSIR motors in space-constrained 
applications, DOE may consider combining these classes into a single 
equipment class because they are typically advertised to serve the same 
applications and they provide similar features (e.g., high locked-rotor 
torque).
    Issue B.1. DOE requests feedback on the current small electric 
motor equipment classes and whether changes to these individual 
equipment classes and their descriptions should be made, or whether 
certain classes should be merged (e.g., CSCR and CSIR equipment 
classes) or separated. Has the physical size or type of start and run 
capacitors changed since the 2010 standards Final Rule, (e.g., a shift 
from paper and foil capacitors to smaller metallized film capacitors)? 
DOE further requests feedback on whether combining certain classes 
could impact equipment utility by eliminating any performance-related 
features or impact the stringency of the current energy conservation 
standard for this equipment. DOE also requests comment on separating 
any of the existing equipment classes and whether it would impact 
equipment utility by eliminating any performance-related features or 
reduce any compliance burdens. DOE requests information on the 
potential manufacturer burden associated with either merging or 
separating such classes.
    Issue B.2. DOE seeks information regarding any other new equipment 
classes meeting the small electric motor definition that it should 
consider for inclusion in its analysis. Specifically, DOE requests 
information on the performance-related features (e.g., input power 
supply, operating speed, etc.) that provide unique consumer utility and 
data detailing the corresponding impacts on energy use that would 
justify separate equipment classes (i.e., explanation for why the 
presence of these performance-related features would increase energy 
consumption).
2. Technology Assessment
    In analyzing the feasibility of potential new or amended energy 
conservation standards, DOE uses information about existing and past 
technology options and prototype designs to help identify technologies 
that manufacturers could use to meet and/or exceed a given set of 
energy conservation standards under consideration. In consultation with 
interested parties, DOE intends to develop a list of technologies to 
consider in its analysis. That analysis will likely include a number of 
the technology options DOE previously considered during its previous 
rulemaking for small electric motors. A complete list of those prior 
options appears in Table II-5. See also, 75 FR 10874, 10887.\6\
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    \6\ For a description of how each of these technology options 
would improve small electric motor efficiency, see Small Electric 
Motors Final Rule TSD chapter 3 and chapter 4 at 
www.regulations.gov/document?D=EERE-2007-BT-STD-0007-0053.

     Table II-5--Technology Options To Increase Small Electric Motor
                               Efficiency
------------------------------------------------------------------------
       Category of loss to reduce           Technology option applied
------------------------------------------------------------------------
I\2\R Losses (Resistive losses,          Use copper die-cast rotor cage.
 stemming from current flow).            Remove skew on conductor cage.
                                         Increase cross-sectional area
                                          of rotor conductor bars.
                                         Increase end ring size.
                                         Changing gauges of copper wire
                                          in stator.
                                         Manipulate stator slot size.
                                         Decrease the radial air gap.
                                         Change run-capacitor rating.
Core Losses (Losses created in the       Improve grade of electrical
 steel components of a motor from         steel.
 hysteresis losses and eddy currents.).  Use thinner steel laminations.
                                         Anneal steel laminations.
                                         Add stack height (i.e., length,
                                          add electrical steel
                                          laminations).
                                         Use high-efficiency lamination
                                          materials.
                                         Use plastic bonded iron powder.

[[Page 14032]]

 
Friction and Windage Losses (Losses      Use better bearings and
 from bearing friction and an imperfect   lubricant.
 cooling fan system).                    Install a more efficient
                                          cooling system.
------------------------------------------------------------------------

    DOE is not aware of specific techniques manufacturers use to reduce 
stray-load losses, which are any losses that are not attributed to I 
\2\R losses, core losses, or friction and windage losses and otherwise 
unaccounted for. DOE notes that general process changes to the 
manufacturing of rotors and stators could potentially reduce such 
losses.
    Issue B.3. DOE seeks information on the technologies listed in 
Table II-5 regarding their applicability to the current market and how 
these technologies may impact the efficiency of small electric motors 
as measured according to the DOE test procedure. DOE also seeks 
information on how these technologies may have changed since they were 
considered in the 2010 standards Final Rule analysis. Specifically, DOE 
seeks information on the range of efficiencies or performance 
characteristics that are currently available for each technology 
option. DOE also seeks information regarding the cost-effectiveness 
associated with introducing each of the listed options in achieving 
improved energy efficiency for small electric motors--e.g., what are 
the expenses of implementing each of the listed options compared to the 
energy and related cost savings potential that each of these options 
would be likely to bring to the end user.
    Issue B.4. DOE seeks comment on other technology options that it 
should consider for inclusion in its analysis and whether these 
technologies may impact equipment features or consumer utility. DOE 
also seeks input regarding the cost-effectiveness of implementing these 
options.

C. Screening Analysis

    The purpose of the screening analysis is to evaluate the 
technologies that improve equipment efficiency to determine which 
technologies will be eliminated from further consideration and which 
will be passed to the engineering analysis for further consideration.
    DOE determines whether to eliminate certain technology options from 
further consideration based on the following criteria:
    (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 of a technology in commercial products 
and reliable installation and servicing of the technology could not be 
achieved on the scale necessary to serve the relevant market at the 
time of the effective date of the standard, then that technology will 
not be considered further.
    (3) Impacts on equipment utility or equipment availability. If a 
technology is determined to have significant adverse impact on the 
utility of the equipment to significant subgroups of consumers, or 
result in the unavailability of any covered equipment type with 
performance characteristics (including reliability), features, sizes, 
capacities, and volumes that are substantially the same as equipment 
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 will have significant adverse impacts on health or safety, 
it will not be considered further.
    10 CFR part 430, subpart C, appendix A, 4(a)(4) and 5(b).
    Technology options identified in the technology assessment are 
evaluated against these criteria using DOE analyses and inputs from 
interested parties (e.g., manufacturers, trade organizations, and 
energy efficiency advocates). Options that pass through the screening 
analysis are referred to as ``design options'' in the engineering 
analysis. Technology options that fail to meet one or more of the four 
criteria are eliminated from consideration.
    Table II.6 summarizes the technology options that DOE screened out 
in the 2010 standards Final Rule, and the applicable screening 
criteria.

            Table II.6--Previously Screened Out Technology Options From the 2010 Standards Final Rule
----------------------------------------------------------------------------------------------------------------
                                                          EPCA criteria  (X = basis for screening out)
                                               -----------------------------------------------------------------
                                                                  Practicability      Adverse         Adverse
          Screened technology option             Technological   to manufacture,    impact  on      impacts  on
                                                  feasibility      install, and       product       health  and
                                                                     service          utility         safety
----------------------------------------------------------------------------------------------------------------
Plastic Bonded Iron Powder....................               X   ...............  ..............  ..............
Radial Air Gap <0.0125 inches.................  ...............               X   ..............  ..............
----------------------------------------------------------------------------------------------------------------

    Issue C.1. DOE requests feedback on what impact, if any, the four 
screening criteria described in this section would have on each of the 
technology options listed in Table II-5 with respect to small electric 
motors. Similarly, DOE seeks information regarding how these same 
criteria would affect any other technology options not already 
identified in this document with respect to their potential use in 
small electric motors.
    Issue C.2. With respect to the screened out technology options 
listed in Table II.6, DOE seeks information on whether these options 
would remain screened out under the four screening criteria described 
in this section, and if so, DOE requests any current or projected 
assessment regarding each technology option that would support further 
consideration of that option in DOE's analysis. With respect to each of 
these technology options, what steps, if any, could be (or have already 
been) taken to facilitate the introduction of each option as a means to 
improve the energy efficiency performance of small

[[Page 14033]]

electric motors and the potential to impact the utility of the small 
electric motor to end-users? DOE in particular seeks information on the 
potential impact of these technologies on the utility of the small 
electric motor to end-users and the impact to the use of the small 
electric motor in the larger equipment.

D. Engineering Analysis

    The engineering analysis estimates the cost-efficiency relationship 
of equipment at different levels of increased energy efficiency 
(``efficiency levels''). This relationship serves as the basis for the 
cost-benefit calculations for consumers, manufacturers, and the Nation. 
In determining the cost-efficiency relationship, DOE estimates the 
increase in manufacturer production cost (``MPC'') associated with 
increasing the efficiency of equipment above the baseline efficiency 
level, up to the maximum technologically feasible (``max-tech'') 
efficiency level for each equipment class.
    DOE historically has used the following three methodologies to 
generate incremental manufacturing costs and establish efficiency 
levels (``ELs'') for analysis: (1) The design-option approach, which 
provides the incremental costs of adding to a baseline model design 
options that will improve its efficiency; (2) the efficiency-level 
approach, which provides the relative costs of achieving increases in 
energy efficiency levels, without regard to the particular design 
options used to achieve such increases; and (3) the cost-assessment (or 
reverse engineering) approach, which provides ``bottom-up'' 
manufacturing cost assessments for achieving various levels of 
increased efficiency, based on detailed cost data for parts and 
materials, labor, shipping/packaging, and investment for models that 
operate at particular efficiency levels.
1. Baseline Efficiency Levels
    For each established equipment class, DOE selects a baseline model 
as a reference point against which any changes resulting from energy 
conservation standards under consideration can be measured. The 
baseline model in each equipment class represents the characteristics 
of common or typical equipment in that class. Typically, a baseline 
model is one that meets the current minimum energy conservation 
standards and provides basic consumer utility.
    Consistent with this analytical approach, DOE tentatively plans to 
consider the current minimum energy conservation standards for small 
electric motors (which were required for compliance starting on March 
9, 2015 and, for small electric motors requiring listing or 
certification by a nationally recognized safety testing laboratory, on 
March 9, 2017) to establish the baseline efficiency levels for each 
equipment class. The current standards for each equipment class are 
based on average full load efficiency. The current standards for small 
electric motors are found in 10 CFR 431.446.
    Issue D.1. DOE requests feedback on whether using the current 
energy conservation standards for small electric motors are appropriate 
baseline efficiency levels for DOE to apply to each equipment class in 
evaluating whether to amend the current energy conservation standards 
for this equipment. DOE requests data and suggestions on how to 
evaluate the baseline efficiency levels to better evaluate whether the 
current energy conservation standards for this equipment merit further 
amending.
    Issue D.2. DOE requests feedback on whether CSIR motors subject to 
the small electric motor standards are currently for sale and whether 
DOE should analyze a CSIR baseline if it decides to consider amending 
or otherwise revising the standards for small electric motors.
    Issue D.3. DOE requests feedback on the appropriate baseline 
efficiency levels for any newly analyzed equipment classes that are not 
currently in place or for the contemplated combined equipment classes, 
as discussed in section II.B.1 of this document. For those combined 
equipment classes DOE is considering for its analysis, as well as for 
any additional equipment classes suggested for further examination, DOE 
requests energy use data regarding each of these classes to develop a 
baseline relationship between efficiency and rated output power and 
number of poles.
2. Maximum Available and Maximum Technologically Feasible Levels
    As part of DOE's analysis, the maximum available efficiency level 
is the highest efficiency unit currently available on the market. For 
the 2010 standards Final Rule, DOE did not analyze all 62 small 
electric motor equipment classes. Rather, DOE focused on three 
equipment classes and applied the analysis of those classes to the 
remaining equipment classes. These representative equipment classes 
generally represented the most common (by shipments) pole configuration 
and horsepower ratings (i.e., 1-horsepower, four-pole, polyphase 
motors; \1/2\-horsepower, four-pole, CSIR motors; and \3/4\-horsepower, 
four-pole, CSCR motors). See 75 FR 10874, 10888 and chapter 5 of the 
final rule TSD for that rulemaking.\7\ DOE identified the maximum 
available efficiencies listed in motor manufacturer product catalogs 
for three representative equipment classes, listed in Table II-7.
---------------------------------------------------------------------------

    \7\ See Small Electric Motors Final Rule TSD chapter 5 at: 
www.regulations.gov/document?D=EERE-2007-BT-STD-0007-0053.

        Table II-7--Maximum Efficiency Levels Currently Available
------------------------------------------------------------------------
                                              Maximum
                                             available        Current
     Representative equipment class            motor          energy
                                            efficiency     conservation
                                                (%)        standard  (%)
------------------------------------------------------------------------
1-horsepower, four-pole, polyphase                  85.5            83.5
 motors.................................
\3/4\-horsepower, four-pole, CSCR motors            81.8            81.8
\1/2\-horsepower, four-pole, CSIR motors           * N/A            81.8
------------------------------------------------------------------------
* Based on review of motor catalogs, no CSIR motors meeting or exceeding
  current energy conservation standards.


[[Page 14034]]

    DOE defines a max-tech efficiency level to represent the 
theoretical maximum possible efficiency if all available design options 
are incorporated in a motor model. In many cases, the max-tech 
efficiency level is not commercially available because it is not 
economically feasible. In the 2010 standards final rule, DOE determined 
max-tech efficiency levels using motor design modeling with the most 
efficient design parameters that were technologically feasible. These 
motor models were based on the use of all design options applicable to 
the specific equipment classes.
    Issue D.4. DOE seeks input on whether the maximum available 
efficiency levels are appropriate and technologically feasible for 
potential consideration as possible energy conservation standards for 
the equipment at issue--and if not, why not. DOE also requests feedback 
on whether the maximum available efficiencies presented in Table II-7 
are representative of those for the small electric motor equipment 
classes that are currently regulated but were not directly analyzed in 
the 2010 standards Final Rule. To the extent that the range of possible 
efficiencies differs from the efficiencies of the other equipment 
classes that were not directly analyzed, what alternative approaches 
should DOE consider using to represent the efficiency of those 
equipment classes and why?
    Issue D.5. DOE seeks feedback on what design options would likely 
be incorporated at a max-tech and maximum-available efficiency level, 
and on the efficiency values associated with those levels. As part of 
this request, DOE also seeks information as to whether there are 
limitations on the use of certain combinations of design options.
3. Manufacturer Production Costs and Manufacturer Selling Price
    As described at the beginning of this section, the main outputs of 
the engineering analysis are cost-efficiency relationships that 
describe the estimated increases in manufacturer production cost 
associated with higher-efficiency equipment for the analyzed equipment 
classes. For the 2010 standards final rule, DOE developed the cost-
efficiency relationships by using a reverse-engineering process where 
cost models were developed based on the results of a tear down process 
for representative units.
    In the 2010 standards final rule, DOE analyzed both space-
constrained and non-space-constrained representative units for some 
efficiency levels. The space-constrained representative unit uses 
higher-grade materials to maintain motor stack length within 20 percent 
of the baseline design, while the non-space-constrained representative 
unit increases motor size (increased stack length up to 100 percent, 
same frame size) while using lower-grade materials. The non-space-
constrained representative unit is larger, but less expensive to 
produce. The space-constrained representative unit is more expensive to 
produce and would only be selected by customers with applications that 
cannot accept a larger motor.
    Issue D.6. DOE requests feedback on how manufacturers would 
incorporate the technology options listed in Table II-5 and not 
screened out in Table II.6 to increase energy efficiency in small 
electric motors beyond the baseline. This includes information on the 
order in which manufacturers would incorporate the different 
technologies to incrementally improve the efficiencies of motors. DOE 
also requests feedback on whether the increased energy efficiency would 
lead to other design changes that would not occur otherwise. DOE is 
also interested in information regarding any potential impact of design 
options on a manufacturer's ability to incorporate additional functions 
or attributes in response to consumer demand, as well as a 
manufacturer's ability to satisfy the demand for small electric motors 
used in current applications.
    Issue D.7. DOE also seeks input on the increase in MPC associated 
with incorporating each particular design option. Specifically, DOE is 
interested in whether and how the costs estimated for design options in 
the 2010 standards Final Rule have changed since the time of that 
analysis. DOE also requests information on the investments (including 
related costs) necessary to incorporate specific design options, 
including, but not limited to, costs related to new or modified tooling 
(if any), materials, engineering and development efforts to implement 
each design option, and manufacturing/production impacts.
    Issue D.8. DOE requests comment on whether certain design options 
may not apply to (or be incompatible with) specific equipment classes.
    Issue D.9. DOE requests comment on whether space-constrained 
applications exist that cannot accept a change in motor size, the 
market share of these applications, and how that market share varies by 
equipment class.
    As described in section II.D.2 of this document, DOE analyzed three 
equipment classes in the 2010 standards Final Rule. DOE developed cost-
efficiency curves for each of these equipment classes that were used as 
the input for the downstream analyses conducted in support of that 
rulemaking. See chapter 5 of the 2010 standards Final Rule TSD for the 
cost-efficiency curves developed in that rulemaking.\8\
---------------------------------------------------------------------------

    \8\ See Small Electric Motors Final Rule TSD chapter 5 at: 
www.regulations.gov/document?D=EERE-2007-BT-STD-0007-0053.
---------------------------------------------------------------------------

    Issue D.10. DOE seeks feedback on whether the approach of analyzing 
a sub-set of equipment classes is appropriate for evaluating the 
feasibility of potential energy conservation standards for small 
electric motors. DOE requests comment on whether it is necessary to 
individually analyze all three representative equipment classes 
analyzed in the 2010 standards Final Rule--and if so, why. If analyzing 
a sub-set of small electric motor classes is sufficient, what minimum 
number of classes should DOE analyze--and how should those classes be 
distributed among the 62 separate classes that DOE currently regulates. 
Additionally, DOE seeks comment on whether DOE's prior approach of 
analyzing particular equipment classes and applying those results to 
the remaining classes remains appropriate in principle--and if not, why 
not? For example, if it is necessary to individually analyze more than 
the three equipment classes used in the 2010 standards Final Rule, 
please provide information on why aggregating certain equipment is not 
appropriate. If this approach is not appropriate, what alternative 
approaches should DOE consider using as an alternative and why?
    To account for manufacturers' non-production costs and profit 
margin, DOE applies 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. For the 2010 standards final rule, DOE used three 
manufacturer markups to account for costs that are part of each motor 
leaving a manufacturer's facility:
     Handling and scrap factor: 2.5 percent markup. This markup 
was applied to the direct material production costs of each motor. It 
accounts for the handling of material and the scrap material that 
cannot be used in the production of a finished small electric motor.
     Factory overhead: 17.5 or 18.0 percent markup. DOE applied 
factory overhead to the direct material production costs, including the

[[Page 14035]]

handling and scrap factor, and labor estimates. For aluminum rotor 
designs a 17.5 percent markup was used, but for all copper rotor 
designs an 18.0 percent markup was used to factor in increased 
depreciation for the equipment.
     Non-production: 45 percent markup. This markup reflects 
costs including sales and general administrative, research and 
development, interest payments, and profit factor. DOE applied the non-
production markup to the sum of the direct material production, the 
handling and scrap, the direct labor, and the factory overhead 
otherwise known as the MPC.
    DOE prepared these estimated markups based on corporate reports and 
conversations with manufacturers and experts. See chapter 5 of the 2010 
standards final rule TSD \9\ for further detail.
---------------------------------------------------------------------------

    \9\ See Small Electric Motors Final Rule TSD chapter 5 at: 
www.regulations.gov/document?D=EERE-2007-BT-STD-0007-0053.
---------------------------------------------------------------------------

    Issue D.11. DOE requests feedback on whether the manufacturer 
markups used in the 2010 standards final rule would be appropriate for 
use in a potential small electric motors standards rulemaking. If the 
markups require revision, what specific revisions are needed for each? 
Are there additional markups that DOE should also consider--if so, 
which ones and why?

E. Distribution Channels

    In generating end-user price inputs for the life-cycle cost 
(``LCC'') analysis and national impact analysis (``NIA''), DOE must 
identify distribution channels (i.e., how the small electric motors are 
distributed from the manufacturer to the consumer), and estimate 
relative sales volumes through each channel. In the 2010 standards 
final rule, DOE accounted for three distribution channels for small 
electric motors and estimated their respective shares of sales volume: 
(1) From manufacturers to original equipment manufacturers (``OEMs''), 
who incorporate motors in larger pieces of equipment, to OEM equipment 
distributors, to contractors, and then to end-users (65 percent of 
shipments); (2) from manufacturers to wholesale distributors, to OEMs, 
to OEM equipment distributors, to contractors, and then to end-users 
(30 percent of shipments); and (3) from manufacturers to distributors 
or retailers, to contractors and then to end-users (5 percent of 
shipments). In that rulemaking, DOE recognized that contractors are not 
used in all installations, because some firms have in-house technicians 
who would install equipment or replace a motor. However, at the time, 
DOE had no information on the extent to which this occurs, so it 
assumed that all channels also included a contractor.\10\ Should 
sufficient information become available, DOE may consider including 
separate distribution channels that do not include contractors in 
addition to the existing distribution channels previously described.
---------------------------------------------------------------------------

    \10\ See Technical Support Document, Chapter 7, Markups for 
Equipment Price Determination at www.regulations.gov/document?D=EERE-2007-BT-STD-0007-0053.
---------------------------------------------------------------------------

    Issue E.1. DOE requests information on the existence of any 
distribution channels other than the three channels that were 
identified in the 2010 standards final rule and as described in section 
II.E. DOE also requests data on the fraction of small electric motor 
sales that go through these channels, as well as the fraction of sales 
that go through any other identified channels.

F. Energy Use Analysis

    As part of the rulemaking process, DOE conducts an energy use 
analysis to identify how motors are used by consumers to help determine 
the energy savings potential of energy efficiency improvements. DOE 
bases the energy consumption of small electric motors on the rated 
average full-load efficiency as determined by the DOE test procedure 
and on additional information to represent typical energy consumption 
in the field, such as: Annual operating hours, motor operating load, 
and part-load efficiency.
    In the 2010 standards final rule, DOE determined the annual energy 
consumption of small electric motors by multiplying the power consumed 
while in operation by the annual hours of operation in various 
applications. The power consumed in operation was established as a 
function of the motor load and of the typical part-load efficiency of 
small electric motors as characterized in the engineering analysis.\11\ 
DOE used shipments data to establish the share of each motor 
application and derived distributions of operating hours and load using 
data referenced in Nadel et al.\12\ As part of a potential energy 
conservation standards rulemaking, DOE would review available motor 
energy use information and update these inputs as appropriate.
---------------------------------------------------------------------------

    \11\ See Technical Support Document, Chapter 6, Energy Use 
Characterization at www.regulations.gov/document?D=EERE-2007-BT-STD-0007-0053.
    \12\ Nadel, S.; Elliott, R.N.; Shepard, M.; Greenberg, S.; Katz, 
G.; Almeida, A. de, Energy-efficient motor systems: A handbook on 
technology, programs, and policy opportunities, 2nd edition. 2000. 
American Council for an Energy-Efficient Economy, Washington, DC 
(U.S.).
---------------------------------------------------------------------------

    Issue F.1. DOE seeks input on data sources that DOE can use to 
characterize the variability in annual energy consumption for small 
electric motors. Specifically, DOE is requesting data and information 
related to: (1) The distribution of shipments across applications and 
sectors by equipment class or by motor topology and horsepower; (2) 
typical operating hours by application and sector; (3) typical motor 
load by application and sector; and (4) typical load profiles (i.e., 
percentage of annual operating hours spent at specified load points) by 
application and sector.

G. Life-Cycle Cost and Payback Period Analysis

    The purpose of the LCC and payback period (``PBP'') analysis is to 
analyze the effects of potential new and/or amended energy conservation 
standards on end users by determining how potential new and/or amended 
standards would affect their operating expenses (usually decreased) and 
their total installed costs (usually increased). DOE intends to 
characterize the variability and uncertainty of the inputs to the LCC 
and PBP calculations by using statistical distributions where 
appropriate, and by using Monte Carlo simulations. The analysis results 
are a distribution of thousands of data points showing the range of LCC 
savings and PBPs for a given standards case relative to a no new-
standards case. In this section, DOE discusses specific inputs to the 
LCC and PBP analysis for which it requests comment and feedback.
1. Lifetimes
    The equipment lifetime is the age at which the equipment is retired 
from service. In the 2010 standards Final Rule, DOE developed motor 
lifetime distributions with a mean of seven years for capacitor-start 
motors and a mean of nine years for polyphase motors. 75 FR 10874, 
10901. Each distribution incorporates a correlation between the motor's 
annual hours of operation and the motor's mechanical lifetime. DOE 
estimated motor mechanical lifetimes of 40,000 hours for polyphase 
motors and 30,000 hours for single phase motors. In the 2010 standards 
Final Rule, motor lifetime is governed by two Weibull 
distributions.\13\ One characterizes the motor lifetime in total 
operating hours (i.e., mechanical lifetime), while the other 
characterizes the lifetime in years

[[Page 14036]]

of use in the application. Motors are retired from service at the age 
when they reach either of these limits. As part of a potential energy 
conservation standards rulemaking, DOE may consider using a similar 
approach to characterize motor lifetimes.
---------------------------------------------------------------------------

    \13\ The Weibull distribution is one of the more commonly used 
distributions in reliability. It is commonly used to model time to 
failure, time to repair and material strength.
---------------------------------------------------------------------------

    Issue G.1. DOE seeks data and input on the appropriate equipment 
lifetimes for small electric motors both in years and in lifetime 
mechanical hours that DOE should apply in its analysis.
2. Installation Costs
    In the 2010 standards Final Rule, DOE assumed that more efficient 
motors will incur no increased installation costs. Should sufficient 
information become available, DOE may consider including different 
installation costs by efficiency levels as appropriate.
    Issue G.2. DOE requests feedback and data on whether installation 
costs differ in comparison to the baseline installation costs for any 
of the specific technology options listed in Table II-5. In other 
words, how would the installation costs change (increase, decrease, or 
no change) if a manufacturer were to incorporate any of the options in 
Table II-6 when compared to the installation costs of a baseline small 
electric motor. To the extent that these costs differ, DOE seeks 
supporting data and the reasons for those differences.
3. Repair and Maintenance Costs
    In the 2010 standards Final Rule, DOE found no evidence that repair 
or maintenance costs would increase with higher motor energy 
efficiency. 75 FR 10874, 10900. As part of the current evaluation, DOE 
reviewed motor repair cost data for small electric motors.\14\ Based on 
this information, DOE found that motors rated at 5 hp or less are 
typically not repaired--they are replaced. Should DOE determine to 
undertake an energy conservation standards rulemaking, DOE would 
further review available motor repair and maintenance cost information 
and may consider including repair costs in the LCC calculation?
---------------------------------------------------------------------------

    \14\ Vaughen's (2013), Vaughen's Motor & Pump Repair Price 
Guide, 2013 Edition. Available at www.vaughens.com.
---------------------------------------------------------------------------

    Issue G.3. DOE requests feedback and data on whether repair and 
maintenance costs differ in comparison to the baseline maintenance 
costs for any of the specific technology options listed in Table II-5. 
To the extent that these costs differ, DOE seeks supporting data and 
the reasons for those differences.
    Issue G.4. DOE requests information and data on the repair 
frequency and repair costs by equipment class for the technology 
options listed in Table II-5. While DOE is interested in information 
regarding each of the listed technology options. DOE is also interested 
in the frequency of repairs made (as well as the types) and whether end 
users of this equipment replace or repair the small electric motor once 
it fails.

H. Shipments

    DOE develops forecasts of equipment shipments to calculate the 
national impacts of potential amended energy conservation standards on 
energy consumption, net present value (``NPV''), and future 
manufacturer cash flows. DOE shipments projections are based on 
available historical data broken out by e.g., equipment class, 
capacity, and efficiency. Current sales estimates allow for a more 
accurate model that captures recent trends in the market.
    Issue H.1. DOE requests 2010-2018 (or the most recently available) 
annual sales data (i.e., number of shipments) for small electric motors 
by equipment class. If disaggregated data of annual sales are not 
available at the equipment class level, DOE requests more aggregated 
data of annual sales at the motor topology level.
    Issue H.2. DOE requests 2010-2018 (or the most recently available) 
data on the fraction of sales in the residential, commercial, and 
industrial sector for small electric motors.
    For the 2010 standards Final Rule, DOE developed a no-new-standards 
case shipments model for small electric motors driven by projected 
macroeconomic activity of the sectors in which they are used.\15\ 
Annual shipments growth rates for each sector were set as equal to 
annual growth rates in the following drivers: (1) For industrial and 
agricultural sectors, manufacturing activity (in value of total 
shipments, in dollars); (2) for commercial sector, commercial floor 
space; and (3) for residential sector, number of households. DOE may 
consider using a similar approach if it undertakes an energy 
conservation standards rulemaking.
---------------------------------------------------------------------------

    \15\ See Technical Support Document, Chapter 9, Shipments 
Analysis at www.regulations.gov/document?D=EERE-2007-BT-STD-0007-0053.
---------------------------------------------------------------------------

    Issue H.3. DOE requests information on the rate at which annual 
sales (i.e., number of shipments) of small electric motors is expected 
to change in the next 5 years. If possible, DOE requests this 
information by motor topology.
    Issue H.4. DOE requests data and information on any trends in the 
motor market that could be used to forecast expected trends in market 
share by efficiency levels for each equipment class. If disaggregated 
data are not available at the equipment class level, DOE requests 
aggregated data at the motor topology level.
    For the standards-case shipments projections, in the 2010 standards 
final rule, DOE assumed some consumers may shift to purchasing enclosed 
motors (not included in the scope of small electric motors) and used an 
elasticity of demand of -0.25 for both polyphase and single phase small 
electric motors to reflect this potential market shift. In addition, 
for CSIR and CSCR motors, DOE built a combined shipments model, 
reflecting the fact that these motors may be used interchangeably in 
many applications. In the 2010 standards final rule, DOE determined 
that CSCR motors were, on average, more expensive than CSIR motors for 
most equipment classes, physically larger due to the space required by 
a second capacitor, had lower losses, and had a relatively small 
overall market share. In the no-new-standards case, DOE used a 5 
percent market share for CSCR motors and a 95 percent market share for 
CSIR motors. 75 FR 10874, 10903. However, DOE projected that, if a 
combination of standards were to be adopted which significantly changed 
the relative prices of CSCR and CSIR motors, this could result in 
significant changes in the respective market shares of these motors. 
DOE developed a model to analyze this potential market shift based on 
incremental purchase cost, incremental operating losses, and the 
observed market share in the current market. In the selected standards 
case in 2016, DOE projected a 93 percent market share for CSCR motors 
and a 7 percent market share for CSIR motors, assuming all shipments 
performed at the standard level. As mentioned in section II.B.1, based 
on a recent review of major motor manufacturer catalogs, DOE found no 
CSIR motors for sale that meet or exceed current energy conservation 
standards. Should DOE determine to undertake an energy conservation 
standards rulemaking, DOE would review available small electric motor 
shipment information and revise the shares of CSIR and CSCR motors to 
reflect the actual market?
    For a potential energy conservation standards rulemaking, DOE may 
consider using a similar model with updated market share data to 
project market shares of small electric motors in the standards-case 
scenario.
    Issue H.5. DOE requests data and information on the extent to which 
the shift from CSIR motors has been to CSCR motors.

[[Page 14037]]

    Issue H.6. DOE requests comment on the elasticity value of -0.25 
used to characterize how consumers may respond to standards by changing 
to enclosed motors in the 2010 standards final rule.
    Issue H.7. DOE requests data and information on what actions might 
be likely to have the greatest impact on the motor market if the agency 
were to amend or otherwise revise the energy conservation standards 
that are currently in place for small electric motors. For example, are 
there risks regarding potential market impacts stemming from more 
stringent--or the broader application of--energy conservation standards 
for this equipment. If so, what are these potential risks and why are 
they likely? With respect to these risks, what steps can DOE take to 
mitigate them while retaining the potential benefits of improved energy 
savings expected to accrue from amending or otherwise revising the 
energy conservation standards for small electric motors?

I. Manufacturer Impact Analysis

    The purpose of the manufacturer impact analysis (``MIA'') is to 
estimate the financial impact from amending the current energy 
conservation standards on manufacturers of small electric motors, and 
to evaluate the potential impact of such standards on direct employment 
and manufacturing capacity. The MIA includes both quantitative and 
qualitative aspects. The quantitative part of the MIA primarily relies 
on the Government Regulatory Impact Model (``GRIM''), an industry cash-
flow model adapted for equipment covered in this potential rulemaking, 
with the key output of industry net present value (``INPV''). The 
qualitative part of the MIA addresses the potential impacts of amended 
energy conservation standards on manufacturing capacity and industry 
competition, as well as factors such as equipment characteristics, 
impacts on particular subgroups of firms, and important market and 
product trends.
    As part of the MIA for small electric motors, DOE intends to 
analyze the impacts from amending or otherwise revising the energy 
conservation standards on subgroups of manufacturers of covered 
equipment, including small business manufacturers. DOE uses the Small 
Business Administration's (``SBA'') small business size standards to 
determine whether manufacturers qualify as small businesses, which are 
listed by the applicable North American Industry Classification System 
(``NAICS'') code.\16\ Manufacturing of small electric motors is 
classified under NAICS 335312, ``Motor and Generator Manufacturing,'' 
and the SBA sets a threshold of 1,250 employees or less for a domestic 
entity to be considered as a small business. This employee threshold 
includes all employees in a business' parent company and any other 
subsidiaries.
---------------------------------------------------------------------------

    \16\ Available online at https://www.sba.gov/document/support-table-size-standards.
---------------------------------------------------------------------------

    One aspect of assessing manufacturer burden involves examining the 
cumulative impact of multiple DOE standards and the product/equipment-
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 
equipment 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.
    Issue I.1. To the extent feasible, DOE seeks the names and contact 
information of any domestic or foreign-based manufacturers that 
distribute small electric motors in the United States.
    Issue I.2. DOE identified small businesses as a subgroup of 
manufacturers that could be disproportionally impacted by amended 
energy conservation standards. DOE requests the names and contact 
information of small business manufacturers, as defined by the SBA's 
size threshold, of small electric motors that sell products in the 
United States. In addition, DOE requests comment on any other 
manufacturer subgroups that could be disproportionally impacted by 
amending or otherwise revising the energy conservation standards for 
small electric motors. DOE requests feedback on any potential 
approaches that could be considered to address impacts on a given 
manufacturer subgroup, including small businesses.
    Issue I.3. DOE requests information regarding the cumulative 
regulatory burden impacts on manufacturers of small electric motors 
associated with (1) other DOE standards applying to different products 
or equipment that these manufacturers may also make and (2) product-
specific regulatory actions of other Federal agencies. DOE also 
requests comment on whether to coordinate the effective date of any 
potential small electric motor energy conservation standards with any 
other regulatory actions to mitigate any cumulative regulatory burden 
on manufacturers.

J. Other Energy Conservation Standards Topics

1. Market Failures
    In the field of economics, a market failure is a situation in which 
the market outcome does not maximize societal welfare. Such an outcome 
would result in unrealized potential welfare. DOE welcomes comment on 
any aspect of market failures, especially those in the context of 
amending or otherwise revising the energy conservation standards for 
small electric motors.
2. Other
    In addition to the issues identified earlier in this document, DOE 
welcomes comment on any other aspect of energy conservation standards 
for small electric motors not already addressed by the specific areas 
identified in this document.

III. Submission of Comments

    DOE invites all interested parties to submit in writing by May 24, 
2019, comments and information on matters addressed in this notice and 
on other matters relevant to DOE's consideration of potential amended 
or otherwise revised energy conservations standards for small electric 
motors. After the close of the comment period, DOE will review the 
public comments received and may begin collecting data and conducting 
the analyses discussed in this RFI.
    Submitting comments via http://www.regulations.gov. The http://www.regulations.gov web page requires you to provide your name and 
contact information. Your contact information will be viewable to DOE 
Building Technologies Office staff only. Your contact information will 
not be publicly viewable except for your first and last names, 
organization name (if any), and submitter representative name (if any). 
If your comment is not processed properly because of technical 
difficulties, DOE will use this

[[Page 14038]]

information to contact you. If DOE cannot read your comment due to 
technical difficulties and cannot contact you for clarification, DOE 
may not be able to consider your comment.
    However, your contact information will be publicly viewable if you 
include it in the comment or in any documents attached to your comment. 
Any information that you do not want to be publicly viewable should not 
be included in your comment, nor in any document attached to your 
comment. Persons viewing comments will see only first and last names, 
organization names, correspondence containing comments, and any 
documents submitted with the comments.
    Do not submit to http://www.regulations.gov information for which 
disclosure is restricted by statute, such as trade secrets and 
commercial or financial information (hereinafter referred to as 
Confidential Business Information (``CBI'')). Comments submitted 
through http://www.regulations.gov cannot be claimed as CBI. Comments 
received through the website will waive any CBI claims for the 
information submitted. For information on submitting CBI, see the 
Confidential Business Information section.
    DOE processes submissions made through http://www.regulations.gov 
before posting. Normally, comments will be posted within a few days of 
being submitted. However, if large volumes of comments are being 
processed simultaneously, your comment may not be viewable for up to 
several weeks. Please keep the comment tracking number that 
www.regulations.gov provides after you have successfully uploaded your 
comment.
    Submitting comments via email, hand delivery, or mail. Comments and 
documents submitted via email, hand delivery, or mail also will be 
posted to http://www.regulations.gov. If you do not want your personal 
contact information to be publicly viewable, do not include it in your 
comment or any accompanying documents. Instead, provide your contact 
information on a cover letter. Include your first and last names, email 
address, telephone number, and optional mailing address. The cover 
letter will not be publicly viewable as long as it does not include any 
comments.
    Include contact information each time you submit comments, data, 
documents, and other information to DOE. If you submit via mail or hand 
delivery, please provide all items on a CD, if feasible. It is not 
necessary to submit printed copies. No telefacsimiles (faxes) will be 
accepted.
    Comments, data, and other information submitted to DOE 
electronically should be provided in PDF (preferred), Microsoft Word or 
Excel, WordPerfect, or text (ASCII) file format. Provide documents that 
are not secured, written in English and free of any defects or viruses. 
Documents should not contain special characters or any form of 
encryption and, if possible, they should carry the electronic signature 
of the author.
    Campaign form letters. Please submit campaign form letters by the 
originating organization in batches of between 50 to 500 form letters 
per PDF or as one form letter with a list of supporters' names compiled 
into one or more PDFs. This reduces comment processing and posting 
time.
    Confidential Business Information. According to 10 CFR 1004.11, any 
person submitting information that he or she believes to be 
confidential and exempt by law from public disclosure should submit via 
email, postal mail, or hand delivery two well-marked copies: One copy 
of the document marked confidential including all the information 
believed to be confidential, and one copy of the document marked ``non-
confidential'' with the information believed to be confidential 
deleted. Submit these documents via email or on a CD, if feasible. DOE 
will make its own determination about the confidential status of the 
information and treat it according to its determination.
    Factors of interest to DOE when evaluating requests to treat 
submitted information as confidential include (1) a description of the 
items, (2) whether and why such items are customarily treated as 
confidential within the industry, (3) whether the information is 
generally known by or available from other sources, (4) whether the 
information has previously been made available to others without 
obligation concerning its confidentiality, (5) an explanation of the 
competitive injury to the submitting person which would result from 
public disclosure, (6) when such information might lose its 
confidential character due to the passage of time, and (7) why 
disclosure of the information would be contrary to the public interest.
    It is DOE's policy that all comments may be included in the public 
docket, without change and as received, including any personal 
information provided in the comments (except information deemed to be 
exempt from public disclosure).
    DOE considers public participation to be a very important part of 
the process for developing energy conservation standards. DOE actively 
encourages the participation and interaction of the public during the 
comment period in each stage of the rulemaking process. Interactions 
with and between members of the public provide a balanced discussion of 
the issues and assist DOE in the rulemaking process.
    Anyone who wishes to be added to the DOE mailing list to receive 
future notices and information about this process or would like to 
request a public meeting should contact Appliance and Equipment 
Standards Program staff at (202) 287-1445 or via email at 
[email protected].

    Signed in Washington, DC, on March 26, 2019.
Valri Lightner,
Acting Deputy Assistant Secretary for Energy Efficiency, Energy 
Efficiency and Renewable Energy.
[FR Doc. 2019-06869 Filed 4-8-19; 8:45 am]
BILLING CODE 6450-01-P