[Federal Register Volume 85, Number 240 (Monday, December 14, 2020)]
[Proposed Rules]
[Pages 80982-81058]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-26874]



[[Page 80981]]

Vol. 85

Monday,

No. 240

December 14, 2020

Part III





 Department of Energy





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10 CFR Part 430





Energy Conservation Program: Energy Conservation Standards for Consumer 
Conventional Cooking Products; Proposed Rule

  Federal Register / Vol. 85 , No. 240 / Monday, December 14, 2020 / 
Proposed Rules  

[[Page 80982]]


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DEPARTMENT OF ENERGY

10 CFR Part 430

[EERE-2014-BT-STD-0005]
RIN 1904-AD15


Energy Conservation Program: Energy Conservation Standards for 
Consumer Conventional Cooking Products

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

ACTION: Notification of proposed determination and request for comment.

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SUMMARY: The Energy Policy and Conservation Act, as amended (``EPCA''), 
prescribes energy conservation standards for various consumer products 
and certain commercial and industrial equipment, including consumer 
conventional cooking products. EPCA also requires the U.S. Department 
of Energy (``DOE'') to periodically determine whether more-stringent 
standards would be technologically feasible and economically justified, 
and would result in significant energy savings. In this notification of 
proposed determination (``NOPD''), DOE has initially determined that 
amended energy conservation standards for consumer conventional cooking 
products would not be economically justified and would not result in a 
significant conservation of energy. DOE requests comment on this 
proposed determination and the associated analyses and results.

DATES: 
    Meeting: DOE will hold a webinar on Thursday, January 28, 2021, 
from 11:00 a.m. to 4:00 p.m. See section V, ``Public Participation,'' 
for webinar registration information, participant instructions, and 
information about the capabilities available to webinar participants.
    Comments: Written comments and information are requested and will 
be accepted on or before March 1, 2021.

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-2014-BT-
STD-0005, by any of the following methods:
    (1) Federal eRulemaking Portal: http://www.regulations.gov. Follow 
the instructions for submitting comments.
    (2) Email: [email protected]. Include the 
docket number EERE-2014-BT-STD-0005 in the subject line of the message.
    (3) 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. Telephone: 
(202) 287-1445. If possible, please submit all items on a compact disc 
(``CD''), in which case it is not necessary to include printed copies.
    (4) 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 telefacsimilies (``faxes'') will be accepted. For detailed 
instructions on submitting comments and additional information on the 
rulemaking process, see section VII of this document.
    Docket: The docket, which includes Federal Register notices, public 
meeting attendee lists and transcripts (if one is held), 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, 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 http://www.regulations.gov/#!docketDetail;D=EERE-2014-BT-STD-0005. The docket web page contains 
instructions on how to access all documents, including public comments, 
in the docket. See section VII, ``Public Participation,'' for 
information on how to submit comments through http://www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: Dr. Stephanie Johnson, 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) 287-1943. Email: 
[email protected].
    Ms. Celia Sher, U.S. Department of Energy, Office of the General 
Counsel, GC-33, 1000 Independence Avenue SW, Washington, DC 20585-0121. 
Telephone: (202) 287-6122. Email: [email protected].
    For further information on how to submit a comment or review other 
public comments and the docket, contact the Appliance and Equipment 
Standards Program staff at (202) 287-1445 or by email: 
[email protected].

SUPPLEMENTARY INFORMATION: 

Table of Contents

I. Synopsis of the Proposed Determination
II. Introduction
    A. Authority
    B. Background
    1. Current Standards
    2. History of Standards Rulemaking for Consumer Conventional 
Cooking Products
III. General Discussion
    A. Product Classes and Scope of Coverage
    B. Test Procedure
    C. Technological Feasibility
    1. General
    2. Maximum Technologically Feasible Levels
    D. Energy Savings
    1. Determination of Savings
    2. Significance of Savings
    E. Economic Justification
    1. Specific Criteria
    a. Economic Impact on Manufacturers and Consumers
    b. Savings in Operating Costs Compared to Increase in Price (LCC 
and PBP)
    c. Energy Savings
    d. Lessening of Utility or Performance of Products
    e. Impact of Any Lessening of Competition
    f. Need for National Energy Conservation
    g. Other Factors
    2. Rebuttable Presumption
    F. Other Issues
IV. Methodology and Discussion of Related Comments
    A. Market and Technology Assessment
    1. Product Classes
    a. Conventional Cooking Tops
    b. Conventional Ovens
    2. Technology Options
    a. Conventional Cooking Tops
    b. Conventional Ovens
    B. Screening Analysis
    1. Screened-Out Technologies
    a. Conventional Cooking Tops
    b. Conventional Ovens
    2. Remaining Technologies
    C. Engineering Analysis
    1. Product Testing and Reverse Engineering
    a. Conventional Cooking Tops
    b. Conventional Ovens
    2. Efficiency Levels
    a. Baseline Efficiency Levels
    b. Incremental Efficiency Levels
    c. Relationship Between IAEC and Oven Cavity Volume
    3. Incremental Manufacturing Production Cost Estimates
    a. Conventional Cooking Tops
    b. Conventional Ovens
    4. Consumer Utility
    a. Conventional Cooking Tops
    b. Conventional Ovens
    D. Markups Analysis
    E. Energy Use Analysis
    F. Life-Cycle Cost and Payback Period Analysis
    1. Product Cost
    2. Installation Cost
    3. Annual Energy Consumption
    4. Energy Prices

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    5. Maintenance and Repair Costs
    6. Product Lifetime
    7. Discount Rates
    8. Energy Efficiency Distribution in the No-New-Standards Case
    9. Payback Period Analysis
    G. Shipments Analysis
    H. National Impact Analysis
    1. Product Efficiency Trends
    2. National Energy Savings
    3. Net Present Value Analysis
    I. Manufacturer Impact Analysis
    1. Overview
    2. GRIM Analysis and Key Inputs
    a. Manufacturer Production Costs
    b. Shipments Projections
    c. Product and Capital Conversion Costs
    d. Markup Scenarios
    3. Discussion of Comments
    a. Discount Rate
    b. Changes in Test Procedure and Manufacturer Interviews
    c. Other Comments
    4. Manufacturer Interviews
    a. Premium Products Tend To Be Less Efficient
    b. Induction Cooking Products
    c. Product Utility
    d. Testing and Certification Burdens
V. Analytical Results and Conclusions
    A. Trial Standard Levels
    B. Economic Justification and Energy Savings
    1. Economic Impacts on Individual Consumers
    a. Life-Cycle Cost and Payback Period
    b. Rebuttable Presumption Payback
    2. Economic Impacts on Manufacturers
    a. Industry Cash Flow Analysis Results
    b. Direct Impacts on Employment
    c. Impacts on Manufacturing Capacity
    d. Impacts on Subgroups of Manufacturers
    e. Cumulative Regulatory Burden
    3. National Impact Analysis
    a. Significance of Energy Savings
    b. Net Present Value of Consumer Costs and Benefits
    C. Proposed Determination
    1. Technological Feasibility
    2. Significant Conservation of Energy
    3. Economic Justification
    4. Summary of Annualized Benefits and Costs of the Proposed 
Standards
VI. Procedural Issues and Regulatory Review
    A. Review Under Executive Order 12866
    B. Review Under Executive Orders 13771 and 13777
    C. Review Under the Regulatory Flexibility Act
    D. Review Under the Paperwork Reduction Act
    E. Review Under the National Environmental Policy Act of 1969
    F. Review Under Executive Order 13132
    G. Review Under Executive Order 12988
    H. Review Under the Unfunded Mandates Reform Act of 1995
    I. Review Under the Treasury and General Government 
Appropriations Act, 1999
    J. Review Under Executive Order 12630
    K. Review Under the Treasury and General Government 
Appropriations Act, 2001
    L. Review Under Executive Order 13211
    M. Information Quality
VII. Public Participation
    A. Submission of Comments
    B. Issues on Which DOE Seeks Comment
VIII. Approval of the Office of the Secretary

I. Synopsis of the Proposed Determination

    Title III, Part B \1\ of EPCA,\2\ established the Energy 
Conservation Program for Consumer Products Other Than Automobiles. (42 
U.S.C. 6291-6309) These products include consumer conventional cooking 
products, and specifically conventional cooking tops \3\ and 
conventional ovens,\4\ the subject of this NOPD. (42 U.S.C. 
6292(a)(10))
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    \1\ For editorial reasons, upon codification in the U.S. Code, 
Part B was redesignated Part A.
    \2\ All references to EPCA in this document refer to the statute 
as amended through America's Water Infrastructure Act of 2018, 
Public Law 115-270 (Oct. 23, 2018).
    \3\ Conventional cooking top means a class of kitchen ranges and 
ovens which is a household cooking appliance consisting of a 
horizontal surface containing one or more surface units which 
include either a gas flame or electric resistance heating. This 
includes any conventional cooking top component of a combined 
cooking product. (10 CFR 430.2)
    \4\ Conventional oven means a class of kitchen ranges and ovens 
which is a household cooking appliance consisting of one or more 
compartments intended for the cooking or heating of food by means of 
either a gas flame or electric resistance heating. It does not 
include portable or countertop ovens which use electric resistance 
heating for the cooking or heating of food and are designed for an 
electrical supply of approximately 120 volts. This includes any 
conventional oven(s) component of a combined cooking product. (10 
CFR 430.2)
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    DOE is issuing this NOPD pursuant to the EPCA requirement that not 
later than 6 years after issuance of any final rule establishing or 
amending a standard, DOE must publish either a notification of 
determination that standards for the product do not need to be amended, 
or a notice of proposed rulemaking (``NOPR'') including new proposed 
energy conservation standards (proceeding to a final rule, as 
appropriate). (42 U.S.C. 6295(m)) Pursuant to the 6-year look-back 
provision, DOE proposed energy conservation standards for conventional 
cooking tops. 80 FR 33030 (June 10, 2015); 81 FR 60784 (Sep. 2, 2016). 
Based on additional analysis and review of comments received, DOE is 
publishing this proposed determination that establishing new and 
amended standards for conventional cooking products, including 
conventional cooking tops, is not needed because standards would not be 
economically justified and would not result in a significant 
conservation of energy.
    For this proposed determination, DOE analyzed consumer conventional 
cooking products, including those subject to standards specified in 10 
CFR 430.32(j)(1)-(2).
    DOE first analyzed the technological feasibility of more energy 
efficient consumer conventional cooking products. For those consumer 
conventional cooking products for which DOE determined higher standards 
to be technologically feasible, DOE estimated energy savings that would 
result from potential energy conservation standards by conducting a 
national impacts analysis (``NIA''). DOE then evaluated whether higher 
standards would be economically justified pursuant to the seven factors 
specified in EPCA.
    Based on the results of the analyses, summarized in section V of 
this document, DOE has tentatively determined that current standards 
for consumer conventional cooking products do not need to be amended.

II. Introduction

    The following section briefly discusses the statutory authority 
underlying this proposed determination, as well as some of the 
historical background relevant to the establishment of standards for 
consumer conventional cooking products.

A. Authority

    EPCA authorizes DOE to regulate the energy efficiency of a number 
of consumer products and certain industrial equipment. Title III, Part 
B of EPCA established the Energy Conservation Program for Consumer 
Products Other Than Automobiles. These products include consumer 
conventional cooking products, and specifically consumer conventional 
cooking tops and conventional ovens, the subject of this document. (42 
U.S.C. 6292(a)(10)) EPCA prescribed energy conservation standards for 
these products (42 U.S.C. 6295(h)(1)), and directs DOE to conduct 
future rulemakings to determine whether to amend these standards. (42 
U.S.C. 6295(h)(2))
    The energy conservation program under EPCA consists essentially of 
four parts: (1) Testing, (2) labeling, (3) the establishment of Federal 
energy conservation standards, and (4) certification and enforcement 
procedures. Relevant provisions of EPCA specifically include 
definitions (42 U.S.C. 6291), test procedures (42 U.S.C. 6293), 
labeling provisions (42 U.S.C. 6294), energy conservation standards (42 
U.S.C. 6295), and the authority to require information and reports from 
manufacturers (42 U.S.C. 6296).
    Subject to certain criteria and conditions, DOE is required to 
develop test procedures to measure the energy efficiency, energy use, 
or estimated annual operating cost of each covered

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product. (42 U.S.C. 6295(o)(3)(A) and 42 U.S.C. 6295(r)) Manufacturers 
of covered products must use the prescribed DOE test procedure as the 
basis for certifying to DOE that their products comply with the 
applicable energy conservation standards adopted under EPCA and when 
making representations to the public regarding the energy use or 
efficiency of those products. (42 U.S.C. 6293(c) and 42 U.S.C. 6295(s)) 
Similarly, DOE must use these test procedures to determine whether the 
products comply with standards adopted pursuant to EPCA. (42 U.S.C. 
6295(s)) The DOE test procedures for consumer conventional cooking 
products were established in title 10 of the Code of Federal 
Regulations (``CFR'') part 430, subpart B, appendix I (``appendix I''). 
However, as discussed further in section III.B of this document, the 
test procedures for the conventional cooking products that are the 
subject of this proposed determination have been withdrawn.
    Federal energy conservation standards for covered products 
generally supersede State laws or regulations concerning energy 
conservation testing, labeling, and standards. (42 U.S.C. 6297(a)-(c)) 
DOE may, however, grant waivers of Federal preemption for particular 
State laws or regulations, in accordance with the procedures and other 
provisions set forth in 42 U.S.C. 6297(d).
    DOE must follow specific statutory criteria for prescribing new or 
amended standards for covered products, including consumer conventional 
cooking products. In prescribing new or amended standards for covered 
products DOE must consider, among other things, the opportunity for 
energy savings, as well as the potential costs to consumers, and 
impacts on consumer choice. Any new or amended standard for a covered 
product must be designed to achieve the maximum improvement in energy 
efficiency that is technologically feasible and economically justified. 
(42 U.S.C. 6295(o)(2)(A)) Furthermore, DOE may not adopt any standard 
that would not result in the significant conservation of energy. (42 
U.S.C. 6295(o)(3)) Moreover, DOE may not prescribe a standard if DOE 
determines by rule that the standard is not technologically feasible or 
economically justified. (42 U.S.C. 6295(o)(3)(B)) In deciding whether a 
standard is economically justified, DOE must determine whether the 
benefits of the standard exceed its burdens. (42 U.S.C. 
6295(o)(2)(B)(i)) DOE must make this determination after receiving 
comments on the proposed standard, and by considering, to the greatest 
extent practicable, the following seven statutory factors:

    (1) The economic impact of the standard on manufacturers and 
consumers of the products subject to the standard;
    (2) The savings in operating costs throughout the estimated 
average life of the covered products in the type (or class) compared 
to any increase in the price, initial charges, or maintenance 
expenses for the covered products that are likely to result from the 
standard;
    (3) The total projected amount of energy (or as applicable, 
water) savings likely to result directly from imposition of the 
standard;
    (4) Any lessening of the utility or the performance of the 
covered products likely to result from imposition of 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 
imposition of the standard;
    (6) The need for national energy and water conservation; and
    (7) Other factors the Secretary of Energy (``Secretary'') 
considers relevant.

(42 U.S.C. 6295(o)(2)(B)(i)(I)-(VII))

    EPCA establishes a rebuttable presumption that a standard is 
economically justified if the Secretary finds that the additional cost 
to the consumer of purchasing a product complying with an energy 
conservation standard level will be less than three times the value of 
the energy savings during the first year that the consumer will receive 
as a result of the standard, as calculated under the applicable test 
procedure. (42 U.S.C. 6295(o)(2)(B)(iii))
    EPCA also contains what is known as an ``anti-backsliding'' 
provision, which prevents the Secretary from prescribing any amended 
standard that either increases the maximum allowable energy use or 
decreases the minimum required energy efficiency of a covered product. 
(42 U.S.C. 6295(o)(1)) Also, the Secretary may not prescribe an amended 
or new standard if interested persons have established by a 
preponderance of the evidence that the standard is likely to result in 
the unavailability in the United States in any covered product type (or 
class) of performance characteristics (including reliability), 
features, sizes, capacities, and volumes that are substantially the 
same as those generally available in the United States. (42 U.S.C. 
6295(o)(4))
    EPCA specifies requirements when promulgating an energy 
conservation standard for type or class of covered product that has two 
or more subcategories. DOE must specify a different standard level than 
that which applies generally to such type or class of products for any 
group of covered products that have the same function or intended use 
if DOE determines that products within such group (A) consume a 
different kind of energy from that consumed by other covered products 
within such type (or class), or (B) have a capacity or other 
performance-related feature which other products within such type (or 
class) do not have and such feature justifies a higher or lower 
standard. (42 U.S.C. 6295(q)(1)) In determining whether a performance-
related feature justifies a different standard for a group of products, 
DOE must consider such factors as the utility to the consumer of such a 
feature and other factors DOE deems appropriate. Id. Any rule 
prescribing such a standard must include an explanation of the basis on 
which such higher or lower level was established. (42 U.S.C. 
6295(q)(2))
    Finally, pursuant to the amendments contained in the Energy 
Independence and Security Act of 2007 (``EISA 2007''), Public Law 110-
140, any final rule for new or amended energy conservation standards 
promulgated after July 1, 2010, is required to address standby mode and 
off mode energy use. (42 U.S.C. 6295(gg)(3)) Specifically, when DOE 
adopts a standard for a covered product after that date, it must, if 
justified by the criteria for adoption of standards under EPCA (42 
U.S.C. 6295(o)), incorporate standby mode and off mode energy use into 
a single standard, or, if that is not feasible, adopt a separate 
standard for such energy use for that product. (42 U.S.C. 
6295(gg)(3)(A)-(B)) Although DOE currently does not have test 
procedures for consumer conventional cooking products,\5\ previous 
versions of appendix I addressed standby mode and off mode energy use. 
In the absence of a test procedure, in this analysis DOE considers 
energy use as measured under the previous test procedure appendix I in 
its determination of whether energy conservation standards need to be 
amended.
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    \5\ See 85 FR 50757 (August 18, 2020).
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    DOE must periodically review its already established energy 
conservation standards for a covered product no later than 6 years from 
the issuance of a final rule establishing or amending a standard for a 
covered product. (42 U.S.C. 6295(m)) This 6-year look-back provision 
requires that DOE publish either a determination that standards do not 
need to be amended or a NOPR, including new proposed standards 
(proceeding to a final rule, as appropriate). (42 U.S.C. 6295(m)(1)) 
EPCA further provides that, not later than 3 years after the issuance 
of a final determination not to amend standards, DOE must publish 
either a notification of determination that standards for the

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product do not need to be amended, or a NOPR including new proposed 
energy conservation standards (proceeding to a final rule, as 
appropriate). (42 U.S.C. 6295(m)(3)(B)) DOE must make the analysis on 
which a determination is based publicly available and provide an 
opportunity for written comment. (42 U.S.C. 6295(m)(2))
    A determination that amended standards are not needed must be based 
on consideration of whether amended standards will result in 
significant conservation of energy, are technologically feasible, and 
are cost effective. (42 U.S.C. 6295(m)(1)(A) and 42 U.S.C. 6295(n)(2)) 
Additionally, as discussed above, any new or amended energy 
conservation standard prescribed by the Secretary for any type (or 
class) of covered product shall be designed to achieve the maximum 
improvement in energy efficiency which the Secretary determines is 
technologically feasible and economically justified. 42 U.S.C. 
6295(o)(2(A) Among the factors DOE considers in evaluating whether a 
proposed level is economically justified includes whether the proposed 
standard at that level is cost effective, as defined under 42 U.S.C. 
6295(o)(2)(B)(i)(II). Under 42 U.S.C. 6295(o)(2)(B)(i)(II), an 
evaluation of cost-effectiveness requires DOE to consider savings in 
operating costs throughout the estimated average life of the covered 
products in the type (or class) compared to any increase in the price, 
initial charges, or maintenance expenses for the covered products that 
are likely to result from the standard. (42 U.S.C. 6295(n)(2) and 42 
U.S.C. 6295(o)(2)(B)(i)(II))
    DOE is publishing this NOPD in satisfaction of the requirements 
under EPCA.

B. Background

1. Current Standards
    In a final rule published on April 8, 2009 (``April 2009 Final 
Rule''), DOE prescribed the current energy conservation standards for 
consumer conventional cooking products to prohibit constant burning 
pilots for all gas cooking products (i.e., gas cooking products both 
with or without an electrical supply cord) manufactured on or after 
April 9, 2012. 74 FR 16040. DOE's regulations, codified at 10 CFR 
430.2, define conventional cooking tops and conventional ovens as 
categories of cooking products. As noted in the April 2009 Final Rule, 
DOE specified conventional cooking tops and conventional ovens as 
separate categories of cooking products, and noted that any cooking top 
or oven standard would apply to the individual components of a 
conventional range. 74 FR 16040, 16053.
2. History of Standards Rulemaking for Consumer Conventional Cooking 
Products
    The National Appliance Energy Conservation Act of 1987 (``NAECA''), 
Public Law 100-12, amended EPCA to establish prescriptive standards for 
gas cooking products, requiring gas ranges and ovens with an electrical 
supply cord that are manufactured on or after January 1, 1990, not to 
be equipped with a constant burning pilot light. (42 U.S.C. 6295(h)(1)) 
NAECA also directed DOE to conduct two cycles of rulemakings to 
determine if more stringent or additional standards were justified for 
kitchen ranges and ovens. (42 U.S.C. 6295(h)(2))
    DOE undertook the first cycle of these rulemakings and published a 
final rule on September 8, 1998, which found that no standards were 
justified for conventional electric cooking products at that time. 63 
FR 48038. In addition, partially due to the difficulty of conclusively 
demonstrating at that time that elimination of standing pilots for 
conventional gas cooking products without an electrical supply cord was 
economically justified, DOE did not include amended standards for 
conventional gas cooking products in the final rule. 63 FR 48038, 
48039-48040. For the second cycle of rulemakings, DOE published the 
April 2009 Final Rule amending the energy conservation standards for 
consumer conventional cooking products to prohibit constant burning 
pilots for all gas cooking products (i.e., gas cooking products both 
with or without an electrical supply cord) manufactured on or after 
April 9, 2012. DOE decided to not adopt energy conservation standards 
pertaining to the cooking efficiency of conventional electric cooking 
products because it determined that such standards would not be 
technologically feasible and economically justified at that time. 74 FR 
16040, 16085.\6\
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    \6\ As part of the April 2009 Final Rule, DOE decided not to 
adopt energy conservation standards pertaining to the cooking 
efficiency of microwave ovens. DOE also published a final rule on 
June 17, 2013 adopting energy conservation standards for microwave 
oven standby mode and off mode. 78 FR 36316. DOE is not considering 
energy conservation standards for microwave ovens as part of this 
rulemaking.
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    As noted, EPCA requires that, not later than 6 years after the 
issuance of a final rule establishing or amending a standard, DOE 
publish a NOPR proposing new standards or a notification of 
determination that the existing standards do not need to be amended. 
(42 U.S.C. 6295(m)(1)) On February 12, 2014, DOE published a request 
for information (``RFI'') notice (the ``February 2014 RFI'') to 
initiate the mandatory review process imposed by EPCA. 79 FR 8337. As 
part of the RFI, DOE sought input from the public to assist with its 
determination on whether new or amended standards pertaining to 
consumer conventional cooking products are warranted. 79 FR 8337, 8339. 
In making this determination, DOE must evaluate whether new or amended 
standards would (1) yield a significant savings in energy use and (2) 
be both technologically feasible and economically justified. (42 U.S.C. 
6295(m)(1)(B) and 42 U.S.C. 6295(o)(3)(B))
    On June 10, 2015, DOE published a NOPR (the ``June 2015 NOPR'') 
proposing new and amended energy conservation standards for consumer 
conventional ovens. 80 FR 33030. The June 2015 NOPR also announced that 
a public meeting would be held on July 14, 2015 at DOE headquarters in 
Washington, DC At this meeting, DOE presented the methodologies and 
results of the analyses set forth in the NOPR, and interested parties 
that participated in the public meeting discussed a variety of topics. 
As part of the June 2015 NOPR, DOE also noted that it was deferring its 
decision regarding whether to adopt amended energy conservation 
standards for conventional cooking tops, pending further study. 80 FR 
33030, 33038-33040.
    Prior to the June 2015 NOPR, DOE issued two notices requesting 
comment on the test procedures for cooking products. In both the test 
procedure NOPR published on January 30, 2013 (78 FR 6232, the ``January 
2013 TP NOPR'') and the supplemental test procedure NOPR published on 
December 3, 2014 (79 FR 71894, the ``December 2014 TP SNOPR''), DOE 
proposed amendments to the cooking products test procedure in appendix 
I that would allow for the testing of active mode energy consumption of 
induction cooking tops. After reviewing public comments on the December 
2014 TP SNOPR, conducting further discussions with manufacturers, and 
performing additional analyses, DOE decided that further study was 
required before an updated cooking top test procedure could be 
established that produces test results which measure energy use during 
a representative average use cycle for all types of cooking tops, is 
repeatable and reproducible, and is not unduly burdensome to conduct. 
80 FR 37954 (July 2, 2015) (``July 2015 TP Final Rule''). Test 
procedures for cooking tops were again proposed, as

[[Page 80986]]

discussed in section III.B of this document, in an SNOPR on August 22, 
2016. (81 FR 57374, the ``August 2016 TP SNOPR''). Subsequently a final 
rule was published on December 16, 2016 (the ``December 2016 TP Final 
Rule'') adopting amended test procedures for conventional cooking tops 
that include, among other things, test methods for induction cooking 
tops and gas cooking tops with high burner input rates. 81 FR 91418. 
This rule was subsequently withdrawn on August 18, 2020 as a result of 
a petition from the Association of Home Appliance Manufacturers 
(``AHAM''). As discussed in more detail in section III.B of this 
document, DOE withdrew the December 2016 TP Final Rule because it could 
not be certain that the results of the conventional cooking tops test 
procedure were accurate.
    On September 2, 2016, prior to the now withdrawn test procedure 
amendments being adopted in the December 2016 TP Final Rule, DOE 
published in the Federal Register an SNOPR (the ``September 2016 
SNOPR'') proposing new and amended energy conservation standards for 
conventional cooking tops based on the amendments to the test procedure 
as proposed in the August 2016 TP SNOPR. 81 FR 60784. In the September 
2016 SNOPR, DOE also revised its proposal from the June 2015 NOPR for 
conventional ovens from a performance-based standard to a prescriptive 
standard given that DOE had proposed to repeal the test procedure for 
conventional ovens in the August 2016 TP SNOPR. 81 FR 60784, 60793-
60794. (The repeal of the test procedure for conventional ovens is 
discussed in greater detail in section III.B of this document.) In 
response to the September 2016 SNOPR, DOE received a number of comments 
from interested parties and considered these comments in preparing this 
NOPD. The commenters are summarized in Table II-1. Relevant comments, 
and DOE's responses, are provided in the appropriate sections of this 
document.

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[[Page 80988]]


    A parenthetical reference at the end of a comment quotation or 
paraphrase provides the location of the item in the public record.\7\
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    \7\ The parenthetical reference provides a reference for 
information located in the docket of DOE's rulemaking to consider 
energy conservation standards for consumer conventional cooking 
products. (Docket No. EERE-2014-BT-STD-0005, which is maintained at 
www.regulations.gov/#!docketDetail;D=EERE-2014-BT-STD-0005). The 
references are arranged as follows: (Commenter name, comment docket 
ID number, page of that document).
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III. General Discussion

    DOE developed this proposed determination after considering oral 
and written comments, data, and information from interested parties 
that represent a variety of interests. This NOPD addresses issues 
raised by these commenters.

A. Product Classes and Scope of Coverage

    When evaluating and establishing energy conservation standards, DOE 
divides covered products into product classes by the type of energy 
used or by capacity or other performance-related features that justify 
differing standards. In making a determination whether a performance-
related feature justifies a different standard, DOE must consider such 
factors as the utility of the feature to the consumer and other factors 
DOE determines are appropriate. (42 U.S.C. 6295(q))
    As discussed in section II.A of this document, 42 U.S.C. 
6292(a)(10) of EPCA covers kitchen ranges and ovens, or ``cooking 
products.'' DOE's regulations define ``cooking products'' as consumer 
products that are used as the major household cooking appliances. They 
are designed to cook or heat different types of food by one or more of 
the following sources of heat: Gas, electricity, or microwave energy. 
Each product may consist of a horizontal cooking top containing one or 
more surface units \8\ and/or one or more heating compartments. 10 CFR 
430.2.
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    \8\ The term surface unit refers to burners for gas cooking tops 
and electric resistance heating elements or inductive heating 
elements for electric cooking tops.
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    DOE defines a combined cooking product as a household cooking 
appliance that combines a conventional cooking top and/or conventional 
oven with other appliance functionality, which may or may not include 
another cooking product. (10 CFR part 430, subpart B, appendix I) In 
this analysis, DOE is not treating combined cooking products as a 
distinct product category and is not basing its product classes on such 
a category. Instead, DOE is evaluating energy conservation standards 
for conventional cooking tops and conventional ovens separately. 
Because combined cooking products consist, in part, of a cooking top 
and/or oven, the cooking top and oven standards would continue to apply 
to the individual components of the combined cooking product.
    As part of the 2009 standards rulemaking for consumer conventional 
cooking products, DOE did not consider energy conservation standards 
for consumer conventional gas cooking products with higher burner input 
rates, including products marketed as ``commercial-style'' or 
``professional-style,'' due to a lack of available data for determining 
efficiency characteristics of those products. DOE considered such 
products to be gas cooking tops with burner input rates greater than 
14,000 British thermal units per hour (``Btu/h'') and gas ovens with 
burner input rates greater than 22,500 Btu/h. 74 FR 16040, 16054 (Apr. 
8, 2009); 72 FR 64432, 64444-64445 (Nov. 15, 2007). DOE also stated 
that the DOE cooking products test procedures at that time may not 
adequately measure performance of gas cooking tops and ovens with 
higher burner input rates. 72 FR 64432, 64444-64445 (Nov. 15, 2007).
    As part of the February 2014 RFI, DOE stated that it tentatively 
planned to consider energy conservation standards for all consumer 
conventional cooking products, including commercial-style gas cooking 
products with higher burner input rates. In addition, DOE stated that 
it may consider developing test procedures for these products and 
determine whether separate product classes are warranted. 79 FR 8337, 
8340 (Feb. 12, 2014).
    As discussed in section III.B of this document, DOE amended the 
conventional cooking top test procedure in appendix I to, in part, 
measure the energy use of commercial-style gas cooking tops with high 
burner input rates. See 81 FR 91418 (Dec. 16, 2016). However, on August 
18, 2020, as a result of a petition from AHAM and data received in 
response to that petition, DOE withdrew the conventional cooking top 
test procedure in appendix I after determining that it was not 
representative of energy use or efficiency during an average use cycle 
and was overly burdensome to conduct. 85 FR 50757 (``August 2020 TP 
Final Rule''). DOE also repealed the conventional oven test procedure 
in the December 2016 TP Final Rule. See 81 FR 91418 (Dec. 16, 2016). In 
the absence of Federal test procedures to measure the energy use or 
energy efficiency of conventional cooking tops and conventional ovens, 
DOE is evaluating prescriptive design requirements for the control 
system of conventional electric smooth element cooking tops and 
conventional ovens, including commercial-style ovens with higher burner 
input rates. DOE would maintain the existing prescriptive design 
requirements for all conventional gas cooking products, noting that the 
current definitions for ``conventional cooking top'' and ``conventional 
oven'' in 10 CFR 430.2 already cover commercial-style gas cooking 
products with higher burner input rates, as these products are 
household cooking appliances with surface units or compartments 
intended for the cooking or heating of food by means of a gas flame. As 
discussed in section IV.A.1 of this document, DOE is not proposing a 
separate product class for gas cooking tops and ovens with higher 
burner input rates that are marketed as ``commercial-style'' and, as a 
result, DOE is not proposing separate definitions for these products.

B. Test Procedure

    EPCA sets forth generally applicable criteria and procedures for 
DOE's adoption and amendment of test procedures. (42 U.S.C. 6293) 
Manufacturers of covered products must use these test procedures to 
certify to DOE that their product complies with energy conservation 
standards and to quantify the efficiency of their product. (42 U.S.C. 
6295(s) and 42 U.S.C. 6293(c)) DOE will finalize a test procedure 
establishing methodologies used to evaluate proposed energy 
conservation standards at least 180 days prior to publication of a NOPR 
proposing new or amended energy conservation standards. Section 8(d) of 
appendix A to 10 CFR part 430, subpart C (``Process Rule'').
    DOE established test procedures in a final rule published in the 
Federal Register on May 10, 1978. 43 FR 20108, 20120-20128. DOE revised 
its test procedures for cooking products to more accurately measure 
their efficiency and energy use, and published the revisions as a final 
rule in 1997. 62 FR 51976 (Oct. 3, 1997). These test procedure 
amendments included: (1) A reduction in the annual useful cooking 
energy; (2) a reduction in the number of self-clean oven cycles per 
year; and (3) incorporation of portions of International 
Electrotechnical Commission (``IEC'') Standard 705-1988, ``Methods for 
measuring the performance of microwave ovens for household and similar 
purposes,'' and Amendment 2-1993 for the testing of

[[Page 80989]]

microwave ovens. Id. The test procedures for consumer conventional 
cooking products established provisions for determining estimated 
annual operating cost, cooking efficiency (defined as the ratio of 
cooking energy output to cooking energy input), and energy factor 
(defined as the ratio of annual useful cooking energy output to total 
annual energy input). 10 CFR 430.23(i); appendix I. These provisions 
for consumer conventional cooking products were not used for compliance 
with any energy conservation standards because the standards to date 
have been design requirements; in addition, there is no EnergyGuide \9\ 
labeling program for cooking products.
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    \9\ For more information on the EnergyGuide labeling program, 
see: www.access.gpo.gov/nara/cfr/waisidx_00/16cfr305_00.html.
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    DOE subsequently conducted a rulemaking to address standby and off 
mode energy consumption, as well as certain active mode (i.e., fan-only 
mode) testing provisions, for consumer conventional cooking products. 
DOE published a final rule on October 31, 2012 (77 FR 65942, the 
``October 2012 TP Final Rule''), adopting standby and off mode 
provisions that satisfied the EPCA requirement that DOE include 
measures of standby mode and off mode power in its test procedures for 
residential products, if technically feasible. (42 U.S.C. 
6295(gg)(2)(A))
    The January 2013 TP NOPR proposed amendments to appendix I that 
would allow for testing the active mode energy consumption of induction 
cooking products; i.e., conventional cooking tops equipped with 
induction heating technology for one or more surface units on the 
cooking top. DOE proposed to incorporate induction cooking tops by 
amending the definition of ``conventional cooking top'' to include 
induction heating technology. Furthermore, DOE proposed to require for 
all cooking tops the use of test equipment compatible with induction 
technology. Specifically, DOE proposed to replace the solid aluminum 
test blocks specified at that time in the test procedure for cooking 
tops with hybrid test blocks comprising two separate pieces: an 
aluminum body and a stainless-steel base. 78 FR 6232, 6234 (Jan. 30, 
2013).
    In the December 2014 TP SNOPR, DOE modified its proposal from the 
January 2013 TP NOPR in response to comments from interested parties to 
specify different test equipment that would allow for measuring the 
energy efficiency of induction cooking tops, and would include an 
additional test block size for electric surface units with large 
diameters (both induction and electric resistance). 79 FR 71894. In 
addition, DOE proposed methods to test non-circular electric surface 
units, electric surface units with flexible concentric cooking zones, 
and full-surface induction cooking tops. Id. In the December 2014 TP 
SNOPR, DOE also proposed amendments to add a larger test block size to 
test gas cooking top burners with higher input rates. Id.
    In the December 2014 TP SNOPR, DOE also proposed methods for 
measuring conventional oven volume, clarification that the existing 
oven test block must be used to test all ovens regardless of input 
rate, and a method to measure the energy consumption and efficiency of 
conventional ovens equipped with an oven separator. 79 FR 71894 (Dec. 
3, 2014). DOE published the July 2015 TP Final Rule adopting the test 
procedure amendments discussed above for conventional ovens only. 80 FR 
37954.
    As discussed in the June 2015 NOPR for conventional ovens, DOE 
received a significant number of comments raising issues with the 
repeatability and reproducibility of the proposed hybrid test block 
test method for cooking tops in response to the December 2014 TP SNOPR 
and in separate interviews conducted with consumer conventional cooking 
product manufacturers in February and March of 2015. 80 FR 33030, 
33039-33040 (June 10, 2015). A number of manufacturers that produce and 
sell products in Europe supported the use of a water-heating test 
method and harmonization with IEC Standard 60350-2 Edition 2, 
``Household electric appliances--Part 2: Hobs--Method for measuring 
performance'' \10\ (``IEC Standard 60350-2'') for measuring the energy 
consumption of electric cooking tops. These manufacturers stated that 
the test methods in IEC Standard 60350-2 are compatible with all 
electric cooking top types, specify additional cookware diameters to 
account for the variety of surface unit sizes on the market, and use 
test loads that represent real-world cooking top loads. Efficiency 
advocates also recommended that DOE require water-heating test methods 
to produce a measure of cooking efficiency for conventional cooking 
tops that is more representative of actual cooking performance than the 
hybrid test block method. 80 FR 33030, 33039-33040 (June 10, 2015). For 
these reasons, DOE decided to defer its decision regarding adoption of 
energy conservation standards for conventional cooking tops until a 
representative, repeatable and reproducible test method for cooking 
tops was finalized. 80 FR 33030, 33040 (June 10, 2015).
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    \10\ Hob is the British English term for cooking top.
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    DOE published the August 2016 TP SNOPR that proposed amendments to 
the test procedures for conventional cooking tops. Given the feedback 
from interested parties discussed above and based on the additional 
testing and analysis conducted for the test procedure rulemaking, in 
the August 2016 TP SNOPR, DOE withdrew its proposal for testing 
conventional cooking tops with a hybrid test block. Instead, DOE 
proposed to amend its test procedure to incorporate by reference the 
relevant sections of European Standard EN 60350-2:2013 ``Household 
electric cooking appliances Part 2: Hobs--Methods for measuring 
performance'' \11\ (``EN 60350-2:2013''), which provide a water-heating 
test method to measure the energy consumption of electric cooking tops. 
The test method specifies the quantity of water to be heated in a 
standardized test vessel whose size is selected based on the diameter 
of the surface unit under test. The test vessels specified in EN 60350-
2:2013 are compatible with all cooking top technologies and surface 
unit diameters available on the U.S. market. 81 FR 57374, 57381-57384.
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    \11\ The test methods in EN 60350-2:2013 are based on the same 
test methods in the draft version of IEC 60350-2 available at the 
time of the December 2016 TP Final Rule. As noted in that final 
rule, based on the few comments received during the development of 
the draft, DOE expected that the IEC procedure, once finalized, 
would retain the same basic test method as contained in EN 60350-
2:2013. 81 FR 91418, 91421 (Dec. 16, 2016).
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    DOE also proposed to extend the test methods provided in EN 60530-
2:2013 to measure the energy consumption of gas cooking tops by 
correlating test equipment diameter to burner input rate, including 
input rates that exceed 14,000 Btu/h. 81 FR 57374, 57385-57386. In 
addition, DOE also proposed in the August 2016 TP SNOPR to include 
methods for both electric and gas cooking tops to calculate the annual 
energy consumption (``AEC'') and integrated annual energy consumption 
(``IAEC'') to account for the proposed water-heating test method. 81 FR 
57374, 57387-57388.
    In the August 2016 TP SNOPR, DOE proposed to repeal the 
conventional oven test procedure. DOE determined that the conventional 
oven test procedure may not accurately represent consumer use as it 
favors conventional ovens with low thermal mass and does not capture 
cooking performance-related benefits due to increased thermal mass of 
the oven cavity. 81 FR 57374, 57378-57379.

[[Page 80990]]

    For the September 2016 SNOPR, DOE evaluated its proposed energy 
conservation standards for conventional cooking tops based on the 
proposed cooking top test procedure discussed above. 81 FR 60784, 60797 
(Sept. 2, 2016). For conventional ovens, due to the uncertainties in 
analyzing a performance-based standard using oven testing provisions 
that DOE proposed to remove from the test procedure, as discussed 
above, DOE proposed in the September 2016 SNOPR prescriptive design 
requirements for the control system of conventional ovens. 81 FR 60784, 
60794.
    AHAM, AGA and APGA opposed consideration of proposed standards in 
the absence of a final test procedure, stating that the technological 
feasibility and economic justification of proposed standards can only 
be evaluated with a finalized test procedure. (AHAM, No. 53 at pp. 1-2; 
AHAM, No. 64 at p. 3; AGA and APGA, No. 68 at p. 2) AHAM, AGA and APGA 
asserted that 42 U.S.C. 6295(r) requires that test procedures are 
finalized in a sufficient period of time before energy conservation 
standards are proposed. (AHAM, No. 53 at pp. 1-2; AHAM, No. 64 at p. 3; 
AGA and APGA, No. 68 at p. 2) AHAM, AGA and APGA also argued that DOE 
has not followed section 7 of the then-current Process Improvement 
Rule, which stated that needed modifications to test procedures will be 
identified in consultation with experts and interested parties early in 
the screening stage of the standards development process and any 
necessary modifications will be proposed before issuance of an advanced 
notice of proposed rulemaking (``ANOPR'') in the standards process. In 
addition, these commenters stated that the then-current Process 
Improvement Rule specified that final modified test procedures will be 
issued prior to the NOPR on proposed standards. (AHAM, No. 53 at pp. 2-
3; AGA and APGA, No. 68 at p. 2)
    AHAM, AGA and APGA asserted that, even with the 30-day extension, 
the comment period for the September 2016 SNOPR was inadequate for 
industry to analyze and provide meaningful comment on the impacts of 
the proposed standards given the uncertainty in the test procedure. 
AHAM added that it was particularly difficult to comment on the 
proposed standards because manufacturers do not regularly conduct 
energy tests because there is not a standard that requires them to do 
so. (AHAM, No. 52 at pp. 3-4; AHAM, No. 64 at p. 3; AGA and APGA, No. 
68 at pp. 1-2)
    AHAM reiterated the list of issues with the test procedure 
presented in its comments on the August 2016 TP SNOPR \12\ concerning 
the repeatability and reproducibility of tests results. AHAM urged DOE 
to issue a notice of data availability and/or supplemental proposed 
test procedure with a 30- to 60-day comment period to address AHAM's 
comments on the test procedure. AHAM added that DOE should finalize the 
test procedure before proposing standards, and provide 180 days after 
finalizing the test procedure before closing the comment period on a 
proposed standard to provide sufficient time for manufacturers to test 
enough models to evaluate the potential impact of proposed standards. 
AHAM stated that if DOE does not, however, issue an additional SNOPR on 
the proposed standard, DOE should at minimum explain how any additional 
changes to the test procedure impact the proposed standards and provide 
interested parties with an additional 60 days to comment on the 
proposed standards. (AHAM, No. 53 at pp. 5-6; AHAM, No. 64 at pp. 1, 3-
4) AHAM also commented that if DOE proceeds with standards for cooking 
tops using the test procedure proposed in the August 2016 TP SNOPR, DOE 
should adjust the tolerance for enforcement from 5 percent to 20 
percent, consistent with the variation in test results observed in 
AHAM's round robin test program. (AHAM, No 64 at p. 21)
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    \12\ AHAM's comment on the August 2016 TP SNOPR is available at: 
https://www.regulations.gov/document?D=EERE-2012-BT-TP-0013-0030.
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    Sub-Zero similarly commented that the proposed test procedure 
produces significant variation in test results and, thus, it is not 
feasible to adopt standards for conventional cooking tops. Sub-Zero 
commented that DOE should work with industry to develop a test 
procedure that produces repeatable and reproducible results. (Sub-Zero, 
No. 66 at p. 1) AGA and APGA also commented that adding what it stated 
is a complicated and unproven test procedure for gas cooking tops does 
not appear to be warranted for the testing and verification burden that 
would be placed on the industry, as well as the consumers that will pay 
for the added cost of testing and compliance. (AGA and APGA, No. 68 at 
p. 3)
    On December 16, 2016, DOE published a final rule repealing the test 
procedures for conventional ovens for the reasons discussed above, and 
adopting the test procedure amendments for conventional cooking tops 
proposed in the August 2016 TP SNOPR, with the following modifications:
     Aligning the test methods for electric surface units with 
flexible concentric cooking zones (also referred to as multi-ring 
surface units) with the provisions in EN 60350-2:2013; \13\
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    \13\ EN 60350-2:2013 requires testing of the largest measured 
diameter of multi-ring surface units only, unless an additional test 
vessel category is needed to meet the test vessel selection 
requirements in EN 60350-2:2013. In that case, one of the smaller-
diameter settings of the multi-ring surface unit may be tested if it 
fulfills the test vessel category requirement.
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     Clarifying the simmering temperature requirements, 
temperature sensor requirements, and surface unit diameter measurement; 
and
     Maintaining the existing installation requirements in 
appendix I. 81 FR 91418.
    The Administrative Procedure Act (``APA''), 5 U.S.C. 551 et seq., 
provides among other things, that ``[e]ach agency shall give an 
interested person the right to petition for the issuance, amendment, or 
repeal of a rule.'' (5 U.S.C. 553(e)) DOE received a petition from AHAM 
requesting that DOE reconsider its December 2016 TP Final Rule. In its 
petition, AHAM requested that DOE undertake a rulemaking to withdraw 
the test procedure for conventional cooking tops, while maintaining the 
repeal of the oven test procedure that was part of the Final Rule. In 
the interim, AHAM sought an immediate stay of the effectiveness of the 
December 2016 TP Final Rule, including the requirement that 
manufacturers use the final test procedure to make energy-related 
claims. In its petition, AHAM claimed that its analyses showed that the 
test procedure is not representative for gas cooking tops and, for gas 
and electric cooking tops, has such a high level of variation it will 
not produce accurate results for certification and enforcement purposes 
and will not assist consumers in making purchasing decisions based on 
energy efficiency. DOE published AHAM's petition on April 25, 2018, and 
requested comments and information on whether DOE should undertake a 
rulemaking to consider the proposal contained in the petition. 80 FR 
17944.
    On August 9, 2019, DOE published a NOPR (``the August 2019 TP 
NOPR'') proposing to withdraw the test procedure for conventional 
cooking tops after evaluating new information and data produced by AHAM 
and other interested parties that suggested that the test procedure 
yields inconsistent results that are indicative of the test not being 
representative of energy use or efficiency during an average use cycle. 
As such, DOE determined that it would be unduly burdensome to subject 
those manufacturers seeking to make

[[Page 80991]]

representations as to the efficiency of their products to the 
requirement to conduct such tests while DOE investigated the issues 
presented. 84 FR 39211.
    On August 18, 2020, DOE published the August 2020 TP Final Rule 
withdrawing the test procedure for conventional cooking tops. 85 FR 
50757. Testing conducted by DOE and outside parties using the test 
procedure yielded inconsistent results. 85 FR 50757, 50763. DOE had not 
identified the cause of the inconsistencies, and noted that its data to 
date is limited. Id. DOE concluded, therefore, that the test procedure 
was not representative of energy use or efficiency during an average 
use cycle. Id. DOE also determined that it would be unduly burdensome 
to leave the test procedure in place and require cooking top tests to 
be conducted using that test method without further study to resolve 
those inconsistencies. Id.
    Under EPCA, any new or amended energy conservation standard must 
include, where applicable, test procedures prescribed in accordance 
with the test procedure provisions of the Act. (42 U.S.C. 6295(r)) As 
discussed previously, DOE repealed the conventional cooking top and 
conventional oven test procedures and is evaluating new prescriptive 
design requirements for the control system of conventional ovens and 
conventional electric smooth cooking tops, while proposing to maintain 
the existing prescriptive design requirements for conventional gas 
ovens and conventional gas cooking tops. As a result, the prescriptive 
design requirements would not require manufacturers to test using the 
DOE test procedure for conventional cooking tops and conventional ovens 
to certify products.

C. Technological Feasibility

1. General
    In evaluating potential amendments to energy conservation 
standards, DOE conducts a screening analysis based on information 
gathered on all current technology options and prototype designs that 
could improve the efficiency of the products or equipment that are the 
subject of the determination. As the first step in such an analysis, 
DOE develops a list of technology options for consideration in 
consultation with manufacturers, design engineers, and other interested 
parties. DOE then determines which of those means for improving 
efficiency are technologically feasible. DOE considers technologies 
incorporated in commercially available products or in working 
prototypes to be technologically feasible. Sections 6(c)(3)(i) and 
7(b)(1) of the Process Rule.
    After DOE has determined that particular technology options are 
technologically feasible, it further evaluates each technology option 
in light of the following additional screening criteria: (1) 
Practicability to manufacture, install, and service; (2) adverse 
impacts on product utility or availability; (3) adverse impacts on 
health or safety; and (4) unique-pathway proprietary technologies. 
Sections 6(c)(3)(ii)-(iv) and 7(b)(2)-(5) of the Process Rule. Section 
IV.B of this document discusses the results of the screening analysis 
for consumer conventional cooking products, particularly the designs 
DOE considered, those it screened out, and those that are the basis for 
the standards considered in this proposed determination. For further 
details on the screening analysis for this proposed determination, see 
chapter 4 of the technical support document (``TSD'') \14\ for this 
NOPD.
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    \14\ The TSD is available in the docket for this rulemaking at 
http://www.regulations.gov/#!docketDetail;D=EERE-2014-BT-STD-0005.
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2. Maximum Technologically Feasible Levels
    As when DOE proposes to adopt an amended standard for a type or 
class of covered product, in this analysis it must determine the 
maximum improvement in energy efficiency or maximum reduction in energy 
use that is technologically feasible for such product. (42 U.S.C. 
6295(p)(1)) Accordingly, in the engineering analysis, DOE determined 
the maximum technologically feasible (``max-tech'') improvements in 
energy efficiency for consumer conventional cooking products, using the 
design parameters for the most efficient products available on the 
market or in working prototypes. The max-tech levels that DOE 
determined for this analysis are described in section IV.C of this 
proposed determination and in chapter 5 of the TSD for this NOPD.

D. Energy Savings

1. Determination of Savings
    For each trial standard level (``TSL''), DOE projected energy 
savings from application of the TSL to consumer conventional cooking 
products purchased in the 30-year period that begins in the year of 
compliance with the potential standards (2023-2052).\15\ The savings 
are measured over the entire lifetime of products purchased in the 
previous 30-year period. DOE quantified the energy savings attributable 
to each TSL as the difference in energy consumption between each 
standards case and the no-new-standards case. The no-new-standards case 
represents a projection of energy consumption that reflects how the 
market for a product would likely evolve in the absence of new or 
amended energy conservation standards.
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    \15\ Each TSL is composed of specific efficiency levels for each 
product class. The TSLs considered for this NOPD are described in 
section V.A of this document. DOE also presents a sensitivity 
analysis that considers impacts for products shipped in a 9-year 
period.
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    DOE used its NIA spreadsheet models to estimate national energy 
savings (``NES'') from potential new or amended standards for consumer 
conventional cooking products. The NIA spreadsheet model (described in 
section IV.H of this document) calculates energy savings in terms of 
site energy, which is the energy directly consumed by products at the 
locations where they are used. For electricity, DOE reports NES in 
terms of primary energy savings, which is the savings in the energy 
that is used to generate and transmit the site electricity. For natural 
gas, the primary energy savings are considered to be equal to the site 
energy savings. DOE also calculates NES in terms of full-fuel-cycle 
(``FFC'') energy savings. The FFC metric includes the energy consumed 
in extracting, processing, and transporting primary fuels (i.e., coal, 
natural gas, petroleum fuels), and thus presents a more complete 
picture of the impacts of energy conservation standards.\16\ DOE's 
approach is based on the calculation of an FFC multiplier for each of 
the energy types used by covered products or equipment. For more 
information on FFC energy savings, see section IV.H.2 of this document.
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    \16\ The FFC metric is discussed in DOE's statement of policy 
and notice of policy amendment. 76 FR 51282 (Aug. 18, 2011), as 
amended at 77 FR 49701 (Aug. 17, 2012).
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2. Significance of Savings
    In determining whether amended standards are needed, DOE must 
consider whether such standards will result in significant conservation 
of energy. (42 U.S.C. 6295(m)(1)(A)) The term ``significant'' is not 
defined in EPCA. DOE has established a significance threshold for 
energy savings. Section 6(b) of the now-current Process Rule. In 
evaluating the significance of energy savings, DOE conducts a two-step 
approach that considers both an absolute site energy savings threshold 
and a threshold that is

[[Page 80992]]

a percent reduction in the covered product energy use. Id. DOE first 
evaluates the projected energy savings from a max-tech standard over a 
30-year period against a 0.3 quadrillion British thermal units 
(``quads'') of site energy threshold. Section 6(b)(2) of the now-
current Process Rule. If the 0.3 quads-threshold is not met, DOE then 
compares the max-tech savings to the total energy usage of the covered 
equipment to calculate a percentage reduction in energy usage. Section 
6(b)(3) of the Process Rule. If this comparison does not yield a 
reduction in site energy use of at least 10 percent over a 30-year 
period, DOE proposes that no significant energy savings would likely 
result from setting new or amended standards. Section 6(b)(4) of the 
now-current Process Rule. The two-step approach allows DOE to ascertain 
whether a potential standard satisfies EPCA's significant energy 
savings requirements in 42 U.S.C. 6295(o)(3)(B) to ensure that DOE 
avoids setting a standard that ``will not result in significant 
conservation of energy.''
    EPCA defines ``energy efficiency'' as the ratio of the useful 
output of services from a consumer product to the energy use of such 
product, measured according to the Federal test procedures. (42 U.S.C. 
6291(5), emphasis added) EPCA defines ``energy use'' as the quantity of 
energy directly consumed by a consumer product at point of use, as 
measured by the Federal test procedures. (42 U.S.C. 6291(4)) Further, 
EPCA uses a household energy consumption metric as a threshold for 
setting standards for new covered products. (42 U.S.C. 6295(l)(1)) 
Given this context, DOE relies on site energy as the appropriate metric 
for evaluating the significance of energy savings.

E. Economic Justification

1. Specific Criteria
    As noted above, EPCA provides seven factors to be evaluated in 
determining whether a potential energy conservation standard is 
economically justified. (42 U.S.C. 6295(o)(2)(B)(i)(I)-(VII)) The 
following sections discuss how DOE has addressed each of those seven 
factors in this proposed determination.
a. Economic Impact on Manufacturers and Consumers
    In determining the impacts of potential new or amended standards on 
manufacturers, DOE conducts a manufacturer impact analysis (``MIA''), 
as discussed in section IV.I of this document. DOE first uses an annual 
cash-flow approach to determine the quantitative impacts. This step 
includes both a short-term assessment--based on the cost and capital 
requirements during the period between when a regulation is issued and 
when entities must comply with the regulation--and a long-term 
assessment over a 30-year period. The industry-wide impacts analyzed 
include (1) the industry net present value (``INPV''), which values the 
industry on the basis of expected future cash flows; (2) cash flows by 
year; (3) changes in revenue and income; and (4) other measures of 
impact, as appropriate. Second, DOE analyzes and reports the impacts on 
different types of manufacturers, including impacts on small 
manufacturers. Third, DOE considers the impact of standards on domestic 
manufacturer employment and manufacturing capacity, as well as the 
potential for standards to result in plant closures and loss of capital 
investment. Finally, DOE takes into account cumulative impacts of 
various DOE regulations and other regulatory requirements on 
manufacturers.
    For individual consumers, measures of economic impact include the 
changes in life-cycle cost (``LCC'') and simple payback period 
(``PBP'') associated with new or amended standards. These measures are 
discussed further in the following section. For consumers in the 
aggregate, DOE also calculates the national net present value (``NPV'') 
of the consumer costs and benefits expected to result from particular 
standards.
b. Savings in Operating Costs Compared to Increase in Price (LCC and 
PBP)
    EPCA requires DOE to consider the savings in operating costs 
throughout the estimated average life of the covered product in the 
type (or class) compared to any increase in the price of, or in the 
initial charges for, or maintenance expenses of, the covered product 
that are likely to result from a standard. (42 U.S.C. 
6295(o)(2)(B)(i)(II)) DOE conducts this comparison in its LCC and PBP 
analysis.
    The LCC is the sum of the purchase price of a product (including 
its installation) and the operating cost (including energy, 
maintenance, and repair expenditures) discounted over the lifetime of 
the product. The LCC analysis requires a variety of inputs, such as 
product prices, product energy consumption, energy prices, maintenance 
and repair costs, product lifetime, and discount rates appropriate for 
consumers. To account for uncertainty and variability in specific 
inputs, such as product lifetime and discount rate, DOE uses a 
distribution of values, with probabilities attached to each value.
    The PBP is the estimated amount of time (in years) it takes 
consumers to recover the increased purchase cost (including 
installation) of a more-efficient product through lower operating 
costs. DOE calculates the PBP by dividing the change in purchase cost 
due to a more-stringent standard by the change in annual operating cost 
for the year that standards are assumed to take effect.
    For its LCC and PBP analysis, DOE assumes that consumers will 
purchase the covered products in the first full year of compliance with 
new or amended standards. The LCC savings for the considered efficiency 
levels are calculated relative to the case that reflects projected 
market trends in the absence of new or amended standards. DOE's LCC and 
PBP analysis is discussed in further detail in section IV.F of this 
document.
c. Energy Savings
    Although significant conservation of energy is a separate statutory 
requirement for adopting an energy conservation standard, EPCA requires 
DOE, in determining the economic justification of a standard, to 
consider the total projected energy savings that are expected to result 
directly from the standard. (42 U.S.C. 6295(o)(2)(B)(i)(III)) As 
discussed in section IV.H of this document, DOE uses the NIA 
spreadsheet models to project national energy savings.
d. Lessening of Utility or Performance of Products
    In establishing product classes, and in evaluating design options 
and the impact of potential standard levels, DOE evaluates potential 
standards that would not lessen the utility or performance of the 
considered products. (42 U.S.C. 6295(o)(2)(B)(i)(IV)) Based on data 
available to DOE, the standards considered in this document would not 
reduce the utility or performance of consumer conventional cooking 
products.
e. Impact of Any Lessening of Competition
    EPCA directs DOE to consider the impact of any lessening of 
competition, as determined in writing by the Attorney General, that is 
likely to result from a proposed standard. (42 U.S.C. 
6295(o)(2)(B)(i)(V)) It also directs the 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

[[Page 80993]]

nature and extent of the impact. (42 U.S.C. 6295(o)(2)(B)(ii)) In the 
event DOE were to propose amended standards, DOE would transmit a copy 
of the proposed rule to the Attorney General with a request that the 
Department of Justice (``DOJ'') provide its determination on this 
issue. DOE would then publish and respond to the Attorney General's 
determination in the final rule. Currently, DOE is not proposing to 
amend the energy conservation standards for consumer conventional 
cooking products so there is no proposed rule to submit to the Attorney 
General for review.
f. Need for National Energy Conservation
    In evaluating the need for national energy conservation, DOE 
expects that energy savings from amended standards would likely provide 
improvements to the security and reliability of the Nation's energy 
system. Reductions in the demand for electricity also may result in 
reduced costs for maintaining the reliability of the Nation's 
electricity system. Energy savings from amended standards also would 
likely result in environmental benefits in the form of reduced 
emissions of air pollutants and greenhouse gases primarily associated 
with fossil-fuel based energy production. Consistent with its past 
approach,\17\ because DOE has initially concluded amended standards for 
consumer conventional cooking products would not result in significant 
energy savings and would not be economically justified, DOE did not 
conduct a utility impact analysis or emissions analysis for this 
document.
---------------------------------------------------------------------------

    \17\ See 81 FR 71325 (Oct. 17, 2016); see also 84 FR 17626 (Dec. 
27, 2019).
---------------------------------------------------------------------------

g. Other Factors
    In determining whether an energy conservation standard is 
economically justified, DOE may consider any other factors that the 
Secretary deems to be relevant. (42 U.S.C. 6295(o)(2)(B)(i)(VII)) To 
the extent DOE identifies any relevant information regarding economic 
justification that does not fit into the other categories described 
previously, DOE could consider such information under ``other 
factors.''
2. Rebuttable Presumption
    As set forth in 42 U.S.C. 6295(o)(2)(B)(iii), EPCA creates a 
rebuttable presumption that an energy conservation standard is 
economically justified if the additional cost to the consumer of a 
product that meets the standard is less than three times the value of 
the first year's energy savings resulting from the standard, as 
calculated under the applicable DOE test procedure. DOE's LCC and PBP 
analyses generate values used to calculate the effect that proposed 
energy conservation standards would have on the payback period for 
consumers. These analyses include, but are not limited to, the 3-year 
payback period contemplated under the rebuttable-presumption test. In 
addition, DOE routinely conducts an economic analysis that considers 
the full range of impacts to consumers, manufacturers, the Nation, and 
the environment, as required under 42 U.S.C. 6295(o)(2)(B)(i). The 
results of this analysis serve as the basis for DOE's evaluation of the 
economic justification for a potential standard level (thereby 
supporting or rebutting the results of any preliminary determination of 
economic justification). The rebuttable presumption payback calculation 
is discussed in section IV.F of this document.

F. Other Issues

    In response to the September 2016 SNOPR, the SoCal IOUs and the 
Joint Commenters supported performance-based standards for conventional 
cooking tops, stating that the August 2016 TP SNOPR proposed test 
methods to fully capture energy consumption for these products. (SoCal 
IOUs, No. 67 at p. 2; Joint Commenters, No. 70 at p. 1) Due to the 
repeal of the testing requirements for conventional cooking tops in the 
August 2020 TP Final Rule, DOE did not evaluate performance-based 
standards in this document.
    The Joint Commenters opposed prescriptive standards for the power 
supply of conventional cooking tops. The Joint Commenters stated that 
while switch-mode power supplies (``SMPS'') are generally more 
efficient than linear power supplies, the standby power consumption of 
cooking tops with SMPS is not necessarily lower than that of cooking 
tops with linear power supplies based on DOE's test sample. The Joint 
Commenters also commented that a prescriptive standard that only 
required cooking tops to be equipped with a SMPS would eliminate 
significant energy savings from the proposed performance-based standard 
level that included energy savings from the automatic power-down design 
option for electric smooth cooking tops. (Joint Commenters, No. 70 at 
p. 2)
    GE commented that for the proposed standard for electric smooth 
cooking tops, which corresponds to the automatic power-down technology 
option, the estimated standby power of 0.25 Watts (``W'') is 
unrepresentative of products available on the market and that none of 
its models would meet this level. AHAM and GE commented that DOE based 
the reduction in standby power consumption on a stand-alone cooking 
top, not a combined cooking product such as a range. AHAM and GE added 
that, according to the test procedure proposed in the August 2016 TP 
SNOPR, combined cooking products must include standby energy from the 
other components. According to AHAM and GE, the energy savings 
estimated by DOE are not achievable when accounting for the standby 
power consumption of a combined cooking product and would result in a 
loss of consumer utility because manufacturers would have to remove the 
clock function to meet the low standby power consumption levels. (AHAM, 
No. 64 at p. 10; GE, No. 72 at p. 2)
    As discussed in chapter 5 of the TSD for this NOPD, DOE observed in 
its testing that the standby power for electric smooth cooking tops 
without an automatic power-down feature was similar among the units in 
its test sample, which included both stand-alone cooking tops and 
cooking tops in combined cooking products. Furthermore, DOE observed an 
electric smooth cooking top that implements an automatic power-down 
feature. The automatic power-down design option achieves very low 
standby power levels (approximately 0.25 W) by turning off most of the 
power-consuming components on the control board once a period of user 
inactivity has elapsed. DOE determined through product teardowns that 
the power supply requirements for all of the electric smooth cooking 
tops in its test sample are similar, including those in the unit that 
implements the automatic power-down feature. As a result, DOE 
identified no technical barrier to implementing this design option to 
power down most of the power-consuming components on the control board 
in any of its sample units and, therefore, concludes that similar 
levels of energy savings due to standby power improvements can be 
achieved for all electric smooth cooking tops. However, DOE also 
recognizes that a standby power level associated with the automatic 
power-down technology option may not be achievable while powering the 
continuous clock display typically used in combined cooking products, 
such as ranges. Therefore, as discussed in section V.A of this 
document, DOE evaluated prescriptive design standards in this NOPD for 
electric smooth cooking tops that would allow for a continuous clock 
display,

[[Page 80994]]

and accordingly, would not require the elimination of clocks from 
products.
    AGA and APGA commented that the proposed standards in the September 
2016 SNOPR for conventional gas cooking tops and ovens would produce 
little real energy savings. In particular, AGA and APGA opposed DOE's 
proposal for gas cooking tops to eliminate the current prescriptive 
standard prohibiting constant burning pilot lights and replace it with 
a performance standard because the test procedure had not yet been 
finalized or vetted by industry. AGA and APGA asserted that the limited 
testing conducted by DOE was not adequate given the concerns about the 
test procedure. (AGA and APGA, No. 68 at pp. 3, 4)
    The SoCal IOUs supported DOE's analysis and proposed standards, 
with the exception of those for gas cooking tops. The SoCal IOUs stated 
that under TSL 2, 26.1 percent of gas cooking top consumers would be 
adversely impacted and have an average payback period of 19.7 years. 
The SoCal IOUs recommended adopting TSL 2, with the exception of 
specifying standards at the baseline efficiency level for gas cooking 
tops. According to the SoCal IOUs, this approach would result in a 
fractional reduction in national energy savings of 0.06 quads. (SoCal 
IOUs, No. 67 at p. 3)
    As discussed in section III.B of this document, DOE withdrew the 
testing provisions for conventional cooking tops in the August 2020 TP 
Final Rule and, therefore, is not evaluating performance standards for 
conventional cooking tops, including gas cooking tops, in this NOPD.
    Spire commented that the higher efficiency of induction cooking 
tops, being technologically feasible and economically justified, 
obligates DOE to mandate their use for electric cooking products. 
(Spire, No. 61 at p. 4) As discussed in section V.C.3 of this document, 
DOE has initially determined that the electric smooth cooking top 
efficiency level associated with induction heating is not economically 
justified.
    AHAM stated that, based on its comments regarding improved contact 
conductance (discussed in section IV.A.2.a of this document), the 
additional testing conducted by AHAM members (discussed in section 
IV.C.1.a of this document), and the estimated 19 percent of consumers 
that would experience a net cost at DOE's proposed standard level, 
DOE's proposed standard for electric coil cooking tops would not 
achieve actual energy savings in the field and could eliminate these 
products from the market. AHAM opposed standards for electric coil 
cooking tops and recommended that DOE maintain the ``no standard'' 
standard for this product class. (AHAM, No. 64 at p. 20) As discussed 
in section IV.A.2.a of this document, DOE is no longer considering 
improved contact conductance as a technology option. In addition, as 
discussed in section IV.C.2 of this document, DOE updated its 
efficiency levels to account for the additional data submitted by AHAM. 
Based on these revisions to the analysis for this NOPD, DOE is not 
evaluating standards for electric coil cooking tops, as discussed in 
section IV.C.2.b of this document.
    The CA IOUs submitted a test report from their testing of gas and 
electric ovens. The CA IOUs noted that their test sample included a 
range of manufacturers, cavity sizes, and cooking modes. The CA IOUs 
conducted testing to evaluate pre-heating, steady-state (temperature) 
operation, broiling, and self-cleaning. In addition, the CA IOUs 
conducted testing according to the previous version of the test 
procedure. The CA IOUs asserted, based on their test results, that 
energy consumption was correlated to a number of factors, including: 
Cavity size, insulation, oven input rate, and whether the product was 
commercial-style. The CA IOUs noted that convection mode did not have a 
clear correlation to cooking efficiency, but most ovens had a higher 
efficiency in convection mode. The CA IOUs also noted that their test 
results did not show a correlation between energy consumption and 
retail price. (CA IOUs, No. 59) DOE appreciates the test data submitted 
by the CA IOUs. As discussed in section IV.C.2.c of this document, DOE 
similarly determined that conventional oven energy consumption was 
related to the oven cavity volume and developed relationships between 
IAEC and oven cavity volume. As discussed in section III.B of this 
document, DOE repealed the test procedures for conventional ovens. DOE, 
therefore, evaluated potential standards based on prescriptive design 
options for conventional ovens for this NOPD, as discussed in section 
IV.C.2 of this document.
    Spire stated that a number of DOE's assumptions disadvantage 
cooking products that use natural gas. (Spire, No. 61 at p. 7) Spire 
identified DOE's assumptions with regard to the discount rate, marginal 
energy costs, appliance lifetimes, installation costs, and incremental 
maintenance costs, as resulting in the bias. DOE notes generally that 
it based its analysis on all available data for both gas and electric 
conventional cooking products, much of which was submitted by appliance 
manufacturers. DOE conducts its analysis to accurately represent, to 
the extent possible, the manufacture and consumer usage in the United 
States of both gas and electric conventional cooking products.

IV. Methodology and Discussion of Related Comments

    This section addresses the analyses DOE has performed for this 
proposed determination with regard to consumer conventional cooking 
products. Separate subsections address each component of DOE's 
analyses.
    DOE used several analytical tools to estimate the impact of 
potential energy conservation standards. The first tool is a 
spreadsheet that calculates the LCC savings and PBP of potential energy 
conservation standards. The NIA uses a second spreadsheet tool that 
provides shipments projections and calculates NES and NPV of total 
consumer costs and savings expected to result from potential energy 
conservation standards. DOE uses the third spreadsheet tool, the 
Government Regulatory Impact Model (``GRIM''), to assess manufacturer 
impacts of potential standards. These three spreadsheet tools are 
available on the DOE website for this rulemaking: http://www.regulations.gov/#!docketDetail;D=EERE-2014-BT-STD-0005.

A. Market and Technology Assessment

    DOE develops information in the market and technology assessment 
that provides an overall picture of the market for the products 
concerned, including the purpose of the products, the industry 
structure, manufacturers, market characteristics, and technologies used 
in the products. This activity includes both quantitative and 
qualitative assessments, based primarily on publicly-available 
information. The subjects addressed in the market and technology 
assessment for this proposed determination include (1) a determination 
of the scope of the rulemaking and product classes, (2) manufacturers 
and industry structure, (3) existing efficiency programs, (4) shipments 
information, (5) market and industry trends, and (6) technologies or 
design options that could improve the energy efficiency of consumer 
conventional cooking products. The key findings of DOE's market 
assessment are summarized in the following sections. See chapter 3 of 
the TSD for this NOPD for further discussion of the market and 
technology assessment.

[[Page 80995]]

1. Product Classes
    When evaluating and establishing energy conservation standards, DOE 
divides covered products into product classes by the type of energy 
used or by capacity or other performance-related features that 
justifies a different standard. In making a determination whether a 
performance-related feature justifies a different standard, DOE must 
consider such factors as the utility to the consumer of the feature and 
other factors DOE determines are appropriate. (42 U.S.C. 6295(q))
a. Conventional Cooking Tops
    During the previous energy conservation standards rulemaking for 
cooking products, DOE evaluated product classes for conventional 
cooking tops based on energy source (i.e., gas or electric). These 
distinctions initially yielded two conventional cooking product 
classes: (1) Gas cooking tops and (2) electric cooking tops. For 
electric cooking tops, DOE determined that the ease of cleaning smooth 
elements provides enhanced consumer utility over coil elements. Because 
smooth elements typically use more energy than coil elements, DOE 
defined two separate product classes for electric cooking tops. DOE 
defined the following product classes for consumer conventional cooking 
tops in the April 2009 Final Rule TSD (``2009 TSD''): \18\
---------------------------------------------------------------------------

    \18\ The TSD from the previous residential cooking products 
standards rulemaking is available at http://www.regulations.gov/#!documentDetail;D=EERE-2006-STD-0127-0097.
---------------------------------------------------------------------------

     Electric cooking tops--low or high wattage open (coil) 
elements;
     Electric cooking tops--smooth elements; and
     Gas cooking tops--conventional burners.
Induction Heating
    In the September 2016 SNOPR, DOE proposed to maintain the product 
classes for conventional cooking tops from the previous standards 
rulemaking, as presented above. DOE also proposed to consider induction 
heating as a technology option for electric smooth cooking tops rather 
than as a separate product class. DOE noted that induction heating 
provides the same basic function of cooking or heating food as heating 
by gas flame or electric resistance, and that the installation options 
available to consumers are also the same for both cooking products with 
induction and with electric resistance heating. In addition, in 
considering whether there are any performance-related features that 
justify a higher energy use standard to establish a separate product 
class, DOE noted in the September 2016 SNOPR that the utility of speed 
of cooking, ease of cleaning, and requirements for specific cookware 
for induction cooking tops do not appear to be uniquely associated with 
higher energy use compared to other smooth cooking tops with electric 
resistance heating elements. 81 FR 60784, 60800-60801 (Sept. 2, 2016).
    The SoCal IOUs supported DOE's analysis conducted for induction 
cooking tops and DOE's decision to consider induction heating as a 
technology option for electric smooth cooking tops rather than a 
separate product class because induction heating provides the same 
utility for electric smooth cooking tops as does electric resistance 
heating. (SoCal IOUs, No. 67 at pp. 3-4) AHAM agreed with DOE's 
determination that the ease of cleaning smooth elements is a consumer 
utility that justifies a separate product class from electric coil 
cooking tops. However, AHAM stated that it does not currently have 
enough information to support or oppose DOE's proposal to consider 
induction heating as a technology option for electric smooth cooking 
tops rather than as a separate product class. AHAM expressed concern 
whether the test procedure proposed in the August 2016 TP SNOPR for 
cooking tops would accurately measure the differences in energy use 
between induction and other smooth element cooking tops. (AHAM, No. 64 
at p. 5)
    As discussed in section III.B of this document, DOE withdrew the 
test procedure for conventional cooking tops in the August 2020 TP 
Final Rule. However, as discussed in section IV.C.2.b of this document, 
DOE determined that its testing using the water-heating method 
previously adopted in the December 2016 TP Final Rule provided measures 
of energy consumption that represent the energy use of both smooth-
electric resistance and smooth-induction cooking tops with relative 
accuracy. For the reasons presented in the September 2016 SNOPR and 
discussed above, DOE is maintaining consideration of induction cooking 
tops as a technology option for electric smooth cooking tops and not as 
a separate product class.
Commercial-Style Cooking Tops
    Based on DOE's review of conventional gas cooking tops available on 
the market, DOE determined for the September 2016 SNOPR that products 
marketed as commercial-style cannot be distinguished from standard 
residential-style products based on performance characteristics or 
consumer utility. While conventional gas cooking tops marketed as 
commercial-style have more than one burner rated above 14,000 Btu/h and 
cast-iron grates, approximately 50 percent of cooking top models 
marketed as residential-style also have one or more burners rated above 
14,000 Btu/h and cast-iron grates.
    As part of the September 2016 SNOPR, DOE considered whether 
separate product classes for commercial-style gas cooking tops with 
higher burner input rates are warranted by comparing the test energy 
consumption of individual surface units in a sample of cooking tops 
tested by DOE. For the September 2016 SNOPR analysis, DOE conducted 
testing of gas surface units in a sample of twelve gas cooking tops, 
which included six products marketed as commercial-style, and 
determined that there was no statistically significant correlation 
between burner input rate and the ratio of surface unit energy 
consumption to test load mass \19\ for cooking tops marketed as either 
residential-style or commercial-style. DOE noted that its testing 
showed that this efficiency ratio for gas cooking tops is more closely 
related to burner and grate design rather than input rate. 81 FR 60784, 
60801-60802 (Sept. 2, 2016).
---------------------------------------------------------------------------

    \19\ Because the mass of the test load depends on the input rate 
of the burner, the test energy consumption must be normalized for 
comparison. The higher the ratio of test energy consumption to test 
load mass, the less efficient the surface unit.
---------------------------------------------------------------------------

    DOE recognized in the September 2016 SNOPR that the presence of 
certain features, such as heavy cast iron grates and multiple high 
input rate burners, may help consumers perceive a difference between 
commercial-style and residential-style gas cooking top performance. 
However, DOE stated that it was not aware of clearly-defined and 
consistent design differences and corresponding utility provided by 
commercial-style gas cooking tops as compared to residential-style gas 
cooking tops. 81 FR 60784, 60803 (Sept. 2, 2016). Although DOE's 
testing indicated there is a difference in energy consumption between 
residential-style and commercial-style gas cooking tops, this 
difference could not be correlated to any specific utility provided to 
consumers. Moreover, DOE stated that is not aware of an industry test 
standard that evaluates cooking performance and that would quantify the 
utility provided by these products. Id.
    For these reasons, DOE did not propose in the September 2016 SNOPR 
to establish a separate product class for gas cooking tops marketed as 
commercial-style or conventional gas cooking tops with higher burner 
input

[[Page 80996]]

rates. 81 FR 60784, 60803 (Sept. 2, 2016).
    AHAM stated that, due to the length of the comment period and the 
limited resources that could be dedicated to testing, it did not have 
enough information to support or oppose DOE's proposal to not define a 
separate product class for commercial-style cooking tops. Moreover, 
AHAM commented that because of its concerns that the test procedure 
does not produce repeatable and reproducible results and concerns with 
using a test procedure designed for electric cooking tops to measure 
gas cooking top energy use, it could not determine whether test results 
are accurate or assess whether separate product classes are warranted. 
(AHAM, No. 64 at p. 6)
    Sub-Zero and Felix Storch both urged DOE to establish separate 
product classes for commercial-style cooking tops. (Sub-Zero, No. 66 at 
p. 2; Felix Storch, No. 62 at p. 1) Sub-Zero stated that high-
performance \20\ gas cooking tops include design features that enhance 
cooking performance (rapid boiling, precision simmering, and even heat 
distribution) while adhering to safety requirements, but that 
negatively impact efficiency as compared to conventional residential-
style cooking tops. According to Sub-Zero, gas burner design attributes 
such as safety, performance, and efficiency are systematic, and that a 
change to one attribute significantly affects the others. (Sub-Zero, 
No. 66 at pp. 2, 4-5) The design features associated with high-
performance gas cooking tops and the utility that Sub-Zero and Miele 
claimed these features provide include:
---------------------------------------------------------------------------

    \20\ Sub-Zero stated that ``high performance'' cooking is a 
better descriptor of this segment than ``commercial-style'' or 
``professional-style.''
---------------------------------------------------------------------------

     High input rate burners with large diameters provide 
faster heat up times and allow consumers to use larger professional 
cooking vessels while maintaining even heat distribution (Sub-Zero, No. 
66 at p. 5);
     High input rate burners with high levels of flame 
controllability, specifically high turndown ratios, allow for both 
simmering of foods such as chocolates and sauces and faster heat up 
times (Sub-Zero, No. 66 at p. 5);
     Greater spacing between the gas flame, grate, and cooking 
vessel is required for high input rate burners than for low input rate 
burners to meet performance and safety requirements, specifically even 
heat distribution and reduction of carbon monoxide (``CO''). Reducing 
the spacing between the gas flame and the cooking vessel can increase 
efficiency, but flame quenching due to flame impingement and contact 
with the grate/cooking vessel can lead to increased CO emissions and 
combustion by-products. Designing high performance products with safe 
combustion gases provides an inherent constraint to the efficiency 
level that can be attained (Sub-Zero, No. 66 at pp. 5-6);
     Heavy cast iron grates allow for better heat distribution 
to cooking vessels while also providing the strength required to 
support large loads and increased product longevity. (Sub-Zero, No. 66 
at p. 6) Heavier cast iron grates also retain more heat once the burner 
is turned down during simmer or shut off. (Miele, No. 60 at p. 2; Sub-
Zero, No. 66 at pp. 5-6)
    Sub-Zero commented that the features listed above deliver superior 
performance by allowing consumers to use a wider range of cooking 
methods that differ significantly from how the average consumer uses a 
consumer conventional cooking product. (Sub-Zero, No. 66 at p. 2) Sub-
Zero also commented that high performance cooking tops typically employ 
a range of burner inputs to allow consumers the ability to cook foods 
that require searing on one burner and foods that require melting 
temperatures on another burner. (Sub-Zero, No. 66 at p. 4) Miele 
provided similar comments as Sub-Zero regarding the features that 
distinguish cooking methods used with commercial-style cooking tops 
compared to residential-style cooking tops, such as the added mass and 
heat retention of the grates for improved temperature controllability. 
(Miele, No. 60 at pp. 1-2) Both Sub-Zero and Miele stated that their 
consumers often saut[eacute] at very high burner outputs, manipulate 
the pans to mix the ingredients like professional chefs, flame the 
contents, and keep most, if not all, the burners in the cooking top 
firing together when cooking. (Miele, No. 60 at p. 2; Sub-Zero, No. 66 
at p. 2) Miele added that commercial-style models may be equipped with 
specialty burners such as a grill or griddle, not covered in the 
proposed standards, that are used by consumers together with the 
adjoining regular burners. Miele stated that the heat generated by 
specialty burners is not captured in the test procedure but could 
potentially provide a significant amount of heat energy to the 
adjoining grates prior to the ignition and use of the adjoining 
burners. Furthermore, Miele claimed that the vigorous actions of 
professional-style cooking require the support structure of the heavy 
grates typical of commercial-style cooking tops. (Miele, No. 60 at p. 
1)
    Sub-Zero suggested that DOE establish a separate product class for 
residential gas cooking tops that have an average burner input rate of 
at least 14,000 Btu/h and a grate mass of at least 4 pounds per burner. 
Sub-Zero claimed that its suggested product class definition was based 
on its research of product marketing, utility, and performance of 
residential gas cooking products. (Sub-Zero, No. 66 at p. 3)
    Based on DOE's testing, including the additional testing conducted 
for this NOPD and discussed in section IV.C.1 of this document, DOE did 
not identify a correlation between measured energy consumption of 
conventional gas cooking products and any specific utility provided to 
consumers. While DOE recognizes the presence of certain commercial-
style features described by manufacturers may allow consumers to cook 
with a wide variety of cooking methods, manufacturers have not provided 
consumer usage data demonstrating that consumers of commercial-style 
cooking tops and residential-style cooking tops employ significantly 
different cooking methods during a typical cooking cycle. Moreover, 
manufacturers have not provided evidence that consumers of commercial-
style cooking tops would use more burners on a cooking top during a 
single cooking cycle than consumers of residential-style cooking tops. 
DOE notes that there are many residential-style cooking tops with one 
to two high input rate burners and continuous cast iron grates that 
provide consumers with the ability to sear food at high temperatures 
and simmer at low temperatures.
    For these reasons, DOE is not evaluating a separate product class 
for gas cooking tops marketed as commercial-style or conventional gas 
cooking tops with higher burner input rates. However, as discussed in 
section IV.C.3.a of this document, DOE conducted its engineering 
analysis consistent with products currently available on the market and 
is not evaluating amendments to the current prescriptive standards for 
gas cooking tops; this will maintain the features available in 
conventional cooking tops marketed as commercial-style (e.g., multiple 
high input rate burners, cast iron gates, etc.) that may be used to 
differentiate these products in the marketplace. In addition, the 
standards considered in this proposed determination are the same as 
those currently in effect and thus would not alter the safety of 
existing commercial-style gas cooking tops in terms of combustion 
products or emissions.

[[Page 80997]]

b. Conventional Ovens
    During the first energy conservation standards rulemaking for 
cooking products, DOE evaluated product classes for conventional ovens 
based on energy source (i.e., gas or electric). These distinctions 
initially yielded two conventional oven product classes: (1) Gas ovens 
and (2) electric ovens. DOE more recently determined that the type of 
oven-cleaning system is a utility feature that affects performance. DOE 
found that standard ovens and ovens using a catalytic continuous-
cleaning process use roughly the same amount of energy. On the other 
hand, self-clean ovens use a pyrolytic process that provides enhanced 
consumer utility with lower overall energy consumption as compared to 
either standard or catalytically lined ovens. Therefore, in the April 
2009 Final Rule analysis described in the 2009 TSD, DOE defined the 
following product classes for conventional ovens:
     Electric ovens--standard oven with or without a catalytic 
line;
     Electric ovens--self-clean oven;
     Gas ovens--standard oven with or without a catalytic line; 
and
     Gas ovens--self-clean oven.
Self-Cleaning Technology
    Based on DOE's review of conventional gas ovens available on the 
U.S. market, and on manufacturer interviews and testing conducted as 
part of the engineering analysis, DOE noted in the June 2015 NOPR that 
the self-cleaning function of a self-clean oven may employ methods 
other than a high-temperature pyrolytic cycle to perform the cleaning 
action.\21\ 80 FR 33030, 33043 (June 10, 2015). DOE clarified that a 
conventional self-clean electric or gas oven is an oven that has a 
user-selectable mode separate from the normal baking mode, not intended 
to heat or cook food, which is dedicated to cleaning and removing 
cooking deposits from the oven cavity walls. Id. As part of the 
September 2016 SNOPR, DOE stated that it is not aware of any 
differences in consumer behavior in terms of the frequency of use of 
the self-clean function that would be predicated on the type of self-
cleaning technology rather than on cleaning habits or cooking usage 
patterns that are not dependent on the type of technology. As a result, 
DOE did not consider establishing separate product classes based on the 
type of self-cleaning technology. 81 FR 60784, 60804 (Sept. 2, 2016). 
DOE did not receive any comments on the September 2016 SNOPR regarding 
product classes for different self-cleaning technologies. As a result, 
for the reasons discussed previously, DOE is not considering separate 
product classes based on the type of self-cleaning technology.
---------------------------------------------------------------------------

    \21\ DOE noted that it is aware of a type of self-cleaning oven 
that uses a proprietary oven coating and water to perform a self-
clean cycle with a shorter duration and at a significantly lower 
temperature setting. The self-cleaning cycle for these ovens, unlike 
catalytically-lined standard ovens that provide continuous cleaning 
during normal baking, still have a separate self-cleaning mode that 
is user-selectable.
---------------------------------------------------------------------------

Commercial-Style Ovens
    With regard to gas oven burner input rates, DOE noted in the June 
2015 NOPR that based on its review of the consumer conventional gas 
ovens available on the market, residential-style gas ovens typically 
have an input rate of 16,000 to 18,000 Btu/h, whereas residential gas 
ovens marketed as commercial-style typically have burner input rates 
ranging from 22,500 to 30,000 Btu/h.\22\ 80 FR 33030, 33043 (June 10, 
2015). Additional review of both the residential-style and commercial-
style gas oven cavities indicated that there is significant overlap in 
oven cavity volume between the two oven types. Standard residential-
style gas oven cavity volumes range from 2.5 to 5.6 cubic feet 
(``ft\3\'') and gas ovens marketed as commercial-style have cavity 
volumes ranging from 3.0 to 6.0 ft\3\. Sixty percent of the commercial-
style models surveyed had cavity volumes between 4.0 and 5.0 ft\3\, 
while fifty percent of the standard models had cavity volumes between 
4.0 and 5.0 ft\3\. The primary differentiating factor between the two 
oven types was burner input rate, which is greater than 22,500 Btu/h 
for commercial-style gas ovens. Id.
---------------------------------------------------------------------------

    \22\ However, DOE noted that many gas ranges, while marketed as 
commercial- or professional-style and having multiple surface units 
with high input rates, did not have a gas oven with a burner input 
rate above 22,500 Btu/h.
---------------------------------------------------------------------------

    DOE conducted testing for the June 2015 NOPR using the version of 
the test procedure later adopted in the July 2015 TP Final Rule to 
determine whether commercial-style gas ovens with higher burner input 
rates warrant establishing a separate product class. DOE evaluated the 
cooking efficiency of eight conventional gas ovens, including five 
ovens with burners rated at 18,000 Btu/h or less and the remaining 
three with burner input rates ranging from 27,000 Btu/h to 30,000 Btu/
h. 80 FR 33030, 33043 (June 10, 2015). DOE's testing showed that the 
measured cooking efficiencies for ovens with burner input rates above 
22,500 Btu/h were lower than for ovens with ratings below 22,500 Btu/h, 
even after normalizing cooking efficiency to a fixed cavity volume. DOE 
also noted that the conventional gas ovens with higher burner input 
rates in its test sample were marketed as commercial-style and had 
greater total thermal mass, including heavier racks and thicker cavity 
walls, even after normalizing for cavity volume. DOE's testing of a 
30,000 Btu/h oven suggested that much of the energy input to 
commercial-style ovens with higher burner input rates goes to heating 
the added mass of the cavity, rather than the test load, resulting in 
relatively lower measured efficiency when measured according to the 
test procedure adopted in the July 2015 TP Final Rule. 80 FR 33030, 
33043-33044. DOE also investigated the time it took each oven in the 
test sample to heat the test load to a final test temperature of 234 
degrees Fahrenheit (``[deg]F'') above its initial temperature, as 
specified in the DOE test procedure in appendix I at the time of the 
testing. DOE's testing showed that gas ovens with burner input rates 
greater than 22,500 Btu/h do not heat the test load significantly 
faster than the ovens with lower burner input rates, and two out of the 
three units with the higher burner input rates took longer than the 
average time to heat the test load. Therefore, DOE concluded in the 
June 2015 NOPR that there is no unique utility associated with faster 
cook times that is provided by gas ovens with burner input rates 
greater than 22,500 Btu/h. 80 FR 33030, 33045.
    Based on DOE's testing, reverse engineering, and additional 
discussions with manufacturers, DOE posited in the June 2015 NOPR that 
the major differentiation between conventional gas ovens with lower 
burner input rates and those with higher input rates, including those 
marketed as commercial-style, was design and construction related to 
aesthetics rather than improved cooking performance. Further, DOE did 
not identify any unique utility conferred by commercial-style gas 
ovens. For the reasons discussed above, DOE did not propose to 
establish a separate product class for commercial-style gas ovens with 
higher burner input rates. 80 FR 33030, 33045 (June 10, 2015).
    As part of the September 2016 SNOPR, to further address whether 
commercial-style ovens provide a unique utility that would warrant 
establishing a separate product class, DOE conducted additional 
interviews with manufacturers of commercial-style cooking products and 
reviewed additional commercial-style test data. While these data 
demonstrated a difference in energy consumption between residential-
style and

[[Page 80998]]

commercial-style ovens when measured according to the test procedure 
adopted in the July 2015 TP Final Rule, this difference could not be 
correlated to any specific utility provided to consumers. Moreover, DOE 
stated that it is not aware of an industry test standard that evaluates 
cooking performance and that would quantify the utility provided by 
these products. DOE also noted that all conventional ovens, regardless 
of whether or not the product is marketed as commercial-style, must 
meet the same safety standards for the construction of the oven. 
American National Standards Institute (``ANSI'') Z21.1 ``Household 
Cooking Gas Appliances'' (``ANSI Z21.1''), Section 1.21.1, requires 
that the oven structure, and specifically the baking racks, have 
sufficient strength to sustain a load of up to 25 pounds depending on 
the width of the rack. A similar standard (Underwriters Laboratories 
(``UL'') 858 ``Household Electric Ranges'' (``UL 858'')) exists for 
electric ovens. 81 FR 60784, 60805-60806 (Sept. 2, 2016).
    DOE also observed as part of the September 2016 SNOPR that many of 
the design features identified by manufacturers as unique to 
commercial-style ovens and that may impact the energy consumption, such 
as extension racks, convection fans, cooling fans, and hidden bake 
elements, are also found in residential-style products. DOE noted that 
the presence of these features, along with thicker oven cavity walls 
and higher burner input rates, may help consumers perceive a difference 
between commercial-style and residential-style ovens. However, DOE 
stated in the September 2016 SNOPR that it was not aware of a clearly-
defined and consistent design difference and corresponding utility 
provided by commercial-style ovens as compared to residential-style 
ovens. For these reasons, DOE did not propose in the September 2016 
SNOPR to establish a separate product class for commercial-style ovens. 
81 FR 60784, 60806 (Sept. 2, 2016).
    Sub-Zero supported a differentiation based on utility between high-
performance ovens and residential-style ovens. (Sub-Zero, No. 66 at p. 
2) However, Sub-Zero asserted there could potentially be confusion if 
DOE defines a high-performance product class for ovens in a future 
rulemaking but does not do so for gas cooking tops as part of the 
current rulemaking. Sub-Zero stated that since both components are 
incorporated in combined cooking products such as ranges, different 
product classes for different components could lead to significant 
market uncertainty. Sub-Zero stated that the only accurate and 
equitable solution is to define separate product classes for high-
performance ovens and gas cooking tops and set appropriate standards 
based on utility and performance considerations. (Sub-Zero, No. 66 at 
p. 6)
    Based on DOE's analysis discussed previously, DOE is not evaluating 
a separate product class for commercial-style ovens.
Installation Configuration
    As discussed in section III.B of this document, in the October 2012 
TP Final Rule, DOE amended appendix I to include methods for measuring 
fan-only mode.\23\ Based on DOE's testing of freestanding, built-in, 
and slide-in conventional gas and electric ovens, DOE observed that all 
of the built-in and slide-in ovens tested consumed energy in fan-only 
mode, whereas freestanding ovens did not. The energy consumption in 
fan-only mode for built-in and slide-in ovens ranged from approximately 
1.3 to 37.6 watt-hours (``Wh'') per cycle, which corresponds to 0.25 to 
7.6 kilowatt-hours per year (``kWh/yr''). Based on DOE's reverse 
engineering analyses, DOE noted that built-in and slide-in products 
incorporate an additional exhaust fan and vent assembly that is not 
present in freestanding products. The additional energy required to 
exhaust air from the oven cavity is necessary for slide-in and built-in 
installation configurations to meet safety-related temperature 
requirements because the oven is enclosed in cabinetry. For these 
reasons, DOE proposed in the June 2015 NOPR and September 2016 SNOPR to 
include separate product classes for freestanding and built-in/slide-in 
ovens. 80 FR 33030, 33045 (June 10, 2015); 81 FR 60784, 60806 (Sept. 2, 
2016).
---------------------------------------------------------------------------

    \23\ Fan-only mode is an active mode that is not user-selectable 
in which a fan circulates air internally or externally to the 
cooking product for a finite period of time after the end of the 
heating function.
---------------------------------------------------------------------------

    DOE did not receive comment on its proposal in the September 2016 
SNOPR to include separate product classes for built-in/slide-in ovens. 
For the reasons discussed above, DOE analyzed separate product classes 
for freestanding and built-in/slide-in ovens for this NOPD.
    In summary, DOE analyzed the product classes listed in Table IV-1 
for this NOPD.
[GRAPHIC] [TIFF OMITTED] TP14DE20.001


[[Page 80999]]


2. Technology Options
    As part of the market and technology assessment, DOE uses 
information about existing and past technology options and prototype 
designs to help identify technologies that manufacturers could use to 
improve energy efficiency. Initially, these technologies encompass all 
those that DOE believes are technologically feasible. Chapter 3 of the 
TSD for this NOPD includes the detailed list and descriptions of all 
technology options identified for this equipment.
a. Conventional Cooking Tops
    In the September 2016 SNOPR, DOE proposed to consider the 
technology options for conventional cooking tops listed in Table IV-2. 
81 FR 60784, 60808 (Sept. 2, 2016).
[GRAPHIC] [TIFF OMITTED] TP14DE20.002

    In response to the September 2016 SNOPR, DOE received comments 
regarding the potential energy savings and applicability of the 
improved contact conductance and low-standby-loss electronic control 
technology options for conventional cooking tops. These specific 
technology options are discussed in the following sections.\25\
---------------------------------------------------------------------------

    \24\ Catalytic burners were included in the September 2016 SNOPR 
screening analysis, but not included in the table of technology 
options.
    \25\ Previous comments and DOE's responses on the various 
cooking top technology options listed in Table IV-2 are discussed in 
the September 2016 SNOPR. 81 FR 60784, 60807-60808 (Sept. 2, 2016).
---------------------------------------------------------------------------

Improved Contact Conductance
    AHAM opposed improved contact conductance as a technology option 
for electric coil cooking tops. AHAM commented that the test procedure 
specifies narrow tolerances on the flatness of the test vessel, which 
AHAM feels are appropriate to reduce variability in test results. AHAM 
stated that if a consumer does not use pots with comparable flatness, 
any reduction in energy consumption due to greater flatness of the 
heating element that would be measured using the test procedure will 
not be realized in the field. AHAM supplied data from testing of 
different pan diameters and materials showing that all pan materials 
warp after the first use, and the warping continues as the cookware is 
used.\26\ Based on this testing, AHAM asserted that consumers are using 
warped pans and that improving the flatness of the heating element will 
not achieve improved contact conductance. AHAM stated, therefore, that 
the energy savings associated with the improved contact conductance 
technology option measured under the test procedure is not 
representative of what consumer will experience in the field and, as a 
result, this should not be considered as a technology option. (AHAM, 
No. 64 at pp. 7-10)
---------------------------------------------------------------------------

    \26\ AHAM test data showed that the average pan warpage ranged 
from -0.02 inches for aluminum pans to -0.08 inches for stainless 
steel pans.
---------------------------------------------------------------------------

    DOE agrees that, based on the test data provided by AHAM, improving 
the flatness of the electric coil heating element may not result in 
energy savings due to the warping of pots and pans used by consumers. 
As a result, DOE did not consider improved contact conductance as a 
technology option for electric coil cooking tops for this NOPD.
Low-Standby-Loss Electronic Controls
    AHAM commented that most baseline products on the market are 
already using a low-standby-loss SMPS and, as a result, this should not 
be considered a viable technology option to improve efficiency for 
electric smooth cooking tops. (AHAM, No. 64 at p. 10) Among the six 
electric smooth cooking tops that DOE tore down, DOE observed units 
that incorporated a baseline efficiency linear power supply. As a 
result, DOE maintained SMPS as a technology option for reducing the 
standby power consumption of electric smooth cooking tops for this 
NOPD.
    Table IV-3 lists the technology options for cooking tops that DOE 
considered for this NOPD.

[[Page 81000]]

[GRAPHIC] [TIFF OMITTED] TP14DE20.003

b. Conventional Ovens
    In the September 2016 SNOPR, DOE proposed to consider the 
technology options for conventional ovens listed in Table IV-4. 81 FR 
60784, 60808-60810 (Sept. 2, 2016).
[GRAPHIC] [TIFF OMITTED] TP14DE20.004

    In response to the September 2016 SNOPR, DOE received a number of 
comments regarding the potential energy savings and applicability of 
intermittent/interrupted ignition or intermittent pilot ignition 
systems, forced convection, improved insulation, improved door seals, 
oven separator, reduced conduction losses, and reduced vent rate, as 
technology options for conventional ovens. These specific technology 
options are discussed in the following sections.\27\
---------------------------------------------------------------------------

    \27\ Prevoius comments and DOE's responses on the various oven 
technology options listed in Table IV-4 are discussed in the June 
2015 NOPR and September 2016 SNOPR. 80 FR 33030, 33046-33047 (June 
10, 2015); 81 FR 60784, 60808-60810 (Sept. 2, 2016).
---------------------------------------------------------------------------

Intermittent/Interrupted Ignition or Intermittent Pilot Ignition System
    As part of the September 2016 SNOPR, DOE conducted a review of 
ignition systems available on the market as well as various industry 
definitions for automatic gas ignition available in household gas 
appliances. DOE based its analysis on existing industry terminology 
such as definitions available in ANSI Z21.1 and ANSI Z21.20, 
``Automatic Electrical Controls for Household and Similar Use Part 2: 
Particular Requirements for Automatic Burner Ignition Systems and 
Components.'' When a conventional gas oven cooking cycle is initiated, 
an ignition system is energized before gas is allowed to flow to the 
main burner to be lit. Ignition types observed on the market for 
conventional gas ovens fall under three categories: (1) Intermittent 
ignition, (2) intermittent/interrupted ignition, and (3) intermittent 
pilot ignition.\28\ 81 FR 60784, 60809 (Sept. 2, 2016).
---------------------------------------------------------------------------

    \28\ Continuous ignition systems (e.g., constant-burning or 
``standing'' pilot), defined in ANSI Z21.1, were eliminated for all 
gas cooking products by the current standards as of April 9, 2012.
---------------------------------------------------------------------------

    DOE noted in the September 2016 SNOPR that its testing showed that 
intermittent pilot ignition systems (i.e., electronic spark ignition 
systems) reduce energy consumption as compared to intermittent glo-bar 
ignition systems. However, based on DOE's review of different ignition 
systems, DOE additionally determined that energy savings can be 
achieved from switching from the baseline intermittent glo-bar ignition 
system to either an intermittent/interrupted ignition or intermittent 
pilot ignition. As a result, DOE expanded the gas ignition system 
technology option to account for both of these options. 81 FR

[[Page 81001]]

60784, 60809-60810 (Sept. 2, 2016). Because DOE proposed in the 
September 2016 SNOPR to adopt a prescriptive standard for the control 
system of conventional gas ovens to require the use of an intermittent/
interrupted ignition or intermittent pilot ignition, DOE also proposed 
to define ``intermittent/interrupted ignition'' and ``intermittent 
pilot ignition'' in 10 CFR 430.2. 81 FR 60784, 60810.
    In response to the September 2016 SNOPR, Spire reiterated its April 
14, 2014 comments \29\ that its test data indicate that glo-bar 
ignition systems consume only 0.16 kWh per cycle. Spire claimed that 
this is equivalent to 160 W, which is no more than half of DOE's 
estimates. (Spire, No. 61 at pp. 5-6) DOE responded to these comments 
in the June 2015 NOPR by presenting test data on the glo-bar power and 
energy consumption from its test sample. DOE noted that while the power 
consumption of the glo-bar ignition systems was measured as 330 W to 
450 W, the per-cycle energy consumption was similar to that reported by 
Spire, ranging from 0.141 to 0.261 kWh, because the glo-bar ignition 
systems do not stay on for the entire cooking cycle and instead cycle 
on and off as the main burner cycles on and off. 80 FR 33030, 33051 
(June 10, 2015). DOE analyzed standards for conventional ovens using 
the IAEC metric, which includes the energy use from the glo-bar 
ignition system.
---------------------------------------------------------------------------

    \29\ Spire, formerly the Laclede Group, Inc., April 14, 2014 
comments are available at https://www.regulations.gov/document?D=EERE-2014-BT-STD-0005-0008.
---------------------------------------------------------------------------

    AHAM and GE questioned whether DOE's proposal to require gas ovens 
to be equipped with an intermittent/interrupted ignition or 
intermittent pilot ignition would achieve energy savings. AHAM and GE 
noted that a glo-bar ignition system, which stays on when the main 
burner is on, contributes heat to the cavity and the food load. (AHAM, 
No. 64 at p. 28; GE, No. 72 at p. 3) AHAM stated that unlike DOE's 
testing that compared two different models, one with a glo-bar ignition 
and one with an intermittent/interrupted or intermittent pilot system, 
AHAM members conducted testing by comparing the same model with two 
different ignition systems. AHAM member testing, presented in Table IV-
5, showed that the units equipped with the glo-bar ignition system 
consumed less energy than the same models equipped with the 
intermittent pilot (i.e., spark ignition) system. (AHAM, No. 64 at pp. 
28-29)
[GRAPHIC] [TIFF OMITTED] TP14DE20.005

    In addition, AHAM and GE presented data from testing of a single 
oven that was configured to switch between the glo-bar ignition system 
and the intermittent pilot ignition system. AHAM and GE noted that the 
testing, conducted according to the DOE test procedure adopted in the 
July 2015 TP Final Rule, showed that when replacing the glo-bar 
ignition system with spark ignition, the electrical energy consumed by 
the glo-bar is replaced by additional gas usage when using the 
intermittent pilot ignition system, and the overall energy use of both 
systems is essentially the same. Based on this, AHAM and GE asserted 
that replacing the glo-bar ignition system with an intermittent/
interrupted ignition or intermittent pilot ignition does not achieve 
energy savings. (AHAM, No. 64 at pp. 29-30; GE, No. 72 at p. 3)
    Based on review of the additional test data provided by AHAM, DOE 
agrees that replacing the intermittent glo-bar ignition system with an 
intermittent/interrupted ignition or intermittent pilot ignition may 
not achieve energy savings due to the elimination of heat input that 
the glo-bar contributes to the cavity and food load, which must be 
offset by additional gas consumption. As a result, DOE is no longer 
considering intermittent/interrupted or intermittent pilot ignition 
systems as a technology option. Because DOE is no longer considering 
these ignition systems as technology options, DOE is not considering 
prescriptive standards to require that conventional gas ovens be 
equipped with a control system that uses intermittent/interrupted 
ignition or intermittent pilot ignition in this NOPD.
    Instead, DOE is evaluating prescriptive standards requiring that 
conventional ovens not be equipped with a control system that uses a 
linear power supply. DOE's analysis revealed that conventional ovens at 
the baseline efficiency level use a conventional linear power supply 
control design. A linear power supply typically produces unregulated as 
well as regulated power. The main characteristic of an unregulated 
power supply is that its output may contain significant voltage ripple 
and that the output voltage will usually vary with the current drawn. 
The voltages produced by regulated power supplies are typically more 
stable, exhibiting less ripple than the output from an unregulated 
power supply and maintaining a relatively constant voltage within the 
specified current limits of the device(s) regulating the power. The 
unregulated portion of a linear power supply typically consists of a 
transformer that steps alternating current (``AC'') line voltage down, 
a voltage rectifier circuit for AC to direct current (``DC'') 
conversion, and a capacitor to produce unregulated, DC output. However, 
there are other means of producing and implementing an unregulated 
power supply such as

[[Page 81002]]

transformerless capacitive and/or resistive rectification circuits.
    Within a linear power supply, the unregulated output serves as an 
input into a single or multiple voltage-regulating devices. Such 
regulating devices include Zener diodes, linear voltage regulators, or 
similar components which produce a lower-potential, regulated power 
output from a higher-potential DC input. This approach results in a 
rugged power supply which is reliable, but typically has an efficiency 
of about 40 percent. As discussed in section IV.C.2.b of this document, 
DOE's analysis showed that switching from a conventional linear power 
supply to an SMPS reduces the standby mode energy consumption for 
conventional ovens. An SMPS offers higher conversion efficiencies of up 
to 75 percent in appliance applications for power supply sizes similar 
to those of conventional ovens. An SMPS also reduces the no-load 
standby losses. DOE seeks comment on both its initial decision to no 
longer consider intermittent/interrupted or intermittent pilot ignition 
systems as a technology option, and its initial decision to only 
evaluate prescriptive standards requiring that conventional ovens not 
be equipped with a control system that uses a linear power supply (see 
section VII.B of this document).
Forced Convection
    AHAM commented that, depending on the total energy consumption of 
the unit, the convection motor wattage could negate any potential 
energy savings of forced convection. AHAM also asserted that convection 
is not appropriate for cooking all food types, such as covered food 
loads. AHAM commented that because DOE proposed to repeal the oven test 
procedure in the August 2016 TP SNOPR, there was no way to determine 
whether there are efficiency gains from this technology option. (AHAM, 
No. 64 at p. 11)
    As discussed in chapter 3 of the TSD for this NOPD, DOE conducted 
testing on ovens equipped with forced convection, comparing the 
measured energy consumption of each oven in bake mode to the average 
energy consumption of bake mode and convection mode, including energy 
consumption due to the fan motor, as specified in the test procedure 
adopted in the July 2015 TP Final Rule. Based on this testing, DOE 
determined that forced convection provides a 4 to 6-percent increase in 
cooking efficiency. In addition, DOE notes that because the test 
procedure specified that the bake mode and convection mode energy 
consumption be averaged when calculating cooking efficiency, the test 
procedure did not assume that forced convection would be used for 
cooking all food loads. For these reasons, DOE retained forced 
convection as a technology option for this NOPD. However, as discussed 
in section III.B of this document, DOE repealed the test procedures for 
conventional ovens. DOE will reevaluate the energy savings associated 
with this technology option if it considers performance standards in a 
future rulemaking.
Improved Insulation
    AHAM commented that DOE's estimate of the efficiency increase 
associated with improved insulation is based on data from the 1996 
TSD.\30\ AHAM also noted that added insulation would decrease the 
overall cavity size and reduce consumer utility. AHAM commented that 
DOE must conduct testing on products currently on the market using an 
active test procedure to determine the energy savings associated with 
these technology options. (AHAM, No. 64 at p. 13) As discussed in 
chapter 3 of the TSD for this NOPD, DOE noted that using denser 
insulation can increase cooking efficiency, and that self-clean ovens 
typically have a more effective insulation package to meet surface 
temperature safety requirements due to the higher temperatures during 
the self-cleaning operation. DOE observed from teardowns of products in 
its test sample that standard and self-clean ovens may use different 
density insulations. As a result, DOE believes that the efficiency of 
standard ovens can be increased by using improved insulation. For these 
reasons, DOE maintained improved insulation as a technology option for 
standard ovens for this NOPD, although as discussed in section IV.B.1.b 
of this document, DOE screened out added insulation from further 
analysis. DOE recognizes that the estimates for the energy savings may 
vary depending on the test procedure. DOE will reevaluate the energy 
savings associated with this technology option if it considers 
performance standards in a future rulemaking.
---------------------------------------------------------------------------

    \30\ Available online at http://www.regulations.gov/#!documentDetail;D=EERE-2006-STD-0070-0053.
---------------------------------------------------------------------------

Improved Door Seals
    AHAM commented that further improving door seals will lead to a 
loss of performance due to a loss of sufficient airflow. According to 
AHAM, door seals are already optimized to retain heat while offering 
enough airflow for cooking performance. AHAM stated that if the door is 
sealed further, increased airflow would be required by means of 
implementing an additional motor that would likely consume more energy, 
and the 1-percent energy gain DOE estimated would be eliminated. For 
these reasons, AHAM opposed considering improved door seals as a 
technology option. (AHAM, No. 64 at p. 11)
    As discussed in chapter 3 of the TSD for this NOPD, DOE noted that 
because some venting is required for proper cooking performance, a 
complete seal on the oven is undesirable. However, the oven door seals 
can be improved further without sealing the oven completely. As 
discussed in chapter 5 of the TSD for this NOPD, the estimated 
efficiency improvement for improving the door seals was based on 
replacing the baseline silicone rubber door seal that DOE observed in 
its test sample with the fiberglass door seals with metallic mesh 
typically found in self-clean ovens and that DOE also observed in its 
test sample. As a result, DOE initially concludes that efficiency can 
be increased by improving the door seals and retained this technology 
option for this NOPD.
Oven Separator
    AHAM opposed considering oven separators as a technology option. 
AHAM commented that oven separators are not a widely available feature 
and that DOE does not have data to show the frequency with which 
consumers actually use the oven separator. AHAM stated that without 
knowing whether consumers use the oven separator, it is not possible to 
determine the energy savings that would be realized in the field. 
(AHAM, No. 64 at p. 11) DOE notes that the test procedure adopted in 
the July 2015 TP Final Rule specified that the total AEC of an oven 
equipped with an oven separator be calculated as the average energy. As 
discussed in the September 2016 SNOPR, DOE's testing showed that oven 
separators can reduce energy use by reducing the cavity volume that 
must be heated. 81 FR 60784, 60818. Because oven separators have the 
potential to reduce energy use for conventional electric ovens, DOE 
retained this technology option for this NOPD.
Reduced Conduction Losses
    AHAM commented that DOE's data on reduced conduction losses are 
based on products that are more than 10 years old. AHAM noted that 
testing at the time indicated an extremely small absolute percentage 
point increase in efficiency of 0.05 percent, and that DOE does not 
have any current data to evaluate the efficiency improvement for 
products currently on the market.

[[Page 81003]]

(AHAM, No. 64 at p. 12) Based on DOE's testing and reverse engineering 
for this proposed determination, DOE did not observe variation in the 
interface between the door and the oven cavity that would demonstrate 
an opportunity for improving efficiency. As a result, DOE did not 
consider reduced conduction losses as a technology option in this NOPD.
Reduced Vent Rate
    AHAM opposed considering reduced vent rate as a technology option. 
AHAM commented that DOE's estimates of energy savings rely on old 
testing and product designs, and that the negligible energy savings are 
based on a test procedure that DOE proposed to repeal in the August 
2016 TP SNOPR. According to AHAM, any future energy savings may not be 
captured if the test procedure is changed. AHAM also commented that 
oven vent rates are part of a complex air flow design that affects 
preheat times, cooking performance, and fire and explosion safety 
performance. AHAM asserted that forcing manufacturers to implement this 
technology option would reduce energy use by a negligible amount while 
forcing a significant redesign effort. AHAM added that this could also 
lead to the elimination of self-clean ovens or cause poor cooking 
performance because it would result in low air flow and the development 
of hots spots in the cavity. (AHAM, No. 64 at p. 12)
    DOE notes that it proposed to consider reduced vent rate as a 
technology option for only electric standard ovens, and that no further 
increase in efficiency can be achieved for gas and electric self-clean 
ovens and gas standard ovens with this technology option. In addition, 
because DOE did not consider reduced vent rate for gas ovens, DOE does 
not believe that fire and explosion safety performance from gas 
combustion would be an issue. As noted in the September 2016 SNOPR, DOE 
observed from its testing that reduced vent rate could be considered 
for improving the cooking efficiency for electric standard ovens. 81 FR 
60784, 60810 (Sept. 2, 2016). As a result, DOE retained reduced vent 
rate as a technology option for electric standard ovens in this NOPD.
    Table IV-6 lists the technology options for ovens that DOE 
considered for this NOPD.
[GRAPHIC] [TIFF OMITTED] TP14DE20.006

B. Screening Analysis

    DOE uses the following five screening criteria to determine which 
technology options are suitable for further consideration in an energy 
conservation standards rulemaking:

    (1) Technological feasibility. Technologies that are not 
incorporated in commercial products or in working prototypes will 
not be considered further.
    (2) Practicability to manufacture, install, and service. If it 
is determined that mass production and reliable installation and 
servicing of a technology in commercial products could not be 
achieved on the scale necessary to serve the relevant market at the 
time of the projected compliance date of the standard, then that 
technology will not be considered further.
    (3) Impacts on product utility or product availability. If it is 
determined that a technology would have significant adverse impact 
on the utility of the product to significant subgroups of consumers 
or would result in the unavailability of any covered product type 
with performance characteristics (including reliability), features, 
sizes, capacities, and volumes that are substantially the same as 
products generally available in the United States at the time, it 
will not be considered further.
    (4) Adverse impacts on health or safety. If it is determined 
that a technology would have significant adverse impacts on health 
or safety, it will not be considered further.
    (5) Unique-Pathway Proprietary Technologies. If a design option 
uses proprietary technology that represents a unique pathway to 
achieving a given efficiency level, that technology will not be 
considered further.

10 CFR part 430, subpart C, appendix A, 6(c)(3) and 7(b)

    In summary, if DOE determines that a technology, or a combination 
of technologies, fails to meet one or more of the listed criteria, it 
will be excluded from further consideration in the engineering 
analysis. The reasons for eliminating any technology are discussed 
below.
    The subsequent sections include comments from interested parties 
pertinent to the screening criteria, DOE's evaluation of each 
technology option against the screening analysis criteria, and whether 
DOE determined that a technology option should be excluded (``screened 
out'') based on the screening criteria.
1. Screened-Out Technologies
a. Conventional Cooking Tops
    For conventional cooking tops, in the September 2016 SNOPR, DOE 
screened out radiant gas burners, catalytic burners, reduced excess air 
at burner, and reflective surfaces. 81 FR 60784, 60810-60811 (Sept. 2, 
2016). DOE did not receive any comments opposing the technology options 
screened out in the September 2016 SNOPR. For the same reasons 
discussed in the September 2016 SNOPR, DOE is continuing to screen out 
radiant gas burners, catalytic burners, reduced excess air at burner, 
and reflective surfaces from further analysis in this NOPD.
    In addition, AHAM commented that halogen heating elements are not 
being used in any commercially available products or working 
prototypes. AHAM also noted that DOE's estimated energy savings using 
the previous version of the test procedure are no longer relevant. AHAM 
asserted that halogen

[[Page 81004]]

heating elements should be screened out from the analysis. (AHAM, No. 
64 at p. 10) Based on DOE's review of products available on the market 
and its product teardowns, DOE is not aware of any cooking tops that 
incorporate halogen heating elements. Because this technology is 
currently not being used commercially or in working prototypes, DOE 
does not believe that it would be practicable to produce this 
technology in commercial products on the scale necessary to serve the 
market by the potential compliance date of the proposed standards. As a 
result, DOE is screening out halogen elements from further analysis in 
this NOPD.
    AHAM commented that the optimized burner and grate design 
technology option for gas cooking tops should be screened out from the 
analysis. AHAM stated that designs of the burner system components are 
interdependent and must consider safety as well. According to AHAM, gas 
cooking top burner and grate designs are already optimized to meet 
consumer utility and to stay within combustion safety requirements. 
AHAM also asserted that the additional heat retention of heavier grates 
contributes to the efficiency of longer cooking cycles that are not 
measured under the test procedure. (AHAM, No. 64 at p. 6)
    As discussed in the September 2016 SNOPR, DOE considered different 
efficiency levels associated with the optimized burner and grate design 
technology option that it observed in products available on the market, 
including a range of commercial-style gas cooking tops that maintain 
the utilities discussed previously in section IV.A.1.a of this 
document. 81 FR 60784, 60187 (Sept. 2, 2016). DOE characterized the 
optimized burner and grate design incremental efficiency levels based 
on different observed features (e.g., high input rate burners, grate 
types and material). DOE further notes that all gas cooking tops on the 
market, including those with an optimized burner and grate design, have 
been certified to applicable safety standards. However, DOE recognizes 
that the estimates for the energy savings associated with optimized 
burner and grate design may vary depending on the test procedure, and 
thus screened out this technology option from further analysis of gas 
cooking tops. DOE will reevaluate the energy savings associated with 
this technology option if it considers performance standards in a 
future rulemaking.
b. Conventional Ovens
    For conventional ovens, in the September 2016 SNOPR, DOE screened 
out added insulation, bi-radiant oven, halogen lamp oven, no oven door 
window, reflective surfaces, and optimized burner and cavity design. 81 
FR 60784, 60811 (Sept. 2, 2016).
    AHAM supported DOE's proposal to screen out optimized burner and 
cavity design as well as no oven door window from the analysis. (AHAM, 
No. 64 at pp. 12, 13) Because DOE did not receive any comments opposing 
the technology options screened out in the September 2016 SNOPR, for 
the same reasons discussed in the September 2016 SNOPR, DOE screened 
out added insulation, bi-radiant oven, halogen lamp oven, no oven door 
window, reflective surfaces, and optimized burner and cavity design 
from further analysis in this NOPD.
2. Remaining Technologies
    Based on the screening analysis, DOE considered the design options 
listed in Table IV-7 for conventional cooking tops and Table IV-8 for 
conventional ovens.
[GRAPHIC] [TIFF OMITTED] TP14DE20.007

[GRAPHIC] [TIFF OMITTED] TP14DE20.008

    DOE determined that these technology options are technologically 
feasible because they are being used or have previously been used in 
commercially available products or working prototypes. DOE also finds 
that all of the remaining technology options meet the other screening 
criteria (i.e., practicable to manufacture, install, and service and do 
not result in adverse impacts on consumer utility, product 
availability, health, or safety, nor require unique-pathway proprietary 
technologies). For additional details, see chapter 4 of the TSD for 
this NOPD.

C. Engineering Analysis

    The purpose of the engineering analysis is to establish the 
relationship between the efficiency and cost of conventional cooking 
products. There are two elements to consider in the engineering 
analysis; the selection of efficiency levels to analyze (i.e., the 
``efficiency analysis'') and the determination of product cost at each 
efficiency level (i.e., the ``cost analysis''). In determining the 
performance of higher-efficiency products, DOE considers technologies

[[Page 81005]]

and design option combinations not eliminated by the screening 
analysis. For each product class, DOE estimates the baseline cost, as 
well as the incremental cost for the product at efficiency levels above 
the baseline. The output of the engineering analysis is a set of cost-
efficiency ``curves'' that are used in downstream analyses (i.e., the 
LCC and PBP analyses and the NIA).
1. Efficiency Analysis
    DOE typically uses one of two approaches to develop energy 
efficiency levels for the engineering analysis: (1) Relying on observed 
efficiency levels in the market (i.e., the efficiency-level approach), 
or (2) determining the incremental efficiency improvements associated 
with incorporating specific design options to a baseline model (i.e., 
the design-option approach). Using the efficiency-level approach, the 
efficiency levels established for the analysis are determined based on 
the market distribution of existing products (in other words, based on 
the range of efficiencies and efficiency level ``clusters'' that 
already exist on the market). Using the design option approach, the 
efficiency levels established for the analysis are determined through 
detailed engineering calculations and/or computer simulations of the 
efficiency improvements from implementing specific design options that 
have been identified in the technology assessment. DOE may also rely on 
a combination of these two approaches. For example, the efficiency-
level approach (based on actual products on the market) may be extended 
using the design option approach to interpolate to define ``gap fill'' 
levels (to bridge large gaps between other identified efficiency 
levels) and/or to extrapolate to the ``max-tech'' level (particularly 
in cases where the ``max-tech'' level exceeds the maximum efficiency 
level currently available on the market).
    In this rulemaking, DOE is adopting a design-option approach, 
supplemented by reverse engineering (physical teardowns and testing of 
existing products in the market) to identify the incremental cost and 
efficiency improvement associated with each design option or design 
option combination. In addition, DOE considered data from the previous 
rulemaking analysis provided in the 2009 TSD. DOE also conducted 
interviews with manufacturers of consumer conventional cooking products 
to develop a deeper understanding of the various combinations of design 
options used to increase product efficiency, and their associated 
manufacturing costs.
    DOE conducted testing and reverse engineering teardowns on products 
available on the market. Because there are no performance-based energy 
conservation standards or energy reporting requirements for consumer 
conventional cooking products, DOE selected test units based on 
performance-related features and technologies advertised in product 
literature.
a. Conventional Cooking Tops
    As noted in the September 2016 SNOPR, DOE's test sample for 
conventional cooking tops included four gas cooking tops, eight gas 
ranges, six electric cooking tops, and two electric ranges for a total 
of 20 conventional cooking tops covering all of the considered product 
classes. 81 FR 60784, 60811-60812 (Sept. 2, 2016). DOE conducted 
testing on each cooking top in its test sample. DOE notes that it 
originally conducted testing using the withdrawn hybrid test block 
method proposed in the December 2014 TP SNOPR. DOE also tested nine of 
the twenty units in its test sample using the water heating test method 
adopted in the December 2016 TP Final Rule, which as discussed in 
section III.B of this document has since been withdrawn. To maintain 
its full test sample to be representative of products on the market, 
DOE then used the relative difference in results between the two test 
methods to scale the normalized total cooking top energy consumption 
for the remaining units in its test sample.
    DOE conducted physical teardowns on each test unit to develop a 
manufacturing cost model and to evaluate key design features. DOE 
supplemented its reverse engineering analyses by conducting 
manufacturer interviews to obtain feedback on efficiency levels, design 
options, inputs for the manufacturing cost model, and resulting 
manufacturing costs. DOE used the results from testing, reverse 
engineering, and manufacturer interviews to develop the efficiency 
levels and manufacturing costs discussed in section IV.C.2 and section 
IV.C.3 of this document.
    In response to the September 2016 SNOPR, AHAM requested information 
on which of the IAECs for units in DOE's test sample were measured 
using the methods proposed in the August 2016 TP SNOPR and which IAECs 
were calculated using scaling factors derived from the results of 
testing using the hybrid test block method proposed in the December 
2014 TP SNOPR. AHAM also requested that DOE provide the scaling factors 
for each scaled unit in the test sample. (AHAM, No. 57 at p. 2) On 
October 24, 2016, DOE added to the rulemaking docket the information 
requested by AHAM, which included: (1) The IAECs for the units tested 
according to the August 2016 TP SNOPR, (2) the IAECs for the units 
tested according to the withdrawn hybrid test block method, and (3) the 
scaling factor used to scale results obtained with the hybrid test 
block method.\31\
---------------------------------------------------------------------------

    \31\ Available at https://www.regulations.gov/document?D=EERE-2014-BT-STD-0005-0058.
---------------------------------------------------------------------------

    AHAM did not agree with DOE's method to scale results using the 
difference between products tested with both the hybrid block and 
water-heating test procedures. AHAM did not believe that DOE had enough 
data to understand how different cooking top configurations affect the 
scaling factor, and as such asserted that DOE should not develop a 
scaling factor. (AHAM, No. 64 at pp. 14-15) AHAM noted that the hybrid 
test block method specified three different test load diameters, while 
the test procedure proposed in the August 2016 TP SNOPR specified eight 
different test load diameters. Additionally, AHAM claimed that due to 
the variety of cooking top configurations and surface unit diameters 
that were available on the U.S. market, a single scaling factor for any 
cooking top product class would not be meaningful. (AHAM, No. 64 at p. 
14)
    AHAM specifically noted that the scaling factors used for the 
smooth-electric resistance cooking tops were calculated using units 
that contained multi-ring elements. AHAM also stated that because 
``zone-less'' smooth-induction cooking tops (i.e., those with full-
surface induction) were tested differently than ``zoned'' smooth-
induction cooking tops (i.e., those with individual surface units)--the 
test load sizes were based on the number of controls rather than the 
diameter of each of the surface units--it was inappropriate to use a 
scaling factor developed using zoned cooking tops for zone-less cooking 
tops. (AHAM, No. 64 at pp. 14-15) Furthermore, for gas cooking tops, 
AHAM stated that because DOE's test sample contained cooking tops with 
unique burner/grate designs that had an impact on the efficiency of the 
product, it was inappropriate to apply the same scaling factor to all 
of the gas models in the DOE test sample. (AHAM, No. 64 at p. 16)
    AHAM noted that DOE tested less than half of the cooking tops in 
its test

[[Page 81006]]

sample according to the test procedure proposed in the August 2016 TP 
SNOPR, and as a result, based the standards for conventional cooking 
tops proposed in the September 2016 SNOPR on test data for only nine 
products. (AHAM, No. 64 at p. 14) Moreover, AHAM stated that because 
the rulemaking started 3 years prior to the September 2016 SNOPR, DOE 
relied on old samples for its analysis and that it was possible that 
products on the market at the time of AHAM's comments differed from the 
products on the market at the time DOE started its analysis. (AHAM, No. 
64 at p. 14) AHAM also commented that the number of different product 
types in DOE's test sample was disproportionate to the percentage of 
shipments for each product type. AHAM noted that DOE tested only two 
smooth-electric resistance cooking tops and three electric coil cooking 
tops even though these product types represented a significant portion 
of the market. (AHAM, No. 64 at pp. 14, 16)
    AHAM submitted test data for 8 electric coil cooking tops, 15 
electric smooth cooking tops (11 electric resistance and 4 induction), 
and 10 gas cooking tops. AHAM's test results are presented in Table IV-
9 to Table IV-11. The coefficient of variation in AHAM's test data 
ranges from 7.1 to 9.2 percent, depending on the product class. 
According to AHAM, this variation introduced uncertainty about whether 
or not a data point would meet the proposed standard level and made it 
difficult to evaluate the potential impact of the proposed standard. 
(AHAM, No. 64 at pp. 18, 20)
[GRAPHIC] [TIFF OMITTED] TP14DE20.009

[GRAPHIC] [TIFF OMITTED] TP14DE20.010


[[Page 81007]]


[GRAPHIC] [TIFF OMITTED] TP14DE20.011

    DOE notes that for each of the electric cooking top product 
classes, it did not base the scaling factor on simply the overall AEC 
calculated according to each test method, because the difference in the 
overall AECs that were measured for each electric cooking top subject 
to the two test methods varied by more than 2 percentage points for 
some product classes. Instead, DOE scaled the measured results for each 
individual surface unit of each cooking top based on the heating 
technology of the surface unit (coil, smooth-electric resistance, and 
smooth-induction) and the surface unit diameter, accounting for any 
difference in the diameter of the test loads for each respective test 
method used to test the surface unit. The scaling factors presented in 
DOE's October 24, 2016 response to AHAM's data request thus are an 
average obtained from individually scaling four or more surface units 
per cooking top, and represent the aggregate difference between the 
overall AEC determined using each test method.
    This scaling method for electric cooking tops allowed DOE to 
account for configuration differences among units in its test sample, 
including the presence of multi-ring surface units, and the effects of 
the test cookware selection process specified in the December 2016 TP 
Final Rule. Regarding the latter, for a given surface unit, the test 
vessel with a diameter that most closely matched the surface unit 
diameter was selected for the test. The number of test vessels and test 
vessel size categories \32\ needed to assess the energy consumption of 
the cooking top was based on the number of controls that could be 
independently but simultaneously operated on the cooking top. If the 
number of independent controls/surface units for the cooking top 
exceeded two, the cooking top was required to be tested with test 
vessels from at least two cookware categories. As a result, the test 
vessel selected for testing an individual surface unit was based on the 
diameter of that surface unit as well as the configuration of diameters 
of all the surface units on the cooking top to ensure that the test 
vessel size category requirements were also met. Scaling test results 
for each individual surface unit ensured that DOE factored in this test 
procedure requirement.
---------------------------------------------------------------------------

    \32\ Test vessels are grouped into categories based on ranges of 
test vessel diameters to represent different cookware types.
---------------------------------------------------------------------------

    In contrast, for the gas cooking top test data that were scaled 
from the results using the hybrid test block method, DOE used the 
average difference in overall AEC between the two test methods to scale 
the test results because the test load selection process for gas 
cooking tops depended only on the input rate of each individual burner 
and did not depend on the configuration of all the burners on the 
cooking top. Thus, scaling by the percent difference in overall AEC 
instead of surface unit energy consumption was appropriate for gas 
cooking tops, as evidenced by the results for the three gas units in 
the DOE test sample that were tested according both test methods. For 
these three gas cooking tops, the percent difference in overall AEC 
varied less than 1 percentage point.
    For these reasons, in this NOPD DOE maintained the same approach to 
scale test results measured with the hybrid test block method and 
updated the scaling factors to reflect the test procedure adopted in 
the December 2016 TP Final Rule.
    DOE's test sample of 20 consumer conventional cooking products that 
were used for the September 2016 SNOPR analysis, as well as being 
subjected to additional testing for this NOPD, comprised units 
purchased in 2014 and 2015. To supplement its analysis for this NOPD, 
DOE also purchased and tested two additional commercial-style gas 
cooking tops and one additional smooth-electric resistance cooking top. 
DOE has periodically reviewed the market throughout the course of the 
rulemaking and has determined that this test sample captures the range 
of features currently available on the market for each product class. 
The key characteristics and test results for all cooking top units in 
DOE's test sample are listed in Table IV-12 and Table IV-13.

[[Page 81008]]

[GRAPHIC] [TIFF OMITTED] TP14DE20.012

 [GRAPHIC] [TIFF OMITTED] TP14DE20.013

    For completeness, DOE supplemented its dataset by incorporating 
AHAM's test data, and considered this combined dataset in evaluating 
the efficiency levels, as discussed in section IV.C.2 of this document. 
The combined dataset significantly expands the number of models 
included in the engineering analysis and further ensures that the full 
range of energy consumption for products on the market is captured.
b. Conventional Ovens
    As noted in the September 2016 SNOPR, DOE's test sample for 
conventional ovens included 1 gas wall oven, 7 gas ranges, 5 electric 
wall ovens, and 2 electric ranges for a total of 15 conventional ovens 
covering all of the considered product classes. DOE conducted testing 
according to the test procedure adopted in the July 2015 TP Final Rule. 
81 FR 60784, 60812 (Sept. 2, 2016). As discussed in section III.B of

[[Page 81009]]

this document, although DOE has since repealed the conventional oven 
test procedure in appendix I, DOE based its analyses on the data 
measured using that test procedure. Table IV-14 and Table IV-15 present 
the testing results maintained from the September 2016 SNOPR for the 
conventional gas and electric ovens, respectively. As with cooking 
tops, DOE used the results from testing, reverse engineering, and 
manufacturer interviews to develop the efficiency levels and 
manufacturing costs for conventional ovens discussed in section IV.C.2 
and section IV.C.3 of this document.
[GRAPHIC] [TIFF OMITTED] TP14DE20.014

[GRAPHIC] [TIFF OMITTED] TP14DE20.015

2. Efficiency Levels
a. Baseline Efficiency Levels
    A baseline unit is a product that just meets current Federal energy 
conservation standards. DOE uses the baseline unit for comparison in 
several phases of the NOPD analyses, including the engineering 
analysis, LCC analysis, PBP analysis, and NIA. To determine energy 
savings that will result from an amended energy conservation standard, 
DOE compares energy use at each of the higher energy efficiency levels 
to the energy consumption of the baseline unit. Similarly, to determine 
the changes in price to the consumer that will result from an amended 
energy conservation standard, DOE compares the price of a unit at each 
higher efficiency level to the price of a unit at the baseline.
Conventional Cooking Tops
    As part of the September 2016 SNOPR, DOE developed baseline 
efficiency levels by considering both data from the previous standards 
rulemaking and the energy use for the test units based on the water 
heating test procedure that was later adopted in the December 2016 TP 
Final Rule. 81 FR 60784, 60813-60814 (Sept. 2, 2016). DOE conducted 
testing for units in its test sample to measure IAEC, which included 
energy use in active mode and standby mode. DOE also requested energy 
use data as part of the manufacturer interviews. However, because 
manufacturers were not required at the time of the September 2016 SNOPR 
to conduct testing according to the DOE test procedure, very little 
energy use information was available. DOE noted in the September 2016 
SNOPR that the highest measured IAEC in DOE's test sample was higher 
than the baseline IAEC observed during the 2009 rulemaking for each 
cooking top product class, suggesting that the baseline energy 
consumption of cooking tops has increased since 2009. Thus, to 
establish the new baseline IAEC for cooking tops, DOE set the baseline 
IAEC equal to the maximum IAEC measured in the test sample for each 
product class. 81 FR 60784, 60814.
    As part of the September 2016 SNOPR, because DOE observed that 
baseline electric coil cooking tops and gas cooking tops have only 
electromechanical controls, DOE calculated the baseline IAEC for these 
product classes based on zero standby mode and off mode energy 
consumption. In contrast, baseline

[[Page 81010]]

electric cooking tops with smooth elements have electronic controls 
which consume energy in standby and off mode. For the September 2016 
SNOPR, DOE determined the baseline IAEC for electric smooth cooking 
tops by setting the baseline standby energy consumption equal to that 
of the cooking top with the highest standby energy consumption in its 
test sample to maintain the full functionality of controls for consumer 
utility. 81 FR 60784, 60814 (Sept. 2, 2016).
    The baseline efficiency levels for conventional cooking tops 
proposed in the September 2016 SNOPR are presented in Table IV-16. Id. 
[GRAPHIC] [TIFF OMITTED] TP14DE20.016

    AHAM commented that all electric coil cooking tops will require a 
significant redesign to comply with a change to the voluntary safety 
standard, UL 858, which took effect on June 15, 2018. The updated UL 
858 requires manufacturers to monitor and limit pan bottom temperature 
for coil elements to reduce the incidence of unattended cooking fires. 
AHAM stated that, at the time of the comment, manufacturers were 
developing products to comply with the UL 858 requirements and did not 
yet know how the changes would impact energy consumption. AHAM asserted 
that DOE's data and efficiency level analysis may not be representative 
because they do not reflect products that will enter the market before 
the compliance date of DOE's proposed standards. (AHAM, No. 64 at pp. 
19-20)
    DOE notes that AHAM did not provide data showing how the redesigns 
necessary to comply with changes to UL 858 impact the measured energy 
use for electric coil cooking tops. AHAM did, however, provide data in 
its petition requesting the withdrawal of the test procedure for 
conventional cooking tops, showing that the time to boil did not 
significantly increase using temperature limiting controls on electric 
coil cooking tops that meet UL 858's recently updated requirements.\33\ 
As a result, DOE did not revise its efficiency level analysis for this 
NOPD based on the requirements in UL 858.
---------------------------------------------------------------------------

    \33\ AHAM's petition requesting the withdrawal of the test 
procedure for conventional cooking tops is available at: https://www.regulations.gov/document?D=EERE-2018-BT-TP-0004-0002.
---------------------------------------------------------------------------

    With respect to the standby energy consumption for baseline 
electric coil and gas cooking tops, GE commented that the test 
procedure proposed in the August 2016 TP SNOPR, which proposed to 
apportion standby power to the cooking top on a combined cooking 
product, negatively impacts the cooking top IAEC. GE noted that on a 
majority of combined cooking products, while the entire product may 
consume standby power, the controls for the cooking top component 
consist of electromechanical switches that consume no standby power. GE 
stated that, as a result of assigning a portion of the standby energy 
consumption measured for the full combined cooking product to the 
cooking top component, when comparing the IAEC between an 
electromechanically controlled stand-alone cooking top and a similarly 
controlled combined cooking product that has a cooking top, the 
combined product's cooking top will appear to use more energy. (GE, No. 
72 at p. 2)
    DOE agrees with GE's assertion that apportioning standby power to 
the cooking top component on a combined cooking product negatively 
impacts the cooking top IAEC. As discussed in chapter 9 of the TSD for 
this NOPD, combined cooking products, such as ranges, represent over 70 
percent of the total shipments for consumer conventional cooking 
products. As a result, DOE revised its analysis for electric coil and 
gas cooking tops, including the baseline efficiency levels, to account 
for the standby power consumption apportioned to the cooking top 
component of a combined product based on the maximum standby power for 
each product class in DOE's test sample for a cooking top that is part 
of a combined cooking product. DOE estimated the annual standby energy 
consumption for gas and electric coil cooking tops to be 30 thousand 
British thermal units per year (``kBtu/yr'') and 5 kWh/yr, 
respectively. Because DOE's analysis for electric smooth cooking tops 
already included standby power, and because the range of observed 
standby power was similar for stand-alone electric smooth cooking tops 
and combined cooking products with an electric smooth cooking top, DOE 
is maintaining its estimates for the standby power consumption of 
electric smooth cooking tops in this NOPD. DOE also notes that the 
majority of products in AHAM's test sample, which was factored into 
this analysis, were conventional ranges that included standby power 
consumption for the cooking top component.
    Based on AHAM's comments regarding the validity of DOE's test 
sample discussed in section IV.C.1.a of this document, DOE evaluated 
the combined dataset, including both DOE and AHAM test data, to 
determine the baseline efficiency levels for this NOPD. For each 
product class, the IAEC of several units in AHAM's test sample exceeded 
the baseline efficiency proposed in the September 2016 SNOPR. In light 
of this, DOE revised the baseline IAEC to equal the maximum IAEC 
observed in the combined DOE and AHAM test sample for each product 
class, as shown in Table IV-17.

[[Page 81011]]

[GRAPHIC] [TIFF OMITTED] TP14DE20.017

Conventional Ovens
    As part of the September 2016 SNOPR, DOE developed baseline 
efficiency levels for conventional ovens considering both data from the 
previous standards rulemaking and the measured energy use for the test 
units. DOE conducted testing for all units in its test sample to 
measure IAEC, which included energy use in active mode (including fan-
only mode) and standby mode. 81 FR 60784, 60814 (Sept. 2, 2016). As 
discussed in the September 2016 SNOPR, to address concerns raised by 
interested parties in response to the June 2015 NOPR regarding the 
limited data used to establish the baseline efficiency levels for the 
electric standard oven product classes, DOE augmented its analysis of 
electric standard ovens by considering the energy use of the electric 
self-clean units in its test sample, adjusted to account for the 
differences between standard-clean and self-clean ovens. Augmenting the 
electric standard oven dataset with self-clean models from the DOE test 
sample allowed DOE to consider a wider range of cavity volumes in its 
analysis. 81 FR 60784, 60815.
    To establish the baseline efficiency levels for conventional ovens, 
DOE first derived a relationship between IAEC and cavity volume as 
discussed in section IV.C.2.c of this document. Using the slope from 
the previous rulemaking, DOE selected new intercepts corresponding to 
the ovens in its test sample with the lowest efficiency, so that no 
ovens in the test sample were cut off by the baseline curve. DOE then 
set baseline standby energy consumption for conventional ovens equal to 
that of the oven (including the oven component of a range) with the 
highest standby energy consumption in DOE's test sample to maintain the 
full functionality of controls for consumer utility. As part of the 
September 2016 SNOPR, DOE proposed the baseline efficiency levels 
presented in Table IV-18, which are based on an oven with a cavity 
volume of 4.3 ft\3\. 81 FR 60784, 60815-60816 (Sept. 2, 2016). 
[GRAPHIC] [TIFF OMITTED] TP14DE20.018

    DOE did not receive comment on the baseline efficiency levels 
considered for conventional ovens. Thus, DOE did not modify the 
baseline levels for conventional ovens in this NOPD.
b. Incremental Efficiency Levels
    For each product class for both conventional cooking tops and 
conventional ovens, DOE analyzes several efficiency levels (``ELs'') 
and determines the incremental cost at each of these levels.
Conventional Cooking Tops
    For the September 2016 SNOPR, DOE developed incremental efficiency 
levels for each cooking top product class by first considering 
information from the previous rulemaking analysis available in the 2009 
TSD. In cases where DOE identified design options during testing and 
reverse engineering teardowns, DOE updated the efficiency levels based 
on the test data. 81 FR 60784, 60817 (Sept. 2, 2016). Table IV-19 and 
Table IV-20 show the incremental efficiency levels for the electric 
cooking top product classes as proposed in the September 2016 SNOPR, 
including whether the efficiency level is from the 2009 TSD or based on 
testing for that SNOPR.
[GRAPHIC] [TIFF OMITTED] TP14DE20.019


[[Page 81012]]


[GRAPHIC] [TIFF OMITTED] TP14DE20.020

    AHAM commented that the induction cooking tops in AHAM's test 
sample appear to consume more energy than many of the smooth-electric 
resistance models in both the DOE and AHAM datasets, which AHAM claimed 
undermines DOE's estimate of the efficiency improvement due to 
induction. (AHAM, No. 64 at p. 21) AHAM stated that it was not clear 
whether the difference between DOE and AHAM's induction test data can 
be attributed to differences in how the laboratories conducted testing 
or to differences in the test units themselves. (AHAM, No. 64 at p. 22) 
AHAM expressed concern that smooth-electric resistance cooking tops, 
which perform better when the contact between the element and the pan 
is optimized, may benefit more from the flat cookware specified in the 
test procedure than do induction cooking tops. AHAM noted that 
induction cooking tops, which induce an electromagnetic field in the 
cookware itself, are not affected by contact. (AHAM, No. 64 at p. 22)
    To evaluate whether DOE's analysis provides an accurate 
representation of the efficiency improvement associated with induction 
heating elements, DOE reviewed data for 128 electric cooking tops sold 
on the European market and compared the data to results from DOE's test 
sample. Cooking tops sold on the European market are tested and rated 
using the same basic test provisions as the DOE test procedure adopted 
in the December 2016 TP Final Rule. DOE also notes that, based on 
product teardowns conducted in support of the September 2016 SNOPR, the 
heating elements and glass cooking surfaces used in electric smooth 
cooking tops are typically purchased parts that are manufactured by 
companies that produce and supply these parts to countries 
worldwide.\34\ As a result, DOE believes that the comparative energy 
use of smooth-electric resistance and smooth-induction cooking tops on 
the European market is similar to the comparative performance of 
products on the U.S. market. As demonstrated in Table IV-21, for both 
smooth-electric resistance and smooth-induction cooking tops, DOE's 
test data fell within the range of AEC observed for products on the 
European market. For both DOE's test data and data for products on the 
European market, smooth-induction cooking tops are, on average, more 
efficient than smooth-electric resistance cooking tops.
---------------------------------------------------------------------------

    \34\ DOE observed during product teardowns that many electric 
smooth cooking top heating elements are supplied by E.G.O. Worldwide 
(http://www.egoproducts.com/en/home/).
[GRAPHIC] [TIFF OMITTED] TP14DE20.021

    If the test procedure provided an advantage to smooth-electric 
resistance cooking tops over smooth-induction cooking tops due to the 
flatness of the test vessel, DOE would expect to see similar results in 
the DOE, AHAM, and European market data. However, as discussed above, 
both DOE and European data indicate that smooth-induction cooking tops 
consume less energy compared to smooth-electric resistance cooking 
tops. Therefore, DOE believes that its test data and analysis 
accurately reflect the decrease in AEC associated with a change from 
electric resistance to induction heating. As a result, DOE relied on 
its own test sample to estimate the average decrease in AEC due to 
induction.
---------------------------------------------------------------------------

    \35\ Manufacturers selling products into the European market 
publish the normalized average test energy consumption for a cooking 
top. To compare EU data to DOE test data, DOE adjusted for the 
differences in the normalization factors specified in EN 60350-
2:2013 and the DOE test procedure adopted in the December 2016 TP 
Final Rule. DOE then calculated annual energy consumption for the 
European cooking tops using the method specified in section 
4.1.2.1.1 of the test procedure adopted in the December 2016 TP 
Final Rule.
---------------------------------------------------------------------------

    Moreover, as discussed in section III.B of this document, DOE 
updated the AEC and IAEC values for all electric smooth cooking tops in 
its test sample that were equipped with multi-ring surface units

[[Page 81013]]

to reflect the test procedure adopted in the December 2016 TP Final 
Rule. Accordingly, DOE updated its estimates for the efficiency 
improvement due to induction for this NOPD. Additional discussion of 
DOE's estimate of the energy savings attributable to induction 
technology is presented in chapter 5 of the TSD for this NOPD.
    AHAM expressed concern that the use of the automatic power-down 
low-standby-loss electronic controls design option to reduce energy 
consumption for electric smooth cooking tops is not technologically 
feasible. AHAM commented that, based on the combined dataset, reducing 
or eliminating standby energy consumption through the use of the 
automatic power-down design option would not be sufficient to achieve 
the proposed efficiency level for electric smooth cooking tops. AHAM 
noted that only one induction cooking top model in the test sample 
could meet the proposed level by reducing or eliminating its standby 
energy consumption. Therefore, AHAM recommended that DOE adopt a less 
stringent level for electric smooth cooking tops. (AHAM, No. 64 at pp. 
22-23)
    DOE notes that AHAM's conclusion appears to be based on the max-
tech efficiency level rather than the efficiency levels associated with 
low-standby-loss electronic controls that were evaluated in this NOPD. 
As discussed in section IV.C.2.a of this document, DOE revised the 
baseline efficiency level for electric smooth cooking tops based on the 
combined dataset. DOE then applied its estimates for the decrease in 
IAEC that would be expected from implementing low-standby-loss 
electronic controls to the new baseline efficiency level. This resulted 
in higher overall IAECs for these efficiency levels than were proposed 
in the September 2016 SNOPR. With these revised efficiency levels, more 
than 50 percent of electric smooth cooking tops in the combined DOE and 
AHAM test sample have a measured IAEC that already meets the efficiency 
level associated with automatic power-down, the most stringent 
implementation of low-standby-loss electronic controls. Nonetheless, as 
discussed in section V.A of this document, DOE determined that the 
electric smooth cooking top efficiency level associated with the 
automatic power-down low-standby-loss design option may result in a 
loss in the utility of the clock display for combined cooking products. 
As a result, DOE evaluated prescriptive design standards in this NOPD 
for electric smooth cooking tops that would allow for a continuous 
clock display, and accordingly, would not require the elimination of 
clocks from products.
    Table IV-22 and Table IV-23 show the efficiency levels considered 
for the electric cooking top product classes. As discussed in section 
IV.A.2.a and section IV.B.1.a of this document, DOE is no longer 
considering improved contact conductance and halogen lamp elements as 
design options for electric coil cooking tops and electric smooth 
cooking tops, respectively. As a result, DOE did not analyze 
incremental efficiency levels associated with these design options for 
this NOPD. For electric coil cooking tops, this resulted in no 
incremental efficiency levels above the baseline. Additional discussion 
of DOE's analysis of the incremental efficiency levels is presented in 
chapter 5 of the TSD for this NOPD.
[GRAPHIC] [TIFF OMITTED] TP14DE20.022

[GRAPHIC] [TIFF OMITTED] TP14DE20.023

    Table IV-24 shows the incremental efficiency levels for the gas 
cooking top product class proposed in the September 2016 SNOPR. 81 FR 
60784, 60818 (Sept. 2, 2016).

[[Page 81014]]

[GRAPHIC] [TIFF OMITTED] TP14DE20.024

    As discussed in the September 2016 SNOPR, DOE considered multiple 
efficiency levels associated with optimized burner and grate design for 
gas cooking tops. 81 FR 60784, 60817 (Sept. 2, 2016). DOE's testing 
showed that energy use was correlated to burner design (e.g., grate 
weight, flame angle, distance from burner ports to the cooking surface) 
and could be reduced by optimizing the design of the burner and grate 
system. DOE noted that cooking tops that incorporate different 
combinations of burners, including high input rate burners for larger 
food loads, have differing capabilities to cook or heat different sized 
food loads. Based on DOE's review of the test data for the gas cooking 
tops in its test sample, DOE identified three efficiency levels 
associated with improving the burner and grate design that take into 
account key burner configurations. Id.
    DOE proposed Efficiency Level 1 based on an optimized burner and 
improved grate design of the unit in the test sample with the lowest 
measured IAEC among those with cast-iron grates and a six-surface unit 
configuration with at least four out of the six surface units having 
burner input rates exceeding 14,000 Btu/h. DOE selected these criteria 
to maintain the full functionality of cooking tops marketed as 
commercial-style. DOE noted that while there are some such products 
with fewer than six surface units and fewer than four high input rate 
burners, DOE did not observe any products marketed as residential-style 
with the burner configuration DOE associated with Efficiency Level 1. 
Id.
    DOE proposed Efficiency Level 2 for conventional gas cooking tops 
based on an optimized burner and further improved grate design of the 
unit in the DOE test sample with the lowest measured IAEC among those 
units with cast iron grates and at least one surface unit having a 
burner input rate exceeding 14,000 Btu/h. None of the gas units in the 
DOE test sample marketed as commercial-style were capable of achieving 
this efficiency level. The cooking tops in the DOE test sample capable 
of meeting this efficiency level were marketed as residential-style and 
had significantly lighter cast iron grates than the commercial-style 
units. Id.
    DOE proposed Efficiency Level 3 (max-tech) based on the unit in the 
DOE test sample with the lowest measured IAEC among those with cast 
iron grates, regardless of the number of burners or burner input rate. 
DOE noted that the grate weight for this unit was not lowest in the DOE 
test sample, confirming that a fully optimized burner and grate design, 
and not a reduction in grate weight alone, is required to improve 
cooking top efficiency. Id.
    In response to the September 2016 SNOPR, AHAM agreed that DOE 
should adopt standards for gas cooking tops that would ensure that 
commercial-style cooking tops are not eliminated from the market. 
(AHAM, No. 64 at p. 24) However, AHAM commented that there were 
commercial-style products on the market at that time with up to six 
high input rate burners. AHAM's test data indicated that cooking 
products meeting this description were not able to meet DOE's 
Efficiency Level 1 (see Table IV-24, above) as proposed in the 
September 2016 SNOPR. (AHAM, No. 64 at p. 25) Because DOE's proposed 
standard level was designed to maintain the full functionality of 
commercial-style gas cooking tops, AHAM urged DOE to propose a less 
stringent level for gas cooking tops. (AHAM, No. 64 at p. 28)
    Sub-Zero commented that the U.S. market has evolved differently 
than international markets such as Europe, which has driven 
manufacturers on the U.S. market to update product designs to satisfy 
consumer demand for high input rate burners. Sub-Zero commented that 
for high-performance cooking tops, a range of burner input rates allows 
consumers the ability to cook foods that require searing on one burner 
and foods that require melting temperatures on another burner. Sub-Zero 
commented that the large, massive grates complement the burner by 
absorbing heat and allowing consumers more control over the 
distribution of heat so that cooking vessels can be moved off of a 
burner's dead-center position, but still maintain a proper food 
temperature. To demonstrate evidence of the evolving commercial-style 
market and how DOE's efficiency levels for gas cooking tops do not 
adequately account for the utility provided by a range of burner input 
rates, Sub-Zero provided the IAECs for both a model that it had 
discontinued shortly before its comments (with five 15,000 Btu/h 
burners and one 9,200 Btu/h burner) and the updated version of that 
same model that incorporated higher input rate burners (including one 
burner at 20,000 Btu/h and two at 18,000 Btu/h). Sub-Zero's test data, 
presented in Table IV-25, showed that the updated model with the higher 
input rate burners had a higher measured IAEC. (Sub-Zero, No. 66 at pp. 
3-4)

[[Page 81015]]

[GRAPHIC] [TIFF OMITTED] TP14DE20.025

    As discussed in section IV.B.1.a of this document, DOE is no longer 
considering optimized burners and grate designs as a technology option 
for gas cooking tops. As a result, DOE did not analyze incremental 
efficiency levels associated with these design options for this NOPD. 
For gas cooking tops, this resulted in no incremental efficiency levels 
above the baseline.
    Table IV-26 includes the efficiency levels for gas cooking tops 
considered in this NOPD.
[GRAPHIC] [TIFF OMITTED] TP14DE20.026

Conventional Ovens
    For the September 2016 SNOPR, DOE developed incremental efficiency 
levels for each conventional oven product class by first considering 
information from the previous rulemaking analysis described in the 2009 
TSD. In cases where DOE identified design options during testing and 
reverse engineering teardowns, DOE updated the efficiency levels based 
on the tested data. 81 FR 60784, 60818 (Sept. 2, 2016). Table IV-27 
through Table IV-30 present the efficiency levels for each product 
class proposed in the September 2016 SNOPR, normalized based on an oven 
with a cavity volume of 4.3 ft\3\.
[GRAPHIC] [TIFF OMITTED] TP14DE20.027

[GRAPHIC] [TIFF OMITTED] TP14DE20.028


[[Page 81016]]


[GRAPHIC] [TIFF OMITTED] TP14DE20.029

[GRAPHIC] [TIFF OMITTED] TP14DE20.030

[GRAPHIC] [TIFF OMITTED] TP14DE20.031

[GRAPHIC] [TIFF OMITTED] TP14DE20.032


[[Page 81017]]


[GRAPHIC] [TIFF OMITTED] TP14DE20.033

[GRAPHIC] [TIFF OMITTED] TP14DE20.034

c. Relationship Between IAEC and Oven Cavity Volume
    The conventional oven efficiency levels detailed above are 
predicated upon baseline ovens with a cavity volume of 4.3 ft\3\. Based 
on DOE's testing of conventional gas and electric ovens and discussions 
with manufacturers, IAEC scales with oven cavity volume due to larger 
ovens having higher thermal masses and larger volumes of air (including 
larger vent rates) than smaller ovens. Because the DOE test procedure 
adopted in the July 2015 TP Final Rule for measuring IAEC uses a fixed 
test load size, larger ovens with higher thermal mass will have a 
higher measured IAEC. As a result, DOE considered available data to 
characterize the relationship between IAEC and oven cavity volume.
    For the September 2016 SNOPR, DOE established the slopes by first 
evaluating the data from the previous rulemaking analysis described in 
the 2009 TSD, which presented the relationship between measured energy 
factor (``EF'') and cavity volume, then translating from EF to IAEC, 
considering the range of cavity volumes for the majority of products 
available on the market as well as testing of units in DOE's test 
sample. The intercepts for each efficiency level were then chosen so 
that the equations passed through the desired IAEC corresponding to a 
particular volume. 81 FR 60784, 60821-60822 (Sept. 2, 2016).
    As part of the NOPD analysis, DOE updated the intercepts in the 
IAEC versus cavity volume relationships for each product class to 
reflect the revisions to the incremental efficiency levels described in 
section IV.C.2.b of this document. Table IV-35 and Table IV-36 present 
the updated slopes and intercepts for the IAEC versus cavity volume 
relationship for electric and gas ovens, respectively. Additional 
discussion of DOE's derivation of the oven IAEC versus cavity volume 
relationship is presented in chapter 5 of the TSD for this NOPD.
[GRAPHIC] [TIFF OMITTED] TP14DE20.035


[[Page 81018]]


[GRAPHIC] [TIFF OMITTED] TP14DE20.036

3. Cost-Efficiency Results
a. Conventional Cooking Tops
    For the September 2016 SNOPR, DOE developed the cost-efficiency 
results for each conventional cooking top product class shown in Table 
IV-37. Where available, DOE developed incremental MPCs based on 
manufacturing cost modeling of test units in its sample featuring the 
proposed design options. For design options that were not observed in 
DOE's sample of test units for this rulemaking, DOE used the 
incremental manufacturing costs developed as part of the previous 
rulemaking analysis described in the 2009 TSD, then adjusted the values 
to reflect changes in the Bureau of Labor Statistics' Producer Price 
Index (``PPI'') for household cooking appliance manufacturing.\36\ 81 
FR 60784, 60822 (Sept. 2, 2016).
---------------------------------------------------------------------------

    \36\ Available at: http://www.bls.gov/ppi/.
    [GRAPHIC] [TIFF OMITTED] TP14DE20.037
    
    DOE did not receive comments on the incremental MPCs for 
conventional cooking tops presented in the September 2016 SNOPR. As a 
result, DOE maintained its estimates for the incremental MPCs in this 
NOPD, but adjusted the cost-efficiency results to reflect updates to 
parts pricing estimates and the most recent PPI data. DOE also notes 
that it is no longer considering improved contact conductance for 
electric coil cooking tops, halogen lamp elements for electric smooth 
cooking tops, and optimized burner and grate designs for gas cooking 
tops, as discussed in section IV.C.2.b of this document. As a result, 
DOE updated the cost-efficiency results to reflect the revised 
efficiency levels. The updated estimates for the incremental MPCs 
considered in this NOPD are presented in Table IV-38.
[GRAPHIC] [TIFF OMITTED] TP14DE20.038

b. Conventional Ovens
    As described in the September 2016 SNOPR, DOE developed the cost-
efficiency results for each conventional oven product class shown in 
Table IV-39. DOE noted that the estimated incremental MPCs would be 
equivalent for the freestanding and built-in/slide-in oven product 
classes. 81 FR 60784, 60823 (Sept. 2, 2016).

[[Page 81019]]

[GRAPHIC] [TIFF OMITTED] TP14DE20.039

    As for conventional cooking tops, DOE did not receive comments on 
the incremental MPCs for conventional ovens presented in the September 
2016 SNOPR. As a result, DOE maintained its estimates for the 
incremental MPCs in this NOPD, but adjusted the cost-efficiency results 
to reflect updates to parts pricing estimates and the most recent PPI 
data. DOE also notes that it is no longer considering intermittent/
interrupted and intermittent pilot ignition systems or reduced 
conduction losses as design options for conventional ovens, as 
discussed in section IV.C.2.b of this document. As a result, DOE 
updated the cost-efficiency results to reflect the revised efficiency 
levels. The updated estimates for the incremental MPCs considered in 
this NOPD are presented in Table IV-40.
[GRAPHIC] [TIFF OMITTED] TP14DE20.040

4. Consumer Utility
    In determining whether a standard is economically justified, EPCA 
requires DOE to consider ``any lessening of the utility or the 
performance of the covered products likely to result from the 
imposition of the standard.'' (42 U.S.C. 6295(o)(2)(B)(i)(IV))
a. Conventional Cooking Tops
    DOE stated in the September 2016 SNOPR that it did not believe that 
the design options and efficiency levels associated with the proposed 
standards would impact the consumer utility of conventional cooking 
tops. DOE noted that the proposed standards for gas cooking tops 
corresponded to the efficiency level that would maintain features of 
gas cooking tops marketed as commercial-style, namely multiple high 
input rate burners (i.e., greater than 14,000 Btu/h) that would allow 
for quicker cooking times. DOE stated in the September 2016 SNOPR that 
the proposed standards for gas cooking tops would not preclude the 
availability of cooking tops marketed as commercial-style. 81 FR 60784, 
60823 (Sept. 2, 2016).
    AHAM commented that commercial-style products provide consumer 
utility and incorporate certain features that are expected by 
purchasers of such products such as heavier cast iron grates to support 
larger, heavier loads and high input rate burners to provide faster 
cooking times for such loads. According to AHAM, the heavier grates 
provide additional consumer utility by retaining heat that helps 
provide for even heat distribution in the cooking vessel during the 
cool down/simmering phase and allows consumers to keep the cooking 
vessel warm by moving the pot off center. AHAM added that heavier 
grates allow for a sliding motion across burners to mix food without 
dislodging the grates. AHAM commented that heavier grates also provide 
increased durability and reliability over the lifetime of the product. 
AHAM stated that high input rate burners allow for cooking techniques 
not possible with lower burner input rates, such as flamb[eacute], wok 
cooking, canning, and pressure cooking. AHAM claims that high input 
rate burners also provide for a better sear on meat, which provides 
better flavor and texture, due to the higher temperature. (AHAM, No. 64 
at p. 24)
    Spire and AHAM stated that DOE's proposed standards would likely 
eliminate commercial-style gas cooking products from the market, which 
Spire believes would contravene the provisions set forth for adopting 
new or amended standards under section 6295(o)(4)) of EPCA. (AHAM, No. 
64 at p. 27; Spire, No. 61 at p. 5)
    AHAM stated that although products in Europe can be designed to 
have a lower flame to reduce energy consumption, this is not possible 
in the United States because the CO levels of the burner will increase 
beyond the acceptable limits specified in ANSI Z21.1. (AHAM, No. 64 at 
p. 28) AHAM stated that manufacturers are already incentivized to 
optimize burner and

[[Page 81020]]

grate design because it is less costly to use smaller gauge metals.\37\ 
AHAM believes the lower material costs for lighter-weight grates 
supports its point that heavier grates and higher input rate burners 
offer consumer utility--if consumers did not demand these features, 
manufacturers would choose the lower cost option. (AHAM, No. 64 at p. 
24) Miele commented that the European market for cooking appliances 
varies greatly from the product offerings in the United States. Miele 
noted that gas cooking has a very small market share in Europe, 
electric cooking products are most prevalent, and commercial-style 
cooking products are not typically offered to residential consumers. 
Miele also noted that safety standards and CO emission levels are 
stricter in the United States. (Miele, No. 60 at p. 3)
---------------------------------------------------------------------------

    \37\ AHAM also commented that while reducing the gauge of the 
grates reduces material cost, this does not include the retooling 
costs resulting from a switch from heavier grates to lighter ones. 
(AHAM, No. 64 at p. 24)
---------------------------------------------------------------------------

    For electric cooking tops, DOE conducted the engineering analysis 
by considering cooking top design options that are consistent with 
products currently on the U.S. market. For gas cooking tops, as 
discussed in section IV.C.2.b of this document, DOE revised the 
evaluated baseline efficiency level based on additional test data and 
information regarding commercial-style cooking tops. As discussed in 
section IV.A.1.a of this document, DOE did not consider establishing a 
separate product class for commercial-style gas cooking tops, noting 
that there are no clearly-defined and consistent design differences and 
corresponding utility provided by commercial-style gas cooking tops as 
compared to residential-style gas cooking tops. Further, as discussed 
in section III.B of this document, DOE eliminated optimized burner and 
grate designs from consideration as a technology option in this NOPD. 
As a result, DOE has initially determined that the existing 
prescriptive standards for gas cooking tops that preclude the use of 
constant burning pilot lights do not warrant amendment.
b. Conventional Ovens
    DOE stated in the September 2016 SNOPR that it conducted the 
engineering analysis by considering design options that are consistent 
with products currently on the market and that it did not believe that 
any of the design options and efficiency levels considered would impact 
the consumer utility of conventional ovens. 81 FR 60784, 60823. DOE 
noted in the September 2016 SNOPR that it was not able to identify a 
clearly-defined utility provided to consumers by commercial-style ovens 
and, as a result, DOE did not establish separate product classes for 
these products. However, DOE recognized that commercial-style ovens are 
a product type that typically incorporate certain features that may be 
expected by purchasers of such products (e.g., heavier-gauge cavity 
construction, high input rate burners, and extension racks). DOE also 
noted that these features result in inherently lower efficiencies for 
commercial-style ovens than for residential-style ovens with comparable 
cavities sizes, due to the greater thermal mass of the cavity and 
racks, when measured using the test procedure adopted in the July 2015 
TP Final Rule. As discussed in section III.B of this document, DOE 
repealed the oven test procedure in the December 2016 TP Final Rule due 
to uncertainties in its ability to measure representative energy use of 
commercial-style ovens. As a result of these uncertainties, DOE did not 
propose a performance-based standard for conventional ovens, but 
instead proposed a prescriptive design requirement for the conventional 
oven control system in the September 2016 SNOPR. 81 FR 60784, 60823-
60824 (Sept. 2, 2016). DOE did not receive any comments regarding the 
impact of the proposed standards on conventional ovens. For the reasons 
discussed above, DOE maintains its findings from the September 2016 
SNOPR that the evaluated prescriptive-based standards would not impact 
the consumer utility of conventional ovens.

D. Markups Analysis

    The markups analysis develops appropriate markups (e.g., 
manufacturer markups, retailer markups, distributor markups, contractor 
markups) in the distribution chain and sales taxes to convert the MPCs 
determined in the engineering analysis to consumer prices, which are 
then used in the LCC and PBP analysis and in the MIA. At each step in 
the distribution channel, companies mark up the price of the product to 
cover business costs and profit margins.
    For consumer conventional cooking products, the main parties in the 
distribution chain are manufacturers, retailers, and consumers.
    The manufacturer markup converts MPC to manufacturer selling price 
(``MSP''). DOE developed an average manufacturer markup by examining 
the annual Securities and Exchange Commission (``SEC'') 10-K reports 
filed by publicly-traded manufacturers primarily engaged in appliance 
manufacturing and whose combined product range includes consumer 
conventional cooking products.
    DOE developed baseline and incremental markups for each actor in 
the distribution chain. Baseline markups are applied to the price of 
products with baseline efficiency, while incremental markups are 
applied to the difference in price between baseline and higher-
efficiency models (the incremental cost increase). The incremental 
markup is typically less than the baseline markup, and is designed to 
maintain similar per-unit operating profit before and after new or 
amended standards.\38\
---------------------------------------------------------------------------

    \38\ Because the projected price of standards-compliant products 
is typically higher than the price of baseline products, using the 
same markup for the incremental cost and the baseline cost would 
result in higher per-unit operating profit. While such an outcome is 
possible, DOE maintains that in markets that are reasonably 
competitive it is unlikely that standards would lead to a 
sustainable increase in profitability in the long run.
---------------------------------------------------------------------------

    DOE relied on economic data from the U.S. Census Bureau to estimate 
average baseline and incremental markups.\39\
---------------------------------------------------------------------------

    \39\ 2012 Annual Retail Trade Survey, Electronics and Appliance 
Stores (NAICS 443). 2012. Washington, DC http://www.census.gov/retail/arts/historic_releases.html.
---------------------------------------------------------------------------

    AHAM commented that it strongly disagrees with the concept of 
incremental markups. According to AHAM, manufacturers, wholesalers, 
retailers and contractors have all provided numerous amounts of data, 
studies, and surveys saying that the incremental markup concept has no 
foundation in actual practice. AHAM asked what additional information 
DOE would need to reassess the markups approach. AHAM further asked if 
DOE would agree to put the concept of incremental markups up for peer 
review. (AHAM, No. 64 at p. 31) AHAM stated that DOE persists in 
relying on a simplistic interpretation of economic theory that assumes 
only variable costs can be passed through to customers because economic 
returns on capital cannot increase in a competitive marketplace. 
According to AHAM, it and the other associations and industry 
participants take the position that DOE's conclusions are incorrect and 
that percentage margins throughout the distribution channels have 
remained largely constant. In addition, AHAM asserted that Shorey 
Consulting has shown that empirical studies of industry structure and 
other variables have only weak correlation with profitability, 
demonstrating that the economic theory DOE relies upon is proven not to 
apply in practice. AHAM commented that DOE should submit both its work 
and that of the various industry groups to an

[[Page 81021]]

independent peer review process. (AHAM, No. 64 at p. 31)
    DOE disagrees that the theory behind the concept of incremental 
markups has been disproved. The concept is based on a simple notion: an 
increase in profitability, which is implied by keeping a fixed markup 
percentage when the product price goes up, is not likely to be viable 
over time in a business that is reasonably competitive. DOE agrees that 
empirical data on markup practices would be desirable, but such 
information is closely held and difficult to obtain.
    Regarding the Shorey Consulting interviews with appliance 
retailers, although the retailers said that they maintained the same 
percentage margin after amended standards for refrigerators took 
effect, it is not clear to what extent the wholesale prices of 
refrigerators actually increased. There is some empirical evidence 
indicating that prices may not always increase following a new 
standard.40 41 42 If this happened to be the case following 
the new refrigerator standard, then there is no reason to suppose that 
percentage margins changed either.
---------------------------------------------------------------------------

    \40\ Spurlock, C. A. 2013. ``Appliance Efficiency Standards and 
Price Discrimination.'' Lawrence Berkeley National Laboratory Report 
LBNL-6283E.
    \41\ Houde, S. and C. A. Spurlock. 2015. ``Do Energy Efficiency 
Standards Improve Quality? Evidence from a Revealed Preference 
Approach.'' Lawrence Berkeley National Laboratory Report LBNL-
182701.
    \42\ Taylor, M., C. A. Spurlock, and H.-C. Yang. 2015. 
``Confronting Regulatory Cost and Quality Expectations: An 
Exploration of Technical Change in Minimum Efficiency Performance 
Standards.'' Resources for the Future (RFF) 15-50.
---------------------------------------------------------------------------

    DOE's analysis necessarily considers a simplified version of the 
world of appliance retailing; namely, a situation in which other than 
appliance product offerings, nothing changes in response to amended 
standards. DOE's analysis assumes that product cost will increase while 
the other costs remain constant (i.e., no change in labor, material, or 
operating costs), and asks whether retailers will be able to keep the 
same markup percentage over time. DOE recognizes that retailers are 
likely to seek to maintain the same markup percentage on appliances if 
the price they pay goes up as a result of appliance standards, but DOE 
contends that over time downward adjustments are likely to occur due to 
competitive pressures. Some retailers may find that they can gain sales 
by reducing the markup and maintaining the same per-unit gross profit 
as they had before the new standard took effect. Additionally, DOE 
contends that retail pricing is more complicated than a simple 
percentage margin or markup. Retailers undertake periodic sales and 
they reduce the prices of older models as new models come out to 
replace them.43 44 45 Even if retailers maintain the same 
percent markup when appliance wholesale prices increase as the result 
of a standard, retailers may respond to competitive pressures and 
revert to pre-standard average per-unit profits by holding more 
frequent sales, discounting products under promotion to a greater 
extent, or discounting older products more quickly. These factors would 
counteract the higher percentage markup on average, resulting in much 
the same effect as a lower percentage markup in terms of the prices 
consumers actually face on average.
---------------------------------------------------------------------------

    \43\ Bagwell, K. and Riordan, M.H., 1991. ``High and declining 
prices signal product quality.'' The American Economic Review, pp. 
224-239.
    \44\ Betts, E. and Peter, J.M., 1995. ``The strategy of the 
retail `sale': typology, review and synthesis.'' International 
Review of Retail, Distribution and Consumer Research, 5(3), pp. 303-
331.
    \45\ Elmaghraby, W. and Keskinocak, P., 2003. ``Dynamic pricing 
in the presence of inventory considerations: Research overview, 
current practices, and future directions.'' Management Science, 
49(10), pp. 1287-1309.
---------------------------------------------------------------------------

    DOE acknowledges that its approach to estimating retailer markup 
practices after amended standards take effect is an approximation of 
real-world practices that are both complex and varying with business 
conditions. However, DOE continues to maintain that its assumption that 
standards do not facilitate a sustainable increase in profitability is 
reasonable.
    Chapter 6 of the TSD for this NOPD provides details on DOE's 
development of markups for consumer conventional cooking products.

E. Energy Use Analysis

    The purpose of the energy use analysis is to determine the annual 
energy consumption of consumer conventional cooking products at 
different efficiencies in representative U.S. single-family homes, and 
multi-family residences, and to assess the energy savings potential of 
increased cooking product efficiency. The energy use analysis estimates 
the range of energy use of consumer conventional cooking products in 
the field (i.e., as they are actually used by consumers) at the 
considered efficiency levels. DOE uses these values in the LCC and PBP 
analyses and in the NIA to establish the savings in consumer operating 
costs at various product efficiency levels. DOE developed energy 
consumption estimates for all product classes analyzed in the 
engineering analysis.
    For this analysis, DOE used the 2009 California Residential 
Appliance Saturation Survey (``RASS'') \46\ and a Florida Solar Energy 
Center (``FSEC'') study \47\ to establish representative annual energy 
use values for conventional cooking tops and ovens. These studies 
confirmed that annual cooking energy use has been consistently 
declining since the late 1970s.
---------------------------------------------------------------------------

    \46\ California Energy Commission, Residential Appliance 
Saturation Survey (RASS) (2009).
    \47\ Parker, D., Fairey, P., Hendron, R., ``Updated 
Miscellaneous Electricity Loads and Appliance Energy Usage Profiles 
for Use in Home Energy Ratings, the Building America Benchmark 
Procedures and Related Calculations,'' Florida Solar Energy Center 
(FSEC) (2010).
---------------------------------------------------------------------------

    Energy use by consumer conventional cooking products varies greatly 
based on consumer usage patterns. DOE established a range of energy use 
from data in the Energy Information Administration (``EIA'')'s 2015 
Residential Energy Consumption Survey (``RECS 2015'').\48\ RECS 2015 
does not provide the annual energy consumption of cooking products, but 
it does provide the frequency of cooking product use.\49\ DOE was 
unable to use the frequency of use to calculate the annual energy 
consumption using a bottom-up approach, as data in RECS did not include 
information about the duration of a cooking event to allow for an 
annual energy use calculation. DOE therefore relied on California RASS 
and FSEC studies to establish the average annual energy consumption of 
conventional cooking tops and ovens.
---------------------------------------------------------------------------

    \48\ U.S. Department of Energy: Energy Information 
Administration, Residential Energy Consumption Survey: 2015 RECS 
Survey Data (2017) (Available at: http://www.eia.gov/consumption/residential/data/2015/). RECS 2015 is based on a sample of 5,686 
households statistically selected to represent 118.2 million housing 
units in the United States.
    \49\ DOE was unable to use the frequency of use to calculate the 
annual energy consumption using a bottom-up approach, as data in 
RECS did not include information about the duration of a cooking 
event to allow for an annual energy use calculation.
---------------------------------------------------------------------------

    From RECS 2015, DOE developed household samples for each product 
class. For each household using a consumer conventional cooking 
product, RECS provides data on the frequency of use and number of meals 
cooked in the following bins: (1) Less than once per week, (2) once per 
week, (3) a few times per week, (4) once per day, (5) two times per 
day, and (6) three or more times per day. DOE utilized the frequency of 
use to define the variability of the annual energy consumption. First, 
DOE assumed that the weighted-average cooking frequency from RECS 
represents the average energy use values based on the California RASS 
and FSEC studies. DOE then varied the annual energy consumption across 
the RECS households based on their reported

[[Page 81022]]

cooking frequency relative to the weighted-average cooking frequency.
    Since there were no comments on DOE's approach to developing the 
energy use analysis, DOE retained the approach used for this NOPD. 
Chapter 7 of the TSD for this NOPD describes the energy use analysis 
for consumer conventional cooking products in detail.

F. Life-Cycle Cost and Payback Period Analysis

    DOE conducted LCC and PBP analyses to evaluate the economic impacts 
on individual consumers of potential energy conservation standards for 
consumer conventional cooking products. The effect of new or amended 
energy conservation standards on individual consumers usually involves 
a reduction in operating cost and an increase in purchase cost. DOE 
used the following two metrics to measure consumer impacts:
     The LCC (life-cycle cost) is the total consumer expense of 
an appliance or product over the life of that product, consisting of 
total installed cost (MSP, distribution chain markups, sales tax, and 
installation costs) plus operating costs (expenses for energy use, 
maintenance, and repair). To compute the operating costs, DOE discounts 
future operating costs to the time of purchase and sums them over the 
lifetime of the product.
     The PBP (payback period) is the estimated amount of time 
(in years) it takes consumers to recover the increased purchase cost 
(including installation) of a more-efficient product through lower 
operating costs. DOE calculates the PBP by dividing the change in 
purchase cost at higher efficiency levels by the change in annual 
operating cost for the year that amended or new standards are assumed 
to take effect.
    For any given efficiency level, DOE measures the change in LCC 
relative to the LCC in the no-new-standards case, which reflects the 
estimated efficiency distribution of cooking products in the absence of 
new or amended energy conservation standards. In contrast, the PBP for 
a given efficiency level is measured relative to the baseline product.
    For each considered efficiency level in each product class, DOE 
calculated the LCC and PBP for a nationally representative set of 
housing units. As stated previously, DOE developed household samples 
from the 2015 RECS. For each sample household, DOE determined the 
energy consumption for the cooking product and the appropriate 
electricity price. By developing a representative sample of households, 
the analysis captured the variability in energy consumption and energy 
prices associated with the use of consumer conventional cooking 
products.
    Inputs to the calculation of total installed cost include the cost 
of the product--which includes MPCs, manufacturer markups, retailer and 
distributor markups, and sales taxes--and installation costs. Inputs to 
the calculation of operating expenses include annual energy 
consumption, energy prices and price projections, repair and 
maintenance costs, product lifetimes, and discount rates. DOE created 
distributions of values for product lifetime, discount rates, and sales 
taxes, with probabilities attached to each value, to account for their 
uncertainty and variability.
    The computer model DOE uses to calculate the LCC and PBP, which 
incorporates Crystal Ball\TM\ (a commercially-available software 
program), relies on a Monte Carlo simulation to incorporate uncertainty 
and variability into the analysis. The Monte Carlo simulations randomly 
sample input values from the probability distributions and cooking 
product user samples. The model calculated the LCC and PBP for products 
at each efficiency level for 10,000 housing units per simulation run.
    DOE calculated the LCC and PBP for all consumers of conventional 
cooking products as if each were to purchase a new product in the 
expected first year of required compliance with new or amended 
standards. Any amended standards would apply to cooking products 
manufactured 3 years after the date on which any new or amended 
standard is published. (42 U.S.C. 6295(m)(4)(A)(i)) Therefore, DOE used 
2023 as the first full year of compliance with any amended standards 
for consumer conventional cooking products.
    Table IV-41 summarizes the approach and data DOE used to derive 
inputs to the LCC and PBP calculations. The subsections that follow 
provide further discussion. Details of the spreadsheet model, and of 
all the inputs to the LCC and PBP analyses, are contained in chapter 8 
of the TSD for this NOPD and its appendices.

[[Page 81023]]

[GRAPHIC] [TIFF OMITTED] TP14DE20.041

1. Product Cost
    To calculate consumer product costs, DOE multiplied the MPCs 
developed in the engineering analysis by the markups described in 
section IV.D of this document (along with sales taxes). DOE used 
different markups for baseline products and higher-efficiency products, 
because DOE applies an incremental markup to the increase in MSP 
associated with higher-efficiency products. DOE assumed that the 
product costs would be the same in the compliance year as at the time 
of this analysis.
2. Installation Cost
    Installation costs include labor, overhead, and any miscellaneous 
materials and parts needed to install the product. For this evaluation, 
DOE used data from the 2015 RS Means Residential Cost Data on labor 
requirements to estimate installation costs for consumer conventional 
cooking products.\50\
---------------------------------------------------------------------------

    \50\ RS Means Company Inc., RS Means Residential Cost Data 
(2015) (Available at http://rsmeans.reedconstructiondata.com/default.aspx).
---------------------------------------------------------------------------

    In general, DOE estimated that installation costs would be the same 
for different efficiency levels. In the case of electric smooth cooking 
tops, the induction heating design option requires a change of cookware 
to those that are ferromagnetic to operate the cooking tops. DOE 
treated this as additional installation cost for this particular design 
option. DOE used average number of pots and pans utilized by a 
representative household and average retail price of induction-
compatible cooking utensils to estimate this portion of the 
installation cost. AHAM requested DOE to provide details on how the 
cost required to change cookware when purchasing an induction cooking 
top was obtained. The comment specifically requested details regarding 
the approach used for estimating the average number of pots and pans to 
be replaced, as well as the retail average price of an induction-
compatible utensil. AHAM also suggested that DOE investigate consumers' 
cost of upgrading their wiring to ensure necessary amperes are directed 
to the cooking activity without compromising power to other areas of 
the home. (AHAM, No. 64 at pp. 31-32) For the September 2016 SNOPR as 
well as the updated analysis in this proposal, DOE utilized the Willem 
et al. study to determine the average number of pots and pans to be 
replaced.\51\ With regard to those consumers who may need to upgrade 
the electrical wiring to accommodate for higher amperage, DOE did not 
have information about the existing amperage of the electrical circuit 
of the consumer population. In order to be representative of the 
consumer population in this NOPD, DOE estimated an average additional 
cost based on the assumption that 50 percent of the user population may 
need upgrades and 50 percent may not, using the wiring cost contained 
in 2015 RS Means Mechanical Cost Data. See chapter 8 of the TSD for 
this NOPD for details about this component. Given the installation 
costs of the induction cooking top, the market share is expected to 
remain at 1.6 percent in the standards case in the year 2023. See 
section IV.F.9 and section IV.H.1 of this document for details on the 
market shares.
---------------------------------------------------------------------------

    \51\ Willem, H. et al. 2015. ``Understanding Cooking Behavior in 
U.S. Households.''

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

[[Page 81024]]

3. Annual Energy Consumption
    For each sampled household, DOE determined the energy consumption 
for a cooking product at different efficiency levels using the approach 
described above in section IV.E of this document.
4. Energy Prices
    DOE used average prices (for baseline products) and marginal prices 
(for higher-efficiency products) which vary by season, region, and 
baseline electricity consumption level for the LCC. DOE derived 
marginal residential electricity and natural gas prices for 27 
geographic areas.\52\ Marginal prices are appropriate for determining 
energy cost savings associated with possible changes to efficiency 
standards.
---------------------------------------------------------------------------

    \52\ DOE characterized the geographic distribution into 27 
geographic areas to be consistent with the 27 States and group of 
States reported in RECS 2009.
---------------------------------------------------------------------------

    For electricity, DOE derived marginal and average prices which vary 
by season, region, and baseline electricity consumption level. DOE 
estimated these prices using data published with the Edison Electric 
Institute (``EEI''), Typical Bill and Average Rates reports for summer 
and winter 2018.\53\ For the residential sector each report provides, 
for most of the major investor-owned utilities (``IOUs'') in the 
country, the total bill assuming household consumption levels of 500, 
750, and 1,000 kWh for the billing period.
---------------------------------------------------------------------------

    \53\ Edison Electric Institute. Typical Bills and Average Rates 
Report. Winter 2018 published January 2018, Summer 2018 published 
July 2018. Available at: http://www.eei.org/resourcesandmedia/products/Pages/Products.aspx.
---------------------------------------------------------------------------

    For the residential sector, DOE defined the average price as the 
ratio of the total bill to the total electricity consumption. DOE also 
used the EEI data to define a marginal price as the ratio of the change 
in the bill to the change in energy consumption. DOE first calculated 
weighted-average values for each geographic area for each type of 
price. Each EEI utility in an area was assigned a weight based on the 
number of consumers it serves. Consumer counts were taken from the most 
recent EIA Form 861 data (2018).\54\
---------------------------------------------------------------------------

    \54\ U.S. Department of Energy, Energy Information 
Administration. Form EIA-861 Annual Electric Power Industry 
Database. http://www.eia.doe.gov/cneaf/electricity/page/eia861.html.
---------------------------------------------------------------------------

    DOE assigned seasonal average prices to each household in the LCC 
sample based on its location and its baseline monthly electricity 
consumption for an average summer or winter month. For sampled 
households who were assigned a product efficiency greater than or equal 
to the considered level for a standard in the no-new-standards case, 
DOE assigned marginal price to each household based on its location and 
the decremented electricity consumption. In the LCC sample, households 
could be assigned to one of 27 geographic areas.
    DOE obtained data for calculating prices of natural gas from the 
EIA publication, Natural Gas Navigator.\55\ DOE used the complete 
annual data for 2017 to calculate an average annual price for each 
geographic area. (For use in the LCC model, prices were scaled to 
2018$.) For each State, DOE calculated the annual residential price of 
natural gas using a simple average of data. DOE then calculated a price 
for each geographic area, weighting each State in an area by its number 
of households.
---------------------------------------------------------------------------

    \55\ U.S. Department of Energy--Energy Information 
Administration. Natural Gas Navigator. 2014. (Last accessed 
September 26, 2016.) http://eia.doe.gov/dnav/ng/ng_pri_sum_dcu_nus_m.htm.
---------------------------------------------------------------------------

    The method used to calculate marginal natural gas prices differs 
from that used to calculate electricity prices, because EIA does not 
provide consumer- or utility-level data on gas consumption and prices. 
EIA provides historical monthly natural gas consumption and 
expenditures by State. This data was used to determine 10-year average 
marginal price factors for the geographical areas. These factors are 
then used to convert average monthly energy prices into marginal 
monthly energy prices. Because cooking products operate all year 
around, DOE determined summer and winter marginal price factors.
    To estimate energy prices in future years, DOE multiplied the 
average regional energy prices by projections of annual change in 
national-average residential energy found in AEO 2019.\56\ AEO 2019 has 
an end year of 2050. To estimate price trends after 2050, DOE used the 
average annual rate of change in prices from 2030 through 2050.
---------------------------------------------------------------------------

    \56\ EIA. Annual Energy Outlook 2019 with Projections to 2050. 
Washington, DC. Available at www.eia.gov/forecasts/aeo/.
---------------------------------------------------------------------------

    See Chapter 8 of the TSD for this NOPD for more information on the 
derivation of energy prices.
5. Maintenance and Repair Costs
    Repair costs are associated with repairing or replacing product 
components that have failed in an appliance; maintenance costs are 
associated with maintaining the operation of the product. Typically, 
small incremental increases in product efficiency produce no, or only 
minor, changes in repair and maintenance costs compared to baseline 
efficiency products.
    For all electric cooking products, DOE did not include any changes 
in maintenance and repair for products more efficient than baseline 
products.
    Spire stated that DOE did not provide explanation as to why 
Electrolux's comment regarding glo-bar repair frequency was ignored. 
(Spire, No. 61 at p. 6-7). In the September 2016 SNOPR, DOE determined 
the repair and maintenance costs associated with different types of 
ignition systems for gas ovens. Utilizing inputs from interested 
parties, including Electrolux, along with the earlier data from 
manufacturers, DOE revised the average repair cost attributable to glo-
bar and electronic spark ignition systems and annualized it over the 
life of the unit for glo-bar and electronic spark ignition systems. 81 
FR 60784, 60827. For this rule, taking into account manufacturer inputs 
and test data for standard and self-clean gas ovens, DOE revised the 
efficiency levels, and electronic spark ignition has been eliminated in 
the considered levels (see section IV.C of this document). The issue of 
frequency of repair of glo-bar is therefore no longer relevant.
    Based on input from manufacturers, DOE did not include maintenance 
costs for glo-bars.
    See chapter 8 of the TSD accompanying this NOPD for further 
information regarding repair and maintenance costs.
6. Product Lifetime
    Equipment lifetime is the age at which the equipment is retired 
from service. In the September 2016 SNOPR, DOE revised the average 
lifetime estimates based on data provided by AHAM, thereby establishing 
average product lifetime of 16 years for all electric cooking products 
and 13 years for all gas cooking products. 81 FR 60784, 60827. AHAM 
provided further detail on the average useful life by product 
categories, such as electric range, gas range, wall oven, and electric 
cooking top. (AHAM, No. 64 at p. 32) Utilizing this detail and the 
market shares of these product categories, DOE fine-tuned the average 
lifetime estimates to a more representative 16.8 years for all electric 
cooking products and 14.5 years for all gas cooking products. DOE 
characterized the product lifetimes with Weibull probability 
distributions.
    See chapter 8 of the TSD accompanying this NOPD for further details 
on the sources used to develop product lifetimes, as well as the use of 
Weibull distribution.
7. Discount Rates
    In the calculation of LCC, DOE applies discount rates appropriate 
to households to estimate the present

[[Page 81025]]

value of future operating costs. DOE estimated a distribution of 
residential discount rates for cooking products based on consumer 
financing costs and the opportunity cost of consumer funds.
    DOE applies weighted-average discount rates calculated from 
consumer debt and asset data, rather than marginal or implicit discount 
rates.\57\ DOE notes that the LCC does not analyze the appliance 
purchase decision, so the implicit discount rate is not relevant in 
this model. The LCC estimates net present value over the lifetime of 
the product, so the appropriate discount rate will reflect the general 
opportunity cost of household funds, taking this time scale into 
account. Given the long time horizon modeled in the LCC, the 
application of a marginal interest rate associated with an initial 
source of funds is inaccurate. Regardless of the method of purchase, 
consumers are expected to continue to rebalance their debt and asset 
holdings over the LCC analysis period, based on the restrictions 
consumers face in their debt payment requirements and the relative size 
of the interest rates available on debts and assets. DOE estimates the 
aggregate impact of this rebalancing using the historical distribution 
of debts and assets.
---------------------------------------------------------------------------

    \57\ The implicit discount rate is inferred from a consumer 
purchase decision between two otherwise identical goods with 
different first cost and operating cost. It is the interest rate 
that equates the increment of first cost to the difference in net 
present value of lifetime operating cost, incorporating the 
influence of several factors: Transaction costs, risk premiums and 
response to uncertainty, time preferences, interest rates at which a 
consumer is able to borrow or lend.
---------------------------------------------------------------------------

    To establish residential discount rates for the LCC analysis, DOE 
identified all relevant household debt or asset classes in order to 
approximate a consumer's opportunity cost of funds related to appliance 
energy cost savings. It estimated the average percentage shares of the 
various types of debt and equity by household income group using data 
from the Federal Reserve Board's Survey of Consumer Finances \58\ 
(``SCF'') for 1995, 1998, 2001, 2004, 2007, 2010, 2013, and 2016. Using 
the SCF and other sources, DOE developed a distribution of rates for 
each type of debt and asset by income group to represent the rates that 
may apply in the year in which amended standards would take effect. DOE 
assigned each sample household a specific discount rate drawn from one 
of the distributions. The average rate across all types of household 
debt and equity and income groups, weighted by the shares of each type, 
is 4.2 percent. See chapter 8 of the TSD for this NOPD for further 
details on the development of consumer discount rates.
---------------------------------------------------------------------------

    \58\ The Federal Reserve Board, Survey of Consumer Finances 
1995, 1998, 2001, 2004, 2007, 2010, 2013, and 2016. http://www.federalreserve.gov/pubs/oss/oss2/scfindex.html.
---------------------------------------------------------------------------

8. Energy Efficiency Distribution in the No-New-Standards Case
    To accurately estimate the share of consumers that would be 
affected by a potential energy conservation standard at a particular 
efficiency level, DOE's LCC analysis considered the projected 
distribution (market shares) of product efficiencies under the no-new-
standards case (i.e., the case without amended or new energy 
conservation standards).
    To estimate the share of consumers that would be affected by a 
potential energy conservation standard at a particular efficiency 
level, DOE's LCC analysis considered the projected distribution (market 
shares) of product efficiencies in the no-new-standards case (i.e., the 
case without amended or new energy conservation standards). This 
approach reflects the fact that some consumers may purchase products 
with efficiencies greater than the baseline levels.
    To establish the current efficiency distribution for electric 
cooking products and conventional gas ovens, DOE developed and 
implemented a consumer-choice model \59\ that assumes most consumers 
(i.e., home owners \60\) are sensitive to the appliance first cost, and 
calculates the market share for available efficiency options based on 
the initial cost of electric cooking products and gas ovens at each 
efficiency level. DOE used a logit model to characterize historical 
shipments as a function of purchase price. In order to develop the 
logit model, DOE utilized shipments data collected by Market Research 
Magazine \61\ and the PPI of household cooking appliance manufacturing 
\62\ in the years 2002-2012, along with the consumer purchase price 
derived from the engineering analysis, to analyze factors that 
influence consumer purchasing decisions. Using this model, DOE found 
that historical shipments show a strong dependence on the first costs 
for electric cooking products and conventional gas ovens, and developed 
the best-fit logit parameters to capture this relationship. DOE then 
used the parameters to derive the market share for available efficiency 
options for home owners. Given that landlords generally have little 
incentive to install higher-efficiency products. DOE assigned the 
purchases of renters in the RECS sample to the baseline efficiency 
level.
---------------------------------------------------------------------------

    \59\ DOE developed this consumer choice model for this proposed 
determination, the details of which are outlined in chapter 8 of the 
TSD for this NOPD. This consumer choice framework has been used in 
many rulemakings and is also a key component in EIA's NEMS 
residential model to simulate appliance purchases over a range of 
efficiencies.
    \60\ DOE assumed that landlords would have no economic incentive 
to purchase higher-efficiency products and renters would have no 
decision-making power to purchase or replace an electric cooking 
product or gas oven.
    \61\ UBM Canon, Market Research Magazine: Appliance Historical 
Statistical Review, 2014.
    \62\ U.S. Bureau of Labor Statistics, Producer Price Index 
Industry Data: Household cooking appliance manufacturing, 2014.
---------------------------------------------------------------------------

    To establish the current efficiency distribution for gas cooking 
tops, DOE relied on publicly available data on gas cooking top models 
in the market \63\ and their configuration with regard to grates and 
burner input rates to characterize the efficiency distribution. Given 
the lack of data on historic efficiency trends, DOE assumed that the 
estimated current distributions would apply in 2023.
---------------------------------------------------------------------------

    \63\ Model data collected from the websites of AJ Madison, Best 
Buy, and Lowe's.
---------------------------------------------------------------------------

    Table IV-42, Table IV-43, and Table IV-44 present the market shares 
of the efficiency levels in the no-new-standards case for consumer 
conventional cooking products.\64\
---------------------------------------------------------------------------

    \64\ For the conventional oven product classes, the efficiency 
levels are based on an oven with a cavity volume of 4.3 ft\3\. As 
discussed in section IV.C.2.c of this document, DOE developed slopes 
and intercepts to characterize the relationship between IEAC and 
cavity volume for each efficiency level.

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[[Page 81026]]

[GRAPHIC] [TIFF OMITTED] TP14DE20.042

[GRAPHIC] [TIFF OMITTED] TP14DE20.043

[GRAPHIC] [TIFF OMITTED] TP14DE20.044

    See chapter 8 of the TSD accompanying this NOPD for further 
information regarding no-new-standards efficiency distribution.
9. Payback Period Analysis
    The payback period is the amount of time it takes the consumer to 
recover the additional installed cost of more-efficient products, 
compared to baseline products, through energy cost savings. Payback 
periods are expressed in years.

[[Page 81027]]

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

G. Shipments Analysis

    DOE uses projections of annual product shipments to calculate the 
national impacts of potential amended or new energy conservation 
standards on energy use, NPV, and future manufacturer cash flows.\65\ 
The shipments model takes an accounting approach, tracking market 
shares of each product class and the vintage of units in the stock. 
Stock accounting uses product shipments as inputs to estimate the age 
distribution of in-service product stocks for all years. The age 
distribution of in-service product stocks is a key input to 
calculations of both the NES and NPV, because operating costs for any 
year depend on the age distribution of the stock. The shipment 
projections are based on historical data and an analysis of key market 
drivers for each product. For conventional cooking products, DOE 
accounted for three market segments: (1) New construction, (2) existing 
homes (i.e., replacing failed products), and (3) retired but not 
replaced products.
---------------------------------------------------------------------------

    \65\ DOE uses data on manufacturer shipments as a proxy for 
national sales, as aggregate data on sales are lacking. In general 
one would expect a close correspondence between shipments and sales.
---------------------------------------------------------------------------

    To determine new construction shipments, DOE used a forecast of new 
housing coupled with product market saturation data for new housing. 
For new housing completions and mobile home placements, DOE adopted the 
projections from EIA's AEO 2019 through 2052. The market saturation 
data for new housing came from RECS 2015.
    DOE estimated replacements using product retirement functions 
developed from product lifetimes. DOE used retirement functions based 
on Weibull distributions.
    To reconcile the historical shipments with the model, DOE assumed 
that every retired unit is not replaced. DOE attributed the reason for 
this non-replacement to building demolition occurring over the period 
2013-2052. The not-replaced rate is distributed across electric and gas 
cooking products.
    DOE allocated shipments to each product class based on the current 
market share of the class. DOE developed the market shares based on 
data collected from Appliance Magazine Market Research report \66\ and 
U.S. Appliance Industry Statistical Review.\67\ The shares are kept 
constant over time.
---------------------------------------------------------------------------

    \66\ Appliance Magazine Market Research. The U.S. Appliance 
Industry: Market Value, Life Expectancy & Replacement Picture 2012.
    \67\ Appliance 2011. U.S. Appliance Industry Statistical Review: 
2000 to YTD 2011.
---------------------------------------------------------------------------

    DOE did not estimate any fuel switching for electric and gas 
cooking products, as no significant switching was observed from 
historical data.
    Table IV-45 summarizes the approach and data DOE used to derive the 
inputs to the shipments analysis for this NOPD.

[[Page 81028]]

[GRAPHIC] [TIFF OMITTED] TP14DE20.045

    DOE considered the impact of prospective standards on product 
shipments. DOE concluded that it is unlikely that the price would 
increase due to the considered standards would impact the decision to 
install a cooking product in the new construction market. In the 
replacement market, DOE assumed that, in response to an increased 
product price, some consumers will choose to repair their old cooking 
product and extend its lifetime instead of replacing it immediately. 
DOE estimated the magnitude of such impact through a purchase price 
elasticity of demand. The estimated price elasticity of -0.367 is based 
on data for cooking products as described in appendix 9A of the TSD for 
this NOPD. This elasticity relates the repair or replace decision to 
the incremental installed cost of higher efficiency cooking products. 
DOE estimated that the average extension of life of the repaired unit 
would be 5 years, before the unit would be replaced with a new cooking 
unit.
    AGA and APGA stated that DOE failed to assess the potential for 
fuel switching from natural gas to electric cooking products as a 
result of a conservation standard. (AGA and APGA, No. 68 at p. 3) 
Because DOE is proposing standards for both electric and natural gas 
appliances, any increase in the price of the appliance would impact 
cooking products of both fuel types. As switching typically includes 
additional installation costs for accessing the new fuel source (e.g., 
installation of a gas line for gas appliances and installation of 
electrical lines for electrical appliances), which would outweigh the 
incremental change in equipment price, DOE determined that fuel 
switching would not occur.
    For further details on the shipments analysis, please refer to 
chapter 9 of the TSD for this NOPD.

H. National Impact Analysis

    The NIA assesses the NES and the NPV from a national perspective of 
total consumer costs and savings that would be expected to result from 
new or amended standards at specific efficiency levels.\68\ 
(``Consumer'' in this context refers to consumers of the product being 
regulated.) DOE calculates the NES and NPV for the potential standard 
levels considered based on projections of annual product shipments, 
along with the annual energy consumption and total installed cost data 
from the energy use and LCC analyses.\69\ For the present analysis, DOE 
projected the energy savings, operating cost savings, product costs, 
and NPV of consumer benefits over the lifetime of conventional cooking 
products sold from 2023 through 2052.
---------------------------------------------------------------------------

    \68\ The NIA accounts for impacts in the 50 States and U.S. 
territories.
    \69\ For the NIA, DOE adjusts the installed cost data from the 
LCC analysis to exclude sales tax, which is a transfer.
---------------------------------------------------------------------------

    DOE evaluates the impacts of new or amended standards by comparing 
a case without such standards with standards-case projections. The no-
new-standards case characterizes energy use and consumer costs for each 
product class in the absence of new or amended energy conservation 
standards. For this projection, DOE considers historical trends in 
efficiency and various forces that are likely to affect the mix of 
efficiencies over time. DOE compares the no-new-standards case with 
projections characterizing the market for each product class if DOE 
adopted new or amended standards at specific energy efficiency levels 
(i.e., the TSLs or standards cases) for that class. For the standards 
cases, DOE considers how a given standard would likely affect the 
market shares of products with efficiencies greater than the standard.

[[Page 81029]]

    DOE uses a spreadsheet model to calculate the energy savings and 
the national consumer costs and savings from each TSL. Interested 
parties can review DOE's analyses by changing various input quantities 
within the spreadsheet. The NIA spreadsheet model uses typical values 
(as opposed to probability distributions) as inputs.
    The NIA calculations are based on the annual energy consumption and 
total installed cost data from the energy use analysis and the LCC 
analysis. DOE projected the lifetime energy savings, energy cost 
savings, equipment costs, and NPV of customer benefits for each product 
class over the lifetime of equipment sold from 2023 through 2052.
    Table IV-46 summarizes the key inputs for the NIA. The sections 
following provide further details, as does chapter 10 of the TSD for 
this NOPD.
[GRAPHIC] [TIFF OMITTED] TP14DE20.046

1. Product Efficiency Trends
    A key component of DOE's estimates of NES and NPV is the energy 
efficiencies forecasted over time. Section IV.F.8 of this document 
describes how DOE developed an energy efficiency distribution for the 
no-new-standards case (which yields a shipment weighted-average 
efficiency) for each of the considered product classes for the year of 
anticipated compliance with an amended or new standard. For the no-new-
standards case, DOE utilized the consumer choice model (in combination 
with the equipment price projection (as described in section IV.F.1 of 
this document) to determine the efficiencies in each future year, for 
conventional electric cooking products and gas ovens. For conventional 
gas cooking tops, DOE relied on manufacturer inputs, model-based market 
distribution available from retail websites. The approach is further 
described in chapter 10 of the TSD for this NOPD.
    For the standards cases, DOE assumed that equipment efficiencies in 
the no-new-standards case that do not meet the standard level under 
consideration would ``roll up'' to meet the new standard level, and 
market shares at efficiencies above the standard level under 
consideration will shift based on the consumer choice model.
2. National Energy Savings
    The NES analysis involves a comparison of national energy 
consumption of the considered products between each potential standards 
case (TSL) and the case with no new or amended energy conservation 
standards. DOE calculated the national energy consumption by 
multiplying the number of units (stock) of each product (by vintage or 
age) by the unit energy consumption (also by vintage). DOE calculated 
annual NES based on the difference in national energy consumption for 
the no-new-standards case and for each higher efficiency standard case. 
DOE estimated energy consumption and savings based on site

[[Page 81030]]

energy and converted the electricity consumption and savings to primary 
energy (i.e., the energy consumed by power plants to generate site 
electricity) using annual conversion factors derived from AEO 2019. 
Cumulative energy savings are the sum of the NES for each year over the 
timeframe of the analysis.
    Use of higher-efficiency products is occasionally associated with a 
direct rebound effect, which refers to an increase in utilization of 
the product due to the increase in efficiency. DOE did not find any 
data on the rebound effect specific to cooking products. The calculated 
NES at each efficiency level therefore remains unimpacted by rebound 
effect. DOE does not include the rebound effect in the NPV analysis 
because it reasons that the increased service from greater use of the 
product has an economic value that is reflected in the value of the 
foregone energy savings.
    In 2011, in response to the recommendations of a committee on 
``Point-of-Use and Full-Fuel-Cycle Measurement Approaches to Energy 
Efficiency Standards'' appointed by the National Academy of Sciences, 
DOE announced its intention to use FFC measures of energy use and 
greenhouse gas and other emissions in the national impact analyses and 
emissions analyses included in future energy conservation standards 
rulemakings. 76 FR 51281 (Aug. 18, 2011). After evaluating the 
approaches discussed in the August 18, 2011 notice, DOE published a 
statement of amended policy in which DOE explained its determination 
that EIA's National Energy Modeling System (``NEMS'') is the most 
appropriate tool for its FFC analysis and its intention to use NEMS for 
that purpose. 77 FR 49701 (Aug. 17, 2012). NEMS is a public domain, 
multi-sector, partial equilibrium model of the U.S. energy sector \70\ 
that EIA uses to prepare its Annual Energy Outlook. The FFC factors 
incorporate losses in production and delivery in the case of natural 
gas (including fugitive emissions) and additional energy used to 
produce and deliver the various fuels used by power plants. The 
approach used for deriving FFC measures of energy use and emissions is 
described in appendix 10A of the TSD for this NOPD.
---------------------------------------------------------------------------

    \70\ For more information on NEMS, refer to The National Energy 
Modeling System: An Overview 2009, DOE/EIA-0581(2009), October 2009. 
Available at http://www.eia.gov/forecasts/aeo/index.cfm.
---------------------------------------------------------------------------

    Table IV-47 through Table IV-51 present the FFC equivalent of IAEC 
for the considered efficiency levels.
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[[Page 81031]]


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[GRAPHIC] [TIFF OMITTED] TP14DE20.051

3. Net Present Value Analysis
    The inputs for determining the NPV of the total costs and benefits 
experienced by consumers are: (1) Total annual installed cost, (2) 
total annual operating costs, and (3) a discount factor to calculate 
the present value of costs and savings. DOE calculates net savings each 
year as the difference between the no-new-standards case and each 
standards case in terms of total savings in operating costs versus 
total increases in installed costs. DOE calculates operating cost 
savings over the lifetime of each product shipped during the projection 
period.
    DOE assumed that consumer product costs for conventional cooking 
products would remain unchanged over the analysis period.
    The operating cost savings are energy cost savings accounting for 
associated repair and maintenance costs, which are calculated using the 
estimated energy savings in each year and the projected price of the 
appropriate form of energy. To estimate energy prices in future years, 
DOE used projections of annual national-average residential energy 
price changes from AEO 2019 (see section IV.F.4 for details). To 
estimate price trends after 2050, DOE used the average annual rate of 
change in prices from 2030 through 2050. DOE also analyzed scenarios 
that used inputs from cases that have lower and higher energy price 
trends. NIA results based on these cases are presented in appendix 10C 
of the TSD for this NOPD.
    In calculating the NPV, DOE multiplies the net savings in future 
years by a discount factor to determine their present value. For this 
NOPD, DOE estimated the NPV of consumer benefits using both a 3-percent 
and a 7-percent real discount rate. DOE uses these discount rates in 
accordance with guidance provided by the Office of Management and 
Budget (``OMB'') to Federal agencies on the development of

[[Page 81032]]

regulatory analysis.\71\ The discount rates for the determination of 
NPV are in contrast to the discount rates used in the LCC analysis, 
which are designed to reflect a consumer's perspective. The 7-percent 
real value is an estimate of the average before-tax rate of return to 
private capital in the U.S. economy. The 3-percent real value 
represents the ``social rate of time preference,'' which is the rate at 
which society discounts future consumption flows to their present 
value.
---------------------------------------------------------------------------

    \71\ United States Office of Management and Budget. Circular A-
4: Regulatory Analysis. September 17, 2003. Section E. Available at 
www.whitehouse.gov/omb/memoranda/m03-21.html.
---------------------------------------------------------------------------

I. Manufacturer Impact Analysis

1. Overview
    DOE conducted an MIA for consumer conventional cooking products to 
estimate the financial impacts of analyzed new and amended energy 
conservation standards on manufacturers of consumer conventional 
cooking products. The MIA has both quantitative and qualitative 
aspects. The quantitative part of the MIA relies on the GRIM, an 
industry cash-flow model customized for the consumer conventional 
cooking products covered in this proposed determination. The key GRIM 
inputs are data on the industry cost structure, MPCs, and shipments; as 
well as assumptions about manufacturer markups and manufacturer 
conversion costs. The key MIA output is INPV. The GRIM calculates 
annual cash flows using standard accounting principles. DOE used the 
GRIM to compare changes in INPV between the no-new-standards case and 
various TSLs (the standards cases). The difference in INPV between the 
no-new-standards case and the standards cases represents the financial 
impact of potential new and amended energy conservation standards on 
consumer conventional cooking product manufacturers. Different sets of 
assumptions (manufacturer markup scenarios) produce different INPV 
results. The qualitative part of the MIA addresses factors such as 
manufacturing capacity; characteristics of, and impacts on, any 
particular subgroup of manufacturers, including small manufacturers; 
the cumulative regulatory burden placed on consumer conventional 
cooking product manufacturers; and any impacts on competition.
2. GRIM Analysis and Key Inputs
    DOE uses the GRIM to quantify the changes in cash flows over time 
due to potential new and amended energy conservation standards. These 
changes in cash flows result in either a higher or lower INPV for the 
standards cases compared to the no-new-standards case. The GRIM uses a 
standard annual cash-flow analysis that incorporates MPCs, manufacturer 
markups, shipments, and industry financial information as inputs. It 
then models changes in MPCs, investments, and manufacturer margins that 
may result from analyzed new and amended energy conservation standards. 
The GRIM uses these inputs to calculate a series of annual cash flows 
beginning with the reference year of the analysis, 2019, and continuing 
to the terminal year of the analysis, 2052. DOE computes INPV by 
summing the stream of annual discounted cash flows during the analysis 
period. DOE used a real discount rate of 9.1 percent, the same discount 
rate used in the September 2016 SNOPR, for consumer conventional 
cooking product manufacturers in this NOPD. Many of the GRIM inputs 
come from the engineering analysis, the shipments analysis, 
manufacturer interviews, and other research conducted during the MIA. 
The major GRIM inputs are described in detail in the following 
sections.
a. Manufacturer Production Costs
    Manufacturing more efficient consumer conventional cooking products 
is more expensive than manufacturing baseline products due to the need 
for more complex and costly components. The higher MPCs for these more 
efficient products can affect the revenues, gross margins, and cash 
flow of the industry, making these product costs key inputs for the 
GRIM and the MIA.
    In the MIA, DOE used the MPCs calculated in the engineering 
analysis, as described in section IV.C of this document and further 
detailed in chapter 5 of the TSD for this NOPD. For this NOPD analysis, 
DOE updated the MPCs used in the September 2016 SNOPR analysis based on 
comments received from interested parties and additional research. The 
MIA stated these values in 2018 dollars, as opposed to the September 
2016 SNOPR's 2015 dollar values. DOE used these updated MPCs for this 
NOPD analysis.
b. Shipments Projections
    INPV, the key GRIM output, depends on industry revenue, which 
depends on the quantity and prices of consumer conventional cooking 
products shipped in each year of the analysis period. Industry revenue 
calculations require forecasts of: (1) Total annual shipment volume of 
consumer conventional cooking products, (2) the distribution of 
shipments across the product classes (because prices vary by product 
class), and (3) the distribution of shipments across efficiency levels 
(because prices vary with efficiency).
    DOE updated the shipments analysis for this NOPD analysis to 
reflect new historical statistics, updated AEO 2019 values, and the 
elimination of certain efficiency levels, due to comments and data 
provided by interested parties in response to the September 2016 SNOPR. 
The MIA used these updated shipments for this NOPD analysis. For a 
complete description of the shipments, see the shipments analysis 
discussion in section IV.G of this document and chapter 9 of the TSD 
for this NOPD.
c. Product and Capital Conversion Costs
    DOE expects the analyzed new and amended consumer conventional 
cooking product energy conservation standards would cause manufacturers 
to incur conversion costs to bring their production facilities and 
product designs into compliance with potential new and amended 
standards. For the MIA, DOE classified these conversion costs into two 
groups: (1) Capital conversion costs and (2) product conversion costs. 
Capital conversion costs are investments in property, plant, and 
equipment necessary to adapt or change existing production facilities 
so new product designs can be fabricated and assembled. Product 
conversion costs are investments in research, development, testing, 
marketing, certification, and other non-capitalized costs necessary to 
make product designs comply with potential new and amended standards.
    In general, DOE assumes all conversion-related investments occur 
between the year of publication of the final rule and the year by which 
manufacturers must comply with the potential new and amended standards. 
Product conversion costs depend on the per-model costs associated with 
redesigning non-compliant models into compliant ones and then re-
testing and marketing those newly compliant models. Product conversion 
costs also depend on the number of models estimated to require a 
redesign. DOE used the efficiency distribution of shipments calculated 
in the shipment analysis as an input to estimate the number of models 
that would not meet an analyzed efficiency level. As discussed in 
section IV.I.2.b of this document, shipments were updated as part of 
this NOPD, and these new shipment efficiency distributions were

[[Page 81033]]

used to calculate the product conversion costs used in this NOPD MIA.
    The updated efficiency distribution increased the product 
conversion costs at most efficiency levels for most product classes. 
Additionally, Felix Storch commented that DOE overlooked a number of 
consumer conventional cooking product manufacturers that sell products 
in the United States in its manufacturer list. (Felix Storch, No. 62 at 
p. 2) DOE revisited the list of potential manufacturers and total 
number of covered models offered by these manufacturers. As a result, 
DOE added three manufacturers to its list of manufacturers of covered 
products. DOE also increased the number of covered models due to this 
updated manufacturer list. This caused capital and product conversion 
costs to increase due to the addition of more manufacturers and more 
covered models.
    DOE notes that while the conversion costs for most efficiency 
levels increased from the September 2016 SNOPR to this NOPD, the TSLs 
used in this NOPD generally comprise lower efficiency levels than the 
TSLs used in the September 2016 SNOPR, causing the conversion costs at 
most TSLs to decrease from the September 2016 SNOPR to this NOPD. DOE 
also represented these conversion costs in 2018 dollars, as opposed to 
the September 2016 SNOPR's 2015 dollar values. Overall, although the 
conversion costs used in this NOPD analysis differ from those used in 
the September 2016 SNOPR MIA, the methodology, per-model conversion 
costs, and per-manufacturer conversion costs used to calculate 
conversion costs remain the same as those used in the September 2016 
SNOPR.\72\
---------------------------------------------------------------------------

    \72\ MIA conversion cost estimates and INPV results from the 
September 2016 SNOPR can be found at 81 FR 60874, 60851 (Sept. 2, 
2016).
---------------------------------------------------------------------------

    The conversion cost estimates used in the GRIM can be found in 
section V.B.2.a of this document. For additional information on the 
estimated capital and product conversion costs, see chapter 11 of the 
TSD for this NOPD.
d. Markup Scenarios
    As discussed in section IV.I.2.a of this document, the MPCs for 
consumer conventional cooking products are the manufacturers' costs for 
those units. These costs include materials, direct labor, depreciation, 
and overhead, which are collectively referred to as the cost of goods 
sold. The MSP is the price received by consumer conventional cooking 
product manufacturers from the first sale of those products, typically 
to a distributor, regardless of the downstream distribution channel 
through which the consumer conventional cooking products are ultimately 
sold. The MSP is not the price the end-user pays for consumer 
conventional cooking products because there are typically multiple 
sales along the distribution chain and various markups applied to each 
sale. The MSP equals the MPC multiplied by the manufacturer markup. The 
manufacturer markup covers all the consumer conventional cooking 
product manufacturer's non-production costs (i.e., selling, general, 
and administrative expenses; research and development; and interest) as 
well as profit. Total industry revenue for consumer conventional 
cooking product manufacturers equals the MSPs at each efficiency level 
multiplied by the number of shipments at that efficiency level for all 
product classes.
    Modifying the manufacturer markups in the standards cases yields a 
different set of impacts on consumer conventional cooking product 
manufacturers than in the no-new-standards case. For the MIA, DOE 
modeled two standards case manufacturer markup scenarios for consumer 
conventional cooking products to represent the uncertainty regarding 
the potential impacts on MSPs and profitability for consumer 
conventional cooking product manufacturers following the implementation 
of potential new and amended energy conservation standards. The two 
manufacturer markup scenarios are: (1) a preservation of gross margin 
markup scenario and (2) a preservation of operating profit markup 
scenario. Each scenario leads to different manufacturer markup values, 
which, when applied to the MPCs derived in the engineering analysis, 
result in varying revenue and cash-flow impacts on consumer 
conventional cooking product manufacturers.
    DOE modeled two manufacturer markup scenarios to represent the 
upper and lower bounds of MSPs and profitability following potential 
new and amended standards. The preservation of gross margin markup 
scenario represents the best-case scenario for manufacturers. DOE 
recognizes that manufacturers may not be able to mark up the additional 
cost of production in the standards cases, given the competitive 
consumer conventional cooking products market. Therefore, DOE also 
modeled a preservation of operating profit markup scenario to represent 
a lower bound on profitability for manufacturers. While DOE used the 
same markup scenarios in this NOPD MIA that were used in the September 
2016 SNOPR analysis, the manufacturer markup values of the preservation 
of operating profit depend on the efficiency distribution of shipments 
calculated in the shipments analysis. As discussed in section IV.I.2.b 
of this document, shipments were updated and these new efficiency 
distributions were used to calculate manufacturer markups in the 
preservation of operating profit manufacturer markup scenario. 
Therefore, the manufacturer markups used in the preservation of 
operating profit scenario in this NOPD analysis differ slightly from 
those used in the September 2016 SNOPR MIA. However, the methodology 
used to calculate those manufacturer markup values remains the same.
3. Discussion of Comments
a. Discount Rate
    Spire commented that the assumption of low discount rates works 
against the natural gas-fuel appliance industry and indicates a pattern 
of bias that does not comport with DOE's statutory obligations. (Spire, 
No. 61 at p. 7) DOE uses the weighted-average cost of capital in 
conjunction with the capital asset pricing model to calculate the 
industry discount rate. DOE calculated an industry discount rate of 9.1 
percent using this standard accounting practice and financial data from 
publicly traded consumer conventional cooking product manufacturers. 
DOE then verified this estimated industry discount rate with 
manufacturers during manufacturer interviews. DOE also notes that the 
industry discount rate used in the GRIM is a real discount rate, as are 
all other variables in the GRIM. DOE first calculated a nominal 
industry discount rate of 12.2 percent. DOE then subtracted 3.1 percent 
from this nominal discount rate to account for the historical inflation 
rate before arriving at the 9.1 percent real industry discount rate 
used in the GRIM. For additional information, refer to chapter 11 of 
the TSD for this NOPD.
    DOE requests comment on its use of 12.2 percent as a nominal 
industry discount rate and its use of 3.1 percent as the historical 
inflation rate, to arrive at a 9.1 percent real industry discount rate.
b. Changes in Test Procedure and Manufacturer Interviews
    AHAM commented that manufacturer interviews were conducted in the 
earlier stages of the rulemaking before DOE proposed to repeal the oven 
test procedure and to adopt a different

[[Page 81034]]

cooking top test procedure. AHAM suggested that these developments 
raise doubt on the relevance of the information received during the 
interviews. (AHAM, No. 64 at pp. 34, 35) DOE received information 
during manufacturer interviews dealing with conversion costs and 
production costs for a variety of different design changes that were 
analyzed both for this NOPD and for the September 2016 SNOPR. The 
conversion cost estimates given during manufacturer interviews were 
primarily based on meeting performance-based energy conservation 
standards. In this NOPD analysis, DOE estimated the performance 
characteristics of consumer conventional cooking products at the 
analyzed prescriptive standard levels. The design options, and costs of 
meeting those design options, discussed in the manufacturer interviews 
conducted in the earlier stages of the rulemaking are relevant 
estimates for manufacturers to meet the analyzed prescriptive standards 
in this NOPD analysis.
c. Other Comments
    Other comments made by interested parties concerned either the 
cumulative regulatory burden or the small business analysis. The 
cumulative regulatory burden comments are addressed in section V.B.2.e 
of this document and the small business comments are addressed in 
section VI.C of this document.
4. Manufacturer Interviews
    DOE conducted manufacturer interviews following publication of the 
February 2014 RFI in preparation for the June 2015 NOPR analysis. In 
these interviews, DOE asked manufacturers to describe their major 
concerns with this consumer conventional cooking products rulemaking. 
The following section describes the key issues identified by consumer 
conventional cooking product manufacturers during these manufacturer 
interviews. DOE conducted additional discussions with select 
manufacturers to follow up on information received on the June 2015 
NOPR, but those discussions focused primarily on the engineering 
analysis. DOE did not conduct any further interviews with manufacturers 
between the September 2016 SNOPR and this NOPD because further 
interviews were not necessary to revise the MIA for this NOPD. Instead 
DOE, used comments from interested parties to update the MIA.
a. Premium Products Tend To Be Less Efficient
    Manufacturers stated that their premium products (i.e., gas cooking 
tops and ovens marketed as commercial-style) are usually less efficient 
than products marketed as residential-style. Commercial-style gas 
cooking tops typically have features such as heavier cast iron grates 
that decrease efficiency by acting as an additional thermal load. Also, 
this style of gas cooking top typically has wider spacing between the 
burner and grate surface, further reducing the efficiency of the 
cooking top. Conversely, gas cooking tops marketed as residential-style 
tend to have lighter-weight, lower grates so the cooking vessels 
resting on them are closer to the heat sources. Commercial-style ovens 
typically have large, heavier-gauge cavity construction and extension 
racks that result in inherently lower efficiencies compared to 
residential-style ovens with comparable cavities sizes when measured 
according to the DOE test procedure in effect at the time of the 
interviews, due to the greater thermal mass of the cavity and racks. 
Manufacturers warned DOE that focusing only on the efficiency of 
consumer conventional cooking products could cause some manufacturers 
to redesign their products in a way that reduces consumer satisfaction, 
as consumers tend to value premium features even though they may be 
less efficient. As explained in section IV.C.2.b of this document, DOE 
did not analyze, and is not proposing standards at, higher efficiency 
levels for gas cooking tops in this NOPD. While DOE agrees that 
commercial-style ovens would not be able to meet the higher gas oven 
standards analyzed, DOE is not proposing amended standards for gas 
ovens in this NOPD.
b. Induction Cooking Products
    Some manufacturers stated that induction cooking tops should be 
considered as a separate product class apart from electric smooth 
element cooking tops. Manufacturers stated that although induction 
cooking tops tend to be more efficient that other electric smooth 
element cooking tops, induction cooking tops could require consumers to 
replace some or all of their cookware if they are not ferromagnetic. 
DOE did not evaluate a separate product class for induction cooking 
tops, as discussed in section IV.A.1.a of this document. Additionally, 
DOE is not proposing new standards for electric smooth element cooking 
tops in this NOPD.
c. Product Utility
    Manufacturers stated that energy efficiency is not one of the most 
important attributes that consumers value when purchasing consumer 
conventional cooking products. Manufacturers stated that there are 
several other factors, such as performance and durability, which 
consumers value more when purchasing consumer conventional cooking 
products. Required improvements to the efficiency of their products 
could lead some manufacturers to remove premium features that consumers 
desire from their products, potentially reducing overall consumer 
utility. As discussed in section V.C.4 of this document, DOE is not 
proposing new or amended standards for consumer conventional cooking 
products in this NOPD, and thus the utility or performance of the 
consumer conventional cooking products under consideration in this 
proposed determination would not be reduced.
d. Testing and Certification Burdens
    Several manufacturers expressed concern about the testing and 
recertification costs associated with new and amended energy 
conservation standards for consumer conventional cooking products. 
Because testing and certification costs are incurred on a per model 
basis, if a large number of models are required to be redesigned to 
meet potential new and amended standards, manufacturers would be forced 
to spend a significant amount of money testing and certifying products 
that were redesigned. Manufacturers stated that these testing and 
certification costs associated with consumer conventional cooking 
products could significantly strain their limited resources if these 
costs were all incurred in the 3-year period between the publication of 
a potential final rule and the compliance date of the potential new and 
amended standards. As part of the MIA, DOE included all certification 
and re-certification costs that would be required to comply with the 
evaluated standards. Additionally, DOE is not proposing any new or 
amended standards in this NOPD, and has withdrawn the conventional 
cooking products test procedure. Therefore, manufacturers would not 
incur any testing or certification costs due to this NOPD.

V. Analytical Results and Conclusions

    The following section addresses the results from DOE's analyses 
with respect to the considered energy conservation standards for 
consumer

[[Page 81035]]

conventional cooking products. It addresses the TSLs examined by DOE 
and the projected impacts of each of these levels. Additional details 
regarding DOE's analyses are contained in the TSD for this NOPD.

A. Trial Standard Levels

    DOE analyzed the benefits and burdens of three TSLs for consumer 
conventional cooking products. These TSLs were developed by combining 
specific efficiency levels for each of the product classes analyzed by 
DOE. DOE presents the results for the TSLs in this document, while the 
results for all efficiency levels that DOE analyzed are in the TSD for 
this NOPD.
    Table V-1 through Table V-3 present the TSLs and the corresponding 
efficiency levels for consumer conventional cooking products.\73\ TSLs 
developed for the September 2016 SNOPR were updated for this proposed 
determination to account for updates to the engineering analysis based 
on additional testing and analysis. Details regarding the updates to 
the efficiency level analysis are discussed in section IV.C.2 of this 
document.
---------------------------------------------------------------------------

    \73\ For the conventional oven product classes, the efficiency 
levels are based on an oven with a cavity volume of 4.3 ft\3\. As 
discussed in section IV.C.2.c of this document, DOE developed slopes 
and intercepts to characterize the relationship between IEAC and 
cavity volume for each efficiency level.
---------------------------------------------------------------------------

    TSL 3 represents the max-tech improvements in energy efficiency for 
all product classes, except for electric open (coil) element cooking 
tops and gas cooking tops. TSL 2 comprises efficiency levels providing 
maximum NES with positive NPV. TSL 1 was configured to include a 
controls based strategy that would not eliminate the utility of a clock 
display on combined cooking products from the market.
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B. Economic Justification and Energy Savings

1. Economic Impacts on Individual Consumers
    DOE analyzed the economic impacts on consumer conventional cooking 
products consumers by looking at the effects that potential new and 
amended standards at each TSL would have on the LCC and PBP. These 
analyses are discussed below.
a. Life-Cycle Cost and Payback Period
    In general, higher-efficiency products can affect consumers in two 
ways: (1) Purchase price increases and (2) annual operating costs 
decreases. Inputs used for calculating the LCC and PBP include total 
installed costs (i.e., product price plus installation costs), and 
operating costs (i.e., annual energy use, energy prices, energy price 
trends, repair costs, and maintenance costs). The LCC calculation also 
uses product lifetime and a discount rate. Chapter 8 of the TSD for 
this NOPD provides detailed information on the LCC and PBP analyses.
    Table V-4 through Table V-25 show the LCC and PBP results for all 
efficiency levels considered for each consumer conventional cooking 
product class (``PC''). In the first of each pair of tables, the simple 
payback is measured relative to the baseline product. In the second 
table, the LCC savings are measured relative to the no-new-standards 
case efficiency distribution in

[[Page 81036]]

the compliance year (see section IV.F.9 of this NOPD). Because some 
consumers purchase products with higher efficiency in the no-new-
standards case, the average savings are less than the difference 
between the average LCC of the baseline product and the average LCC at 
each TSL. The savings refer only to consumers who are affected by a 
standard at a given TSL. Those who already purchase a product with 
efficiency at or above a given TSL are not affected. Consumers for whom 
the LCC increases at a given TSL experience a net cost.
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b. Rebuttable Presumption Payback
    As discussed in section IV.F of this document, EPCA establishes a 
rebuttable presumption that an energy conservation standard is 
economically justified if the increased purchase cost for a product 
that meets the standard is less than three times the value of the 
first-year energy savings resulting from the standard. (42 U.S.C. 
6295(o)(2)(B)(iii)) In calculating a rebuttable presumption PBP for 
each of the considered TSLs, DOE used discrete values, and, as required 
by EPCA, based the energy use calculation on the now-withdrawn DOE test 
procedures for consumer conventional cooking products. In contrast, the 
PBPs presented in section V.B.1.a of this document were calculated 
using distributions that reflect the range of energy use in the field. 
See chapter 8 of the NOPD TSD for more information on the rebuttable 
presumption payback analysis.
2. Economic Impacts on Manufacturers
    DOE performed an MIA to estimate the impact of potential new and 
amended energy conservation standards on manufacturers of consumer 
conventional cooking products. The following sections describe the 
expected impacts on consumer conventional cooking product manufacturers 
at each TSL. Chapter 11 of the TSD for this NOPD explains the MIA in 
further detail.
a. Industry Cash Flow Analysis Results
    In this section, DOE provides GRIM results from the analysis, which 
examines changes in the industry that could result from new and amended 
standards. Table V-26 and Table V-27 depict the estimated financial 
impacts (represented by changes in INPV) of potential new and amended 
energy conservation standards on consumer conventional cooking product 
manufacturers, as well as the conversion costs that DOE estimates 
manufacturers would incur at each TSL. To evaluate the range of cash 
flow impacts on the consumer conventional cooking product industry, DOE 
modeled two manufacturer markup scenarios that correspond to the range 
of anticipated market responses to new and amended standards. Each 
manufacturer markup scenario results in a unique set of cash flows and 
corresponding industry values at each TSL.
    In the following discussion, the INPV results refer to the 
difference in industry value between the no-new-standards case and the 
standards cases that result from the sum of discounted cash flows from 
the reference year (2019) through the end of the analysis period 
(2052). The results also discuss the difference in cash flows between 
the no-new-standards case and the standards cases in the year before 
the analyzed compliance date for potential new and amended energy 
conservation standards. This figure represents the size of the required 
conversion costs relative to the cash flow generated by the consumer 
conventional cooking product industry in the absence of new and amended 
energy conservation standards. In the engineering analysis, DOE 
enumerates common technology options that achieve the efficiencies for 
each of the analyzed product classes. For descriptions of these 
technology options and the required efficiencies at each TSL, see 
section IV.C and section V.A, respectively, of this document.
    To assess the upper (less severe) end of the range of potential 
impacts on consumer conventional cooking product manufacturers, DOE 
modeled a preservation of gross margin markup scenario. This scenario 
assumes that in the standards cases, manufacturers would be able to 
pass along all the higher production costs required for more efficient 
products to their consumers. Specifically, the industry would be able 
to maintain its average no-new-standards case gross margin (as a 
percentage of revenue) despite the higher production costs in the 
standards cases. In general, the larger the product price increases, 
the less likely manufacturers are to achieve the cash flow from 
operations calculated in this scenario because it is less likely that 
manufacturers would be able to fully mark up these larger production 
cost increases.
    To assess the lower (more severe) end of the range of potential 
impacts on the consumer conventional cooking product manufacturers, DOE 
modeled the preservation of operating profit markup scenario. This 
scenario represents the lower end of the range of potential impacts on 
manufacturers because no additional operating profit is earned on the 
higher production costs, eroding profit margins as a percentage of 
total revenue.
    Table V-26 and Table V-27 present the projected results for 
consumer conventional cooking products under the preservation of gross 
margin and preservation of operating profit markup scenarios. DOE 
examined results for all product classes together since the majority of 
manufacturers sell products across a variety of the analyzed product 
classes.

[[Page 81044]]

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    TSL 1 sets the efficiency level at baseline for two product classes 
(electric open (coil) element cooking tops and gas cooking tops) and at 
EL 1 for all other product classes (electric smooth element cooking 
tops, all electric ovens, and all gas ovens). At TSL 1, DOE estimates 
impacts on INPV to range from -$45.6 million to -$44.3 million, or a 
change in INPV of -2.9 percent to -2.8 percent. At TSL 1, industry free 
cash flow (operating cash flow minus capital expenditures) is estimated 
to decrease to $106.3 million, or a drop of 18.9 percent, compared to 
the no-new-standards case value of $131.0 million in 2022, the year 
leading up to the analyzed compliance date of potential new and amended 
energy conservation standards.
    Percentage impacts on INPV are slightly negative at TSL 1. DOE does 
not anticipate that manufacturers would lose a significant portion of 
their INPV at this TSL, given the limited conversion costs and number 
of consumer conventional cooking products projected to comply with the 
analyzed standards at this TSL. DOE projects that in the analyzed year 
of compliance (2023), 100 percent of electric open (coil) element 
cooking top and gas cooking top shipments, 45 percent of electric 
smooth element cooking top shipments, 60 percent of electric standard 
oven (free-standing and built-in) shipments, 48 percent of electric 
self-clean oven (free-standing and built-in) shipments, 54 percent of 
gas standard oven (free-standing and built-in) shipments, and 45 
percent of gas self-clean oven (free-standing and built-in) shipments 
will meet or exceed the efficiency levels required at TSL 1.
    DOE expects conversion costs to be small at TSL 1 because the 
design changes prescribed at this TSL only affect standby mode power 
consumption and do not apply to active mode power consumption. DOE 
expects consumer conventional cooking product manufacturers would incur 
$25.2 million in product conversion costs for product redesigns that 
include converting electric smooth element cooking tops and both gas 
and electric ovens to transition from using linear power supplies to 
SMPS in order to reduce standby power consumption. DOE expects $35.1 
million in capital conversion costs for manufacturers to upgrade 
production lines and retool equipment associated with achieving this 
reduction in standby power.
    At TSL 1, under the preservation of gross margin markup scenario, 
the shipment weighted-average MPC increases very slightly by 
approximately 0.1 percent relative to the no-new-standards case MPC. 
This slight price increase is outweighed by the $60.3 million in 
conversion costs estimated at TSL 1, resulting in slightly negative 
INPV impacts at TSL 1 under the

[[Page 81045]]

preservation of gross margin markup scenario.
    Under the preservation of operating profit markup scenario, 
manufacturers earn the same nominal operating profit as would be earned 
in the no-new-standards case, but manufacturers do not earn additional 
profit from their investments. The slight increase in the shipment 
weighted-average MPC results in a slightly lower average manufacturer 
markup (slightly smaller than the 1.20 manufacturer markup used in the 
no-new-standards case). This slightly lower average manufacturer markup 
and the $60.3 million in conversion costs result in slightly negative 
INPV impacts at TSL 1 under the preservation of operating profit.
    TSL 2 sets the efficiency level at baseline for two product classes 
(electric open (coil) element cooking tops and gas cooking tops); EL 1 
for four product classes (electric self-clean free-standing ovens, 
electric self-clean built-in ovens, gas self-clean free-standing ovens, 
and gas self-clean built-in ovens); EL 2 for electric smooth element 
cooking tops; EL 3 for two product classes (gas standard free-standing 
ovens and gas standard built-in ovens); and EL 4 for two product 
classes (electric standard free-standing ovens and electric standard 
built-in ovens). At TSL 2, DOE estimates impacts on INPV to range from 
-$88.2 million to -$82.6 million, or a change in INPV of -5.6 percent 
to -5.2 percent. At this standard level, industry free cash flow is 
estimated to decrease to $83.5 million, or a drop of 36.3 percent, 
compared to the no-new-standards case value of $131.0 million in 2022, 
the year leading up to the analyzed compliance date of potential new 
and amended energy conservation standards.
    Percentage impacts on INPV are moderately negative at TSL 2. The 
$117.3 million in industry conversion costs represent a significant 
investment for manufacturers, and is the primary cause of the potential 
drop in INPV of up to 5.6 percent and a significant decrease of 36.3 
percent in free cash flow in the year leading up to the analyzed 
compliance date of potential new and amended standards. DOE projects 
that in 2023, 100 percent of electric open (coil) cooking top and gas 
cooking top shipments, 23 percent of electric smooth element cooking 
top shipments, 28 percent of electric standard oven (free-standing and 
built-in) shipments, 48 percent of electric self-clean oven (free-
standing and built-in) shipments, 27 percent of gas standard oven 
(free-standing and built-in) shipments, and 45 percent of gas self-
cleaning oven (free-standing and built-in) shipments will meet or 
exceed the efficiency levels at TSL 2.
    DOE expects that product conversion costs will rise from $25.2 
million at TSL 1 to $54.9 million at TSL 2 for extensive product 
redesigns and testing. Capital conversion costs will also increase from 
$35.1 million at TSL 1 to $62.4 million at TSL 2 to upgrade production 
equipment to accommodate added or redesigned features in each product 
class. The larger conversion costs at TSL 2 are driven by the need to 
reduce vent rates, improve insulation and door seals, and include 
forced convection for electric standard ovens; and improve insulation 
and door seals for gas standard ovens.
    At TSL 2, under the preservation of gross margin markup scenario, 
the shipment weighted-average MPC increases by 0.5 percent, relative to 
the no-new-standards case MPC. In this scenario, INPV impacts are 
moderately negative because manufacturers would incur sizable 
conversion costs ($117.3 million) and would not be able to recover much 
of those conversion costs through the 0.5 percent increase in the 
shipment weighted-average MPC at TSL 2.
    Under the preservation of operating profit markup scenario, the 0.5 
percent shipment weighted-average increase in MPC results in a slightly 
lower average manufacturer markup. This slightly lower average 
manufacturer markup and the $117.3 million in conversion costs results 
in moderately negative INPV impacts at TSL 2.
    TSL 3 sets the efficiency level at baseline for two product classes 
(electric open (coil) element cooking tops and gas cooking tops); EL 2 
for two product classes (gas self-clean free-standing ovens and gas 
self-clean built-in ovens); EL 3 for three product classes (electric 
smooth element cooking tops, electric self-clean free-standing ovens, 
and electric self-clean built-in ovens); EL 4 for two product classes 
(gas standard free-standing ovens and gas standard built-in ovens); and 
EL 6 for two product classes (electric standard free-standing ovens and 
electric standard built-in ovens). This represents max-tech for all 
product classes for which efficiency levels above the baseline were 
analyzed. At TSL 3, DOE estimates impacts on INPV to range from -$629.0 
million to -$384.6 million, or a change in INPV of -39.6 percent to -
24.2 percent. At TSL 3, industry free cash flow is estimated to 
decrease to -$184.0 million, or a drop of 240.4 percent, compared to 
the no-new-standards case value of $131.0 million in 2022, the year 
leading up to the analyzed compliance date of potential new and amended 
energy conservation standards.
    At TSL 3 conversion costs significantly increase, causing free cash 
flow to become significantly negative, -$184.0 million, in the year 
leading up to the analyzed compliance date of potential new and amended 
standards and causing manufacturers to lose a substantial amount of 
INPV. Also, the percent change in INPV at TSL 3 is significantly 
negative due to the extremely large conversion costs, $776.3 million. 
Manufacturers at this TSL would have a very difficult time in the short 
term to make the necessary investments to comply with the analyzed new 
and amended energy conservation standards prior to the analyzed 
compliance date.
    A high percentage of total shipments would need to be redesigned to 
meet the efficiency levels prescribed at TSL 3. DOE projects that in 
2023, 100 percent of electric open (coil) element cooking top and gas 
cooking top shipments, 1 percent of electric smooth element cooking top 
shipments, 8 percent of electric standard oven (free-standing and 
built-in) shipments, 15 percent of electric self-clean oven (free-
standing and built-in) shipments, 13 percent of gas standard oven 
(free-standing and built-in) shipments, and 23 percent of gas self-
clean oven (free-standing and built-in) shipments will meet the 
efficiency levels at TSL 3.
    DOE expects significant conversion costs at TSL 3, which represents 
max-tech. DOE expects product conversion costs to significantly 
increase from $54.9 million at TSL 2 to $362.9 million at TSL 3. Large 
increases in product conversion costs are due to most shipments needing 
extensive redesign as well as a significant increase in re-
certification for re-designed products. DOE estimates that capital 
conversion costs will also significantly increase from $62.4 million at 
TSL 2 to $413.4 million at TSL 3. Capital conversion costs are driven 
by investments in production equipment to switch to induction heating 
elements for electric smooth element cooking tops; reduce vent rates, 
improve insulation and door seals, and include forced convection and 
oven separators for electric standard ovens; include forced convection 
and oven separators for electric self-clean ovens; improve insulation 
and door seals and include forced convection for gas standard ovens; 
and include forced convection in gas self-clean ovens.
    At TSL 3, under the preservation of gross margin markup scenario, 
the shipment weighted-average MPC increases by 18.4 percent relative to 
the no-new-standards case MPC. In this

[[Page 81046]]

scenario, INPV impacts are significantly negative because the $776.3 
million in conversion costs outweigh the modest increase in shipment 
weighted-average MPC, resulting in significantly negative INPV impacts 
at TSL 3.
    Under the preservation of operating profit markup scenario, the 
18.4 percent shipment weighted-average increase in MPC results in a 
lower average manufacturer markup (1.192 compared to the no-new-
standards case average manufacturer markup of 1.200). This lower 
average manufacturer markup and the $776.3 million in conversion costs 
result in significantly negative INPV impacts at TSL 3.
b. Direct Impacts on Employment
    To quantitatively assess the potential impacts of new and amended 
energy conservation standards on direct employment in the conventional 
cooking products industry, DOE used the GRIM to estimate the domestic 
labor expenditures and number of direct employees in the no-new-
standards case and at each TSL from 2023 to 2052. DOE used statistical 
data from the U.S. Census Bureau's 2016 Annual Survey of Manufactures 
(``ASM''), the results of the engineering analysis, and interviews with 
manufacturers to determine the inputs necessary to calculate industry-
wide labor expenditures and domestic employment levels. Labor 
expenditures involved with the manufacturing of the products are a 
function of the labor intensity of the products, the sales volume, and 
an assumption that wages remain fixed in real terms over time.
    In the GRIM, DOE used the labor content of the MPCs to estimate the 
annual labor expenditures in the industry. DOE used census data and 
interviews with manufacturers to estimate the portion of the total 
labor expenditures that is attributable to domestic labor.
    The production worker estimates in this section cover only workers 
up to the line-supervisor level directly involved in fabricating and 
assembling a product within a manufacturing facility. Workers 
performing services that are closely associated with production 
operations, such as material handing with a forklift, are also included 
as production labor. DOE's estimates account for production workers who 
manufacture only the specific products covered in this proposed 
determination.
    The employment impacts shown in Table V-28 represent the potential 
domestic production employment that could result following the analyzed 
new and amended energy conservation standards. The upper bound of the 
results estimates the maximum change in the number of production 
workers that could occur after compliance with the analyzed new and 
amended energy conservation standards when assuming that manufacturers 
continue to produce the same scope of covered products in the same 
production facilities. It also assumes that domestic production does 
not shift to lower labor-cost countries. Because there is a real risk 
of manufacturers evaluating sourcing decisions in response to the 
analyzed new and amended energy conservation standards, the lower bound 
of the employment results includes DOE's estimate of the total number 
of U.S. production workers in the industry who could lose their jobs if 
some or all existing domestic production were moved outside of the 
United States. While the results present a range of domestic employment 
impacts following 2023, the following sections also include qualitative 
discussions of the likelihood of negative employment impacts at the 
various TSLs.
    Using 2016 ASM data and interviews with manufacturers, DOE 
estimates that approximately 60 percent of the consumer conventional 
cooking products sold in the United States are manufactured 
domestically. With this assumption, DOE estimates that in the absence 
of any new and amended energy conservation standards, there would be 
approximately 7,186 domestic production workers involved in 
manufacturing consumer conventional cooking products in 2023. Table V-
28 shows the range of the impacts of the analyzed new and amended 
energy conservation standards on U.S. production workers in the 
consumer conventional cooking product industry.
[GRAPHIC] [TIFF OMITTED] TP14DE20.079

    At the upper end of the range, all examined TSLs show a slight 
increase in the number of domestic production workers for consumer 
conventional cooking products. DOE believes that manufacturers would 
increase production hiring due to the increase in the labor associated 
with adding the required components to make consumer conventional 
cooking products more efficient. However, as previously stated, this 
assumes that in addition to hiring more production employees, all 
existing domestic production would remain in the United States and not 
shift to lower labor-cost countries.
    DOE does not expect any significant changes in domestic employment 
at TSL 1 because standards would only affect standby mode power 
consumption at this TSL. Most manufacturers stated that this TSL would 
not require significant design changes and therefore would not have a 
significant impact on domestic employment decisions.
    At TSL 2 and TSL 3, most manufacturers would be required to make at 
least some modifications to their existing production lines. However, 
manufacturers stated that due

[[Page 81047]]

to the larger size of most consumer conventional cooking products, very 
few units are manufactured and shipped from far distances such as Asia 
or Europe. The vast majority of consumer conventional cooking products 
are currently made in North America. Some manufacturers stated that 
even significant changes to production lines would not cause them to 
shift their production to lower labor-cost countries, as several 
manufacturers either only produce consumer conventional cooking 
products domestically or have recently made significant investments to 
continue to produce consumer conventional cooking products 
domestically.
    At TSL 2, manufacturers could alter production locations in 
response to standards, since most product classes would be required to 
meet energy conservation standards that would most likely require 
modifications to more than just standby mode power consumption. DOE 
estimated that at most 25 percent of the domestic labor for consumer 
conventional cooking products could move to other countries in response 
to the analyzed standards at TSL 2.
    At TSL 3, manufacturers could alter production locations in 
response to standards, since all product classes other than electric 
open (coil) element cooking tops and gas cooking tops would be required 
to meet max-tech. DOE estimated that at most 50 percent of the domestic 
labor for consumer conventional cooking products could move to other 
countries in response to the analyzed standards at TSL 3.
c. Impacts on Manufacturing Capacity
    Consumer conventional cooking product manufacturers stated that 
they did not anticipate any capacity constraints at TSL 1, which would 
only require modifications to electronic control components. Some 
manufacturers stated that any standard requiring induction heating 
technology for all electric smooth element cooking tops would present a 
very difficult standard to meet since only around 1 percent of the 
existing electric smooth element cooking tops use induction technology. 
Manufacturers stated that converting 99 percent of their electric 
smooth element cooking tops in the 3-year compliance window would 
present a significant challenge, since the production of induction 
heating cooking tops differs significantly from current cooking top 
production.
d. Impacts on Subgroups of Manufacturers
    Using average cost assumptions to develop an industry cash-flow 
estimate may not be adequate for assessing differential impacts among 
manufacturer subgroups. Small manufacturers, niche product 
manufacturers, and manufacturers exhibiting cost structures 
substantially different from the industry average could be affected 
disproportionately. DOE analyzed the impacts on small businesses in 
section VI.B of this document. DOE also identified the commercial-style 
manufacturer subgroup as a potential manufacturer subgroup that could 
be adversely impacted by the considered standards based on the results 
of the industry characterization.
    The commercial-style manufacturer subgroup consists of consumer 
conventional cooking product manufacturers that primarily sell gas 
cooking tops, gas ovens, and electric self-clean ovens marketed as 
commercial-style, either as a stand-alone product or as a component of 
a conventional range. While no commercial-style manufacturers (i.e., 
manufacturers that are producing conventional ovens that are primarily 
marketed as commercial-style) produce electric coil element cooking 
tops, some commercial-style manufacturers produce electric smooth 
element cooking tops. Of those commercial-style manufacturers that do 
produce electric smooth element cooking tops, all have products that 
use induction technology that would be capable of meeting max-tech for 
this product class. Commercial-style electric and gas ovens typically 
have cavities with heavier-gauge cavity walls and heavier racks that 
result in inherently lower efficiencies compared to residential-style 
ovens with comparable cavity sizes, due to the greater thermal mass of 
the cavity and racks, when measured by the earlier DOE test procedure. 
The vast majority of commercial-style electric and gas ovens already 
use SMPS in their ovens and would not have difficulty meeting a 
potential standard level requiring SMPS for ovens. However, there would 
be significant uncertainty as to whether commercial-style manufacturers 
would be able to test their conventional ovens, in the absence of a DOE 
test procedure for these products, to potentially meet the analyzed 
standards at TSLs that require design options in addition to SMPS for 
ovens (TSL 2 and TSL 3).
    Therefore, these commercial-style manufacturers would likely be 
forced to exit the conventional oven market as a result of conventional 
oven standards set above TSL 1.
e. Cumulative Regulatory Burden
    One aspect of assessing manufacturer burden involves looking at the 
cumulative impact of multiple DOE standards and the product-specific 
regulatory actions of other Federal agencies that affect the 
manufacturers of a covered product or equipment. While any one 
regulation may not impose a significant burden on manufacturers, the 
combined effects of several existing or impending regulations may have 
serious consequences for some manufacturers, groups of manufacturers, 
or the entire industry. Assessing the impact of a single regulation may 
overlook this cumulative regulatory burden. In addition to energy 
conservation standards, other regulations can significantly affect 
manufacturers' financial operations. Multiple regulations affecting the 
same manufacturer can strain profits and lead companies to abandon 
product lines or markets with lower expected future returns than 
competing products. For these reasons, DOE conducts a cumulative 
regulatory burden analysis as part of its rulemakings for consumer 
conventional cooking products.
    DOE recognizes that cooking products that include both a 
conventional cooking top and oven (i.e., conventional ranges) may be 
assembled on a single assembly line in manufacturing production 
facilities. DOE also notes that some components and parts (e.g., 
cabinet housing, controls) may be shared between the oven and cooking 
top portion of a conventional range. Setting standards with different 
compliance dates for ovens and cooking tops could result in the need 
for manufacturers to redesign the oven and cooking top portions of 
conventional ranges (including shared components and assembly lines) 
separately on different timelines. As discussed in section II.B.2 of 
this document, DOE combined the rulemakings to consider energy 
conservation standards for conventional cooking tops and ovens together 
and has aligned the compliance dates for both product categories to 
reduce redesign cycles and to mitigate manufacturer costs.
    AHAM commented that home appliances are now in a continuous cycle 
of regulation, where as soon as one compliance effort ends or is near 
completion, another round of regulation to change the standard begins 
again. According to AHAM, this puts a continual burden on 
manufacturers. AHAM also stated that there is no time for DOE, 
manufacturers, or efficiency

[[Page 81048]]

advocates to assess the success of standards or review their impacts on 
consumers and manufacturers. (AHAM, No. 64 at p. 36) Under EPCA, DOE is 
required to analyze potential new and amended energy conservation 
standards for specific products within specific time periods. (See 42 
U.S.C. 6295(m)) DOE will continue to meet its legal obligations for 
either amending standards or determining that revised standards are not 
justified.
    DOE acknowledges that some consumer conventional cooking product 
manufacturers also make appliances that are or could be subject to 
future energy conservation standards implemented by DOE. DOE is also 
aware of energy conservation standards that could affect consumer 
conventional cooking product manufacturers. These energy conservation 
standards include those for walk-in coolers and freezers with a 
compliance date in 2020,\74\ residential boilers with a compliance date 
in 2021,\75\ residential central air conditioners and heat pumps with a 
compliance date in 2023,\76\ and small, large, and very large 
commercial package air conditioning and heating equipment with a second 
compliance date in 2023.\77\ The compliance years and expected industry 
conversion costs of all relevant new and amended energy conservation 
standards are indicated in Table V-29.
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    \74\ Energy conservation standards final rule for walk-in 
coolers and freezers. 82 FR 31808 (July 10, 2017).
    \75\ Energy conservation standards final rule for residential 
boilers. 81 FR 2320 (Jan. 15, 2016).
    \76\ Energy conservation standards final rule for residential 
central air conditioners and heat pumps. 82 FR 1786 (Jan. 6, 2017).
    \77\ Energy conservation standards final rule for small, large, 
and very large commercial package air conditioning and heating 
equipment. 81 FR 2420 (Jan. 15, 2016).
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BILLING CODE 6450-01-P
[GRAPHIC] [TIFF OMITTED] TP14DE20.080


[[Page 81049]]


BILLING CODE 6450-01-C
    When conducting the cumulative regulatory burden analysis, DOE 
considers other energy conservation standards for products that 
consumer conventional cooking product manufacturers make, especially if 
those standards occur either 3 years before or after the anticipated 
compliance date for consumer conventional cooking products standards, 
as part of this analysis. DOE discusses these and other requirements 
and includes the full details of the cumulative regulatory burden 
analysis in Chapter 11 of the TSD for this NOPD.
    AHAM expressed concern about DOE amending test procedures and 
proposing standards simultaneously. AHAM commented that the time and 
resources needed to evaluate and respond to both amended test 
procedures and new and amended energy conservation standards should not 
be discounted as a source of cumulative regulatory burden. AHAM also 
stated that manufacturers experience difficulty in determining how 
their products will perform in relation to the standards when the test 
procedure has not been finalized, which nearly precluded commenting on 
the test procedure. (AHAM, No. 64 at pp. 35, 36) DOE understands that 
responding to test procedure and standards proposals take time and 
resources from manufacturers. As discussed, DOE published an update to 
the Process Rule. 85 FR 8626. Pursuant to the update, test procedure 
rulemakings establishing methodologies used to evaluate proposed energy 
conservation standards will be finalized at least 180 days prior to 
publication of a NOPR proposing new or amended energy conservation 
standards. Section 8(d) of the Process Rule.
3. National Impact Analysis
    This section presents DOE's estimates of the NES and the NPV of 
consumer benefits that would result from each of the TSLs considered as 
potential new and amended standards.
a. Significance of Energy Savings
    To estimate the energy savings attributable to potential new and 
amended standards for consumer conventional cooking products, DOE 
compared their energy consumption under the no-new-standards case to 
their anticipated energy consumption under each TSL. The savings are 
measured over the entire lifetime of products purchased in the 30-year 
period that begins in the year of anticipated compliance with potential 
new and amended standards (2023-2052). Table V-30 presents DOE's 
projections of the NES for each TSL considered for consumer 
conventional cooking products. The savings were calculated using the 
approach described in section IV.H of this document.
[GRAPHIC] [TIFF OMITTED] TP14DE20.081

    OMB Circular A-4 \78\ requires agencies to present analytical 
results, including separate schedules of the monetized benefits and 
costs that show the type and timing of benefits and costs. Circular A-4 
also directs agencies to consider the variability of key elements 
underlying the estimates of benefits and costs. For this proposed 
determination, DOE undertook a sensitivity analysis using 9, rather 
than 30, years of product shipments. The choice of a 9-year period is a 
proxy for the timeline in EPCA for the review of certain energy 
conservation standards and potential revision of and compliance with 
such revised standards.\79\ The review timeframe established in EPCA is 
generally not synchronized with the product lifetime, product 
manufacturing cycles, or other factors specific to consumer 
conventional cooking products. Thus, such results are presented for 
informational purposes only and are not indicative of any change in 
DOE's analytical methodology. The NES sensitivity analysis results 
based on a 9-year analytical period are presented in Table V-31. The 
impacts are counted over the lifetime of conventional cooking products 
purchased in 2023-2031.
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    \78\ U.S. Office of Management and Budget, Circular A-4: 
Regulatory Analysis. September 17, 2003. Available at: https://obamawhitehouse.archives.gov/omb/circulars_a004_a-4/.
    \79\ Section 325(m) of EPCA requires DOE to review its standards 
at least once every 6 years, and requires, for certain products, a 
3-year period after any new standard is promulgated before 
compliance is required, except that in no case may any new standards 
be required within 6 years of the compliance date of the previous 
standards. If DOE makes a determination that amended standards are 
not needed, it must conduct a subsequent review within three years 
following such a determination. As DOE is evaluating the need to 
amend the standards, the sensitivity analysis is based on the review 
timeframe associated with amended standards. While adding a 6-year 
review to the 3-year compliance period adds up to 9 years, DOE notes 
that it may undertake reviews at any time within the 6-year period 
and that the 3-year compliance date may yield to the 6-year 
backstop. A 9-year analysis period may not be appropriate given the 
variability that occurs in the timing of standards reviews and the 
fact that for some products, the compliance period is 5 years rather 
than 3 years.

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[GRAPHIC] [TIFF OMITTED] TP14DE20.082

b. Net Present Value of Consumer Costs and Benefits
    DOE estimated the cumulative NPV of the total costs and savings for 
consumers that would result from the TSLs considered for consumer 
conventional cooking products. In accordance with OMB's guidelines on 
regulatory analysis,\80\ DOE calculated NPV using both a 7-percent and 
a 3-percent real discount rate. Table V-32 shows the consumer NPV 
results for each TSL DOE considered for consumer conventional cooking 
products. The impacts are counted over the lifetime of products 
purchased in 2023-2052.
---------------------------------------------------------------------------

    \80\ U.S. Office of Management and Budget. Circular A-4: 
Regulatory Analysis. September 17, 2003. Available at https://obamawhitehouse.archives.gov/omb/circulars_a004_a-4/.
[GRAPHIC] [TIFF OMITTED] TP14DE20.083

    The NPV results based on the aforementioned 9-year analytical 
period are presented in Table V-33. The impacts are counted over the 
lifetime of products purchased in 2023-2031. As mentioned previously, 
such results are presented for informational purposes only and is not 
indicative of any change in DOE's analytical methodology or decision 
criteria.

[[Page 81051]]

[GRAPHIC] [TIFF OMITTED] TP14DE20.084

    The above results reflect the use of a default trend to estimate 
the change in price for consumer conventional cooking products over the 
analysis period (see section IV.F.1 of this document). DOE also 
conducted a sensitivity analysis that considered one scenario with a 
lower rate of price decline than the reference case and one scenario 
with a higher rate of price decline than the reference case. The 
results of these alternative cases are presented in appendix 10C of the 
TSD for this NOPD. In the high-price-decline case, the NPV of consumer 
benefits is higher than in the default case. In the low-price-decline 
case, the NPV of consumer benefits is lower than in the default case.

C. Proposed Determination

    When considering amended energy conservation standards, the 
standards that DOE adopts for any type (or class) of covered product 
must be designed to achieve the maximum improvement in energy 
efficiency that the Secretary determines is technologically feasible 
and economically justified. (42 U.S.C. 6295(o)(2)(A)) In determining 
whether a standard is economically justified, the Secretary must 
determine whether the benefits of the standard exceed its burdens by, 
to the greatest extent practicable, considering the seven statutory 
factors discussed previously. (42 U.S.C. 6295(o)(2)(B)(i)) The new or 
amended standard must also result in significant conservation of 
energy. (42 U.S.C. 6295(o)(3)(B))
    For this proposed determination, DOE considered the impacts of 
amended standards for consumer conventional cooking products at 
analyzed TSLs, beginning with the maximum technologically feasible 
level, to determine whether that level was economically justified. 
Because an analysis of potential economic justification and energy 
savings first requires an evaluation of the relevant technology, in the 
following sections DOE first discusses the technological feasibility of 
amended standards. DOE then addresses the energy savings and economic 
justification associated with potential amended standards.
    Table V-34 and Table V-35 summarize the quantitative impacts 
estimated for each TSL for consumer conventional cooking products. The 
national impacts are measured over the lifetime of consumer 
conventional cooking products purchased in the 30-year period that 
begins in the anticipated year of compliance with potential new and 
amended standards (2023-2052). The efficiency levels contained in each 
TSL are described in section V.A of this document.
BILLING CODE 6450-01-P
[GRAPHIC] [TIFF OMITTED] TP14DE20.085


[[Page 81052]]


[GRAPHIC] [TIFF OMITTED] TP14DE20.086


[[Page 81053]]


BILLING CODE 6450-01-C
1. Technological Feasibility
    EPCA mandates that DOE consider whether amended energy conservation 
standards for consumer conventional cooking products would be 
technologically feasible. (42 U.S.C. 6295(m)(1)(A) and (n)(2)(B)) DOE 
has tentatively determined that there are technology options that would 
improve the efficiency of consumer conventional cooking products. These 
technology options are being used in commercially available consumer 
conventional cooking products and therefore are technologically 
feasible. (See section IV.B of this document for further information.) 
Hence, DOE has tentatively determined that amended energy conservation 
standards for consumer conventional cooking products are 
technologically feasible.
2. Significant Conservation of Energy
    EPCA also mandates that DOE consider whether amended energy 
conservation standards for consumer conventional cooking products would 
result in significant conservation of energy. (42 U.S.C. 6295(m)(1)(A) 
and 42 U.S.C. 6295(n)(2)(A)) As discussed in section III.D.2 of this 
document, to determine whether energy savings are significant, DOE 
conducts a two-step approach that considers both an absolute site 
energy savings threshold and a threshold that is a percent reduction in 
the covered energy use. Section 6(b) of the Process Rule. DOE first 
evaluates the projected energy savings from a potential max-tech 
standard over a 30-year period against a 0.3 quads of site energy 
threshold. Section 6(b)(2) of the Process Rule. If the 0.3 quad-
threshold is not met, DOE then compares the max-tech savings to the 
total energy usage of the covered equipment to calculate a percentage 
reduction in energy usage. Section 6(b)(3) of the Process Rule. If this 
comparison does not yield a reduction in site energy use of at least 10 
percent over a 30-year period, DOE proposes that no significant energy 
savings would likely result from setting new or amended standards. 
Section 6(b)(4) of the Process Rule.
    To estimate the energy savings attributable to potential amended 
standards for consumer conventional cooking products, DOE compared 
their energy consumption under the no-new-standards case to their 
anticipated energy consumption under each potential standard level. The 
savings are measured over the entire lifetime of products purchased in 
the 30-year period that begins in the year of anticipated compliance 
with amended standards (2023-2052).
    DOE first considered TSL 3, which represents the max-tech 
efficiency levels. TSL 3 would save an estimated 0.57 quads of site 
energy, an amount DOE considers significant as it exceeds the 0.3 quad-
threshold established in section 6(b)(2) of the Process Rule for 
evaluating the significance of energy savings.
    DOE then considered TSL 2, which would save an estimated 0.22 quads 
of energy over the evaluation period, which represents a 4.9-percent 
decrease in energy use of the evaluated products. The estimated energy 
savings does not reach the 0.3 quad-threshold or the 10-percent energy 
saving threshold established in section 6(b) of the Process Rule, and 
therefore would not be significant. Because TSL 2 would not achieve 
significant energy savings, DOE did not consider it further.
    Finally, DOE considered TSL 1, which would save an estimated 0.10 
quads of energy over the evaluation period, which represents a 2.2-
percent decrease in energy use of the evaluated products. The estimated 
energy savings does not reach the 0.3 quad-threshold or the 10-percent 
energy saving threshold established in section 6(b) of the Process 
Rule, and therefore would not be significant. Because TSL 1 would not 
achieve significant energy savings, DOE did not consider it further.
3. Economic Justification
    In determining whether a standard is economically justified, the 
Secretary must determine whether the benefits of the standard exceed 
its burdens, considering to the greatest extent practicable the seven 
statutory factors discussed previously. (42 U.S.C. 6295(o)(2)(B)(i)) 
One of those seven factors includes whether the proposed standard level 
is cost-effective, as defined under 42 U.S.C. 6295(o)(2)(B)(i)(II). 
Under 42 U.S.C. 6295(o)(2)(B)(i)(II), an evaluation of cost-
effectiveness requires DOE to consider savings in operating costs 
throughout the estimated average life of the covered products in the 
type (or class) compared to any increase in the price, initial charges, 
or maintenance expenses for the covered products that are likely to 
result from the standard. This factor is assessed using LCC and PBP 
analysis. DOE conducted an LCC analysis to estimate the net costs/
benefits to users from increased efficiency in the considered consumer 
conventional cooking products. (See results in Table V-53.) DOE then 
aggregated the results from the LCC analysis to estimate the NPV of the 
total costs and benefits experienced by the Nation. (See results in 
Table V-44 and Table V-45.) As noted, the inputs for determining the 
NPV are (1) total annual installed cost, (2) total annual operating 
costs (energy costs and repair and maintenance costs), and (3) a 
discount factor to calculate the present value of costs and savings.
    Under TSL 3, the NPV of consumer benefit would be negative $18.4 
billion using a discount rate of 7 percent, and negative $32.1 billion 
using a discount rate of 3 percent.
    At TSL 3, the average LCC impact ranges from a savings of negative 
$457 for PC2 (Electric Smooth Element Cooking Tops) to negative $11.12 
for PC11 (Gas Self-Clean Oven--Built-In/Slide-In). The simple payback 
period ranges from 16.5 years for PC8 (Gas Standard Oven--Free-
Standing) and PC9 (Gas Standard Oven--Built-In/Slide-In) to 111.7 years 
for PC2 (Electric Smooth Cooking Tops). The fraction of consumers 
experiencing a net LCC cost ranges from zero percent for PC1 (Electric 
Open (Coil) Element Cooking Tops) and PC3 (Gas Cooking Tops), to 99 
percent for PC2 (Electric Smooth Element Cooking Tops).
    DOE is concerned that TSL 3 may result in the unavailability of 
certain product types for conventional ovens, because there would be 
significant uncertainty as to whether commercial-style manufacturers 
would be able to test their products, in the absence of a DOE test 
procedure for conventional ovens. DOE also notes that the reduction in 
IAEC at TSL 3 for PC2 (Electric Smooth Cooking Tops) could result in 
the loss of certain functions that provide utility to consumers, 
specifically the continuous clock display for combined cooking 
products. In addition, DOE recognizes that there may be uncertainty in 
conducting the standards analysis and analyzing energy savings from 
performance standards for conventional ovens based on efficiency levels 
using the previous version of the oven test procedure, which DOE has 
now repealed in the December 2016 TP Final Rule due to concerns whether 
the test procedure accurately reflects the energy use of all product 
types.
    At TSL 3, the projected change in INPV ranges from a decrease of 
$629.0 million to a decrease of $384.6 million, which correspond to 
decreases of 39.6 percent and 24.2 percent, respectively.
    Products that meet the efficiency standards specified by TSL 3 are 
forecast to represent 39 percent of shipments in 2023, the analyzed 
compliance year of the evaluated standards. As such, manufacturers 
would have to redesign the majority of

[[Page 81054]]

their products by 2023. Redesigning these units to meet max-tech would 
require considerable investment from manufacturers. At TSL 3, DOE 
estimates capital conversion costs would total $413.4 million and 
product conversion costs would total $362.9 million. Total capital and 
product conversion costs associated with the changes in products and 
manufacturing facilities required at TSL 3 would require significant 
use of manufacturers' financial reserves and would significantly reduce 
manufacturer INPV. Additionally, manufacturers are more likely to 
reduce their margins to maintain a price-competitive product at higher 
TSLs, so DOE expects that TSL 3 would yield impacts closer to the most 
severe range of INPV impacts. If the most severe range of impacts is 
reached, the max-tech standard could result in a net loss of 39.6 
percent in INPV to consumer conventional cooking product manufacturers. 
As a result, at TSL 3, DOE expects that some companies could be forced 
to exit the consumer conventional cooking product market. The 
commercial-style manufacturer subgroup would most likely not be able to 
meet the conventional ovens standards required at this TSL and would 
likely be forced to exit the conventional oven market.
    Based on the negative NPV of TSL 3, the negative INPV range, and 
the potential loss of utility resulting from a standard at TSL 3, DOE 
has tentatively determined that any potential positive impact of the 
other statutory factors would not outweigh the estimated negative 
impacts. Hence, DOE has tentatively determined that an amended standard 
at TSL 3 is not economically justified. Based on this consideration, 
DOE is not proposing to amend energy conservation standards to adopt 
TSL 3 for consumer conventional cooking products.
4. Summary of Annualized Benefits and Costs of the Proposed Standards
    In this proposed determination, based on the consideration of the 
significance of energy savings and the factors required for 
consideration of whether amended standards would be economically 
justified, and the initial determination that amended standards would 
not result in significant energy savings and would not be economically 
justified, DOE has tentatively determined that energy conservation 
standards for consumer conventional cooking products do not need to be 
amended. DOE will consider all comments received on this proposed 
determination in issuing any final determination.

VI. Procedural Issues and Regulatory Review

A. Review Under Executive Order 12866

    This proposed determination has been determined to be not 
significant for purposes of Executive Order (``E.O.'') 12866, 
``Regulatory Planning and Review,'' 58 FR 51735 (Oct. 4, 1993). As a 
result, OMB did not review this proposed determination.

B. Review Under Executive Orders 13771 and 13777

    On January 30, 2017, the President issued E.O. 13771, ``Reducing 
Regulation and Controlling Regulatory Costs.'' 82 FR 9339 (Feb. 3, 
2017). E.O. 13771 stated the policy of the executive branch is to be 
prudent and financially responsible in the expenditure of funds, from 
both public and private sources. E.O. 13771 stated it is essential to 
manage the costs associated with the governmental imposition of private 
expenditures required to comply with Federal regulations.
    Additionally, on February 24, 2017, the President issued E.O. 
13777, ``Enforcing the Regulatory Reform Agenda.'' 82 FR 12285 (March 
1, 2017). E.O. 13771 required the head of each agency designate an 
agency official as its Regulatory Reform Officer (``RRO''). Each RRO 
oversees the implementation of regulatory reform initiatives and 
policies to ensure that agencies effectively carry out regulatory 
reforms, consistent with applicable law. Further, E.O. 13777 requires 
the establishment of a regulatory task force at each agency. The 
regulatory task force is required to make recommendations to the agency 
head regarding the repeal, replacement, or modification of existing 
regulations, consistent with applicable law. At a minimum, each 
regulatory reform task force must attempt to identify regulations that:

    (1) Eliminate jobs, or inhibit job creation;
    (2) Are outdated, unnecessary, or ineffective;
    (3) Impose costs that exceed benefits;
    (4) Create a serious inconsistency or otherwise interfere with 
regulatory reform initiatives and policies;
    (5) Are inconsistent with the requirements of Information 
Quality Act, or the guidance issued pursuant to that Act, in 
particular those regulations that rely in whole or in part on data, 
information, or methods that are not publicly available or that are 
insufficiently transparent to meet the standard for reproducibility; 
or
    (6) Derive from or implement Executive Orders or other 
Presidential directives that have been subsequently rescinded or 
substantially modified.

    DOE initially concludes that this proposed determination is 
consistent with the directives set forth in these executive orders.
    As discussed in this document, DOE is proposing not to amend energy 
conservation standards for consumer conventional cooking products. 
Consistent with E.O. 13771, this proposed determination, if finalized, 
is not estimated to result in any costs or cost savings. Therefore, if 
finalized as proposed, this determination is expected to be an E.O. 
13771 ``Other Action.''

C. Review Under the Regulatory Flexibility Act

    The Regulatory Flexibility Act (5 U.S.C. 601 et seq.) requires 
preparation of an initial regulatory flexibility analysis (``IRFA'') 
for any rule that by law must be proposed for public comment, unless 
the agency certifies that the rule, if promulgated, will not have a 
significant economic impact on a substantial number of small entities. 
As required by E.O. 13272, ``Proper Consideration of Small Entities in 
Agency Rulemaking,'' 67 FR 53461 (Aug. 16, 2002), DOE published 
procedures and policies on February 19, 2003, to ensure that the 
potential impacts of its rules on small entities are properly 
considered during the rulemaking process. 68 FR 7990. DOE has made its 
procedures and policies available on the Office of the General 
Counsel's website (http://energy.gov/gc/office-general-counsel).
    DOE reviewed this proposed determination under the provisions of 
the Regulatory Flexibility Act and the policies and procedures 
published on February 19, 2003. Because DOE is proposing not to amend 
standards for consumer conventional cooking products, if adopted, the 
determination would not amend any energy conservation standards. On the 
basis of the foregoing, DOE certifies that the proposed determination, 
if adopted, would have no significant economic impact on a substantial 
number of small entities. Accordingly, DOE has not prepared an IRFA for 
this proposed determination. DOE will transmit this certification and 
supporting statement of factual basis to the Chief Counsel for Advocacy 
of the Small Business Administration for review under 5 U.S.C. 605(b).

D. Review Under the Paperwork Reduction Act

    Manufacturers of consumer conventional cooking products must 
certify to DOE that their products comply with any applicable energy 
conservation standards. DOE has established regulations for the

[[Page 81055]]

certification and recordkeeping requirements for all covered consumer 
products and commercial equipment, consumer conventional cooking 
products. (See generally 10 CFR part 429.) The collection-of-
information requirement for the certification and recordkeeping is 
subject to review and approval by OMB under the Paperwork Reduction Act 
(``PRA''). This requirement has been approved by OMB under OMB control 
number 1910-1400. Public reporting burden for the certification is 
estimated to average 35 hours per response, including the time for 
reviewing instructions, searching existing data sources, gathering and 
maintaining the data needed, and completing and reviewing the 
collection of information.
    Notwithstanding any other provision of the law, no person is 
required to respond to, nor shall any person be subject to a penalty 
for failure to comply with, a collection of information subject to the 
requirements of the PRA, unless that collection of information displays 
a currently valid OMB Control Number.

E. Review Under the National Environmental Policy Act of 1969

    DOE is analyzing this proposed action in accordance with the 
National Environmental Policy Act of 1969 (``NEPA'') and DOE's NEPA 
implementing regulations (10 CFR part 1021). DOE's regulations include 
a categorical exclusion for actions which are interpretations or 
rulings with respect to existing regulations. 10 CFR part 1021, subpart 
D, appendix A4. DOE anticipates that this action qualifies for 
categorical exclusion A4 because it is an interpretation or ruling 
regarding an existing regulation and otherwise meets the requirements 
for application of a categorical exclusion. See 10 CFR 1021.410. DOE 
will complete its NEPA review before issuing the final action.

F. Review Under Executive Order 13132

    E.O. 13132, ``Federalism,'' 64 FR 43255 (Aug. 10, 1999) imposes 
certain requirements on Federal agencies formulating and implementing 
policies or regulations that preempt State law or that have federalism 
implications. The Executive order requires agencies to examine the 
constitutional and statutory authority supporting any action that would 
limit the policymaking discretion of the States and to carefully assess 
the necessity for such actions. The Executive order also requires 
agencies to have an accountable process to ensure meaningful and timely 
input by State and local officials in the development of regulatory 
policies that have federalism implications. On March 14, 2000, DOE 
published a statement of policy describing the intergovernmental 
consultation process it will follow in the development of such 
regulations. 65 FR 13735. DOE has examined this proposed determination 
and has determined that it would not have a substantial direct effect 
on the States, on the relationship between the National Government and 
the States, or on the distribution of power and responsibilities among 
the various levels of government. EPCA governs and prescribes Federal 
preemption of State regulations as to energy conservation for the 
products that are the subject of this proposed determination. States 
can petition DOE for exemption from such preemption to the extent, and 
based on criteria, set forth in EPCA. (42 U.S.C. 6297) Therefore, no 
further action is required by E.O. 13132.

G. Review Under Executive Order 12988

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

H. Review Under the Unfunded Mandates Reform Act of 1995

    Title II of the Unfunded Mandates Reform Act of 1995 (``UMRA'') 
requires each Federal agency to assess the effects of Federal 
regulatory actions on State, local, and Tribal governments and the 
private sector. Public Law 104-4, sec. 201 (codified at 2 U.S.C. 1531). 
For a proposed regulatory action likely to result in a rule that may 
cause the expenditure by State, local, and Tribal governments, in the 
aggregate, or by the private sector of $100 million or more in any one 
year (adjusted annually for inflation), section 202 of UMRA requires a 
Federal agency to publish a written statement that estimates the 
resulting costs, benefits, and other effects on the national economy. 
(2 U.S.C. 1532(a), (b)) The UMRA also requires a Federal agency to 
develop an effective process to permit timely input by elected officers 
of State, local, and Tribal governments on a proposed ``significant 
intergovernmental mandate,'' and requires an agency plan for giving 
notice and opportunity for timely input to potentially affected small 
governments before establishing any requirements that might 
significantly or uniquely affect them. On March 18, 1997, DOE published 
a statement of policy on its process for intergovernmental consultation 
under UMRA. 62 FR 12820. DOE's policy statement is also available at 
http://energy.gov/sites/prod/files/gcprod/documents/umra_97.pdf.
    This proposed determination does not contain a Federal 
intergovernmental mandate, nor is it expected to require expenditures 
of $100 million or more in any one year by State, local, and Tribal 
governments, in the aggregate, or by the private sector. As a result, 
the analytical requirements of UMRA do not apply.

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

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

J. Review Under Executive Order 12630

    Pursuant to E.O. 12630, ``Governmental Actions and Interference 
with Constitutionally Protected Property

[[Page 81056]]

Rights,'' 53 FR 8859 (Mar. 18, 1988), DOE has determined that this 
proposed determination would not result in any takings that might 
require compensation under the Fifth Amendment to the U.S. 
Constitution.

K. Review Under the Treasury and General Government Appropriations Act, 
2001

    Section 515 of the Treasury and General Government Appropriations 
Act, 2001 (44 U.S.C. 3516, note) provides for Federal agencies to 
review most disseminations of information to the public under 
information quality guidelines established by each agency pursuant to 
general guidelines issued by OMB. OMB's guidelines were published at 67 
FR 8452 (Feb. 22, 2002), and DOE's guidelines were published at 67 FR 
62446 (Oct. 7, 2002). DOE has reviewed this NOPD under the OMB and DOE 
guidelines and has concluded that it is consistent with applicable 
policies in those guidelines.

L. Review Under Executive Order 13211

    E.O. 13211, ``Actions Concerning Regulations That Significantly 
Affect Energy Supply, Distribution, or Use,'' 66 FR 28355 (May 22, 
2001), requires Federal agencies to prepare and submit to the Office of 
Information and Regulatory Affairs (``OIRA'') at OMB, a Statement of 
Energy Effects for any proposed significant energy action. A 
``significant energy action'' is defined as any action by an agency 
that promulgates or is expected to lead to promulgation of a final 
rule, and that (1) is a significant regulatory action under Executive 
Order 12866, or any successor Executive Order; and (2) is likely to 
have a significant adverse effect on the supply, distribution, or use 
of energy, or (3) is designated by the Administrator of OIRA as a 
significant energy action. For any proposed significant energy action, 
the agency must give a detailed statement of any adverse effects on 
energy supply, distribution, or use should the proposal be implemented, 
and of reasonable alternatives to the action and their expected 
benefits on energy supply, distribution, and use.
    Because this proposed determination does not propose amended energy 
conservation standards for consumer conventional cooking products, it 
is not a significant energy action, nor has it been designated as such 
by the Administrator at OIRA. Accordingly, DOE has not prepared a 
Statement of Energy Effects.

M. Information Quality

    On December 16, 2004, OMB, in consultation with the Office of 
Science and Technology Policy (``OSTP''), issued its Final Information 
Quality Bulletin for Peer Review (``the Bulletin''). 70 FR 2664 (Jan. 
14, 2005). The Bulletin establishes that certain scientific information 
shall be peer reviewed by qualified specialists before it is 
disseminated by the Federal Government, including influential 
scientific information related to agency regulatory actions. The 
purpose of the bulletin is to enhance the quality and credibility of 
the Government's scientific information. Under the Bulletin, the energy 
conservation standards rulemaking analyses are ``influential scientific 
information,'' which the Bulletin defines as ``scientific information 
the agency reasonably can determine will have, or does have, a clear 
and substantial impact on important public policies or private sector 
decisions.'' Id. at FR 70 FR 2667.
    In response to OMB's Bulletin, DOE conducted formal peer reviews of 
the energy conservation standards development process and the analyses 
that are typically used and has prepared a report describing that peer 
review.\81\ Generation of this report involved a rigorous, formal, and 
documented evaluation using objective criteria and qualified and 
independent reviewers to make a judgment as to the technical/
scientific/business merit, the actual or anticipated results, and the 
productivity and management effectiveness of programs and/or projects. 
DOE has determined that the peer-reviewed analytical process continues 
to reflect current practice, and the Department followed that process 
for developing energy conservation standards in the case of the present 
action.
---------------------------------------------------------------------------

    \81\ ``Energy Conservation Standards Rulemaking Peer Review 
Report.'' 2007. Available at http://energy.gov/eere/buildings/downloads/energy-conservation-standards-rulemaking-peer-review-report-0.
---------------------------------------------------------------------------

VII. Public Participation

A. Participation in the Webinar

    The time and date of the webinar are listed in the DATES section at 
the beginning of this document. If no participants register for the 
webinar then it will be cancelled. Webinar registration information, 
participant instructions, and information about the capabilities 
available to webinar participants will be published on DOE's website: 
https://www1.eere.energy.gov/buildings/appliance_standards/standards.aspx?productid=34. Participants are responsible for ensuring 
their systems are compatible with the webinar software.

B. Procedure for Submitting Prepared General Statements for 
Distribution

    Any person who has an interest in the topics addressed in this 
NOPD, or who is representative of a group or class of persons that has 
an interest in these issues, may request an opportunity to make an oral 
presentation at the webinar. Such persons may hand-deliver requests to 
speak to the address shown in the ADDRESSES section at the beginning of 
this notification of proposed determination between 9:00 a.m. and 4:00 
p.m., Monday through Friday, except Federal holidays. Requests may also 
be sent by postal mail or email to the Appliance and Equipment 
Standards Program, U.S. Department of Energy, Building Technologies 
Office, Mailstop EE-5B 1000 Independence Avenue SW, Washington, DC 
20585-0121, or [email protected]. Persons who wish 
to speak should include with their request a computer file in 
WordPerfect, Microsoft Word, PDF, or text (ASCII) file format that 
briefly describes the nature of their interest in this rulemaking and 
the topics they wish to discuss. Such persons should also provide a 
daytime telephone number where they can be reached.
    Persons requesting to speak should briefly describe the nature of 
their interest in this rulemaking and provide a telephone number for 
contact. DOE requests persons selected to make an oral presentation to 
submit an advance copy of their statements at least two weeks before 
the webinar. At its discretion, DOE may permit persons who cannot 
supply an advance copy of their statement to participate, if those 
persons have made advance alternative arrangements with the Building 
Technologies Office. As necessary, requests to give an oral 
presentation should ask for such alternative arrangements.

C. Conduct of the Webinar

    DOE will designate a DOE official to preside at the webinar/public 
meeting and may also use a professional facilitator to aid discussion. 
The meeting will not be a judicial or evidentiary-type public hearing, 
but DOE will conduct it in accordance with section 336 of EPCA (42 
U.S.C. 6306). A court reporter will be present to record the 
proceedings and prepare a transcript. DOE reserves the right to 
schedule the order of presentations and to establish the procedures 
governing the conduct of the webinar/public meeting. There shall not be 
discussion of proprietary information, costs or

[[Page 81057]]

prices, market share, or other commercial matters regulated by U.S. 
anti-trust laws. After the webinar/public meeting and until the end of 
the comment period, interested parties may submit further comments on 
the proceedings and any aspect of the rulemaking.
    The webinar/public meeting will be conducted in an informal, 
conference style. DOE will present summaries of comments received 
before the webinar/public meeting, allow time for prepared general 
statements by participants, and encourage all interested parties to 
share their views on issues affecting this rulemaking. Each participant 
will be allowed to make a general statement (within time limits 
determined by DOE), before the discussion of specific topics. DOE will 
permit, as time permits, other participants to comment briefly on any 
general statements.
    At the end of all prepared statements on a topic, DOE will permit 
participants to clarify their statements briefly and comment on 
statements made by others. Participants should be prepared to answer 
questions by DOE and by other participants concerning these issues. DOE 
representatives may also ask questions of participants concerning other 
matters relevant to this rulemaking. The official conducting the 
webinar/public meeting will accept additional comments or questions 
from those attending, as time permits. The presiding official will 
announce any further procedural rules or modification of the above 
procedures that may be needed for the proper conduct of the webinar/
public meeting.
    A transcript of the webinar/public meeting will be included in the 
docket, which can be viewed as described in the Docket section at the 
beginning of this NOPD. In addition, any person may buy a copy of the 
transcript from the transcribing reporter.

D. Submission of Comments

    DOE will accept comments, data, and information regarding this 
proposed determination no later than the date provided in the DATES 
section at the beginning of this document. Interested parties may 
submit comments, data, and other information using any of the methods 
described in the ADDRESSES section at the beginning of this document.
    Submitting comments via http://www.regulations.gov. The http://www.regulations.gov web page will require you to provide your name and 
contact information. Your contact information will be viewable to DOE 
Building Technologies 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 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 itself 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. Otherwise, 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 http://www.regulations.gov provides after you have successfully uploaded your 
comment.
    Submitting comments via email, hand delivery/courier, or postal 
mail. Comments and documents submitted via email, hand delivery/
courier, or postal 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 in a cover letter. Include your first and last names, email 
address, telephone number, and optional mailing address. With this 
instruction followed, 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 postal mail 
or hand delivery/courier, please provide all items on a CD, if 
feasible, in which case it is not necessary to submit printed copies. 
No 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, that are written in English, and that are 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. Pursuant 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/courier 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.
    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).

E. Issues on Which DOE Seeks Comment

    Although DOE welcomes comments on any aspect of this proposal, DOE 
is particularly interested in receiving comments and views of 
interested parties concerning the following issues:

    (1) DOE seeks comment on both its initial decision to no longer 
consider intermittent/interrupted or intermittent pilot ignition 
systems as a technology option, and its initial decision to only 
evaluate prescriptive standards requiring that conventional ovens 
not be equipped with a control system that

[[Page 81058]]

uses a linear power supply (see section IV.A.2.b of this NOPD).
    (2) DOE requests comment on the evaluated baseline and 
incremental efficiency levels. DOE specifically requests inputs and 
test data on the baseline efficiency levels and the efficiency 
improvements associated with the design options identified at each 
incremental efficiency level that were determined based on either 
the analysis from the 2009 TSD or updated based on testing and 
reverse engineering analyses for this NOPD (see section IV.C.2 of 
this NOPD).
    (3) DOE requests input and data on the estimated incremental 
manufacturing production costs for each efficiency level analyzed 
that were determined based on either the analysis from the 2009 TSD, 
adjusted to reflect changes in the PPI, or costs determined based on 
testing and reverse engineering analyses conducted for this NOPD 
(see section IV.C.3 of this NOPD).
    (4) DOE requests comments on the use of a consumer choice model 
to establish the no-new-standards case and standards case efficiency 
distribution for both electric and gas cooking products (see section 
IV.F.8 of this NOPD)
    (5) To estimate the impact on shipments of the price increase 
for the considered efficiency levels, DOE determined that the new 
construction market will be inelastic to price changes and will not 
impact shipments, and any impact of the price increase would be on 
the replacement market. DOE welcomes input on the effect of 
potential new and amended standards on impacts across products 
within the same fuel class and equipment type (see section IV.G of 
this NOPD).
    (6) DOE requests comment on its use of 12.2 percent as a nominal 
industry discount rate and its use of 3.1 percent as the historical 
inflation rate, to arrive at a 9.1 percent real industry discount 
rate (see section IV.I.3.a of this NOPD).

    Additionally, DOE welcomes comments on other issues relevant to the 
conduct of this proposed determination 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 must manage the costs 
associated with the imposition of expenditures required to comply with 
Federal regulations. See 82 FR 9339 (Feb. 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 consumer 
conventional cooking products while remaining consistent with the 
requirements of EPCA.

VIII. Approval of the Office of the Secretary

    The Secretary of Energy has approved publication of this 
notification of proposed determination.

Signing Authority

    This document of the Department of Energy was signed on December 2, 
2020, by Daniel R Simmons, Assistant Secretary for Energy Efficiency 
and Renewable Energy, pursuant to delegated authority from the 
Secretary of Energy. That document with the original signature and date 
is maintained by DOE. For administrative purposes only, and in 
compliance with requirements of the Office of the Federal Register, the 
undersigned DOE Federal Register Liaison Officer has been authorized to 
sign and submit the document in electronic format for publication, as 
an official document of the Department of Energy. This administrative 
process in no way alters the legal effect of this document upon 
publication in the Federal Register.

    Signed in Washington, DC, on December 2, 2020.
Treena V. Garrett,
Federal Register Liaison Officer, U.S. Department of Energy.
[FR Doc. 2020-26874 Filed 12-11-20; 8:45 am]
BILLING CODE 6450-01-P