[Federal Register Volume 86, Number 186 (Wednesday, September 29, 2021)]
[Proposed Rules]
[Pages 53886-53893]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-21021]
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Proposed Rules
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.
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Federal Register / Vol. 86, No. 186 / Wednesday, September 29, 2021 /
Proposed Rules
[[Page 53886]]
DEPARTMENT OF ENERGY
10 CFR Part 430
[EERE-2017-BT-STD-0014]
RIN 1904-AD98
Energy Conservation Program: Energy Conservation Standards for
Residential Clothes Washers, Webinar and Availability of the
Preliminary Technical Support Document
AGENCY: Office of Energy Efficiency and Renewable Energy, Department of
Energy.
ACTION: Notification of a webinar and availability of preliminary
technical support document.
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SUMMARY: The U.S. Department of Energy (``DOE'') will hold a webinar to
discuss and receive comments on the preliminary analysis it has
conducted for purposes of evaluating energy conservation standards for
consumer (residential) clothes washers (``RCWs''). The meeting will
cover the analytical framework, models, and tools that DOE is using to
evaluate potential standards for this product; the results of
preliminary analyses performed by DOE for this product; the potential
energy conservation standard levels derived from these analyses that
DOE could consider for this product should it determine that proposed
amendments are necessary; and any other issues relevant to the
evaluation of energy conservation standards for RCWs. In addition, DOE
encourages written comments on these subjects. To inform interested
parties and to facilitate this process, DOE has prepared an agenda, a
preliminary technical support document, and briefing materials, which
are available on the DOE website at: www.regulations.gov/docket/EERE-2017-BT-STD-0014.
DATES:
Meeting: DOE will hold a webinar on Wednesday, November 10, 2021,
from 10:00 a.m. to 3:00 p.m. See section IV, ``Public Participation,''
for webinar registration information, participant instructions and
information about the capabilities available to webinar participants.
Comments: Written comments and information will be accepted on or
before December 13, 2021.
ADDRESSES: Interested persons are encouraged to submit comments using
the Federal eRulemaking Portal at www.regulations.gov. Follow the
instructions for submitting comments. Alternatively, interested persons
may submit comments, identified by docket number EERE-2017-BT-STD-0014,
by any of the following methods:
1. Federal eRulemaking Portal: www.regulations.gov. Follow the
instructions for submitting comments.
2. Email: To [email protected]. Include
docket number EERE-2017-BT-STD-0014 in the subject line of the message.
No telefacsimiles (``faxes'') will be accepted. For detailed
instructions on submitting comments and additional information on this
process, see section IV of this document.
Although DOE has routinely accepted public comment submissions
through a variety of mechanisms, including postal mail and hand
delivery/courier, the Department has found it necessary to make
temporary modifications to the comment submission process in light of
the ongoing corona virus 2019 (``COVID-19'') pandemic. DOE is currently
suspending receipt of public comments via postal mail and hand
delivery/courier. If a commenter finds that this change poses an undue
hardship, please contact Appliance Standards Program staff at (202)
586-1445 to discuss the need for alternative arrangements. Once the
COVID-19 pandemic health emergency is resolved, DOE anticipates
resuming all of its regular options for public comment submission,
including postal mail and hand delivery/courier.
Docket: The docket for this activity, which includes Federal
Register notices, comments, public meeting transcripts, and other
supporting documents/materials, is available for review at
www.regulations.gov. All documents in the docket are listed in the
www.regulations.gov index. However, some documents listed in the index,
such as those containing information that is exempt from public
disclosure, may not be publicly available.
The docket web page can be found at www.regulations.gov/docket/EERE-2017-BT-STD-0014. The docket web page contains instructions on how
to access all documents, including public comments in the docket. See
section IV for information on how to submit comments through
www.regulations.gov.
FOR FURTHER INFORMATION CONTACT: Mr. Bryan Berringer, U.S. Department
of Energy, Office of Energy Efficiency and Renewable Energy, Building
Technologies, EE-2J, 1000 Independence Avenue SW, Washington, DC 20585-
0121. Email: [email protected].
Ms. Kathryn McIntosh, U.S. Department of Energy, Office of the
General Counsel, GC-33, 1000 Independence Avenue SW, Washington, DC
20585-0121. Telephone: (202) 586-2002. Email:
[email protected].
For further information on how to submit a comment, review other
public comments and the docket, contact the Appliance and Equipment
Standards Program staff at (202) 287-1445 or by email:
[email protected].
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Introduction
A. Authority
B. Rulemaking Process
II. Background
A. Current Standards
B. Current Process
C. Test Procedure
III. Summary of the Analyses Performed by DOE
A. Market and Technology Assessment
B. Screening Analysis
C. Engineering Analysis
D. Markups Analysis
E. Energy and Water Use Analysis
F. Life-Cycle Cost and Payback Period Analyses
G. National Impact Analysis
IV. Public Participation
A. Participation in the Webinar
B. Procedure for Submitting Prepared General Statements for
Distribution
C. Conduct of the Webinar
D. Submission of Comments
V. Approval of the Office of the Secretary
[[Page 53887]]
I. Introduction
A. Authority
The Energy Policy and Conservation Act, as amended (``EPCA''),\1\
authorizes DOE to regulate the energy efficiency of a number of
consumer products and certain industrial equipment. (42 U.S.C. 6291-
6317) Title III, Part B \2\ of EPCA established the Energy Conservation
Program for Consumer Products Other Than Automobiles. These products
include consumer (residential) clothes washers,\3\ the subject of this
document. (42 U.S.C. 6292(a)(7))
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\1\ All references to EPCA in this document refer to the statute
as amended through the Energy Act of 2020, Public Law 116-260 (Dec.
27, 2020).
\2\ For editorial reasons, upon codification in the U.S. Code,
Part B was redesignated Part A.
\3\ DOE uses the ``residential'' nomenclature and ``RCW''
abbreviation for consumer clothes washers in order to distinguish
from the ``CCW'' abbreviation used for commercial clothes washers,
which are also regulated equipment under EPCA.
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EPCA prescribed energy conservation standards for these products
(42 U.S.C. 6295(g)(2) and (9)(A)), and directed DOE to conduct
rulemakings to determine whether to amend the statutorily established
standards. (42 U.S.C. 6295(g)(4) and (9)(B)) EPCA further provides
that, not later than 6 years after the 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)(1)) Not later than 3
years after issuance of a final determination not to amend standards,
DOE must publish either a notice of determination that standards for
the 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))
Under EPCA, any new or amended energy conservation standard must be
designed to achieve the maximum improvement in energy efficiency that
DOE determines is technologically feasible and economically justified.
(42 U.S.C. 6295(o)(2)(A)) Furthermore, the new or amended standard must
result in a significant conservation of energy. (42 U.S.C.
6295(o)(3)(B))
DOE is publishing this preliminary analysis to collect data and
information to inform its decision consistent with its obligations
under EPCA.
B. Rulemaking Process
DOE must follow specific statutory criteria for prescribing new or
amended standards for covered products, including RCWs. As noted, EPCA
requires that any new or amended energy conservation standard
prescribed by the Secretary of Energy (``Secretary'') be designed to
achieve the maximum improvement in energy efficiency (or water
efficiency for certain products specified by EPCA) 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)) The Secretary may not prescribe an amended or new standard
that will not result in significant conservation of energy, or is not
technologically feasible or economically justified. (42 U.S.C.
6295(o)(3))
On February 14, 2020, DOE published an update to its procedures,
interpretations, and policies for consideration in new or revised
energy conservation standards and test procedure, i.e., ``Procedures,
Interpretations, and Policies for Consideration of New or Revised
Energy Conservation Standards and Test Procedures for Consumer Products
and Certain Commercial/Industrial Equipment'' (see 10 CFR part 430,
subpart C, appendix A (``Process Rule,'')).\4\ 85 FR 8626. In the
updated Process Rule, DOE established a significance threshold for
energy savings under which DOE employs a two-step approach that
considers both an absolute site energy savings threshold and a
threshold that is a percent reduction in the energy use of the covered
product. Section 6(b) of the Process Rule.
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\4\ On January 20, 2021, the President issued Executive Order
13990, Protecting Public Health and the Environment and Restoring
Science to Tackle the Climate Crisis. Exec. Order No. 13990, 86 FR
7037 (Jan. 25, 2021) (``E.O. 13990''). E.O. 13990 affirms the
Nation's commitment to empower our workers and communities; promote
and protect our public health and the environment; and conserve our
national treasures and monuments. To that end, the stated policies
of E.O. 13990 include: Improving public health and protecting our
environment; ensuring access to clean air and water; and reducing
greenhouse gas emissions. E.O. 13990 section 1. Section 2 of E.O.
13990 directs agencies, in part, to immediately review all existing
regulations, orders, guidance documents, policies, and any other
similar agency actions (``agency actions'') promulgated, issued, or
adopted between January 20, 2017, and January 20, 2021, that are or
may be inconsistent with, or present obstacles to, the policy set
forth in the Executive Order. E.O. 13990 section 2. In addition,
section 2(iii) of E.O. 13990 specifically directs DOE to, as
appropriate and consistent with applicable law, publishing for
notice and comment a proposed rule suspending, revising, or
rescinding the updated Process Rule. In response to this directive,
DOE has undertaken a review of the updated Process Rule. See, 86 FR
18901 (Apr. 12, 2021) and 86 FR 35668 (July 7, 2021).
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DOE first evaluates the projected energy savings from a potential
maximum technologically feasible (``max-tech'') standard over a 30-year
period against a 0.3 quadrillion British thermal units (``quads'') of
site energy savings 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 product 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, the analysis will end and
DOE will propose to determine that no significant energy savings would
likely result from setting new or amended standards. Section 6(b)(4) of
the Process Rule. If either one of the thresholds is reached, DOE will
conduct analyses to ascertain whether a standard can be prescribed that
produces the maximum improvement in energy efficiency that is both
technologically feasible and economically justified and still
constitutes significant energy savings at the level determined to be
economically justified. Section 6(b)(5) of the Process Rule. This 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.
To determine whether a standard is economically justified, EPCA
requires that DOE determine whether the benefits of the standard exceed
its burdens by considering, to the greatest extent practicable, the
following seven factors:
(1) The economic impact of the standard on the manufacturers and
consumers of the products subject to the standard;
[[Page 53888]]
(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 the standard;
(4) Any lessening of the utility or the performance of the
products likely to result from the standard;
(5) The impact of any lessening of competition, as determined in
writing by the Attorney General, that is likely to result from the
standard;
(6) The need for national energy and water conservation; and
(7) Other factors the Secretary of Energy (Secretary) considers
relevant.
(42 U.S.C. 6295(o)(2)(B)(i)(I)-(VII))
DOE fulfills these and other applicable requirements by conducting
a series of analyses throughout the rulemaking process. Table I.1 shows
the individual analyses that are performed to satisfy each of the
requirements within EPCA.
Table I.1--EPCA Requirements and Corresponding DOE Analysis
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EPCA requirement Corresponding DOE analysis
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Significant Energy Savings............ Shipments Analysis.
National Impact Analysis.
Energy and Water Use Analysis.
Technological Feasibility............. Market and Technology Assessment.
Screening Analysis.
Engineering Analysis.
Economic Justification:
1. Economic impact on Manufacturer Impact Analysis.
manufacturers and consumers.
Life-Cycle Cost and Payback Period Analysis.
Life-Cycle Cost Subgroup Analysis.
Shipments Analysis.
2. Lifetime operating cost savings Markups for Product Price Analysis.
compared to increased cost for
the product.
Energy and Water Use Analysis.
Life-Cycle Cost and Payback Period Analysis.
3. Total projected energy savings. Shipments Analysis.
National Impact Analysis.
4. Impact on utility or Screening Analysis.
performance.
Engineering Analysis.
5. Impact of any lessening of Manufacturer Impact Analysis.
competition.
6. Need for national energy and Shipments Analysis.
water conservation.
National Impact Analysis.
7. Other factors the Secretary Employment Impact Analysis.
considers relevant.
Utility Impact Analysis.
Emissions Analysis.
Monetization of Emission Reductions Benefits.
Regulatory Impact Analysis.
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Further, EPCA establishes a rebuttable presumption that a standard
is economically justified if the Secretary finds that the additional
cost to the consumer of purchasing a product complying with an energy
conservation standard level will be less than three times the value of
the energy savings during the first year that the consumer will receive
as a result of the standard, as calculated under the applicable test
procedure. (42 U.S.C. 6295(o)(2)(B)(iii))
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))
Additionally, EPCA specifies requirements when promulgating an
energy conservation standard for a covered product that has two or more
subcategories. DOE must specify a different standard level for a type
or class of product that has 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 the 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)) DOE's current test procedures for RCWs address
standby mode and off mode energy use. In this rulemaking, DOE intends
to continue to incorporate such energy use into any
[[Page 53889]]
amended energy conservation standards it adopts in the final rule.
Before proposing a standard, DOE typically seeks public input on
the analytical framework, models, and tools that DOE intends to use to
evaluate standards for the product at issue and the results of
preliminary analyses DOE performed for the product.
DOE is examining whether to amend the current standards pursuant to
its obligations under EPCA. This notification announces the
availability of the preliminary technical support document (``TSD''),
which details the preliminary analyses and summarizes the preliminary
results of DOE's analyses. In addition, DOE is announcing a public
meeting to solicit feedback from interested parties on its analytical
framework, models, and preliminary results.
II. Background
A. Current Standards
The current energy conservation standards for RCWs were established
in a direct final rule published on May 31, 2012. 77 FR 32308 (``May
2012 Final Rule'').\5\ These standards are based on a joint proposal
submitted to DOE by interested parties representing manufacturers,
energy and environmental advocates, and consumer groups.\6\
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\5\ DOE published a confirmation of effective date and
compliance date for the direct final rule on October 1, 2012. 77 FR
59719.
\6\ Available at: www.regulations.gov/document/EERE-2008-BT-STD-0019-0032.
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The May 2012 Final Rule established two sets of amended standards,
which are both based on a minimum allowable integrated modified energy
factor (``IMEF''), measured in cubic feet per kilowatt-hour per cycle
(``ft\3\/kWh/cycle''), and maximum allowable integrated water factor
(``IWF''), measured in gallons per cycle per cubic foot (``gal/cycle/
ft\3\''). Id. The May 2012 Final Rule established four classes of RCW:
Top-loading, compact (less than 1.6 cubic feet (``ft\3\'') capacity);
top-loading, standard (1.6 ft\3\ or greater capacity); front-loading,
compact (less than 1.6 ft\3\ capacity); and front-loading, standard
(1.6 ft\3\ or greater capacity). 77 FR 32308, 32316-32320. One set of
amended standards applies to all RCWs manufactured on or after March 7,
2015. 77 FR 32308, 32380. The second set of amended standards applies
to the two top-loading product classes manufactured on or after January
1, 2018. Id.
The current energy conservation standards for RCWs are provided at
10 CFR 430.32(g)(4) and repeated in Table II.1. These standards are
based on the current test procedure for RCWs at 10 CFR part 430,
subpart B, appendix J2 (``Appendix J2'').
Table II.1--Federal Energy Conservation Standards for Residential
Clothes Washers
------------------------------------------------------------------------
Minimum
integrated Maximum
Product class modified energy integrated water
factor (ft\3\/ factor (gal/
kWh/cycle) cycle/ft\3\)
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Top-loading, Compact (less than 1.15 12.0
1.6 ft\3\ capacity)..............
Top-loading, Standard (1.6 ft\3\ 1.57 6.5
or greater capacity).............
Front-loading, Compact (less than 1.13 8.3
1.6 ft\3\ capacity)..............
Front-loading, Standard (1.6 ft\3\ 1.84 4.7
or greater capacity).............
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On December 16, 2020, DOE published a final rule (``December 2020
Final Rule'') establishing separate product classes for top-loading,
standard clothes washers with an average cycle time of less than 30
minutes and front-loading, standard clothes washers with an average
cycle time of less than 45 minutes. 85 FR 81359. DOE is re-evaluating
the analysis in the short-cycle product class determination in light of
Executive Order 13990 and published a NOPR on August 11, 2021,
proposing to revoke the December 2020 Final Rule and reinstate the
prior product classes and applicable standards for RCWs. 86 FR 43970.
B. Current Process
On August 2, 2019, DOE published a request for information
(``RFI'') to initiate an effort to determine whether to amend the
current energy conservation standards for RCWs. 84 FR 37794 (``August
2019 RFI''). Specifically, through the August 2019 RFI, DOE sought data
and information that could enable the agency to determine whether DOE
should propose a ``no new standard'' determination because a more
stringent standard: (1) Would not result in a significant savings of
energy; (2) is not technologically feasible; (3) is not economically
justified; or (4) any combination of foregoing. Id. On August 26, 2019,
DOE extended the comment period for the August 2019 RFI and on October
3, 2019, reopened the comment period for an additional 14 days. 84 FR
44557 and 84 FR 52818, respectively.
Comments received to date as part of the current process have
helped DOE identify and resolve issues related to the preliminary
analyses. Chapter 2 of the preliminary TSD summarizes and addresses the
comments received.
C. Test Procedure
DOE published a test procedure NOPR on September 1, 2021 proposing
to establish a new test procedure at 10 CFR part 430, subpart B,
appendix J (``Appendix J''), which would define new energy efficiency
metrics: An energy efficiency ratio (``EER'') and a water efficiency
ratio (``WER''). 86 FR 49140. As proposed, EER would be defined as the
weighted-average load size in pounds (``lbs'') divided by the sum of
(1) the per-cycle machine energy, (2) the per-cycle water heating
energy, (3) the per-cycle drying energy, and (4) the per-cycle standby
and off mode energy consumption, in kWh. Id. at 86 FR 49172. As
proposed, WER would be defined as the weighted-average load size in lbs
divided by the total weighted per-cycle water consumption for all wash
cycles, in gallons. Id. at 86 FR 49173. For both EER and WER, a higher
value would indicate more efficient performance. Id.
As the basis for this preliminary analysis, DOE used the per-cycle
energy and water consumption values and resulting EER and WER metrics
as determined using the proposed appendix J. In order to assist
interested parties in understanding how the analysis based on the
proposed appendix J metrics compares to performance as measured under
the current appendix J2 test procedure (i.e.,
[[Page 53890]]
how the proposed efficiency levels based on EER and WER metrics align
with the existing IMEF and IWF metrics), DOE has defined each potential
efficiency level according to both sets of efficiency metrics. See
chapter 5 of the preliminary TSD for additional details on the proposed
test procedure.
III. Summary of the Analyses Performed by DOE
For the products covered in this preliminary analysis, DOE
conducted in-depth technical analyses in the following areas: (1)
Engineering; (2) markups to determine product price; (3) energy and
water use; (4) life-cycle cost (``LCC'') and payback period (``PBP'');
and (5) national impacts. The preliminary TSD that presents the
methodology and results of each of these analyses is available at
www.regulations.gov/docket/EERE-2017-BT-STD-0014.
DOE also conducted, and has included in the preliminary TSD,
several other analyses that support the major analyses or are
preliminary analyses that will be expanded if DOE determines that a
NOPR is warranted to propose amended energy conservation standards.
These analyses include: (1) The market and technology assessment; (2)
the screening analysis, which contributes to the engineering analysis;
and (3) the shipments analysis, which contributes to the LCC and PBP
analysis and the national impact analysis (``NIA''). In addition to
these analyses, DOE has begun preliminary work on the manufacturer
impact analysis and has identified the methods to be used for the
consumer subgroup analysis, the emissions analysis, the employment
impact analysis, the regulatory impact analysis, and the utility impact
analysis. DOE will expand on these analyses in the NOPR should one be
issued.
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 general characteristics 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 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 the product.
See chapter 3 of the preliminary TSD for further discussion of the
market and technology assessment.
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 a significant adverse impact on
the utility of the product for 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
utilizes proprietary technology that represents a unique pathway to
achieving a given efficiency level, that technology will not be
considered further due to the potential for monopolistic concerns.
10 CFR part 430, subpart C, appendix A, sections 6(c)(3) and 7(b).
If DOE determines that a technology, or a combination of
technologies, fails to meet one or more of the listed five criteria, it
will be excluded from further consideration in the engineering
analysis.
See chapter 4 of the preliminary TSD for further discussion of the
screening analysis.
C. Engineering Analysis
The purpose of the engineering analysis is to establish the
relationship between the efficiency and cost of RCWs. 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 and design option combinations not
eliminated by the screening analysis. For each analyzed product class,
DOE estimates the manufacturer production cost (``MPC'') for the
baseline as well as higher efficiency levels.
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). As noted in section II.C of this document, the
cost-efficiency curves are presented based on both sets of efficiency
metrics: EER and WER metrics as they would be determined using the
proposed appendix J test procedure, and IMEF and IWF based on the
existing appendix J2 test procedure, to facilitate comparison between
both sets of metrics.
See chapter 5 of the preliminary TSD for additional detail on the
engineering analysis.
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 MPC
estimates derived in the engineering analysis to consumer prices, which
are then used in the LCC and PBP analysis. At each step in the
distribution channel, companies mark up the price of the product to
cover business costs and profit margin.
DOE converts the MPC to the manufacturer selling price (``MSP'') by
applying a manufacturer markup. The MSP is the price the manufacturer
charges its first customer, when selling into the product distribution
channels. The manufacturer markup accounts for manufacturer non-
production costs and profit margin. DOE developed the manufacturer
markup by examining publicly available financial information for
manufacturers of the covered product.
DOE further develops baseline and incremental markups for each
actor in the distribution chain (after the product leaves the
manufacturer). Baseline markups are applied to the price of
[[Page 53891]]
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.\7\
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\7\ 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.
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Chapter 6 of the preliminary TSD provides details on DOE's
development of markups for RCWs. Chapter 12 of the preliminary TSD
provides additional detail on the manufacturer markup.
E. Energy and Water Use Analysis
The purpose of the energy and water use analysis is to determine
the annual energy and water consumption of RCWs at different
efficiencies in representative U.S. single-family homes, multi-family,
and mobile home residences, and to assess the energy and water savings
potential of increased RCW efficiency. The energy and water use
analysis estimates the range of energy and water use of RCWs in the
field (i.e., as they are actually used by consumers). The energy and
water use analysis provides the basis for other analyses DOE performed,
particularly assessments of the energy savings and the savings in
consumer operating costs that could result from adoption of amended or
new standards.
Chapter 7 of the preliminary TSD addresses the energy and water use
analysis.
F. Life-Cycle Cost and Payback Period Analyses
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 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 and water 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 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.
Chapter 8 of the preliminary TSD addresses the LCC and PBP
analyses.
G. National Impact Analysis
The NIA estimates the national energy savings (``NES'') and the net
present value (``NPV'') of total consumer costs and savings expected to
result from amended standards at specific efficiency levels (referred
to as candidate standard levels).\8\ 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. For the
present analysis, DOE projected the energy savings, operating cost
savings, product costs, and NPV of consumer benefits over the lifetime
of RCWs sold from 2027 through 2056.
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\8\ The NIA accounts for impacts in the 50 states and U.S.
territories.
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DOE evaluates the impacts of new or amended standards by comparing
a case without such standards with standards-case projections (``no-
new-standards case''). The no-new-standards case characterizes energy
and water 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 efficiency levels for that class. For each efficiency level,
DOE considers how a given standard would likely affect the market
shares of product with efficiencies greater than the standard.
DOE uses a spreadsheet model to calculate the energy savings and
the national consumer costs and savings from each efficiency level.
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.
Critical inputs to this analysis include shipments projections,
estimated product lifetimes, product installed costs and operating
costs, product annual energy and water consumption, the no-new-
standards case efficiency projection, and discount rates.
DOE estimates a combined total of 1.31 quads of site energy savings
at the max-tech efficiency levels for RCWs. Therefore, DOE has
determined the potential available energy savings for RCWs are more
than the 0.3 quads of site energy threshold established by the Process
Rule and thus are considered significant under EPCA. (42 U.S.C.
6295(o)(3)(B))
Chapter 10 of the preliminary TSD addresses the NIA.
IV. Public Participation
DOE invites public participation in this process through
participation in the webinar and submission of written comments and
information. After the webinar and the closing of the comment period,
DOE will consider all timely-submitted comments and additional
information obtained from interested parties, as well as information
obtained through further analyses. Following such consideration, the
Department will publish either a determination that the standards for
RCWs need not be amended or a NOPR proposing to amend those standards.
The NOPR, should one be issued, would include proposed energy
conservation standards for the products covered by that rulemaking, and
members of the public would be given an opportunity to submit written
and oral comments on the proposed standards.
A. Participation in the Webinar
The time and date of the webinar meeting are listed in the DATES
section at the beginning of this document. Webinar registration
information, participant instructions, and information about the
capabilities available to webinar participants will be published on
DOE's website: www1.eere.energy.gov/buildings/appliance_standards/standards.aspx?productid=68. Participants are responsible for ensuring
their systems are compatible with the webinar software.
B. Procedure for Submitting Prepared General Statements for
Distribution
[[Page 53892]]
Any person who has an interest in the topics addressed in this
document, 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 submit such request
to [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 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. There shall not be discussion of proprietary information,
costs or prices, market share, or other commercial matters regulated by
U.S. anti-trust laws. After the webinar 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 will be conducted in an informal, conference style. DOE
will present summaries of comments received before the webinar, 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. 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 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.
A transcript of the webinar will be included in the docket, which
can be viewed as described in the Docket section at the beginning of
this document. In addition, any person may buy a copy of the transcript
from the transcribing reporter.
D. Submission of Comments
DOE invites all interested parties, regardless of whether they
participate in the public meeting, to submit in writing by December 13,
2021, comments and information on matters addressed in this
notification and on other matters relevant to DOE's consideration of
amended energy conservations standards for RCWs. 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 www.regulations.gov. The
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. If this instruction is followed, 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 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 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 www.regulations.gov before
posting. Normally, comments will be posted within a few days of being
submitted. However, if large volumes of comments are being processed
simultaneously, your comment may not be viewable for up to several
weeks. Please keep the comment tracking number that www.regulations.gov
provides after you have successfully uploaded your comment.
Submitting comments via email. Comments and documents submitted via
email also will be posted to 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. 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. 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
[[Page 53893]]
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 to [email protected] 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. 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).
V. Approval of the Office of the Secretary
The Secretary of Energy has approved publication of this
notification of a webinar and availability of preliminary technical
support document.
Signing Authority
This document of the Department of Energy was signed on September
22, 2021, by Kelly Speakes-Backman, Principal Deputy Assistant
Secretary and Acting 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 September 23, 2021.
Treena V. Garrett,
Federal Register Liaison Officer, U.S. Department of Energy.
[FR Doc. 2021-21021 Filed 9-28-21; 8:45 am]
BILLING CODE 6450-01-P