[Federal Register Volume 86, Number 223 (Tuesday, November 23, 2021)]
[Rules and Regulations]
[Pages 66403-66424]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-25537]



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 Rules and Regulations
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  Federal Register / Vol. 86, No. 223 / Tuesday, November 23, 2021 / 
Rules and Regulations  

[[Page 66403]]



DEPARTMENT OF ENERGY

10 CFR Part 430

[EERE-2019-BT-STD-0002]
RIN 1904-AE31


Energy Conservation Program: Energy Conservation Standards for 
Direct Heating Equipment

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

ACTION: Final determination.

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

SUMMARY: The Energy Policy and Conservation Act, as amended (``EPCA''), 
prescribes energy conservation standards for various consumer products, 
including direct heating equipment (``DHE''). EPCA also requires the 
U.S. Department of Energy (``DOE'') to periodically determine whether 
more-stringent, amended standards would be technologically feasible and 
economically justified, and would result in significant energy savings. 
After carefully considering the available market and technical 
information for these products, DOE has concluded in this document that 
the technology options, product cost, and energy use have not changed 
significantly, and that the market for DHE (i.e., number of models 
available and annual shipments) has decreased since DOE's prior 
determination that the energy conservation standards do not need to be 
amended. As such, DOE has determined that amended energy conservation 
standards are not warranted.

DATES: The effective date of this final determination is December 23, 
2021.

ADDRESSES: The docket for this activity, which includes Federal 
Register notices, public meeting attendee lists and transcripts, 
comments, and other supporting documents/materials, is available for 
review at www.regulations.gov. All documents in the docket are listed 
in the www.regulations.gov index. However, some documents listed in the 
index, such as information that is exempt from public disclosure, may 
not be publicly available.
    The docket web page can be found at www.regulations.gov/document?D=EERE-2019-BT-STD-0002. The docket web page contains 
instructions on how to access all documents, including public comments, 
in the docket.
    For further information on how to review the docket, contact the 
Appliance and Equipment Standards Program staff at (202) 287-1445 or by 
email: [email protected].

FOR FURTHER INFORMATION CONTACT: 
    Ms. Julia Hegarty, 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: 
(240) 597-6737. Email: [email protected].
    Ms. Linda Field, U.S. Department of Energy, Office of the General 
Counsel, GC-62, 1000 Independence Avenue SW, Washington, DC 20585-0121. 
Telephone: (202) 586-3440. Email: [email protected].

SUPPLEMENTARY INFORMATION:

Table of Contents

I. Synopsis of the Final Determination
II. Authority and Background
    A. Authority
    B. Rulemaking History
     1. Current Standards
     2. October 2016 Final Determination
    a. Unvented Heaters
    b. Vented Heaters
    3. Current Rulemaking
III. General Discussion
    A. Product Classes and Scope of Coverage
     1. Scope of Coverage and Definitions
    a. Unvented Heaters
    b. Vented Heaters
     2. Product Classes
     3. Hearth Heaters
    B. Analysis for This Final Determination
     1. Overview of the Analysis
    a. Technological Feasibility
    b. Energy Savings
    c. Cost-Effectiveness
    d. Further Considerations
    2. Unvented Heaters
     3. Vented Heaters
    a. Market Assessment
    b. Technology Options for Efficiency Improvement
    c. Screening Analysis
    d. Engineering Analysis
    e. Energy Use Analysis
    f. Life-Cycle Cost and Payback Period Analysis
    g. Shipments
    h. National Energy Savings
    i. Manufacturer Impacts
    C. Final Determination
    1. Unvented Heaters
    2. Vented Heaters
    a. Technological Feasibility
    b. Cost-Effectiveness
    c. Significant Energy Savings
    d. Further Considerations
    e. Standby Mode and Off Mode
    f. Summary
IV. Procedural Issues and Regulatory Review
    A. Review Under Executive Order 12866
    B. Review Under the Regulatory Flexibility Act
    C. Review Under the Paperwork Reduction Act
    D. Review Under the National Environmental Policy Act of 1969
    E. Review Under Executive Order 13132
    F. Review Under Executive Order 12988
    G. Review Under the Unfunded Mandates Reform Act of 1995
    H. Review Under the Treasury and General Government 
Appropriations Act, 1999
    I. Review Under Executive Order 12630
    J. Review Under the Treasury and General Government 
Appropriations Act, 2001
    K. Review Under Executive Order 13211
    L. Information Quality
V. Approval of the Office of the Secretary

I. Synopsis of the Final 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 direct heating equipment, the 
subject of this final determination. (42 U.S.C. 6292(a)(9))
---------------------------------------------------------------------------

    \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 the Energy Act of 2020, Public Law 116-260 (Dec. 
27, 2020).
---------------------------------------------------------------------------

    DOE is issuing this final determination pursuant to the EPCA 
requirement that not later than 3 years after issuance of a final 
determination not to amend standards, 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)(3)(B))
    ``Direct heating equipment'' is defined at 10 Code of Federal 
Regulations (``CFR'') 430.2 as vented home heating

[[Page 66404]]

equipment and unvented home heating equipment (i.e., ``vented heaters'' 
and ``unvented heaters,'' respectively). ``Vented home heating 
equipment'' and ``unvented home heating equipment'' are also defined at 
10 CFR 430.2 in which, vented home heating equipment or vented heater 
means a class of home heating equipment, not including furnaces, 
designed to furnish warmed air to the living space of a residence, 
directly from the device, without duct connections (except that boots 
not to exceed 10 inches beyond the casing may be permitted) and 
includes: Vented wall furnace, vented floor furnace, and vented room 
heater. Whereby, unvented home heating equipment means a class of home 
heating equipment, not including furnaces, used for the purpose of 
furnishing heat to a space proximate to such heater directly from the 
heater and without duct connections and includes electric heaters and 
unvented gas and oil heaters. Federal energy conservation standards at 
10 CFR 430.32(i) currently exist for vented home heating equipment, but 
there are currently no standards for unvented home heating equipment.
    For this final determination, DOE evaluated whether energy 
conservation standards should be proposed for unvented heaters. In 
addition, DOE analyzed vented heaters subject to the standards 
specified in 10 CFR 430.32(i).
    For unvented home heating equipment, DOE has previously determined 
that unvented heaters have minimal potential for energy savings, as 
they are installed within a conditioned space and all waste heat will 
be transferred to the conditioned space. 75 FR 20112, 20130 (April 16, 
2010). Further, the test procedure only includes test methods for 
annual energy consumption for primary electric heaters and rated output 
for all unvented heaters and does not include a test method or metric 
for energy efficiency. See 10 CFR part 430 subpart B appendix G.
    For vented home heating equipment, DOE analyzed the current vented 
heater market and compared it to the market during the previous 
rulemakings. DOE found that the number of shipments have reduced since 
these previous rulemakings and that the available technology options 
and efficiency levels have not changed significantly. In those earlier 
rulemakings, DOE found that while some efficiency levels were 
technologically feasible, they were not economically justified. DOE 
also examined the energy use of the vented heaters considered in the 
previous rulemakings.
    Based on the results of these analyses, as summarized and explained 
in section III of this document, DOE has determined that energy 
conservation standards for unvented heaters are not warranted due to 
insignificant potential energy savings. Similarly, DOE has determined 
that amended energy conservation standards for vented heaters are not 
warranted due to the lack of changes in the market for these products 
since DOE's prior determination that the applicable energy conservation 
standards do not need to be amended. Consequently, DOE has determined 
to take no further action vis-[agrave]-vis the energy conservation 
standards for DHE at this time.

II. Authority and Background

    The following section briefly discusses the statutory authority 
underlying this final determination, as well as some of the historical 
background relevant to the establishment of energy conservation 
standards for unvented home heating equipment and vented home heating 
equipment.

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 DHE which is 
the subject of this document. (42 U.S.C. 6292(a)(9)) EPCA prescribed 
energy conservation standards for these products (42 U.S.C. 
6295(e)(3)), and directs DOE to conduct future rulemakings to determine 
whether to amend these standards. (42 U.S.C. 6295(e)(4))
    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 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 unvented home heating equipment and vented home 
heating equipment, subsets of DHE, appear at 10 CFR part 430, subpart 
B, appendix G (``Appendix G'') and appendix O (``Appendix O''), 
respectively.
    Federal energy efficiency requirements 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 under 
EPCA. (See 42 U.S.C. 6297(d))
    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)) In 
this analysis, DOE considers such energy use in its final determination 
not to amend energy conservation standards.
    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. 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

[[Page 66405]]

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)) 
DOE must make the analysis on which the 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, 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 standard 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 
product in the type (or class) compared to any increase in the price, 
initial charges, or maintenance expenses for the covered product 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))
    A NOPR including new proposed standards, must be based on the 
criteria established under 42 U.S.C. 6295(o). (42 U.S.C. 6295(m)(1)(B)) 
The criteria in 42 U.S.C. 6295(o) require that standards be designed to 
achieve the maximum improvement in energy efficiency, which the 
Secretary determines is technologically feasible and economically 
justified, and they must result in significant conservation of energy. 
(42 U.S.C. 6295(o)(2)(A) and 42 U.S.C. 6295(o)(3)(B)) In deciding 
whether a proposed standard is economically justified, DOE must 
determine, after receiving public comment, 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 the standard;
    (4) Any lessening of the utility or the performance of the 
covered 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 is publishing this final determination in satisfaction of the 
three-year review requirement in EPCA.

B. Rulemaking History

    The National Appliance Energy Conservation Act of 1987 (``NAECA''), 
Public Law 100-12, amended EPCA to include the initial energy 
conservation standards for DHE--limited to gas DHE only--which were 
based on annual fuel utilization efficiency (``AFUE''). NAECA 
established separate standards for ``wall fan type,'' ``wall gravity 
type,'' ``floor,'' and ``room'' DHE, further divided by input 
capacity.\3\ (42 U.S.C. 6295(e)(3))
---------------------------------------------------------------------------

    \3\ DOE defines ``direct heating equipment'' as vented home 
heating equipment and unvented home heating equipment. 10 CFR 430.2. 
For the purpose of the energy conservation standards, DOE further 
delineates vented home heating equipment as ``gas wall fan type,'' 
``gas wall gravity type,'' ``gas floor,'' and ``gas room,'' and then 
further divides product classes by input capacity. 10 CFR 430.32(i).
---------------------------------------------------------------------------

    DOE codified the statutory standards for gas DHE into the CFR in a 
final rule published February 7, 1989 (``February 1989 final rule''). 
54 FR 6062. Pursuant to the requirements in EPCA (42 U.S.C. 
6295(e)(4)), DOE conducted two cycles of rulemaking for DHE to 
determine whether to amend these standards. DOE published a final rule 
concluding the first round of rulemaking on April 16, 2010 (75 FR 20112 
(``April 2010 final rule'')), and the Department published a final rule 
concluding the second round on October 17, 2016 (81 FR 71325 (``October 
2016 final determination'')).
1. Current Standards
    In the April 2010 final rule, DOE prescribed the current energy 
conservation standards for gas vented home heating equipment 
manufactured on and after April 16, 2013. 75 FR 20112, 20234-20235 
(April 16, 2010). These standards are set forth in DOE's regulations at 
10 CFR 430.32(i)(2) and repeated in Table II.1 of this document. There 
are currently no standards for unvented home heating equipment.

             Table II.1--Federal Energy Conservation Standards for Gas Vented Home Heating Equipment
----------------------------------------------------------------------------------------------------------------
                DHE type                     Heat circulation type         Input rate, Btu/h      AFUE,  percent
----------------------------------------------------------------------------------------------------------------
Wall....................................  Fan Type..................  <=42,000..................              75
                                                                      >42,000...................              76
                                          Gravity Type..............  <=27,000..................              65
                                                                      >27,000 and <=46,000......              66
                                                                      >46,000...................              67
Floor...................................  All.......................  <=37,000..................              57
                                                                      >37,000...................              58
Room....................................  All.......................  <=20,000..................              61
                                                                      >20,000 and <=27,000......              66
                                                                      >27,000 and <=46,000......              67
                                                                      >46,000...................              68
----------------------------------------------------------------------------------------------------------------


[[Page 66406]]

2. October 2016 Final Determination
a. Unvented Heaters
    In the October 2016 final determination, DOE concluded that energy 
conservation standards for unvented heaters would result in negligible 
energy savings. 81 FR 71325, 71327 (Oct. 17, 2016). DOE also explained 
that the test procedure for unvented heaters in Appendix G, includes a 
calculation of annual energy consumption based on a single assignment 
of active mode hours for unvented heaters that are used as the primary 
heating source for the home. Id. at 81 FR 71328. For unvented heaters 
that are not used as the primary heating source for the home, there are 
no provisions for calculating either the energy efficiency or annual 
energy consumption. Id. DOE further explained that pursuant to 42 
U.S.C. 6295(o)(3), DOE is prohibited from prescribing a new or amended 
standard for a covered consumer product if a test procedure has not 
been prescribed for that consumer product, and as such, DOE could not 
consider standards for these products at that time. Id.
b. Vented Heaters
    In the October 2016 final determination, DOE found that few changes 
to the industry and product offerings had occurred since the April 2010 
final rule, and, therefore, the conclusions presented in that final 
rule were still valid. 81 FR 71325, 71327-71328 (Oct. 17, 2016). For 
the October 2016 final determination, DOE reviewed the vented heater 
market, including product literature and product listings in the DOE 
Compliance Certification Management System (``CCMS'') database and the 
Air-Conditioning, Heating, and Refrigeration Institute (``AHRI'') 
product directory.\4\ Id. at 81 FR 71327. DOE found that the number of 
models offered in each of the vented heater product classes had 
decreased overall since the April 2010 final rule, and the agency 
concluded that this finding supported the notion that the vented heater 
market was shrinking and that product lines were mainly maintained as 
replacements for existing vented heater units, and that new product 
lines generally were not being developed. Id.
---------------------------------------------------------------------------

    \4\ The AHRI directory for DHE can be found at: 
www.ahridirectory.org/NewSearch?programId=23&searchTypeId=3 (Last 
accessed for the October 2016 final determination on July 16, 2015). 
The DOE CCMS database can be found at: www.regulations.doe.gov/certification-data/CCMS-4-Direct_Heating_Equipment.html#q=Product_Group_s%3A%22Direct%20Heating%20Equipment%22 (Last accessed for the October 2016 final 
determination on July 16, 2015).
---------------------------------------------------------------------------

    For the October 2016 final determination DOE also examined 
available technologies used to improve the efficiency of vented 
heaters. DOE analyzed products on the market at the time through 
product teardowns and engaged in manufacturer interviews to obtain 
further information in support of its analysis. 81 FR 71325, 71327 
(Oct. 17, 2016). Most of the technology options on the market and 
evaluated for the October 2016 final determination (i.e., improved heat 
exchanger, induced draft, electronic ignition, and a two-speed blower 
for gas wall fan type vented heaters) were those considered as part of 
the vented heater rulemaking analysis for the April 2010 final rule. 
Id. DOE determined that the technology options available for vented 
heaters were likely to have limited potential for achieving energy 
savings.\5\ Id. Furthermore, DOE concluded that the costs of technology 
options would likely be similar or higher than in the previous 
rulemaking analysis due to reduced shipments and, therefore, reduced 
purchasing power of vented heater manufacturers. Id. DOE also evaluated 
condensing technology for gas wall fan type vented heaters, which had 
become available after the April 2010 final rule, and, therefore, was 
not evaluated as part of that rulemaking. Id. DOE concluded that this 
technology option would not be economically justified when analyzed for 
the Nation as a whole due to the significant increase in initial 
product cost for products using this technology and the potential for 
severe manufacturer impacts due to the necessary capital conversion 
costs if an energy conservation standard were adopted at this level. 
Id. at 81 FR 71327-71328.
---------------------------------------------------------------------------

    \5\ DOE noted that for gas room vented heaters with input 
capacity up to 20,000 Btu/h, the maximum AFUE available on the 
market increased from 59 percent in 2009 (only one unit at this 
input capacity was available on the market at that time) to 71 
percent in 2015. DOE found that this was due to heat exchanger 
improvements only because these units do not use electricity. Due to 
the small input capacity, DOE found that this increase in AFUE 
(based on heat exchanger improvements relative to input capacity) 
was not representative of or feasible for the other gas room vented 
heater product classes.
---------------------------------------------------------------------------

    DOE acknowledged that the vented heater industry had seen further 
consolidation since the April 2010 final rule, with the total number of 
manufacturers declining from six to four. Id. at 81 FR 71328. 
Furthermore, according to manufacturers,\6\ shipments further decreased 
since the April 2010 final rule, and, therefore, it would be more 
difficult for manufacturers to recover capital expenditures resulting 
from increased standards. Id. DOE acknowledged that vented heater units 
continue to be produced primarily as replacements and that the market 
is small, and expected that shipments would continue to decrease and 
amended standards would likely accelerate the trend of declining 
shipments. Id. Moreover, DOE anticipated that small business impacts 
resulting from amended standards could be significant, as two of the 
four remaining manufacturers subject to vented heater standards were 
small businesses. Id.
---------------------------------------------------------------------------

    \6\ Information obtained during confidential manufacturer 
interviews.
---------------------------------------------------------------------------

    DOE concluded in the October 2016 final determination that due to 
the lack of advancement in the vented heater industry since the April 
2010 final rule in terms of product offerings, available technology 
options and associated costs, and declining shipment volumes, amending 
the vented heater energy conservation standards would impose a 
substantial burden on manufacturers of vented heaters, particularly to 
small manufacturers. 81 FR 71325, 71328 (Oct. 17, 2016). DOE noted that 
it had rejected higher TSLs for vented heaters in the April 2010 final 
rule due to significant impacts on industry profitability, risks of 
accelerated industry consolidation, and the likelihood that small 
manufacturers would experience disproportionate impacts that could lead 
them to discontinue product lines or exit the market altogether, and 
the Department stated that the market and the manufacturers' 
circumstances at the time were similar to when DOE evaluated amended 
energy conservation standards for vented heaters for the April 2010 
final rule. Id. at 81 FR 71328-71329. Accordingly, DOE concluded that 
amended energy conservation standards for vented heaters were not 
economically justified at any level above the current standard levels 
because benefits of more-stringent standards would not outweigh the 
burdens, and the Department determined not to amend the vented heater 
energy conservation standards. Id. at 81 FR 71329.
    In the October 2016 final determination, DOE also considered 
whether to establish energy conservation standards for standby mode and 
off mode electrical energy use, noting that fossil fuel energy use in 
standby mode and off mode is already included in the AFUE metric and 
that electric standby mode and off mode energy use is small in 
comparison to fossil fuel energy use. Id. Given that the

[[Page 66407]]

standards for vented heaters were not amended, DOE concluded it was not 
required under EPCA to adopt amended standards which include standby 
mode and off mode energy use, and due to the relatively small potential 
for energy savings, DOE declined to do so. Id.
3. Current Rulemaking
    On February 26, 2019, DOE published a request for information 
(``RFI'') (``February 2019 RFI'') to solicit information from the 
public to help DOE determine whether amended standards for DHE would 
result in significant energy savings and whether such standards would 
be technologically feasible and economically justified. 84 FR 6095.
    On December 1, 2020, DOE published a notice of proposed 
determination (``NOPD'') (``December 2020 NOPD'') to not amend its 
energy conservation standards for DHE. 85 FR 77017. DOE estimated that 
for gas wall fan type vented heaters, gas wall gravity type vented 
heaters, and gas room vented heaters, potential site energy savings at 
due to more-stringent standards at the maximum technologically feasible 
(``max-tech'') TSL would be 0.13 quadrillion Btus (``quads''), a 
reduction of 6 percent in site energy use. Thus, DOE tentatively 
concluded in the December 2020 NOPD that more-stringent standards for 
DHE would not save a significant amount of energy. Id. at 85 FR 77037. 
Additionally, for these product classes, DOE tentatively determined 
that the potential benefits from amended standards would be outweighed 
by burdens on manufacturers, thereby tentatively concluding that 
amended standards would not be economically justified. Id. at 85 FR 
77038. Further, DOE tentatively concluded in the December 2020 NOPD 
that more-stringent standards for gas floor vented heaters were not 
technologically feasible, and that amended standards for these products 
are not needed. Id. In this final determination, DOE finalizes its 
proposed determination from the December 2020 NOPD.

III. General Discussion

    DOE developed this final determination after a review of the DHE 
market, including product literature and product listings in the DOE 
CCMS database and the AHRI product directory. DOE also considered 
written comments, data, and information from interested parties that 
represent a variety of interests. In response to the December 2020 
NOPD, DOE received seven substantive comments from interested parties, 
which are listed in Table III.1 of this document. DOE also received 
comments from three stakeholders during a webinar held on January 25, 
2021 which discussed the analysis presented in the December 2020 NOPD. 
This notice addresses issues raised by these commenters.

          Table III.1--Interested Parties Providing Written or Oral Response to the December 2020 NOPD
----------------------------------------------------------------------------------------------------------------
                                                                                            Written      Oral
               Name(s)                    Commenter  type *              Acronym            comment     comment
----------------------------------------------------------------------------------------------------------------
Abby Spotswood.......................  I                        Ms. Spotswood...........          X   ..........
Air-conditioning, Heating, and         TA                       AHRI....................          X   ..........
 Refrigeration Institute.
American Public Gas Association        U                        Joint Gas Utilities.....          X   ..........
 (``APGA'') and the American Gas
 Association (``AGA'').
Appliance Standards Awareness Project  EA                       Joint Advocates.........          X   ..........
 (``ASAP''), American Council for an
 Energy-Efficient Economy
 (``ACEEE''), and Natural Resources
 Defense Council (``NRDC'').
Association of Home Appliance          TA                       AHAM....................          X   ..........
 Manufacturers.
Flux Tailor LLC......................  UC                       Flux Tailor.............  ..........          X
Northwest Energy Efficiency Alliance.  EA                       NEEA....................          X           X
Pacific Gas and Electric (``PG&E''),   U                        CA IOUs.................          X           X
 Southern California Edison
 (``SCE''), San Diego Gas and
 Electric (``SDG&E'') (i.e.,
 California Investor-Owned Utilities).
----------------------------------------------------------------------------------------------------------------
* EA: Efficiency/Environmental Advocate; I: Individual; TA: Trade Association; U: Utility or Utility Trade
  Association; UC: Utility Consultant.

    A parenthetical reference at the end of a comment quotation or 
paraphrase provides the location of the item in the public docket.\7\
---------------------------------------------------------------------------

    \7\ The parenthetical reference provides a reference for 
information located in the docket of DOE's rulemaking to consider 
amended energy conservation standards for DHE. (Docket No. EERE-
2019-BT-STD-0002, which is maintained at www.regulations.gov/docket?D=EERE-2019-BT-STD-0002). The references are arranged as 
follows: (commenter name, comment docket ID number, page of that 
document).
---------------------------------------------------------------------------

A. Product Classes and Scope of Coverage

    When evaluating and establishing new or amended energy conservation 
standards, DOE divides covered products into product classes (or types) 
based on a specified level of energy used or by capacity or other 
performance-related features that justify differing standards. (42 
U.S.C. 6295(q)) 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. Id. The scope of coverage is discussed in 
further detail in section III.A.1 of this document. The product classes 
for this final determination are discussed in further detail in section 
III.A.2 of this document.
1. Scope of Coverage and Definitions
    This final determination covers those products that meet the 
definitions of ``direct heating equipment,'' which is defined as vented 
home heating equipment and unvented home heating equipment. 10 CFR 
430.2. ``Home heating equipment, not including furnaces'' likewise 
means vented home heating equipment and unvented home heating 
equipment. Id. The existing energy conservation standards at 10 CFR 
430.32(i)(2) apply only to product classes of vented home heating 
equipment. There are no existing energy conservation standards for 
unvented home heating equipment.
a. Unvented Heaters
    Unvented heaters are those products that meet the definition for 
``unvented home heating equipment,'' as codified at 10 CFR 430.2. Under 
that provision, ``Unvented home heating equipment'' means a class of 
home heating equipment, not including furnaces, used for the purpose of 
furnishing heat to a space proximate to such heater directly from the 
heater and without duct connections and includes electric heaters and 
unvented gas and oil heaters. DOE further defines the various

[[Page 66408]]

sub-types of unvented heaters at 10 CFR 430.2 as follows:

    (1) ``Baseboard electric heater'' means an electric heater which 
is intended to be recessed in or surface mounted on walls at floor 
level, which is characterized by long, low physical dimensions, and 
which transfers heat by natural convection and/or radiation.
    (2) ``Ceiling electric heater'' means an electric heater which 
is intended to be recessed in, surface mounted on, or hung from a 
ceiling, and which transfers heat by radiation and/or convection 
(either natural or forced).
    (3) ``Electric heater'' means an electric appliance in which 
heat is generated from electrical energy and dissipated by 
convection and radiation and includes baseboard electric heaters, 
ceiling electric heaters, floor electric heaters, portable electric 
heaters, and wall electric heaters.
    (4) ``Floor electric heater'' means an electric heater which is 
intended to be recessed in a floor, and which transfers by radiation 
and/or convection (either natural or forced).
    (5) ``Portable electric heater'' means an electric heater which 
is intended to stand unsupported, and can be moved from place to 
place within a structure. It is connected to electric supply by 
means of a cord and plug, and transfers heat by radiation and/or 
convention (either natural or forced).
    (6) ``Primary heater'' means a heating device that is the 
principal source of heat for a structure and includes baseboard 
electric heaters, ceiling electric heaters, and wall electric 
heaters.
    (7) ``Supplementary heater'' means a heating device that 
provides heat to a space in addition to that which is supplied by a 
primary heater. Supplementary heaters include portable electric 
heaters.
    (8) ``Unvented gas heater'' means an unvented, self-contained, 
free-standing, non-recessed gas-burning appliance which furnishes 
warm air by gravity or fan circulation.
    (9) ``Unvented oil heater'' means an unvented, self-contained, 
free-standing, non-recessed oil-burning appliance which furnishes 
warm air by gravity or fan circulation.
    (10) ``Wall electric heater'' means an electric heater 
(excluding baseboard electric heaters) which is intended to be 
recessed in or surface mounted on walls, which transfers heat by 
radiation and/or convection (either natural or forced) and which 
includes forced convectors, natural convectors, radiant heaters, 
high wall or valance heaters.

    DOE received no recommended changes to the unvented heater 
definitions in response to the December 2020 NOPD and is not amending 
these definitions in this final determination.
b. Vented Heaters
    Vented heaters are those products that meet the definitions for 
``vented home heating equipment,'' as codified at 10 CFR 430.2. Under 
that provision, ``vented home heating equipment'' or ``vented heater'' 
means a class of home heating equipment, not including furnaces, 
designed to furnish warmed air to the living space of a residence, 
directly from the device, without duct connections (except that boots 
not to exceed 10 inches beyond the casing may be permitted) and 
includes: Vented wall furnace, vented floor furnace, and vented room 
heater. DOE further defines the various sub-types of vented heaters at 
10 CFR 430.2 as follows:

    (1) ``Vented floor furnace'' means a self-contained vented 
heater suspended from the floor of the space being heated, taking 
air for combustion from outside this space. The vented floor furnace 
supplies heated air circulated by gravity or by a fan directly into 
the space to be heated through openings in the casing.
    (2) ``Vented room heater'' means a self-contained, free 
standing, non-recessed, vented heater for furnishing warmed air to 
the space in which it is installed. The vented room heater supplies 
heated air circulated by gravity or by a fan directly into the space 
to be heated through openings in the casing.
    (3) ``Vented wall furnace'' means a self-contained vented heater 
complete with grilles or the equivalent, designed for incorporation 
in, or permanent attachment to, a wall of a residence and furnishing 
heated air circulated by gravity or by a fan directly into the space 
to be heated through openings in the casing.

    DOE received no recommended changes to the vented heater 
definitions in response to the December 2020 NOPD and is not amending 
these definitions in this final determination.
2. Product Classes
    In general, when evaluating and establishing energy conservation 
standards, DOE divides the covered product into classes (or types) 
based on the level of energy used, the capacity, or other performance-
related feature that justifies a different standard. (42 U.S.C. 
6295(q)) In making a determination whether capacity or another 
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 deems appropriate. Id.
    For vented heaters, the current energy conservation standards 
specified in 10 CFR 430.32(i)(2) are based on 11 product classes 
divided by DHE type (i.e., gas wall, gas floor, or gas room), heat 
circulation type (i.e., fan type or gravity type), and input capacity. 
Table III.2 lists the current product classes for vented heaters.

           Table III.2--Current Vented Heater Product Classes
------------------------------------------------------------------------
                                Heat circulation
          DHE type                    type            Input rate, Btu/h
------------------------------------------------------------------------
Gas Wall....................  Fan Type............  <=42,000.
                                                    >42,000.
                              Gravity Type........  <=27,000.
                                                    >27,000 and
                                                     <=46,000.
                                                    >46,000.
Gas Floor...................  All.................  <=37,000.
                                                    >37,000.
Gas Room....................  All.................  <=20,000.
                                                    >20,000 and
                                                     <=27,000.
                                                    >27,000 and
                                                     <=46,000.
                                                    >46,000.
------------------------------------------------------------------------

    In response to the December 2020 NOPD, NEEA stated that gas wall 
gravity type vented heaters do not provide a unique consumer utility 
and therefore do not warrant a separate product class from gas wall fan 
type vented heaters. (NEEA, No. 20 at p. 2) NEEA further stated that 
although some gas wall gravity type vented heaters do not require 
electricity, while all gas wall fan type vented heaters do, this is not 
a distinguishing factor since some gas wall gravity type vented heater 
models require electricity to operate. (NEEA, No. 20 at p. 2) Gas wall 
fan and gravity type vented heaters are separated into different 
product classes in the current energy conservation standards. As 
discussed, EPCA requires DOE to consider product classes when 
prescribing energy conservation

[[Page 66409]]

standards. (42 U.S.C. 6295(q)) Because DOE is not prescribing new or 
amended standards for DHE, it is not amending the product classes for 
these products.
3. Hearth Heaters
    In comments to the December 2020 final rule, the Joint Advocates 
and NEEA referenced DOE's prior analysis of hearth products and 
recommended the elimination of standing pilot lights. (Joint Advocates, 
No. 16 at p. 1; NEEA, No. 20 at p. 2) DOE clarifies that while hearth 
heaters are direct heating equipment per the definition in 10 CFR 
430.2, such products were not considered in the context of this 
determination and such products are not subject to the standards for 
direct heating equipment at 10 CFR 430.32(i).
    In the NOPR that preceded the April 2010 final rule, DOE proposed 
that its test procedures for vented DHE (i.e., Appendix O) be applied 
to establish the efficiencies of vented gas hearth DHE. 74 FR 65852, 
65861 (Dec. 11, 2009; ``December 2009 NOPR''). DOE described vented 
hearth products as including gas-fired products such as fireplaces, 
fireplace inserts, stoves, and log sets that typically include 
aesthetic features such as a yellow flame, and stated that consumers 
typically purchase these products to add aesthetic qualities and 
ambiance to a room, and the products also provide space heating. 74 FR 
65852, 65866. DOE stated that ``vented hearth products'' meet DOE's 
definition of ``vented home heating equipment,'' because they are 
designed to furnish warmed air to the living space of a residence 
without duct connections. Id. DOE proposed to establish standards for 
such products. Id.
    In the April 2010 final rule DOE concluded that vented hearth 
products as described December 2009 NOPR meet the definition of 
``vented home heating equipment.'' 75 FR 20112, 20128. DOE also adopted 
a definition of ``vented hearth heater'' different from that proposed 
in that, among other changes, removed explicit reference to fireplace 
heaters and included a maximum capacity threshold to distinguish vented 
hearth heaters from purely decorative heaters excluded from DOE's 
regulations. 75 FR 20112, 20130.
    Following the April 2010 final rule, the Hearth, Patio & Barbecue 
Association (``HPBA'') challenged DOE in the United States Court of 
Appeals for the District of Columbia Circuit (``D.C. Circuit'') to 
invalidate the April 2010 final rule and an amendment to that rule 
published on November 18, 2011 (76 FR 71836; ``November 2011 final 
rule'') \8\ as those rules pertained to vented gas hearth products. 
Hearth, Patio & Barbecue Association v. Department of Energy, et al., 
No. 10-1113 (D.C. Cir. filed July 1, 2010). On February 8, 2013, the 
Court ruled that DOE had improperly covered decorative fireplaces in 
the definition of ``vented hearth heater'' as established in the April 
2010 final rule and amended in the November 2011 final rule. Hearth, 
Patio & Barbecue Association v. Department of Energy, et al., 706 F.3d 
499 (D.C. Cir. 2013). The Court held that the phrase ``vented hearth 
heater'' did not encompass decorative fireplaces as that term is 
traditionally understood, vacated the entire statutory definition of 
``vented hearth heater'' and remanded for DOE to interpret the 
challenged provisions consistent with the court's opinion. Id. at 509. 
On July 29, 2014, DOE published a final rule amending the relevant 
portions of its regulation to reflect the Court's decision to vacate 
the regulatory definition of ``vented hearth heater'' (and by 
implication, the associated energy conservation standards). 79 FR 
43927.
---------------------------------------------------------------------------

    \8\ In the November 2011 final rule DOE amended the definition 
of ``vented hearth heater,'' to clarify the scope of the current 
exclusion for those vented hearth heaters that are primarily 
decorative hearth products by shifting the focus from a maximum 
input capacity limitation (i.e., 9,000 Btu/h) to a number of other 
factors, including the absence of a standing pilot light or other 
continuously-burning ignition source. Id.
---------------------------------------------------------------------------

    On December 31, 2013, DOE published a proposed determination of 
coverage for hearth products. 78 FR 79638 (``December 2013 NOPD''). DOE 
stated that hearth products are gas-fired equipment that provide space 
heating and/or provide an aesthetic appeal to the living space. 78 FR 
79638, 79639. DOE also stated vented hearth heaters are no longer 
covered products as a result of the Court ruling. On February 9, 2015, 
DOE published a NOPR proposing energy conservation standards for hearth 
products. 80 FR 7082. This NOPR covered both vented and unvented (vent-
less) hearth products. Id. at 80 FR 7088-7089. On March 31, 2017, DOE 
withdrew the December 2013 NOPD \9\ in the bi-annual publication of the 
DOE Regulatory Agenda.\10\ On further consideration, DOE believes that 
it was overly broad in its discussing the Court's holding in the 
context of hearth heaters. Given that hearth heaters (vented or 
unvented) provide space heating and classifying hearth heaters as 
vented or unvented (as applicable) home heating equipment would be 
consistent with the Court's opinion. See 706 F.3d 499, 505. As 
discussed, currently there are not energy conservation standards for 
such products and such products were not considered in the analysis of 
whether the existing standards for vented and unvented home heating 
equipment should be amended. To the extent DOE considers energy 
conservation standards for hearth heaters, it intends to do so in a 
separate rulemaking.
---------------------------------------------------------------------------

    \9\ Withdrawal of the December 2013 NOPD also withdraws the 
February 2016 NOPR.
    \10\ Past publications of DOE's Regulatory Agenda can be found 
at: https://resources.regulations.gov/public/component/main.
---------------------------------------------------------------------------

B. Analysis for This Final Determination

1. Overview of the Analysis
    As stated previously, in determining that amended standards are not 
needed, DOE must consider whether amended standards would result in 
significant conservation of energy, are technologically feasible, and 
are cost-effective as described in 42 U.S.C. 6295(o)(2)(B)(i)(II). (42 
U.S.C. 6295(m)(1)(A) and 42 U.S.C. 6295(n)(2)). An evaluation of cost-
effectiveness under 42 U.S.C. 6295(o)(2)(B)(i)(II) requires that DOE 
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)) Before potential 
energy savings and cost-effectiveness of amended standards can be 
estimated, available and working prototype technologies with the 
potential to improve energy efficiency must first be evaluated. 
Accordingly, DOE generally starts with this technology evaluation.
a. Technological Feasibility
    In evaluating potential amendments to energy conservation 
standards, DOE first conducts a market and technology assessment to 
survey the products currently available on the market and identify 
technology options (including prototype technologies) that could 
improve the efficiency of the products or equipment that are the 
subject of the rulemaking. DOE then conducts a screening analysis for 
the technologies identified, and, as a first step, determines which of 
those means for improving efficiency are technologically feasible. DOE 
considers technologies incorporated in commercially-available products 
or in working prototypes to be technologically feasible. 10 CFR part 
430, subpart C, appendix A, sections 6(a)(3)(iii)(A) and 7(b)(1) 
(``Process Rule'').

[[Page 66410]]

    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(a)(3)(iii)(B)-(E) and 7(b)(2)-(5) of the Process Rule. The 
technology options identified for this final determination are 
essentially those technologies identified and considered for the 
October 2016 final determination. See sections III.B.3.b. and 
III.B.3.c. of this document for additional discussion.
    EPCA requires that in proposing to adopt an amended or new energy 
conservation standard, or proposing no amendment or no new standard for 
a type (or class) of covered product, DOE must determine the maximum 
improvement in energy efficiency or maximum reduction in energy use 
that is technologically feasible for each type (or class) of covered 
product. (42 U.S.C. 6295(p)(1)) Accordingly, DOE determined the max-
tech improvements in energy efficiency for vented heaters, using the 
design parameters for the most efficient products available on the 
market or in working prototypes. See section III.B.3.d. of this 
document for further discussion.
b. Energy Savings
    To adopt any new or amended standards for a covered product, DOE 
must determine that such action would result in significant energy 
savings. (42 U.S.C. 6295(o)(3)(B)) Although the term ``significant'' is 
not defined in the EPCA, the U.S. Court of Appeals, for the District of 
Columbia Circuit in Natural Resources Defense Council v. Herrington, 
768 F.2d 1355, 1373 (D.C. Cir. 1985), opined that Congress intended 
``significant'' energy savings in the context of EPCA to be savings 
that were not ``genuinely trivial.''
    The significance of energy savings offered by a new or amended 
energy conservation standard cannot be determined without knowledge of 
the specific circumstances surrounding a given rulemaking. For example, 
the United States has now rejoined the Paris Agreement and will exert 
leadership in confronting the climate crisis.\11\ Additionally, some 
covered products and equipment have most of their energy consumption 
occur during periods of peak energy demand. The impacts of these 
products on the energy infrastructure can be more pronounced than 
products with relatively constant demand. In evaluating the 
significance of energy savings, DOE considers differences in primary 
energy and FFC effects for different covered products and equipment 
when determining whether energy savings are significant. Primary energy 
and FFC effects include the energy consumed in electricity production 
(depending on load shape), in distribution and transmission, and in 
extracting, processing, and transporting primary fuels (i.e., coal, 
natural gas, petroleum fuels), and thus present a more complete picture 
of the impacts of energy conservation standards. Accordingly, DOE 
evaluates the significance of energy savings on a case-by-case basis.
---------------------------------------------------------------------------

    \11\ See Executive Order 14008, 86 FR 7619 (Feb. 1, 2021) 
(``Tackling the Climate Crisis at Home and Abroad'').
---------------------------------------------------------------------------

c. Cost-Effectiveness
    Under EPCA's 6-year-lookback review provision for existing energy 
conservation standards at 42 U.S.C. 6295(m)(1), cost-effectiveness of 
potential amended standards is a relevant consideration both where DOE 
proposes to adopt such standards, as well as where it does not. In 
considering cost-effectiveness when making a determination of whether 
existing energy conservation standards do not need to be amended, DOE 
considers the savings in operating costs throughout the estimated 
average life of the covered product 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(m)(1)(A)(referencing 42 U.S.C. 6295(n)(2))) Additionally, 
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)) Cost-effectiveness is one of the 
factors that DOE must ultimately consider under 42 U.S.C. 6295(o)(2)(B) 
to support a finding of economic justification, if it is determined 
that amended standards are appropriate under the applicable statutory 
criteria. (42 U.S.C. 6295(o)(2)(B)(i)(II))
    In determining cost effectiveness of potential amended standards 
for DHE, DOE considered the life-cycle cost (``LCC'') and payback 
period (``PBP'') analyses that estimate the costs and benefits to users 
from the standards. The LCC is the sum of the initial price of 
equipment (including its installation) and the operating expense 
(including energy, maintenance, and repair expenditures) discounted 
over the lifetime of the equipment. The LCC analysis requires a variety 
of inputs, such as equipment prices, equipment energy consumption, 
energy prices, maintenance and repair costs, equipment lifetime, and 
discount rates appropriate for consumers. To account for uncertainty 
and variability in specific inputs (e.g., equipment lifetime and 
discount rate), DOE uses a distribution of values, with probabilities 
attached to each value.
    The PBP is the estimated amount of time (in years) it takes 
consumers to recover the increased purchase cost (including 
installation) of more-efficient equipment through lower operating 
costs. DOE calculates the PBP by dividing the change in total 
installation cost due to a more-stringent standard by the change in 
annual operating cost for the year that standards are assumed to take 
effect.
    To further inform DOE's consideration of the cost-effectiveness of 
potential amended standards, DOE may also consider the NPV of total 
costs and benefits estimated as part of the national impact analysis 
(NIA). The inputs for determining the NPV of the total costs and 
benefits experienced by consumers are: (1) Total annual installed cost, 
(2) total annual operating costs (energy costs and repair and 
maintenance costs), and (3) a discount factor to calculate the present 
value of costs and savings.
    For the determination in this document, DOE considered the LCC and 
PBP analyses from the April 2010 final rule, as well as the evaluation 
in the October 2016 final determination, and information gathered on 
the current market and technologies.
d. Further Considerations
    As stated previously, pursuant to EPCA, if DOE does not issue a 
notification of determination that energy conservation standards for 
DHE do not need to be amended, DOE must issue a NOPR that includes new 
proposed standards. (42 U.S.C. 6295(m)(1)(B)) The new proposed 
standards in any such NOPR must be based on the criteria established 
under 42 U.S.C. 6295(o). (42 U.S.C. 6295(m)(1)(B)) The criteria in 42 
U.S.C. 6295(o) require that standards 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)) In deciding whether a proposed standard is 
economically justified, DOE must determine whether the benefits of the 
standard exceed its

[[Page 66411]]

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 for, or maintenance 
expenses of 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 
covered 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))
    As discussed in the October 2016 final determination, DOE found 
that amended standards for vented heaters would not be economically 
justified under the considerations of the seven factors prescribed in 
EPCA. 81 FR 71325, 71328-71329 (Oct. 17, 2016). For the determination 
in this document, DOE has considered the previous evaluation of amended 
standards in the October 2016 final determination.
2. Unvented Heaters
    In response to the December 2020 NOPD, the Joint Advocates and NEEA 
stated that the technology to eliminate standing pilot lights (i.e., 
electronic ignition) is readily available and low cost and urged DOE to 
consider standards specifically for unvented gas heaters that would ban 
standing pilot lights. (Joint Advocates, No. 16 at p. 1-2; NEEA, No. 20 
at p. 2) The Joint Advocates further stated that in the technical 
support document (TSD) for the hearth products NOPR that DOE published 
on February 9, 2015, DOE found that electronic ignition systems operate 
an average of 3.94 hours per year at an estimated 50 W, could be 
manufactured at an incremental price of approximately $80 and have a 
PBP and LCC savings of 2.9 years and $327, respectively. (Joint 
Advocates, No. 16 at p. 1-2; see also chapter 8 of the TSD to the 
February 2015 NOPR (80 FR 7082 (Feb. 9, 2015))) NEEA also referenced 
the February 2015 NOPR for hearth products stating that eliminating 
standing pilots could save an average of $165 over the life of the 
product. 80 FR 7082, 7084. (NEEA, No. 20 at p. 2)
    The CA IOUs and Joint Advocates stated that Appendix G, which does 
not require the energy consumption of the standing pilot light to be 
measured if there are instructions for turning the pilot light off when 
the heater is not in use, may not account for actual consumer behavior 
and stated that DOE did not provide evidence to support the assumption 
that consumers will follow the instructions in manufacturer-provided 
literature and urged DOE to conduct further research. (CA IOUs, No. 17 
at p. 3; Joint Advocates, No. 16 at p. 1) The Joint Advocates stated 
that in the February 2015 NOPR for hearth products DOE analysis showed 
that 40 percent of the consumers of hearth products leave standing 
pilot lights on all year and that the average operating hours for 
standing pilot lights is close to 4,000 hours per year. (Joint 
Advocates, No. 16 at p. 1)
    Section 2.3.1 of Appendix G states that measurement of the pilot 
light input rate is not required for unvented heaters where the pilot 
light is designed to be turned off by the user when the heater is not 
in use (i.e., for units where turning the control to the OFF position 
will shut off the gas supply to the burner(s) and the pilot light) and 
instruction to turn off the unit is provided on the heater near the gas 
control value (e.g., by label). Section 2.3.1 of Appendix G requires 
for unvented heaters with a pilot light that is not designed to be 
turned off when not in use, or that does not include an instruction to 
do so, the pilot light input rate must be measured, but is not used in 
the calculation of rated output in section 3.4 of Appendix G. As 
explained in the final rule published December 17, 2012, that addressed 
standby and off mode energy use for unvented heaters, these provisions 
exclude from the standby mode and off mode requirements a standing 
pilot light if there are means to disconnect the electric or gas power 
source when not in use and instructions to do so are clearly visible. 
77 FR 74559, 74563 (``December 2012 final rule''). DOE explained that 
the exclusion is identical to that applicable to manually-controlled 
vented heaters \12\ and that DOE believes this exclusion should also 
apply to unvented heaters so equipped. Id.
---------------------------------------------------------------------------

    \12\ Section 1.21 of Appendix O defines a ``manually controlled 
vented heater'' as ``either gas or oil fueled vented heaters 
equipped without thermostats.''
---------------------------------------------------------------------------

    The discussion in the December 2012 final rule and the reference to 
a comparable application for manually-controlled vented heaters 
indicates that the exclusion in section 2.3.1 of Appendix G was to 
exclude manually-controlled heaters (i.e., without thermostats) in 
which the burner and pilot light are turned off when the consumer turns 
the unit off. As a manually-controlled heater operates only when heat 
is desired by the consumer, all energy use is useful to the consumer. 
However, the exclusion in section 2.3.1 of Appendix G is more broadly 
written than the similar exclusion in section 3.5.2 of Appendix O for 
manually-controlled vented heaters and applies to products that operate 
with a thermostat or that are manually-controlled. Further, DOE has 
found that there are manually-controlled unvented gas heaters on the 
market \13\ that have both a fully off mode (i.e., turning the unit off 
will turn off the gas to the burner and pilot light) and a mode in 
which the pilot stays on when heat from the burner is not desired. Such 
products meet the exclusion criteria in section 2.3.1 of Appendix G but 
also may not be turned fully off by a consumer when heat is not 
desired. DOE agrees that amendments to Appendix G to limit the 
exclusion to unvented heaters that are controlled with a thermostat or 
manually-controlled unvented heaters with both a fully off mode and a 
pilot on mode may be appropriate. DOE intends to address this issue 
further in the ongoing test procedure rulemaking for unvented 
heaters.\14\
---------------------------------------------------------------------------

    \13\ For example, the installation and operations manual for an 
unvented gas heater that can be manually-controlled and has fully 
off and pilot modes can be found at: https://images.thdstatic.com/catalog/pdfImages/2e/2e682fa1-3dba-4905-8cb5-785611455daa.pdf.
    \14\ DOE published an NOPR regarding test procedures for DHE. 86 
FR 20053 (April 16, 2021). The docket for the test procedure NOPR is 
available at: www.regulations.gov/docket?D=EERE-2019-BT-TP-0003.
---------------------------------------------------------------------------

    There may be the potential for energy savings if consumer behavior 
regarding the operation of the standing pilot lights for unvented 
heaters is examined further. However, the values stated by the Joint 
Advocates cannot be used directly as hearth products, as defined in the 
February 2015 NOPR, but may be used differently than unvented heaters. 
At the time of this analysis, DOE has not received information 
regarding consumer behavior for unvented heaters, but will continue to 
evaluate in subsequent rulemakings.
    The Joint Gas Utilities stated that unvented gas heaters are 
required by the consensus safety standard ANSI

[[Page 66412]]

Z21.11.1, ``Gas-Fired Room Heaters V: Vented Room Heaters,'' to 
incorporate an oxygen depletion safety (ODS) system that also acts as a 
burner ignition system and stated that because of this requirement in 
the safety standard, prohibition of standing pilot lights would 
essentially prohibit manufacturing unvented gas heaters. (Joint Gas 
Utilities, No. 15 at p. 4) DOE found that CSA/ANSI Z21.11.2-2019 (ANSI 
Z21.1.2-2019), ``Gas-Fired Room Heaters, Volume II, Unvented Room 
Heaters'' covers unvented gas heaters and that while section 4.9 of 
ANSI Z21.11.2-2019 does specify that an ODS system be equipped at the 
point of manufacture, it does not require that a standing pilot light 
be used in the ODS system. Further, DOE has found that unvented heaters 
exist on the market \15\ with ODS systems and without standing pilot 
lights.
---------------------------------------------------------------------------

    \15\ Specification sheet for an unvented gas heater with 
electronic ignition and a ODS system: www.media.rinnai.us/
salsify_asset/s-515b633c-2926-43a2-98ff-7ac8fbc7c1ab/FC510%20(RCE-
391A-H)%20SP.pdf?_ga=2.116400966.1386589753.1625773392-
36239730.1625773392.
---------------------------------------------------------------------------

    AHAM supported DOE's assessment from the December 2020 NOPD which 
stipulated that for unvented heaters any heat losses are lost to the 
living space and, therefore, unvented heaters are nearly 100 percent 
efficient. (AHAM, No. 19 at p. 2) Flux Tailor urged DOE to reconsider 
its blanket assumption that all unvented heaters are 100 percent 
efficient, suggesting that, depending on type of convection technology 
and other factors, the heater's real capacity to heat a given space may 
vary significantly and ultimately effect overall energy consumption. 
(Flux Tailor, No. 21 at p. 21)
    Section 3.1 of Appendix G contains a calculation for annual energy 
consumption for primary electric heaters. This calculation uses the 
national average heating load hours (i.e., 2,080 hours). Appendix G 
does not provide for calculating the annual energy consumption of 
supplementary electric heaters or unvented gas or oil heaters. To 
account for potential variation in a unit's ``real'' heating capacity, 
as suggested by Flux Tailor, an annual energy consumption calculation 
would need to be developed for all unvented heaters that addressed the 
heating load hours based on quantity of heat a unit provides to a given 
space. As this would necessitate amendment to the test procedure, Flux 
Tailor's comment is more appropriately addressed in the ongoing test 
procedure rulemaking.\16\
---------------------------------------------------------------------------

    \16\ DOE published an NOPR regarding test procedures for DHE. 86 
FR 20053 (April 16, 2021). The docket for the test procedure NOPR is 
available at: www.regulations.gov/docket?D=EERE-2019-BT-TP-0003.
---------------------------------------------------------------------------

    As stated in section III.A.3., this final determination does not 
consider unvented hearth heaters. To the extent DOE will consider 
energy conservation standards for unvented hearth heaters it would do 
so in a separate rulemaking.
3. Vented Heaters
a. Market Assessment
    Models on the Market
    DOE has conducted a review of the vented heater market, including 
product literature and product listings in the CCMS database and AHRI 
product directory. DOE has concluded that the number of models offered 
in each of the vented heater product classes has continued to decrease 
overall since the October 2016 final determination, as shown in Table 
III.3 of this document. The model counts presented in Table III.3 of 
this document are counts of individual model numbers, as opposed to 
basic model numbers. A basic model can have multiple individual model 
numbers certified under it. The model counts from previous rulemakings 
were individual model numbers, so for consistency of comparison, the 
model counts for 2021 that are presented in Table III.3 of this 
document are also in terms of individual model number. DOE acknowledges 
that, although changes in model counts and shipments sometimes 
correlate, changes to available model counts do not necessarily 
indicate a change in the number of units sold. For example, a model 
could be taken off of the market, but more units of another model could 
be sold, thereby resulting in roughly the same amount of sales as 
before the first model was taken off the market. Shipments of vented 
heaters are discussed is section III.B.3.g of this document.

    Table III.3--Vented Heater Individual Model Counts by Product Class for Current and Previous Rulemakings
----------------------------------------------------------------------------------------------------------------
                                                                       Model count by product class
                                                         -------------------------------------------------------
                      Product class                                        October 2016 final   April 2010 final
                                                              2021 *        determination **        rule ***
----------------------------------------------------------------------------------------------------------------
Gas Wall Fan Type.......................................              51                    64                82
Gas Wall Gravity Type...................................              57                    56                52
Gas Floor...............................................              10                    15                15
Gas Room................................................              19                    28                29
----------------------------------------------------------------------------------------------------------------
* CCMS database (last accessed on July 8, 2021), with further information taken from the AHRI Directory (last
  accessed on July 8, 2021). Models designated as ``Production Stopped'' within the AHRI Directory are not
  included in the model count.
** CCMS database (last accessed on July 16, 2015), with further information taken from the AHRI Directory (last
  accessed on July 16, 2015). Models designated as ``Discontinued'' within the AHRI Directory are not included
  in the model count.
*** Gas Appliance Manufacturers Association (GAMA) Directory for Direct Heating Equipment \17\ (downloaded March
  2, 2009). Models designated as ``Discontinued'' within the GAMA Directory are not included in the model count.

    In response to the February 2019 RFI, AHRI confirmed that there are 
fewer models in the AHRI Directory now than there were at the time of 
the October 2016 final determination. (AHRI, No. 6 at p. 4)
---------------------------------------------------------------------------

    \17\ AHRI is the trade association that represents manufacturers 
of heating products. It was formed on January 1, 2008, by the merger 
of GAMA, which formerly represented these manufacturers, and the 
Air-Conditioning and Refrigeration Institute. As stated previously, 
AHRI maintains a Consumers' Directory of Certified Product 
Performance for direct heating equipment, which can be found on 
AHRI's website at: www.ahridirectory.org/Search/SearchHome?ReturnUrl=%2f.
---------------------------------------------------------------------------

    In response to the December 2020 NOPD, the Joint Gas Utilities 
supported DOE's tentative conclusion that new DHE product lines are 
generally not being developed, the market for DHE is declining, and 
most product lines function mainly to replace existing units. (Joint 
Gas Utilities, No. 15 at p. 3) AHAM and AHRI stated that DHE products 
have not seen significant technological advancement since 2016 (i.e., 
when the October 2016 final

[[Page 66413]]

determination was published) and that products on the market today are 
approximately the same as those available in 2016. (AHAM, No. 19 at p. 
2; AHRI, No. 18 at p. 2) DOE has also found that the products available 
on the market today are approximately the same as those available in 
2016, as discussed in section III.B.3.d, and that the market for DHE is 
declining, as discussed in section III.B.3.g. of this document.
Manufacturers
    In the December 2020 NOPD, DOE noted that the number of 
manufacturers producing vented heaters increased in the CCMS database 
from four to five between the October 2016 final determination and the 
December 2020 NOPD. 85 FR 77017, 77028-77029 (Dec. 1, 2020). This new 
manufacturer mainly produces hearth products (which are not subject to 
this final determination) but also manufactures two gas wall gravity 
type vented heaters with input rate and AFUE values that are comparable 
to the input rate and AFUE values of other models available on the 
market, and that are similar in design. Since the publication of the 
December 2020 NOPD, one manufacturer acquired another manufacturer's 
vented heater brand, resulting in four manufacturers producing vented 
heaters.\18\
---------------------------------------------------------------------------

    \18\ HVAC Insider, Williams Acquires Cozy Heating Systems, 2021. 
www.hvacinsider.com/williams-acquires-cozy-heating-systems/ (Last 
accessed July 20, 2021).
---------------------------------------------------------------------------

b. Technology Options for Efficiency Improvement
    In the February 2019 RFI and December 2020 NOPD, DOE listed the 
technology options considered in the previous rulemakings to increase 
AFUE and requested comment on these options and any other technology 
options that would be relevant to vented heaters. 84 FR 6095, 6099 
(Feb. 26, 2019); 85 FR 77017, 77029 (Dec. 1, 2020). Specifically, DOE 
identified the technologies in the following Table III.4 for improving 
the efficiency of vented heaters.

           Table III.4--Technology Options for Vented Heaters
------------------------------------------------------------------------
                           Technology options
-------------------------------------------------------------------------
Increased heat exchanger surface area.
Multiple flues.
Multiple turns in flue.
Direct vent (concentric).
Increased heat transfer coefficient.
Electronic ignition.
Thermal vent damper.
Electrical vent damper.
Power burner.
Induced draft.
Two-stage and modulating operation.
Improved fan or blower motor efficiency.
Increased insulation.
Condensing.
Condensing Pulse Combustion.
Air circulation fan.
Sealed combustion.
------------------------------------------------------------------------

    As stated in the December 2020 NOPD, DOE found that the available 
range of input rates and AFUE values of vented heater products 
available on the market have stayed largely the same since the October 
2016 final determination. 85 FR 77017, 77029 (Dec. 1, 2020). DOE 
further stated that differences in the available input rate and AFUE 
were mostly due to models being taken off the market as opposed to new 
models being added and that this indicates that the technology options 
currently available are similar to those examined in both the April 
2010 final rule and October 2016 final determination. Id. DOE did not 
identify any additional technologies, and there were not any comments 
suggesting additional technology options for vented heaters that were 
not previously considered. Therefore, DOE used the technology options 
in Table III.4 of this document for its review of potential amended 
vented heater energy conservation standard levels in this document.
c. Screening Analysis
    In the February 2019 RFI, DOE identified and explained why four of 
the technologies on its initial list had been previously screened out: 
(1) Increased heat transfer coefficient (practicability to manufacture, 
install, and service); (2) power burner (practicability to manufacture, 
install, and service); (3) condensing pulse combustion (technological 
feasibility); and (4) improved fan or blower motor efficiency 
(practicability to manufacture, install, and service). 84 FR 6095, 
6099-6100 (Feb. 26, 2019). DOE also noted that it only considers 
potential efficiency levels achieved through the use of proprietary 
designs in the engineering analysis if they are not part of a unique 
pathway to achieve the efficiency level (i.e., if there are other non-
proprietary technologies capable of achieving the same efficiency 
level). 84 FR 6095, 6099 (Feb. 26, 2019). In the December 2020 NOPD, 
DOE maintained the tentative screening approach presented in the 
February 2019 RFI. 85 FR 77017, 77029 (Dec. 1, 2020). DOE did not 
receive comments on the screening analysis in response to the December 
2020 NOPD.
    In evaluating potential technology options for this final 
determination, DOE maintained the list from the February 2019 RFI and 
December 2020 NOPD, as discussed in section III.B.3.b. of this 
document. In addition, DOE did not find that any of the technology 
options should be screened out from consideration as options for 
improving the AFUE of vented heaters other than the four previously 
screened-out.
d. Engineering Analysis
    For the April 2010 final rule, DOE determined technology options by 
efficiency level for each of the vented heater product classes. These 
technology options are found in section 5.7 of the April 2010 final 
rule TSD \19\ and are reproduced in Table III.5 of this document. The 
representative input rate ranges from the April 2010 final rule are: 
>42,000 Btu/h for gas wall fan type vented heaters, >27,000 Btu/h and 
<=46,000 Btu/h for gas wall gravity type vented heaters, >37,000 Btu/h 
for gas floor vented heaters, and >27,000 Btu/h and <=46,000 Btu/h for 
gas room vented heaters. 75 FR 20112, 20114 (April 16, 2010).
---------------------------------------------------------------------------

    \19\ Available at: www.regulations.gov/document?D=EERE-2006-STD-0129-0149.

   Table III.5--April 2010 Final Rule Technology Options by Efficiency Level for the Representative Input Rate
                                   Ranges of the Vented Heater Product Classes
----------------------------------------------------------------------------------------------------------------
                                                                     Efficiency
               DHE type                   Heat circulation type     level (AFUE)             Technology
----------------------------------------------------------------------------------------------------------------
Gas Wall..............................  Fan Type                              *74  Standing Pilot.
                                        .........................            * 75  Intermittent Ignition and Two-
                                                                                    Speed Blower.
                                        .........................           ** 76  Intermittent Ignition and
                                                                                    Improved Heat Exchanger.

[[Page 66414]]

 
                                        .........................              77  Intermittent Ignition, Two-
                                                                                    Speed Blower, and Improved
                                                                                    Heat Exchanger.
                                        .........................              80  Induced Draft and Electronic
                                                                                    Ignition.
                                        Gravity Type                          *64  Standing Pilot.
                                        .........................           ** 66  Standing Pilot and Improved
                                                                                    Heat Exchanger.
                                        .........................            * 68  Standing Pilot and Improved
                                                                                    Heat Exchanger.
                                        .........................            * 69  Standing Pilot and Improved
                                                                                    Heat Exchanger.
                                        .........................              70  Electronic Ignition.
Gas Floor.............................  All                                  * 57  Standing Pilot.
                                        .........................           ** 58  Standing Pilot and Improved
                                                                                    Heat Exchanger.
Gas Room..............................  All                                  * 64  Standing Pilot.
                                        .........................            * 65  Standing Pilot and Improved
                                                                                    Heat Exchanger.
                                        .........................            * 66  Standing Pilot and Improved
                                                                                    Heat Exchanger.
                                        .........................           ** 67  Standing Pilot and Improved
                                                                                    Heat Exchanger.
                                        .........................              68  Standing Pilot and Improved
                                                                                    Heat Exchanger.
                                        .........................    * [dagger]83  Electronic Ignition and
                                                                                    Multiple Heat Exchanger
                                                                                    Design.
----------------------------------------------------------------------------------------------------------------
* No longer available on the market.
** Efficiency level adopted in as the Federal standard the April 2010 final rule at the representative input
  rate.
[dagger] This was a theoretical model and was not on the market at the time of the April 2010 final rule
  analysis.

    DOE reviewed the technology options available in the current vented 
heater market for the representative input rate ranges from the April 
2010 final rule. The available efficiency levels and associated 
technologies are shown in Table III.6 of this document.

   Table III.6--Current Technology Options by Efficiency Level of the Representative Input Rate Ranges of the
                          Vented Heater Product Classes from the April 2010 Final Rule
----------------------------------------------------------------------------------------------------------------
                                                                     Efficiency
               DHE type                   Heat circulation type     level (AFUE)             Technology
----------------------------------------------------------------------------------------------------------------
Gas Wall..............................  Fan Type                               76  Intermittent Ignition and
                                                                                    Improved Heat Exchanger.
                                        .........................              77  Intermittent Ignition, Two-
                                                                                    Speed Blower, and Improved
                                                                                    Heat Exchanger.
                                        .........................              80  Induced Draft and Electronic
                                                                                    Ignition
                                        .........................            * 90  Electronic Ignition and
                                                                                    Condensing.
                                        Gravity Type                           66  Standing Pilot and Improved
                                                                                    Heat Exchanger.
                                        .........................              68  Standing Pilot and Improved
                                                                                    Heat Exchanger.
                                        .........................              69  Standing Pilot and Improved
                                                                                    Heat Exchanger.
                                        .........................              70  Electronic Ignition.
Gas Floor.............................  All                                    58  Standing Pilot and Improved
                                                                                    Heat Exchanger.
Gas Room..............................  All                                    67  Standing Pilot and Improved
                                                                                    Heat Exchanger.
                                        .........................              68  Standing Pilot and Improved
                                                                                    Heat Exchanger.
                                        .........................           ** 83  Electronic Ignition and
                                                                                    Multiple Heat Exchanger
                                                                                    Design.
----------------------------------------------------------------------------------------------------------------
* Condensing gas wall fan type vented heaters exist in an input rate range that was not the representative input
  rate range in the April 2010 final rule. Thus, the max-tech level presented is theoretical for the
  representative input range, but exists in models on the market in other input ranges.
** This is a theoretical efficiency level based on the analysis for the April 2010 final rule, and is not
  available in any model currently on the market.

    The maximum available efficiency level is the highest efficiency 
model currently available on the market for that class. The max-tech 
efficiency level represents the theoretical maximum possible efficiency 
if all available design options are incorporated in a model. In some 
cases, models at the max-tech efficiency level are not commercially 
available because, although the level is technically achievable, 
manufacturers have determined that it is not economically feasible 
(either for the manufacturer to produce or for consumers to purchase). 
However, DOE seeks to determine the max-tech level for purposes of its 
analyses. The current maximum available efficiencies for the 11 
existing product classes are included in Table III.7, along with the 
maximum available efficiencies from the April 2010 final rule and those 
evaluated for the October 2016 final determination.

[[Page 66415]]



  Table III.7--Maximum Available Efficiency Levels for the Vented Heater Product Classes--Current and Previous
                                                   Rulemakings
----------------------------------------------------------------------------------------------------------------
                                                                                   October 2016
            Product class                 Input rate, kBtu/h          2021            final         April 2010
                                                                                  determination     final rule
----------------------------------------------------------------------------------------------------------------
Gas Wall Fan Type....................  <=42....................              90               92              83
                                       >42.....................              80               80              80
Gas Wall Gravity Type................  <=27....................              72               80              80
                                       >27 and <=46............              70               69              69
                                       >46.....................              70               70              69
Gas Floor............................  <=37....................              57               57              57
                                       >37.....................              58               58              58
Gas Room.............................  <=20....................              71               71              59
                                       >20 and <=27............              66               66              63
                                       >27 and <=46............              68               68              83
                                       >46.....................              70               70              70
----------------------------------------------------------------------------------------------------------------

    In the April 2010 final rule, DOE determined max-tech efficiency 
levels using the technology options available at that time. For gas 
wall fan type vented heaters with an input rate over 42,000 Btu/h, DOE 
identified a max-tech efficiency level design with induced draft 
combustion and electronic ignition, resulting in an AFUE of 80 percent. 
For gas wall gravity type vented heaters with an input rate over 27,000 
Btu/h and up to 46,000 Btu/h, DOE identified 70 percent AFUE as a 
theoretical max-tech level, which was achievable with an improved heat 
exchanger design and electronic ignition. For gas floor vented heaters 
with an input rate over 37,000 Btu/h, DOE identified the max-tech 
efficiency level as 58 percent AFUE, which DOE stated could be reached 
using a standing pilot light and an improved heat exchanger design. For 
gas room vented heaters with an input rate over 27,000 Btu/h and up to 
46,000 Btu/h, DOE identified a theoretical max-tech efficiency level of 
83 percent AFUE, which manufacturers could achieve using an electronic 
ignition and a multiple heat exchanger design. 75 FR 20112, 20145-20146 
(April 16, 2010).
    In the October 2016 final determination, DOE noted that condensing 
gas wall fan type vented heater models with input rates at or below 
42,000 Btu/h had become available, and DOE considered this the max-tech 
level for all gas wall fan type vented heaters. Based on information 
obtained during manufacturer interviews and a manufacturer production 
cost developed through a teardown analysis performed for the proposed 
determination, DOE determined that condensing technology was not 
economically justified for gas wall fan type vented heaters at that 
time. 81 FR 21276, 21280 (April 11, 2016); 81 FR 71325, 71328-71329 
(Oct. 17, 2016).
    Since the October 2016 final determination, the highest efficiency 
condensing gas wall fan type vented heater, with an input rate at or 
below 42,000 Btu/h, available on the market has been rerated (e.g., the 
same model number has been rated with at least two different AFUE 
values between the October 2016 final determination and this NOPD) from 
an AFUE of 92 percent to an AFUE of 90 percent, which is the only 
condensing AFUE level on the market. The maximum available AFUE for gas 
wall gravity type vented heaters, with an input rate over 27,000 Btu/h 
and up to 46,000 Btu/h, increased to 70 percent, which is the max-tech 
level analyzed in the April 2010 final rule. In total, the maximum 
available AFUE decreased for two input rate ranges and increased for 
one input rate range. All other input rate ranges have the same maximum 
available AFUE as in the October 2016 final determination.
    In response to the December 2020 NOPD, NEEA urged DOE to consider 
condensing technology as a technology option and analyze the maximum 
levels technologically feasible, not just those available. (NEEA, No. 
150 at p. 2) The CA IOUs recommended DOE conduct an updated analysis to 
reconsider the max-tech levels for all DHE products rather than rely on 
max-tech levels from the analysis conducted for the April 2010 final 
rule. (CA IOUs, No. 17 at p. 1) The CA IOUs also stated that without a 
thorough engineering analysis of gas wall fan type vented heaters, the 
December 2020 NOPD gives insufficient justification that the AFUE level 
attained by the few condensing products on the market can be considered 
max-tech and that if DOE were to apply a different max-tech level for 
condensing technology, the energy savings threshold to initiate a new 
rulemaking could be met. (CA IOUs, No. 17 at p. 2) For gas wall gravity 
type and gas room vented heaters, CA IOUs asserted that the absence of 
any condensing efficiency level products on the market does not relieve 
DOE of the obligation to explore condensing tech as max-tech for these 
categories. (CA IOUs, No. 17 at p. 2)
    DOE has included condensing technology in the list of technology 
options for the entirety of the analysis conducted for this final 
determination. Gas wall fan type vented heaters could have a 
theoretical AFUE above the level analyzed in the October 2016 final 
determination and December 2020 NOPD as max-tech and this theoretical 
level results in increased energy savings. 81 FR 71325, 71327 (Oct. 17, 
2016); 85 FR 77017, 77030 (Dec. 1, 2020). As discussed in section 
III.B.1.a, in screening for technologies that are technologically 
feasible, DOE considers technologies incorporated in commercial 
products or in working prototypes. 10 CFR part 430 subpart C appendix A 
section 6(c)(3)(i). DOE did not identify gas wall gravity type and gas 
room vented heaters with condensing technologies on the market or as 
prototypes that incorporated condensing technology, that achieved an 
AFUE higher than that considered.
    As discussed in the following sections, DOE has determined that 
energy conservation standards do not need to be amended based on the 
continued likelihood that amending the vented heater energy 
conservation standards would impose a substantial burden on 
manufacturers of vented heaters, particularly to small manufacturers. 
For gas wall gravity type, gas floor, and gas room vented heaters, the 
technologies available on the market produce AFUE values that are well 
below near-condensing operation, suggesting significant redesign would 
be required to incorporate condensing technology, likely resulting in 
increasing potential costs to manufacturers. Given that an

[[Page 66416]]

energy conservation standard that required use of condensing technology 
would further exacerbate the estimated impacts of amended standards as 
determined in the prior determinations, DOE did not include condensing 
technology in its engineering analysis beyond that considered in the 
prior engineering analysis conducted for the October 2016 final 
determination. 81 FR 71325, 71327-71328 (Oct. 17, 2016).
    In response to the December 2020 NOPD, CA IOUs stated that DOE has 
not presented information to suggest that electronic ignition could not 
be included in gas floor vented heaters, and encouraged DOE to complete 
a thorough analysis that appropriately considers electronic ignition 
technology. (CA IOUs, No. 17 at p. 3) As stated, DOE has determined 
that standards do not need to be amended based on the continued 
likelihood that amending the vented heater energy conservation 
standards would impose a substantial burden on manufacturers of vented 
heaters, particularly to small manufacturers. As discussed in sections 
III.B.3.g and III.B.3.i, vented heater shipments have declined since 
the April 2010 final rule and one of the two manufacturers of gas floor 
vented heaters is a small business while it is unclear whether the 
other manufacturer remains a small business after acquiring another 
small business manufacturer's gas floor vented heater brand. Gas floor 
vented heaters are also the smallest product class by model count. As 
such, DOE did not include electronic ignition in its engineering 
analysis.
    The Joint Advocates asserted that some models of vented heaters 
meet the current energy conservation standards but still have standing 
pilot lights, and that pilot lights left burning year-round can consume 
6.8 MMBtu of fuel per year, which would account for around 25 percent 
of total annual gas consumption for vented heaters. (Joint Advocates, 
No. 16 at p. 1) DOE has identified vented heaters on the market with 
standing pilot lights that meet the current energy conservation 
standards. The energy conservation standards established in the April 
2010 final rule were set at a level attainable by units that use 
standing pilot lights as evidenced by the technology options listed for 
each efficiency level in chapter 5 of the TSD for the April 2010 final 
rule.
Manufacturer Production Costs
    After establishing the efficiency levels in the April 2010 final 
rule, DOE estimated the manufacturer production cost (MPC) of attaining 
each efficiency level based on the technology options identified for 
that level. The MPC takes into account the costs for material, labor, 
depreciation, and overhead. These values were developed based on 
product teardowns that generated bills of materials for all components 
and manufacturing processes required to manufacture vented heaters at a 
given efficiency level for each product class. DOE uses these bills of 
material, along with information on material and component prices, 
costs for labor, depreciation, and overhead to derive the MPC. In 
development of the April 2010 final rule, manufacturer interviews were 
conducted to verify the accuracy of the inputs to DOE's analysis of 
MPCs (e.g., material prices, labor rates) and the resulting MPCs. 75 FR 
20112, 20147-20148 (April 16, 2010). As discussed in section II.B.3.b., 
after the April 2010 final rule and before October 2016 final 
determination, a condensing gas was fan type vented heater came on the 
market. In a NOPD which preceded the October 2016 final determination, 
DOE stated that the MPC for a condensing gas wall fan type vented 
heater had a 23 percent higher incremental cost than a unit at 80 
percent AFUE (i.e., the max-tech efficiency level evaluated in the 
April 2010 final rule). 81 FR 21276, 21280 (April 11, 2016) (April 2016 
NOPD). DOE received feedback during manufacturer interviews which 
indicated that condensing models are significantly more expensive to 
manufacture than non-condensing models and to confirm these statements, 
DOE performed a product teardown of a condensing model. Id.
    DOE reviewed its April 2010 final rule and October 2016 final 
determination engineering analyses to determine whether the results are 
still valid in the context of the current market. As the market 
conditions for manufacturers remains substantially the same as the 
previous rulemakings (i.e., production volumes remain similar or 
slightly lower than previously projected, while material prices and 
labor rates are also similar), DOE has determined that the engineering 
analysis performed during the April 2010 final rule and October 2016 
final determination are still valid for estimating MPC. DOE also 
reviewed retail prices for models currently available on the market and 
found that the current retail prices are comparable to those published 
in chapter 8, section 8.2.3.5 of the April 2010 final rule TSD, when 
adjusted for inflation. Because DOE has not found distribution channels 
or mark-ups to have changed since the April 2010 final rule, the 
similarity of the predicted retail prices in the April 2010 final rule 
analysis to those of current products indicates that the MPC are likely 
to be unchanged from the April 2010 final rule analysis.
e. Energy Use Analysis
    Table III.8 presents the average energy consumption, from section 
7.3.6 of the April 2010 final rule TSD, for each vented heater product 
class and efficiency level. DOE has concluded that the current average 
energy consumption for these vented heaters is comparable to the 
estimates developed for the April 2010 final rule and relied on in the 
October 2016 final determination, as the technology options at each 
efficiency level have not changed substantially.

    Table III.8--Average Energy Consumption for the Vented Heater Product Classes From April 2010 Final Rule
----------------------------------------------------------------------------------------------------------------
                                                                                    Average energy consumption
                                                                    Efficiency   -------------------------------
               DHE type                   Heat circulation type    level (AFUE)                     Electricity
                                                                                  Gas (MMBtu/yr)     (kWh/yr)
----------------------------------------------------------------------------------------------------------------
Gas Wall..............................  Fan Type................            * 74            29.9            38.6
                                                                            * 75            28.2            45.7
                                                                           ** 76            27.8            45.2
                                                                              77            27.4            44.7
                                                                              80            26.3            66.2
                                        Gravity Type............            * 64            29.9             0.0
                                                                           ** 66            29.0             0.0
                                                                            * 68            28.2             0.0
                                                                            * 69            27.8             0.0

[[Page 66417]]

 
                                                                              70            26.5            17.7
Gas Floor.............................  All.....................            * 57            30.8             0.0
                                                                           ** 58            30.3             0.0
Gas Room..............................  All.....................            * 64            27.5             0.0
                                                                            * 65            27.1             0.0
                                                                            * 66            26.7             0.0
                                                                           ** 67            26.3             0.0
                                                                              68            26.0             0.0
                                                                    *[dagger] 83            20.2            81.1
----------------------------------------------------------------------------------------------------------------
* No longer available on the market.
** Efficiency level adopted in as the Federal standard the April 2010 final rule at the representative input
  rate.
[dagger] This was a theoretical model and was not on the market at the time of the April 2010 final rule
  analysis.

    The Joint Advocates stated that in the February 2015 NOPR for 
hearth products, DOE analysis showed that 40 percent of the consumers 
of hearth products leave standing pilot lights on all year and that the 
average operating hours for standing pilot lights is close to 4,000 
hours per year. (Id.) CA IOUs asserted that vented heaters are not 
often used in an on/off configuration and that intermittent heating use 
during shoulder seasons will also lead to wasted energy if the standing 
pilot light is burning the whole time but the heater is only used 
during small portions of the day. (CA IOUs, No. 21 at p. 20)
    DOE notes that the estimates developed for the April 2010 final 
rule assumes that 100 percent of consumers have the pilot on year-
round, so the impact of pilot use is considered in this analysis. DOE 
believes that the fraction of vented heaters that have standing pilot 
on during the non-heating season is likely much higher than for hearth 
products, but likely not 100 percent. Therefore, the April 2010 final 
rule analysis likely overestimates the potential energy savings from 
electronic ignition since a fraction of consumers might turn the 
standing pilot off during the non-heating season. DOE also notes that 
standing pilot energy use during the shoulder season could offset some 
time that the main burner would be on, which is not considered in the 
April 2010 final rule analysis, and could offset some of the energy 
savings as well.
f. Life-Cycle Cost and Payback Period Analysis
    LCC is the total consumer expense over the life of an appliance, 
including the total installed cost and operating costs (including 
energy expenditures, maintenance, and repair). DOE discounts future 
operating costs to the time of purchase, and sums them over the 
lifetime of the product.
    The total installed cost is determined by combining the 
installation cost with the equipment price. The equipment price is 
determined using the MPC and applying a manufacturer mark-up, a 
wholesaler mark-up, a mechanical contractor mark-up, and sales tax.\20\ 
As presented in section III.B.3.d. of this document, DOE has determined 
that the MPC has not changed significantly since the April 2010 final 
rule. DOE has also concluded that the average mark-ups, sales taxes, 
and installation costs are comparable to the estimates developed for 
the April 2010 final rule. Therefore, the total installed costs for the 
products and efficiency levels that are still on the market and were 
evaluated during the April 2010 final rule are estimated to have 
remained approximately the same given that the analyzed technology 
options have not changed. As discussed in section II.B.3.b., condensing 
gas wall fan type vented heaters came on the market between the April 
2010 final rule and October 2016 final determination. DOE additionally 
estimates that the total installed cost for the 90-percent AFUE gas 
wall fan type vented heater would be considerably higher compared to 
lower efficiency gas wall fan type vented heaters, since there are 
considerable development and production costs (as discussed in section 
III.B.3.d. of this document), as well as additional installation costs.
---------------------------------------------------------------------------

    \20\ For new construction, builder mark-up is also included. For 
the April 2010 final rule, the new construction market shares are 10 
percent for vented gas wall fan, vented gas wall gravity, and vented 
gas room heaters, and 0 percent for vented gas floor furnace 
heaters.
---------------------------------------------------------------------------

    The annual operating cost is determined by the energy consumption 
of vented heaters, the energy prices of the fuel used, and any repair 
and maintenance costs that would be required. DOE has determined that 
the energy consumption (as discussed in section III.B.3.e. of this 
document) and repair and maintenance costs associated with each 
efficiency level have not changed significantly from that in the April 
2010 final rule for the vented heaters that are still on the market, as 
the technology options have not changed. DOE additionally estimates 
that the average energy consumption for the 90-percent AFUE gas wall 
fan type vented heater would be proportionally lower compared to the 
80-percent AFUE gas wall fan type vented heaters, and repair and 
maintenance costs would be higher than for the 80-percent AFUE gas wall 
fan type vented heaters. To assess the impact of energy prices, DOE 
compared the April 2010 final rule's average energy prices for 2013 
(i.e., the starting year in the analysis) to a likely starting year if 
DOE performed a revised analysis in a new rulemaking. The April 2010 
final rule used Energy Information Administration's (EIA) Annual Energy 
Outlook (AEO) 2010 energy price trends.\21\ To assess the impact of 
updated energy price estimates, DOE used EIA's AEO 2021 energy price 
trends to estimate the energy prices in 2027,\22\ the expected 
compliance year for the updated analysis.\23\ Both the

[[Page 66418]]

natural gas and propane prices projected in 2027 are lower ($10.99/
MMBtu in 2019$ and $21.11/MMBtu in 2020$, respectively) compared to the 
2013 natural gas and propane prices used in the April 2010 final rule 
($13.47/MMBtu in 2019$ and $33.12/MMBtu in 2020$, respectively).\24\ 
Additionally, the 30-year trends are comparable in the two AEO 
editions. Due to comparable energy use and lower energy prices, DOE has 
determined that the annual operating cost of vented heaters has either 
decreased or not changed significantly from that estimated in the April 
2010 final rule.
---------------------------------------------------------------------------

    \21\ U.S. Department of Energy--Energy Information 
Administration, Annual Energy Outlook 2010 with Projections to 2035 
(Early Release) (Available at: www.eia.gov/outlooks/aeo/) (Last 
accessed July 20, 2021).
    \22\ For purposes of the updated analysis, DOE estimated 2027 as 
the first year of compliance by assuming that the publication of a 
potential final rule would occur by 2022 and any amended standards 
would apply to DHEs manufactured 5 years after this date. (42 U.S.C. 
6295(m)(4)(A)(ii))
    \23\ U.S. Department of Energy--Energy Information 
Administration, Annual Energy Outlook 2021 with Projections to 2050 
(Available at: www.eia.gov/outlooks/aeo/) (Last accessed July 20, 
2021).
    \24\ For the April 2010 final rule, the fraction of propane 
installations is 12 percent for vented gas wall fan and vented gas 
wall gravity, 9 percent for vented gas floor furnace heaters, and 38 
percent for vented gas room heaters.
---------------------------------------------------------------------------

    As vented heaters have not significantly changed since the April 
2010 final rule, DOE has determined that the product lifetime has 
remained largely the same. DOE has also determined that residential 
discount rates have not changed significantly from those in the April 
2010 final rule.
    Because the total installed costs are estimated not to have changed 
significantly, and operating costs are estimated to be comparable, DOE 
has determined that the LCC savings for each efficiency level of vented 
heaters are similar to the estimates in the April 2010 final rule. 
Further, DOE has determined that the relative comparisons between each 
efficiency level for each product class remain unchanged and that the 
conclusions from the April 2010 final rule and October 2016 final 
determination are still applicable.
    The PBP is the amount of time it takes the consumer, in a typical 
case, to recover the estimated higher purchase expense of more energy-
efficient products through lower operating costs. Numerically, the PBP 
is the ratio of the increase in purchase expense (i.e., due to a more 
energy-efficient design) to the decrease in annual operating 
expenditures. This type of calculation is known as a ``simple'' payback 
period, because it does not take into account changes in operating 
expense over time or the time value of money (i.e., the calculation is 
done at an effective discount rate of zero percent). Payback periods 
are expressed in years. Payback periods greater than the life of the 
product indicate that the increased total installed cost is not 
recovered by the reduced operating expenses.
    As previously stated, DOE has estimated that the total installed 
costs have not changed significantly, and operating costs are 
comparable to the April 2010 final rule results. Therefore, DOE has 
determined that the ``simple'' payback period for each efficiency level 
of vented heaters is similar to the ``simple'' payback period results 
from the April 2010 final rule. Further, DOE has determined that the 
relative comparisons between each efficiency level for each product 
class remain unchanged and that the conclusions from the April 2010 
final rule and October 2016 final determination are still applicable.
    In response to the December 2020 NOPD, the Joint Gas Utilities 
stated their support for DOE's tentative determination in the December 
2020 NOPD that amended energy conservation standards are not cost-
effective on an energy price basis, based on the LCC and PBP analyses. 
(Joint Gas Utilities, No. 15 at p. 3) For gas wall gravity type vented 
heaters that do not have electricity, NEEA requested that DOE consider 
the costs of bringing an electrical connection to the unit and adding a 
circulation fan in its LCC analysis to determine whether updated 
standards would be cost-effective. (NEEA, No. 20 at p. 2) Flux Tailor 
suggested that DOE also consider projected electricity prices in its 
analysis as they may well increase in the future, even if natural gas 
prices are predicted to decrease. (Flux Tailor, No. 21 at p. 42)
    In chapter 8 section 8.2.3.4 of the TSD for the April 2010 final 
rule, DOE stated that it included an additional installation cost for 
the design options that require electricity. Therefore, the cost of 
adding an electrical connection is already accounted for in the LCC 
analysis for the product classes that do not use electricity at the 
baseline and have higher efficiency levels which use electricity. DOE 
disagrees that adding an aftermarket circulation fan to a gas wall 
gravity type vented heater should be considered in the LCC analysis. 
The addition of an external fan would help circulate heated air 
throughout the space but does not help with the heat exchange process 
and therefore would not have a noticeable effect on the efficiency of 
the gas wall gravity type vented heater as measured by appendix O. 
Further, adding an internal circulation fan to a gas wall gravity type 
vented heater would make the unit a gas wall fan type vented heater and 
would therefore not be covered by the gas wall gravity type vented 
heater product class and the energy conservation standards. DOE agrees 
with Flux Tailor and uses projected electricity prices in its LCC 
analysis.
g. Shipments
    In the February 2019 RFI, DOE stated that from the April 2010 final 
rule, the Department has included vented heater historical shipment 
data from AHRI for gas wall vented heaters from 1990 to 1998 and from 
2000 to 2006, for gas floor vented heaters from 1990 to 2007, and for 
gas room vented heaters from 1990 to 2005. DOE also has limited 
disaggregated shipments for fan type and gravity type gas wall vented 
heaters and by input capacity. DOE requested comment on the annual 
sales data (i.e., number of shipments) for each vented heater product 
class from 2008-2018. 84 FR 6095, 6104-6105 (Feb. 26, 2019). In 2016, 
AHRI presented data showing the percentage change in total shipments 
for the years 2010-2015 compared with the total shipments over the 
period 2001-2006, estimating that gas wall vented heater (including 
both fan and gravity type units) shipments were 21 percent less, that 
direct vent gas wall vented heater (a form of gas wall vented heater) 
shipments were 31 percent less, and that gas room vented heater 
shipments were 44 percent less.\25\ AHRI did not have an active 
statistics program for gas floor vented heaters and was attempting to 
collect annual shipments information for recent years through a special 
data collection.
---------------------------------------------------------------------------

    \25\ AHRI Comment to the NOPD for Direct Heating Equipment 
published in 2016 (June 10, 2016) (Comment No. 7) (Available at: 
www.regulations.gov/document/EERE-2016-BT-STD-0007-0007) (Last 
accessed July 20, 2021).
---------------------------------------------------------------------------

    In response to the December 2020 NOPD, AHRI stated that it was 
conducting a special data collection to gather shipment data for each 
vented heater product class from 2016-2018, and that these data will be 
provided to DOE at a later date. (AHRI, No. 6 at p. 4) At this time, 
AHRI has not submitted data for the 2016-2018 time period.
    In response to the December 2020 NOPD, the CA IOUs urged DOE to 
find new sources of data for the shipment analysis, noting that, 
because of the Great Recession, relying on pre-2010 shipment data for 
DHE market forecasting may not be prudent. (CA IOUs, No. 17 at p. 3) CA 
IOUs also commented that AHRI is conducting a special data collection 
of shipments for vented heater products from 2016-2018 and encouraged 
DOE to delay any final determination until additional shipments data 
from the DHE industry is received and analyzed. (CA IOUs, No. 17 at p. 
3)
    As stated in the December 2020 NOPD, AHRI provided the percent 
change in total shipments for the vented heater market for the years of 
2010

[[Page 66419]]

through 2015 as compared to 2001 through 2006 and showed a reduction in 
shipments for gas wall vented heaters and gas room vented heaters. 85 
FR 77017, 77034 (Dec. 1, 2020). Also, as stated in the December 2020 
NOPD, these shipments are lower than the projected shipments from the 
April 2010 final rule indicating that the decline in vented heater 
shipments has been faster than expected. Id. at 77038. DOE has not 
received shipments data more recent than 2015, however, the alignment 
of April 2010 final rule shipment projections and the actual shipment 
data received from AHRI for 2010 through 2015 along with the reduction 
in model counts since 2015 (see section III.B.3) suggest that the 
number of shipments have continued to decline for the vented heater 
market. Therefore, DOE has determined the shipments data relied on for 
its prior determination are appropriate for the present determination.
h. National Energy Savings
    As explained in sections III.B.3.d. through III.B.3.g. of this 
document, the technology options, energy use, and shipments for DHE 
have not changed significantly since the April 2010 final rule and 
October 2016 final determination. Accordingly, the national energy 
savings are expected to be largely the same as the national energy 
savings projected in the April 2010 final rule. In the April 2010 final 
rule, DOE estimated that the max-tech TSL (TSL 6) would result in an 
additional 0.13 quads of site energy savings over 30 years, as compared 
to the adopted TSL (i.e., the current standard levels).\26\ The site 
energy savings from the max-tech TSL represent approximately a six-
percent reduction compared to the total 30-year site energy 
consumption, as compared to the current standard levels.\27\
---------------------------------------------------------------------------

    \26\ DOE used the April 2010 final rule National Impact Analysis 
(NIA) spreadsheet for DHE to calculate the site energy savings 
difference between the max-tech level (TSL 6) and current standard 
level (TSL 2). The site energy savings are available in the 
``National Impacts Summary'' worksheet for each product class. The 
site energy savings calculation was adjusted to take into account 
the site energy savings over 30 years of product shipments (2013-
2042) and to include the full lifetime of products shipped over the 
30 year period (2013-2042). The published version of the DHE NIA 
spreadsheet only accounted for site energy savings from 2013-2042. 
The resulting 30-year site energy savings per product class are: 
0.02 quads for gas wall fan type vented heaters, 0.07 quads for gas 
wall gravity type vented heaters, 0.00 quads for gas floor vented 
heaters, and 0.04 quads for gas room vented heaters. The DHE NIA 
spreadsheet (published March 23, 2010) (Available at: 
www.regulations.gov/document?D=EERE-2006-STD-0129-0148) (Last 
accessed Aug. 13, 2020).
    \27\ DOE used the April 2010 final rule NIA spreadsheet for DHE 
to calculate the total 30-year site energy consumption at the 
current standard levels (then TSL 2). The ``Base Case Consumption'' 
worksheet is used to calculate the total site energy consumption at 
the current standard levels for each product class. This worksheet 
includes the total ``source energy (Quads)'' per product class. DOE 
converted the total source energy to site energy by removing the 
site-to-source factors (which come from the ``EnergyPrices 
SitetoSource'' worksheet) from the calculation. The site energy 
consumption calculation was then expanded to take into account the 
site energy consumption over 30 years of product shipments (2013-
2042) and include the full lifetime of products shipped over the 30 
year period (2013-2042), to match the site energy savings 
calculation. Finally, the totals per product class were adjusted to 
take into account the energy savings for the current standard (then 
TSL 2). The resulting 30-year site energy consumption totals per 
product class are: 0.55 quads for gas wall fan type vented heaters, 
1.30 quads for gas wall gravity type vented heaters, 0.02 quads for 
gas floor vented heaters, and 0.24 quads for gas room vented 
heaters. The 0.13 quads of 30-year site energy savings from the max-
tech TSL are then divided by the resulting total value of 2.11 quads 
for the 30-year site energy consumption at the current standard 
levels, which results in the 6-percent value.
---------------------------------------------------------------------------

    The April 2010 final rule did not contemplate or include a TSL with 
specific provisions for a condensing gas wall fan type vented heater. 
DOE identified one manufacturer of condensing gas fan type vented 
heaters which produces two models at 90-percent AFUE.
i. Manufacturer Impacts
December 2009 NOPR
    As stated in section II.B.3.b. of this document, in the NOPR that 
preceded the April 2010 final rule, DOE proposed to amend standards for 
vented heaters to TSL 3. 74 FR 65852, 65973 (Dec. 11, 2009). In 
response to that proposal, DOE received several comments expressing 
concerns that:
     Shipments of vented heaters were low, and, therefore, 
potential energy savings were low;
     Low shipments would make it difficult for manufacturers to 
recoup the costs to comply with amended standards;
     Product offerings may be limited as a response to amended 
standards;
     Manufacturers may exit the industry as a result of amended 
standards;
     Employment may be negatively impacted due to reduced 
product lines and insufficient return on investment. 75 FR 20112, 20218 
(April 16, 2010).
April 2010 Final Rule
    In the April 2010 final rule, DOE additionally found that the 
industry had gone through considerable consolidation due to decreased 
shipments, that product lines were primarily maintained to provide 
replacement products, and that some small business manufacturers could 
be disproportionately affected by a more-stringent standard. 75 FR 
20112, 20199, and 20218 (April 16, 2010). As mentioned in section 
III.B.3.g. of this document, the April 2010 final rule presented a 
trend of declining annual shipments throughout the 30-year analysis 
period. As discussed in section II.B.2.b. of this document, DOE 
ultimately adopted standards at TSL 2 for vented heaters, which was one 
TSL below the proposed level. In rejecting proposed TSL 3, DOE 
concluded that the benefits of higher potential standard levels would 
be outweighed by the economic burden on some consumers, the large 
capital conversion costs that could result in a large reduction in INPV 
for the manufacturers of vented heaters, and the potential for small 
business manufacturers of vented heaters to reduce their product 
offerings or to be forced to exit the market completely, thereby 
reducing competition in the vented heater market. 75 FR 20112, 20218-
20219 (April 16, 2010).
October 2016 Final Determination
    In the April 2016 proposed determination that preceded the October 
2016 final determination, DOE tentatively determined that the 
conclusions presented in the April 2010 final rule were still valid. 81 
FR 21276, 21281 (April 11, 2016). Further, DOE has found that the 
number of models offered in each of the vented heater product classes 
decreased in the time between the April 2010 final rule and the October 
2016 final determination, which indicated that the vented heater market 
was shrinking and product lines were mainly maintained as replacements 
for current vented heater products. 81 FR 71325, 71327 (Oct. 17, 2016).
    In the October 2016 final determination, DOE noted that the number 
of manufacturers declined from six to four, indicating consolidation in 
the vented heater industry. 81 FR 71325, 71328 (Oct. 17, 2016).
Current Analysis of Manufacturer Impacts
    In DOE's most recent review of the market, a total of four 
manufacturers were identified within the vented heater industry. At 
least two of those four manufacturers are domestic small businesses. In 
the December 2020 NOPD, DOE had previously identified five 
manufacturers, four of which were domestic small businesses. 85 FR 
77017, 77028 (Dec. 1, 2020). Between the

[[Page 66420]]

publication of the December 2020 NOPD and this final determination one 
small business manufacturer purchased the other small business 
manufacturer's vented heater brand. It is unclear at this time whether 
the combined business remains below the SBA's headcount threshold of 
500 people to be considered a small business.
    In the February 2019 RFI, DOE requested comment on annual sales 
data for each vented heater product class from 2008-2018. 84 FR 6095, 
6105 (Feb. 26, 2019). DOE did not receive any comment or information 
regarding the number and classification of manufacturers presented in 
the February 2019 RFI and December 2020 NOPD and, therefore, considers 
its previous analysis of industry shipments to still be valid. DOE also 
did not receive any comments or data suggesting that DOE's analysis of 
the DHE market in the April 2016 NOPD was inaccurate. AHRI supported 
DOE's tentative conclusion that if new or amended standards were 
proposed, DHE manufacturers would need to undergo significant design 
upgrades to existing products that would not be economically supported 
by current sales volumes. (AHRI, No. 18 at p. 1) Because the market 
conditions are substantially the same as when DOE considered 
manufacturer impacts for the April 2010 final rule and October 2016 
final determination, DOE concludes that manufacturers would likely face 
similar impacts under more-stringent standards as those previously 
discussed.

C. Final Determination

    In response to the December 2020 NOPD, AHAM, AHRI, the Joint Gas 
Utilities, and Ms. Spotswood supported DOE's tentative determination 
not to amend standards. (AHAM, No. 19 at p. 1; AHRI, No. 18 at p. 1; 
Joint Gas Utilities, No. 15 at p. 3; Ms. Spotswood, No. 14 at p. 1) The 
CA IOUs urged DOE to set aside its tentative conclusion not to amend 
DHE standards, gather additional and more current technical/market 
data, and conduct a thorough energy savings, market, and technical 
analysis before proceeding. (CA IOUs, No. 17 at p. 4)
    After carefully considering the comments on the February 2019 RFI 
and the December 2020 NOPD, along with the available data and 
information, DOE has determined that energy conservation standards for 
DHE do not need to be amended, for the reasons explained in the 
paragraphs immediately following. As discussed in the preceding 
sections, DOE's review of the current DHE market indicates that the 
technology options, product cost, and energy use have not changed 
significantly since the October 2016 final determination. As such, the 
conclusions found in the April 2010 final rule and October 2016 final 
determination are still valid.
1. Unvented Heaters
    As discussed in sections II.B.2.a. and II.B.3.a. of this document, 
the efficiency inherent with unvented electric heaters provides 
negligible opportunity for energy savings, because any heat loss of the 
product is transferred to the conditioned space and not wasted. 
Therefore, consistent with previous rulemakings in which it has 
addressed unvented electric heaters, DOE has determined that energy 
conservation standards for unvented electric heaters are not needed.
    As discussed in section III.B.2 of this document, there may be 
potential for energy savings for unvented gas and oil heaters subject 
to potential test procedure amendments to Appendix G that would require 
the measurement of standing pilot light energy use in unvented heaters 
that are thermostatically-controlled. As stated, further analysis is 
required to fully understand consumer behavior regarding actual 
operation of unvented heaters. In particular, the extent to which 
consumers turn the standing pilot light off during the non-heating 
season requires further investigation. Given the lack of adequate 
information on consumer behavior and test procedure provisions that 
would capture the related energy savings, DOE has determined not to 
establish energy conservation standards for unvented gas and oil 
heaters at this time.
2. Vented Heaters
    For vented heaters, DOE analyzed each product class--gas wall fan 
type, gas wall gravity type, gas floor, and gas room--separately in the 
market and evaluated: Technology assessment (sections III.B.3.a. and 
III.B.3.b. of this document), the screening analysis (section 
III.B.3.c. of this document), the engineering analysis (section 
III.B.3.d. of this document), the LCC and PBP analysis (section 
III.B.3.f. of this document), the shipments analysis (section 
III.B.3.g. of this document), all vented heaters together in the energy 
use analysis (section III.B.3.e. of this document), the national energy 
savings analysis (section III.B.3.h. of this document), and the 
manufacturer impact analysis (section III.B.3.i. of this document) when 
making a determination of whether amended standards are justified under 
EPCA.
a. Technological Feasibility
    EPCA mandates that DOE consider whether amended energy conservation 
standards for vented heaters would be technologically feasible. (42 
U.S.C. 6295(m)(1)(A) and 42 U.S.C. 6295(n)(2)(B)) For gas floor vented 
heaters, as discussed in section III.B.3.d. of this document, the 
maximum available efficiency level on the market is at the baseline 
efficiency level (i.e., the current standard). Since there are no 
models available on the market above baseline and DOE is unaware of any 
prototype designs that have demonstrated higher efficiencies for gas 
floor vented heaters, DOE concludes that more stringent standards for 
gas floor vented heaters are not technologically feasible.
    DOE has determined that there are technology options that would 
improve the efficiency of gas wall fan type vented heaters, gas wall 
gravity type vented heaters, and gas room vented heaters. These 
technology options are being used in commercially available gas wall 
fan type vented heaters, gas wall gravity type vented heaters, and gas 
room vented heaters and, therefore, are technologically feasible. (See 
section III.B.3.b. of this document for further information.) Hence, 
DOE has determined that amended energy conservation standards for gas 
wall fan type vented heaters, gas wall gravity type vented heaters, and 
gas room vented heaters are technologically feasible.
b. Cost-Effectiveness
    As the next step in the agency's analysis, EPCA requires DOE to 
then consider whether amended energy conservation standards for gas 
wall fan type vented heaters, gas wall gravity type vented heaters, and 
gas room vented heaters would be cost-effective through an evaluation 
of the savings in operating costs throughout the estimated average life 
of the covered product compared to any increase in the price of, or in 
the initial charges for, or maintenance expenses of the covered 
products which are likely to result from the amended standard. (42 
U.S.C. 6295(m)(1)(A), 42 U.S.C. 6295(n)(2)(C), and 42 U.S.C. 
6295(o)(2)(B)(i)(II)) As discussed in sections II.B.2.b and III.B.3.f. 
of this document, DOE determined that the LCC and PBP analyses of TSL 
3, the TSL immediately above the level adopted as a Federal standard 
(and which was proposed in the October 2009 NOPR and rejected in the 
April 2010 final rule), as evaluated in the April 2010 final rule, 
indicated that initial costs to some consumers

[[Page 66421]]

outweighed the consumer benefits. 75 FR 20112, 20218-20219 (April 16, 
2010); 81 FR 71325, 71327 (Oct. 17, 2016) DOE's full determination in 
the April 2010 final rule was also based on the impact to manufacturers 
as discussed in section III.B.3.i. and section III.C.2.d. of this 
document. DOE has determined that the LCC and PBP analyses conducted 
for the April 2010 final rule remain generally applicable.
c. Energy Savings
    As discussed in section III.B.3.e. of this document, DOE has 
determined it appropriate to base its energy savings analysis on the 
estimates developed during the April 2010 final rule and October 2016 
final determination. Based on its analysis, DOE estimated that for gas 
wall fan type vented heaters, gas wall gravity type vented heaters, and 
gas room vented heaters, potential site energy savings from more-
stringent standards at the max-tech level would be 0.13 quads.
d. Further Considerations
    As previously discussed, DOE is required to publish either a 
notification of a determination that standards for vented heaters do 
not need to be amended, or a NOPR including new proposed standards. (42 
U.S.C. 6295(m)(1) and 42 U.S.C. 6295(m)(3)(B)) If DOE publishes a NOPR 
including new proposed standards, the proposed standards must be 
designed to achieve the maximum improvement in energy efficiency, which 
DOE determines is technologically feasible and economically justified. 
(42 U.S.C. 6295(m)(1)(B); 42 U.S.C. 6295(o)(2)(A)). In determining 
whether new proposed standards would be economically justified, DOE 
must determine whether the benefits of the standards exceed their 
burdens by considering, to the greatest extent practicable, the seven 
statutory criteria previously discussed. (42 U.S.C. 6295(o)(2)(B)(i))
    For gas wall fan type vented heaters, gas wall gravity type vented 
heaters, and gas room vented heaters, DOE considered the findings of 
the April 2010 final rule and the October 2016 final determination, in 
addition to comments received in response to the February 2019 RFI and 
December 2020 NOPD. As discussed in section III.B.3.g. of this 
document, the number of vented heater shipments were projected to 
decline in the April 2010 final rule, and comments received during the 
rulemaking that resulted in the October 2016 final determination 
indicated that shipments have indeed continued to decline since the 
previous analysis was conducted. Further, DOE stated in the April 2016 
NOPD which preceded the October 2016 final determination that shipments 
were in fact lower than projected in the April 2010 final rule, 
indicating that the decline has been faster than expected. 81 FR 21276, 
21281 (April 11, 2016) This supports the notion that the vented heater 
market is continuing to shrink, that product lines are mainly 
maintained as replacements for existing vented heaters units, and that 
new product lines generally are not being developed. In addition, the 
one new manufacturer of vented heaters that has entered the market 
since the October 2016 final determination only produces two models, 
neither of which have AFUE values outside of the range offered by other 
manufacturers, or any other characteristics that make them unique from 
other products already on the market and one small business 
manufacturer has left the market. As discussed in sections III.B.3.a. 
and III.B.3.d. of this document, DOE found that the available AFUE 
values have largely stayed the same or decreased, with more-efficient 
products being taken off the market or rerated to lower AFUE values.
    As discussed in section III.B.3.f. of this document, an examination 
of how the inputs to the LCC and PBP analysis have changed since the 
April 2010 final rule indicates that the LCC and PBP results from the 
April 2010 final rule would be comparable today. As discussed in 
section III.B.3.i. of this document, DOE did not receive any comments 
or data in response to the February 2019 RFI or December 2020 NOPD that 
suggested a change in the historical trends within this industry.
    In the April 2010 final rule, DOE rejected higher standards, 
finding that capital conversion costs would lead to a large reduction 
in INPV and that small businesses would be disproportionately impacted, 
which would outweigh any benefits from higher standard levels. 75 FR 
20112, 20217-20218 (April 16, 2010) Upon reviewing the current market 
for vented heaters, DOE has determined that its prior determination 
regarding the impact on INPV remains valid (i.e., standard levels above 
the current Federal energy conservation standard would require 
manufacturers to make significant capital investments of the magnitude 
initially projected in the April 2010 final rule). As shipments for 
vented heaters have continued to decrease, manufacturers would be 
required to make investments to update model lines and manufacturing 
facilities with fewer shipments over which to spread the cost. This 
would lead to even more difficulty in recovering their investment than 
was projected in the April 2010 final rule.
    In addition, DOE has determined that its conclusions regarding 
small business impacts from the April 2010 final rule and the October 
2016 final determination are still valid concerns (i.e., small 
businesses would likely reduce product offerings or leave the vented 
heater market entirely if the standard were to be set above the level 
adopted in that rulemaking). Two of the four identified manufacturers 
of gas wall fan type vented heaters, gas wall gravity type vented 
heaters, and gas room vented heaters are small businesses.
e. Standby Mode and Off Mode
    EPCA requires DOE to incorporate standby mode and off mode energy 
use into a single amended or new standard (if feasible) or prescribe a 
separate standard for standby mode and off mode energy consumption in 
any final rule establishing or revising a standard for a covered 
product, adopted after July 1, 2010. (42 U.S.C. 6295(gg)(3)(A)-(B)) 
Because DOE is not amending standards for DHE in this rule, DOE is not 
required to adopt amended standards that include standby and off mode 
energy use. DOE notes that fossil fuel energy use in standby mode and 
off mode is already included in the AFUE metric, and DOE anticipates 
that electric standby and off mode energy use is small in comparison to 
fossil fuel energy use.
f. Summary
    For gas floor vented heaters, DOE concludes that more-stringent 
standards for gas floor vented heaters are not technologically 
feasible. As such, DOE also concludes that there is no conservation of 
energy possible from including gas floor vented heaters. Therefore, DOE 
has determined that amended standards for gas floor vented heaters are 
not needed.
    DOE has determined that, for gas wall fan type vented heaters, gas 
wall gravity type vented heaters, and gas room vented heaters, the 
potential benefits from amended standards would be outweighed by 
burdens on manufacturers. As such, DOE has determined that new proposed 
standards would not be economically justified. Therefore, DOE has 
determined that amended standards for gas wall fan type vented heaters, 
gas wall gravity type heaters, and gas room vented heaters are not 
justified at this time.

[[Page 66422]]

IV. Procedural Issues and Regulatory Review

A. Review Under Executive Order 12866

    The Office of Management and Budget (OMB) has determined that this 
final determination does not constitute a ``significant regulatory 
action'' under section 3(f) of Executive Order (E.O.) 12866, 
``Regulatory Planning and Review,'' 58 FR 51735 (Oct. 4, 1993). 
Accordingly, this action was not subject to review under E.O. 12866 by 
the Office of Information and Regulatory Affairs (OIRA) at OMB.

B. Review Under the Regulatory Flexibility Act

    The Regulatory Flexibility Act (5 U.S.C. 601 et seq.) requires 
preparation of an initial regulatory flexibility analysis (IRFA) 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 (August 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 DOE rulemaking process. 68 FR 7990 DOE has made 
its procedures and policies available on the Office of the General 
Counsel's website (www.energy.gov/gc/office-general-counsel).
    DOE reviewed this final determination under the provisions of the 
Regulatory Flexibility Act and the policies and procedures published on 
February 19, 2003. DOE is proposing to not amend standards for DHE. On 
the basis of the foregoing, DOE certifies that the final determination 
will not have a ``significant economic impact on a substantial number 
of small entities.'' Accordingly, DOE has not prepared an FRFA for this 
final 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).

C. Review Under the Paperwork Reduction Act

    This final determination, which determines that amended energy 
conservation standards for DHE are not justified, would impose no new 
informational or recordkeeping requirements. Accordingly, OMB clearance 
is not required under the Paperwork Reduction Act. (44 U.S.C. 3501 et 
seq.)

D. Review Under the National Environmental Policy Act of 1969

    Pursuant to the National Environmental Policy Act (NEPA) of 1969, 
DOE has analyzed this proposed action in accordance with NEPA and DOE's 
NEPA implementing regulations (10 CFR part 1021). DOE has determined 
that this rule qualifies for categorical exclusion under 10 CFR part 
1021, subpart D, appendix A5 because it is an interpretive rulemaking 
that does not change the environmental effect of the rule and meets the 
requirements for application of a CX. See 10 CFR 1021.410. Therefore, 
DOE has determined that promulgation of this rule is not a major 
Federal action significantly affecting the quality of the human 
environment within the meaning of NEPA, and does not require an EA or 
EIS.

E. Review Under Executive Order 13132

    E.O. 13132, ``Federalism,'' 64 FR 43255 (August 10, 1999), imposes 
certain requirements on Federal agencies formulating and implementing 
policies or regulations that preempt State law or that have federalism 
implications. E.O. 13132 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. E.O. 13132 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 final 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 final 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) As this final determination would 
not amend the standards for DHE, there is no impact on the policymaking 
discretion of the States. Therefore, no action is required by E.O. 
13132.

F. Review Under Executive Order 12988

    Regarding 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 E.O. 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 final determination meets the relevant standards of E.O. 12988.

G. Review Under the Unfunded Mandates Reform Act of 1995

    Title II of the Unfunded Mandates Reform Act of 1995 (UMRA) 
requires each Federal agency to assess the effects of Federal 
regulatory actions on State, local, and Tribal governments and the 
private sector. 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

[[Page 66423]]

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 policy statement on its process for 
intergovernmental consultation under UMRA. 62 FR 12820. DOE's policy 
statement is also available at: www.energy.gov/sites/prod/files/gcprod/documents/umra_97.pdf.
    DOE examined this final determination according to UMRA and its 
policy statement and determined that the final determination does not 
contain a Federal intergovernmental mandate, nor is it expected to 
require expenditures of $100 million or more in any one year. As a 
result, the analytical requirements of UMRA do not apply.

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

    Section 654 of the Treasury and General Government Appropriations 
Act, 1999 (Pub. L. 105-277) requires Federal agencies to issue a Family 
Policymaking Assessment for any rule that may affect family well-being. 
This final 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.

I. Review Under Executive Order 12630

    Pursuant to E.O. 12630, ``Governmental Actions and Interference 
with Constitutionally Protected Property Rights,'' 53 FR 8859 (March 
18, 1988), DOE has determined that this final determination would not 
result in any takings that might require compensation under the Fifth 
Amendment to the U.S. Constitution.

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

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

K. Review Under Executive Order 13211

    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 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 E.O. 
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.
    This final determination, which does not amend the energy 
conservation standards for DHE, is not a significant regulatory action 
under E.O. 12866. Moreover, it will not have a significant adverse 
effect on the supply, distribution, or use of energy, nor has it been 
designated as a significant energy action by the Administrator at OIRA. 
Therefore, it is not a significant energy action, and accordingly, DOE 
has not prepared a Statement of Energy Effects.

L. Information Quality

    On December 16, 2004, OMB, in consultation with the Office of 
Science and Technology Policy (OSTP), issued its Final Information 
Quality Bulletin for Peer Review (the Bulletin). 70 FR 2664 (Jan. 14, 
2005). The Bulletin establishes that certain scientific information 
shall be peer reviewed by qualified specialists before it is 
disseminated by the Federal Government, including influential 
scientific information related to agency regulatory actions. The 
purpose of the bulletin is to enhance the quality and credibility of 
the Government's scientific information. Under the Bulletin, the energy 
conservation standards rulemaking analyses are ``influential scientific 
information,'' which the Bulletin defines as ``scientific information 
the agency reasonably can determine will have, or does have, a clear 
and substantial impact on important public policies or private sector 
decisions.'' Id. at 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 peer review report 
pertaining to the energy conservation standards rulemaking 
analyses.\28\ 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 considering amended energy conservation standards in the case of 
the present action.
---------------------------------------------------------------------------

    \28\ ``Energy Conservation Standards Rulemaking Peer Review 
Report'' (2007) (Available at: www.energy.gov/eere/buildings/downloads/energy-conservation-standards-rulemaking-peer-review-report-0).
---------------------------------------------------------------------------

V. Approval of the Office of the Secretary

    The Secretary of Energy has approved publication of this final 
determination.

List of Subjects in 10 CFR Part 430

    Administrative practice and procedure, Confidential business 
information, Energy conservation, Household appliances, Imports, 
Intergovernmental relations, Reporting and recordkeeping requirements, 
and Small businesses.

Signing Authority

    This document of the Department of Energy was signed on November 
17, 2021, by Kelly J. Speakes-Backman, Principal Deputy 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.


[[Page 66424]]


    Signed in Washington, DC, on November 18, 2021.
Treena V. Garrett,
Federal Register Liaison Officer, U.S. Department of Energy.
[FR Doc. 2021-25537 Filed 11-22-21; 8:45 am]
BILLING CODE 6450-01-P