[Federal Register Volume 87, Number 19 (Friday, January 28, 2022)]
[Proposed Rules]
[Pages 4513-4520]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-01765]


 ========================================================================
 Proposed Rules
                                                 Federal Register
 ________________________________________________________________________
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 This section of the FEDERAL REGISTER contains notices to the public of 
 the proposed issuance of rules and regulations. The purpose of these 
 notices is to give interested persons an opportunity to participate in 
 the rule making prior to the adoption of the final rules.
 
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 

  Federal Register / Vol. 87, No. 19 / Friday, January 28, 2022 / 
Proposed Rules  

[[Page 4513]]



DEPARTMENT OF ENERGY

10 CFR Part 430

[EERE-2021-BT-STD-0031]
RIN 1904-AF19


Energy Conservation Program: Energy Conservation Standards for 
Consumer Furnaces

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

ACTION: Request for information.

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SUMMARY: The U.S. Department of Energy (``DOE'') is initiating an 
effort to determine whether to amend the current energy conservation 
standards for certain classes of consumer furnaces. Under the Energy 
Policy and Conservation Act, as amended, DOE must review these 
standards at least once every six years and publish either a notice of 
proposed rulemaking (``NOPR'') to propose new standards or a 
notification of determination that the existing standards do not need 
to be amended. This request for information (``RFI'') solicits 
information from the public to help DOE determine whether amended 
standards for non-weatherized oil-fired, mobile home oil-fired, 
weatherized oil-fired, weatherized gas, and electric consumer furnaces 
would result in significant energy savings and whether such standards 
would be technologically feasible and economically justified. DOE also 
welcomes written comments from the public on any subject within the 
scope of this document (including those topics not specifically 
raised), as well as the submission of data and other relevant 
information.

DATES: Written comments and information are requested and will be 
accepted on or before February 28, 2022.

ADDRESSES: Interested persons are encouraged to submit comments using 
the Federal eRulemaking Portal at www.regulations.gov. Follow the 
instructions for submitting comments. Alternatively, interested persons 
may submit comments, identified by docket number EERE-2021-BT-STD-0031, 
by any of the following methods:
    1. Federal eRulemaking Portal: www.regulations.gov. Follow the 
instructions for submitting comments.
    2. Email: To [email protected]. Include docket 
number EERE-2021-BT-STD-0031 in the subject line of the message.
    No telefacsimiles (``faxes'') will be accepted. For detailed 
instructions on submitting comments and additional information on this 
process, see section IV of this document.
    Although DOE has routinely accepted public comment submissions 
through a variety of mechanisms, including postal mail and hand 
delivery/courier, the Department has found it necessary to make 
temporary modifications to the comment submission process in light of 
the ongoing coronavirus 2019 (``COVID-19'') pandemic. DOE is currently 
suspending receipt of public comments via postal mail and hand 
delivery/courier. If a commenter finds that this change poses an undue 
hardship, please contact Appliance Standards Program staff at (202) 
586-1445 to discuss the need for alternative arrangements. Once the 
COVID-19 pandemic health emergency is resolved, DOE anticipates 
resuming all of its regular options for public comment submission, 
including postal mail and hand delivery/courier.
    Docket: The docket for this activity, which includes Federal 
Register notices, comments, and other supporting documents/materials, 
is available for review at www.regulations.gov. All documents in the 
docket are listed in the www.regulations.gov index. However, some 
documents listed in the index, such as those containing information 
that is exempt from public disclosure, may not be publicly available.
    The docket web page can be found at: www.regulations.gov/docket/EERE-2021-BT-STD-0031. The docket web page contains instructions on how 
to access all documents, including public comments, in the docket. See 
section III for information on how to submit comments through 
www.regulations.gov.

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. Amelia Whiting, U.S. Department of Energy, Office of the 
General Counsel, GC-33, 1000 Independence Avenue SW, Washington, DC 
20585-0121. Telephone: (202) 586-2588. Email: 
[email protected].
    For further information on how to submit a comment or review other 
public comments and the docket, contact the Appliance and Equipment 
Standards Program staff at (202) 287-1445 or by email: 
[email protected].

SUPPLEMENTARY INFORMATION:

Table of Contents

I. Introduction
    A. Authority
    B. Rulemaking History
    C. Deviation From Appendix A
II. Request for Information
    A. Scope & Product Classes
    B. Significant Savings of Energy
    1. Energy Use Analysis
    2. Shipments
    C. Technological Feasibility
    1. Technology Options
    2. Screening Analysis
    3. Engineering Efficiency Analysis
    D. Economic Justification
    1. Life-Cycle Cost and Payback Period Analysis
    2. Manufacturer Impact Analysis
III. Submission of Comments

I. Introduction

A. Authority and Background

    The Energy Policy and Conservation Act, as amended (``EPCA''),\1\ 
authorizes DOE to regulate the energy efficiency of a number of 
consumer products and certain industrial equipment. (42 U.S.C. 6291-
6317) Title III, Part B \2\ of EPCA established the Energy Conservation 
Program for Consumer Products Other Than Automobiles. These products 
include consumer furnaces, the subject of this document. (42 U.S.C. 
6292(a)(5)). EPCA prescribed energy conservation standards for these 
products, and

[[Page 4514]]

directed DOE to conduct two cycles of rulemakings to determine whether 
to amend these standards. (42 U.S.C. 6295(f)).
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    \1\ All references to EPCA in this document refer to the statute 
as amended through the Energy Act of 2020, Public Law 116-260 (Dec. 
27, 2020).
    \2\ For editorial reasons, upon codification in the U.S. Code, 
Part B was redesignated Part A.
---------------------------------------------------------------------------

    Under EPCA, DOE's energy conservation program consists essentially 
of four parts: (1) Testing, (2) labeling, (3) Federal energy 
conservation standards, and (4) certification and enforcement 
procedures. Relevant provisions of EPCA 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).
    Federal energy efficiency requirements for covered products 
established under EPCA generally supersede State laws and regulations 
concerning energy conservation testing, labeling, and standards. (42 
U.S.C. 6297(a)-(c)) DOE may, however, grant waivers of Federal 
preemption in limited instances for particular State laws or 
regulations, in accordance with the procedures and other provisions set 
forth under. (42 U.S.C. 6297(d)).
    As previously noted, EPCA established energy conservation standards 
for consumer furnaces, which are expressed in terms of minimum annual 
fuel utilization efficiency (``AFUE''). (42 U.S.C. 6295(f)(1)-(2)) 
Pursuant to EPCA, DOE was required to conduct two rounds of rulemaking 
to consider amended energy conservation standards for consumer 
furnaces. (42 U.S.C. 6295(f)(4)(B) and (C)) In satisfaction of the 
first round of rulemaking under 42 U.S.C. 6295(f)(4)(B), DOE published 
a final rule on November 19, 2007 (``November 2007 final rule'') that 
revised the initial standards for four classes of consumer furnaces 
(i.e., non-weatherized gas furnaces (``NWGFs''), mobile home gas 
furnaces (``MHGFs''), weatherized gas furnaces (``WGFs''), and non-
weatherized oil-fired furnaces (``NWOFs''), but left them in place for 
two product classes (i.e., mobile home oil-fired furnaces (``MHOFs'') 
and weatherized oil-fired furnaces (``WOFs'')). 72 FR 65136, 65137. 
Compliance with the amended standards established in the November 2007 
final rule was to be required beginning November 19, 2015. Id. at 72 FR 
65136, 65169.
    On June 27, 2011, DOE published a direct final rule (``DFR'') 
(``June 2011 DFR'') revising the energy conservation standards for 
consumer furnaces pursuant to the voluntary remand in State of New 
York, et al. v. Department of Energy, et al. 76 FR 37408, 37415. In the 
June 2011 DFR, DOE addressed the energy conservation standards for the 
same six product classes addressed in the November 2007 final rule 
(i.e., NWGFs, MHGFs, WGFs, NWOF, MHOFs, and WOFs) plus electric 
furnaces. The June 2011 DFR amended the existing AFUE energy 
conservation standards for NWGFs, MHGFs, and NWOFs, and amended the 
compliance date (but left the existing standards in place) for WGFs. 
The June 2011 DFR also established electrical standby mode and off mode 
standards for NWGFs, MHGFs, NWOFs, MHOFs, and electric furnaces. DOE 
confirmed the standards and compliance dates promulgated in the June 
2011 DFR in a notice of effective date and compliance dates published 
on October 31, 2011 (``October 2011 notice''). 76 FR 67037. After 
publication of the October 2011 notice, the American Public Gas 
Association sued DOE to invalidate the rule as it pertained to NWGFs. 
Petition for Review, American Public Gas Association, et al. v. 
Department of Energy, et al., No. 11-1485 (D.C. Cir. filed Dec. 23, 
2011). On April 24, 2014, the Court granted a motion that approved a 
settlement agreement that was reached between DOE, APGA, and the 
various intervenors in the case, in which DOE agreed to a remand of the 
non-weatherized gas furnace and mobile home gas furnace portions of the 
June 2011 direct final rule in order to conduct further notice-and-
comment rulemaking. Accordingly, the Court's order vacated the June 
2011 DFR in part (i.e., those portions relating to non-weatherized gas 
furnaces and mobile home gas furnaces) and remanded to the agency for 
further rulemaking. 86 FR 43120, 43124 (Aug. 6, 2021). As a result, the 
standards established by the June 2011 DFR for NWGFs and MHGFs did not 
go into effect. The court order left in place the standards for WGFs, 
NWOFs, MHOFs, WOFs, and electric furnaces. Amended standards for NWGFs 
and MHGFs are being addressed in a separate rulemaking. This RFI covers 
WGFs, NWOFs, MHOFs, WOFs, and electric furnaces.
    On January 15, 2021, in response to a petition for rulemaking 
submitted by the American Public Gas Association, Spire, Inc., the 
Natural Gas Supply Association, the American Gas Association, and the 
National Propane Gas Association (83 FR 544883; Nov. 1, 2018) DOE 
published a final interpretive rule determining that, in the context of 
residential furnaces, commercial water heaters, and similarly situated 
products/equipment, use of non-condensing technology (and associated 
venting constitutes a performance-related ``feature'' under EPCA that 
cannot be eliminated through adoption of an energy conservation 
standard. 86 FR 4776 (``January 2021 Final Interpretive Rule'').
    However, on December 29, 2021, DOE subsequently published a final 
interpretive rule that returns to the previous and long-standing 
interpretation (in effect prior to the January 15, 2021 final 
interpretive rule), under which the technology used to supply heated 
air or hot water is not a performance-related ``feature'' that provides 
a distinct consumer utility under EPCA. 86 FR 73947 (``December 2021 
Final Interpretive Rule'').
    EPCA also requires that, not later than 6 years after the issuance 
of any final rule establishing or amending a standard, DOE evaluate the 
energy conservation standards for each type of covered product, 
including those at issue here, and publish either a notification of 
determination that the standards do not need to be amended, or a NOPR 
that includes new proposed energy conservation standards (proceeding to 
a final rule, as appropriate). (42 U.S.C. 6295(m)(1)) If DOE determines 
not to amend a standard based on the statutory criteria, not later than 
3 years after the issuance of a final determination not to amend 
standards, DOE must publish either a notification of determination that 
standards for the product do not need to be amended, or a NOPR 
including new proposed energy conservation standards (proceeding to a 
final rule, as appropriate). (42 U.S.C. 6295(m)(3)(B)) DOE must make 
the analysis on which a determination is based publicly available and 
provide an opportunity for written comment. (42 U.S.C. 6295(m)(2)).
    In proposing new standards, DOE must evaluate that proposal against 
the criteria of 42 U.S.C. 6295(o), as described in the following 
section, and follow the rulemaking procedures set out in 42 U.S.C. 
6295(p). (42 U.S.C. 6295(m)(1)(B)) If DOE decides to amend the standard 
based on the statutory criteria, DOE must publish a final rule not 
later than two years after energy conservation standards are proposed. 
(42 U.S.C. 6295(m)(3)(A)).
    DOE is publishing this RFI to collect data and information to 
inform its decision consistent with its obligations under EPCA.

B. Rulemaking Process

    DOE must follow specific statutory criteria for prescribing new or 
amended standards for covered products. EPCA requires that any new or 
amended

[[Page 4515]]

energy conservation standard prescribed by the Secretary of Energy 
(``Secretary'') be designed to achieve the maximum improvement in 
energy or water efficiency that is technologically feasible and 
economically justified. (42 U.S.C. 6295(o)(2)(A)) The Secretary may not 
prescribe an amended or new standard that will not result in 
significant conservation of energy, or is not technologically feasible 
or economically justified. (42 U.S.C. 6295(o)(3)).
    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)) 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.\3\ For example, the United States has now rejoined 
the Paris Agreement on February 19, 2021. As part of that agreement, 
the United States has committed to reducing GHG emissions in order to 
limit the rise in mean global temperature. As such, energy savings that 
reduce GHG emission have taken on greater importance. 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 holistic picture of 
the impacts of energy conservation standards. Accordingly, DOE 
evaluates the significance of energy savings on a case-by-case basis.
---------------------------------------------------------------------------

    \3\ See 86 FR 70892, 70901 (Dec. 13, 2021).
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    To determine whether a standard is economically justified, EPCA 
requires that DOE determine whether the benefits of the standard exceed 
its burdens by considering, to the greatest extent practicable, the 
following seven factors:

    (1) The economic impact of the standard on the manufacturers and 
consumers of the affected products;
    (2) The savings in operating costs throughout the estimated 
average life of the product compared to any increases in the initial 
cost, or maintenance expenses likely to result from the standard;
    (3) The total projected amount of energy and water (if 
applicable) savings likely to result directly from the standard;
    (4) Any lessening of the utility or the performance of the 
products likely to result from the standard;
    (5) The impact of any lessening of competition, as determined in 
writing by the Attorney General, that is likely to result from the 
standard;
    (6) The need for national energy and water conservation; and
    (7) Other factors the Secretary considers relevant.
    (42 U.S.C. 6295(o)(2)(B)(i)(I)-(VII))

    DOE fulfills these and other applicable requirements by conducting 
a series of analyses throughout the rulemaking process. Table I.1 shows 
the individual analyses that are performed to satisfy each of the 
requirements within EPCA.

       Table I.1--EPCA Requirements and Corresponding DOE Analysis
------------------------------------------------------------------------
           EPCA requirement                Corresponding DOE analysis
------------------------------------------------------------------------
Significant Energy Savings...........   Shipments Analysis.
                                        National Impact
                                        Analysis.
                                        Energy and Water Use
                                        Determination.
Technological Feasibility............   Market and Technology
                                        Assessment.
                                        Screening Analysis.
                                        Engineering Analysis.
Economic Justification:
    1. Economic Impact on               Manufacturer Impact
     Manufacturers and Consumers.       Analysis.
                                        Life-Cycle Cost and
                                        Payback Period Analysis.
                                        Life-Cycle Cost Subgroup
                                        Analysis.
                                        Shipments Analysis.
    2. Lifetime Operating Cost          Markups for Product
     Savings Compared to Increased      Price Determination.
     Cost for the Product.
                                        Energy and Water Use
                                        Determination.
                                        Life-Cycle Cost and
                                        Payback Period Analysis.
    3. Total Projected Energy Savings   Shipments Analysis.
                                        National Impact
                                        Analysis.
    4. Impact on Utility or             Screening Analysis.
     Performance.
                                        Engineering Analysis.
    5. Impact of Any Lessening of       Manufacturer Impact
     Competition.                       Analysis.
    6. Need for National Energy and     Shipments Analysis.
     Water Conservation.
                                        National Impact
                                        Analysis.
    7. Other Factors the Secretary      Employment Impact
     Considers Relevant.                Analysis.
                                        Utility Impact Analysis.
                                        Emissions Analysis.
                                        Monetization of Emission
                                        Reductions Benefits.
                                        Regulatory Impact
                                        Analysis.
------------------------------------------------------------------------


[[Page 4516]]

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

C. Deviation From Appendix A

    In accordance with Section 3(a) of 10 CFR part 430, subpart C, 
appendix A, DOE notes that it is deviating from that appendix's 
provision requiring a 75-day comment period for all pre-NOPR standards 
documents. 10 CFR part 430, subpart C, appendix A, section 6(d)(2). DOE 
is opting to deviate from this step because DOE believes that 30 days 
is a sufficient time to respond to this initial rulemaking document 
because the market and available technologies have not changed 
substantially from the previous rulemaking.

II. Request for Information

    In the following sections, DOE has identified a variety of issues 
on which it seeks input to aid in the development of the technical and 
economic analyses regarding whether amended standards for WGFs, NWOFs, 
MHOFs, WOFs, and electric furnaces may be warranted.

A. Scope & Product Classes

    When evaluating and establishing energy conservation standards, DOE 
divides covered products into product classes by the type of energy 
used, or by capacity or other performance-related features that 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.) As 
discussed in Section I.A, DOE has recently published the December 2021 
Final Interpretive Rule that returns to the previous and long-standing 
interpretation (in effect prior to the January 15, 2021 final 
interpretive rule), under which the technology used to supply heated 
air or hot water is not a performance-related ``feature'' that provides 
a distinct utility under EPCA. 86 FR 73947 (Dec. 29, 2021).
    A ``furnace'' is ``a product which utilizes only single-phase 
electric current, or single-phase electric current or DC current in 
conjunction with natural gas, propane, or home heating oil, and which--

    (1) Is designed to be the principal heating source for the 
living space of a residence;
    (2) Is not contained within the same cabinet with a central air 
conditioner whose rated cooling capacity is above 65,000 British 
thermal units (``Btu'') per hour;
    (3) Is an electric central furnace, electric boiler, forced-air 
central furnace, gravity central furnace, or low-pressure steam or 
hot water boiler; and
    (4) Has a heat input rate of less than 300,000 Btu per hour for 
electric boilers and low-pressure steam or hot water boilers and 
less than 225,000 Btu per hour for forced-air central furnaces, 
gravity central furnaces, and electric central furnaces. 10 CFR 
430.2. (See also 42 U.S.C. 6291(23)).\4\
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    \4\ In turn, a forced-air central furnace is defined as a gas or 
oil burning furnace designed to supply heat through a system of 
ducts with air as the heating medium. The heat generated by 
combustion of gas or oil is transferred to the air within a casing 
by conduction through heat exchange surfaces and is circulated 
through the duct system by means of a fan or blower. 10 CFR 430.2. A 
gravity central furnace is defined as a gas fueled furnace which 
depends primarily on natural convection for circulation of heated 
air and which is designed to be used in conjunction with a system of 
ducts. 10 CFR 430.2. An electric central furnace is defined as a 
furnace designed to supply heat through a system of ducts with air 
as the heating medium, in which heat is generated by one or more 
electric resistance heating elements and the heated air is 
circulated by means of a fan or blower. 10 CFR 430.2.

    DOE divides consumer furnaces into seven classes for the purpose of 
setting energy conservation standards: (1) NWGFs, (2) MHGFs, (3) WGFs, 
(4) NWOFs, (5) MHOFs, (6) WOFs, and (7) electric furnaces. 10 CFR 
430.32(e)(ii). As discussed in section I.B of this document, NWGFs and 
MHGFs were the subject of a lawsuit that resulted in an order to remand 
the standards to DOE for further analysis. As a result, DOE has been 
analyzing amended standards for those two consumer furnace classes as 
part of a separate, ongoing rulemaking covering only those two classes 
(see Docket No. EERE-BT-STD-2014-0031 \5\). Therefore, DOE is not 
considering NWGFs and MHGFs as part of this review. The product classes 
that DOE considered for this document are NWOFs, WGFs, MHOFs, WOFs, and 
electric furnaces. The current standards for WGFs, NWOFs, MHOFs, WOFs, 
and electric furnaces are shown in Table II-1.
---------------------------------------------------------------------------

    \5\ The rulemaking docket is available online at: 
www.regulations.gov/docket/EERE-2014-BT-STD-0031.

 Table II-1--Energy Conservation Standards for Consumer Furnaces Covered
                               in This RFI
------------------------------------------------------------------------
                                                       PW,SB and PW,OFF
          Product class             AFUE (percent)          (watts)
------------------------------------------------------------------------
Non-weatherized oil-fired                        83                  11
 furnaces (not including mobile
 home furnaces).................
Mobile Home oil-fired furnaces..                 75                  11
Weatherized gas furnaces........                 81                 N/A
Weatherized oil-fired furnaces..                 78                 N/A
Electric furnaces...............                 78                  10
------------------------------------------------------------------------

    Issue 1: DOE seeks comment on whether there are any products that 
are covered by the definition of ``furnace'' and should be regulated by 
DOE, but are not covered by any of the current classes of consumer 
furnaces that are regulated by DOE.
    Issue 2: DOE seeks information regarding any other new product 
classes it should consider for inclusion in its analysis. DOE also 
requests relevant data detailing the corresponding impacts on energy 
use that would justify separate product classes (i.e., explanation for 
why the presence of these performance-related features would increase 
or decrease energy consumption).

B. Significant Savings of Energy

    On June 27, 2011, DOE adopted amended energy conservations standard 
for consumer furnaces, central air conditioners, and heat pumps that 
are expected to result in an estimated 3.36 to 4.38 quadrillion Btu 
(``quads'') of cumulative energy savings over a 30-year period for the 
three products. 76 FR 37408, 37412 (June 27, 2011). Of this, 0.012 
quads were from the efficiency standards adopted for NWOFs at 83 
percent AFUE. Additionally, in the June 2011 DFR, DOE estimated that an 
energy conservation standard established at the maximum technologically 
feasible (``max-tech'') AFUE level, which was

[[Page 4517]]

determined to be 97 percent, would have resulted in 0.376 additional 
quads of savings for NWOFs.\6\ Potential energy savings for MHOFs, 
WOFs, and electric furnaces from amended AFUE standards were not 
considered in the June 2011 DFR. (EERE-2011-BT-STD-0011-0012, Technical 
Support Document: Chapter 10. National and Regional Impact Analyses at 
pp. 10-96-10-97) For MHOFs and WOFs, DOE found that only a very small 
number of these products are shipped, resulting in de minimis potential 
for energy savings from amended AFUE standards. Because electric 
furnace efficiency already approaches 100-percent AFUE, DOE concluded 
that electric furnaces would also have de minimis energy savings 
potential and did not consider amending the AFUE standards. 76 FR 
37408, 37443, 37445.
---------------------------------------------------------------------------

    \6\ This value was calculated by subtracting the energy savings 
in quads for furnaces at the standard level adopted in the June 2011 
DFR (i.e., 83 percent AFUE which corresponded to efficiency level 1 
in that analysis) from the energy savings in quads associated with 
max-tech level (i.e., 97 percent AFUE, which corresponded to 
efficiency level 4).
---------------------------------------------------------------------------

    While DOE's RFI is not limited to the following issues, DOE is 
particularly interested in comment, information, and data on energy use 
and shipments, as outlined in sections II.B.1 and II.B.2 of this 
document, to inform whether potential amended energy conservation 
standards would result in a significant savings of energy.
1. Energy Use Analysis
    As part of the rulemaking process, DOE conducts an energy use 
analysis to identify how products are used by consumers, and thereby 
determine the energy savings potential of energy efficiency 
improvements. The energy use analysis is meant to represent typical 
energy consumption in the field.
    Issue 3: DOE requests feedback on the levels of energy savings that 
could be expected from the adoption of more-stringent standards for 
consumer furnaces, specifically for those classes of consumer furnaces 
covered by this notice (WGFs, NWOFs, MHOFs, WOFs, and electric 
furnaces).
    Issue 4: DOE requests data on the typical operating conditions for 
WGFs, NWOFs, MHOFs, WOFs, and electric furnaces in high heating and 
reduced heating modes.
    Issue 5: DOE requests feedback and sources of data or 
recommendations to support sizing criteria of WGFs, NWOFs, MHOFs, WOFs, 
and electric furnaces for typical consumer space-heating applications.
2. Shipments
    DOE develops shipments forecasts of consumer furnaces to calculate 
the national impacts of potential amended energy conservation standards 
on energy consumption, net present value (``NPV''), and future 
manufacturer cash flows. DOE shipments projections are based on 
available historical data broken out by product class and efficiency. 
Current sales estimates allow for a more accurate model that captures 
recent trends in the market.
    Issue 6: DOE requests historical consumer furnace shipments data 
for each product class covered by this notice (i.e., WGFs, NWOFs, 
MHOFs, WOFs, and electric furnaces). DOE is interested in shipments 
data, broken out by product class, efficiency level, and region. If 
disaggregated shipments data are not available at the product class 
level, DOE requests shipments data at any broader available category.

C. Technological Feasibility

1. Technology Options
    In the development of the June 2011 DFR, DOE considered a number of 
technology options that manufacturers could use to reduce energy 
consumption in NWOFs, WGFs, MHOFs, WOFs, and electric furnaces. 
However, as discussed in section II.B of this document, DOE did not 
consider amended AFUE standards for MHOFs, WOFs, and electric furnaces 
in the June 2011 DFR. Regarding NWOFs and WGFs, DOE considered 13 
technology options that would be expected to impact the AFUE of 
consumer furnaces: (1) Condensing secondary heat exchanger for non-
weatherized furnaces, (2) heat exchanger improvements for non-
weatherized furnaces, (3) condensing and near-condensing technologies 
for WGFs, (4) two-stage or modulating combustion, (5) pulse combustion, 
(6) low NOX premix burners, (7) burner derating, (8) 
insulation improvements, (9) off-cycle dampers, (10) concentric 
venting, (11) low-pressure, air-atomized oil burners, (12) high-static 
oil burners, and (13) delayed-action oil pump solenoid valves. 76 FR 
37408, 37449. DOE seeks comment on any changes to these technology 
options that could affect whether DOE could propose a ``no-new-
standards'' determination, such as an insignificant increase in the 
range of efficiencies and performance characteristics of these 
technology options. DOE also seeks comment on whether there are any 
other technology options that DOE should consider in its analysis.
    Issue 7: DOE seeks information on the aforementioned technologies, 
including their applicability to the current market and how these 
technologies may impact the energy use of consumer furnaces as measured 
according to the DOE test procedure. DOE also seeks information on how 
these technologies may have changed since they were considered in the 
June 2011 DFR analysis.
    Additionally, the June 2011 DFR established separate standby mode 
and off mode energy conservation standards for NWOFs and electric 
furnaces. 76 FR 37408, 37433. WGFs and WOFs were not considered in the 
analysis of standby mode and off mode energy consumption because DOE 
did not find any weatherized furnaces that were not sold as part of a 
single package air conditioner or ``dual fuel'' single package heat 
pump systems, and determined that the existing test procedures for 
central air conditioners and heat pumps account for standby mode power 
consumption within the seasonal energy efficiency ratio (``SEER'') 
rating. MHOFs were not considered in the analysis of standby mode and 
off mode standards due to de minimis potential for energy savings. 76 
FR 37408, 37433. For the standby/off mode metric, DOE considered three 
technology options that would be expected to impact the standby/off 
mode efficiency rating: (1) Switching mode power supplies, (2) toroidal 
transformers, and (3) a relay that disconnects power to the blower's 
brushless permanent magnet \7\ (``BPM'') motor while in standby mode. 
76 FR 37408, 37450.
---------------------------------------------------------------------------

    \7\ In the June 2011 DFR, DOE referred to these motors as 
electronically commutated motors (``ECM''). BPM is a more 
generalized term for the same type of motor.
---------------------------------------------------------------------------

    Issue 8: DOE seeks information on the aforementioned technologies, 
including their applicability to the current market and how these 
technologies may impact the standby mode and/or off mode energy use of 
NWOFs and electric furnaces as measured according to the DOE test 
procedure. DOE also seeks information on how these technologies may 
have changed since they were considered in the June 2011 DFR analysis.
    Issue 9: DOE request information on whether other standby mode and 
off mode technologies are available to reduce energy consumption of 
consumer furnaces in standby mode and/or off mode.
2. Screening Analysis
    The purpose of the screening analysis is to evaluate the 
technologies that improve product efficiency to determine which 
technologies will be eliminated

[[Page 4518]]

from further consideration and which will be passed to the engineering 
analysis for further consideration. DOE determines whether to eliminate 
certain technology options from further consideration based on the 
following criteria: (1) Technological feasibility; (2) practicability 
to manufacture, install, and service; (3) adverse impacts on product 
utility or product availability; (4) adverse impacts on health or 
safety; and (5) unique-pathway proprietary technologies. 10 CFR part 
430, subpart C, appendix A, 7(b).
    The technology options screened out in the June 2011 DFR for both 
AFUE and standby/off mode power consumption are summarized in Table 
II.2. 76 FR 37408, 37448-37450.

                                             Table II.2--Previous Screening Analysis From the June 2011 DFR
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                     Reason for screening
                                                                    ------------------------------------------------------------------------------------
                                                                                                       Adverse impacts
                         Technology option                            Technological    Practicability     on product    Adverse impacts   Unique pathway
                                                                       feasibility     to manufacture     utility or     on health and     proprietary
                                                                                                         availability        safety        technologies
--------------------------------------------------------------------------------------------------------------------------------------------------------
Condensing and near-condensing technologies for WGFs...............               X
Pulse combustion...................................................                                                                  X
Low NOX premix burners.............................................               X
Burner derating....................................................                                                 X
Advanced forms of insulation.......................................               X
Low-pressure, air-atomized oil burners.............................               X
Relay that disconnects power to the blower's BPM motor *...........                                                 X
--------------------------------------------------------------------------------------------------------------------------------------------------------
* This technology option applies to standby mode and off mode power consumption.

    As displayed in Table II.2, a condensing secondary heat exchanger 
was screened out for WGFs in the June 2011 DFR. As of the publication 
of the June 2011 DFR, DOE was not aware of any WGFs that included a 
condensing secondary heat exchanger. For WGFs, condensate disposal 
presented challenges for using condensing technology. In particular, 
condensate can freeze in cold climates, which could cause the unit to 
malfunction. However, DOE has since identified one such model on the 
market, which suggests that technical challenges associated with 
condensate disposal in WGFs have been overcome. While DOE's RFI is not 
limited to the following issues, DOE is particularly interested in 
comment, information, and data on the following.
    Issue 10: DOE requests feedback on what impact, if any, the 
screening criteria described in this section would have on each of the 
aforementioned technology options. Similarly, DOE seeks information 
regarding how these same criteria would affect any other technology 
options not already identified in this document with respect to their 
potential use in consumer furnaces.
    Issue 11: DOE requests data and information on WGFs that include a 
condensing secondary heat exchanger. In particular, DOE requests 
information on methods for condensate disposal and preventing 
condensate freezing and any associated increase in installation or 
maintenance costs. Additionally, DOE seeks comment on whether this 
technology and associated condensing efficiency levels would be 
appropriate for consideration as a national standard for WGFs.
3. Engineering Efficiency Analysis
    The engineering analysis estimates the cost-efficiency relationship 
of equipment at different levels of increased energy efficiency 
(``efficiency levels''). This relationship serves as the basis for the 
cost-benefit calculations for consumers, manufacturers, and the Nation.
    The current energy conservation standard for each consumer furnace 
product class is based on AFUE and determined according to appendix N 
to subpart B of 10 CFR part 430. The current standards for consumer 
furnaces are found at 10 CFR 430.32(e). As part of DOE's analysis, DOE 
develops efficiency levels as potential energy conservation standards 
to evaluate in the rulemaking analyses. Among these, DOE typically 
establishes efficiency levels at the maximum-available and max-tech 
efficiencies. The maximum-available efficiency level represents the 
highest efficiency units currently available on the market. The max-
tech efficiency level represents the theoretical maximum possible 
efficiency if all available design options are incorporated in a model. 
In applying these design options, DOE would only include those that are 
compatible with each other that when combined, would represent the 
theoretical maximum possible efficiency.
    In the energy efficiency analysis in the June 2011 DFR, the max-
tech level for NWOFs was determined to incorporate a condensing 
secondary heat exchanger at 97-percent AFUE. (EERE-2011-BT-STD-0011-
0012, Technical Support Document: Chapter 5. Engineering Analysis at p. 
5-7). As discussed in section II.C.2 of this document, a condensing 
secondary heat exchanger was screened out as a design option for WGFs, 
so the max-tech level was determined to incorporate non-condensing 
technology at a level of 81-percent AFUE. 76 FR 37408, 37439. As 
discussed in section IV.A.1.a of this document, MHOFs, WOFs, and 
electric furnaces were not analyzed for amended AFUE standards and 
therefore no max-tech level was determined for those classes. For the 
analysis of standby mode and off mode in the June 2011 DFR, which as 
discussed in section III.E.1 of this document applied only to NWOFs and 
electric furnaces, DOE determined the max-tech level to be 10 and 9 
watts, respectively. 76 FR 37408, 37463.
    Issue 12: DOE seeks input on whether the maximum-available AFUE 
levels are appropriate and technologically feasible for consideration 
as possible energy conservation standards for consumer furnaces for 
each current product class. DOE seeks information on the design options 
incorporated into these maximum-available models, and also on the order 
in which manufacturers incorporate each design option when improving 
efficiency from the baseline to the maximum-available efficiency level 
(i.e., which design options would be included at intermediate 
efficiency levels between the baseline and maximum-available).
    Issue 13: DOE seeks feedback on the max-tech AFUE level for each 
product class, and on the design options that

[[Page 4519]]

would be incorporated at the max-tech AFUE level. As part of this 
request, DOE also seeks information as to whether there are limitations 
on the use of certain combinations of design options. DOE is 
particularly interested in any design options that may have become 
available since the June 2011 DFR that would allow greater energy 
savings relative to the max-tech efficiency levels assessed for each 
product class in that rulemaking. Specifically, DOE requests comment 
and data regarding whether max-tech AFUE levels and associated 
technologies considered in the June 2011 DFR for NWOFs and WGFs are 
still appropriate.
    Issue 14: DOE seeks feedback on the max-tech standby mode and off 
mode power consumption (i.e., the lowest power consumption possible) 
for each product class, and on the design options that would be 
incorporated at the max-tech level. As part of this request, DOE also 
seeks information as to whether there are limitations on the use of 
certain combinations of design options. DOE is particularly interested 
in any design options that may have become available since the June 
2011 DFR that would allow greater energy savings relative to the max-
tech levels assessed for each product class in that rulemaking. DOE 
also seeks comment and data on whether the standby mode and off mode 
power consumption levels considered in the June 2011 DFR for NWOFs and 
electric furnaces are still appropriate.

D. Economic Justification

    In determining whether a proposed energy conservation standard is 
economically justified, DOE analyzes, among other things, the potential 
economic impact on consumers, manufacturers, and the Nation. DOE seeks 
comment on whether there are economic barriers to the adoption of more-
stringent energy conservation standards. DOE also seeks comment and 
data on any aspects of its economic justification analysis from the 
June 2011 DFR that may indicate whether a more-stringent energy 
conservation standard would be economically justified or cost 
effective.
    While DOE's request for information is not limited to the following 
issues, DOE is particularly interested in comment, information, and 
data on the following.
1. Life-Cycle Cost and Payback Period Analysis
    DOE conducts the life-cycle cost (``LCC'') and payback period 
(``PBP'') analysis to evaluate the economic effects of potential energy 
conservation standards for consumer furnaces on individual consumers. 
For any given efficiency level, DOE measures the PBP and the change in 
LCC relative to an estimated baseline level. The LCC is the total 
consumer expense over the life of the equipment, consisting of 
purchase, installation, and operating costs (expenses for energy use, 
maintenance, and repair). Inputs to the calculation of total installed 
cost include the cost of the equipment--which includes the manufacturer 
selling price, distribution channel markups, and sales taxes--and 
installation costs. Inputs to the calculation of operating expenses 
include annual energy consumption, energy prices and price projections, 
repair and maintenance costs, equipment lifetimes, discount rates, and 
the year that compliance with new and amended standards is required.
    Issue 15: DOE requests feedback on the typical distribution 
channels for consumer furnaces. DOE further seeks comment on whether 
there is a significant retail distribution channel for consumer 
furnaces.
    Issue 16: DOE requests shipments data for consumer furnaces, broken 
down by product class, that show current market shares by efficiency 
level. DOE also seeks input on similar historic data.
    Issue 17: DOE requests comment on the anticipated future market 
share of higher-efficiency products as compared to less-efficient 
products for each consumer furnace product class, in the absence of 
amended efficiency standards.
2. Manufacturer Impact Analysis
    The purpose of the manufacturer impact analysis (``MIA'') is to 
estimate the financial impact of amended energy conservation standards 
on manufacturers of consumer furnaces, and to evaluate the potential 
impact of such standards on direct employment and manufacturing 
capacity. As part of the MIA, DOE would analyze impacts of amended 
energy conservation standards on subgroups of manufacturers of covered 
equipment, including small business manufacturers. DOE uses the Small 
Business Administration's (``SBA'') small business size standards to 
determine whether manufacturers qualify as small businesses, which are 
listed by the North American Industry Classification System 
(``NAICS'').\8\ Manufacturing of consumer furnaces is classified under 
NAICS 333415, ``Air-conditioning and warm air heating equipment and 
commercial and industrial refrigeration equipment manufacturing,'' and 
the SBA sets a threshold of 1,250 employees or less for a domestic 
entity to be considered as a small business. This employee threshold 
includes all employees in a business' parent company and any other 
subsidiaries.
---------------------------------------------------------------------------

    \8\ Available online at: www.sba.gov/document/support-table-size-standards.
---------------------------------------------------------------------------

    One aspect of assessing manufacturer burden involves examining the 
cumulative impact of multiple DOE standards and the product-specific 
regulatory actions of other Federal agencies that affect the 
manufacturers of a covered product or equipment. Multiple regulations 
affecting the same manufacturer can strain profits and lead companies 
to abandon product lines or markets with lower expected future returns 
than competing products. For these reasons, DOE conducts an analysis of 
cumulative regulatory burden as part of its rulemakings pertaining to 
appliance efficiency.
    Issue 18: To the extent feasible, DOE seeks the names and contact 
information of any domestic or foreign-based manufacturers in the 
United States of the consumer furnaces that are the subject of this 
notification.
    Issue 19: DOE requests the names and contact information of small 
business manufacturers, as defined by the SBA's size threshold that 
distribute in the United States consumer furnaces that are the subject 
of this notification. In addition, DOE requests comment on any other 
manufacturer subgroups that could disproportionally be impacted by 
amended energy conservation standards. DOE requests feedback on any 
potential approaches that could be considered to address impacts on 
manufacturers, including small businesses.
    Issue 20: DOE requests information regarding the cumulative 
regulatory burden impacts on manufacturers of consumer furnaces 
associated with (1) other DOE standards applying to different products 
or equipment that these manufacturers may also make, and (2) product-
specific regulatory actions of other Federal agencies. DOE also 
requests comment on its methodology for computing cumulative regulatory 
burden and whether there are any flexibilities it can consider that 
would reduce this burden while remaining consistent with the 
requirements of EPCA.

III. Submission of Comments

    DOE invites all interested parties to submit in writing by the date 
under the DATES heading, comments and information on matters addressed 
in this notification and on other matters relevant to DOE's 
consideration of

[[Page 4520]]

amended energy conservation standards for the consumer furnaces covered 
by this notification (specifically, WGFs, NWOFs, WOFs, MHOFs, and 
electric furnaces). After the close of the comment period, DOE will 
review the public comments received and may begin collecting data and 
conducting the analyses discussed in this document.
    Submitting comments via www.regulations.gov. The 
www.regulations.gov web page requires you to provide your name and 
contact information. Your contact information will be viewable to DOE 
Building Technologies staff only. Your contact information will not be 
publicly viewable except for your first and last names, organization 
name (if any), and submitter representative name (if any). If your 
comment is not processed properly because of technical difficulties, 
DOE will use this information to contact you. If DOE cannot read your 
comment due to technical difficulties and cannot contact you for 
clarification, DOE may not be able to consider your comment.
    However, your contact information will be publicly viewable if you 
include it in the comment or in any documents attached to your comment. 
Any information that you do not want to be publicly viewable should not 
be included in your comment, nor in any document attached to your 
comment. If this instruction is followed, persons viewing comments will 
see only first and last names, organization names, correspondence 
containing comments, and any documents submitted with the comments.
    Do not submit to www.regulations.gov information for which 
disclosure is restricted by statute, such as trade secrets and 
commercial or financial information (hereinafter referred to as 
Confidential Business Information (``CBI'')). Comments submitted 
through www.regulations.gov cannot be claimed as CBI. Comments received 
through the website will waive any CBI claims for the information 
submitted. For information on submitting CBI, see the Confidential 
Business Information section.
    DOE processes submissions made through www.regulations.gov before 
posting. Normally, comments will be posted within a few days of being 
submitted. However, if large volumes of comments are being processed 
simultaneously, your comment may not be viewable for up to several 
weeks. Please keep the comment tracking number that www.regulations.gov 
provides after you have successfully uploaded your comment.
    Submitting comments via email. Comments and documents submitted via 
email also will be posted to www.regulations.gov. If you do not want 
your personal contact information to be publicly viewable, do not 
include it in your comment or any accompanying documents. Instead, 
provide your contact information in a cover letter. Include your first 
and last names, email address, telephone number, and optional mailing 
address. The cover letter will not be publicly viewable as long as it 
does not include any comments.
    Include contact information each time you submit comments, data, 
documents, and other information to DOE. Faxes will not be accepted.
    Comments, data, and other information submitted to DOE 
electronically should be provided in PDF (preferred), Microsoft Word or 
Excel, or text (ASCII) file format. Provide documents that are not 
secured, written in English, and free of any defects or viruses. 
Documents should not contain special characters or any form of 
encryption and, if possible, they should carry the electronic signature 
of the author.
    Campaign form letters. Please submit campaign form letters by the 
originating organization in batches of between 50 to 500 form letters 
per PDF or as one form letter with a list of supporters' names compiled 
into one or more PDFs. This reduces comment processing and posting 
time.
    Confidential Business Information. Pursuant to 10 CFR 1004.11, any 
person submitting information that he or she believes to be 
confidential and exempt by law from public disclosure should submit via 
email two well-marked copies: One copy of the document marked 
``confidential'' including all the information believed to be 
confidential, and one copy of the document marked ``non-confidential'' 
with the information believed to be confidential deleted. DOE will make 
its own determination about the confidential status of the information 
and treat it according to its determination.
    It is DOE's policy that all comments may be included in the public 
docket, without change and as received, including any personal 
information provided in the comments (except information deemed to be 
exempt from public disclosure).
    DOE considers public participation to be a very important part of 
the process for developing test procedures and energy conservation 
standards. DOE actively encourages the participation and interaction of 
the public during the comment period in each stage of this process. 
Interactions with and between members of the public provide a balanced 
discussion of the issues and assist DOE in the process. Anyone who 
wishes to be added to the DOE mailing list to receive future notices 
and information about this process should contact Appliance and 
Equipment Standards Program staff at (202) 287-1445 or via email at 
[email protected].

Signing Authority

    This document of the Department of Energy was signed on January 23, 
2022, 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.

    Signed in Washington, DC, on January 25, 2022.
Treena V. Garrett,
Federal Register Liaison Officer, U.S. Department of Energy.
[FR Doc. 2022-01765 Filed 1-27-22; 8:45 am]
BILLING CODE 6450-01-P