[Federal Register Volume 87, Number 86 (Wednesday, May 4, 2022)]
[Proposed Rules]
[Pages 26304-26311]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-09548]
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DEPARTMENT OF ENERGY
10 CFR Part 430
[EERE-2019-BT-STD-0036]
RIN 1904-AE82
Energy Conservation Program: Energy Conservation Standards for
Consumer Boilers
AGENCY: Office of Energy Efficiency and Renewable Energy, Department of
Energy.
ACTION: Notification of availability of preliminary technical support
document and request for comment.
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SUMMARY: The U.S. Department of Energy (``DOE'' or ``the Department'')
announces the availability of the preliminary analysis it has conducted
for purposes of evaluating the need for amended energy conservation
standards for consumer boilers, which is set forth in the Department's
preliminary technical support document (``TSD'') for this rulemaking.
DOE will hold a public meeting via webinar to discuss and receive
comment on its preliminary analysis. The meeting will cover the
analytical framework, models, and tools used to evaluate potential
standards; the results of preliminary analyses performed; potential
energy conservation standard levels derived from these analyses (if DOE
determines that proposed amendments are necessary); and any other
relevant issues. In addition, DOE encourages written comments on these
subjects.
DATES:
Comments: Written comments and information will be accepted on or
before, July 5, 2022.
Meeting: DOE will hold a public meeting webinar on Thursday, June
16, 2022, from 1:00 p.m. to 4:00 p.m. See section IV, ``Public
Participation,'' for webinar registration information, participant
instructions, and information about the capabilities available to
webinar participants.
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-2019-BT-STD-0036
and/or RIN 1904-AE82, by any of the following methods:
1. Federal eRulemaking Portal: www.regulations.gov. Follow the
instructions for submitting comments.
2. Email: [email protected]. Include docket
number EERE-2019-BT-STD-0036 and/or RIN 1904-AE82 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 (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.
To inform interested parties and to facilitate this rulemaking
process, DOE has prepared an agenda, a preliminary TSD, and briefing
materials, which are available on the DOE website at:
www1.eere.energy.gov/buildings/appliance_standards/standards.aspx?productid=32.
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, not all
documents listed in the index may be publicly available, such as those
containing information that is exempt from public disclosure.
The docket web page can be found at www.regulations.gov/#!docketDetail;D=EERE-2019-BT-STD-0036. The docket web page contains
instructions on how to access all documents, including public comments,
in the docket. See section IV for information on how to submit comments
through www.regulations.gov.
FOR FURTHER INFORMATION CONTACT:
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].
Mr. Eric Stas, U.S. Department of Energy, Office of the General
Counsel, GC-33, 1000 Independence Avenue SW, Washington, DC 20585-0121.
Telephone: (202) 586-5827. Email: [email protected].
For further information on how to submit a comment, review other
public comments and the docket, or participate in the public meeting
webinar, contact the Appliance and Equipment Standards Program staff at
(202) 287-1445 or by email: [email protected].
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Introduction
A. Authority
B. Rulemaking Process
C. Deviations from Appendix A
II. Background
A. Current Standards
B. Current Process
III. Summary of the Analyses Performed by DOE
A. Market and Technology Assessment
B. Screening Analysis
C. Engineering Analysis
D. Markups Analysis
E. Energy Use Analysis
F. Life-Cycle Cost and Payback Period Analyses
G. National Impact Analysis
IV. Public Participation
A. Participation in the Public Meeting Webinar
B. Procedure for Submitting Prepared General Statements for
Distribution
C. Conduct of the Public Meeting Webinar
D. Submission of Comments
V. Approval of the Office of the Secretary
[[Page 26305]]
I. Introduction
A. Authority
The Energy Policy and Conservation Act, as amended (``EPCA''),\1\
Public Law 94-163 (42 U.S.C. 6291-6317, as codified), authorizes DOE to
regulate the energy efficiency of a number of consumer products and
certain industrial equipment. Title III, Part B \2\ of EPCA established
the Energy Conservation Program for Consumer Products Other Than
Automobiles. (42 U.S.C. 6291-6309) These products include consumer
boilers, the subject of this document. (42 U.S.C. 6292(a)(5)) \3\
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\1\ All references to EPCA in this document refer to the statute
as amended through the Infrastructure Investment and Jobs Act,
Public Law 117-58 (Nov. 15, 2021).
\2\ For editorial reasons, upon codification in the U.S. Code,
Part B was redesignated Part A.
\3\ DOE notes that consumer boilers are defined as a subcategory
of covered consumer furnaces (see 42 U.S.C. 6291(23)).
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EPCA prescribed energy conservation standards for these products
(42 U.S.C. 6295(f)(3)), and the statute directed DOE to conduct future
rulemakings to determine whether to amend these standards. (42 U.S.C.
6295(f)(4)(C)) EPCA further provides that, not later than 6 years after
the issuance of any final rule establishing or amending a standard, DOE
must publish either a notification of determination that standards for
the product do not need to be amended, or a notice of proposed
rulemaking (``NOPR'') including new proposed energy conservation
standards (proceeding to a final rule, as appropriate). (42 U.S.C.
6295(m)(1)) Not later than three years after issuance of a final
determination not to amend standards, DOE must publish either a notice
of determination that standards for the product do not need to be
amended, or a NOPR including new proposed energy conservation standards
(proceeding to a final rule, as appropriate). (42 U.S.C. 6295(m)(3)(B))
Pursuant to EPCA, any new or amended energy conservation standard
must be designed to achieve the maximum improvement in energy
efficiency that DOE determines is technologically feasible and
economically justified. (42 U.S.C. 6295(o)(2)(A)) Furthermore, the new
or amended standard must result in a significant conservation of
energy. (42 U.S.C. 6295(o)(3)(B))
DOE is publishing this preliminary analysis to collect data and
information to inform its decision consistent with its obligations
under EPCA.
B. Rulemaking Process
DOE must follow specific statutory criteria for prescribing new or
amended standards for covered products, including consumer boilers. As
noted, EPCA requires that any new or amended energy conservation
standard prescribed by the Secretary of Energy (``Secretary'') be
designed to achieve the maximum improvement in energy efficiency (or
water efficiency for certain products specified by EPCA) that is
technologically feasible and economically justified. (42 U.S.C.
6295(o)(2)(A)) Furthermore, DOE may not adopt any standard that would
not result in the significant conservation of energy. (42 U.S.C.
6295(o)(3)(B))
Particularly in light of the climate crisis, 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.\4\ 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 greenhouse gas
(``GHG'') emissions in order to limit the rise in mean global
temperature. As such, energy savings that reduce GHG emissions 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 U.S. energy
infrastructure can be more pronounced than those of products with
relatively constant demand. In evaluating the significance of energy
savings, DOE considers differences in not only site energy use, but
also primary energy and full-fuel-cycle (``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.\5\ Accordingly, DOE evaluates the significance
of energy savings on a case-by-case basis.
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\4\ See 86 FR 70892, 70901 (Dec. 13, 2021).
\5\ The FFC metric is discussed in DOE's statement of policy and
notice of policy amendment. 76 FR 51281 (August 18, 2011), as
amended at 77 FR 49701 (August 17, 2012).
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The preliminary TSD details DOE's analyses to estimate the amount
of FFC energy savings which would be anticipated to result from
technologically feasible improvements to consumer boiler efficiencies.
Based on the amount of FFC savings, the corresponding reduction in
emissions, and need to confront the global climate crisis, DOE has
initially determined the energy savings estimated for the efficiency
levels considered in this preliminary analysis are ``significant''
within the meaning of 42 U.S.C. 6295(o)(3)(B).
To determine whether a proposed new or amended energy conservation
standard is economically justified, EPCA requires that DOE determine
whether the benefits of the standard exceed its burdens by considering,
to the greatest extent practicable, the following seven factors:
(1) The economic impact of the standard on the manufacturers and
consumers of the products subject to the standard;
(2) The savings in operating costs throughout the estimated
average life of the covered products in the type (or class) compared
to any increase in the price, initial charges, or maintenance
expenses for the covered products that are likely to result from the
standard;
(3) The total projected amount of energy (or as applicable,
water) savings likely to result directly from the standard;
(4) Any lessening of the utility or the performance of the
products likely to result from the standard;
(5) The impact of any lessening of competition, as determined in
writing by the Attorney General, that is likely to result from the
standard;
(6) The need for national energy and water conservation; and
(7) Other factors the Secretary of Energy 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.
[[Page 26306]]
Table I.1--EPCA Requirements and Corresponding DOE Analysis
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EPCA requirement Corresponding DOE analysis
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Significant Energy Savings............. Shipments Analysis.
National Impact
Analysis.
Energy Use Analysis.
Technological Feasibility.............. Market and Technology
Assessment.
Screening Analysis.
Engineering Analysis.
Economic Justification:
1. Economic impact on manufacturers Manufacturer Impact
and consumers. Analysis.
Life-Cycle Cost and
Payback Period Analysis.
Life-Cycle Cost
Subgroup Analysis.
Shipments Analysis.
2. Lifetime operating cost savings Markups for Product
compared to increased cost for the Price Analysis.
product.
Energy Analysis.
Life-Cycle Cost and
Payback Period Analysis.
3. Total projected energy savings.. Shipments Analysis.
National Impact
Analysis.
4. Impact on utility or performance Screening Analysis.
Engineering Analysis.
5. Impact of any lessening of Manufacturer Impact
competition. Analysis.
6. Need for national energy Shipments Analysis.
conservation.
National Impact
Analysis.
7. Other factors the Secretary Employment Impact
considers relevant. Analysis.
Utility Impact
Analysis.
Emissions Analysis.
Monetization of
Emission Reductions
Benefits.\6\
Regulatory Impact
Analysis.
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Further, EPCA establishes a rebuttable presumption that a standard
is economically justified if the Secretary finds that the additional
cost to the consumer of purchasing a product complying with an energy
conservation standard level will be less than three times the value of
the energy savings during the first year that the consumer will receive
as a result of the standard, as calculated under the applicable test
procedure. (42 U.S.C. 6295(o)(2)(B)(iii))
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\6\ On March 16, 2022, the Fifth Circuit Court of Appeals (No.
22-30087) granted the Federal government's emergency motion for stay
pending appeal of the February 11, 2022, preliminary injunction
issued in Louisiana v. Biden, No. 21-cv-1074-JDC-KK (W.D. La.). As a
result of the Fifth Circuit's order, the preliminary injunction is
no longer in effect, pending resolution of the federal government's
appeal of that injunction or a further court order. Among other
things, the preliminary injunction enjoined the defendants in that
case from ``adopting, employing, treating as binding, or relying
upon'' the interim estimates of the social cost of greenhouse
gases--which were issued by the Interagency Working Group on the
Social Cost of Greenhouse Gases on February 26, 2021--to monetize
the benefits of reducing greenhouse gas emissions. In the absence of
further intervening court orders, DOE will revert to its approach
prior to the injunction and present monetized benefits where
appropriate and permissible under law.
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EPCA also contains what is known as an ``anti-backsliding''
provision, which prevents the Secretary from prescribing any amended
standard that either increases the maximum allowable energy use or
decreases the minimum required energy efficiency of a covered product.
(42 U.S.C. 6295(o)(1)) Also, the Secretary may not prescribe an amended
or new standard if interested persons have established by a
preponderance of the evidence that the standard is likely to result in
the unavailability in the United States in any covered product type (or
class) of performance characteristics (including reliability),
features, sizes, capacities, and volumes that are substantially the
same as those generally available in the United States. (42 U.S.C.
6295(o)(4))
Additionally, EPCA specifies requirements when promulgating an
energy conservation standard for a covered product that has two or more
subcategories. DOE must specify a different standard level for a type
or class of product that has the same function or intended use, if DOE
determines that products within such group: (A) Consume a different
kind of energy from that consumed by other covered products within such
type (or class); or (B) have a capacity or other performance-related
feature which other products within such type (or class) do not have
and such feature justifies a higher or lower standard. (42 U.S.C.
6295(q)(1)) In determining whether a performance-related feature
justifies a different standard for a group of products, DOE must
consider such factors as the utility to the consumer of the feature and
other factors DOE deems appropriate. Id. Any rule prescribing such a
standard must include an explanation of the basis on which such higher
or lower level was established. (42 U.S.C. 6295(q)(2))
Finally, pursuant to the amendments to EPCA contained in the Energy
Independence and Security Act of 2007 (``EISA 2007''), Public Law 110-
140, any final rule for new or amended energy conservation standards
promulgated after July 1, 2010, is required to address standby mode and
off mode energy use. (42 U.S.C. 6295(gg)(3)) Specifically, when DOE
adopts a standard for a covered product after that date, it must, if
justified by the criteria for adoption of standards under EPCA (42
U.S.C. 6295(o)), incorporate standby mode and off mode energy use into
a single standard, or, if that is not feasible, adopt a separate
standard for such energy use for that product. (42 U.S.C.
6295(gg)(3)(A)-(B)) DOE's current test procedures for consumer boilers
address standby mode and off mode energy use. In this rulemaking, DOE
intends to consider such energy use in any amended energy conservation
standards it adopts in the final rule.
Before proposing a standard, DOE typically seeks public input on
the analytical framework, models, and tools that DOE intends to use to
evaluate potential standards for the product at issue and the results
of preliminary analyses DOE performed for the product.
DOE is examining whether to amend the current energy conservation
standards for consumer boilers pursuant
[[Page 26307]]
to its obligations under EPCA. This document announces the availability
of the preliminary TSD, which details the preliminary analyses and
summarizes the preliminary results of DOE's analyses. In addition, DOE
is announcing a public meeting webinar to solicit feedback from
interested parties on its analytical framework, models, and preliminary
results.
C. Deviations From Appendix A
In accordance with section 3(a) of 10 CFR part 430, subpart C,
appendix A (``appendix A''), ``Procedures, Interpretations, and
Policies for Consideration of New or Revised Energy Conservation
Standards and Test Procedures for Consumer Products and Certain
Commercial/Industrial Equipment,'' DOE notes that it is deviating from
the provision in appendix A regarding the pre-NOPR stages for an energy
conservation standards rulemaking. See 86 FR 70892 (Dec. 13, 2021).
Section 6(a)(2) of appendix A states that if the Department determines
it is appropriate to proceed with a rulemaking, the preliminary stages
of a rulemaking to issue or amend an energy conservation standard that
DOE will undertake will be a framework document and preliminary
analysis, or an advance notice of proposed rulemaking.
DOE is opting to deviate from this step by publishing a preliminary
analysis without a framework document. A framework document is intended
to introduce and summarize the various analyses DOE conducts during the
rulemaking process and requests initial feedback from interested
parties. As discussed further in section II.B of this document, prior
to this notification of the preliminary analysis, DOE published an
early assessment review and request for information (``RFI'') in the
Federal Register in which DOE identified and sought comment on the
analyses conducted in support of the most recent energy conservation
standards rulemakings for consumer boilers. 86 FR 15804 (March 25,
2021; ``March 2021 Early Assessment Review RFI''). In the March 2021
Early Assessment Review RFI, DOE sought data and information as to
whether any new or amended rule would be cost-effective, economically
justified, technologically feasible, or would result in a significant
savings of energy. Id. DOE sought such data and information to assist
in its consideration of whether (and if so, how) to amend the standards
for consumer boilers. Id. Further, DOE provided an overview of the
analysis it would use to evaluate new or amended energy conservation
standards, including references to and requests for comment on the
analyses conducted as part of the most recent energy conservation
standards rulemakings. Id. As DOE is intending to rely on substantively
the same analytical methods as in the most recent rulemaking,
publication of a framework document would be largely redundant with the
published March 2021 Early Assessment Review RFI. As such, DOE is not
publishing a framework document.
Section 6(d)(2) of appendix A provides that the length of the
public comment period for pre-NOPR rulemaking documents will vary
depending upon the circumstances of the particular rulemaking, but will
not be less than 75 calendar days. For this preliminary analysis, DOE
has opted to provide a 60-day comment period. As stated, DOE requested
comment in the March 2021 Early Assessment Review RFI on the previous
energy conservation standards analyses. For this preliminary analysis,
DOE has relied on many of the same analytical assumptions and
approaches as used in the previous rulemaking and has determined that a
60-day comment period in conjunction with the prior comment period for
the March 2021 Early Assessment Review RFI provides sufficient time for
interested parties to review the preliminary analysis and develop
comments.
II. Background
A. Current Standards
In a final rule published in the Federal Register on January 15,
2016 (``January 2016 Final Rule''), DOE prescribed the current energy
conservation standards for consumer boilers, which are applicable to
such products manufactured on and after January 15, 2021. 81 FR 2320,
2416-2417. These standards are set forth in the Code of Federal
Regulations (CFR) at 10 CFR 430.32(e)(2) and are repeated here in Table
II.1.
Table II.1--Federal Energy Conservation Standards for Consumer Boilers *
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PW,SB (watts) PW,OFF (watts)
Product class AFUE (percent) [dagger] [dagger] Design requirements
**
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Gas-fired Hot Water........... 84 9 9 Constant-burning pilot not
permitted. Automatic means for
adjusting water temperature
required (except for boilers
equipped with tankless domestic
water heating coils).
Gas-fired Steam............... 82 8 8 Constant-burning pilot not
permitted.
Oil-fired Hot Water........... 86 11 11 Automatic means for adjusting
temperature required (except
for boilers equipped with
tankless domestic water heating
coils).
Oil-fired Steam............... 85 11 11 None.
Electric Hot Water............ None 8 8 Automatic means for adjusting
temperature required (except
for boilers equipped with
tankless domestic water heating
coils).
Electric Steam................ None 8 8 None.
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* A boiler that is manufactured to operate without any need for electricity or any electric connection, electric
gauges, electric pumps, electric wires, or electric devices is not required to meet the AFUE or design
requirements. Instead, such boilers must meet a minimum AFUE of 80 percent (for all classes except gas steam),
and 75 percent for gas steam.
** AFUE stands for Annual Fuel Utilization Efficiency, as determined in 10 CFR 430.23(n)(2).
[dagger] PW,SB and PW,OFF stand for standby mode power consumption and off mode power consumption, respectively.
B. Current Process
On March 25, 2021, DOE published a notice in the Federal Register
through a request for information (RFI) that it was initiating an early
assessment review to determine whether any new or amended standards
would satisfy the relevant requirements of EPCA for a new or amended
energy conservation standard for consumer boilers. 86 FR 15804.
Specifically, through the published notice and RFI, DOE sought data and
information that could enable the agency to determine whether DOE
should propose a ``no new standard'' determination because a more-
stringent standard: (1) Would not result in a significant savings of
energy; (2) is not
[[Page 26308]]
technologically feasible; (3) is not economically justified; or (4) any
combination of foregoing. Id.
Comments received to date as part of the current process have
helped DOE identify and resolve issues related to development of the
preliminary analyses. Chapter 2 of the preliminary TSD summarizes and
addresses the comments received.
III. Summary of the Analyses Performed by DOE
For the products covered in this preliminary analysis, DOE
conducted in-depth technical analyses in the following areas: (1)
Engineering; (2) markups to determine product price; (3) energy use;
(4) life-cycle cost (``LCC'') and payback period (``PBP''); and (5)
national impacts. The preliminary TSD that presents the methodology and
results of each of these analyses is available at:
www1.eere.energy.gov/buildings/appliance_standards/standards.aspx?productid=45.
DOE also conducted, and has included in the preliminary TSD,
several other analyses that support the major analyses or are
preliminary analyses that will be expanded if DOE determines that a
NOPR is warranted to propose amended energy conservation standards.
These analyses include: (1) The market and technology assessment; (2)
the screening analysis, which contributes to the engineering analysis;
and (3) the shipments analysis, which contributes to the LCC and PBP
analysis and the national impact analysis (``NIA''). In addition to
these analyses, DOE has begun preliminary work on the manufacturer
impact analysis and has identified the methods to be used for the
consumer subgroup analysis, the emissions analysis, the employment
impact analysis, the regulatory impact analysis, and the utility impact
analysis. DOE will expand on these analyses in the NOPR, should one be
issued.
A. Market and Technology Assessment
DOE develops information in the market and technology assessment
that provides an overall picture of the market for the products
concerned, including general characteristics of the products, the
industry structure, manufacturers, market characteristics, and
technologies used in the products. This activity includes both
quantitative and qualitative assessments, based primarily on publicly-
available information. The subjects addressed in the market and
technology assessment include: (1) A determination of the scope of the
rulemaking and product classes, (2) manufacturers and industry
structure, (3) existing efficiency programs, (4) shipments information,
(5) market and industry trends, and (6) technologies or design options
that could improve the energy efficiency of the product.
DOE would note here a number of recent statutory interpretations
that had bearing on the market and technology assessment for consumer
boilers. On January 15, 2021, in response to a petition for rulemaking
\7\ submitted by the American Public Gas Association, Spire, Inc., the
Natural Gas Supply Association, the American Gas Association, and the
National Propane Gas Association, DOE published a final interpretive
rule (``the January 2021 Final Interpretive Rule'') in the Federal
Register which determined that, in the context of residential furnaces,
commercial water heaters, and similarly-situated products/equipment
(which would include consumer boilers), use of non-condensing
technology (and associated venting) constitute a performance-related
``feature'' under EPCA that cannot be eliminated through adoption of an
energy conservation standard. 86 FR 4776.
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\7\ After receipt, DOE published the petition for rulemaking in
the Federal Register for public comment. See 83 FR 54883 (Nov. 1,
2018).
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In the March 2021 RFI, DOE sought information that would allow the
agency to evaluate non-condensing technology (and the associated
venting) consistent with the January 2021 Final Interpretive Rule, and
whether separate product classes for non-condensing and condensing
boilers is warranted. 86 FR 15804, 15805-15806 (March 25, 2021).
However, DOE has 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 (Dec. 29, 2021).
Accordingly, in conducting this preliminary analysis, DOE did not
consider condensing technology to constitute a separate product class
for consumer boilers.
See chapter 3 of the preliminary TSD for further discussion of the
market and technology assessment.
B. Screening Analysis
DOE uses the following five screening criteria to determine which
technology options are suitable for further consideration in an energy
conservation standards rulemaking:
(1) Technological feasibility. Technologies that are not
incorporated in commercial products or in working prototypes will not
be considered further.
(2) Practicability to manufacture, install, and service. If it is
determined that mass production and reliable installation and servicing
of a technology in commercial products could not be achieved on the
scale necessary to serve the relevant market at the time of the
projected compliance date of the standard, then that technology will
not be considered further.
(3) Impacts on product utility or product availability. If it is
determined that a technology would have a significant adverse impact on
the utility of the product for significant subgroups of consumers or
would result in the unavailability of any covered product type with
performance characteristics (including reliability), features, sizes,
capacities, and volumes that are substantially the same as products
generally available in the United States at the time, it will not be
considered further.
(4) Adverse impacts on health or safety. If it is determined that a
technology would have significant adverse impacts on health or safety,
it will not be considered further.
(5) Unique-pathway proprietary technologies. If a design option
utilizes proprietary technology that represents a unique pathway to
achieving a given efficiency level, that technology will not be
considered further due to the potential for monopolistic concerns.
10 CFR part 430, subpart C, appendix A, sections 6(b)(3) and 7(b).
If DOE determines that a technology, or a combination of
technologies, fails to meet one or more of the listed five criteria, it
will be excluded from further consideration in the engineering
analysis.
See chapter 4 of the preliminary TSD for further discussion of the
screening analysis.
C. Engineering Analysis
The purpose of the engineering analysis is to establish the
relationship between the efficiency and cost of consumer boilers. There
are two elements to consider in the engineering analysis: (1) The
selection of efficiency levels to analyze (i.e., the ``efficiency
analysis'') and (2) the determination of product cost at each
efficiency level (i.e., the ``cost analysis''). In determining the
performance of higher-efficiency products, DOE considers technologies
and design option combinations not eliminated by the screening
analysis.
[[Page 26309]]
For each product class, DOE estimates the manufacturer production cost
(``MPC'') for the baseline, as well as higher efficiency levels. The
output of the engineering analysis is a set of cost-efficiency
``curves'' that are used in downstream analyses (i.e., the LCC and PBP
analyses and the NIA).
DOE converts the MPC to the manufacturer selling price (``MSP'') by
applying a manufacturer markup. The MSP is the price the manufacturer
charges its first customer when selling into the consumer boilers
distribution channels. The manufacturer markup accounts for
manufacturer non-production costs and profit margin. DOE developed the
manufacturer markup by examining publicly-available financial
information for manufacturers of the covered product.
See chapter 5 of the preliminary TSD for additional detail on the
engineering analysis. See chapter 12 of the preliminary TSD for
additional detail on the manufacturer markup.
D. Markups Analysis
The markups analysis develops appropriate markups (e.g., retailer
markups, distributor markups, contractor markups) in the distribution
chain and sales taxes to convert MSP estimates derived in the
engineering analysis to consumer prices, which are then used in the LCC
and PBP analysis. At each step in the distribution channel, companies
mark up the price of the product to cover business costs and profit
margin.
DOE developed baseline and incremental markups for each actor in
the distribution chain for consumer boilers. Baseline markups are
applied to the price of products with baseline efficiency, while
incremental markups are applied to the difference in price between
baseline and higher-efficiency models (the incremental cost increase).
The incremental markup is typically less than the baseline markup and
is designed to maintain similar per-unit operating profit before and
after new or amended standards.\8\
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\8\ Because the projected price of standards-compliant products
is typically higher than the price of baseline products, using the
same markup for the incremental cost and the baseline cost would
result in higher per-unit operating profit. While such an outcome is
possible, DOE maintains that in markets that are reasonably
competitive, it is unlikely that standards would lead to a
sustainable increase in profitability in the long run.
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Chapter 6 of the preliminary TSD provides details on DOE's
development of markups for consumer boilers.
E. Energy Use Analysis
The purpose of the energy use analysis is to determine the annual
energy consumption of consumer boilers at different efficiencies in
representative U.S. single-family homes, multi-family residences, and
commercial buildings, and to assess the energy savings potential of
increased consumer boiler efficiency. The energy use analysis estimates
the range of energy use of consumer boilers in the field (i.e., as they
are actually used by consumers). In addition, the energy use analysis
provides the basis for other analyses DOE performed, particularly
assessments of the energy savings and the savings in consumer operating
costs that could result from adoption of amended or new energy
conservation standards.
Chapter 7 of the preliminary TSD addresses the energy use analysis.
F. Life-Cycle Cost and Payback Period Analyses
The effect of new or amended energy conservation standards on
individual consumers usually involves a reduction in operating cost and
an increase in purchase cost. DOE used the following two metrics to
measure consumer impacts:
The LCC is the total consumer expense of an appliance or
product over the life of that product, consisting of total installed
cost (manufacturer selling price, distribution chain markups, sales
tax, and installation costs) plus operating costs (expenses for energy
use, maintenance, and repair). To compute the operating costs, DOE
discounts future operating costs to the time of purchase and sums them
over the lifetime of the product.
The PBP is the estimated amount of time (in years) it
takes consumers to recover the increased purchase cost (including
installation) of a more-efficient product through lower operating
costs. DOE calculates the PBP by dividing the change in purchase cost
at higher efficiency levels by the change in annual operating cost for
the year that amended or new standards are assumed to take effect.
Chapter 8 of the preliminary TSD addresses the LCC and PBP
analyses.
G. National Impact Analysis
The NIA estimates the national energy savings (``NES'') and the net
present value (``NPV'') of total consumer costs and savings expected to
result from amended standards at specific efficiency levels.\9\ DOE
calculates the NES and NPV for the potential standard levels considered
based on projections of annual product shipments, along with the annual
energy consumption and total installed cost data from the energy use
and LCC analyses. For the present analysis, DOE projected the energy
savings, operating cost savings, product costs, and NPV of consumer
benefits over the lifetime of consumer boilers sold from 2030 through
2059.
---------------------------------------------------------------------------
\9\ The NIA accounts for impacts in the 50 States and U.S.
territories.
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DOE evaluates the impacts of new or amended standards by comparing
a case without such standards (``no-new-standards case'') with
standards-case projections. The no-new-standards case characterizes
energy use and consumer costs for each product class in the absence of
new or amended energy conservation standards. For this projection, DOE
considers historical trends in efficiency and various forces that are
likely to affect the mix of efficiencies over time. DOE compares the
no-new-standards case with projections characterizing the market for
each product class if DOE adopted new or amended standards at specific
energy efficiency levels for that class. For each efficiency level, DOE
considers how a given standard would likely affect the market shares of
product with efficiencies greater than the standard.
For the NIA, DOE uses a spreadsheet model to calculate the energy
savings and the national consumer costs and savings from each
efficiency level. Interested parties can review DOE's analyses by
changing various input quantities within the spreadsheet. The NIA
spreadsheet model uses typical values (as opposed to probability
distributions) as inputs. Critical inputs to this analysis include
shipments projections, estimated product lifetimes, product installed
costs and operating costs, product annual energy consumption, the base
case efficiency projection, and discount rates.
DOE estimates a combined total of approximately 0.70 quads of
potential full-fuel-cycle (FFC) energy savings at the max-tech
efficiency levels for consumer boilers. Combined potential FFC energy
savings at Efficiency Level (EL) 1 for all consumer boiler product
classes analyzed are estimated to be approximately 0.09 quads.
Chapter 10 of the preliminary TSD addresses the NIA.
IV. Public Participation
DOE invites public engagement in this process through participation
in the webinar and submission of written comments, data, and
information. After the webinar and the closing of the comment period,
DOE will consider all timely-submitted comments and additional
information obtained from interested parties, as well as information
obtained through further analyses.
[[Page 26310]]
Following such consideration, the Department will publish either a
determination that the energy conservation standards for consumer
boilers need not be amended or a NOPR proposing to amend those
standards. The NOPR, should one be issued, would include proposed
energy conservation standards for the products covered by this
rulemaking, and members of the public would be given an opportunity to
submit written and oral comments on the proposed standards.
A. Participation in the Public Meeting Webinar
The time and date for the webinar meeting are listed in the DATES
section at the beginning of this document. Webinar registration
information, participant instructions, and information about the
capabilities available to webinar participants will be published on
DOE's website: www1.eere.energy.gov/buildings/appliance_standards/standards.aspx?productid=45. Participants are responsible for ensuring
their systems are compatible with the webinar software.
B. Procedure for Submitting Prepared General Statements for
Distribution
Any person who has an interest in the topics addressed in this
document, or who is representative of a group or class of persons that
has an interest in these issues, may request an opportunity to make an
oral presentation at the public meeting webinar. Such persons may
submit requests to speak via email to the Appliance and Equipment
Standards Program: [email protected]. Persons who
wish to speak should include with their request a computer file in
WordPerfect, Microsoft Word, PDF, or text (ASCII) file format that
briefly describes the nature of their interest in this rulemaking and
the topics they wish to discuss. Such persons should also provide a
daytime telephone number where they can be reached.
Persons requesting to speak should briefly describe the nature of
their interest in this rulemaking and provide a telephone number for
contact. DOE requests persons selected to make an oral presentation to
submit an advance copy of their statements at least two weeks before
the public meeting webinar. At its discretion, DOE may permit persons
who cannot supply an advance copy of their statement to participate, if
those persons have made advance alternative arrangements with the
Building Technologies Office. As necessary, requests to give an oral
presentation should ask for such alternative arrangements.
C. Conduct of the Public Meeting Webinar
DOE will designate a DOE official to preside at the public meeting
webinar and may also use a professional facilitator to aid discussion.
The meeting will not be a judicial or evidentiary-type public hearing,
but DOE will conduct it in accordance with section 336 of EPCA (42
U.S.C. 6306). A court reporter will be present to record the
proceedings and prepare a transcript. DOE reserves the right to
schedule the order of presentations and to establish the procedures
governing the conduct of the public meeting webinar. There shall not be
discussion of proprietary information, costs or prices, market share,
or other commercial matters regulated by U.S. anti-trust laws. After
the public meeting webinar and until the end of the comment period,
interested parties may submit further comments on the proceedings and
any aspect of the rulemaking.
The public meeting webinar will be conducted in an informal,
conference style. DOE will present a general overview of the topics
addressed in this rulemaking, allow time for prepared general
statements by participants, and encourage all interested parties to
share their views on issues affecting this rulemaking. Each participant
will be allowed to make a general statement (within time limits
determined by DOE), before the discussion of specific topics. DOE will
allow, as time permits, other participants to comment briefly on any
general statements.
At the end of all prepared statements on a topic, DOE will permit
participants to clarify their statements briefly and comment on
statements made by others. Participants should be prepared to answer
questions by DOE and by other participants concerning these issues. DOE
representatives may also ask questions of participants concerning other
matters relevant to this rulemaking. The official conducting the public
meeting webinar will accept additional comments or questions from those
attending, as time permits. The presiding official will announce any
further procedural rules or modification of the above procedures that
may be needed for the proper conduct of the public meeting webinar.
A transcript of the public meeting webinar will be included in the
docket, which can be viewed as described in the Docket section at the
beginning of this document. In addition, any person may buy a copy of
the transcript from the transcribing reporter.
D. Submission of Comments
DOE invites all interested parties, regardless of whether they
participate in the public meeting webinar, to submit in writing no
later than the date provided in the DATES section at the beginning of
this document, comments, data, and information on matters addressed in
this notification and on other matters relevant to DOE's consideration
of potential amended energy conservations standards for consumer
boilers. Interested parties may submit comments, data, and other
information using any of the methods described in the ADDRESSES section
at the beginning of this document.
Submitting comments via www.regulations.gov. The
www.regulations.gov web page will require you to provide your name and
contact information. Your contact information will be viewable to DOE
Building Technologies staff only. Your contact information will not be
publicly viewable except for your first and last names, organization
name (if any), and submitter representative name (if any). If your
comment is not processed properly because of technical difficulties,
DOE will use this information to contact you. If DOE cannot read your
comment due to technical difficulties and cannot contact you for
clarification, DOE may not be able to consider your comment.
However, your contact information will be publicly viewable if you
include it in the comment itself or in any documents attached to your
comment. Any information that you do not want to be publicly viewable
should not be included in your comment, nor in any document attached to
your comment. If this instruction is followed, persons viewing comments
will see only first and last names, organization names, correspondence
containing comments, and any documents submitted with the comments.
Do not submit to www.regulations.gov information for which
disclosure is restricted by statute, such as trade secrets and
commercial or financial information (hereinafter referred to as
Confidential Business Information (``CBI'')). Comments submitted
through www.regulations.gov cannot be claimed as CBI. Comments received
through the website will waive any CBI claims for the information
submitted. For information on submitting CBI, see the Confidential
Business Information section.
DOE processes submissions made through www.regulations.gov before
[[Page 26311]]
posting. Normally, comments will be posted within a few days of being
submitted. However, if large volumes of comments are being processed
simultaneously, your comment may not be viewable for up to several
weeks. Please keep the comment tracking number that www.regulations.gov
provides after you have successfully uploaded your comment.
Submitting comments via email. Comments and documents submitted via
email also will be posted to www.regulations.gov. If you do not want
your personal contact information to be publicly viewable, do not
include it in your comment or any accompanying documents. Instead,
provide your contact information in a cover letter. Include your first
and last names, email address, telephone number, and optional mailing
address. The cover letter will not be publicly viewable as long as it
does not include any comments.
Include contact information each time you submit comments, data,
documents, and other information to DOE. No telefacsimiles (faxes) will
be accepted.
Comments, data, and other information submitted to DOE
electronically should be provided in PDF (preferred), Microsoft Word or
Excel, WordPerfect, or text (ASCII) file format. Provide documents that
are not secured, that are written in English, and that are free of any
defects or viruses. Documents should not contain special characters or
any form of encryption and, if possible, they should carry the
electronic signature of the author.
Campaign form letters. Please submit campaign form letters by the
originating organization in batches of between 50 to 500 form letters
per PDF or as one form letter with a list of supporters' names compiled
into one or more PDFs. This reduces comment processing and posting
time.
Confidential Business Information. Pursuant to 10 CFR 1004.11, any
person submitting information that he or she believes to be
confidential and exempt by law from public disclosure should submit via
email two well-marked copies: One copy of the document marked
``confidential'' including all the information believed to be
confidential, and one copy of the document marked ``non-confidential''
with the information believed to be confidential deleted. DOE will make
its own determination about the confidential status of the information
and treat it according to its determination.
It is DOE's policy that all comments may be included in the public
docket, without change and as received, including any personal
information provided in the comments (except information deemed to be
exempt from public disclosure).
V. Approval of the Office of the Secretary
The Secretary of Energy has approved publication of this
notification of availability of the preliminary technical support
document and request for comment.
Signing Authority
This document of the Department of Energy was signed on April 29,
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 April 29, 2022.
Treena V. Garrett,
Federal Register Liaison Officer, U.S. Department of Energy.
[FR Doc. 2022-09548 Filed 5-3-22; 8:45 am]
BILLING CODE 6450-01-P