[Federal Register Volume 87, Number 123 (Tuesday, June 28, 2022)]
[Proposed Rules]
[Pages 38296-38302]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-13652]


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

  Federal Register / Vol. 87, No. 123 / Tuesday, June 28, 2022 / 
Proposed Rules  

[[Page 38296]]



DEPARTMENT OF ENERGY

10 CFR Part 431

[EERE-2017-BT-STD-0007]
RIN 1904-AD82


Energy Conservation Program: Energy Conservation Standards for 
Commercial Refrigerators, Freezers, and Refrigerator-Freezers

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

ACTION: Notification of availability of preliminary technical support 
document and request for comment.

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

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 commercial refrigerators, freezers, and refrigerator-
freezers (``commercial refrigeration equipment'' or ``CRE''), 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 for this equipment, the results of 
preliminary analyses performed by DOE, the potential energy 
conservation standard levels derived from these analyses (if DOE 
determines that proposed amendments are necessary), and other relevant 
issues. In addition, DOE encourages written comments on these subjects.

DATES: 
    Comments: Written comments and information will be accepted on or 
before August 29, 2022.
    Meeting: DOE will hold a webinar on Monday, August 8, 2022, from 1 
p.m. to 4 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 under docket 
number EERE-2017-BT-STD-0007. Follow the instructions for submitting 
comments. Alternatively, interested persons may submit comments, 
identified by docket number EERE-2017-BT-STD-0007, by any of the 
following methods:
    (1) Email: [email protected]. Include the docket number 
EERE-2017-BT-STD-0007 in the subject line of the message.
    (2) Postal Mail: Appliance and Equipment Standards Program, U.S. 
Department of Energy, Building Technologies Office, Mailstop EE-5B, 
1000 Independence Avenue SW, Washington, DC 20585-0121. Telephone: 
(202) 287-1445. If possible, please submit all items on a compact disc 
(``CD''), in which case it is not necessary to include printed copies.
    (3) Hand Delivery/Courier: Appliance and Equipment Standards 
Program, U.S. Department of Energy, Building Technologies Office, 950 
L'Enfant Plaza SW, 6th Floor, Washington, DC 20024. Telephone: (202) 
287-1445. If possible, please submit all items on a CD, in which case 
it is not necessary to include printed copies.
    No telefacsimiles (``faxes'') will be accepted. For detailed 
instructions on submitting comments and additional information on this 
process, see section IV of this document.
    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: 
www.regulations.gov/docket/EERE-2017-BT-STD-0007.
    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/docket/EERE-2017-BT-STD-0007. 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: 
    Dr. Stephanie Johnson, U.S. Department of Energy, Office of Energy 
Efficiency and Renewable Energy, Building Technologies, EE-2J, 1000 
Independence Avenue SW, Washington, DC 20585-0121. Telephone: (202) 
287-1943. Email: [email protected].
    Ms. Kristin Koernig, U.S. Department of Energy, Office of the 
General Counsel, GC-33, 1000 Independence Avenue SW, Washington, DC 
20585-0121. Telephone: (202) 586-3593. Email: 
[email protected].
    For further information on how to submit a comment, review other 
public comments and the docket, contact the Appliance and Equipment 
Standards Program staff at (202) 287-1445 or by email: 
[email protected].

SUPPLEMENTARY INFORMATION:

Table of Contents

I. Introduction
    A. Authority
    B. Rulemaking Process
    C. Deviation 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 Webinar
    B. Procedure for Submitting Prepared General Statements for 
Distribution
    C. Conduct of the Webinar
    D. Submission of Comments
V. Approval of the Office of the Secretary

[[Page 38297]]

I. Introduction

A. Authority

    The Energy Policy and Conservation Act, as amended (``EPCA''),\1\ 
authorizes DOE to regulate the energy efficiency of a number of 
consumer products and certain industrial equipment. (42 U.S.C. 6291-
6317) Title III, part C \2\ of EPCA, added by Public Law 95-619, Title 
IV, section 441(a) (42 U.S.C. 6311-6317, as codified), established the 
Energy Conservation Program for Certain Industrial Equipment. This 
equipment includes CRE, the subject of this document. (42 U.S.C. 
6311(1)(E))
---------------------------------------------------------------------------

    \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), which reflect the last statutory amendments that impact 
Parts A and A-1 of EPCA.
    \2\ For editorial reasons, upon codification in the U.S. Code, 
Part C was redesignated Part A-1.
---------------------------------------------------------------------------

    EPCA established standards for certain categories of CRE (42 U.S.C. 
6313(c)(2)-(4)) and directs DOE to conduct future rulemakings to 
determine whether to amend these standards. (42 U.S.C. 6313(c)(6)(B))
    EPCA further provides that, not later than 6 years after the 
issuance of any final rule establishing or amending a standard, DOE 
must publish either a notification of determination that standards for 
the product do not need to be amended, or a notice of proposed 
rulemaking (``NOPR'') including new proposed energy conservation 
standards (proceeding to a final rule, as appropriate). (42 U.S.C. 
6316(e)(1); 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. 6316(e)(1); 42 U.S.C. 6295(m)(3)(B))
    Under EPCA, any new or amended energy conservation standard must be 
designed to achieve the maximum improvement in energy efficiency that 
DOE determines is technologically feasible and economically justified. 
(42 U.S.C. 6316(e)(1); 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. 6316(e)(1); 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 equipment, including CRE. 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 equipment specified by EPCA) that is 
technologically feasible and economically justified. (42 U.S.C. 
6316(e)(1); 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. 6316(a); 42 U.S.C. 6295(o)(3))
    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 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.\4\ 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 energy infrastructure can be more pronounced than products or 
equipment with relatively constant demand. In evaluating the 
significance of energy savings, DOE considers differences in 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. Accordingly, DOE evaluates the significance of energy 
savings on a case-by-case basis, taking into account the significance 
of cumulative FFC national energy savings, the cumulative FFC emissions 
reductions, and the need to confront the global climate crisis, among 
other factors.
---------------------------------------------------------------------------

    \3\ Procedures, Interpretations, and Policies for Consideration 
in New or Revised Energy Conservation Standards and Test Procedures 
for Consumer Products and Commercial/Industrial Equipment, 86 FR 
70892, 70901 (Dec. 13, 2021).
    \4\ See Executive Order 14008, 86 FR 7619 (Feb. 1, 2021) 
(``Tackling the Climate Crisis at Home and Abroad'').
---------------------------------------------------------------------------

    DOE has initially determined the energy savings estimated for the 
candidate standard levels considered in this preliminary analysis are 
``significant'' within the meaning of 42 U.S.C. 6295(o)(3)(B).
    To determine whether a standard is economically justified, EPCA 
requires that DOE determine whether the benefits of the standard exceed 
its burdens by considering, to the greatest extent practicable, the 
following seven factors:

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

(42 U.S.C. 6316(a); 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.

[[Page 38298]]

 
                                          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 Use 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 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
                                          Benefit.\5\
                                          Regulatory Impact
                                          Analysis.
------------------------------------------------------------------------

    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. 6316(e)(1); 42 U.S.C. 6295(o)(2)(B)(iii))
---------------------------------------------------------------------------

    \5\ 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.
---------------------------------------------------------------------------

    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. 6316(e)(1); 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. 6316(e)(1); 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. 
6316(e)(1); 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. 
6316(e)(1); 42 U.S.C. 6295(q)(2))
    Before proposing a standard, DOE typically seeks public input on 
the analytical framework, models, and tools that DOE intends to use to 
evaluate standards for the equipment at issue and the results of 
preliminary analyses DOE performed for the equipment.
    DOE is examining whether to amend the current standards for CRE 
pursuant to its obligations under EPCA. This notification 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 to solicit feedback from 
interested parties on its analytical framework, models, and preliminary 
results.

C. Deviation From Appendix A

    In accordance with section 3(a) of 10 CFR part 430, subpart C, 
appendix A (``appendix A''), applicable to CRE under 10 CFR 431.4, DOE 
notes that it is deviating from the provision in appendix A regarding 
the pre-NOPR stages for an energy conservation standards rulemaking. 
Section 6(a)(2) of appendix A states that if the Department determines 
it is appropriate to proceed with a rulemaking (after initiating the 
rulemaking process through an early assessment), 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 (``ANOPR''). DOE 
is opting to deviate from this step by publishing

[[Page 38299]]

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 the following 
section, prior to this notification of the preliminary analysis, DOE 
issued an early assessment request for information (``RFI'') in which 
DOE identified and sought comment on the analyses conducted in support 
of the most recent energy conservation standards rulemaking (79 FR 
17726 (March 28, 2014) (the ``March 2014 Final Rule'')). 86 FR 37708, 
37710 (July 16, 2021) (the ``July 2021 RFI''). DOE provided a 45-day 
comment period for the early assessment July 2021 RFI. 86 FR 37708. As 
DOE is intending to rely on substantively the same analytical methods 
as in the March 2014 Final Rule, publication of a framework document 
would be largely redundant with the published early assessment RFI. As 
such, DOE is not publishing a framework document.
    Section 6(d)(2) of appendix A specifies 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 instead provide a 60-day comment period. As stated, DOE 
requested comment in the July 2021 RFI on the analysis conducted in 
support of the March 2014 Final Rule and provided stakeholders a 45-day 
comment period. For this preliminary analysis, DOE has relied on many 
of the same analytical assumptions and approaches as used in the March 
2014 Final Rule and has determined that a 60-day comment period, in 
conjunction with the prior 45-day comment period, provides sufficient 
time for interested parties to review the preliminary analysis and 
develop comments.

II. Background

A. Current Standards

    In the March 2014 Final Rule, DOE prescribed the current energy 
conservation standards for CRE manufactured on and after March 27, 
2017. 79 FR 17725 These standards are set forth in DOE's regulations at 
10 CFR 431.66(e).
    For CRE with two or more compartments (i.e., hybrid refrigerators, 
hybrid freezers, hybrid refrigerator-freezers, and non-hybrid 
refrigerator-freezers), 10 CFR 431.66(e)(2) specifies that the maximum 
daily energy consumption for each model shall be the sum of the 
applicable standard of each of the compartments as specified at 10 CFR 
431.66(e)(1). For wedge cases, 10 CFR 431.66(e)(3) specifies 
instructions to comply with the applicable standards, specified in 10 
CFR 431.66(e)(1).\6\ Certain exclusions to the standards at 10 CFR 
431.66(e)(1) are specified at 10 CFR 431.66(f) (i.e., the energy 
conservation standards do not apply to salad bars, buffet tables, and 
chef bases or griddle stands).
---------------------------------------------------------------------------

    \6\ A wedge case is a CRE that forms the transition between two 
regularly shaped display cases. 10 CFR 431.62.
---------------------------------------------------------------------------

B. Current Process

    In the July 2021 RFI, DOE published a notification 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 CRE, as well as a 
request for information. 86 FR 37708. Specifically, through the 
published notice and request for information, DOE sought data and 
information that could enable the agency to determine whether amended 
energy conservation standards would: (1) result in a significant 
savings of energy; (2) be technologically feasible; and (3) be 
economically justified. Id.
    Comments received to date as part of the current process have 
helped DOE identify and resolve issues related to the preliminary 
analyses. Chapter 2 of the preliminary TSD summarizes and addresses the 
comments received.

III. Summary of the Analyses Performed by DOE

    For the equipment 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 www.regulations.gov/docket/EERE-2017-BT-STD-0007.
    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 new or 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 equipment 
concerned, including general characteristics of the equipment, the 
industry structure, manufacturers, market characteristics, and 
technologies used in the equipment. 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 equipment classes; (2) manufacturers and industry 
structure; (3) existing efficiency programs; (4) market and industry 
trends; and (5) technologies or design options that could improve the 
energy efficiency of the equipment.
    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 equipment utility or equipment availability. If 
it is determined that a technology would have a significant adverse 
impact on the utility of the equipment for significant subgroups of 
consumers or would result in the unavailability of any covered 
equipment type with performance characteristics (including 
reliability), features, sizes, capacities, and volumes that are 
substantially the same as equipment generally available in the 
United

[[Page 38300]]

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 431.4; 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 CRE. There are two 
elements to consider in the engineering analysis: the selection of 
efficiency levels to analyze (i.e., the ``efficiency analysis'') and 
the determination of equipment cost at each efficiency level (i.e., the 
``cost analysis''). In determining the performance of higher-efficiency 
equipment, DOE considers technologies and design option combinations 
not eliminated by the screening analysis. For each equipment 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 equipment 
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 equipment.
    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., wholesaler 
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. 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.\7\
---------------------------------------------------------------------------

    \7\ Because the projected price of standards-compliant equipment 
is typically higher than the price of baseline equipment, 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.
---------------------------------------------------------------------------

    Chapter 6 of the preliminary TSD provides details on DOE's 
development of markups for CRE.

E. Energy Use Analysis

    The purpose of the energy use analysis is to determine the annual 
energy consumption of CRE at different efficiencies in representative 
commercial buildings, and to assess the energy savings potential of 
increased CRE efficiency. The energy use analysis estimates the range 
of energy use of CRE in the field (i.e., as they are actually used by 
consumers). 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 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 equipment over 
the life of that equipment, consisting of total installed cost (MSP, 
distribution chain markups, sales tax, and installation costs) plus 
operating costs (expenses for energy use, maintenance, and repair). To 
compute the operating costs, DOE discounts future operating costs to 
the time of purchase and sums them over the lifetime of the equipment.
     The PBP is the estimated amount of time (in years) it 
takes consumers to recover the increased purchase cost (including 
installation) of more-efficient equipment through lower operating 
costs. DOE calculates the PBP by dividing the change in 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 new or amended standards at specific efficiency 
levels (referred to as candidate standard levels).\8\ DOE calculates 
the NES and NPV for the potential standard levels considered based on 
projections of annual equipment 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, equipment costs, and NPV of consumer benefits 
over the lifetime of CRE sold from 2027 through 2056.
---------------------------------------------------------------------------

    \8\ The NIA accounts for impacts in the 50 states and U.S. 
territories.
---------------------------------------------------------------------------

    DOE evaluates the impacts of new or amended standards by comparing 
a case without such standards with standards case projections (``no-
new-standards case''). The no-new-standards case characterizes energy 
use and consumer costs for each equipment 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 equipment 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 equipment with efficiencies greater than the standard.
    DOE uses a software package written in the Python programming 
language to

[[Page 38301]]

calculate the energy savings and the national consumer costs and 
savings at each standard level and in the no-new-standards case. The 
NIA model uses average values (as opposed to probability distributions) 
as inputs. Critical inputs to this analysis include shipments 
projections, estimated equipment lifetimes, installed costs and 
operating costs, annual energy consumption, the base case efficiency 
projection, and discount rates.
    DOE estimates a combined total of 1.70 quads of site energy savings 
at the max- tech efficiency levels for CRE. Combined site energy 
savings at efficiency level 1 for all equipment classes are estimated 
to be 0.19 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. Following such consideration, the 
Department will publish either a determination that the energy 
conservation standards for CRE 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 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:www.energy.gov/eere/buildings/public-meetings-and-comment-deadlines. 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 webinar. Such persons may submit requests to 
speak via email to the Appliance and Equipment Standards Program at: 
[email protected]. Persons who wish to speak 
should include with their request a computer file in 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.

C. Conduct of the Webinar

    DOE will designate a DOE official to preside at the webinar and may 
also use a professional facilitator to aid discussion. The meeting will 
not be a judicial or evidentiary-type public hearing, but DOE will 
conduct it in accordance with section 336 of EPCA (42 U.S.C. 6306). A 
court reporter will be present to record the proceedings and prepare a 
transcript. DOE reserves the right to schedule the order of 
presentations and to establish the procedures governing the conduct of 
the webinar. There shall not be discussion of proprietary information, 
costs or prices, market share, or other commercial matters regulated by 
U.S. anti-trust laws. After the webinar and until the end of the 
comment period, interested parties may submit further comments on the 
proceedings and any aspect of the rulemaking.
    The webinar will be conducted in an informal, conference style. DOE 
will present 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. Participants should 
be prepared to answer questions by DOE and by other participants 
concerning these issues. DOE representatives may also ask questions of 
participants concerning other matters relevant to this rulemaking. The 
official conducting the webinar/public meeting will accept additional 
comments or questions from those attending, as time permits. The 
presiding official will announce any further procedural rules or 
modification of the above procedures that may be needed for the proper 
conduct of the webinar.
    A transcript of the webinar will be included in the docket, which 
can be viewed as described in the Docket section at the beginning of 
this document. In addition, any person may buy a copy of the transcript 
from the transcribing reporter.

D. Submission of Comments

    DOE invites all interested parties, regardless of whether they 
participate in the public meeting webinar, to submit in writing no 
later than the date provided in the DATES section at the beginning of 
this document, comments and information on matters addressed in this 
notification and on other matters relevant to DOE's consideration of 
potential amended energy conservations standards for CRE. 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

[[Page 38302]]

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, hand delivery/courier, or postal 
mail. Comments and documents submitted via email, hand delivery/
courier, or postal mail 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. If you submit via postal mail 
or hand delivery/courier, please provide all items on a CD, if 
feasible, in which case it is not necessary to submit printed copies. 
No faxes will be accepted.
    Comments, data, and other information submitted to DOE 
electronically should be provided in PDF (preferred), Microsoft Word or 
Excel, WordPerfect, or text (ASCII) file format. Provide documents that 
are not secured, that are written in English, and that are free of any 
defects or viruses. Documents should not contain special characters or 
any form of encryption and, if possible, they should carry the 
electronic signature of the author.
    Campaign form letters. Please submit campaign form letters by the 
originating organization in batches of between 50 to 500 form letters 
per PDF or as one form letter with a list of supporters' names compiled 
into one or more PDFs. This reduces comment processing and posting 
time.
    Confidential Business Information. Pursuant to 10 CFR 1004.11, any 
person submitting information that he or she believes to be 
confidential and exempt by law from public disclosure should submit via 
email 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 June 21, 
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 June 22, 2022.
Treena V. Garrett,
Federal Register Liaison Officer, U.S. Department of Energy.
[FR Doc. 2022-13652 Filed 6-27-22; 8:45 am]
BILLING CODE 6450-01-P