[Federal Register Volume 87, Number 125 (Thursday, June 30, 2022)]
[Proposed Rules]
[Pages 39008-39015]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-13957]
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DEPARTMENT OF ENERGY
10 CFR Part 431
[EERE-2017-BT-STD-0009]
RIN 1904-AD79
Energy Conservation Program: Energy Conservation Standards for
Walk-In Coolers and 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.
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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 amending the current energy
conservation standards for walk-in coolers and freezers (``walk-ins''
or ``WICFs''). The analysis is set forth in the Department's
accompanying preliminary technical support document (``TSD'') for this
rulemaking. DOE will hold a public meeting via webinar to discuss and
receive comment on the preliminary analysis. The meeting will cover the
analytical framework, models, and tools that DOE is using to evaluate
potential standards; 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 Friday, July, 22, 2022, from 1
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 https://www.regulations.gov, under
docket number EERE-2017-BT-STD-0009. Follow the instructions for
submitting comments. Alternatively, interested persons may submit
comments, identified by docket number EERE-2017-BT-STD-0009, by any of
the following methods:
(1) Email: [email protected]. Include the docket number
EERE-2017-BT-STD-0009 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: https://www1.eere.energy.gov/buildings/appliance_standards/standards.aspx?productid=56&action=viewlive.
Docket: The docket for this activity, which includes Federal
Register notices, comments, public meeting transcripts, and other
supporting documents/materials, is available for review at https://www.regulations.gov. All documents in the docket are listed in the
https://www.regulations.gov index. However, some documents listed in
the index, such as those containing information that is exempt from
public disclosure, may not be publicly available.
The docket web page can be found at https://www.regulations.gov/docket/EERE-2017-BT-STD-0009. The docket web page contains instructions
on how to access all documents, including
[[Page 39009]]
public comments in the docket. See section IV of this document for
information on how to submit comments through https://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-5B, 1000
Independence Avenue SW, Washington, DC 20585-0121. Telephone: (202)
287-1943. Email: [email protected]">ApplianceStandards[email protected].
Mr. Michael Kido, U.S. Department of Energy, Office of the General
Counsel, GC-33, 1000 Independence Avenue SW, Washington, DC 20585-0121.
Telephone: (202) 586-8145. 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,
contact the Appliance and Equipment Standards Program staff at (202)
287-1445 or by email: [email protected]">ApplianceStandards[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
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 established the Energy Conservation
Program for Certain Industrial Equipment. This equipment includes walk-
in coolers and walk-in freezers, the subject of this document. (42
U.S.C. 6311(1)(G))
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\1\ All references to EPCA in this document refer to the statute
as amended through the Energy Act of 2020, Public Law 116-260 (Dec.
27, 2020), 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.
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EPCA prescribes a set of basic requirements for walk-ins. First,
all walk-in doors narrower than 3 feet 9 inches and shorter than 7 feet
must have automatic door closers that firmly close all walk-in doors
that have been closed to within 1 inch of full closure. All walk-ins
must also have strip doors, spring hinged doors, or other methods of
minimizing infiltration when doors are open. Additionally, walk-ins
must contain wall, ceiling, and door insulation of at least R-25 for
coolers and R-32 for freezers, excluding glazed portions of doors and
structural members, and floor insulation of at least R-28 for freezers.
Walk-in evaporator fan motors of under 1 horsepower (``hp'') and less
than 460 volts must be electronically commutated motors (brushless
direct current motors) or three-phase motors, and walk-in condenser fan
motors of under 1 horsepower must use permanent split capacitor motors,
electronically commutated motors, or three-phase motors. Interior light
sources must have an efficacy of 40 lumens per watt or more, including
any ballast losses; less-efficacious lights may only be used in
conjunction with a timer or device that turns off the lights within 15
minutes of when the walk-in is unoccupied. (See 42 U.S.C. 6313(f)(1))
Additionally, EPCA requires that walk-in freezers with transparent
reach-in doors and windows must have triple-pane glass with either
heat-reflective treated glass or gas fill. Transparent walk-in cooler
doors and windows must have either double-pane glass with heat-
reflective treated glass and gas fill or triple-pane glass with heat-
reflective treated glass or gas fill. (42 U.S.C. 6313(f)(3)(A)-(B))
EPCA also prescribes specific anti-sweat heater-related requirements:
Walk-ins without anti-sweat heater controls must have a heater power
draw of no more than 7.1 or 3.0 watts per square foot of door opening
for freezers and coolers, respectively. If walk-ins have a heater power
draw of more than 7.1 or 3.0 watts per square foot of door opening for
freezers and coolers, respectively, then the walk-in must have anti-
sweat heater controls that reduce the energy use of the heater in a
quantity corresponding to the relative humidity of the air outside the
door or to the condensation on the inner glass pane. See 42 U.S.C.
6313(f)(3)(C)-(D).
Additionally, EPCA prescribed two cycles of WICF-specific
rulemakings; the first to establish performance-based standards that
achieve the maximum improvement in energy that the Secretary determines
is technologically feasible and economically justified, and the second
to determine whether to amend those standards. (42 U.S.C. 6313(f)(4)
and (5)) DOE has satisfied the first of these requirements. See 79 FR
32050 (June 3, 2014) (establishing WICF performance standards) and 82
FR 31808 (July 10, 2017) (addressing prior rulemaking errors by
amending certain refrigeration system class standards). This document
addresses the second cycle of rulemaking.
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 equipment 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(a); 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
equipment 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(a); 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(a); 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(a); 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 walk-ins. 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
[[Page 39010]]
economically justified. (42 U.S.C. 6316(a); 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 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.\4\ As such, energy savings
that reduce GHG emission have taken on greater importance.
Additionally, some covered products and equipment have most of their
energy consumption occur during periods of peak energy demand. The
impacts of these products on the energy infrastructure can be more
pronounced than products with relatively constant demand. In evaluating
the significance of energy savings, DOE considers differences in
primary energy and FFC effects for different covered products and
equipment when determining whether energy savings are significant.
Primary energy and FFC effects include the energy consumed in
electricity production (depending on load shape), in distribution and
transmission, and in extracting, processing, and transporting primary
fuels (i.e., coal, natural gas, petroleum fuels), and thus present a
more complete picture of the impacts of energy conservation standards.
Accordingly, DOE evaluates the significance of energy savings on a
case-by-case basis.
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\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'').
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DOE has initially determined the energy savings for the candidate
standard levels evaluated in this preliminary analysis rulemaking 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.
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\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.
Table I.1--EPCA Requirements and Corresponding DOE Analysis
------------------------------------------------------------------------
EPCA requirement Corresponding DOE analysis
------------------------------------------------------------------------
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 Manufacturer Impact
manufacturers and consumers. Analysis.
Life-Cycle Cost and Payback
Period Analysis.
Life-Cycle Cost Subgroup
Analysis.
Shipments Analysis.
2. Lifetime operating cost Markups for Equipment Price
savings compared to increased Analysis.
cost for the product. Energy Use Analysis.
Life-Cycle Cost and Payback
Period Analysis.
3. Total projected energy Shipments Analysis.
savings. National Impact Analysis.
4. Impact on utility or Screening Analysis.
performance. Engineering Analysis.
5. Impact of any lessening of Manufacturer Impact
competition. Analysis.
6. Need for national energy Shipments Analysis.
and water conservation. National Impact Analysis.
7. Other factors the Secretary Employment Impact Analysis.
considers relevant. Utility Impact Analysis.
Emissions Analysis.
Monetization of Emission
Reductions Benefits.\5\
Regulatory Impact Analysis.
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[[Page 39011]]
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 equipment 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(a); 42 U.S.C. 6295(o)(2)(B)(iii))
EPCA also contains what is known as an ``anti-backsliding''
provision, which prevents the Secretary from prescribing any amended
standard that either increases the maximum allowable energy use or
decreases the minimum required energy efficiency of a covered
equipment. (42 U.S.C. 6316(a); 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 equipment 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(a); 42 U.S.C. 6295(o)(4))
Additionally, EPCA specifies requirements when promulgating an
energy conservation standard for covered equipment that has two or more
subcategories. DOE must specify a different standard level for a type
or class of equipment 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 equipment within
such type (or class); or (B) have a capacity or other performance-
related feature which other equipment within such type (or class) do
not have and such feature justifies a higher or lower standard. (42
U.S.C. 6316(a); 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(a); 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 product.
DOE is examining whether to amend the current standards 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 walk-ins 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 provision 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 the
following section, prior to this notification of the preliminary
analysis, DOE issued an early assessment request for information on
July 16, 2021 (``July 2021 RFI'') in which DOE identified and sought
data, information, and comment to evaluate whether the existing energy
conservation standards for walk-ins should be amended. 86 FR 37687,
37689. DOE provided a 30-day comment period for the RFI. DOE intends to
rely on substantively the same analytical methods as those used in the
most recent rulemakings for walk-ins, making publication of a framework
document largely redundant with the July 2021 RFI. As such, DOE is not
publishing a framework document.
DOE notes that it is also deviating from the provision in appendix
A regarding the length of comment periods for the pre-NOPR stages for
an energy conservation standards rulemaking. Section 6(d)(2) of
appendix A specifies that the length of the public comment period for
pre-NOPR rulemaking documents will not be less than 75 calendar days.
For the preliminary analysis, DOE has opted instead to provide a 60-day
comment period. As stated, DOE requested comment in the July 2021 RFI
on the analysis conducted in support of the last energy conservation
standard rulemaking for WICFs. Given that the analysis will largely
remain the same, and in light of the 30-day comment period DOE has
already provided with its July 2021 RFI, DOE has determined that a 60-
day comment period is sufficient to enable interested parties to review
the tentative methodologies and accompanying analysis to develop
meaningful comments in response to the preliminary TSD.
II. Background
A. Current Standards
In a final rule published on June 3, 2014 (``June 2014 Final
Rule''), DOE adopted the current energy conservation standards for
walk-in doors, panels, and medium-temperature dedicated condensing
systems manufactured on and after June 5, 2017. 79 FR 32050. In the
June 2014 Final Rule, DOE also adopted standards for other classes of
refrigeration systems; however, after publication of the June 2014
Final Rule, the Air-Conditioning, Heating and Refrigeration Institute
(``AHRI'') and Lennox International, Inc. (``Lennox''), a manufacturer
of walk-in refrigeration systems, filed petitions for review of DOE's
final rule and DOE's subsequent denial of a petition for
reconsideration of the rule (79 FR 59090 (October 1, 2014)) with the
United States Court of Appeals for the Fifth Circuit. Lennox Int'l v.
Dep't of Energy, Case No. 14-60535 (5th Cir.). As a result of this
litigation, a settlement agreement was reached to address, and a
controlling order from the Fifth Circuit vacated, standards for six of
the refrigeration system equipment classes--the two energy conservation
standards applicable to multiplex condensing refrigeration systems
(subsequently re-named as ``unit coolers'') operating at medium and low
temperatures and the four energy conservation standards applicable to
dedicated condensing refrigeration systems operating at low
temperatures.\6\ After the Fifth Circuit issued its order, DOE
established a Working Group to negotiate energy
[[Page 39012]]
conservation standards to replace the six vacated standards. 80 FR
46521 (August 5, 2015). The Working Group assembled its recommendations
into a Term Sheet (See Docket EERE-2015-BT-STD-0016-0056) that was
presented to, and approved by, the Appliance Standards and Rulemaking
Federal Advisory Committee (``ASRAC'') on December 18, 2015. (EERE-
2015-BT-STD-0016-0055 at p. 11)
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\6\ The thirteen other standards established in the June 2014
Final Rule (i.e., the four standards applicable to dedicated
condensing refrigeration systems operating at medium-temperatures;
the three standards applicable to panels; and the six standards
applicable to doors) were not vacated.
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In a final rule published on July 10, 2017 (``July 2017 Final
Rule''), DOE published a final rule adopting current energy
conservation standards for the six classes of walk-in refrigeration
systems for which the prior standards were vacated--specifically, unit
coolers and low-temperature dedicated condensing systems manufactured
on and after July 10, 2020. 82 FR 31808. These standards are set forth
in DOE's regulations at 10 CFR 431.306 and are repeated in Tables II.1
through II.3.
Table II.1--Federal Energy Conservation Standards for Walk-In Coolers
and Walk-In Freezer Doors
------------------------------------------------------------------------
Equations for maximum
Equipment class daily energy use (kWh/day)
------------------------------------------------------------------------
Display door, medium temperature........... 0.04 x Add + 0.41
Display door, low temperature.............. 0.15 x Add + 0.29
Passage door, medium temperature........... 0.05 x And + 1.7
Passage door, low temperature.............. 0.14 x And + 4.8
Freight door, medium temperature........... 0.04 x And + 1.9
Freight door, low temperature.............. 0.12 x And + 5.6
------------------------------------------------------------------------
Add or And = surface area of the display door or non-display door,
respectively, expressed in ft\2\, as determined in appendix A to
subpart R of 10 CFR part 431.
Table II.2--Federal Energy Conservation Standards for Walk-In Coolers
and Walk-In Freezer Panels
------------------------------------------------------------------------
Minimum R-value
Equipment class (h-ft\2\-[deg]F/
Btu)
------------------------------------------------------------------------
Wall or ceiling panels, medium temperature........... 25
Wall or ceiling panels, low temperature.............. 32
Floor panels, low temperature........................ 28
------------------------------------------------------------------------
Table II.3--Federal Energy Conservation Standards for Walk-In Coolers
and Walk-In Freezer Refrigeration Systems
------------------------------------------------------------------------
Equipment class Minimum AWEF (Btu/W-h)
------------------------------------------------------------------------
Dedicated condensing system, medium 5.61
temperature, indoor.
Dedicated condensing system, medium 7.60
temperature, outdoor.
Dedicated condensing system, low 9.091 x 10-5 x qnet + 1.81
temperature, indoor with a net capacity
(qnet) of <6,500 Btu/h.
Dedicated condensing system, low 2.40
temperature, indoor with a net capacity
(qnet) of >=6,500 Btu/h.
Dedicated condensing system, low 6.522 x 10-5 x qnet + 2.73
temperature, outdoor with a net capacity
(qnet) of <6,500 Btu/h.
Dedicated condensing system, low 3.15
temperature, outdoor with a net capacity
(qnet) of >=6,500 Btu/h.
Unit cooler, medium temperature............ 9.00
Unit cooler, low temperature, indoor with a 1.575 x 10-5 x qnet + 3.91
net capacity (qnet) of <15,500 Btu/h.
Unit cooler, low temperature, indoor with a 4.15
net capacity (qnet) of >=15,500 Btu/h.
------------------------------------------------------------------------
B. Current Process
As noted earlier, DOE published an RFI to initiate 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 walk-ins and to solicit relevant
information from the public. 86 FR 37687. Through the RFI, DOE sought
data and information to, among other things, help the agency determine
whether DOE should propose a ``no new standard'' determination because
a more stringent standard: (1) would not result in a significant
savings of energy; (2) is not technologically feasible; (3) is not
economically justified; or (4) any combination of foregoing. Id.
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
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
[[Page 39013]]
could improve the energy efficiency of the product.
See chapter 3 of the preliminary TSD for further discussion of the
market and technology assessment.
B. Screening Analysis
DOE uses the following five screening criteria to determine which
technology options are suitable for further consideration in an energy
conservation standards rulemaking:
(1) Technological feasibility. Technologies that are not
incorporated in commercial products or in working prototypes will not
be considered further.
(2) Practicability to manufacture, install, and service. If it is
determined that mass production and reliable installation and servicing
of a technology in commercial products could not be achieved on the
scale necessary to serve the relevant market at the time of the
projected compliance date of the standard, then that technology will
not be considered further.
(3) Impacts on product utility or product availability. If it is
determined that a technology would have a significant adverse impact on
the utility of the product for significant subgroups of consumers or
would result in the unavailability of any covered product type with
performance characteristics (including reliability), features, sizes,
capacities, and volumes that are substantially the same as products
generally available in the United States at the time, it will not be
considered further.
(4) Adverse impacts on health or safety. If it is determined that a
technology would have significant adverse impacts on health or safety,
it will not be considered further.
(5) Unique-pathway proprietary technologies. If a design option
utilizes proprietary technology that represents a unique pathway to
achieving a given efficiency level, that technology will not be
considered further due to the potential for monopolistic concerns.
10 CFR part 430, subpart C, appendix A, sections 6(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 walk-ins. 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 product.
See Chapter 5 of the preliminary TSD for additional detail on the
engineering analysis.
D. Markups Analysis
The markups analysis develops appropriate markups (e.g., 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 equipment to cover business costs and profit
margin.
DOE developed baseline and incremental markups for each agent 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\
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\7\ Because the projected price of standards-compliant products
is typically higher than the price of baseline products, using the
same markup for the incremental cost and the baseline cost would
result in higher per-unit operating profit. While such an outcome is
possible, DOE maintains that in markets that are reasonably
competitive it is unlikely that standards would lead to a
sustainable increase in profitability in the long run.
---------------------------------------------------------------------------
Chapter 6 of the preliminary TSD provides details on DOE's
development of markups for walk-ins.
E. Energy Use Analysis
The purpose of the energy use analysis is to determine the annual
energy consumption of walk-ins at different efficiencies in
representative U.S. commercial buildings and to assess the energy
savings potential of increased walk-in efficiency. The energy use
analysis estimates the range of energy use of walk-ins 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 an appliance or
equipment over the life of that product, consisting of total installed
cost (MSP, distribution chain markups, sales tax, and installation
costs) plus operating costs (expenses for energy 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 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 amended standards at specific efficiency
[[Page 39014]]
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 walk-ins 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 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 equipment lifetimes, equipment installed costs and operating
costs, equipment annual energy consumption, the base case efficiency
projection, and discount rates.
DOE estimates a combined total of 3.647 quads of FFC energy savings
at the max-tech efficiency levels for walk-in doors, panels, and
refrigeration systems may result if amended standards are implemented.
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 and data. After the
webinar and the closing of the comment period, DOE will consider all
timely-submitted comments and additional information obtained from
interested parties, as well as information obtained through further
analyses. Following such consideration, the Department will publish
either a determination that the standards for walk-ins 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: https://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 such request
to [email protected]">ApplianceStandards[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.
C. Conduct of the Webinar
DOE will designate a DOE official to preside at the webinar/public
meeting 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
document, allow time for prepared general statements by participants,
and encourage all interested parties to share their views on issues
affecting this document. Each participant will be allowed to make a
general statement (within time limits determined by DOE), before the
discussion of specific topics. DOE will permit, as time allows, 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 will accept comments, data, and information regarding this
proposed rule before or after the public meeting, but no later than the
date provided in the DATES section at the beginning of this document.
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 https://www.regulations.gov. The https://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
[[Page 39015]]
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. Otherwise, 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 https://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 https://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 https://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 https://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 https://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 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 the availability of the preliminary technical support
document and request for comment.
Signing Authority
This document of the Department of Energy was signed on June 24,
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 24, 2022.
Treena V. Garrett,
Federal Register Liaison Officer, U.S. Department of Energy.
[FR Doc. 2022-13957 Filed 6-29-22; 8:45 am]
BILLING CODE 6450-01-P