[Federal Register Volume 87, Number 171 (Tuesday, September 6, 2022)]
[Rules and Regulations]
[Pages 54330-54346]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-18856]
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DEPARTMENT OF ENERGY
10 CFR Part 430
[EERE-2021-BT-DET-0034]
RIN 1904-AF30
Energy Conservation Program: Final Determination of Miscellaneous
Gas Products as a Covered Consumer Product
AGENCY: Office of Energy Efficiency and Renewable Energy, Department of
Energy.
ACTION: Final rule; final determination.
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SUMMARY: The U.S. Department of Energy (``DOE'') has determined that
miscellaneous gas products (``MGPs''), which are comprised of
decorative hearths and outdoor heaters, qualify as covered products
under Part A of Title III of the Energy Policy and Conservation Act, as
amended (``EPCA''). DOE has determined that coverage of MGPs is
necessary and appropriate to carry out the purposes of EPCA, and that
the average U.S. household energy use for MGPs is likely to exceed 100
kilowatt-hours per year.
DATES: The effective date of this rule is October 6, 2022.
ADDRESSES: The docket for this rulemaking, which includes Federal
Register notices, public meeting attendee lists and transcripts,
comments, and other supporting documents/materials, is available for
review at www.regulations.gov. All documents in the docket are listed
in the www.regulations.gov index. However, not all documents listed in
the index may be publicly available, such as information that is exempt
from public disclosure.
The docket web page can be found at www.regulations.gov/docket/EERE-2021-BT-DET-0034. The docket web page contains instructions on how
to access all documents, including public comments, in the docket.
For further information on how to review the docket, contact the
Appliance and Equipment Standards Program staff at (202) 287-1445 or by
email: [email protected].
FOR FURTHER INFORMATION CONTACT: Ms. Julia Hegarty, U.S. Department of
Energy, Office of Energy Efficiency and
[[Page 54331]]
Renewable Energy, Building Technologies Office, EE-5B, 1000
Independence Avenue SW, Washington, DC 20585-0121. Email:
[email protected].
Mr. Matthew Schneider, U.S. Department of Energy, Office of the
General Counsel, GC-33, 1000 Independence Avenue SW, Washington, DC
20585-0121. Telephone: (240) 597-6265. Email:
[email protected].
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Introduction
A. Statutory Authority
B. Background
II. General Discussion
A. Definitions and Scope of Coverage
1. Outdoor Heaters
2. Decorative Hearth Products
3. Miscellaneous Gas Products Scope
4. Propane Products
5. Unvented Hearth Products
6. ANSI Standard Certifications
B. Other Comments Received
1. Indoor Heating Products
2. Shipments
3. Energy Use Analysis
a. Ignition Systems
b. Main Burner Operation
4. Economic Analysis
5. Process-Related Comments
C. Evaluation of Miscellaneous Gas Products as Covered Products
1. Coverage Necessary or Appropriate To Carry Out the Purposes
of EPCA
2. Average Annual Per-Household Energy Use
III. Final Determination
IV. Procedural Issues and Regulatory Review
A. Review Under Executive Orders 12866 and 13563
B. Review Under the Regulatory Flexibility Act
C. Review Under the Paperwork Reduction Act
D. Review Under the National Environmental Policy Act of 1969
E. Review Under Executive Order 13132
F. Review Under Executive Order 12988
G. Review Under the Unfunded Mandates Reform Act of 1995
H. Review Under the Treasury and General Government
Appropriations Act, 1999
I. Review Under Executive Order 12630
J. Review Under the Treasury and General Government
Appropriations Act, 2001
K. Review Under Executive Order 13211
L. Information Quality
M. Congressional Notification
V. Approval of the Office of the Secretary
I. Introduction
The following section briefly discusses the statutory authority
underlying this final rule, as well as some of the relevant historical
background related to the inclusion of MGPs as covered equipment under
the Energy Policy and Conservation Act (``EPCA''), as amended.
A. Statutory Authority
EPCA \1\ authorizes DOE to regulate the energy efficiency of a
number of consumer products and certain industrial equipment. Title
III, Part B \2\ of EPCA established the Energy Conservation Program for
Consumer Products Other Than Automobiles, which sets forth a variety of
provisions designed to improve energy efficiency for certain consumer
products, referred to generally as ``covered products''.\3\ In addition
to specifying a list of consumer products that are covered products,
EPCA authorizes the Secretary of Energy to classify additional types of
consumer products as covered products. EPCA defines a ``consumer
product'' in relevant part as any article (other than an automobile) of
a type--(A) which in operation consumes, or is designed to consume,
energy; and (B) which, to any significant extent, is distributed in
commerce for personal use or consumption by individuals; without regard
to whether such article of such type is in fact distributed in commerce
for personal use or consumption by an individual.\4\ (42 U.S.C.
6291(a)(1)) For a given consumer product to be classified as a covered
product, the Secretary must determine that: classifying the product as
a covered product is necessary or appropriate to carry out the purposes
of this chapter; and the average annual per-household energy use by
products of such type is likely to exceed 100 kilowatt-hours (``kWh'')
(or its British thermal unit (``Btu'') equivalent) per year. (42 U.S.C.
6292(b)(1)) \5\
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\1\ All references to EPCA in this document refer to the statute
as amended through the Energy Act of 2020, Public Law 116-260 (Dec.
27, 2020).
\2\ For editorial reasons, upon codification in the U.S. Code,
Part B was redesignated Part A and is hereinafter referred to as
such.
\3\ The enumerated list of covered products is at 42 U.S.C.
6292(a)(1)-(19).
\4\ As such, in considering the potential scope of coverage, DOE
does not consider whether an individual product is distributed in
commerce for residential or commercial use, but whether it is of a
type of product distributed in commerce for residential use.
\5\ DOE has defined ``household'' to mean an entity consisting
of either an individual, a family, or a group of unrelated
individuals, who reside in a particular housing unit. For the
purpose of this definition:
Group quarters means living quarters that are occupied by an
institutional group of 10 or more unrelated persons, such as a
nursing home, military barracks, halfway house, college dormitory,
fraternity or sorority house, convent, shelter, jail or correctional
institution.
Housing unit means a house, an apartment, a group of rooms, or a
single room occupied as separate living quarters, but does not
include group quarters.
Separate living quarters means living quarters: (i) to which the
occupants have access either directly from outside of the building,
or through a common hall that is accessible to other living quarters
and that does not go through someone else's living quarters, and
(ii) occupied by one or more persons who live and eat separately
from occupant(s) of other living quarters, if any, in the same
building. 10 CFR 430.2.
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When attempting to cover additional consumer product types, DOE
must first determine whether these criteria from 42 U.S.C. 6292(b)(1)
are met. Once a determination is made, the Secretary may prescribe test
procedures to measure the energy efficiency or energy use of such
product. (42 U.S.C. 6293(a)(1)(B)) Furthermore, once a product is
determined to be a covered product, the Secretary may set standards for
such product, subject to the provisions in 42 U.S.C. 6295(o) and (p),
provided that DOE determines that four additional criteria at 42 U.S.C.
6295(l) have been met. Specifically, 42 U.S.C. 6295(l) requires the
Secretary to determine that: the average household energy use of the
products has exceeded 150 kWh per household for a 12-month period; the
aggregate 12-month energy use of the products has exceeded 4,200
gigawatthours; substantial improvement in energy efficiency of products
of such type is technologically feasible; and application of a labeling
rule under 42 U.S.C. 6294 is unlikely to be sufficient to induce
manufacturers to produce, and consumers and other persons to purchase,
covered products of such type (or class) that achieve the maximum
energy efficiency that is technologically feasible and economically
justified. (42 U.S.C. 6295(l)(1))
B. Background
On February 7, 2022, DOE published a notice of proposed
determination (``NOPD'') that proposed to determine coverage for MGPs,
which are consumer products comprising: (1) Those hearth products that
are not direct heating equipment (``DHE'') (i.e., those hearth products
that are indoor or outdoor decorative hearth products) and (2) outdoor
heaters. 87 FR 6786 (``February 2022 NOPD''). The rulemaking history of
MGPs as well as hearth products is discussed in the February 2022 NOPD.
87 FR 6786, 6787--6788.
II. General Discussion
DOE developed this determination after considering comments, data,
and information from interested parties that represent a variety of
interests. Table II.1 lists the interested parties that provided
comments on the February 2022 NOPD.
[[Page 54332]]
Table II.1--February 2022 NOPD Written Comments
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Comment No. in the
Commenter(s) Abbreviation docket Commenter type
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Hearth, Patio & Barbecue Association... HPBA..................................... 2 *, 3, and 11 Trade Association
American Gas Association............... AGA...................................... 4 Trade Association.
American Public Gas Association........ APGA..................................... 5 and 14 Trade Association.
National Propane Gas Association....... NPGA..................................... 6 Trade Association.
Dana Moroz............................. Moroz.................................... 7 Individual.
The Outdoor GreatRoom Company.......... OGC...................................... 8 Manufacturer.
Hearth & Home Technologies............. HHT...................................... 9 Manufacturer.
Alliance for Green Heat................ AGH...................................... 10 Efficiency Organization.
California Investor-Owned Utilities.... CA IOUs.................................. 12 Utilities.
Appliance Standards Awareness Project, Joint Commenters......................... 13 Efficiency Organizations.
American Council for an Energy-
Efficient Economy, Natural Resources
Defense Council, Northwest Energy
Efficiency Alliance.
American Gas Association and American Gas Associations......................... 15 Trade Association.
Propane Gas Association.
The Air-Conditioning, Heating, and AHRI..................................... 16 Trade Association.
Refrigeration Institute.
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* Comment No. 2 was submitted by Barton Day, Counsel for HPBA.
A. Definitions and Scope of Coverage
MGPs as considered in this final determination are comprised of
decorative hearth products and outdoor heaters. In the February 2022
NOPD, DOE proposed to define a ``decorative hearth product'' as a gas-
fired appliance that:
Simulates a solid-fueled fireplace or presents a flame
pattern;
Includes products designed for indoor use, outdoor use, or
either indoor or outdoor use;
Is not designed to be operated with a thermostat;
For products designed for indoor use, is not designed to
provide space heating to the space in which it is installed; and
For products designed for outdoor use, is not designed to
provide heat proximate to the unit. 87 FR 6786, 6790. A wide range of
decorative hearth products are available on the market, including, for
example, gas log sets, gas fire pits, gas stoves, and gas fireplace
inserts. Decorative hearth products may be used indoors or outdoors.
In the February 2022 NOPD, DOE proposed to define an ``outdoor
heater'' as a gas-fired appliance designed for use in outdoor spaces
only, and which is designed to provide heat proximate to the unit. 87
FR 6786, 6790.
1. Outdoor Heaters
In response to the definition for outdoor heaters proposed in the
February 2022 NOPD, HHT commented that the proposed definition for
outdoor heaters is very broad as it covers radiant heaters, firepits,
and outdoor fireplaces. HHT added that the majority of the products in
this category are for aesthetic appeal and not for use as a local heat
source. (HHT, No. 9 at p. 2)
HPBA commented that the definition of outdoor heaters is vague,
overbroad, unjustified, and susceptible to potential abuse. HPBA stated
that if DOE intends to cover products other than gas-fired outdoor
infrared patio heaters subject to the [American National Standards
Institute (ANSI)] Z83.26 standard, they must be identified and a
justification for their coverage provided. (HPBA, No. 11 at pp. 47-48)
HPBA added that the definition is overbroad because it includes
portable and non-portable units subject to ANSI Z83.26. HPBA stated
that these two categories of products are too different in their design
and constraints to be considered a single product. HPBA suggested that
a heating efficiency standard for any of these products should be
limited to strictly utilitarian heating products and should exclude
``patio heaters.'' Further, HPBA stated that patio heaters are not
strictly utilitarian as they provide outdoor lighting or visual appeal
and are likely to be compromised by high heating efficiencies. (Id. at
p. 48)
Moroz commented that patio heaters are the only outdoor appliance
that should be covered as outdoor heaters, and stated that gas
fireplaces and gas fire pits serve as decorative appliances, and should
not be considered outdoor heaters. Moroz commented that they are only
aware of outdoor gas fireplaces for decorative use, as opposed to being
intended as heaters. Moroz questioned the benefit of regulating the
efficiency of an appliance that emits heat directly to the atmosphere.
(Moroz, No. 7 at p. 1)
The definition of outdoor heaters, as DOE proposed to define it in
the February 2022 NOPD and as adopted in this final determination,
could include products such as patio heaters, outdoor fire pits, and
outdoor fireplaces, so long as they are designed to provide heat to the
space around the unit. (DOE notes that were such products not designed
to provide heat to the space proximate the unit, they may instead be
classified as decorative hearth products.) Therefore, DOE clarifies
that products other than patio heaters could meet the definition of
outdoor heaters, if those products are designed for use in outdoor
spaces and designed to provide heat to the space proximate the unit. In
contrast to the assertions by commenters that the definition is
overbroad, DOE notes that products must meet specific criteria to be
considered an outdoor heater--be designed for installation in outdoor
spaces only, and be designed to provide heat proximate to the unit. If
a product does not meet both aspects of this definition it would not be
an ``outdoor heater''. Regardless of whether a product is marketed as a
``patio heater'' or some other term, or if it is certified to ANSI
Z83.26 or another standard, it would be covered as an ``outdoor
heater'' if it meets both parts of this definition. A product that is
designed for installation outdoors, but that is not designed to provide
heat proximate to the unit may be classified as a decorative hearth
product if all other definitional criteria for decorative hearth
product were met.
Moroz commented that an outdoor heater is operated when outdoor
temperatures cause personal discomfort, and a decorative hearth
appliance is operated when the user wishes to enjoy the ambiance
created by the flame of the appliance. (Moroz, No. 7 at p. 2) HPBA
suggested that patio heaters may produce a combination of heat,
lighting, and/or visual appeal. (HPBA, No. 11 at p. 53) As noted above,
outdoor products may be outdoor heaters or decorative hearth products,
depending on whether
[[Page 54333]]
they are designed to provide heat proximate to the unit.
AHRI commented that manufacturers of fixed installation infrared
outdoor heating equipment may approve their products to ANSI Z83.19,
ANSI Z83.20, and ANSI Z83.26. AHRI further stated that heaters
certified to these standards should be excluded from the definition of
``outdoor heaters''. They commented that these standards set minimum
radiant energy requirements and that, pursuant to 42 U.S.C. 6295(l),
DOE would be required to demonstrate that a substantial improvement in
energy efficiency is technologically feasible for such products. (AHRI,
No. 16 at pp. 1-2) AHRI commented that the ANSI Z83.19 standard, Gas-
Fired High-Intensity Infrared Heaters, is limited in its application to
indoor non-residential and outdoor use and sets a minimum requirement
for the radiant coefficient, which must be measured. (Id.) AHRI also
stated that a fixed installation product that has been tested and
certified to meet ANSI Z83.19 may in some instances choose to include
additional certification to ANSI Z83.26, but that ANSI Z83.26 is not
applicable to fixed installation heaters. (Id.) AHRI stated that the
majority of heaters approved to ANSI Z83.19 are for industrial and
commercial indoor use only although it may include coverage for outdoor
use. AHRI commented that fixed installation outdoor heaters should be
excluded from the proposed coverage determination because they are
primarily certified to ANSI Z83.19 and ANSI Z83.20, which have
provisions for minimum radiant energy measurement. (Id.) Moreover, AHRI
commented that any heater primarily certified to ANSI Z83.19 and Z83.20
with additional certification to Z83.26 should be excluded from the
scope of this rulemaking. (Id.)
AHRI commented that DOE should use industry consensus definitions
for these products from appropriate industry standards to avoid
products falling in and out of multiple classifications. (Id.)
Additionally, AHRI commented that the definition of outdoor heaters
should specify that their primary purpose is providing proximate heat
and that such units are not an otherwise covered product. AHRI stated
that without this specification, DOE may risk including otherwise
unrelated covered products into the scope of its determination. (Id.)
The definition of ``outdoor heater'' proposed in the February 2022
NOPD and adopted in this final determination specifies that these
products are ``designed to provide heat proximate to the unit.'' DOE
notes that pursuant to 42 U.S.C. 6295(l), as discussed in section I.A,
DOE is required to determine substantial improvement in energy
efficiency is technologically feasible for any type (or class) of
covered products. This coverage determination defines ``miscellaneous
gas products'' as a covered product, which includes outdoor heaters,
but DOE is not analyzing potential energy conservation standards in
this notice. DOE will consider the technical feasibility, energy
savings, and economic justification of potential energy conservation
standards in a separate standards rulemaking. Furthermore, the
requirement in EPCA that substantial energy efficiency improvement is
technologically feasible is determined with respect to MGPs as a whole,
including all products that would meet the definitions of outdoor
heaters and decorative hearth products.
DOE acknowledges that the ANSI Z83.19 \6\ and ANSI Z83.20 \7\
standards cover heaters ``intended for installation in and heating
outdoor spaces or nonresidential indoor spaces''. However, as discussed
in section II.A.3, the definition of ``consumer product'' as defined in
42 U.S.C. 6291(1) does not exclude coverage based on use in commercial
applications as long as a product is, ``to any significant extent,
distributed in commerce for personal use or consumption by
individuals''. Therefore, products that are distributed to a
significant extent for residential use are appropriately classified as
consumer products under EPCA. Additionally, 42 U.S.C. 6311(2)(A)(iii)
specifies that the term ``industrial equipment'' excludes a product
which is a ``covered product'' as defined in section 6291(a)(2)''.
Thus, outdoor heaters meeting the definition established under this
rule will not be subject to both the consumer product and industrial
equipment provisions of EPCA. Additionally, 42 U.S.C 6295(l) specifies
the criteria that DOE must satisfy in order to set standards for
consumer products that the Secretary classifies as covered products,
and whether or not such products are subject to industry standards or
efficiency metrics is not a listed criterion.
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\6\ ANSI Z83.19-2009/CSA 2.35-2009. ``American National
Standard/CSA Standard For Gas-Fired High-Intensity Infrared
Heaters''. See webstore.ansi.org/Standards/CSA/ansiz83192009csa35?gclid=Cj0KCQjwtvqVBhCVARIsAFUxcRsxqkjws01RWgDy3QhYg6_OOB3ZZp4c7i-MhH2TrVyV5ohRDdi2rf0aAjjBEALw_wcB.
\7\ ANSI Z83.19-2016/CSA 2.34-2016. ``Gas-fired tubular and low-
intensity infrared heaters''. See webstore.ansi.org/Standards/CSA/ansiz83202016csa34?gclid=Cj0KCQjwtvqVBhCVARIsAFUxcRsB_rkfG6jesgrBeObZDnMIe_wpjP2xq8Z9uvOl0tVHg2ul6cr7JswaAqEXEALw_wcB.
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2. Decorative Hearth Products
In response to the definition for ``decorative hearth product''
initially proposed in the February 2022 NOPD (see section II.A of this
document), Moroz commented that ``decorative hearth products'' is too
broad of a term and that the definitions found in the Canadian
Regulation for Gas Fireplaces \8\ are more specific and appropriate,
and that DOE should align with the Canadian regulations where
applicable. (Moroz, No. 7 at p. 1) OGC commented that ``decorative
hearth products'' is too broad of a term to use for both indoor and
outdoor decorative products that must comply with very different
industry standards. OGC also commented that the primary function of
outdoor decorative hearth products is the aesthetic qualities of their
flame, and not the production of heat. OGC also commented that
``outdoor hearth products,'' as a category of products, was not defined
in the scope of coverage in the February 2022 NOPD. (OGC, No. 8 at pp.
1-2) HHT commented that the primary function of the majority of hearth
products is to have aesthetically appealing flames, as opposed to
heating. (HHT, No. 9 at p. 2) Similarly, HPBA stated that fireplaces
and similar products inherently produce heat and are designed ``to be
suitable for utilitarian use,'' but they nevertheless state that these
products cannot be reasonably regulated as utilitarian heating
products. HPBA commented that it is an invalid assumption that products
that produce heat are ``heaters'' and would be improved by a higher
heating efficiency. HPBA also stated that gas fireplaces or similar
products are not ``purely decorative'' because it is incorrect to
assume that these products are not intended to provide heat. (HPBA, No.
11 at pp. 46-47)
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\8\ Natural Resources Canada (NRCan) defines a ``gas fireplace''
as a decorative gas fireplace or a heating gas fireplace. Further, a
``decorative gas fireplace means a vented fireplace that is fuelled
by natural gas or propane, is marked for decorative use only and is
not equipped with a thermostat or intended for use as a heater'' and
a ``heating gas fireplace means a vented fireplace that is fuelled
by natural gas or propane and is not a decorative gas fireplace.''
See www.nrcan.gc.ca/energy-efficiency/energy-efficiency-regulations/guide-canadas-energy-efficiency-regulations/gas-fireplaces/6865.
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As noted in the February 2022 NOPD, a variety of products, such as
gas log sets, gas fire pits, gas stoves, and gas fireplace inserts
(among others) could be considered as decorative hearth products if
they meet all the definitional criteria. 87 FR 6786, 6788. DOE further
[[Page 54334]]
notes that the decorative hearth products, as defined, can be marketed
for use both indoors and outdoors. However, DOE may consider the
relevant differences in indoor and outdoor products in any future
analysis of potential test procedures and energy conservation standards
for these products.
In response to comments stating that the function of hearth
products can include aesthetics as well as heating, DOE notes that
under its definition, decorative hearth products are not designed to
provide heating to the space in which they are installed (indoor units)
or the space proximate the heater (outdoor units). Although decorative
hearths may give off some heat as a byproduct of the flame, the
aesthetic appeal is what the product is designed to be used for, rather
than the heating function.
HPBA commented that vented gas log sets are set apart from vented
gas fireplaces by their unmatched realism and design for installation
directly into the hearth of existing wood-burning fireplaces. HPBA
stated that manufacturers work to minimize the visibility of hardware
components to maximize realism in these products. HPBA added that
electronic ignition systems require significant additional hardware,
some of which is heat-sensitive, and compromise the visual appeal of
the product. (HPBA, No. 11 at p. 40) HPBA stated that while gas log
sets are the most ``decorative'' of all indoor products and may have
little net heating utility in a normally heated home, they provide
emergency heating utility when central heating systems are out. HPBA
commented that continuous pilot lights, unlike electric ignition, are
able to operate in an electrical outage. Further, HPBA stated that
battery backup systems require much more vigilance with respect to
battery replacement and that they require heat-sensitive hardware which
may make them less suitable for emergency situations. (Id. at p. 41)
HPBA commented that during weather disasters, batteries are often in
short supply and a gas log set with a continuous pilot light could be
useful. HPBA commented that a continuous pilot ban for vented gas log
sets would impose regulatory burdens on products for which there are no
regulatory benefits. (Id. at p. 42) HPBA commented that vented gas log
sets certified to the ANSI Z21.84 standard operate by direct main
burner ignition, by definition, cannot have continuous pilot lights.
HPBA stated that these products should not be subject to regulation
because they do not have continuous pilot lights. (Id.)
HPBA also commented that the volume of the flame is important for
the fireplace installation to ``look right'' and that this feature is
proportional to British thermal units (``Btu'') input. Therefore, HPBA
states, important visual considerations effectively define a range of
Btu inputs for a given installation. HPBA commented that heat output
should not classify whether a product is a ``heater'' or ``purely
decorative'' because flame art can have high heat outputs but should
not be confused with utilitarian heating appliances. (HPBA, No. 11 at
p. 51)
DOE notes that the definition for decorative hearth product does
not prescribe a limit on Btu input for fireplaces to distinguish
products that are a ``heater'' from those that are ``purely
decorative.'' When classifying products, the intended design of the
product is the criteria used for categorization, allowing fireplaces
with high Btu input rates to continue to be classified as a decorative
hearth product if all other definitional elements are met.
In the February 2022 NOPD, DOE tentatively determined that the
presence of a thermostat indicates that a product is designed to
provide heat rather than being purely decorative. Thus, the proposed
definition of decorative hearth products excluded those products
equipped with a thermostat. This determination was consistent with the
relevant ANSI standard for decorative gas fireplaces (i.e., ANSI
Z21.50, ``Vented Decorative Gas Appliances''), which excludes products
that are equipped with a thermostat. DOE requested comment on whether
the presence of a thermostat would indicate that a hearth product is
intended to provide heat to the space in which it is installed rather
than being purely decorative. 87 FR 6786, 6790.
In response to the February 2022 NOPD, Moroz commented that it is
inappropriate to assume that the presence of a thermostat always
indicates that a hearth product is intended to provide heat to the
space in which it is installed. Moroz commented that thermostats can
provide automatic control of heat balance within the home, and in some
cases act as a safety device. Moroz stated that while not currently
applicable in the National Fire Protection Association (NFPA) 54,
[``National Fuel Gas Code''], which the commenter suggests is the
American installation code for gas appliances, CSA B149[.1] [``Natural
Gas and Propane Installation Code''], which the commenter suggests is
the Canadian installation code for gas appliances, requires that a
thermostat be installed on a gas fireplace when used in a bedroom in
order to intervene when a user is not conscious of the appliance's
operation. (Moroz, No. 7 at p. 1)
Similarly, HHT commented that thermostat allowance and usage is
determined by the standard a unit is certified to. HHT added that
thermostats are a device for comfort control and does not mean that
those products are meant for use as a primary heating source. (HHT, No.
9 at p. 1) OGC also commented that the use of a thermostat on a product
is covered by the industry standard that the product is listed to.
(OGC, No. 8 at p. 1) NPGA commented that a thermostat feature may be
provided by manufacturers to assist consumers in measuring the
intensity of the product but without the intention for consumers to
utilize the product as a direct heating or space heating appliance.
NPGA recommended that DOE consider defining decorative heath products
by the purpose(s) and feature(s) present in the product instead of by
the absence of a feature, or by disqualifying products according to the
presence of a feature. (NPGA, No. 14 at p. 3)
HPBA commented that thermostats on fireplaces and similar products
can be used to turn a product on and off in response to heating demands
or simply to prevent unintended overheating from non-utilitarian use.
HPBA added that thermostats are not permitted on products certified to
the ANSI Z21.50 standard but the presence of a thermostat does not
indicate that such products are ``heaters'' or that they would be
improved by a higher heating efficiency. (HPBA, No. 11 at p. 47)
DOE appreciates this feedback regarding the presence of a
thermostat as an indicator that a hearth product is intended to provide
heat to the surrounding space. DOE notes that the ANSI Z21.50 for
vented gas decorative appliances specifies that the appliances are not
for use with a thermostat. Additionally, in its energy efficiency
regulations, NRCan defines ``decorative gas fireplace'' as a vented
fireplace that is fueled by natural gas or propane, is marked for
decorative use only and is not equipped with a thermostat or intended
for use as a heater.\9\ In an effort to align with industry standards
and Canadian regulations, DOE concludes that it is appropriate to use
the absence of a thermostat as a criterion for decorative hearth
products. However, to fully align with ANSI Z21.50, DOE is
[[Page 54335]]
adopting a slight modification to criteria (3) in the definition of
``decorative hearth products'' to read ``is not for use with a
thermostat.'' \10\ DOE reasons that this slight modification, while not
changing the intent of the definition proposed in the February 2022
NOPD, will fully align with the language of the industry standard and
further clarify the meaning of the definition to exclude from
decorative hearth products those products that are used with a
thermostat.
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\9\ See: www.nrcan.gc.ca/energy-efficiency/energy-efficiency-regulations/guide-canadas-energy-efficiency-regulations/gas-fireplaces/6865. (Last accessed July 1, 2022.)
\10\ The language of criteria (3) proposed in the February 7,
2022 NOPD was ``is not designed to be operated with a thermostat''.
87 FR 6786, 6790.
---------------------------------------------------------------------------
HPBA commented that outdoor gas log sets differ from vented gas log
sets because they include ``match-lit'' products (which are not used
indoors due to safety concerns), they are operable under the variable
conditions encountered outdoors, and they do not necessarily need to be
installed in existing fireplaces with functioning flue systems. (HPBA,
No. 11 at pp. 43-44) DOE appreciates this feedback regarding vented gas
log sets and the distinction from outdoor gas log sets. However, as
discussed previously, these products are covered as decorative hearth
products if they meet the criteria outlined in the definition. DOE may
consider the differences in these products in any future analysis of
potential test procedures and/or energy conservation standards for
MGPs.
3. Miscellaneous Gas Products Scope
In response to the February 2022 NOPD, HHT stated that the scope of
coverage for MGPs is too broad and combines products that are used for
aesthetic or decorative purposes with products used for heating. (HHT,
No. 9 at p. 2)
Similarly, Moroz commented that ``miscellaneous gas products'' is
too vague of a title and should not include decorative hearth products,
outdoor gas fireplaces, and outdoor heaters all within the same
classification, but rather coverage of products should be more
specific. (Moroz, No. 7 at pp. 2-3) OGC similarly commented that
``miscellaneous gas products'' is too broad and mixes products that are
primarily aesthetic and provide some comfort and illumination with
products whose only utility is to provide heat. OGC suggested that DOE
is attempting to cover any gas burning product with a visible flame
regardless of its intended purpose. (OGC, No. 8 at p. 2)
HPBA stated that neither ``outdoor heaters'' nor ``decorative
hearth products'' are identifiable products; rather, HPBA stated they
are a mishmash of products with little resemblance to one another. HPBA
suggested that Congress did not intend for DOE to classify new products
in this amorphous manner. (HPBA, No. 11 at pp. 22-23) Additionally,
HPBA stated that DOE should abandon its definition-based approach to
coverage determinations and instead use clear and precise details when
describing a product. (HPBA, No. 11 at pp. 17-18) HPBA suggested that a
descriptor similar to ``vented gas products certified to the ANSI
Z21.88 standard'' would provide appropriate clarity and precision. (Id.
at pp. 17-18) HPBA also stated that DOE cannot avoid the need for a
coverage determination by ``interpreting'' a category of currently
regulated products to include previously unregulated products, nor can
it justify coverage for one product and assert coverage over another.
(Id. at pp. 15-16) HPBA also stated that issuing a coverage
determination requires product-specific consideration of issues to
avoid products not reasonably susceptible to EPCA regulation from being
swept into coverage along with other products and the gas usage of
different products could be combined to meet EPCA's requirements at 42
U.S.C. 6262(b)(1)(B). (Id. at p. 18)
NPGA expressed agreement with the comment submitted by HPBA that a
more specific definition of the products potentially subject to the
rulemaking and of the efficiency objectives would benefit the current
rulemaking. (NPGA, No. 6 at pp. 1-2) NPGA discouraged DOE from
including decorative hearth products and outdoor heaters in the same
category of MGPs because their primary function and features differ,
even though there may be some overlap in their function. NPGA expressed
concern for such wide encompassing definitions of MGPs because it may
make some products immediately unable to meet a potential standard
based solely on design limitations. (Id. at p. 2) NPGA commented that
the DOE's rationale is difficult to understand and identify the value
to be achieved by combining product types with different functionality
and design. NPGA further added that, while the notice acknowledges that
outdoor heaters and decorative products are different, an explanation
for combining them is not offered. (Id. at p. 2) NPGA requested that
the DOE separate decorative hearth products and outdoor heaters, and
provide a narrower definition of the product types such as the
differences between an outdoor fire table and an outdoor heater which
may have different operating capacities and operating hours. (Id. at p.
4) NGPA suggested that DOE should remove outdoor heaters from the
definition of MGPs. (Id. at p. 2)
AHRI opposed the inclusion of decorative hearths and outdoor
heaters in the same rulemaking. (AHRI, No. 16 at p. 3) AHRI commented
that if DOE includes these products under the scope of coverage, it
should perform separate rulemakings for decorative products covered by
ANSI Z21.50, Z21.60, Z21.84, and Z21.97, and for outdoor heaters
covered by ANSI Z83.26 to provide better clarity on regulations and
simplify test procedures and performance criteria. (Id. at p. 5) AHRI
added that outdoor heaters and decorative hearths have fundamentally
different utility under the proposed definitions for which, they
stated, one must provide heating and the other cannot provide heating,
as well as differences in terms of market distribution and aggregate
national energy use. (Id. at pp. 2-3)
The CA IOUs recommended that DOE should carefully develop
complementary definitions for ``decorative hearth products'' and
``vented hearth heaters'' to ensure appropriate coverage of products
currently on the market. (CA IOUs, No.12 at p. 2) The CA IOUs commented
that the shared appearance and performance characteristics of the
various MGPs is highlighted by industry testimony (specifically, a
comment submitted by HPBA) during the California Energy Commission's
Title 20 rulemaking process that indicated that performance standards
for vented hearth heaters could result in the reclassification of a
``vast majority'' of heating products as decorative hearth products.
The CA IOUs suggested that the ability to recertify products under
different test procedures reinforces the need for complementary product
definitions that provide appropriate coverage for all hearth products.
(Id.)
In addition, AHRI stated that MGPs would combine multiple product
types across both residential and commercial applications and that it
is unclear if the coverage of outdoor heaters is aimed at commercial or
residential products. AHRI stated that it is unclear why ``commercial
heating equipment'' would be included in a standard for residential
decorative hearths. (AHRI, No. 16 at pp. 2-3) They also stated, it
appears as though the only motivation to group decorative hearths and
outdoor heaters together is because separately, outdoor heaters would
not meet the threshold for regulation. Id. In addition, AHRI stated
that MGPs would combine
[[Page 54336]]
multiple product types across both residential and commercial
applications and that it is unclear if the coverage of outdoor heaters
is aimed at commercial or residential products. HPBA similarly
commented that while they are not familiar with non-portable infrared
patio heaters, the coverage of these products as consumer products is
not justified because many of these products are overwhelmingly used by
commercial purchasers. HPBA stated that it appears that these products
are rarely purchased or used by household consumers. (HPBA, No. 11 at
pp. 48-49)
DOE finds that MGPs are similar enough in function and operation
that it is appropriate to group them together. Decorative hearth
products are gas-fired products that meet the criteria discussed in
section II.A of this determination. The definition of decorative hearth
products groups together all products that perform the same basic
function--simulating a solid-fuel fireplace and/or presenting an
aesthetic flame pattern while not being designed to heat the
surrounding space--regardless of whether they are described in the
marketplace as being a ``gas fireplace insert'', ``gas log set'', or
some other term. While products such as gas logs, gas fireplace
inserts, gas stoves, or other decorative hearth products may have
distinct operational or design characteristics, DOE finds that the
products are similar enough in function and operation that it is
appropriate to group them all under a single definition of decorative
hearth products for the purposes of this final determination because
they all serve the same purpose of simulating a solid-fuel fireplace
and/or presenting and aesthetic flame pattern while not being designed
to heat the surrounding space. As noted previously, decorative hearth
products can be designed for indoor or outdoor use (i.e., these
products include indoor decorative hearth products and outdoor
decorative hearth products).
As noted by commenters, all hearth products, including those that
are decorative and are not designed to provide a significant amount of
heat to the surrounding space, produce some amount of heat even if it
is not their primary function. Grouping indoor decorative hearths and
outdoor decorative hearths is appropriate because, as noted, they have
similar forms and functions. Outdoor hearths and outdoor heaters are
also similar in that they are gas-fired products that are used outdoors
and may provide aesthetic value to consumers (in particular, outdoor
hearths and outdoor heaters with visible flames may be considered
substitute products for many consumers), and therefore grouping these
products is also appropriate. Outdoor heaters without flames are very
similar to those with flames. DOE's analysis of MGPs as a covered
products assessed outdoor heaters, which it defines as products that
are gas-fired appliances designed for use in outdoor spaces only, and
which are designed to provide heat proximate to the unit. Some outdoor
heaters meeting DOE's definition have visible flames and some do not.
Furthermore, DOE disagrees with the assertion that its motivation
in grouping these products was related to annual energy use thresholds.
As discussed above, DOE believes these products are appropriately
grouped based on their function and operation. In the February 2022
NOPD, DOE estimated that both outdoor heaters and decorative hearth
products individually meet the energy use threshold under 42 U.S.C.
6292(b)(1)(B). 87 FR 6792. Aggregate annual energy use was not a factor
in determining the scope of MGPs. Should DOE proceed with a rulemaking
to establish energy conservation standards, DOE would determine if MGPs
satisfy the energy use threshold provisions at 42 U.S.C. 6295(l)(1)
during the course of that rulemaking.
DOE did not include ANSI safety certifications into its definitions
of miscellaneous gas products, decorative hearth products, or outdoor
heaters because DOE understands that many hearth products could be
certified to various or multiple standards, and defining product
classifications based on the safety standard could allow products to
change classification if their certification standard were changed.
Additionally, it could be possible for hearth products to not indicate
the ANSI standard to which it is certified.
In response to the suggestion that many outdoor heaters would more
appropriately be classified as commercial products, DOE notes that EPCA
defines ``consumer product,'' in part, as an article that ``to any
significant extent, is distributed in commerce for personal use or
consumption by individuals.'' (42 U.S.C. 6291(1)). Standards
established for MGPs as a consumer product under EPCA would, therefore
apply to any MGP distributed to any significant extent as a consumer
product for residential use. Although many outdoor heaters (and other
types of MGPs) can be used in commercial settings, they are
appropriately classified as consumer products because many of these
products are also distributed in commerce for residential use.
4. Propane Products
In response to the February 2022 NOPD, HPBA commented that although
the coverage of any MGPs is not warranted; coverage for propane-fueled
products would be even harder to justify for many of these products.
(HPBA, No. 11 at p. 51) HPBA added that many prefabricated outdoor
fireplaces use propane as fuel, and consumers are directed to close the
valves on the propane cylinders when the product is not in use and the
potential for unnecessary pilot light use would be limited by the
volume of the cylinder. (Id. at pp. 45, 53)
OGC commented that propane-fueled decorative hearth products and
outdoor heaters should not be within the scope of coverage because the
relatively high cost of propane and the user understanding that
products operated on bottled propane are operated on a limited supply
of fuel already encourages users to practice energy conservation and
monitor their usage. (OGC, No. 8 at p. 2) AHRI commented that for
portable or free-standing propane heaters, it would be unlikely that a
standing pilot would be left on as it would drain the propane tank when
the heater was not in use. (AHRI, No. 16, p. 5) Similarly, HHT and NPGA
commented that propane fuel usage is already regulated by the size of
the container it is sold in or used out of. (HHT, No. 9 at p. 2; NPGA,
No. 14 at p. 4) Therefore, NPGA concluded that the energy use of
propane-fueled decorative hearth products or outdoor heaters is
determined by the consumer rather than an efficiency standard. (NPGA,
No. 14 at p. 4)
Conversely, Moroz commented that the inclusion of propane-fueled
decorative hearth products and outdoor heaters should be done only to
harmonize with NRCan regulations for hearth appliances. (Moroz, No. 7
at p. 2) AGH commented that they support the inclusion of propane
products within the scope of the proposed coverage determination of
MGPs. The commenter stated that stoves and fireplaces that use propane
are often nearly identical to ones that use natural gas and are very
popular in areas not served by gas pipelines. AGH stated that companies
that produce natural gas appliances also produce propane appliances and
the regulation of one without the other would create a confusing and
artificial distinction. AGH added that the cost of propane is typically
higher than natural gas; therefore, consumers could benefit from
transparent and minimum efficiency ratings. (AGH, No. 10 at p. 2) The
Joint Commenters also expressed
[[Page 54337]]
their support for the inclusion of propane products in the scope of
proposed coverage determination for MGPs. (Joint Commenters, No. 13 at
p. 1) The Joint Commenters referenced a 2017 Lawrence Berkley National
Laboratory Hearth Study that showed that 59 percent of hearth products
use natural gas and 17 percent use propane and suggested that they
expect the proportion of decorative hearth products that use propane to
be similar and that the inclusion of propane products may represent
significant energy savings. The Joint Commenters also noted their
market review findings that one large retailer listed 151 models of
propane-fueled units and 23 models of natural gas-fueled outdoor
heaters while another large retailer's website listed 352 models of
propane-fueled units and 56 models of natural-gas fired outdoor
heaters. (Id. at pp. 1-2)
DOE defines the term ``gas'' to mean either natural gas or propane
in 10 CFR 430.2. Therefore, based on the existing definition of
``gas,'' MGPs would include propane-fueled outdoor heaters and
decorative hearth products. However, should test procedures and energy
conservation standards for MGPs be considered in the future, DOE may
consider whether propane-fueled products warrant different treatment
under test procedures and energy conservation standards than natural
gas-fueled MGPs.
5. Unvented Hearth Products
OGC commented that unvented indoor products must be certified to
ANSI Z21.11.1 and that whether the product is used primarily as heat or
for its decorative qualities is determined by the user. (OGC, No. 8 at
p. 3) Moroz commented that because the heat from combustion in an
unvented gas fireplace is distributed into the surrounding living
space, it is appropriate for them to be classified as heaters. (Moroz,
No. 7 at p. 2) HHT stated that they are not aware of any unvented
hearth product that is solely decorative and that the ability of a
product to provide sufficient heat for a space is dependent on the
space in which it is installed. HHT stated that it is not aware of any
characteristics that differentiate purely decorative unvented indoor
hearth products from unvented heaters. (HHT, No. 9 at p. 2) HPBA stated
that heating output does not provide a distinction between different
categories of vent-free fireplaces or log sets. (HPBA, No. 11 at p. 51)
HPBA stated that vent-free gas fireplaces and log sets, which have an
inherently high heating efficiency because they release all of their
heat to the space, may be chosen because of ease of installation or
because they may be the only practical option. (Id. at pp. 51-52) DOE
is not aware of any purely decorative unvented hearth products and
agrees that unvented indoor products are not decorative hearth products
as defined in this determination. Hearth heaters, including unvented
hearth heaters, are separately regulated products and DOE is in the
process of considering standards for these products in a separate
rulemaking (see docket EERE-2022-BT-STD-0018).
6. ANSI Standard Certifications
In response to the February 2022 NOPD, HHT commented that the
following industry standards should be reviewed for the coverage
determination for decorative hearth products and outdoor heaters: ANSI
Z21.50, Z21.84, Z21.11, Z83.26, Z21.60, Z21.97, Z83.19. (HHT, No. 9 at
p. 1) OGC commented that the industry standards covered in the February
2022 NOPD are adequate to cover the different product types identified.
(OGC, No. 8 at p. 1)
DOE reviewed the scope of ANSI Z21.50, ANSI Z21.60, ANSI Z21.84,
ANSI Z21.97, and ANSI Z83.26 to inform the proposed scope of coverage
of MGPs in the February 2022 NOPD. 87 FR 6786, 6788-6789. DOE has also
since identified products certified to ANSI Z21.11 and ANSI Z83.19 and
reviewed the scope of these standards as well. As appropriate, DOE used
provisions from these ANSI standards to inform its understanding of
appropriate product categorizations, but, as discussed in section
II.A.3, DOE did not include ANSI safety certifications into its
definitions of miscellaneous gas products, decorative hearth products,
or outdoor heaters because this could lead to inconsistent
classifications.
B. Other Comments Received
1. Indoor Heating Products
HPBA asserted that no gas fireplace products qualify as DHE. The
commenter added that fireplace products are not included in any of the
16 DHE product categories, nor do they resemble products that are DHE.
Further, HPBA stated that EPCA does not give DOE authority to create
additional categories of DHE. (HPBA, No. 11 at pp. 19-21)
DOE notes that MGPs are a separate consumer product category from
DHE, and that DHE are not at issue in this coverage determination
rulemaking. Indeed, in its decision for Hearth, Patio & Barbecue
Association v. Department of Energy, et al. 706 F.3d 499 (D.C. Cir.
2013), the United States Court of Appeals for the District of Columbia
Circuit held that the phrase ``vented hearth heater'' did not encompass
decorative fireplaces as that term is traditionally understood. As
discussed in the February 2022 NOPD, DOE believes that classifying
vented hearth heaters as vented home heating equipment would be
consistent with the Court's opinion, in that vented hearth heaters
provide space heating. Therefore, DOE concluded that although there are
not currently energy conservation standards for vented hearth heaters,
these products are appropriately covered as vented home heating
equipment (and DHE). 87 FR 6786, 8688. However, MGPs do not include
vented hearth heaters. Thus, DOE is not creating an additional category
of DHE through this coverage determination, but rather is establishing
a new category of separately covered products consistent with its
authority under EPCA.
HPBA further commented that heating efficiency standards for vented
gas fireplaces would limit the range of available products and leave
many consumers without vented gas fireplaces appropriate for their
needs but would not make such products better or more efficient gas
fireplaces. (HPBA, No. 11 at pp. 27-28) HPBA explained that the core
appeal of fireplaces is ``not in their heating utility per se, but in
the unique combination of features that make a fireplace a fireplace.''
(Id.)
DOE notes that consumer utility impacts of standards for vented gas
fireplaces will be considered in any future energy conservation
standards rulemaking, including the aesthetic appeal of fireplace
features.
HPBA commented that vented gas fireplaces do not produce
particulate emissions that are often characteristic of many older solid
fuel fireplaces which, they stated, makes them more desirable from an
air quality standpoint, particularly in the homes of individuals with
respiratory problems such as asthma. (HPBA, No. 11 at p. 29) HPBA
stated that, while vented gas fireplaces can have significant heating
utility, few consumers regularly use their fireplace heaters for
utilitarian heating purposes, and very few do so exclusively. The
commenter added that better space heating options exist that are both
less costly and better tailored for the purposes of strictly
utilitarian heating use. (Id. at pp. 29-30)
HPBA stated that the market for fireplaces with very high
efficiency is small because there is little or no demand for fireplaces
that generate too much heat. HPBA stated that one of their members
found it possible to make
[[Page 54338]]
fireplaces that utilize condensing technology to reach high heating
efficiency but that the market was insufficient to sustain production
of condensing gas fireplaces. (HPBA, No. 11 at p. 30)
In response to DOE's request for comments on outdoor hearth
products designed to provide a large amount of heat, HPBA commented
that a fireplace or similar product does not exist that is designed to
provide a large amount of heat as its primary function. HPBA stated
that the primary function of a fireplace or similar product is to be a
fireplace or similar product. HPBA stated that although it is often
part of the appeal that such products produce heat, their purpose is to
be enjoyed. HPBA further added that the enjoyment is undermined if too
much heat is produced. HPBA also commented that the heat output of
fireplaces and similar products does not provide reasonable basis for
characterization of such products as ``heaters'' for purposes of
efficiency regulation. (HPBA, No. 11 at p. 49).
DOE notes that the definitions for MGPs cover products, in part,
depending on whether or not it is designed to provide heating to the
space in which it is installed. Regardless of the utilization of the
product by the end consumer, the designed intention of the product by
the manufacturer can be classified as to whether it is intended to
provide heating. It is on this basis that DOE is not excluding vented
gas fireplaces from the definition of decorative hearth products, as
DOE's market research found that vented gas fireplace products that are
not designed to provide space heating are available on the market.
AGH commented that efficiencies of gas stoves are often unavailable
and confusing and that the database maintained by the Canadian
government is the only reliable source for gas stove efficiencies.
(AGH, No. 10 at p. 1) AGH stated that their interactions with retailers
and manufacturers yielded contradictory and inaccurate information. AGH
concluded that consumers should be cautious of efficiency claims from
manufacturers and retailers and suggested that the Canadian database is
more reliable. AGH commented that consumers who want to save on heating
bills often use their gas stove or fireplace to heat the core of the
house instead of the furnace to heat the entire house. AGH stated that
gas fireplaces and stoves are often used to provide heat to homes as
either a primary or secondary heat source; additionally, they stated,
many retailers advertise that gas inserts can easily serve as the
primary source of heat for a home and cited a manufacturer's claim that
gas inserts can use ``50 [percent] to 90 [percent] less gas than gas
logs and up to 75 [percent] less gas than a gas furnace.'' \11\
Additionally, AGH stated that gas furnaces can waste up to 30 percent
of their heat from leaking ducts. AGH concluded from this information
that consumers could save significant amounts of money and gas if gas
fireplaces and stoves are regulated under EPCA. (Id. at pp. 1-2)
---------------------------------------------------------------------------
\11\ AGH cited a blog post by Karen Duke titled ``Is a Gas
Fireplace Worth It?'' See www.victorianfireplaceshop.com/is-a-gas-fireplace-worth-it.
---------------------------------------------------------------------------
DOE conducted market research through which the DOE identified both
gas stove products that are intended to provide space heating and gas
stove products that are not intended to provide space heating.
Therefore, DOE is not excluding all gas stoves from coverage as MGPs.
DOE notes that any indoor gas stove that is designed to heat the space
in which it is installed does not meet the criteria outlined in the
definition of a decorative hearth product and will thereby not be
covered as MGP.
2. Shipments
AGH raised concerns that DOE may have underestimated the annual
shipments of MGPs by relying on data from HPBA. AGH commented that
HPBA's estimates only include appliance shipments by their member
companies. They further suggested that even member companies may choose
not to provide data and that some of the largest gas appliance
manufacturers have dropped their HPBA membership in recent years. (AGH,
No. 10 at p. 2) The Joint Commenters stated their belief that the DOE
may be underestimating the annual shipments of MGPs because although it
was stated in the February 2022 NOPD that the hearth product shipments
were scaled from the technical support document (``TSD'') that
accompanied a notice of proposed rulemaking (NOPR) proposing energy
conservation standards for hearth products published on February 9,
2015 (80 FR 7082) (``the February 2015 NOPR'') \12\ (``the February
2015 NOPR TSD''), they stated that it was unclear what the scaling
factor was intended to represent and that the hearth product shipments
reported by HPBA appear to be significantly higher than those in Table
9.3.1 of the February 2015 NOPR TSD. (Joint Commenters, No. 13 at p. 2)
Further, the Joint Commenters stated that shipments of MGPs may have
increased significantly due to the COVID-19 pandemic, and it is
therefore, believed by the commenters that the number of annual
shipments is underestimated by DOE. (Id.)
---------------------------------------------------------------------------
\12\ On March 31, 2017, DOE withdrew a proposed determination of
coverage for hearth products that was published on December 31, 2013
(78 FR 79638) in the bi-annual publication of the DOE Regulatory
Agenda. (82 FR 40270, 40274 (August 24, 2017)) This withdrawal, in
effect, revoked the February 2015 NOPR.
---------------------------------------------------------------------------
The CA IOUs added that the use of hearth products is continuing to
increase in California and is anticipated to do so through the year
2035. (CA IOUs, No. 12 at p. 1)
DOE notes that it used the shipment data available at the time of
the February 2022 NOPD to develop the estimates of energy consumption.
In the Request for Information on Energy Conservation Standards for
Miscellaneous Gas Products published on June 14, 2022 (``June 2022
RFI''),\13\ DOE requested updated shipment figures for decorative
hearth products and outdoor heaters. 87 FR 35925. In response to the
Joint Commenters, DOE notes that the shipment data for gas appliances
reported by HPBA comprise more products than only decorative hearths,
therefore some of the HPBA shipments are excluded from DOE's estimates
for decorative hearths. HPBA provided DOE with shipments of hearth
products for the February 2015 NOPR, which are available in Chapter 9
of the February 2015 NOPR TSD. These shipments reflect the number of
decorative hearths and hearth heaters shipped by HPBA members from 2005
to 2013. DOE took these shipments and compared them to overall gas
appliance shipments reported by HPBA \14\ during that time and, on
average, decorative hearths and hearth heaters accounted for 68 percent
the HPBA reported total annual hearth industry shipments. DOE applied
this 68 percent to HPBA shipments of gas appliances beyond 2013 \15\ to
develop a stock of hearth heaters and decorative hearths in 2022. To
develop a stock of decorative hearths for the February 2022 NOPD, DOE
assumed that 39 percent of total decorative hearths and hearth heater
shipments were decorative. This is the same percentage that was used to
estimate decorative shipments in the analysis supporting the February
2015 NOPR. DOE understands that the COVID-19 pandemic may have
increased the demand for MGP products including outdoor heaters and DOE
may
[[Page 54339]]
consider future growth of product shipments in a standards analysis.
---------------------------------------------------------------------------
\13\ See: www.regulations.gov/document/EERE-2022-BT-STD-0017-0001.
\14\ U.S Hearth Industry Shipments: 1998-2021. www.hpba.org/Resources/Annual-Historical-Hearth-Shipments.
\15\ U.S Hearth Industry Shipments: 1998-2021. www.hpba.org/Resources/Annual-Historical-Hearth-Shipments.
---------------------------------------------------------------------------
3. Energy Use Analysis
OGC commented that DOE needs to demonstrate that an improvement in
efficiency is feasible to conserve energy resources in order to cover a
product, which OGC stated had not been done in the proposed
determination. (OGC, No. 8 at p. 2) NPGA stated that they were unable
to evaluate the potential benefits, energy savings, or improvements for
consumers because the scope of products potentially subject to the
February 2022 NOPD is overly broad. (NPGA, No. 14 at pp. 2, 3, and 5)
HPBA commented that the ``outdoor heater'' and ``decorative
hearth'' definitions are not clear enough to know which product
operating hours should be compared. HPBA added that the operative hours
of ``decorative hearths'' should not be compared to anything because
the products which are included are too diverse and that the estimate
of operating hours of ``decorative hearths'' would not be
representative of any particular product included. (HPBA, No. 11 at pp.
52-53) Specifically, HPBA commented that fireplaces are architectural
features that add to the appeal and market value of a home whether or
not they are used. HPBA added that a substantial percentage of
fireplaces see little or no active use. (HPBA, No. 11 at pp. 29, 31)
The CA IOUs commented that the performance standards for MGPs can
deliver cost-effective savings for Californians and contribute to a
significant reduction of greenhouse gas emissions nationally. The CA
IOUs commented that MGPs can operate for many years and stated that
DOE's assumption that the lifetime of these products is fifteen years
is supported by analysis and interviews in both California and Canada;
therefore, they stated, DOE should begin regulation of these products
as soon as possible. (CA IOUs, No. 12 at p. 1)
a. Ignition Systems
In response to the February 2022 NOPD, NPGA cautioned the DOE
against defining scope or standards according to the presence of a
standing pilot light. NPGA commented that for propane-powered outdoor
heaters, a push-button or dial control connected to a pilot are
designed for consumer safety and ease of ignition. NPGA added that
unlike indoor products powered by natural gas, propane-powered outdoor
heaters are not designed for pilot lights to remain on indefinitely.
NPGA stated that clarification is needed as to why the DOE would find
the ignition system breakdowns for outdoor heaters or standing pilot
operating hours data for outdoor heaters to be useful information or
impactful upon energy conservation standards. (NPGA, No. 14 at p. 4)
OGC commented that ignition systems and operation for outdoor
products differs from that of indoor products and that DOE's energy
usage calculations for these products are therefore incorrect. OGC
stated that outdoor heaters use either an electronic ignition or a
thermo-electric safety valve. The commenter stated that electronic
ignition systems either ignite the main burner directly or may ignite a
pilot burner that ignites the main burner, but the pilot is
extinguished once the main burner is shut off, and that thermo-electric
systems typically ignite the main burner directly and use heat from the
main burner to activate the thermo-electric safety valve. (OGC, No. 8
at p. 3) HPBA commented that many outdoor gas fireplaces have open
combustion chambers in which continuous pilot lights have a tendency to
blow out. HPBA also commented that many prefabricated outdoor
fireplaces have simple dial and push-button pilot light that is
designed to be turned on and off manually to facilitate safe main
burner ignition and pilot light controls that make it easy for
consumers to avoid unnecessary pilot light use. (HPBA, No. 11 at pp.
45, 53) HPBA further stated that the potential for such continuous
pilot lights to be left burning is unknown but likely to be limited.
(Id. at p. 45) HPBA commented that the pilot lights for these products
are not designed to be left on indefinitely and would likely burn out
if they were left burning for an extended period of time. HPBA stated
that they are not aware of any pilot light operating hours data and
added that this data serves no purpose for products that are not
designed to be left with their pilot lights burning indefinitely. (Id.
at pp. 53-54)
AHRI commented generally that standing pilots are a practical and
beneficial solution for units without an outside power source. (AHRI,
No. 16 at p. 5) Similarly, HPBA commented that, for gas log sets, there
are physical and mechanical challenges that limit the potential for
electronic alternatives and the market for these products would likely
be damaged by a continuous pilot ban. (HPBA, No. 11 at pp. 36-37)
HPBA stated that outdoor gas log sets are designed to be installed
in the hearths of existing wood-burning fireplaces and face similar
challenges as vented gas log sets in transitioning to electronic
ignition, in that electronic ignition would negatively impact
aesthetics and the added hardware would be difficult to conceal or
shield from excessive heat. HPBA added that an increase in cost or
decrease of appeal in outdoor gas log sets could cause consumers to
leave conventional wood-burning fireplaces in operation, thereby
causing adverse environmental impacts. (Id. at p. 43) HPBA also
commented that a ban on continuous pilot lights for these products
could have adverse safety impacts because, for outdoor fire pits that
use continuous pilots, the pilot provides a means to minimize the risk
of delayed main burner ignition involving the sudden ignition of a
significant amount of gas. (Id.)
HPBA commented that when outside temperatures are low, the heat
from a vented gas fireplace must initially overcome a column of cold
air in the vent system. HPBA stated that this can present significant
challenges with longer-vent installations and particularly with more
heat-efficient designs that employ heat exchangers or flue restrictors
to raise thermal efficiency and control excess air. HPBA stated that a
cold-start-up can cause serious operational problems such as start-up
lag, flame lift, burner outage, draft reversal, and delayed main burner
ignition. HPBA added that any of these issues would be immediately
observable by the consumer and can be quite alarming. HPBA stated that
a pilot light warms the flue and establishes proper draw prior to main
burner ignition to address all of the listed issues. HPBA commented
that intermittent pilot ignition (``IPI'') systems with a continuous
pilot ignition (``CPI'') function were created to address these
concerns and that in some installations a continuous pilot flame is
needed to ensure proper product operation. HPBA added that CPI
functions are used to prevent or resolve operational problems. (Id. at
pp. 38-39) HPBA stated that the development of ``on demand'' systems
has made it possible for CPI functions on IPI systems to be converted
into ``on demand'' functions. (Id. at p. 39) HPBA stated that DOE did
not include ``on demand'' pilots which were developed to eliminate
standing pilots in gas fireplace products. HPBA added that these on-
demand ignition systems are currently one of the most common of the
relevant ignition systems. (Id. at pp. 24-25)
HPBA commented that gas fireplace products are different in every
relevant aspect from products such as residential furnaces for which it
was relatively easy to convert the pilot ignition. HPBA cited the
following as major the differences: gas fireplaces are typically
prominently displayed so that the glow of a pilot light is visible when
the lights are out,
[[Page 54340]]
gas fireplaces are generally ``attended appliances'' for which the main
burners are used only through the conscious action of the consumer, gas
fireplaces usually have user-friendly dial and push-button continuous
pilot light controls, continuous pilot lights provide unique utility
for gas fireplace consumers, and they have inherent characteristics
that make the use of IPI technology particularly challenging. (Id. at
p. 35) HPBA stated that frequent user operation of pilot lights is not
necessary and that the elimination of pilot lights would affect
consumer utility. (Id. at p. 36)
HPBA commented that the industry recognized that the elimination of
continuous pilot lights could potentially result in energy savings and
have invested considerable resources to develop alternatives. HPBA
stated that these efforts have resulted in a dramatic trend away from
the use of continuous pilots on vented gas fireplaces. (Id.)
HPBA stated that the use of continuous pilot lights on vented gas
fireplaces is already being phased out; therefore, HPBA commented that
the imposition of regulatory burden to hasten market developments is
unnecessary. (Id. at p. 37) HPBA commented that DOE should consider why
there hasn't already been widespread adoption of IPI technology
(without CPI functionality) in the gas fireplace industry, why IPI
systems with a CPI function and ``on-demand'' ignition systems were
developed by the gas fireplace industry exclusively to provide an
alternative to IPI-only systems for vented gas fireplaces, and why some
retailers have reported that they choose to activate the CPI function
on IPI products they sell. (Id. at p. 37) HPBA stated that it is
difficult to ensure that vented gas fireplaces with IPI-only ignition
systems will not experience potentially significant operational
problems in some installations. HPBA added that the specific technical
issues that may occur are related to the differences between vented gas
fireplaces and the types of products for which IPI systems were
designed. (Id. at pp. 37-38)
HPBA stated that gas fireplaces and log sets are so materially
different from each other that combined data on the proportion of
ignition system types for both products would be wildly inaccurate as
applied to either. (Id. at p. 19)
HPBA stated that they explored an initiative to eliminate
continuous pilot lights on a wide range of outdoor gas products and
determined that it would have little potential to conserve energy and
would have undesirable collateral safety impacts. (Id. at p. 45)
The CA IOUs stated that the California Energy Commission (``CEC'')
determined that, using an assumption of 1,000 Btu/hour for gas burners
and annual standing pilot operating hours of 4,612 hours per product,
decorative hearth products and outdoor gas fireplaces will provide cost
effective energy savings that will exceed the thresholds set by 42
U.S.C. 6292 (b)(1) and 42 U.S.C. 6295(l). The CA IOUs stated that using
the CEC's assumptions, standing pilots used 4,161,569 Btu/year per unit
which is equivalent to 1,219 kWh and exceeds the requirements to set
standards under EPCA. (CA IOUs, No. 12 at p. 2) The CA IOUs stated that
a CEC analysis determined that decorative hearth products with an on-
demand pilot light used 1,747,755 Btu/year while decorative hearths
with intermittent pilot energy used only 188,882 Btu/year. The CA IOUs
also stated that the CEC determined that intermittent pilot light
technologies are readily available. The CA IOUs stated the feasibility
and savings that were demonstrated support that federal regulation of
these products is consistent with the purposes of EPCA. (Id.)
In response to concerns about potential standards that could
eliminate the use of continuous pilot lights or regulate other ignition
systems in the future, DOE notes that the current coverage rulemaking
is only to determine whether coverage of MGPs is necessary or
appropriate to carry out the purposes of EPCA, as discussed in section
I.A. DOE maintains that patio heaters fall under the proposed
definition of outdoor heaters and, by extension, MGPs, regardless of
the type of ignition used in the product. DOE is not proposing
standards for MGPs in this final determination of coverage. Comments
regarding the benefits and obstacles for potential standards for MGPs
will be considered in a separate energy conservation standards
rulemaking.\16\
---------------------------------------------------------------------------
\16\ Docket for Miscellaneous Gas Products Energy Conservation
Standards: www.regulations.gov/docket/EERE-2022-BT-STD-0017.
---------------------------------------------------------------------------
In response to comments on the energy use estimates, DOE notes that
it did not use the same operating characteristics for indoor decorative
hearth pilot operation and outdoor heater pilot operation. DOE
understands that a large percentage of outdoor heaters are propane,
however, there are fixed outdoor heaters on the market. DOE adjusted
the standing pilot hours and the percentage of standing pilots of
decorative hearths to make an estimate of ignition energy use for
outdoor heaters. In DOE's energy consumption estimate, it was assumed
that only around 10 percent of outdoor heaters kept the pilot on when
the main burner was not operating and the standing pilot hours were
reduced to account for the fact that outdoor heaters are likely more
seasonal than decorative hearths. In the February 2022 NOPD, DOE
requested comment on the breakdown of ignition systems and standing
pilot operating hours for outdoor heaters, and received no data. 87 FR
6786, 6792.
In response to the CA IOUs, DOE notes that the energy consumption
analysis in the February 2022 NOPD was developed to determine if
coverage of MGPs was warranted under 42 U.S.C. 6292(b). DOE will
consider the technical feasibility, energy savings, and economic
justification of various technologies in a standards rulemaking.
b. Main Burner Operation
OGC and HHT stated that outdoor conditions vary greatly from season
to season as well as by location and climate. (OGC, No. 8 at p. 3; HHT
No. 9 at p. 3) OGC expressed concerns that DOE assumes outdoor
decorative products are operated regardless of the outdoor ambient
temperature without data to substantiate that assumption. (OGC, No. 8
at p. 3) Moroz stated that they are not aware of any data representing
the operating hours of either outdoor heaters or decorative hearth
appliances. (Moroz, No. 7 at p. 2) OGC added that they are unaware of
available data on outdoor usage or energy consumption and that the
operating characteristics for outdoor heaters, indoor decorative
products, and outdoor decorative products are likely to be different.
(OGC, No. 8 at p. 3)
NPGA stated in response to the February 2022 NOPD, that energy
usage was estimated according to outdated survey information. NPGA also
stated that decorative hearth products and outdoor heaters are
intrinsically produced for different uses by consumers. NPGA commented
that the data and surveys collected in past years were not administered
according to the proposed product definition presented in the current
notice and therefore, urged the DOE to issue an RFI for more data and
present the data and proposed definitions for stakeholders in a new
notice. (NPGA, No. 14 at pp. 2-3) NPGA commented that the DOE should
pursue the most recent and up-to-date data on energy usage and
manufacturing production because this information is crucial to
determining if these products
[[Page 54341]]
use enough energy to meet the threshold for regulation under EPCA. (Id.
at p. 2)
AHRI also stated that they do not view the prescription of decorate
hearth usage data to outdoor heaters to be a valid assumption. AHRI
further added that the consumer survey used to estimate decorative
hearth usage may be questionable because all of the estimates were
derived from a single survey. AHRI noted that the survey (although
published in June of 2017) was conducted in February of 2016, there was
no mechanism for respondents to confirm ownership of the equipment in
question, and it was not confirmed that the respondents ``subjective
answers'' reflected the manufacturers' design for decorative hearth
equipment. (AHRI, No. 16 at pp. 3-4)
The Joint Commenters stated that it is not clear in the February
2022 NOPD whether match-lit units were included in the national energy
use calculation. (The Joint Commenters, No. 13 at p. 2)
HPBA suggested that heating standards would be problematic because
increasing heating efficiency and thus heat output can lead to more
heat output than is desired. HPBA further suggested that even
moderately high heating efficiency standards could substantially reduce
the number of fireplaces appropriate to a given installation.
Additionally, HPBA stated that an increase in heating efficiency cannot
be expected to produce energy savings by reducing the burner operating
hours required to satisfy heating needs. (HPBA, No. 11 at pp. 31-34)
DOE notes that the average operating hours for decorative hearths
from the February 2022 NOPD was based on operating data for both indoor
decorative hearths and outdoor decorative hearths from a 2017 survey by
the Lawrence Berkeley National Laboratory (``2017 hearth survey'').\17\
There was no assumption that outdoor decorative hearths operate the
same regardless of outdoor air temperatures; the national average was
creating by averaging the operating hours for decorative products (both
indoor and outdoor) by region. DOE lacked data on the operation of
outdoor heaters at the time of the February 2022 NOPD. The 2017 Hearth
Survey provided estimates of main burner hours for decorative hearths
and hearth heaters and noted a positive correlation between the main
burner operating hours and utility for heat. DOE used the decorative
hearth burner operating hours for outdoor heaters as those were the
smallest amount of operating hours in the survey and therefore
constitutes a conservative estimate. While DOE understands that the
operating characteristics of decorative hearths and outdoor heaters may
vary, given that large portions of the U.S. have long periods of cooler
temperatures, it is unlikely that outdoor heaters would operate
significantly less than what was assumed in the February 2022 NOPD. As
DOE did not receive any data on the operating hours of decorative
hearths or outdoor heaters, DOE did not change its estimates of
national and household energy consumption.
---------------------------------------------------------------------------
\17\ Siap, David. Willem, Henry. Price, Sarah. Yang, Hung-Chia.
Lekov, Alex. Survey of Hearth Products in U.S. Homes. Energy
Analysis and Environmental Impacts Division, Lawrence Berkeley
National Laboratory. June 2017. eta.lbl.gov/publications/survey-hearth-products-us-homes.
---------------------------------------------------------------------------
DOE also notes that the 2017 Hearth Survey is the most
comprehensive study of hearth products in the United States. While the
respondent's answers were subjective, DOE has confidence in the survey
because the percentage of products identified as decorative or mostly
decorative (38 percent) is consistent with the percentage of total
hearth shipments that were decorative (39 percent) from the February
2015 NOPR.
In response to the Joint Commenters, the main burner energy
consumption of match-lit products was included in the national energy
use calculation.
This coverage determination rulemaking is only to determine whether
coverage of MGPs is necessary or appropriate to carry out the purposes
of EPCA, as discussed in section I.A. DOE is not proposing standards
for MGPs in this final determination of coverage. DOE may consider the
impacts of standards on consumer utility in a future energy
conservation standards rulemaking.
4. Economic Analysis
The Gas Associations commented that it is important that the DOE
implement the recommendations from the recent National Academies of
Sciences, Engineering, and Medicine (``NASEM'') report \18\ into all of
its appliance rulemakings. In particular, the Gas Associations
recommended, based on the NASEM report, that DOE should pay greater
attention to economic justification for the standards as required by
EPCA and, to conclude that standards are economically justified, DOE
should attempt to find significant failures of private markets or
irrational behavior by consumers in the no-standards case.
Additionally, the Gas Associations recommended that the DOE expand the
Cost Analysis segment of the Engineering Analysis to include ranges of
costs, patterns of consumption, diversity factors, energy peak demand,
and variance regarding environmental factors. The Gas Associations also
recommended that the DOE give greater weight to ex post and market-
based evidence of markups in order to project more accurate effects of
a standard on prices. (Gas Associations, No. 15 at p. 2)
---------------------------------------------------------------------------
\18\ Review of Methods Used by the U.S. Department of Energy in
Setting Appliance and Equipment Standards. NASEM (2021). Available
at: nap.nationalacademies.org/read/25992/chapter/1.
---------------------------------------------------------------------------
The Gas Associations recommended that DOE provide an argument for
the plausibility and magnitude of potential market failure related to
the energy efficiency gap in its analysis. They added that there should
be a presumption that the market actors behave rationally, unless DOE
can provide evidence to the contrary. The Gas Associations also
recommended that DOE should give greater attention to a broader set of
potential market failures on the supply side. They stated that this
should include how standards might reduce the number of competing firms
and how they might impact price discrimination, technological
diffusion, and collusion. (Id.)
In response to the Gas Associations recommendations for the
economic analysis, DOE notes that the current coverage rulemaking is
only to determine whether coverage of MGPs is necessary or appropriate
to carry out the purposes of EPCA. Economic considerations would be
analyzed as part of an energy conservation standard rulemaking.
5. Process-Related Comments
In response to the February 2022 NOPD, the CA IOUs agreed with
DOE's tentative finding that the coverage of MGPs is necessary and
appropriate to carry out the purposes of EPCA. (CA IOUs, No. 12 at p.
1) The Joint Commenters also indicated their support of DOE's
determination that decorative hearths and outdoor heaters qualify as
MGPs covered under EPCA. However, the Joint Commenters encouraged DOE
to not finalize the proposed determination until energy conservation
standards have been finalized, since information that is learned during
the rulemaking process for both test procedures and energy conservation
standards can ultimately inform the coverage determination. (Joint
Commenters, No. 13 at p. 1)
HPBA and APGA requested that DOE further explain its proposal with
specific regard to the identification of the specific product for which
coverage is proposed, and why (and how) DOE
[[Page 54342]]
believes that it would be appropriate to regulate each of those
products. (HPBA, No. 2 at pp. 1-2; APGA, No. 5 at pp. 1-2)
HPBA and AGA requested that DOE hold a public meeting to clarify
its current proposal. (HPBA, No. 2 at p. 1; AGA, No. 4 at p 2) HPBA
requested the opportunity to present specific recommendations
concerning DOE's basic regulatory approach to facilitate a constructive
exchange of information and ideas. (HPBA, No. 2 at pp. 2-3)
Additionally, HPBA included in their comments a resubmission of the
comments they submitted on May 11, 2015, in response to the February
2015 NOPR as evidence to support their claim of inadequate
informational exchange. (Id. at p. 10) HPBA also added that DOE is
behind on statutory deadlines for regulatory actions on numerous
products that it has a mandatory duty to complete and therefore it is
not ``necessary'' or ``appropriate'' for DOE to regulate MGPs. (Id. at
p. 54) AGA commented that the rulemaking history in this proposal and
the unaddressed concerns of stakeholders makes a public meeting
appropriate. AGA added that the meeting should address concerns
including outstanding coverage determinations, whether there is a
justifiable basis for regulating covered products, and how covered
products may be regulated. (AGA, No. 4 at pp. 1-2)
In response, DOE notes that although the scope of the February 2015
NOPR differed from the current coverage determination, many insights
from that rulemaking (for example, information about technology options
that are also relevant to MGPs) informed the current coverage
determination. Additionally, DOE responds that stakeholders were given
the opportunity to provide written comments in response to the proposed
coverage determination, which DOE determines to be a sufficient
opportunity to provide feedback. Moreover, as noted above, this
rulemaking only establishes coverage for MGPs. DOE's authority and
responsibility to determine the coverage of MGPs is distinct from its
authority under EPCA. Prior to the adoption of any energy conservation
standards or test procedures for these products, stakeholders will have
additional opportunities for comment, including a public meeting(s).
The Gas Associations commented that the proposed coverage
determination of MGPs is neither necessary nor appropriate within the
meaning of 42 U.S.C. 6292(b)(1)(A). They added that DOE has not
provided sufficient evidence to demonstrate economic justification or
significant energy savings for an efficiency standard for MGPs. (Gas
Associations, No. 15 at pp 2-3) They stated that the February 2022 NOPD
treated broad categories of different products as though they are a
single product and recommended the withdrawal of the proposed coverage
determination for reconsideration. (Id. at p. 3) OGC commented that the
coverage of ``miscellaneous gas products'' is not necessary or
appropriate to carry out the purposes of EPCA and that it is too broad
to justify coverage under EPCA. (OGC, No. 8 at p. 3) OGC and HHT
further commented that the information and analysis in the February
2022 NOPD are inadequate to support the issuance of a determination for
MGPs. Consequently, OGC recommended that the proposed determination be
withdrawn and treated as an RFI to allow for more collaboration with
industry to properly determine what is considered a covered product.
(OGC, No. 8 at p. 1; HHT, No. 9 at pp. 1, 3)
Similarly, HPBA requested that the DOE withdraw the February 2022
NOPD and discontinue any further regulatory efforts with respect to gas
fireplaces, fireplace inserts, freestanding stoves, gas log sets,
outdoor gas products designed to have visual appeal (fire pits, fire
tables, tiki torches, patio heaters that double as outdoor lighting or
flame art, and pure objects of flame art), and strictly utilitarian
portable patio heaters. HPBA added that coverage for the listed
products is neither ``necessary'' nor ``appropriate'' within the
meaning of 42 U.S.C. 6292(b)(1)(A) and was not proven otherwise by the
February 2022 NOPD. HPBA stated that there is no potential for energy
savings or economic justification that could be provided by efficiency
standards for these products and that these products are unsuitable
targets for efficiency regulation. (HPBA, No. 11 at p. 1) HPBA
commented that the DOE's attempt to establish coverage of MGPs is not
supported by EPCA and stated that the February 2022 NOPD did not
provide a reasonable basis to conclude that MGPs are worth regulating.
(Id. at pp. 13-15) HPBA stated that DOE should follow the direction of
Executive Order 13563 and ensure that it has incorporated information
and perspectives from those who are likely to be affected by the
proposal. (Id. at p. 12) HPBA stated that coverage determinations must
be product-specific and that to establish that coverage is warranted,
DOE must demonstrate that the product is not a ``gnat'' and explain why
regulation of that product is ``necessary'' or ``appropriate'' to carry
out EPCA's purposes. HPBA also stated that there is insufficient data
and information used for the analysis. They added that data collection
should be the first step in the development of a rule. HPBA stated that
the pace of technological and market changes has made it so information
concerning the prevalence of continuous pilot lights becomes quickly
outdated. HPBA commented that while they have not had sufficient
opportunity to review the basis of the DOE's claims, they stated that
the February 2022 NOPD is based on inaccurate information, inadequate
data, and arbitrary assumptions. (Id. at pp. 24-25)
DOE notes that Part A of Title III of EPCA, 42 U.S.C. 6291 et seq.,
authorizes DOE to classify additional types of consumer products as
covered products upon determining that: (1) classifying the product as
a covered product is necessary or appropriate for the purposes of EPCA;
and (2) the average annual per-household energy use by products of such
type is likely to exceed 100 kilowatt-hours per year (kWh/yr). (42
U.S.C. 6292(b)(1)). DOE's evaluation of MGPs under this standard is
discussed in section II.C of this determination.
C. Evaluation of Miscellaneous Gas Products as Covered Products
DOE evaluated whether MGPs, which are comprised of decorative
hearth products and outdoor heaters, are ``consumer products'' under
EPCA. As discussed in section I of this document, a consumer product is
any article (other than an automobile) of a type--(A) which in
operation consumes, or is designed to consume energy; and (B) which, to
any significant extent, is distributed in commerce for personal use or
consumption by individuals; without regard to whether such article of
such type is in fact distributed in commerce for personal use or
consumption by an individual. (42 U.S.C. 6291(a)(1)) MGPs consume
energy during operation and are distributed in commerce for personal
use by individuals. Therefore, DOE has determined that MGPs are
consumer products within the scope of EPCA.
The following sections describe DOE's evaluation of whether MGPs
fulfill the criteria for being added as covered products pursuant to 42
U.S.C. 6292(b)(1). As stated previously, DOE may classify a consumer
product as a covered product if:
(1) Classifying products of such type as covered products is
necessary or appropriate to carry out the purposes of EPCA; and
[[Page 54343]]
(2) The average annual per-household energy use by products of such
type is likely to exceed 100 kWh (or its Btu equivalent) per year.
1. Coverage Necessary or Appropriate To Carry Out the Purposes of EPCA
DOE has determined that coverage of MGPs is necessary or
appropriate to carry out the purposes of EPCA, which include:
To conserve energy supplies through energy conservation programs,
and, where necessary, the regulation of certain energy uses; and
To provide for improved energy efficiency of motor vehicles, major
appliances, and certain other consumer products. (42 U.S.C. 6291(4)-
(5))
DOE estimates that annual shipments of MGPs have averaged
approximately 190,000 units per year from 2016 to 2020.\19\ DOE
estimates that the aggregate national energy use of decorative hearth
products is 0.0135 quadrillion British thermal units (``quads'') (4.0
Terawatt-hours (``TWh'')),\20\ and that the aggregate national energy
use of outdoor heaters is estimated to be 0.0007 quads (0.2 TWh).\21\
DOE estimates that the aggregate national energy use of decorative
hearth products and outdoor heaters, comprising MGPs, is 0.0143 quads
(4.2 TWh). Coverage of MGPs would result in the conservation of energy
supplies through the regulation of energy efficiency. Therefore, DOE
has determined that coverage of MGPs is necessary and appropriate to
carrying out the purposes of EPCA, thereby satisfying the provisions of
42 U.S.C. 6292(b)(1)(A).
---------------------------------------------------------------------------
\19\ This estimate was developed by scaling the average hearth
product shipments from 2010-2013 on page 9-2 of Chapter 9 in the
February 2015 NOPR Technical Support Document to the total HPBA gas
appliance shipments from 2010 to 2013 and applying that average to
the total gas appliance shipments to the 2016 through 2020 shipments
from HPBA (www.hpba.org/Resources/Annual-Historical-Hearth-Shipments). Manufacturer interviews conducted for the February 2015
NOPR analysis were used to develop the market share of decorative
hearths (39%) and outdoor heaters (3%) from total shipments. The
market shares were assumed to remain constant from 2016-2020.
\20\ The aggregate national energy use of decorative hearths is
based on energy use estimates developed in section V.B of this
document, along with historical shipments from HPBA (www.hpba.org/Resources/Annual-Historical-Hearth-Shipments) and the February 2015
NOPR National Impact Analysis, of which 39 percent are assumed to be
decorative hearths, and a 15-year hearth lifetime which was used for
all products in the February 2015 NOPR for hearth products (U.S.
Department of Energy. Technical Support Document: Energy
Conservation Programs for Consumer Products, Energy Conservation
Standards for Hearth Products. Chapter 8: Life-Cycle-Cost Analysis.
January 30, 2015. Available at: www.regulations.gov/document/EERE-2014-BT-STD-0036-0002.).
\21\ The aggregate national energy use of outdoor heaters is
based on energy use estimates developed in section V.B of this
document, along with historical shipments from the February 2015
NOPR National Impact Analysis, which assumed that ratio of patio
heaters shipments to HPBA hearth shipments was 3 percent, and a 15-
year hearth lifetime which was used for all products in the February
2015 NOPR for hearth products (U.S. Department of Energy. Technical
Support Document: Energy Conservation Programs for Consumer
Products, Energy Conservation Standards for Hearth Products. Chapter
8: Life-Cycle-Cost Analysis. January 30, 2015. Available at:
www.regulations.gov/document/EERE-2014-BT-STD-0036-0002.).
---------------------------------------------------------------------------
2. Average Annual Per-Household Energy Use
DOE estimates that decorative hearths account for 93 percent of the
MGP market and that outdoor heaters account for 7 percent. DOE
calculated the weighted average per-household energy use of an MGP to
be 4.1 MMbtu/yr (1,211 kWh/yr).\22\ Therefore, DOE estimates that the
average annual per-household energy use for MGPs is likely to exceed
100 kWh/yr, thereby satisfying the provisions of 42 U.S.C.
6292(b)(1)(B).
---------------------------------------------------------------------------
\22\ For more detail on the energy use calculations, please
refer to the February 2022 NOPD, available at: www.regulations.gov/document/EERE-2021-BT-DET-0034-0001.
---------------------------------------------------------------------------
III. Final Determination
Based on the foregoing discussion, DOE concludes that including
MGPs, as defined in this final determination, as covered products is
necessary and appropriate to carry out the purposes of EPCA, and the
average annual per-household energy use by products of such type is
likely to exceed 100 kWh/yr. Based on the information discussed in
section II of this final determination, DOE is classifying MGPs as a
covered product. This final determination does not establish test
procedures or energy conservation standards for MGPs. DOE will address
test procedures and energy conservation standards through its normal
rulemaking process.
IV. Procedural Issues and Regulatory Review
A. Review Under Executive Orders 12866 and 13563
Executive Order (``E.O.'') 12866, ``Regulatory Planning and
Review,'' as supplemented and reaffirmed by E.O. 13563, ``Improving
Regulation and Regulatory Review,'' 76 FR 3821 (Jan. 21, 2011),
requires agencies, to the extent permitted by law, to (1) propose or
adopt a regulation only upon a reasoned determination that its benefits
justify its costs (recognizing that some benefits and costs are
difficult to quantify); (2) tailor regulations to impose the least
burden on society, consistent with obtaining regulatory objectives,
taking into account, among other things, and to the extent practicable,
the costs of cumulative regulations; (3) select, in choosing among
alternative regulatory approaches, those approaches that maximize net
benefits (including potential economic, environmental, public health
and safety, and other advantages; distributive impacts; and equity);
(4) to the extent feasible, specify performance objectives, rather than
specifying the behavior or manner of compliance that regulated entities
must adopt; and (5) identify and assess available alternatives to
direct regulation, including providing economic incentives to encourage
the desired behavior, such as user fees or marketable permits, or
providing information upon which choices can be made by the public. DOE
emphasizes as well that E.O. 13563 requires agencies to use the best
available techniques to quantify anticipated present and future
benefits and costs as accurately as possible. In its guidance, the
Office of Information and Regulatory Affairs (``OIRA'') in the Office
of Management and Budget (``OMB'') has emphasized that such techniques
may include identifying changing future compliance costs that might
result from technological innovation or anticipated behavioral changes.
For the reasons stated in the preamble, this final regulatory action is
consistent with these principles.
Section 6(a) of E.O. 12866 also requires agencies to submit
``significant regulatory actions'' to OIRA for review. OIRA has
determined that this final regulatory action does not constitute a
``significant regulatory action'' under section 3(f) of E.O. 12866.
Accordingly, this action was not submitted to OIRA for review under
E.O. 12866.
B. Review Under the Regulatory Flexibility Act
The Regulatory Flexibility Act (5 U.S.C. 601 et seq.) requires
preparation of an initial regulatory flexibility analysis (``IRFA'')
and a final regulatory flexibility analysis (``FRFA'') for any rule
that by law must be proposed for public comment, unless the agency
certifies that the rule, if promulgated, will not have a significant
economic impact on a substantial number of small entities. As required
by E.O. 13272, ``Proper Consideration of Small Entities in Agency
Rulemaking,'' 67 FR 53461 (Aug. 16, 2002), DOE published procedures and
policies on February 19, 2003, to ensure that the potential impacts of
its rules on small entities are properly considered during the
rulemaking process. 68 FR 7990. DOE
[[Page 54344]]
has made its procedures and policies available on the Office of the
General Counsel's website (www.energy.gov/gc/office-general-counsel).
DOE reviewed this final determination under the provisions of the
Regulatory Flexibility Act and the policies and procedures published on
February 19, 2003. This final determination does not establish test
procedures or standards for MGPs. On the basis of the foregoing, DOE
certifies that this final determination has no significant economic
impact on a substantial number of small entities.
C. Review Under the Paperwork Reduction Act
This final determination, which concludes that MGPs meet the
criteria for a covered product for which the Secretary may consider
prescribing energy conservation standards pursuant to 42 U.S.C. 6295(o)
and (p), imposes no new information or record-keeping requirements.
Accordingly, the OMB clearance is not required under the Paperwork
Reduction Act. (44 U.S.C. 3501 et seq.)
D. Review Under the National Environmental Policy Act of 1969
Pursuant to the National Environmental Policy Act of 1969
(``NEPA''), DOE has analyzed this final determination in accordance
with NEPA and DOE's NEPA implementing regulations (10 CFR part 1021).
DOE has determined that this final determination qualifies for
categorical exclusion under 10 CFR part 1021, subpart D, appendix A6,
because it is strictly procedural and meets the requirements for
application of a categorial exclusion. 10 CFR 1021.410. Therefore, DOE
has determined that promulgation of this final determination is not a
major Federal action significantly affecting the quality of the human
environment within the meaning of NEPA, and does not require an
Environmental Assessment or an Environmental Impact Statement.
E. Review Under Executive Order 13132
E.O. 13132, ``Federalism,'' 64 FR 43255 (Aug. 10, 1999), imposes
certain requirements on Federal agencies formulating and implementing
policies or regulations that preempt State law or that have federalism
implications. The Executive order requires agencies to examine the
constitutional and statutory authority supporting any action that would
limit the policymaking discretion of the States and to carefully assess
the necessity for such actions. The Executive order also requires
agencies to have an accountable process to ensure meaningful and timely
input by State and local officials in the development of regulatory
policies that have federalism implications. On March 14, 2000, DOE
published a statement of policy describing the intergovernmental
consultation process it will follow in the development of such
regulations. 65 FR 13735. This final determination does not establish
energy conservation standards for MGPs. DOE has examined this final
determination and concludes that it does not preempt State law or have
substantial direct effect on the States, on the relationship between
the Federal Government and the States, or on the distribution of power
and responsibilities among the various levels of government. EPCA
governs and prescribes Federal preemption of State regulations as to
energy conservation for the products that are the subject of this final
rule. Therefore, no further action is required by Executive Order
13132.
F. Review Under Executive Order 12988
With respect to the review of existing regulations and the
promulgation of new regulations, section 3(a) of E.O. 12988, ``Civil
Justice Reform,'' imposes on Federal agencies the general duty to
adhere to the following requirements: (1) eliminate drafting errors and
ambiguity, (2) write regulations to minimize litigation, (3) provide a
clear legal standard for affected conduct rather than a general
standard, and (4) promote simplification and burden reduction. 61 FR
4729 (Feb. 7, 1996). Regarding the review required by section 3(a),
section 3(b) of E.O. 12988 specifically requires that Executive
agencies make every reasonable effort to ensure that the regulation (1)
clearly specifies the preemptive effect, if any, (2) clearly specifies
any effect on existing Federal law or regulation, (3) provides a clear
legal standard for affected conduct while promoting simplification and
burden reduction, (4) specifies the retroactive effect, if any, (5)
adequately defines key terms, and (6) addresses other important issues
affecting clarity and general draftsmanship under any guidelines issued
by the Attorney General. Section 3(c) of E.O. 12988 requires Executive
agencies to review regulations in light of applicable standards in
section 3(a) and section 3(b) to determine whether they are met or it
is unreasonable to meet one or more of them. DOE has completed the
required review and determined that, to the extent permitted by law,
this final determination meets the relevant standards of E.O. 12988.
G. Review Under the Unfunded Mandates Reform Act of 1995
Title II of the Unfunded Mandates Reform Act of 1995 (``UMRA'')
requires each Federal agency to assess the effects of Federal
regulatory actions on State, local, and Tribal governments and the
private sector. Public Law 104-4, sec. 201 (codified at 2 U.S.C. 1531).
For a regulatory action likely to result in a rule that may cause the
expenditure by State, local, and Tribal governments, in the aggregate,
or by the private sector of $100 million or more in any one year
(adjusted annually for inflation), section 202 of UMRA requires a
Federal agency to publish a written statement that estimates the
resulting costs, benefits, and other effects on the national economy.
(2 U.S.C. 1532(a), (b)) The UMRA also requires a Federal agency to
develop an effective process to permit timely input by elected officers
of State, local, and Tribal governments on a ``significant
intergovernmental mandate,'' and requires an agency plan for giving
notice and opportunity for timely input to potentially affected small
governments before establishing any requirements that might
significantly or uniquely affect them. On March 18, 1997, DOE published
a statement of policy on its process for intergovernmental consultation
under UMRA. 62 FR 12820. DOE's policy statement is also available at
www.energy.gov/sites/prod/files/gcprod/documents/umra_97.pdf.
DOE examined this final determination according to UMRA and its
statement of policy and determined that the determination does not
contain a Federal intergovernmental mandate, nor is it expected to
require expenditures of $100 million or more in any one year by State,
local, and Tribal governments, in the aggregate, or by the private
sector. As a result, the analytical requirements of UMRA do not apply.
H. Review Under the Treasury and General Government Appropriations Act,
1999
Section 654 of the Treasury and General Government Appropriations
Act, 1999 (Pub. L. 105-277) requires Federal agencies to issue a Family
Policymaking Assessment for any rule that may affect family well-being.
This final determination would not have any impact on the autonomy or
integrity of the family as an institution. Accordingly, DOE has
concluded that it is not necessary to prepare a Family Policymaking
Assessment.
[[Page 54345]]
I. Review Under Executive Order 12630
Pursuant to E.O. 12630, ``Governmental Actions and Interference
with Constitutionally Protected Property Rights,'' 53 FR 8859 (March
18, 1988), DOE has determined that this final determination would not
result in any takings that might require compensation under the Fifth
Amendment to the U.S. Constitution.
J. Review Under the Treasury and General Government Appropriations Act,
2001
Section 515 of the Treasury and General Government Appropriations
Act, 2001 (44 U.S.C. 3516, note) provides for Federal agencies to
review most disseminations of information to the public under
information quality guidelines established by each agency pursuant to
general guidelines issued by OMB. OMB's guidelines were published at 67
FR 8452 (Feb. 22, 2002), and DOE's guidelines were published at 67 FR
62446 (Oct. 7, 2002). Pursuant to OMB Memorandum M-19-15, Improving
Implementation of the Information Quality Act (April 24, 2019), DOE
published updated guidelines which are available at: www.energy.gov/sites/prod/files/2019/12/f70/DOE%20Final%20Updated%20IQA%20Guidelines%20Dec%202019.pdf. DOE has
reviewed this final determination under the OMB and DOE guidelines and
has concluded that it is consistent with applicable policies in those
guidelines.
K. Review Under Executive Order 13211
E.O. 13211, ``Actions Concerning Regulations That Significantly
Affect Energy Supply, Distribution, or Use,'' 66 FR 28355 (May 22,
2001), requires Federal agencies to prepare and submit to OIRA at OMB,
a Statement of Energy Effects for any significant energy action. A
``significant energy action'' is defined as any action by an agency
that promulgates or is expected to lead to promulgation of a final
rule, and that (1) is a significant regulatory action under Executive
Order 12866, or any successor order; and (2) is likely to have a
significant adverse effect on the supply, distribution, or use of
energy, or (3) is designated by the Administrator of OIRA as a
significant energy action. For any significant energy action, the
agency must give a detailed statement of any adverse effects on energy
supply, distribution, or use should the proposal be implemented, and of
reasonable alternatives to the action and their expected benefits on
energy supply, distribution, and use.
This final determination, which does not amend or establish energy
conservation standards for MGPs, is not a significant regulatory action
under E.O. 12866. Moreover, it would not have a significant adverse
effect on the supply, distribution, or use of energy, nor has it been
designated as such by the Administrator at OIRA. Accordingly, DOE has
not prepared a Statement of Energy Effects.
L. Information Quality
On December 16, 2004, OMB, in consultation with the Office of
Science and Technology Policy (``OSTP''), issued its Final Information
Quality Bulletin for Peer Review (``the Bulletin''). 70 FR 2664 (Jan.
14, 2005). The Bulletin establishes that certain scientific information
shall be peer reviewed by qualified specialists before it is
disseminated by the Federal Government, including influential
scientific information related to agency regulatory actions. The
purpose of the Bulletin is to enhance the quality and credibility of
the Government's scientific information. Under the Bulletin, the energy
conservation standards rulemaking analyses are ``influential scientific
information,'' which the Bulletin defines as ``scientific information
the agency reasonably can determine will have, or does have, a clear
and substantial impact on important public policies or private sector
decisions.'' 70 FR 2664, 2667.
In response to OMB's Bulletin, DOE conducted formal peer reviews of
the energy conservation standards development process and the analyses
that are typically used and prepared a report describing that peer
review.\23\ Generation of this report involved a rigorous, formal, and
documented evaluation using objective criteria and qualified and
independent reviewers to make a judgment as to the technical/
scientific/business merit, the actual or anticipated results, and the
productivity and management effectiveness of programs and/or projects.
Because available data, models, and technological understanding have
changed since 2007, DOE has engaged with the National Academy of
Sciences to review DOE's analytical methodologies to ascertain whether
modifications are needed to improve the Department's analyses. DOE is
in the process of evaluating the resulting report.\24\
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\23\ The 2007 ``Energy Conservation Standards Rulemaking Peer
Review Report'' is available at the following website: energy.gov/eere/buildings/downloads/energy-conservation-standards-rulemaking-peer-review-report-0 (last accessed July 1, 2022).
\24\ The report is available at www.nationalacademies.org/our-work/review-of-methods-for-setting-building-and-equipment-performance-standards.
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M. Congressional Notification
As required by 5 U.S.C. 801, DOE will report to Congress on the
promulgation of this final determination prior to its effective date.
The report will state that it has been determined that the final
determination is not a ``major rule'' as defined by 5 U.S.C. 804(2).
V. Approval of the Office of the Secretary
The Secretary of Energy has approved publication of this final
determination.
List of Subjects in 10 CFR Part 430
Administrative practice and procedure, Confidential business
information, Energy conservation, Household appliances, Imports,
Intergovernmental relations, Reporting and recordkeeping requirements,
Small businesses.
Signing Authority
This document of the Department of Energy was signed on August 26,
2022, by, Dr. Geraldine L. Richmond, Under Secretary for Science and
Innovation, 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 August 26, 2022.
Treena V. Garrett,
Federal Register Liaison Officer, U.S. Department of Energy.
For the reasons set forth in the preamble, DOE amends part 430 of
chapter II, subchapter D, of title 10 of the Code of Federal
Regulations, to read as set forth below:
PART 430--ENERGY CONSERVATION PROGRAM FOR CONSUMER PRODUCTS
0
1. The authority citation for part 430 continues to read as follows:
Authority: 42 U.S.C. 6291-6309; 28 U.S.C. 2461 note.
[[Page 54346]]
0
2. Section 430.2 is amended by adding, in alphabetical order,
definitions of ``Decorative hearth product'', ``Miscellaneous gas
products'', and ``Outdoor heater'' to read as follows:
Sec. 430.2 Definitions.
* * * * *
Decorative hearth product means a gas-fired appliance that--
(1) Simulates a solid-fueled fireplace or presents a flame pattern;
(2) Includes products designed for indoor use, outdoor use, or
either indoor or outdoor use;
(3) Is not for use with a thermostat;
(4) For products designed for indoor use, is not designed to
provide space heating to the space in which it is installed; and
(5) For products designed for outdoor use, is not designed to
provide heat proximate to the unit.
* * * * *
Miscellaneous gas products mean decorative hearth products and
outdoor heaters.
* * * * *
Outdoor heater means a gas-fired appliance designed for use in
outdoor spaces only, and which is designed to provide heat proximate to
the unit.
* * * * *
[FR Doc. 2022-18856 Filed 9-2-22; 8:45 am]
BILLING CODE 6450-01-P