[Federal Register Volume 87, Number 210 (Tuesday, November 1, 2022)]
[Proposed Rules]
[Pages 65687-65694]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-23626]
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DEPARTMENT OF ENERGY
10 CFR Part 430
[EERE-2021-BT-STD-0029]
RIN 1904-AE64
Energy Conservation Program: Energy Conservation Standards for
Consumer Furnace Fans
AGENCY: Office of Energy Efficiency and Renewable Energy, Department of
Energy.
ACTION: Notification of availability of preliminary technical support
document and request for comment.
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SUMMARY: The U.S. Department of Energy (``DOE'') announces the
availability of the preliminary analysis it has conducted for purposes
of evaluating the needed for amended energy conservation standards for
consumer furnace fans, which is set forth in the Department's
preliminary technical support document (``TSD'') for this rulemaking.
DOE will hold a public meeting via webinar to discuss and receive
comment on the preliminary analysis. The meeting will cover the
analytical framework, models, and tools used to evaluate potential
standards; the results of preliminary analyses performed by DOE; the
potential energy conservation standard levels derived from these
analyses (if DOE determines that proposed amendments are necessary);
and other relevant issues. In addition, DOE encourages written comments
on these subjects.
DATES:
Comments: Written comments and information will be accepted on or
before, January 3, 2023.
Meeting: DOE will hold a webinar on Monday, December 5th, 2022,
from 1:00 p.m. to 3:00 p.m. See section IV, ``Public Participation,''
for webinar registration information, participant instructions and
information about the capabilities available to webinar participants.
ADDRESSES: Interested persons are encouraged to submit comments using
the Federal eRulemaking Portal at www.regulations.gov, under docket
number EERE-2021-BT-STD-0029. Follow the instructions for submitting
comments. Alternatively, interested persons may submit comments,
identified by docket number EERE-2021-BT-STD-0029, by any of the
following methods:
(1) Email: [email protected]. Include the
docket number EERE-2021-BT-STD-0029 in the subject line of the message.
(2) Postal Mail: Appliance and Equipment Standards Program, U.S.
Department of Energy, Building Technologies Office, Mailstop EE-5B,
1000 Independence Avenue SW, Washington, DC 20585-0121. Telephone:
(202) 287-1445. If possible, please submit all items on a compact disc
(``CD''), in which case it is not necessary to include printed copies.
(3) Hand Delivery/Courier: Appliance and Equipment Standards
Program, U.S. Department of Energy, Building Technologies Office, 950
L'Enfant Plaza SW, 6th Floor, Washington, DC 20024. Telephone: (202)
287-1445. If possible, please submit all items on a CD, in which case
it is not necessary to include printed copies.
No telefacsimiles (``faxes'') will be accepted. For detailed
instructions on submitting comments and additional information on this
process, see section IV of this document.
To inform interested parties and to facilitate this rulemaking
process, DOE has prepared an agenda, a preliminary TSD, and briefing
materials, which are available on the DOE website at:
www.regulations.gov/docket/EERE-2021-BT-STD-0029.
Docket: The docket for this activity, which includes Federal
Register notices, comments, public meeting transcripts, and other
supporting documents/materials, is available for review at
www.regulations.gov. All documents in the docket are listed in the
www.regulations.gov index. However, some documents listed in the index,
such as those containing information that is exempt from public
disclosure, may not be publicly available.
The docket web page can be found at www.regulations.gov/docket/EERE-2021-BT-STD-0029. The docket web page contains instructions on how
to access all documents, including public comments in the docket. See
section IV.D of this document for information on how to submit comments
through www.regulations.gov.
FOR FURTHER INFORMATION CONTACT:
Ms. Catherine Rivest, U.S. Department of Energy, Office of Energy
Efficiency and Renewable Energy, Building Technologies, EE-5B, 1000
Independence Avenue SW, Washington, DC 20585-0121. Telephone: (202)
586-7335. 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].
For further information on how to submit a comment, review other
public comments and the docket, or participate in the public meeting,
contact the Appliance and Equipment Standards Program staff at (202)
287-1445 or by email: [email protected].
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Introduction
A. Authority
[[Page 65688]]
B. Rulemaking Process
C. Deviation From Appendix A
II. Background
A. Current Standards
B. Current Process
III. Summary of the Analyses Performed by DOE
A. Market and Technology Assessment
B. Screening Analysis
C. Engineering Analysis
D. Markups Analysis
E. Energy Use Analysis
F. Life-Cycle Cost and Payback Period Analyses
G. National Impact Analysis
IV. Public Participation
A. Participation in the Webinar
B. Procedure for Submitting Prepared General Statements for
Distribution
C. Conduct of the Webinar
D. Submission of Comments
V. Approval of the Office of the Secretary
I. Introduction
A. Authority
The Energy Policy and Conservation Act, as amended (``EPCA''),\1\
authorizes DOE to regulate the energy efficiency of a number of
consumer products and certain industrial equipment. (42 U.S.C. 6291-
6317) Title III, Part B \2\ of EPCA established the Energy Conservation
Program for Consumer Products Other Than Automobiles. These products
include consumer furnace fans, the subject of this document. (42 U.S.C.
6295(f)(4)(D))
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\1\ All references to EPCA in this document refer to the statute
as amended through the Energy Act of 2020, Public Law 116-260 (Dec.
27, 2020), which reflect the last statutory amendments that impact
Parts A and A-1 of EPCA.
\2\ For editorial reasons, upon codification in the U.S. Code,
Part B was redesignated Part A.
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EPCA further provides that, not later than 6 years after the
issuance of any final rule establishing or amending a standard, DOE
must publish either a notification of determination that standards for
the product do not need to be amended, or a notice of proposed
rulemaking (``NOPR'') including new proposed energy conservation
standards (proceeding to a final rule, as appropriate). (42 U.S.C.
6295(m)(1)) Not later than three years after issuance of a final
determination not to amend standards, DOE must publish either a notice
of determination that standards for the product do not need to be
amended, or a NOPR including new proposed energy conservation standards
(proceeding to a final rule, as appropriate). (42 U.S.C. 6295(m)(3)(B))
Under EPCA, any new or amended energy conservation standard must be
designed to achieve the maximum improvement in energy efficiency that
DOE determines is technologically feasible and economically justified.
(42 U.S.C. 6295(o)(2)(A)) Furthermore, the new or amended standard must
result in a significant conservation of energy. (42 U.S.C.
6295(o)(3)(B))
DOE is publishing this notice of availability of the preliminary
analysis to facilitate the collection data and information to inform
its decision consistent with its obligations under EPCA.
B. Rulemaking Process
DOE must follow specific statutory criteria for prescribing new or
amended standards for covered products, including consumer furnace
fans. As noted, EPCA requires that any new or amended energy
conservation standard prescribed by the Secretary of Energy
(``Secretary'') be designed to achieve the maximum improvement in
energy efficiency (or water efficiency for certain products specified
by EPCA) that is technologically feasible and economically justified.
(42 U.S.C. 6295(o)(2)(A)) Furthermore, DOE may not adopt any standard
that would not result in the significant conservation of energy. (42
U.S.C. 6295(o)(3))
The significance of energy savings offered by a new or amended
energy conservation standard cannot be determined without knowledge of
the specific circumstances surrounding a given rulemaking.\3\ For
example, the United States has now rejoined the Paris Agreement on
February 19, 2021. As part of that agreement, the United States has
committed to reducing greenhouse gas (``GHG'') emissions in order to
limit the rise in mean global temperature.\4\ As such, energy savings
that reduce GHG emission have taken on greater importance.
Additionally, for some covered products and equipment, most of their
energy consumption occurs during periods of peak energy demand. The
impacts of these products on the energy infrastructure can be more
pronounced than products with relatively constant demand. In evaluating
the significance of energy savings, DOE considers differences in
primary energy and full-fuel cycle (``FFC'') effects for different
covered products and equipment when determining whether energy savings
are significant. Primary energy and FFC effects include the energy
consumed in electricity production (depending on load shape), in
distribution and transmission, and in extracting, processing, and
transporting primary fuels (i.e., coal, natural gas, petroleum fuels),
and thus present a more complete picture of the impacts of energy
conservation standards.
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\3\ Procedures, Interpretations, and Policies for Consideration
in New or Revised Energy Conservation Standards and Test Procedures
for Consumer Products and Commercial/Industrial Equipment, 86 FR
70892, 70901 (Dec. 13, 2021).
\4\ See Executive Order 14008, 86 FR 7619 (Feb. 1, 2021)
(``Tackling the Climate Crisis at Home and Abroad'').
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Accordingly, DOE evaluates the significance of energy savings on a
case-by-case basis, taking into account the significance of cumulative
FFC national energy savings, the cumulative FFC emissions reductions,
and the need to confront the global climate crisis, among other factors
DOE has initially determined the energy savings for the candidate
standard levels evaluated in this preliminary analysis rulemaking are
``significant'' within the meaning of 42 U.S.C. 6295(o)(3)(B). To
determine whether a standard is economically justified, EPCA requires
that DOE determine whether the benefits of the standard exceed its
burdens by considering, to the greatest extent practicable, the
following seven factors:
(1) The economic impact of the standard on the manufacturers and
consumers of the products subject to the standard;
(2) The savings in operating costs throughout the estimated
average life of the covered products in the type (or class) compared
to any increase in the price, initial charges, or maintenance
expenses for the covered products that are likely to result from the
standard;
(3) The total projected amount of energy (or as applicable,
water) savings likely to result directly from the standard;
(4) Any lessening of the utility or the performance of the
products likely to result from the standard;
(5) The impact of any lessening of competition, as determined in
writing by the Attorney General, that is likely to result from the
standard;
(6) The need for national energy and water conservation; and
(7) Other factors the Secretary of Energy (Secretary) considers
relevant.
(42 U.S.C. 6295(o)(2)(B)(i)(I)-(VII))
DOE fulfills these and other applicable requirements by conducting
a series of analyses throughout the rulemaking process. Table I.1 shows
the individual analyses that are performed to satisfy each of the
requirements within EPCA.
[[Page 65689]]
Table I.1--EPCA Requirements and Corresponding DOE Analysis
------------------------------------------------------------------------
EPCA requirement Corresponding DOE analysis
------------------------------------------------------------------------
Significant Energy Savings................ Shipments Analysis.
National Impact
Analysis.
Energy Use
Analysis.
Technological Feasibility................. Market and
Technology Assessment.
Screening Analysis.
Engineering
Analysis.
Economic Justification:
1. Economic impact on manufacturers Manufacturer Impact
and consumers. Analysis.
Life-Cycle Cost and
Payback Period Analysis.
Life-Cycle Cost
Subgroup Analysis.
Shipments Analysis.
2. Lifetime operating cost savings Markups for Product
compared to increased cost for the Price Analysis.
product. Energy Use
Analysis.
Life-Cycle Cost and
Payback Period Analysis.
3. Total projected energy savings..... Shipments Analysis.
National Impact
Analysis.
4. Impact on utility or performance... Screening Analysis.
Engineering
Analysis.
5. Impact of any lessening of Manufacturer Impact
competition. Analysis.
6. Need for national energy and water Shipments Analysis.
conservation. National Impact
Analysis.
7. Other factors the Secretary Employment Impact
considers relevant. Analysis.
Utility Impact
Analysis.
Emissions Analysis.
Monetization of
Emission Reductions
Benefits.\5\
Regulatory Impact
Analysis.
------------------------------------------------------------------------
Further, EPCA establishes a rebuttable presumption that a standard
is economically justified if the Secretary finds that the additional
cost to the consumer of purchasing a product complying with an energy
conservation standard level will be less than three times the value of
the energy savings during the first year that the consumer will receive
as a result of the standard, as calculated under the applicable test
procedure. (42 U.S.C. 6295(o)(2)(B)(iii))
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\5\ On March 16, 2022, the Fifth Circuit Court of Appeals (No.
22-30087) granted the federal government's emergency motion for stay
pending appeal of the February 11, 2022, preliminary injunction
issued in Louisiana v. Biden, No. 21-cv-1074-JDC-KK (W.D. La.). As a
result of the Fifth Circuit's order, the preliminary injunction is
no longer in effect, pending resolution of the federal government's
appeal of that injunction or a further court order. Among other
things, the preliminary injunction enjoined the defendants in that
case from ``adopting, employing, treating as binding, or relying
upon'' the interim estimates of the social cost of greenhouse
gases--which were issued by the Interagency Working Group on the
Social Cost of Greenhouse Gases on February 26, 2021--to monetize
the benefits of reducing greenhouse gas emissions. In the absence of
further intervening court orders, DOE will revert to its approach
prior to the injunction and present monetized benefits where
appropriate and permissible by law.
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EPCA also contains what is known as an ``anti-backsliding''
provision, which prevents the Secretary from prescribing any amended
standard that either increases the maximum allowable energy use or
decreases the minimum required energy efficiency of a covered product.
(42 U.S.C. 6295(o)(1)) Also, the Secretary may not prescribe an amended
or new standard if interested persons have established by a
preponderance of the evidence that the standard is likely to result in
the unavailability in the United States in any covered product type (or
class) of performance characteristics (including reliability),
features, sizes, capacities, and volumes that are substantially the
same as those generally available in the United States. (42 U.S.C.
6295(o)(4))
Additionally, EPCA specifies requirements when promulgating an
energy conservation standard for a covered product that has two or more
subcategories. DOE must specify a different standard level for a type
or class of product that has the same function or intended use, if DOE
determines that products within such group: (A) consume a different
kind of energy from that consumed by other covered products within such
type (or class); or (B) have a capacity or other performance-related
feature which other products within such type (or class) do not have
and such feature justifies a higher or lower standard. (42 U.S.C.
6295(q)(1)) In determining whether a performance-related feature
justifies a different standard for a group of products, DOE must
consider such factors as the utility to the consumer of the feature and
other factors DOE deems appropriate. Id. Any rule prescribing such a
standard must include an explanation of the basis on which such higher
or lower level was established. (42 U.S.C. 6295(q)(2))
Finally, pursuant to the amendments contained in the Energy
Independence and Security Act of 2007 (``EISA 2007''), Public Law 110-
140, any final rule for new or amended energy conservation standards
promulgated after July 1, 2010, is required to address standby mode and
off mode energy use. (42 U.S.C. 6295(gg)(3)) Specifically, when DOE
adopts a standard for a covered product after that date, it must, if
justified by the criteria for adoption of standards under EPCA (42
U.S.C. 6295(o)), incorporate standby mode and off mode energy use into
a single standard, or, if that is not feasible, adopt a separate
standard for such energy use for that product. (42 U.S.C.
6295(gg)(3)(A)-(B)) However, because the electrical energy consumption
of consumer furnace fans in standby mode and off mode is already
accounted for in the DOE rulemakings for residential furnaces, and
residential central air conditioners and heat pumps, DOE did not
include standby mode and off mode energy use in the test procedure for
consumer furnace fans. 79 FR 500, 501.
Before proposing a standard, DOE typically seeks public input on
the analytical framework, models, and tools that DOE intends to use to
evaluate standards for the product at issue and the results of
preliminary analyses DOE performed for the product.
DOE is examining whether to amend the current standards pursuant to
its obligations under EPCA. This notification announces the
availability
[[Page 65690]]
of the preliminary TSD, which details the preliminary analyses and
summarizes the preliminary results of DOE's analyses. In addition, DOE
is announcing a public meeting to solicit feedback from interested
parties on its analytical framework, models, and preliminary results.
C. Deviation From Appendix A
In accordance with section 3(a) of 10 CFR part 430, subpart C,
appendix A (``appendix A''), ``Procedures, Interpretations, and
Policies for Consideration of New or Revised Energy Conservation
Standards and Test Procedures for Consumer Products and Certain
Commercial/Industrial Equipment,'' DOE notes that it is deviating from
the provision in appendix A regarding the pre-NOPR stages for an energy
conservation standards rulemaking. See 86 FR 70892 (Dec. 13, 2021).
Section 6(a)(2) of appendix A states that if the Department determines
it is appropriate to proceed with a rulemaking, the preliminary stages
of a rulemaking to issue or amend an energy conservation standard that
DOE will undertake will be a framework document and preliminary
analysis, or an advance notice of proposed rulemaking.
DOE is opting to deviate from this step by publishing a preliminary
analysis without a framework document. A framework document is intended
to introduce and summarize the various analyses DOE conducts during the
rulemaking process and requests initial feedback from interested
parties. As discussed in section II.B, on November 23, 2021, DOE
published an early assessment request for information (``RFI'') to
determine whether any new or amended standards may be warranted for
consumer furnaces fans. 86 FR 66465 (``November 2021 Early Assessment
Review RFI''). DOE requested comment in the November 2021 Early
Assessment Review RFI on a variety of issues to aid in the development
of its technical and economic analyses and included a 30-day comment
period. In the November 2021 Early Assessment Review RFI, DOE sought
data and information as to whether any new or amended rule would be
cost-effective, economically justified, technologically feasible, or
would result in a significant savings of energy. Id. DOE sought such
data and information to assist in its consideration of whether (and if
so, how) to amend the standards for consumer furnace fans. Id. Further,
DOE provided an overview of the analysis it would use to evaluate new
or amended energy conservation standards, including references to and
requests for comment on the analyses conducted as part of the most
recent energy conservation standards rulemakings. Id. As DOE is
intending to rely on substantively the same analytical methods as in
the most recent rulemaking, publication of a framework document would
be largely redundant with the published November 2021 Early Assessment
Review RFI. As such, DOE is not publishing a framework document.
Additionally, section 6(d)(2) of appendix A provides that the
length of the public comment period for pre-NOPR rulemaking documents
will vary depending upon the circumstances of the particular
rulemaking, but will not be less than 75 calendar days. For this
preliminary analysis, DOE has opted to provide a 60-day comment period.
As stated, the November 2021 Early Assessment Review RFI included a 30-
day comment period. Additionally, for this preliminary analysis, DOE
has relied on many of the same analytical assumptions and approaches as
used in the previous consumer furnace fans rulemaking. Therefore, for
this preliminary analysis, DOE has determined that a 60-day comment
period in conjunction with the prior 30-day comment period provides
sufficient time for interested parties to review the preliminary
analysis and provide input.
II. Background
A. Current Standards
In a final rule published on July 3, 2014 (``July 2014 Final
Rule''), DOE prescribed the current energy conservation standards for
consumer furnace fans manufactured on and after July 3, 2019. 79 FR
38130. These standards are set forth in DOE's regulations at 10 CFR
430.32(y) and are repeated in Table II.1.
Table II.1--Federal Energy Conservation Standards for Consumer Furnace
Fans
------------------------------------------------------------------------
Fan energy rating
(``FER'') (watts/1000
Furnace fan product class cubic feet per minute
(``cfm''))
------------------------------------------------------------------------
Non-Weatherized, Non-Condensing Gas (``NWG-NC'') FER = 0.044 * Qmax +
182.
Non-Weatherized, Condensing Gas (``NWG-C'')..... FER = 0.044 * Qmax +
195.
Weatherized, Non-Condensing Gas (``WG-NC'')..... FER = 0.044 * Qmax +
199.
Non-Weatherized, Non-Condensing Oil Furnace Fan FER = 0.071 * Qmax +
(``NWO-NC''). 382.
Non-Weatherized Electric Furnace/Modular Blower FER = 0.044 * Qmax +
Fan (``NWEF/NWMB''). 165.
Mobile Home Non-Weatherized, Non-Condensing Gas FER = 0.071 * Qmax +
Furnace Fan (``MH-NWG-NC''). 222.
Mobile Home Non-Weatherized, Condensing Gas FER = 0.071 * Qmax +
Furnace Fan (``MH-NWG-C''). 240.
Mobile Home Electric Furnace/Modular Blower Fan FER = 0.044 * Qmax +
(``MH-EF/MB''). 101.
Mobile Home Non-Weatherized Oil Furnace Fan Reserved.
(``MH-NWO'').
Mobile Home Weatherized Gas Furnace Fan (``MH- Reserved.
WG'').
------------------------------------------------------------------------
Qmax is the airflow, in cfm, at the maximum airflow-control setting
measured using the final DOE test procedure at 10 CFR part 430,
subpart B, appendix AA.
B. Current Process
On November 23, 2021, DOE published the November 2021 Early
Assessment Review RFI to initiate a review to determine whether any new
or amended standards would satisfy the relevant requirements of EPCA
for a new or amended energy conservation standard for consumer furnace
fans. 86 FR 66465. Specifically, through the published notice and
request for information, DOE sought data and information that could
enable the agency to determine whether DOE should propose a ``no new
standard'' determination because a more stringent standard: (1) would
not result in a significant savings of energy; (2) is not
technologically feasible; (3) is not economically justified; or (4) any
combination of foregoing. Id.
Comments received to date as part of the current process have
helped DOE identify and resolve issues related to the preliminary
analyses. Chapter 2 of the preliminary TSD summarizes and addresses the
comments received.
[[Page 65691]]
III. Summary of the Analyses Performed by DOE
For the products covered in this preliminary analysis, DOE
conducted in-depth technical analyses in the following areas: (1)
engineering; (2) markups to determine product price; (3) energy use;
(4) life-cycle cost (``LCC'') and payback period (``PBP''); and (5)
national impacts. The preliminary TSD that presents the methodology and
results of each of these analyses is available at www1.eere.energy.gov/buildings/appliance_standards/standards.aspx?productid=54.
DOE also conducted, and has included in the preliminary TSD,
several other analyses that support the major analyses or are
preliminary analyses that will be expanded if DOE determines that a
NOPR is warranted to propose new or amended energy conservation
standards. These analyses include: (1) the market and technology
assessment; (2) the screening analysis, which contributes to the
engineering analysis; and (3) the shipments analysis, which contributes
to the LCC and PBP analysis and the national impact analysis (``NIA'').
In addition to these analyses, DOE has begun preliminary work on the
manufacturer impact analysis and has identified the methods to be used
for the consumer subgroup analysis, the emissions analysis, the
employment impact analysis, the regulatory impact analysis, and the
utility impact analysis. DOE will expand on these analyses in the NOPR
should one be issued.
A. Market and Technology Assessment
DOE develops information in the market and technology assessment
that provides an overall picture of the market for the products
concerned, including general characteristics of the products, the
industry structure, manufacturers, market characteristics, and
technologies used in the products. This activity includes both
quantitative and qualitative assessments, based primarily on publicly
available information. The subjects addressed in the market and
technology assessment include: (1) a determination of the scope of the
rulemaking and product classes, (2) manufacturers and industry
structure, (3) existing efficiency programs, (4) shipments information,
(5) market and industry trends, and (6) technologies or design options
that could improve the energy efficiency of the product.
See chapter 3 of the preliminary TSD for further discussion of the
market and technology assessment.
B. Screening Analysis
DOE uses the following five screening criteria to determine which
technology options are suitable for further consideration in an energy
conservation standards rulemaking:
(1) Technological feasibility. Technologies that are not
incorporated in commercial products or in working prototypes will not
be considered further.
(2) Practicability to manufacture, install, and service. If it is
determined that mass production and reliable installation and servicing
of a technology in commercial products could not be achieved on the
scale necessary to serve the relevant market at the time of the
projected compliance date of the standard, then that technology will
not be considered further.
(3) Impacts on product utility or product availability. If it is
determined that a technology would have a significant adverse impact on
the utility of the product for significant subgroups of consumers or
would result in the unavailability of any covered product type with
performance characteristics (including reliability), features, sizes,
capacities, and volumes that are substantially the same as products
generally available in the United States at the time, it will not be
considered further.
(4) Adverse impacts on health or safety. If it is determined that a
technology would have significant adverse impacts on health or safety,
it will not be considered further.
(5) Unique-pathway proprietary technologies. If a design option
utilizes proprietary technology that represents a unique pathway to
achieving a given efficiency level, that technology will not be
considered further due to the potential for monopolistic concerns.
10 CFR part 430, subpart C, appendix A, sections 6(b)(3) and 7(b).
If DOE determines that a technology, or a combination of
technologies, fails to meet one or more of the listed five criteria, it
will be excluded from further consideration in the engineering
analysis.
See chapter 4 of the preliminary TSD for further discussion of the
screening analysis.
C. Engineering Analysis
The purpose of the engineering analysis is to establish the
relationship between the efficiency and cost of consumer furnace fans.
There are two elements to consider in the engineering analysis; the
selection of efficiency levels to analyze (i.e., the ``efficiency
analysis'') and the determination of product cost at each efficiency
level (i.e., the ``cost analysis''). In determining the performance of
higher-efficiency products, DOE considers technologies and design
option combinations not eliminated by the screening analysis. For each
product class, DOE estimates the manufacturer production cost (``MPC'')
for the baseline as well as higher efficiency levels. The output of the
engineering analysis is a set of cost-efficiency ``curves'' that are
used in downstream analyses (i.e., the LCC and PBP analyses and the
NIA).
In this preliminary analysis, DOE estimated the MPC associated with
each efficiency level to characterize the cost-efficiency relationship
of improving consumer furnace fan performance. The MPC estimates are
not for the entire heating, ventilation, and air-conditioning
(``HVAC'') product. Because consumer furnace fans are a component of
the HVAC product in which they are integrated, the MPC estimates
include costs only for the components of the HVAC product that impact
fan efficiency rating (``FER'').
For each product class, DOE analyzed a representative consumer
furnace fan, characterized by the associated furnace heating capacity
and maximum airflow capacity. DOE estimated costs based on either high-
volume or low-volume manufacturing, as appropriate, for each product
class to account for the increased purchasing power (and thus lower
costs) of high-volume manufacturers as compared to low-volume
manufacturers.
DOE converts the MPC to the manufacturer selling price (``MSP'') by
applying a manufacturer markup. The MSP is the price the manufacturer
charges its first customer, when selling into the product distribution
channels. The manufacturer markup accounts for manufacturer non-
production costs and profit margin. DOE developed the manufacturer
markup by examining publicly available financial information for
manufacturers of the covered product.
See chapter 5 of the preliminary TSD for additional detail on the
engineering analysis. See chapter 12 of the preliminary TSD for
additional detail on the manufacturer markup.
D. Markups Analysis
The markups analysis develops appropriate markups (e.g., retailer
markups, distributor markups, contractor markups) in the distribution
chain and sales taxes to convert MSP estimates derived in the
engineering analysis to consumer prices, which are then used in the LCC
and PBP analysis.
[[Page 65692]]
At each step in the distribution channel, companies mark up the price
of the product to cover business costs and profit margin.
DOE developed baseline and incremental markups for each actor in
the distribution chain for consumer furnace fans. Baseline markups are
applied to the price of products with baseline efficiency, while
incremental markups are applied to the difference in price between
baseline and higher-efficiency models (the incremental cost increase).
The incremental markup is typically less than the baseline markup and
is designed to maintain similar per-unit operating profit before and
after new or amended standards.\6\
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\6\ Because the projected price of standards-compliant products
is typically higher than the price of baseline products, using the
same markup for the incremental cost and the baseline cost would
result in higher per-unit operating profit. While such an outcome is
possible, DOE maintains that in markets that are reasonably
competitive it is unlikely that standards would lead to a
sustainable increase in profitability in the long run.
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Chapter 6 of the preliminary TSD provides details on DOE's
development of markups for consumer furnace fans.
E. Energy Use Analysis
The purpose of the energy use analysis is to determine the annual
energy consumption of consumer furnace fans at different efficiencies
in representative U.S. single-family homes, multi-family residences,
and commercial buildings, and to assess the energy savings potential of
increased consumer furnace fans efficiency. The energy use analysis
estimates the range of energy use of consumer furnace fans in the field
(i.e., as they are actually used by consumers). In addition, the energy
use analysis provides the basis for other analyses DOE performed,
particularly assessments of the energy savings and the savings in
consumer operating costs that could result from adoption of amended or
new energy conservation standards.
Chapter 7 of the preliminary TSD addresses the energy use analysis.
F. Life-Cycle Cost and Payback Period Analyses
The effect of new or amended energy conservation standards on
individual consumers usually involves a reduction in operating cost and
an increase in purchase cost. DOE used the following two metrics to
measure consumer impacts:
The LCC is the total consumer expense of an appliance or
product over the life of that product, consisting of total installed
cost (manufacturer selling price, distribution chain markups, sales
tax, and installation costs) plus operating costs (expenses for energy
use, maintenance, and repair). To compute the operating costs, DOE
discounts future operating costs to the time of purchase and sums them
over the lifetime of the product.
The PBP is the estimated amount of time (in years) it
takes consumers to recover the increased purchase cost (including
installation) of a more-efficient product through lower operating
costs. DOE calculates the PBP by dividing the change in purchase cost
at higher efficiency levels by the change in annual operating cost for
the year that amended or new standards are assumed to take effect.
Chapter 8 of the preliminary TSD addresses the LCC and PBP
analyses.
G. National Impact Analysis
The NIA estimates the national energy savings (``NES'') and the net
present value (``NPV'') of total consumer costs and savings expected to
result from new or amended standards at specific efficiency levels
(referred to as candidate standard levels).\7\ DOE calculates the NES
and NPV for the potential standard levels considered based on
projections of annual product shipments, along with the annual energy
consumption and total installed cost data from the energy use and LCC
analyses. For the present analysis, DOE projected the energy savings,
operating cost savings, product costs, and NPV of consumer benefits
over the lifetime of consumer furnace fans sold from 2030 through 2059.
---------------------------------------------------------------------------
\7\ The NIA accounts for impacts in the 50 states and U.S.
territories.
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DOE evaluates the impacts of new or amended standards by comparing
a case without such standards (``no-new-standards case'') with
standards case projections. The no-new-standards case characterizes
energy use and consumer costs for each product class in the absence of
new or amended energy conservation standards. For this projection, DOE
considers historical trends in efficiency and various forces that are
likely to affect the mix of efficiencies over time. DOE compares the
no-new-standards case with projections characterizing the market for
each product class if DOE adopted new or amended standards at specific
energy efficiency levels for that class. For each efficiency level, DOE
considers how a given standard would likely affect the market shares of
product with efficiencies greater than the standard.
For the NIA, DOE uses a spreadsheet model to calculate the energy
savings and the national consumer costs and savings from each
efficiency level. Interested parties can review DOE's analyses by
changing various input quantities within the spreadsheet. The NIA
spreadsheet model uses typical values (as opposed to probability
distributions) as inputs. Critical inputs to this analysis include
shipments projections, estimated product lifetimes, product installed
costs and operating costs, product annual energy consumption, the base
case efficiency projection, and discount rates
DOE estimates a combined total of 1.397 quadrillion Btu (``quads'')
of potential full-fuel-cycle (FFC) energy savings at the max- tech
efficiency levels for consumer furnace fans. Combined potential FFC
energy savings at Efficiency Level 1 for all product classes are
estimated to be 1.381 quads. (For several products classes, Efficiency
Level 1 in this preliminary analysis is also the max-tech level.)
Chapter 10 of the preliminary TSD addresses the NIA.
IV. Public Participation
DOE invites public engagement in this process through participation
in the webinar and submission of written comments, data, and
information. After the webinar and the closing of the comment period,
DOE will consider all timely-submitted comments and additional
information obtained from interested parties, as well as information
obtained through further analyses. Following such consideration, the
Department will publish either a determination that the energy
conservation standards for consumer furnace fans need not be amended or
a NOPR proposing to amend those standards. The NOPR, should one be
issued, would include proposed energy conservation standards for the
products covered by this rulemaking, and members of the public would be
given an opportunity to submit written and oral comments on the
proposed standards.
A. Participation in the Webinar
The time and date of the webinar meeting are listed in the DATES
section at the beginning of this document. Webinar registration
information, participant instructions, and information about the
capabilities available to webinar participants will be published on
DOE's website: www1.eere.energy.gov/buildings/appliance_standards/standards.aspx?productid=54. Participants are responsible for ensuring
their systems are compatible with the webinar software.
[[Page 65693]]
B. Procedure for Submitting Prepared General Statements for
Distribution
Any person who has an interest in the topics addressed in this
document, or who is representative of a group or class of persons that
has an interest in these issues, may request an opportunity to make an
oral presentation at the webinar. Such persons may submit to
[email protected]. Persons who wish to speak
should include with their request a computer file in WordPerfect,
Microsoft Word, PDF, or text (ASCII) file format that briefly describes
the nature of their interest in this rulemaking and the topics they
wish to discuss. Such persons should also provide a daytime telephone
number where they can be reached.
C. Conduct of the Webinar
DOE will designate a DOE official to preside at the webinar and may
also use a professional facilitator to aid discussion. The meeting will
not be a judicial or evidentiary-type public hearing, but DOE will
conduct it in accordance with section 336 of EPCA (42 U.S.C. 6306). A
court reporter will be present to record the proceedings and prepare a
transcript. DOE reserves the right to schedule the order of
presentations and to establish the procedures governing the conduct of
the webinar. There shall not be discussion of proprietary information,
costs or prices, market share, or other commercial matters regulated by
U.S. anti-trust laws. After the webinar and until the end of the
comment period, interested parties may submit further comments on the
proceedings and any aspect of the rulemaking.
The webinar will be conducted in an informal, conference style. DOE
will a general overview of the topics addressed in this rulemaking,
allow time for prepared general statements by participants, and
encourage all interested parties to share their views on issues
affecting this rulemaking. Each participant will be allowed to make a
general statement (within time limits determined by DOE), before the
discussion of specific topics. DOE will allow, as time permits, other
participants to comment briefly on any general statements.
At the end of all prepared statements on a topic, DOE will permit
participants to clarify their statements briefly and comment on
statements made by others. Participants should be prepared to answer
questions by DOE and by other participants concerning these issues. DOE
representatives may also ask questions of participants concerning other
matters relevant to this rulemaking. The official conducting the
webinar will accept additional comments or questions from those
attending, as time permits. The presiding official will announce any
further procedural rules or modification of the above procedures that
may be needed for the proper conduct of the webinar.
A transcript of the webinar will be included in the docket, which
can be viewed as described in the Docket section at the beginning of
this document. In addition, any person may buy a copy of the transcript
from the transcribing reporter.
D. Submission of Comments
DOE will accept comments, data, and information regarding this
proposed rule before or after the webinar, but no later than the date
provided in the DATES section at the beginning of this proposed rule.
Interested parties may submit comments, data, and other information
using any of the methods described in the ADDRESSES section at the
beginning of this document.
Submitting comments via www.regulations.gov. The
www.regulations.gov web page will require you to provide your name and
contact information. Your contact information will be viewable to DOE
Building Technologies staff only. Your contact information will not be
publicly viewable except for your first and last names, organization
name (if any), and submitter representative name (if any). If your
comment is not processed properly because of technical difficulties,
DOE will use this information to contact you. If DOE cannot read your
comment due to technical difficulties and cannot contact you for
clarification, DOE may not be able to consider your comment.
However, your contact information will be publicly viewable if you
include it in the comment itself or in any documents attached to your
comment. Any information that you do not want to be publicly viewable
should not be included in your comment, nor in any document attached to
your comment. Otherwise, persons viewing comments will see only first
and last names, organization names, correspondence containing comments,
and any documents submitted with the comments.
Do not submit to www.regulations.gov information for which
disclosure is restricted by statute, such as trade secrets and
commercial or financial information (hereinafter referred to as
Confidential Business Information (``CBI'')). Comments submitted
through www.regulations.gov cannot be claimed as CBI. Comments received
through the website will waive any CBI claims for the information
submitted. For information on submitting CBI, see the Confidential
Business Information section.
DOE processes submissions made through www.regulations.gov before
posting. Normally, comments will be posted within a few days of being
submitted. However, if large volumes of comments are being processed
simultaneously, your comment may not be viewable for up to several
weeks. Please keep the comment tracking number that www.regulations.gov
provides after you have successfully uploaded your comment.
Submitting comments via email, hand delivery/courier, or postal
mail. Comments and documents submitted via email, hand delivery/
courier, or postal mail also will be posted to www.regulations.gov. If
you do not want your personal contact information to be publicly
viewable, do not include it in your comment or any accompanying
documents. Instead, provide your contact information in a cover letter.
Include your first and last names, email address, telephone number, and
optional mailing address. The cover letter will not be publicly
viewable as long as it does not include any comments.
Include contact information each time you submit comments, data,
documents, and other information to DOE. If you submit via postal mail
or hand delivery/courier, please provide all items on a CD, if
feasible, in which case it is not necessary to submit printed copies.
No telefacsimiles (``faxes'') will be accepted.
Comments, data, and other information submitted to DOE
electronically should be provided in PDF (preferred), Microsoft Word or
Excel, WordPerfect, or text (ASCII) file format. Provide documents that
are not secured, that are written in English, and that are free of any
defects or viruses. Documents should not contain special characters or
any form of encryption and, if possible, they should carry the
electronic signature of the author.
Campaign form letters. Please submit campaign form letters by the
originating organization in batches of between 50 to 500 form letters
per PDF or as one form letter with a list of supporters' names compiled
into one or more PDFs. This reduces comment processing and posting
time.
Confidential Business Information. Pursuant to 10 CFR 1004.11, any
person submitting information that he or she believes to be
confidential and exempt
[[Page 65694]]
by law from public disclosure should submit via email two well-marked
copies: one copy of the document marked ``confidential'' including all
the information believed to be confidential, and one copy of the
document marked ``non-confidential'' with the information believed to
be confidential deleted. DOE will make its own determination about the
confidential status of the information and treat it according to its
determination.
It is DOE's policy that all comments may be included in the public
docket, without change and as received, including any personal
information provided in the comments (except information deemed to be
exempt from public disclosure).
V. Approval of the Office of the Secretary
The Secretary of Energy has approved publication of this
notification of the availability of the preliminary technical support
document and request for comment.
Signing Authority
This document of the Department of Energy was signed on October 25,
2022, by Francisco Alejandro Moreno, Acting Assistant Secretary for
Energy Efficiency and Renewable Energy, pursuant to delegated authority
from the Secretary of Energy. That document with the original signature
and date is maintained by DOE. For administrative purposes only, and in
compliance with requirements of the Office of the Federal Register, the
undersigned DOE Federal Register Liaison Officer has been authorized to
sign and submit the document in electronic format for publication, as
an official document of the Department of Energy. This administrative
process in no way alters the legal effect of this document upon
publication in the Federal Register.
Signed in Washington, DC, on October 26, 2022.
Treena V. Garrett,
Federal Register Liaison Officer, U.S. Department of Energy.
[FR Doc. 2022-23626 Filed 10-31-22; 8:45 am]
BILLING CODE 6450-01-P