[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.
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    \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